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Experts want ministry to make PPP contract attractive

Experts want ministry to make PPP contract attractive

Experts want shipping ministry to make the public private partnership (PPP) contracts attractive to promote private investment in port sector.

Industry watchers want the ministry to grant flexibility to port operators to build capacity gradually, depending upon the growth in cargo rather than in one go at the beginning of the contract period, irrespective of volume.

Projects also have to be structured in such a way that they attract more bidders and, more so, competitive price bids.

Port projects should also be put to tender only after receiving environmental clearance rather than the other way round, which is currently the norm.
This will help insulate the private investor from cost escalations due to delays in statutory approvals, experts argue.

Further, experts want the ministry to expedite the release of the guidelines on a free-pricing regime to boost investor sentiment in the sector.

Experts suggest the above measures in order to revive the interest of private sector in port projects. In the ports sector, public-private partnerships (PPPs) are partnerships only in name. ThatÂ’s because the risks associated with PPP port projects are heavily loaded onto the private developer; there is no proper risk sharing between the two sides, experts argue.

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