Smart Republic - Multi Partner Platform for Collaborative Development of Smart Cities and Smart Villages. Smart Republic 2018 is envisaged as a Multi Partner global forum to deliberate on the collaboration framework between government and multiple agencies like the World Bank, UN Habitat, UN Global Compact, Asian Development Bank, Industry and academia for achieving shared goal of making India a Smart Republic by 2022. Smart republic forum will focus on innovative ICT and New Media platforms and deployment of best practices to catalyse effective, coordinated and results-based implementation of 100 Smart Cities Program, AMRUT, HRIDAY and RURBAN missions to achieve the Sustainable Development Goals (SDGs).

1. CENTRE OF EXCELLENCE FOR
GOVERNANCE, ETHICS AND
TRANSPARENCY (CEGET)
Promoting pragmatic approaches around UNGC Principle 10 and SDG 11
GLOBAL COMPACT NETWORK INDIA (GCNI)

2. About Us:
• The United Nations Global Compact (UNGC) is the largest voluntary corporate citizenship
initiative in the world offering a unique platform to engage companies in responsible business
behaviour through the Ten Principles focusing on human rights, labour standards, the
environment and anti-corruption. Global Compact Network India (GCN) India
http://globalcompact.in/ formed in 2000 and registered as non-profit society in November 2003
functions as the Indian Local Network of the UNGC. By incorporating the Global Compact
principles into strategies, policies and procedures, and establishing a culture of integrity, GCNI
encourages companies to uphold their basic responsibilities to people and planet. At present, the
India network ranks among the top 3, out of the 102 local networks in the world.
GCNI established the Centre of Excellence for Governance, Ethics and Transparency (CEGET)
(http://ceget.in/) in 2015, with the overall objective of developing a premier knowledge repository
that conducts innovative action research and training, provides a platform for dialogue and
communication and facilitates systematic policy initiatives for strengthening transparency and
ethics in business. The goal of CEGET is to bring in diverse stakeholders on a common platform to
deliberate upon challenges, exchange best practices, and make policy recommendations to promote
responsible business standards, across various sectors. CEGET has aligned its mandate around SDG
11 and committed to the agenda of Urban transformation.

3. Encompassing SDG 11 in India: Key Commitments
Some major activities of CEGET in SDG 11 and Smart City initiatives:
Framework for Governance of Smart Cities
• Developed 10 Pillar Framework of Governance of Smart Cities
• The framework was piloted and implemented in Pune Smart City over 12 months
• U.N. University (Portugal) intends to convert the Framework into a training module
Public Private Partnerships (PPP)
• Developed PPP frameworks for Infrastructure and IT sector
• Developed an accounting model for Grantor-Concessionaire entities
• Promoted PPP guidelines and tools in the Smart City project implementation (Pune)
Risk Assessment
• Conducted Risk Assessment studies with focus on Infrastructure sector
• Developed toolkits for assessing and mitigating risks of doing business in India – for businesses as well as government
• Held Focused Group Discussions (FGDs) with stakeholders in Tamil Nadu and Karnataka
Compliance and Smart Governance
Developed IT-enabled comprehensive compliance management solution for smart city with support from a KP
The tool ensures statutory compliances to all laws applicable to the Special Purpose Vehicles (SPVs)

4. Framework for Governance of Smart Cities: The 10 pillars
Establish definition of Smart City
with all Services, Solutions and
Products
Develop Smart City Components,
Master Plan and Roll out plan
Align with Existing Guidelines and
Best Practices
Define and develop sustainable
Business/Financial Models/Clarity
on funding options and plans
Define and Establish Decision
making structures, Responsibility
matrix and Accountability with SPV
framework
Enable and Ensure extensive
industry participation in smart
cities with clear deliverables and
milestones
Establish clear monitoring and
evaluation system - Framework and
parameters against timelines and
deliverables
Build Capacity of the SPV Officials
and Use Project Management
Consultant for support
Encourage participation and
innovation by local
industry/Encourage
entrepreneurship
Establish Procurement policies and
guidelines, Define Procurement
Process and Effective compliance
models

5. POC: Various Elements and Facets
• This Proof of Concept has emerged from a grounded process of ten months and its pilot
testing for another twelve months.
• Every pillar of the Governance framework of the Smart Cities is expounded into four
heads – Key Elements, Performance Indicators, Targeted Outcomes and Challenges.
• This framework will benefit city, state and central governments as well as businesses
participating in Smart Cities projects. This framework will ensure governance and
transparency at every stage of smart city projects which in turn encourage more national
and international businesses to invest and bid for projects.
• The Governance Framework will eventually benefit - Citizens, Government Entities and
Business Stakeholders and instill a feeling of inclusiveness, transparency and an
involvement in the Decision – making process.
• A meticulous plan has been set in a definitive timeline to accomplish the implementation
of POC. POC will be monitored and evaluated every quarter & appropriate decision will
be taken for course correction and to overcome various challenges.

