tag:blogger.com,1999:blog-5043138489010794057.post4901190295874934945..comments2024-03-27T15:57:09.192+05:30Comments on Urbanomics: PPPs in infrastructure - finance operating assetsUrbanomicshttp://www.blogger.com/profile/16956198290294771298noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5043138489010794057.post-12012248063347768202017-08-28T17:54:25.329+05:302017-08-28T17:54:25.329+05:30Great article. I learned a lot from reading conten...Great article. I learned a lot from reading contents on your page.William Moorehttp://strategicinfo.com/noreply@blogger.comtag:blogger.com,1999:blog-5043138489010794057.post-17710234174585698522017-08-26T03:05:27.605+05:302017-08-26T03:05:27.605+05:30Thanks for pointing that out. Did not know.
At on...Thanks for pointing that out. Did not know.<br /><br />At one level, there is a positive dimension. Strong public operators may be necessary to keep private operators honest. Markets don't necessarily do that. In fact, they rarely do in such markets. A recent example. Vijay Mallaya's Goa property was put on auction a few times and found no takers. Then some of the government institutions decided to bid, and immdly we saw market interest and the property got snapped up. <br /><br />But the real problem, a practical one, is that, without major reforms, AAI is most likely to do a shoddy job of the airport and then, being a public agency, the state government will treat it with kid gloves. And if AAI uses this moral hazard to undercut private parties with low-ball bids and displace them, and deliver poor quality infrastructure, we then have a problem. Further, AAI is unlikely to bring in any expertise to improving the efficiency of airport operations. So, I guess there is a case for preventing AAI from making such bids.<br /><br />One way would be to have technical pre-qualification norms that demand a premium on world-class expertise, which would end up disqualifying the likes of AAI.<br /><br />There will also be another dimension. Creating entry barriers to keep out AAI, can be potentially harmful for the officers concerned. Five years down the line, if the private operator makes money, a CAG report can find fault with the tender process and blame the officials concerned for having prevented a public agency from bidding and having conspired to hand over the airport to a private operator! Urbanomicshttps://www.blogger.com/profile/16956198290294771298noreply@blogger.comtag:blogger.com,1999:blog-5043138489010794057.post-43272348915087603482017-08-24T19:50:51.769+05:302017-08-24T19:50:51.769+05:30Dear Gulzar, recently AAI has outbid GMR for the B...Dear Gulzar, recently AAI has outbid GMR for the Bhogapuram project. <br /><br />http://www.thehindubusinessline.com/economy/logistics/airports-authority-pips-gmr-for-bhogapuram-project/article9825551.ece<br /><br />How do you reconcile the fact although this is named as a PPP project, the project can go to Sovereign entity for execution? Where is the private participation in the project? Anonymousnoreply@blogger.com