PPP Concession Agreements for Rural Roads - An Analysis of the Questions of Development and Public Policy

The need to develop a new structure for rural roads under Public Private Partnerships is illustrated in this paper. Roads are the lifelines of any economy, and the rural economy is no exception. The fundamental premise of the design proposed in this paper is the “big push” theory, which states that even the simplest activity requires a network of other activities. The success of the structure and reasonableness of the cost determines the returns that are guaranteed to the concessionaire and the timeliness and the success of the project. In addition the concessionaire will be awarded commercial use of land around the tolling booths to supplement the returns. An innovative structure involving the building of warehouses and cold storage centers has been included for the development of the land around the tolling booths so that the rural areas are benefitted economically and have improved access to markets in the cities. The structure for the concession agreement is based on the current data on Public Private Partnerships in India. The paper also provides for the concession term to be extended until the total cost of the project is recovered as long as the conditions for the same are met. The paper concludes that if the concessions are to be in the interest of the users, it is important to ensure a robust design that is based on competitive bidding, mitigates the risks mentioned in the paper and includes a fair pricing scheme.

• Record URL:
  • https://proceedings-seoul2015.piarc.org/ressources/files/6/IP0602-Rao-E.pdf
• Availability:
  • Find a library where document is available. Order URL: https://www.piarc.org/en/order-library/25346-en-Proceedings%20of%20the%20XXVth%20World%20Road%20Congress%20-%20Seoul.htm
• Supplemental Notes:
  • Abstract reprinted with permission of the World Road Association – PIARC.
• Corporate Authors:

  World Road Association (PIARC)

  La Grande Arche, Paroi Nord, Niveau 5
  F-92055 La Defense Cedex,   France 
• Authors:
  • Rao, G
• Conference:
  • 25th World Road Congress
  • Location: Seoul , Korea, South
  • Date: 2015-11-3 to 2015-11-7
• Publication Date: 2015

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; References;
• Pagination: 11p
• Monograph Title: Proceedings of the 25th World Road Congress - Seoul 2015: Roads and Mobility - Creating New Value from Transport

Subject/Index Terms

• TRT Terms: Concessions; Development; Public policy; Public private partnerships; Rural highways
• Geographic Terms: India
• Subject Areas: Economics; Highways; Policy;

Filing Info

• Accession Number: 01670561
• Record Type: Publication
• ISBN: 9782840604235
• Report/Paper Numbers: 0602
• Files: TRIS
• Created Date: May 29 2018 4:02PM