Presentation at Asian Highways Investment Forum Bangkok, 8-9, October 2013 United Nations Economic & Social Commission For Asia & The Pacific

Transcription

1 Presentation at Asian Highways Investment Forum Bangkok, 8-9, October 2013 United Nations Economic & Social Commission For Asia & The Pacific Investment Opportunities in Asian Highways/Highways Projects India By Atul Kumar Chief General Manager, National Highways Authority of India

2 National Highways Development Program(NHDP) National Highways Development Program (NHDP) is an integrated program to develop the national highway system of India through upgradation and strengthening of an arterial network consisting of 82,891 kms through various phases. 2

3 Phase-I: National Highways Development Project (NHDP) Mainly the Golden Quadrilateral (GQ) and parts of NS-EW Corridor and other projects- Approved in December Phase-II: North South and East West Corridors Approved in December Phase-III: Connection of State Capitals and important places to GQ and Corridors Approved during the period March 2005 to April Phase-IV: Improvement of National Highways having single/ intermediate lane width to 2-lane with paved shoulders Implementation of 5000 km approved in July 2008 and balance approved in Feb Phase-V: Six laning of 6500 km of GQ and high density corridors approved in Oct Phase-VI: 1000 km of Expressways Approved in Nov Phase-VII: Bypasses, Ring Roads, Flyovers Approved in Dec

4 Sl No. NHDP Component Overall Status of NHDP Total length (km) Completed 4/6 lane (km) * Stand alone projects ^ Out of this, km is assigned to NHAI Under Implementation Length (Km.) No of Projects Balance for award of civil works (km) 1 NHDP Phase I Nil 2 NHDP Phase II NHDP Phase III NHDP Phase IV 20000^ NHDP Phase V NHDP Phase VI 1000 Nil Nil NHDP Phase VII 700* Misc Projects SARDP-NE Total

5 Indian Road Network Total Length 4.3 Million km Length (km) National Highways 82,891 Expressways 200 State Highways 1,31,899 Major District Roads 4,67,763 Rural Roads 26,50,000 Roads carry 85 % of passenger & 70 % of freight traffic National Highways constitute only 2% of length, but carry 40% of the traffic on Indian Roads. NHAI has completed 21,165 km and is presently developing another 12,348 km of NHs. All seven phases of NHDP will cover 54,478 km and Non NHDP will cover 1,050 km. NHDP-Worlds largest PPP road development program 5

6 Mandate of NHAI Develop, maintain and manage National Highways vested in it by the Government. Collect fees on National Highways, regulate and control the plying of vehicles on National Highways for its proper management. Develop and provide consultancy and construction services in India and abroad and carry on research activities in relation to the development, maintenance and management of Highways or any other facilities thereat. Advise the Central Government on matters relating to highways. Assist on such terms and conditions as may be mutually agreed upon, any State Government in the formulation and implementation of schemes for highway development. 6

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9 Mode of award of projects Initially, projects under NHDP were awarded as item rate cash contracts, however, going forward, Public Private Partnerships (PPP) are the main mode of delivery for future phases of NHDP. While there are a number of forms of PPP, the common forms that are popular in India and have been used for development of National Highways are: Build, Operate and Transfer (Toll) Model on DBFOT basis Build, Operate and Transfer (Annuity) Mode on DBFOT basis Operations, Maintenance and Transfer (OMT) concession Modified turnkey EPC mode 9

10 Factors Driving PPP In Highways Strong political commitment as reflected in the announcements of the political establishment. Better co-operation from State Governments. SSA s. Nodal Officers appointment. A programmatic approach that galvanized the enthusiasm of both the public and private sector players around a substantive investment opportunity A clear focus on cost recovery based on collection of direct and proxy user charges, respectively through tolling and dedicating a portion of revenue streams from the levy of cess on fuel, ring-fenced into a non-lapsable road fund 10

11 Factors Driving PPP In Highways Contd.. A dedicated institution National Highways Authority of India with a clear mandate for implementing the program backed by substantial delegation of financial investment and administration powers, Special drive for land acquisition. 150 Special Land Acquisition Units (SLAV) being set up. Decentralisation. A consistent framework for encouraging private participation through a combination of measures, e.g., viability gap support, indexed toll rates, model concession agreement, tax concessions, liberal limits for External Commercial Borrowing and foreign equity participation 11

12 Encouraging Investments in Roads 100 % FDI allowed in road sector Clear Institutional Systems for projects clearance Government acquires land, facilitates utility shifting, environmental/forest/wildlife clearances Easy Import of construction equipment 100% tax exemption in any consecutive 10 years out of 20 years operation 12

13 Opportunities for Foreign Companies New Road Projects Innovations in Design, Materials and Technology Operations and Management, Maintenance systems, Safety Audit/Management Electronic Toll Collection (ETC) systems and Implementation Green/sustainable Highways Greenfield Expressways 13

14 THANK YOU!