This document discusses Community Private Partnerships (CPP), which involve communities and private entities collaborating on local infrastructure projects. CPPs operate on principles of local empowerment, participation, and accountability. They benefit communities by effectively targeting problems, putting resources under local control, and including vulnerable groups. CPPs are more efficient and reduce corruption compared to public-private partnerships by being demand-driven and involving communities in implementation. The document outlines the roles that local governments, NGOs, entrepreneurs, and various stakeholders play in CPPs. It also discusses potential project types, financing sources, and financial structures for CPP initiatives.

1. Community Private Partnership
COMMUNITY BASED
SUSTAINABLE ENTREPRENEURSHIP
DEVELOPMENT

2. What is CPP?
 CPP or Community Private Partnership
Community level with BOT solutions for urban
forestry, lake& pond restoration and land restoration.

3. Stakeholders of CPP
 Community
 Service Providers
 People affected by the current state of Infrastructure
 People gaining from the implementation of
development project
 NGOs
 Local Government

4. Principles of CPP
 CPP programs operate on the principles of
 local empowerment,
 participatory governance
 demand-responsiveness
 administrative autonomy
 greater downward accountability
 enhanced local capacity

5. Benefits of CPP
 The benefits of a CPP approach accrue mainly under
three areas
 Equity and Inclusiveness
 Efficiency
 Capacity Building at Community Level
 Availability of best technical expertise

6. Benefits of CPP
 Equity and Inclusiveness
 Effective targeting of right kind of problems
 Putting resources in direct control of people
 Inclusion of vulnerable and excluded groups like women, disabled, low
caste and minorities
 Allowing poverty reduction measures to go to scale
 Efficiency
 Demand responsive allocation of resources through local participation
 Better quality and maintenance of physical assets and common property
resources
 Reducing corruption and misuse of resources
 Lower costs and better cost-recovery
 Greater utilization and willingness to pay
 Capacity building at community level
• Availability of best technical expertise

7. When should one use a CPP Approac
 Using a CPP approach is warranted in cases of
 community does not yet have the necessary skills to be actively
involved in a business
 where the investment amount is large
 where government funding is in short supply
 Where local institutional support is insufficient
 where local institutions are absent or non-existent.

8. CPP Design Elements
 There are five defining characteristics of CPP projects:
 A focus on communities and/or community groups (rather than
individuals);
 A participatory planning process, including inclusive
consultations with members of the community;
 Resources channelled directly to the community, although
they may come through a sectoral ministry or local government
agency;
 The community itself is directly involved in project
implementation by creation of employment opportunities for
members of the community; and
 The community itself can see the progress of implementation.

9. Why CPP & not PPP?
 Drawbacks of PPP
 Corruption and misuse of resources
 High cost as the Private Developer keeps a high margin on its
investments
 Lack of transparency
 Local community’s problems are overlooked and are not
resolved in most of the cases
 No involvement of local community in implementation of the
projects
 No or negligible capacity building in the local community

10. Why CPP & not PPP?
 Advantages of CPP
 CPPs are driven by communities and more towards issues at
community level
 CPPs causes huge savings over PPPs
 Cost of service decreases with time
 Costs are significantly lower due to non-profit motive
 Utilization of existing resources E.g. land, water etc.
 CPP ensures higher accountability than PPP due to
involvement of communities

11. Role of Local Govt.
 Facilitating project execution activities
 Providing clearances. E.g. land, water, power etc.
 Providing guarantees for any contracts, debt for the purpose of
project development
 Providing capital subsidies to the community where
the projects are not viable through
 Local Area Development Funds
 Allocation of funds available with Block Development Officers
(BDOs)
 Allocation of funds available with Gram Panchayats

12. Role of NGOs
 Project Identification
 Coordination with the community
 Equity infusion in the projects from the grants available
to them
 Increasing awareness about CPP and its benefits to the
community
 Involvement during the implementation of the projects
 Getting the necessary funds allocated for projects from
the Local, Central Governments
 Getting the companies to fund these projects under their
CSR schemes.

13. Role of entrepreneur in CPP
13
 Advise feasibility of project
 Feasibility studies
 Project reports
 Liaison with stakeholders
 Local government and authorities
 Project investors
 Technical consultancy on design, technology
 provided by AFII together with its Patrons which include some of Europe's
largest Infra Engineering Companies, BOT Contractors and also some of the
large and mid-cap Indian Construction Companies
 Project Management services
 Capital, Coordination Support and Capabilities for development of Regional
and Local Infrastructure
 Financial Advisory
 Advising on suitable financial structures
 Advising on making projects fundable/bankable
 Assistance in financial closure
AFII Corporate Advisors Pte Ltd., 2013

14. Types of Projects that can be address
 Drinking Water Supply
 Community Roads
 Slum Redevelopment
 Estate Redevelopment
 Hospitals(waste disposal)
 Schools(forestry , plantation)
 Solid Waste Management
 Waste Water Treatment Project
 ECO Centres

15. Way to green future
AFII Corporate Advisors Pte Ltd., 2013

16. Financing CPP initiatives
18
 Typical costs in projects
 Sources for financing the projects
 Options for sustenance model
 Options for financial structure
AFII Corporate Advisors Pte Ltd., 2013

17. Sources of financing
 Private Entrepreneurs
 Community pooled
 Ranges from nil to a few million rupees
 Individual donors
 Ranges from hundred to few thousand rupees
 Infrequent donations
 Multilateral/Bilateral organizations
 Asian Development Bank, World Bank
 Non-sustained funding for short durations
AFII Corporate Advisors Pte Ltd., 2013

18. Sources of financing
 PSU organizations
 CSR fund of each organization at 2% of net profit
 Underutilized with Navratna (25%) and Maharatna (49%)
 Microfinance institutions
 Local Area development funds
 MP: Rs. 5 crore
 MLA: Rs. 3-4 crore
 BDO: Rs. 2-3 lakh
 Highly underutilized at 50%
AFII Corporate Advisors Pte Ltd., 2013

19. Possible sustenance models
 Revenue mechanism
 Annuity based
 Usage based
 Valorization
 Land resources. E.g, construction of plants, facilities
 Natural resources E.g. water
 Existing buildings E.g. schools, community centers
AFII Corporate Advisors Pte Ltd., 2013

20. Entrepreneurs: Emerging source of
finance
 Creates an efficient organization
 Ensures project execution and completion with time
and quality
 Structures a sustainable revenue model
 Innovative financial structures can be made
 Progress linked equity contribution from community
 Payment from community at the end of project
AFII Corporate Advisors Pte Ltd., 2013

21. Options for financial structures
 Technical Collaboration
 Joint Venture for Project Implementation
AFII Corporate Advisors Pte Ltd., 2013

22. Or
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