On Poor Response, Govt Moves Away from PPP Model for Roads

The Hindu Business Line »

This article covers the recent decision by the National Highway Ministry of India to dump the public-private partnership model after zero bids were received under this model for 2012-2013. The decision also comes after many P3 projects awarded during 2011-2012 have not gotten off the ground. Examines several problems with the P3 process as it was implemented in India including: private sector quoting high premiums and then defaulting or backing out, a lack of interest from the private sector, inflexible concessionaire agreements, and deals that put the public on the hook in the case of a default.