1.4 This report is prepared at the request of the Department of Economic Affairs (DEA), which asked the World Bank for recommendations on how capacities for conceptualizing, structuring and managing PPPs could be further developed in India. Of particular focus is the role of the center in developing these capacities. Our review covers both organizational and individual capacities. The skills of the individuals working on PPPs are critical. However, organizational capacity - the policy and legal frameworks, institutions involved and the processes developed - are as, if not more, important. While the focus is on the capacities required of the governments we also look at the need to develop capacities in the private sector and other stakeholders
1.5 Not all forms of private participation in infrastructure should be considered PPPs. Though there is perhaps no standard definition of what a PPP is, they are generally regarded to be contracts for services traditionally provided by the public sector that combine investment with service provision and see significant risks being borne by the private sector. For the purposes of this report, we have focused on projects where private investment has been made, and where the government is either the purchaser of services under the project, or where it provides a financial contribution through direct investment or through risk bearing.
1.6 The main sectors of focus are transportation (ports, airports, roads, and rail), water and sanitation and other urban infrastructure (solid waste management, light rail, bus terminals). This represents the present areas of focus of many state governments in India. In consultation with DEA, it was decided to exclude the power sector from the analysis, given the complex issues involved in that sector and the range of other efforts both within the Bank Group and beyond focused specifically on power. We have also excluded many sectors considered infrastructure by state governments in India, including tourism infrastructure, housing, and convention centers, but do provide some coverage of other basic services such as the social sectors (education and health) and e-governance.
1.7 There are several themes related to PPPs that are not covered. We do not look in detail at the successes and failures to date in individual PPPs. Although international experience shows there are significant gains from well-designed PPPs, the report does not advocate the use of PPPs in general nor particular approaches to structuring PPP transactions.