The presentation highlights the different aspects of Public Private Partnership in Urban Transport. It highlights the investment required in this sector and what are the challenges faced by private investors.

1. Public-Private Partnership in Urban Transport August 2010

2. Urban Transport = Public Transport Urban Transportation Scene in India Why PPP? Investment and Service Quality Regulatory Environment Conclusion Contents

4. Sustainable Solution ???

5. Increasing Private Vehicle Ownership in Delhi Two Wheelers Cars Three-wheelers Buses and Other Heavy vehicles Vehicle Ownership – Delhi, 1981-2009 (Figures in Cumulative Numbers) Source: Transport Department, GNCTD More than 6 million vehicles are registered in Delhi alone, more than total number of vehicles in Kolkata, Mumbai and Chennai together.

6. Vehicle Growth in India Source: CIA World Factbook ; Road Transport Year Book 2006-07 (March 2009), Ministry of Shipping, Road Transport & Highways, Govt. of India India is growing – GDP Growth rate so is the vehicular traffic. Vehicle Growth and GDP Real Growth Rate in India, 1998-2006 (Vehicles in Millions) (GDP in %age)

9. Cities require a Sustainable Transport System Delhi Population: 2004 = 14.8 million and 2030 = 26.0 million * ST = LCD + AT Source: “The health benefits of tackling climate change”, Lancet Study Aggregate Transport CO2 Emissions Transport CO2 Emissions Per Person (tCO2/ person) CO2 Emissions Increase on 1990 (%) 2004 Delhi 6,146,651 0.4 97% 2010 Business as Usual (BAU) 8,268,298 0.5 165% 2030 Scenario 1: BAU 19,550,693 0.8 526% 2030 Scenario 2: Low Carbon Motor Vehicles (LCD) 17,069,668 0.7 447% 2030 Scenario 3: Active Transport (AT) 10,458,736 0.4 235% 2030 Scenario 4: Sustainable Transport (ST)* 9,327,207 0.4 199%

11. Buses Vital for Reducing Car Use Source: Bus Rapid Transit Planning Guide, GTZ Car use comes down only if city has an integrated network. Transport Share - Developing Cities (Figures in %age) NA NA

12. Where investments need to be made ? Transport System Transport Infrastructure IT Infrastructure

13. Levels of Investment required for different modes Source: “Bus Rapid Transit Planning Guide” (Institute for Transportation & Development Policy, 2007) With the same level of investment, varying system kilometres can be constructed with: Bus Rapid Transit is a mass transport mode adapted to the existing demand and that may be implemented in the short/medium term with comparatively low capital cost

18. Vehicle Ownership in Delhi About 50% households do not own any vehicle in Delhi. Source: Transport Demand Forecast Study, RITES Limited (Household Sample Size – 45,000) Vehicle Ownership in Delhi - % of Households (Figures in %age)

22. Public-Private Partnership A Panacea for All Evils?

25. Transport System PPP Contracts Production (Cost) risk borne by Authority Operator Revenue risk borne by Authority Operator Gross Cost Net Cost Management Contract (cost plus) Gross Cost with passenger volume/revenue incentive Net Cost with shared revenue risk Source: SDG (2009)

28. Some PPP Examples - Transport System Source: India Infrastructure Metro Link Authority Concessionaire Support Required Concession Period Delhi Metro Airport Link DMRC Reliance Infrastructure Limited -- 30 years Mumbai Metro Line I MMRDA Reliance Energy Limited ` 6.50 Billion 35 years Mumbai Metro Line 2 MMRDA Reliance Energy Ltd (REL) ` 22.98 Billion 35 years Gurgaon Metro Rail Link HUDA DLF Limited and IL&FS Limited -- 99 years

30. Some PPP Examples - Transport Infrastructure Source: India Infrastructure Infrastructure Authority Project Cost Concession Period ISBT Dehradun Mussoorie Dehradun Development Authority ` 130 m illion 20 years ISBT Wadala Mumbai Metropolitan Region Development Authority ` 3500 m illion 25 years Multi-Level Parking at Kamalanagar Municipal Corporation of Delhi ` 1600 m illion 30 years Multi-Level Parking at New Market area Kolkata Municipal Corporation ` 500 m illion 30 years

34. Mutual Trust ?? Source: The Age Private Public Source: www.firgoa.usc.es Private Risk Source: www.pakrealestatetimes.com