Tool Kit for Public-Private Partnerships in Urban Bus Transport for the State of Maharashtra, India

The sustained economic growth of India depends on sustainable infrastructure development in all sectors of the economy. An estimate has indicated that for the economy to continue to grow at 8% yearly, infrastructure sectors need investments of approximately $500 billion in 2007-2012, 30% of which would have to be from the private sector, as government resources alone are inadequate to meet such huge investments.

Public-private partnerships (PPPs) have been proven to catalyze both investments, for bridging investment gaps and improving efficiencies in delivery of services. The Government of India (GOI) and the Asian Development Bank (ADB), through a pioneering PPP Initiative "Mainstreaming PPPs in India," have therefore been supporting selected state PPP cells in creating an enabling environment by developing capacities, facilities, and PPP model structures for specific sectors.

Improvements in urban infrastructure both for enhancing the quality of life and for increased productivity are critical. Developing mass transit solutions for the urban population is especially a crucial element of this. The Urban Development Department of the Government of Maharashtra was therefore supported under the GOI-ADB PPP Initiative for identifying and developing possible PPP structures for urban bus transport-based solutions in four selected sample cities.

Assessments of national and international best practices, local circumstances, and consultations with municipal and private stakeholders have led to this PPP tool kit. The tool kit should be useful for public entities in the State of Maharashtra for developing PPP-based projects in urban bus transport and could also provide a reference point for use in other cities, across the country, for project development.