The key parties to a PPP arrangement are the public entity (Government) and the private partner. In addition to the public entity and the private partner, there are several other stakeholders who are associated with PPP projects, a few of which are described below.
1. Public entity - means all Governments Departments & Directorates, Government sponsored boards, societies, Municipal or Local Bodies, Panchayats, Government sponsored education, research and knowledge management institutions, Public Sector Undertakings, Government owned companies, statutory authority and other entities, which are under the administrative control of the State Government.
2. Private partner - includes any entity other than the Public entity.
3. Concessionaire - refers to the private partner awarded the tender for the implementation of the PPP project.
4. Special Purpose Vehicle (SPV) - is simply an entity created to act as the legal manifestation of a project consortium, with no historical financial or operating record which Government can assess. An SPV is a legal entity with no activity other than those connected with its borrowing. Typically, a private partner forms a special company called a "Special Purpose Vehicle" (SPV) which contracts with Government. The SPV to develop, build, maintain and operate the asset for the contracted period. In cases where the Government has invested in the project, it is typically (but not always) allotted an equity share in the SPV. The consortium is usually made up of a Developer, Operator and bank lender(s). It is the SPV that signs the contract with the Government and with subcontractors to build the facility and then maintain it.
5. Transaction Advisors - are consultants hired through a transparent system of procurement by the sponsoring authorities to assist them in designing the project and/or providing technical, financial and legal input for the project design, and providing advice for the management of the process of procuring the private sector partner for the PPP project
6. Lead Bank/ Lender - is the financial institution (FI) that is funding the infrastructure project by providing debt to an extent not less than 25 percent (twenty five percent) of the total project debt and designated as such by an inter-institutional group or consortium of financial institution.
7. Lead Financial Institution - means the FI that is funding the PPP project, and in case there is a consortium of FIs, the FI designated as such by the consortium.
8. Independent Engineer - is a consultant appointed for supervision and monitoring quality of the project (different from TA). Usually, Independent Consultant is appointed after the project has been awarded and the Concession Agreement has been signed. The Independent Consultant ensures that the project work goes as per schedule and as per the quality criteria specified in the agreement.
9. Users - End users of the infrastructure created or in other terms project beneficiaries.
Each stakeholder plays a significant role in the success of a PPP project during the PPP project lifecycle. It is necessary to consider the interests of all stakeholders while structuring any project for development under PPP framework.