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Sector: State Highway  |  Module 1: PPP Background

PPP supporting environment

Political support for the project

Other factors being equal, jurisdictions where there has been a lack of political support for PPPs have had less success with PPP implementation. For example, among Indian States there has been a higher rate of success with PPPs in those with strong government commitment to the programmes, even when there is a similarity among States in their institutional approaches to project development (for example, where a central project development agency had been created to support sponsoring agencies).

Often, a project will have a greater chance of being realised as a PPP if it is supported and promoted by a strong political ‘champion’. A political champion is someone at a sufficiently high political level who is committed to making the PPP happen.

Public Support for PPPs, particularly in affected communities

It will be helpful if there is understanding and acceptance of the PPP concept among the wider public. It is important that there is support for specific projects in the affected communities.

Infrastructure projects can often have a large impact on the communities in the area or those affected by it and people are often understandably concerned by related change or uncertainty. There may be are fears about private participation, misinformation about the project, or the project may simply not be well understood. In this case the Project Sponsor needs to be aware of the need to make the case for the PPP in the public domain.

Three strategies that will increase public acceptance and buy-in to PPPs are

  • Carrying out the PPP process in a transparent manner. A best-practice PPP should include a transparent and competitive bidding process.
  • Making information readily available to the public, and
  • Involving the public in the consultation process.

In some cases the coordinating agency, such as the PPP Cell, might be involved with arrangements for consultation, information sharing and public relations campaigns.

The interests of affected communities can be taken into account as part of social and environmental impact assessments and management plans, which are often required for infrastructure projects. Social and Environmental assessments are discussed further in Module 2 sections in Phase 2 and in Guidance on specific Topics.

The regulatory and legal framework should also promote and protect the wider public interest, including users of infrastructure services.

 

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