Implementation Details And Way Forward

• Each Department is to prepare a PPP Plan as a Plan outside Plan wherein the projects and sectors it envisages would be amenable to PPP structuring and the amount of additional private sector resources it would try to attract.

• Each Department has to set up a PPP Cell with a Nodal Officer to look after the PPP projects including co-ordination with State PPP Cell.

• Each Department has to identify, conceptualize probable PPP projects and prepare a preliminary report/ concept note wherein the need for the project, the benefits of doing under PPP mode, the responsibilities of the State and the concessionaires, outlines of the project and its structure, its main features, value for money test etc may be indicated. This would be done by the department along with the State PPP Cell.

• All projects should normally be tested for PPP amenability – strong reasons {Economic Rate of Return (ERR) if not Internal Rate of Return (IRR)} for fully state funded projects.

• The above shelf of probable PPP projects is to be placed before the ECI through the State PPP Cell for prioritization and taking approval to go ahead.

• After in-principle approval of ECI/ HLCA as the case may be on the basis of concept note, the Departments will have to get prepared an Initial Screening Report (ISR) of projects either in-house or through suitably hired consultants.

• After ascertaining the feasibility of the projects through the ISR, the same shall again be put up to ECI/ HLCA as the case may be through the State PPP Cell for approval and for the further modalities including preparation of Detailed Project Report (DPR), going for Design Build Finance Operate (DBFO), other structuring details, concessions required, details of land requirement of VGF, types of State support, value for money analysis, proper risk allocation etc.

• Proposal for VGF, if any, is to be processed through the State PPP Cell, at all stages.

• The Departments have to go for preparation of bid documents and also adoption & modification of Model Concession Agreement (MCA)s.

• The bid & concession documents and the outcome of bid process is to be got approved from ECI/ HLCA as the case may be before award of the project to the Developer.

•  Appropriate structure to manage, run and supervise the project both in its construction and Operation & Maintenance stage.

•  Provision for contingency of failure & abandoning should be made at the conceptualization/ Project report stage.