Infrastructure Business Management Insight

Introduction:

Infrastructure management of a country encompasses financing, construction, reconstruction, relocation, maintenance, up gradation / expansion, closure and decommissioning of various infrastructure projects. This is governed by infrastructure policy and regulatory framework, political and social environment and technology adoption. Many infrastructure financing companies and banks are providing funding for infrastructure development projects in India. The public partners in a PPP are government entities; whereas private partners can be local or international and include businesses or investors with technical or financial expertise relevant to the project.

Key Findings and Highlights

• Governments across the world are increasingly turning to the Build-Operate-Transfer process to accomplish the expensive and enormously challenging task of constructing, repairing, renewing and expanding infrastructure.
• The primary characteristics of PPP include the following: a contractual agreement defining the roles and responsibilities of the parties, sharing of risk by public and private sector and financial rewards to the private party proportionate to the achieved outputs
• The Government of India projects capacity addition of 100,000MW by 2012 for achieving its mission ""Power to All"". This has created a need to develop large capacity projects at the national level under the competitive bidding guidelines dispensation, leading to the emergence of Ultra Mega Power Projects (UMPPs).

Reasons to Buy

• Provides management analysis of infrastructure in India, covering power, industrial and transport sectors.
• Provides insight into the key concepts like general overview of infrastructure project finance, PPP and issues in infrastructure management and infrastructure project development and management.
• The report will be useful to all students enrolled in Infrastructure management courses, people connected with the Infrastructure industry and investors looking for broad understanding of Infrastructure management.
• Prepares students and budding management executives to face the industry confidently

• Executive Summary
• Highlights
• 1. Overview of Infrastructure Project Finance
  • 1.1. Infrastructure Management - Definition
  • 1.2. Infrastructure Projects
    • 1.2.1. Types of infrastructure projects
    • 1.2.2. Features of infrastructure projects
  • 1.3. Financing of Infrastructure Projects
    • 1.3.1. Infrastructure Financing Models
    • 1.3.2. Evolution of Private Participation in Infrastructure Sector
    • 1.3.3. Types of PubliPrivate Partnerships
      • 1.3.3.1. BuilOperatTransfer
      • 1.3.3.2. DesigBiBuild
      • 1.3.3.3. DesigBuild
      • 1.3.3.4. BuilOwOperate
      • 1.3.3.5. BuilOwOperatTransfer
      • 1.3.3.6. Other Models
    • 1.3.4. Disadvantages of Private Projects such as BOT
    • 1.3.5. Infrastructure Development and Finance Companies
      • 1.3.5.1. India Infrastructure Finance Company Limited
      • 1.3.5.2. Infrastructure Leasing & Financial Services Limited
      • 1.3.5.3. Infrastructure Development Finance Corporation Limited
      • 1.3.5.4. Power Finance Corporation Ltd
      • 1.3.5.5. State Bank of India
    • 1.3.6. Tariff Determination in Infrastructure Projects
      • 1.3.6.1. Methods of fixing tariffs
    • 1.3.7. Guidelines for funding infrastructure projects
      • 1.3.7.1. Asseliability management
      • 1.3.7.2. Takout financing/liquidity support
    • 1.3.8. Asset classification of projects
• 2. Public Private Partnerships in Infrastructure
  • 2.1. PubliPrivate Partnership - Definition
  • 2.2. Issues in the Implementation of PPP
    • 2.2.1. Technical Issues
    • 2.2.2. Legal, Regulatory, and Policy Frameworks
    • 2.2.3. Institutional Structures and Capacity
    • 2.2.4. Commercial, Financial, and Economic Issues
  • 2.3. Structuring a PPP: Available Options
    • 2.3.1. Service Contract
    • 2.3.2. Management Contracts
    • 2.3.3. Affermage or Lease Contracts
    • 2.3.4. Concessions
    • 2.3.5. Joint Ventures
  • 2.4. Basic Principles for Successful PPP Procurement
  • 2.5. Common Methods of Awarding PPP Contracts
    • 2.5.1. Competitive bidding - Characteristics
    • 2.5.2. Direct contracting - Characteristics
    • 2.5.3. Competitive Negotiations - Characteristics
  • 2.6. Approval Procedures for PPP Projects
  • 2.7. Risks in PPP
    • 2.7.1. Risks at various stages of a PPP project
    • 2.7.2. Classification of Risks
    • 2.7.3. Risk Matrix in a PPP Transaction
    • 2.7.4. Risk Mitigation Strategies for PPP
• 3. Infrastructure Project Development and Management
  • 3.1. Infrastructure Project Development
    • 3.1.1. Project Identification
    • 3.1.2. Project preparation
    • 3.1.3. Feasibility Phase
      • 3.1.3.1. Demand and supply or market module
      • 3.1.3.2. Technical or engineering module
      • 3.1.3.3. Human resources and administrative support module
      • 3.1.3.4. Financial module
      • 3.1.3.5. Economic module
      • 3.1.3.6. Social module
      • 3.1.3.7. Institutional module
      • 3.1.3.8. Environmental module
    • 3.1.4. Project approval and financing negotiations
    • 3.1.5. Investment Phase
      • 3.1.5.1. Detailed design
      • 3.1.5.2. Project implementation
    • 3.1.6. PosInvestment Phase
      • 3.1.6.1. Project Operation
      • 3.1.6.2. MiTerm and EPost Project Evaluation
  • 3.2. Infrastructure Project Management
    • 3.2.1. Transport Infrastructure Projects
    • 3.2.2. Power Infrastructure Projects
      • 3.2.2.2. Nuclear Power Projects
      • 3.2.2.3. Industrial Infrastructure Projects
  • List Of Figures
    • Figure 2.1: Generic PPP Project Sequence
    • Figure 2.2: Sources of Risk in a Typical PPP
    • Figure 2.3: Project Risk Phases
    • Figure 2.4: Risks associated with Infrastructure Projects
    • Figure 3.1: Components of the project cycle
    • Figure 3.2: Implementation Framework for DMIC
    • Figure 3.3: Sequence of Signing Agreements
    • Figure 3.4: Range of Private Sector Options
    • Figure 3.5: Project Management in NTPC
    • Figure 3.6: Project fully financed through government guarantee
  • List of Tables
    • Table 2.1: Summary of responsibilities and risks in different PPP options
    • Table 3.1: Special Economic Zone Activity and the Minimum Area of Land Prescribed by the SEZ Rules, 2006