Does choice of procurement contract matter for cost and quality of infrastructure?
- 30 June, 2016
Central as well as state governments in India lack financial resources and expertise needed to provide adequate infrastructure and maintain it. To augment their capacity and effectiveness, government agencies have been resorting to private funding and management of infrastructure services through the public private partnerships, under which private partners are required to fund the project and maintain it during operational phase. The largest number of PPPs has been formed in the road sector. This project compares the performance of different types of contracts used for procurement of national highways in India, with respect to project costs, and quality of road services for completed national highways. The study is expected to have considerable policy implications for the context-specific design of PPP projects.