The selection process under the new norms will involve pre-qualification and shortlisting of applicants and submission of financial offers.
The guidelines released by Planning Commission deputy chairman Montek Singh Ahluwalia was necessitated by considerable divergence in principles and practices followed in selection of bidders in different projects in the infrastructure sector.
To finalise rules for pre-qualification and shortlisting of applicants, the committee of infrastructure constituted an inter-ministerial group headed by the secretary, department of expenditure. The group held extensive consultations with stakeholders and experts and submitted its recommendations. These were then accepted by the committee.
The guidelines for pre-qualification of bidders for PPP projects have since been issued by the finance ministry. As PPP project involves large capital investments for providing essential infrastructure services to users on long term basis, the capacity of project sponsors assume considerable significance.
The Centre issued norms for
The manual, released by minister for shipping, road transport & highways T R Baalu, standardises contractual documents and processes.
It will form an integral part of a Model Concession Agreement and be binding on the company getting concessions. Adoption of this manual will reduce project preparation time, safeguard user interests, control costs and provide greater predictability to concessionaires in financing, construction and operation of PPP projects.
The Plan Panel has published an MCA for state highways. These MCAs follow the Design, Build, Finance and Operate approach that requires the concessionaire to bear the responsibility for detailed design. However, the accountability for providing safe and reliable roads ultimately rests with the government.
On The PPP Highway