PPPs in Malaysia: A Success Story

-- Padmanabhan Nair

Malaysia has been a major success story among developing nations. In the last two decades, Malaysia has been able to fund a number of Public Private partnership (PPP) projects and get them off the ground successfully, with very little failure. The Government has also helped liberally in terms of last mile comfort without ever losing sight of the commercial nature of the enterprise. This paper provides an overview of some of the successful projects in ports, roads, rail, signaling systems, and Special Economic Zones (SEZs), and briefly goes into some of the issues which have made PPP such a major success in Malaysia for infrastructure. The fact that these processes are carried out in a developing country environment should attract the interest of other Asian countries with similar ethos.

© 2007 IUP . All Rights Reserved.

The Role of Infrastructure in Development: A Study of Ports on the Western Coast of India

-- Prabha Shastri Ranade

India's economic reforms have necessitated the expansion of infrastructure. Commissioning of the Konkan railway along the western coast in January 1998 was a major step towards infrastructure development in India. It provided an impetus for the development of the coastal areas by connecting the major ports like JNPT (Nhava Sheva), Mormugao, and New Mangalore, which directly benefitted on the completion of the Konkan railways. This paper focuses on the infrastructure development of these three ports. The imports and exports from these ports prior to the construction of the Konkan railway are compared with the latest statistics. This paper also analyzes the changes in the volume and composition of traffic at these ports as a consequence of their increased accessibility and infrastructure development.

© 2007 IUP . All Rights Reserved.

India's SEZ Policy—Leading to Increased Disparity

-- Mukund Mate

Many economies have used the concept of SEZ in one or the other form to promote exports and boost economic growth. The Indian experiment, started in 1965, did not yield the expected results till 2000. The reasons are many. However, it became imperative to remove the shortcomings and reframe the policy and rules in the post-liberalization era of Indian economy to achieve and maintain high growth rates and to uplift the living standards of Indian population. Inspired by the visible success of China, which started setting up SEZs in the 1980s, the Indian government ventured to revamp its policies regarding FDI, exports, etc. so as to create an atmosphere that is attractive for investors, introduce new technology and give a boost to exports. Due to lack of funds of the requisite order and need to move forward quickly, the government decided to involve private investors (domestic and foreign), unlike in the past. The policy was formulated in 2000 and given shape in the form of an act in June 2005. The rules and guidelines were formulated and made effective in February, 2006. Since the implementation of these rules began, there has been a spate of bitter criticism from different sections of the society, such as the intellectuals, sociologists, politicians from ruling and opposition parties, and environmentalists against the government's SEZ policy. The government has responded to this criticism, both in deeds (amendments) and words (arguments). This paper takes a look at the current SEZ policy and brings out the grave shortcomings, that are feared to have led to increased disparity in the country. It also suggests immediate action to prevent further damage.

© 2007 IUP . All Rights Reserved.

Indian Ports: Post-Liberalization Performance

-- Sajikumar

This paper analyzes the impact of globalization on the performance and efficiency of the major ports in India on various parameters, such as capacity utilization, time and financial efficiency, containerization, transshipment, logistics costs, and managing human resources. The paper infers that there is improvization in capacity utilization, reduction in handling costs, and improvements in operational and financial managements despite constraints on adequate capacity expansion and broad structural reforms, especially in the issues of governance. However, much needs to be done to enhance the crucial performance parameters, such as containerization, transshipment and labor efficiency (which are possibly constrained by outdated equipments), training, equipment handling levels, and labor efficiency.

© 2007 IUP . All Rights Reserved.

Hyderabad Metro Rail Project: An Overview

-- P Geetha Madhuri

With the current population of 7.5 million, and with a considerable floating population to the order of one million per day, the city of Hyderabad is growing at a quick pace. Apart from being the center for pharma, and some other traditional industries, the city is now emerging as a major IT, biotech, and tourism hub. However, the rapid growth of the city, the rising income levels and the corresponding rise in the number of vehicles and the lack of comfortable and efficient public transport system are causing frequent traffic jams and high pollution levels in the city. Thus, to provide a good transportation infrastructure and to solve the increasing traffic congestion in the city, the Government of Andhra Pradesh has approved the development of Mass Rapid Transit System (MRTS). This paper provides an overview of this project on the whole and a focus on its impact on property development adjacent to stations/depots.

© 2007 IUP . All Rights Reserved.

International Comparison on Policy Development and Public Service to Water Bodies

-- P Nair and Vani Vasakarla

Public services create wealth and social capital and are an absolute must if a nation has to progress and prosper. Next to air, water is the single most important resource. This has naturally led to many attempts to capture the water supply market and create a monopoly. Water supply includes four important features which affect the choice of the best performance of the organization in the market. Despite the dominant role of municipalities, national governments have played a significant role in financing water management systems given the social sensitivities. There are constant disputes among states for water from common rivers. The European Union has been funding water management projects in the developing countries. The use of dams to store water has always been a controversial issue and a source of much dispute. The communities are to be involved directly in water resources development and management to get good results. Such efforts would do well to understand community needs, learn from local innovators, and develop projects that can be locally managed and sustained.

© 2007 IUP . All Rights Reserved.

Government Role in BOT Projects: An Overview

-- R Kansal and M C Gupta

The shortage of public funds to finance the construction of new infrastructure projects and the rehabilitation of the existing facilities, coupled with increased demand for capital on traditional alternative sources (e.g., national and international development banks and agencies), have contributed to the creation of alternative forms of project development. Well-publicized examples are Build-Operate-Transfer (BOT) and Build-Own-Operate-Transfer (BOOT) projects, where private sector consortia have become responsible for project promotion. The success of such projects is equally important for the promoter as well as the government. This paper focuses on the role of the government in making the BOT projects successful.

© 2007 IUP . All Rights Reserved.