The public transport in most of the cities are dependent on buses, auto rikshaws, cycle rikshaws which are not able to meet the demand, prone to accidents, delays & traffic jams. The cities need to create an efficient and affordable public transport services. The private sector may be invited through PPP to develop an integrated public transport system in a city. The private sector may charge an appropriate user fee (fare) from the users and earn revenue from commercial activities like advertising, renting & leasing of commercial spaces etc to cover his capital and recurring cost.

1. PPP for solving Public Transport
woes in India
For World Bank Group Online course on
Public-Private Partnerships: How can PPPs help deliver better services?
24.06.2015
By
Amit Kumar Jain

2. What is the infrastructure problem that the PPP is
trying to solve?

3. EXISTING TRANSPORT INFRASTRUCTURE IN
INDIA

5. Most of our Cities are stuck in Congestion
trap

7. Accidents
Traffic Jams
Frustrations
Urban Transport Problems
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Source: World Wide Web

8. Parking Difficulties
Noise
Pollution/Emissions
UrbanTransportProblems-2
8
Source: World Wide Web

10. Benefits of Public Transport
 Time savings – benefit to transit users
 Fuel savings from transport operations
 Air quality improvement (reduced emissions)
 Green house gas reduction
 Noise and vibration reduction
 Other environmental improvement (reduced solid and liquid
waste, reduced impact on flora and fauna)
10

11.  Public Transport system employment
 Commercial sector
 Social benefits
 City image
 Urban form
 Political
 Amenity benefits to passengers: comfort, prestige
BenefitsofPublicTransport-2
11

12. Integrated Public Transport

13. BASIC PREMISE
• The TRANSPORT SYSTEM of a city is the SUM of ALL MEANS of
TRANSPORT
• Different MODES should be COMPLEMENTARY, not competitors.

14. WHY INTEGRATION ?
• Rational
• Cost-effective
• Efficient Public Transport System=Integrated & Optimized Modes
• But also Improving the passenger’s experience in PT

15. WHY INTEGRATION?
• PAX desire “non stop-non transfer” journeys
• But the Transport Network is composed by different systems (buses, trains,
mototaxi, etc)
• Commuters has to transfer between modes, with a feeling of “time loss” and
“discomfort”.
• “minimise the need to transfer but maximise the opportunity to transfer”

16. HOW TO INTEGRATE?
• Integrated planning- low PHPDT by bus, high PHPDT by MRTS
• Seamless passenger interchange among different modes- station/stop planning
• Unified ticketing
• Adequate signages- information, pamphlets
• Complementary scheduling of services
• Fare concessions on using multiple modes

17. Integrated Public Transport
17
4000
2000
100
4000
10100
12000
22100
A
B
C
D
E
G
H
I
J
K
L

18. What services are to be provided and are these
services affordable?
• The cities need an effective, efficient & affordable public transport
services to meet the transportation demand.
• The cities need to create Integrated Mobility Plans with an objective
to provide adequate, affordable & low carbon public transport
system.
• An integrated public transport may be sum of Mass Rapid Transport
system (MRTS), conventional bus system, autorikshaw, bicycles,
pedestrians depending upon the demand along different corridors.

19. • However, transportation being capital incentive, the user fee to cover
complete costs may be prohibitively high. The public authority may
have to arrange Viability Gap Funding (VGF) to make the project
financially sustainable and attractive to the private sector.

20. What are the reasons that the private sector
would want to participate?
• The private sector may charge an appropriate user fee (fare) from the
users to cover his capital and recurring cost.
• The private sector may also be interested in generating revenue from
commercial activities like advertising, renting & leasing of commercial
spaces etc.

21. What are the reasons that the private sector
would want to participate?
• However, transportation being capital incentive, the user fee to cover
complete costs may be prohibitively high. The public authority may
have to arrange Viability Gap Funding (VGF) to make the project
financially sustainable and attractive to the private sector.
• If a private player is given right to develop all the modes of transport
in the city, he would select the most efficient one for a particular
corridor as per demand. Like for high demand corridors- the Mass
Rapid Transit System (MRTS) would be required, for low demand
corridors- autorikshaw based service would suffice the demand. The
private player would be more interested in operating all modes of
transport to avoid inter modal competition.

22. Risk Allocation

23. Risk Allocation
• As a principle, the risks should be allotted to one who can best
manage it. As such the risks may be allotted in following manner:
• The risks pertaining to availability of land for the project, traffic
regulations, change of law, change in tax structure, should rest with
the public authority.
• The risks pertaining to construction, procurement of rolling stock,
operation & maintenance of system, timely completion of the
construction and start of operations shall rest with the private player.

24. Risk Allocation
• The risks due to low traffic demand than estimated should be shared
by both public authority and private player.
• The risks due Force Majeure condition should be shared by both
public authority and private player.
•