PPP's in Road Renovation and Maintenance – A Case Study of the East Coast Road Project
Journal of Financial Management of Planning and Construction, Vol. 15, No. 1, pp. 21-40, 2010
31 Pages Posted: 2 May 2010
Date Written: June 30, 2009
Public-private partnerships (PPPs) are being frequently used today to private sector investment in road projects. Most of the road PPP projects are either for new roads or for those that involve significant expansion of existing capacity. There are limited instances of PPPs for renovating and maintenance of existing roads. The purpose of this paper is to highlight the applicability of using PPPs for road renovation and maintenance projects.
This paper uses a case-study approach since it is an appropriate strategy to investigate a phenomenon within its real life context. The East Coast Road project was chosen for the study because it was the first project in India to use PPP for road renovation and maintenance, and being the first project of its kind, the case was of general public interest.
The paper indicates that risk levels in Rehabilitate, Improve, Maintain, Operate and Transfer (RIMOT) projects are lower than Greenfield BOT projects. Even in areas like renovation and maintenance, PPP structures can bring many advantages over traditional procurement.
Keywords: India, Partnership, Private Sector Organizations, Public Sector Organizations, Roads
JEL Classification: L91, R42
Suggested Citation: Suggested Citation