6. POC: Recommendations and Prospects
• Smart city projects involve large investment and procurement is a major part of it.
Government should create policy for procurement of goods and services.
• Development for policy framework for private investment in urban sector
• Data sharing between smart cities so best practices and concepts can be adopted
• Institutions for capacity building and attracting new talent
• Cities should develop or look for best practices and frameworks for smart city
development from around the world.
• Citizens participation should increase incrementally in every stage of the project
• Ease of doing business in country to encourage international companies to bid for
projects and invest in smart cities
• Cities should partner with universities, nonprofit groups and private sector while
developing Smart City initiatives.

7. • PPP is an arrangement between Govt. entity & Private entity for provision
of Public Asset or Public Service, where there is a predetermined allocation
of Risk between Public entity & Private entity
• Small-scale infrastructure projects developed on public-private partnership
(PPP) can expedite development of smart cities.
• Cities have limited resources and must engage the private sector to meet
infrastructure and service needs.
• The private sector not only generates wealth and jobs, but also innovates
and improves public delivery systems.
• We cannot build world-class cities with public funds alone. PPPs facilitate
economic growth on a scale and timeline that would be impossible without
private capital.

8. Designed to comprehensively demystify the key aspects of PPP projects in
Infrastructure sector
PPP Framework for
Infrastructure Sector
• Under the Smart Cities Mission of GoI, infrastructure has been one of the major thrust areas in all the major cities
• National and international Case studies about PPP Projects from various sectors also examined
• Deliberates on the various stages of PPP projects including procurement process and implementation.
Developed to address the implementation of PPP Projects in the Infrastructure Sector (with
major IT component)PPP Framework for IT Sector
• Recently, several strategic e-Governance initiatives of the GoI and the State Govts being executed in PPP with IT industry
• IT component has become integral to large number of projects and so a separate RFP is published for same
• It provides a more transparent and balanced business environment to avoid any roadblocks
Defines and streamlines the process of effective implementation of Accounting Framework for
Concessionaire & Grantor
PPP Accounting framework for
Grantor - Concessionaire
• PPP projects are awarded by Govt Authority (Grantor) to various private companies (Concessionaire)
• In absence of any accounting standard of PPPs in India, it becomes imperative to have an Accounting Framework
• Expounds the rights and liabilities and services to be provided by Grantor - Concessionaire
Public – Private Partnerships:
The sine qua non for Smart Cities’ projects

9. Various Phases of the PPP Framework:
Phase 1
Project
Identification
Phase 2
Full Feasibility
Study and PPP
Due Diligence
Phase 3
Procurement,
Final Approval
and Award
Phase 4
Contract
Management
and
Monitoring
Exit Strategy

10. Key Learnings and Observations from Case Studies:
Bangkok Skytrain:-
1. Quality of Market Assessment (Ridership forecast): Ridership forecast is the key input in
revenue setting & is directly linked to revenue against which cost & return are set off.
2. Stakeholders Support: For project like this which was of large magnitude, it is important for
government agency to garner adequate public support to ensure smooth implementation.
3. Financial instability: International & national financial stability gives project financial stability in
long run (Asian financial crisis hit in 1997)
4. Approvals from multiple entities: Existence of multiple authorities led to delays, decision
reversal & increase in cost in implementation. Single window clearance is advisable.
5. Interconnectivity issues between different projects: There was no interconnectivity between
BTS & underground transit system and also different tickets for both systems. So, cars were
used. Also, malls were not connected.
6. PPP Laws and Regulations: Inadequate, overlapping and ambiguous laws and regulations.

11. Case Studies (Contd.)
Delhi – Gurgaon Expressway:-
1. Land Acquisition process: In thickly populated areas, apart from difficulty in acquisition, there
is a risk of not providing the land within reasonable time impacting the overall schedule of the
project.
2. Approval from multiple agencies: More than 15 govt. bodies were involved in the project.
Grants and approvals become a time - consuming and cumbersome process.
3. Support from Stakeholders: Public support for land acquisition and road expansion activities
should be ensured through a continuous dialogue with the affected individuals, especially when
two or more states are involved.
4. Outdated Traffic forecast: Traffic studies conducted almost a decade before. Unexpected high
number of vehicles led to heavy queues at toll booth and delays in traversing stretches.
5. Judicial impediments: There were no risk mitigation measures incase the revenue from
projects stops due to court orders.

