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Public Private Partnership in India: Hyderabad International Airport (Case Study)

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The key takeaways are about public-private partnerships (PPPs) for infrastructure projects in India, specifically focusing on the Hyderabad International Airport case study.

A public-private partnership is a contractual agreement between a public agency and a private sector entity where both parties share skills, assets, risks and rewards in delivering a service or facility for public use.

Some advantages of PPPs include attracting private investment, improving efficiency in service delivery, utilizing private sector management practices and financial/technical expertise.

PUBLIC PRIVATE

PARTNERSHIP IN INDIA
Hyderabad International Airport
(case study)
Project Name
HYDERABAD INTERNATIONAL AIRPORT (CASE STUDY)
MEANING
 A public-private partnership is a contractual agreement between a public
agency (federal, state or local) and a private sector entity.
 Through this agreement, skills and assets of each sector (public and private)
are shared in delivering a service or a facility for the use of the general public.
 Each party shares risks and rewards potential in the delivery of the service
and/or the facility.
 The public partners in a PPP are government entities, including Ministries,
departments, municipalities, or state-owned enterprises.
 The private partners could be local or international and may include businesses
or investors with technical or financial expertise relevant to the project.
 PPP broadly refers to long term, contractual partnerships between public and
private sector agencies, specially targeted towards financing, designing,
implementing, and operating infrastructure facilities services that were
traditionally provided by the public sector.
PPPAPPROACH
 Goal: Attract private investments for infrastructure projects.
 Need: Lack of Budgetary Resources
Need to improve efficiency in service delivery.
 Private Sector contribution for:
Financial investments
Best Management practices
Efficiency in service delivery
Efficient use of capital resources
 Public Sector contribution limited to:
Providing institutional commitment to project
Project Development & Selection of
Developer
Viability gap funding (VGF), if any
PREFERENCE OF PPP MODEL ININDIA

 pre-liberalisation
ADVANTAGES
ADVANTAGES
ADVANTAGES
CHALLENGES OFPPP
CHALLENGES OFPPP
CHALLENGES OFPPP
SOME EXAMPLES OFPPP PROJECT
 Project Golden Ray
PPP between the Government of Rajasthan and MIL which aims at
improving economic self-sufficiency of tribal maize farmers by
enhancing maize yields and incomes in five districts; Banswara,
Dungarpur, Udaipur, Pratapgarh and Sirohi.
 e-Choupal,
(run by ITC, a private sector entity) shows how mutual cooperation
between ITC, rural entrepreneurs, state agricultural universities and
the Indian government's extension machinery has served to bolster
the farmer's expertise and day-to-day awareness of what needs to
be done to cope with myriad agricultural needs.
STATE : ANDHRA
PRADESH
Location : Shamshabad in RangaReddy District
of Andhra Pradesh
About 20 km south of the present Hyderabad airport at Begumpet

Type of PPP : BOOT (build , own , operate , transfer )


Type of Nodal Department : CENTRE
Contracting Authority : Ministry ofCivil Aviation, Government of
India
Contract Period :30 yrs.
IT’S A GREEN FIELDPROJECT
Its constructed on unused land where there is no need to re model
or demolish and existing structure ..
PARTNERS INTHISPROJECT
 GMR group
(63%)

 Malasiya airports holding s berhad ( 11%


MAHB)

 Government of andhra Pradesh


13%

 Airport Authority of india(AAI)


13%
FIN ANCE
 The cost of the project is INR 24.7 billion (US$560 million). The airport
is being built on an area of 5,400 acres (2,200 ha) Largest in terms
of size. It was designed by the UK engineering design firm Arup,
which designed Dubai Terminal 3 and Beijing Terminal3.
EFFICIENCYOF RESOURCEUSE

 Built on the waste piece of land


 All the facilites required have been taken care of in minimum
utilization of space
 Link road construction fromcity
 Fully ready by dead line-efficient use if time
C ONTRACTORS

The main EPC contractors were Larsen & Toubro for airside and
landside works, and China State Construction & Engineering
(Hong Kong) for the construction of the passenger terminal
building and the ATC Tower. Menzies Aviation Plc was chosen for
the development and operation of cargo facilities. The in-flight
catering contract was awarded to LSG Sky Chef and Sky
Gourmet
THANK YOU

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