The Committee on Revisiting and Revitalising…

The Committee on Revisiting and Revitalising the PPP Model of Infrastructure Development has submitted its report. The committee has suggested broad guidelines for the next generation of public-private partnership (PPP) contracts, while allocating and managing risks. As per the report, an entity should bear the risk that arises in the normal course of business; an assessment needs to be carried out regarding the relative ease and efficiency of risk management by the entity concerned; the cost effectiveness of managing the risk needs to be evaluated; any overriding considerations/stipulations of a particular entity need to be factored in, prior to implementing the risk management structure; the Department of Economic Affairs should deploy sophisticated modelling techniques to assess risk probabilities and provision for them; and there should be ex-ante provisioning for a renegotiation framework in the bid document itself.

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