FINANCING URBAN TRANSPORT INFRASTRUCTURE

oppositemincedΔιαχείριση

28 Οκτ 2013 (πριν από 4 χρόνια και 13 μέρες)

98 εμφανίσεις

FINANCING URBAN
TRANSPORT
INFRASTRUCTURE

Presentation Structure



Urban

Scenario


Investment

Needs


Financing

Structure


Financing

Options





Urban Scenario


Urban

population

in

India

increased

from

62

million

in

1951

to

377

million

in

2011
.



In

2011
,

3

cities

with

a

population

greater

than

10

million

and

53

cities

with

a

population

greater

than

1

million
.




By

2031
,

it

is

projected

that

there

will

be

6

cities

with

a

population

greater

than

10

million
.



Rapid Rate of Urbanization

. IIHS 2011. “Urban India 2011:
Evidence”

Source: Road Transport Year Book (2009
-
2010 &2010 2011).

Ministry Of Road Transport & Highways Government Of India New Delhi


From 2001 to 2011, the annual
growth of population 1.6%, but
motor vehicles increased by almost
10%


Average vehicle speed during peak
hour in many Indian cities is as low
as 10
kmph



Rapid Motorization

“Urban

transport

is

the

single

most

important

component

instrumental

in

shaping

urban

development

and

urban

living
.




National
Commission on
Urbanization (NCU)

Investment Needs




Investment Needs


Next 20 years



Study

Total
Investment
for Services

Investments in
Transport
Infratsructure

Investment

in
Mass Transit

Investment

in
Road

Mckinsey

Global
Institute (2007)

Rs

53 lakh
crs
.

Rs

27 lakhs
Crs

(51%)

Rs

18 lakh
crs
.

Rs

9 lakh
crs
.

High Powered Expert
Committee (HPEC)

Rs

39 lakh
crs
.

Rs

22 lakhs
Crs

(56%)

Rs

5 lakh
crs
.

Rs

17 lakh
crs
.


The

total

expenditure

on

roads

and

urban

transport

together

out

of

the

total

expenditure

is

about

same

order

(as

a

percentage)

as

the

Mckinsey

estimate
.




However,

there

is

a

major

difference

in

the

estimate

for

roads

vis
-
a
-
vis

urban

transport
.





Key Issues Affecting Investment In
Urban Transport


High

Capital

and

Operation

cost



Long

Gestation

Period


Project

Viability


User

Charge



Fare

Revision



Cost

Recovery


Demand

Risk


Social

Linkages


Macro

economic

policies


Financing Structure

Financing Structure

National Level


12
th

Five Year Plan

State level


State
Budgets

City Level
-

Municipal
Budgets


To

create

an

effective

institutional

framework

to

manage

investments


Capacity

building

of

State

&

City

Officials


Create

walking

&

Cycling

facilities


Augment

public

Transport


Improve

accessibility

and

mobility


Provide

grade

separated

entries

and

by

passes

for

through

traffic


Improve

road

safety


Use

of

technology

for

multimodal

integration,

safety

etc


Promote

research

in

guided

transport

12
th

Five Year Plan
-

Goals


Sources
for the total investment






A

total

of

Rs

3
,
88
,
308

cr

is

estimated

to

achieve

the

goals

of

the

12
th

5

year

plan

Source


Rs

(in
Crores
)

Central Government

85,843

State Government/ Development
Authorities

1,07,585

Property Development

5,268

Private Sector

1,35,560

Debt from
Multilateral/
Bilateral institutions

31,606

Debt from domestic financial institutions

22,447

12
th

Five Year Plan
-

Investments

State Budgets


In 11
th

Plan


of the total
investment state share was
32.6%


12
th

Central Finance
Commission recommended to
augment Consolidated Fund
of the State to supplement
resources of
panchayats

and
municipalities



Sources of Investment

Financing Options

Financing options

Public Financing
Schemes

Private Sector
Investments

Multilateral
Investments

Innovative Financing
Mechanisms

Financing
Sources


Jawaharlal

Nehru

National

Urban

Renewal

Mission

(
JnNURM
)


Urban

infrastructure

Development

Scheme

for

Small

&

Medium

Towns

(UIDSSMT)


Viability

Gap

Funding

(VGF)


Central

Assistance

for

doing

Technical

Studies

like

CMP,

Metro

DPRs

etc
.



Central Schemes


Advantages



Easing

Budgetary

Constraints



Improved

Value

For

Money



Sharing

Of

Risks

Between

Public

&

Private

Partners



Reduction

In

Cost

Of

The

Project


Main sources of Private Sector Funding


Debt



Equity



PPP


Private Sector Funding

PPP
Options



Rigorous project preparation


Delivery of whole life solution


Focus shifts to service delivery


Time bound implementation plan


Better overall management of public services


Key Benefits of PPP

Examples


Metro Projects

Metro Link

Concessioni
ng

Authority

Concessionaire

Total Cost

(Rs./Crore)


VGF
(Rs./Crore)

Concession
Period

Delhi Metro
Airport Link

DMRC

Reliance
Infrastructure Limited

5800

1786

30 Years

Mumbai Metro
Line
-
1

MMRDA

Reliance Energy
Limited

2356

650

35 Years

Mumbai Metro
Line
-
2

MMRDA

Reliance Energy
Limited

8250

1532

35 Years

Gurgaon Metro
Rail Link

HUDA

DLF & ILFS Limited

1088

-

99 Years

Hyderabad Metro

HMRL

L&T
Metro

Rail

11814

1458


35 Years


Examples


Bus Operations


Indore

City

Bus

Service


Bhopal

City

Bus

Service


Rajkot

City

Bus

Service


Surat

City

Bus

Service


Bhubaneswar



Puri

City

Bus

Service


Ahmedabad

BRT

operations


Delhi

Bus

Service




Case Study:
Bus Operations


Indore

(
Atal

Indore City Transport Services
Limited)

Before City Bus
-

Unorganised

Transport

About AICTSL


Inception

in

2006

with

a

seed

capital

of

Rs
.

