1 / 29

FINANCING URBAN TRANSPORT INFRASTRUCTURE: INDIA

FINANCING URBAN TRANSPORT INFRASTRUCTURE: INDIA. Presentation Structure. Urban Scenario Investment Needs Financing Structure Financing Options. Urban Scenario. Rapid Rate of Urbanization. Urban population in India increased from 62 million in 1951 to 377 million in 2011.

buckminster-hays
Download Presentation

FINANCING URBAN TRANSPORT INFRASTRUCTURE: INDIA

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FINANCING URBAN TRANSPORT INFRASTRUCTURE: INDIA

  2. Presentation Structure • Urban Scenario • Investment Needs • Financing Structure • Financing Options MoUD, India

  3. Urban Scenario MoUD, India

  4. Rapid Rate of Urbanization • 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. MoUD, India

  5. Rapid Motorization • From 2001 to 2011, the annual growth of population 1.6%, but FOR motor vehicles, almost 10% • Average vehicle speed during peak hours is often as low as 10 kmph MoUD, India Source: Road Transport Year Book (2009-2010 &2010 2011). Ministry Of Road Transport & Highways Government Of India New Delhi . IIHS 2011. “Urban India 2011: Evidence”

  6. “Urban transport is the single most important component instrumental in shaping urban development and urban living.” National Commission on Urbanization (NCU) MoUD, India

  7. Investment Needs MoUD, India

  8. Investment Needs – Next 20 years MoUD, India

  9. Key Issues ImpactingInvestment In Urban Transport • High Capital and Operation cost • Long Gestation Period • Project Viability • Cost Recovery: User Charge / Fare Revision • Demand Risk • Social Linkages • Macro economic issues MoUD, India

  10. Financing Structure MoUD, India

  11. Financing Structure MoUD, India

  12. Current Goals • Augment Public Transport (PT) • Capacity building of States & Cities • Create walking & Cycling facilities (NMT) • Improve accessibility for mobility • Improve road safety • Use technology for multimodal integration, safety etc. • Promote research in guided transport MoUD, India

  13. Financing Options MoUD, India

  14. Financing options MoUD, India

  15. Central Schemes • Jawaharlal Nehru National Urban Renewal Mission (JnNURM) • Urban infrastructure Development Scheme for Small & Medium Towns (UIDSSMT) • Viability Gap Funding (VGF) • Central Assistance for Technical Studies like CMP, DPRs MoUD, India

  16. Private Sector Funding • 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 • Property Development • Advertisements MoUD, India

  17. Key Benefits of PPP: Entrepreneurship • Rigorous project preparation • Delivery of whole life solution • Focus shifts to service delivery • Time bound implementation plan • Better overall management of public services PPP Options MoUD, India

  18. PPP Examples – Metro Projects MoUD, India

  19. 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 MoUD, India

  20. Case Study: Bus Operations – Indore(AtalIndore City Transport Services Limited) Before City Bus- Unorganised Transport MoUD, India

  21. 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. MoUD, India

  22. 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 • Private operator responsibilities: • Owns, operates & maintains fleet • Collects fare from passengers • Pays premium to AICTSL for right to operate on route MoUD, India

  23. Lives Saved, Emissions Reduced • 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. • CO2 Reduced ~5.5 ton/day MoUD, India

  24. 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. MoUD, India

  25. 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) MoUD, India

  26. Innovative Financing Mechanism • Has become increasingly relevant as cost of providing transport services has expanded more rapidly than revenue resources. • The National Urban Transport Policy 2006 emphasises on 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 MoUD, India

  27. Urban Transport Fund – PimpriChinchwad • 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 MoUD, India

  28. 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 MoUD, India

  29. Thank You! MoUD, India

More Related