Gujarat Infrastructure Development (GID) Act

To provide for a framework for private participation in financing, construction, maintenance and operation of infrastructure projects, Gujarat Infrastructure Development Act, 1999 popularly known as BOT Law was enacted in and later on amended as Gujarat Infrastructure Development (Amendment) Act, 2006. It is the first of kind institutional arrangement in India for Private Sector Participation. A concession period of maximum 35 years is allowed under this act. It provides three modes for private sector participation in Infrastructure Projects as follows: Competitive bidding (section-9 GID Act)

It is preferred as the most preferred mode for the public sector participation in infrastructure sector The cost/user charges/subsidy reduces through this mode and/or enhances revenues to Government It provides legal sanctity to the procedure of bidding Detailed procedure is laid down for technical and financial bid processing Even the spread and periodicity of tender bid notice is part of the Act It allows two-stage bidding process: technical and financial

Comparative bidding/ SWISS Challenge Route (section-10 GID Act)

Unsolicited proposals which does not require state subsidy are processed through this route Involves three stages:
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acceptance of the project by the Government and that it can be delivered by the developer in a time frame detailed negotiations to arrive at a consensus on the project parameters including the price competitive bidding on functional specifications of the project taken as fait accompli If better proposal (s) is received, the original proponent is given the opportunity to make his proposal competitive with that If he fails, the project goes to the selected bidder The project development cost can be reimbursed

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Direct negotiation (section-10A GID Act)

It involves projects having innovative or involves proprietary technology or franchise which is exclusively available with the person globally A project wherein competitive public bidding as provided in section 9 has failed to select a developer A project to provide social services to the people including community services and public utilities An infrastructure project which is an essential link for another bigger infrastructure project owned or operated by the same person

The Government of Gujarat through concerned departments carries out all preparatory work for the projects identified for private investment and provides the following facilities:

Cost for preparing Detailed Feasibility Study Land for Right of way and en-route facilities Relocation of utility services, resettlement and rehabilitation of the affected establishments. Environmental clearances Streamlined land acquisition procedures Competitive and transparent bidding process Extending a subsidy upto 40% (GoG-20% & GoI - 20%) on a case to case basis subject to the viability of the project Allow commercial development along the corridor to increase the revenue by a stream of projects like hotels, restaurants, warehousing, etc wherever deemed necessary.

KARNATAKA Time Line (INFRA PPP projects):

Evaluation Procedures and Timeframe 4.5 Applications received by tenth day of a month shall be considered and decided in the meeting of the SLSWA in the first week of the succeeding month. 4.6 The possible decisions are: unconditional funding approval, approval subject to certain conditions or no funding (the conditions may also include confirmation of project details before a commitment of funding, and an assessment of the affordability and value-formoney implications of recovering procurement costs as a success fee from the project). 4.7 An agreement including all funding conditions will be signed by the authorized signatory from PPP Cell and the Sponsoring Authority. The assistance from the KIPDF will be released to the Sponsoring Authority in accordance with the signed funding agreement. 4.8 The evaluation of the application would be based on the following: i. Availability of funds and the financial strengths of the Sponsoring Authority. ii. The sector Is the proposed PPP in an eligible sector? Is the proposal fully in compliance with the definition of PPP? Is the project reflected in the Sponsoring Authorities planning framework? Scheme and Guidelines - KIPDF Infrastructure Development Department (PPP Cell) iii. The project Has the project been properly defined and ring fenced? Has the Transaction Advisor been selected in accordance with the provisions of these Guidelines? Are the milestones for Transaction Advisor payment such that the project is at risk of not reaching technical closure? Are the Transaction Advisor costs proportional to project value? (Sector specific) What is the ability for the project to: a. Generate private sector capital investment? b. Generate system improvements in non-capital investment projects? c. What are the service delivery outcomes and improvements on the current outcomes expected from the project? d. What capacity and appetite is there in the private sector for it to participate in the project? e. What is the project procurement history and does this reflect adequate commitment to the project on the part of the Sponsoring Authority? iv. Funding Has a cash flow been submitted and verified by the PPP cell of the Sponsoring Authority? Has the project profile been established and is likely to be accepted by all the stakeholders? 4.9 In all cases, the decision to fund or not to fund the project will be at the discretion of the SLSWA.

4.10 The Sponsoring Authority shall be responsible for regular monitoring of the project development and compliance with the milestones as approved by the SLSWA Myanmar Infra Projects Time frame: Three-year timeframe for govt projects THE new government late last month pledged to complete infrastructure projects initiated by the State Peace and Development Council within three years. Speaking at the first meeting of the Special Projects Implementation Committee, held in Nay Pyi Taw on April 22, President U Thein Sein said the yet-to-be-completed projects include roads, railroads, bridges, airports and hydropower stations. Noting Myanmar lagged behind other countries in development, U Thein Sein said it was essential to complete the unfinished projects with added momentum so as to catch up with the neighbouring nations. The earlier these projects [are] completed, the earlier the people will enjoy benefits, he said. The first meeting of the Special Projects Implementation Committee was held in the Presidents office and attended by members of the government, including the two vicepresidents, the commander-in-chief and his deputy, union ministers and their deputies, and chief ministers of the regions and states. The president also emphasised the importance of cooperation and coordination between the national and regional governments. U Thein Sein urged the heads of state and region governments to focus on creating employment and developing the agriculture, livestock and fisheries sectors, while the national government would tackle large-scale projects, such as hydropower, strategic road and strategic rail works, as they take longer to complete and require more investment. Relevant ministers gave presentations on special projects being implemented by their ministries.