INTRODUCTION

PPP projects are characterised with involvement of stakeholders with diverse perspectives for the involvement in the infrastructure development. A typical PPP projects which is procured using BOT model will involve the following key stakeholders:

• Government agency (or known as granting authority)
• Concessionaire
• Lenders

The above-mentioned stakeholders have diverse perspectives for their participation in PPP projects.

GRANTING AUTHORITY'S PERSPECTIVE

In PPP projects such as BOT, governments (also known as granting authority) grant the concession to private sector to design, build, finance, and operate the infrastructure projects. Even after transferring the rights to develop and operate the infrastructure projects, the granting authority still need to play a proactive role in the development of infrastructure to ensure that the project serve public interest goal and achieve the economic and social objectives. Government invest in infrastructure projects as it encourages efficiency and growth, which in turn create wealth that, if spread equitably, benefits all sections of the society. The governments expect the same spill-over effects even in case of infrastructure projects procured through PPP route. In addition, the granting authority also keep in mind that the public interest goals of social equity, inclusiveness, accessibility, transparency and accountability are not given lesser importance than the commercial criteria. Improvement in the efficiency of the basic services and increasing accessibility to citizens, especially those who are economically and socially disadvantaged are amongst the major objectives the granting authority should take into account while structuring PPP projects.

One of the main economic objectives of the government for private sector participation is to ensure that PPP is able to provide improved and reliable service to the consumers at affordable rates. In order to achieve this economic goal, government ensure that the money is spent economically, efficiently, and effectively and value for money is achieved. Value for money, defined as the effective use of public funds on a capital project, can come from private sector innovation and skills in asset design, construction techniques and operational practices, and also from transferring key risks to private sector entities for them to manage.

The granting authority, who used to be creator of the infrastructure facilities, also need to play the role of providing the enabling environment for private sector to participate in infrastructure development. Appropriate legal, regulatory, and institutional frameworks are provided by the government to make the sector attractive for private sector participation and protect the private sector business interests; and at the same the involvement of private sector is regulated so that various social, economic, and environmental objectives are fulfilled. Government undertakes these reforms with the focus on bringing in transparency in the procurement process and enhance the acceptability of the projects to the public.