5

million
.


Adopted

the

net
-
cost

based

PPP

model

of

bus

operations


widely

copied

in

other

cities

across

India
.


Started

with

37

buses

with

4

operators
.


Installed

vehicle

tracking

systems

on

the

entire

fleet,

that

is

the

best

in

the

country

even

till

date
.


Initiated

the

BRT

project

in

Indore

which

is

in

the

final

stage

of

implementation
.


Funding

from

JnNURM

allowed

modernising

the

fleet

with

CNG

buses

that

have

electronic

displays

and

voice

announcement

systems
.



Private operator
responsibilities:



Owns, operates & maintains
fleet



Collects fare from passengers



Pays premium to AICTSL for
right to operate on route



PPP Model of Bus Operations



Public partners role:


Planning of routes



Inviting tenders for bus operations



Providing support infrastructure



Objective: Providing affordable



& quality public transport

Safety & Quality has helped
attract trips from private travel
modes


Lives

saved

due

to

Indore

City

Bus

::

6

/year


(
0
.
024

fatalities/mill

PKT

*

0
.
64

mill

PKT

per

day

*

365

days
)



Hundreds

of

accidents

avoided
.



CO
2

Reduced




~
5
.
5

ton/day

Lives Saved, Emissions Reduced

Challenges



CNG

fuel

prices

have

increased

by

64
%

in

24

months
,

thus

reducing

profitability

to

operators



AICTSL

has

limited

financial

resources

(premium

from

operators,

advertising)

for

additional

infrastructure



Passenger

ridership

per

bus

has

increased

only

marginally
,

not

keeping

pace

with

input

costs


Modernising
the system by way of better workshop
infrastructure, improved information for passengers
and customer service is necessary for expanding the
system.

Multilateral Development Banks (MDBs)


Multilateral

development

banks

(MDBs)

provide

finance

for

investments

in

human

and

physical

capital

that

promote

development
.



MDBs

assist

in

Urban

Transport

Funding

through

the

following
:


Loans




Grants




The

Global

Environment

Facility

(GEF)



Clean

Development

Mechanism

(CDM)



The

issue

of

urban

transport

financing

has

become

increasingly

prevalent

in

recent

years

as

costs

of

providing

transport

services

have

expanded

more

rapidly

than

traditional

revenue

resources
.




The

National

Urban

Transport

Policy

of

April

2006

also

lays

emphasis

on

the

innovative

use

of

land

as

a

resource

for

financing

public

transport

projects
.




Urban

Transport

Fund


Financing

Through

Cross
-
Subsidy

Projects


Property

Development


Land

Value

Capture



Kiosks

and

Shops

at

Stations


Taxes

and

Fiscal

Incentives


Cross

Subsidy


Innovative Financing Mechanism

Examples
-

Innovative Financing Scheme



Non Fare Box Revenue


Sl. No.

Project Name

Farebox
Revenue (%)

Non Fare Box
Revenue (%)

1

Singapore Metro

89

11

2

Bangkok Metro

88

12

3

London Metro

83

17

4

Washington Metro

77

23

5

New York Metro

70

30

6

Hong Kong Metro

37

63

Case Study
-

BRTS Project


PCMC


PCMC has planned for 10 BRT routes for quick and
effective transit and the cost for the first phase is about
Rs
.
1540
crore








PCMC

has

set

up

an

Urban

Transport

Fund

(UTF),

managed

by

an

SPV,

PCMC

Infrastructure

Company

Ltd

(PICL),

to

finance

its

share

of

the

BRT

project
.


Urban Transport Fund


Pimpri

Chinchwad



100

metres

on

both

sides

of

the

corridor

have

been

earmarked

as

the

“BRT

Influence

Zone



PCMC

has

raised

the

FSI

in

the

influence

zone

from

1

to

1
.
8

with

the

added

FSI

of

0
.
8

being

achieved

through

loading

of

TDR
.


Based

on

the

total

influence

zone

area

along

the

60

km

BRTS

corridor,

additional

0
.
8

FSI

permissible

in

the

influence

zone,

the

project

can

generate

close

to

5000

Crs

of

revenue





TDR Potential

TDRs (
mn

sqft
)

Revenue from TDR
use (Rs.cr)

Max potential, assuming absorption in
80% of influence zone

83

4980

Case Study
-
The TTMC
Concept


BMTC

developed

the

innovative

concept

of

‘Traffic

and

Transit

Management

Centres

(TTMCs)’


The

TTMC

concept

combines

the

development

of

passenger

terminals

with

the

creation

of

commercial

real

estate

space
.


Revenue

from

rent

of

the

commercial

real

estate

space

would

cross

subsidise

the

construction

cost

of

the

passenger

terminal

and

amenities,

and

also

form

a

source

of

continuing

additional

revenue

for

the

corporation
.


Implementation


10

TTMCs

have

been

constructed

since

2009


Initial

funding

was

provided

by

JNNURM

Thank You!