12. COMPLETE PROCESS ORGANOGRAM
Strategic Planning Finalizing Strategic Planning
Project 1. Preliminary Need Assessment 1.Pre – Feasibility Analysis
Identification 2. Identifying Project which will meet service need 2.PPP Suitability Check
3. Expression of Project Need 3.Suitability Criteria & Drivers Value
4. Assigning PPP Process management team 4.PPP family decision tree
Financial Study Technical & Risk Study Market Feasibility
1. Financial Feasibility 1. Technical Feasibility 1. Market Analysis & Project Scope
Feasibility Study
& PPP Due2. Value for Money 2. Social Feasibility 2. Need Analysis
3. Economic Feasibility 3. Environmental Feasibility 3. Option Analysis Diligence
2. Risk studies
3. Redefined PPP Mode
Pre – Procurement Activities
Procurement,
1. Land acquisition & Right of way
Final Approval & 2. Shifting of Utilities, Approvals & Clearance
Award 3. Choosing best suitable Procurement method
4. Design of procurement process
5. Preparing for procurement
Procurement Process
1. Procurement Process
2. Expression of Interest (EOI)
3. Request for Proposal (RFP)
4. Selection of Preferred bidder
Risk, Rare Events & Finance Monitoring Activities Contract Management Activities
1. Risk Management 1. Performance Monitoring & Review 1. Development Stage
2. Handling Rare events 2. Regular reporting mechanism 2. Construction Stage
3. Other important activities 3. Escalation mechanism 3. O & M Stage
4. Financial Closure 3. Managing Issues & disputes 4. Exit Stage
Contract
Management&
Monitoring

13. Exit Strategy Steps Exit Strategy Process
1. Phasing out over time
1. Steps for Phasing down & Handover
Exit Strategy 2. Alternate Strategy to Phasing Down
2. Transfer of responsibility 3. Documentation
3. Phasing Out 4. Clauses to Exit services
5. Clauses for Service Transfer Agreement
Other PPP
Project related
activities
1. Environmental Impact Assessment
2. Social Impact Assessment
3. Contract Management Plan template
4. Performance Monitoring
5. Key Performance Indicators
6. Handling rare events (Contingencies)

14. Risk Assessment Framework: Infrastructure Sector
Transport
Energy
Water and Sanitation
Communication
Social and Commercial Infrastructure

15. Risk Assessment Studies: Mapping the Risks
Focus upon the risk of doing business in infrastructure in India and measures to
mitigate and overcome risks. The study is to be conducted in the following areas:
Market Entry Risks
•The Political
Environment
•EODB / Land
Acquisition
•Market Condition
•Collaborative
Partnering Risks
Operational Risks
•Pre-operative Risks
•Procurement &
Vendor Related
Risks
•Internal fraud
•Construction Phase
Risks
•Technological Risks
•Labour Risks
Financial Risks
•Market Risk
•Credit Risk
•Liquidity Risk
•Inflationary Risk
Strategic Risk
•Social &
Environmental Risks
•Compliance Risks
•Strategic Forecast
Risks
•Innovation Risks
•Intellectual Property
Risks
Mitigating Risks
•Suggest/formulate
various practices,
policies, audit
mechanisms
•Address all the 4
risk areas
•Increase awareness
of key risks
•Improving
accountability and
transparency

16. Risk Assessment Study: The Toolkits
Toolkit 1:
Type : Interactive
Purpose: To assist new and existing businesses in assessing and mitigating risks for an effective
decision making at a “BUSINESS LEVEL”.
Proposed Outcome: To help businesses in making a decision towards initiating/continuing business
in India in the infrastructure sector
Target Audience: Business Stakeholders
Toolkit 2:
Type : Interactive
Purpose: To assist Policy-makers in assessing and mitigating risks for an effective decision making at
a “POLICY MAKING LEVEL”.
Proposed Outcome: To help policy makers in taking effective decisions while executing
infrastructure projects in India.
Target Audience: Policy Makers/Govt stakeholders.

17. Buy-in from Government and Businesses
• GCNI – CEGET signed a five year MoU with Pune Smart City
Development Corporation (July 2016 – June 2021) to provide advisory
in governance practices
• The Ministry of Housing and Urban Affairs (MoHUA) is referring to the
PPP and Risk Framework of GCNI – CEGET for developing their
advisory
• Through the creation of a level playing field in Pune the number and
quality of businesses interested in and bidding for Pune smart city
projects has substantially increased
• Pune city has requested to sign an MoU on making it a sustainable an
resilient city

18. THANK YOU
Shabnam Siddiqui
Director
Centre of Excellence for Governance, Ethics and Transparency
UN Global Compact Network India
Scope Minar, Core 3, 5th Floor; Laxmi Nagar; Delhi – 110092.
Mob: +91.95999.57997
Ph No: +91-11-22406496
Email: gcnicoe@gmail.com Website : www.ceget.in