PPP Mode Projects in Slow mode

PPP is slow coach in current projects

The work status of the upcoming 20,000 kms road stretch is yet to commence.

The central government has rejected three proposals under VGF or road viability gap funding of PPP project. This has caused concerns for the authorities. Though PWD officials will submit new proposals for the same. In addition, a meeting is to take place on this matter between central and state authorities. VGF gets 20% support from central government and another 20% from state government and rest comes from investors. If any financial gap is created in this set up then the investor gets benefit of certain circumstances and monetary help from state government. PPP cell in PWD department for road development works was formed in September 2014. Earlier this bill was presented in parliament on 1^st August 2014. However, the governor signed and gave it a green flag on May 2015.

If the circumstances remain same then only 20% work would be accomplished in the next four years.

The work order, criteria for selection for work etc has stretched to a year in the PPP project and the actual work has not yet started. If the present circumstances do not alter then not even 20% of work would be completed in stipulated time.

Anticipated work/Actual work done- 

1. 20,000 kms of road is to be completed.
2. PWD divided the work in packages. In the first phase of 129 packages, 8910 kms of work is anticipated.
3. Out of 129, only eight packages have come under VGF, rest is under annuity. (Annuity - when investor is granted financial support and then it is taken back in form of EMI’s from the investor.)
4. Out of this also central government dismissed 3 phases of VGF, as they were not according to central government standards. 
5. This resulted in no work commenced on any road.

The workflow rate is ok and the results will be soon visible according to PPP’s SE Mr. Shivlahri Sharma.

According to Mr. Sharma, the workflow is going as anticipated and soon the results will be visible. All the paperwork has been completed. Now the roadwork will be seen in full progress. Many challenges are also being faced like dismissal of three projects by central government. New agendas will be formed in the next meeting.