CII

14th Quality Summit

Sustainable and Inclusive
Growth Through Quality and Competitiveness

Public – Private ‘Partnerships’:

Is the growing trend towards partnership
the answer
to Urban Renewal and Conflicts of Inclusiveness
 Outline

“The private sector's immense resources make

it an irresistible yet potentially overpowering
'partner' for public initiatives.

How do corporations give something back to

their communities?

As communities and businesses struggle with

seemingly differing motivations and needs, we
need to consider ways they can work together
to form partnerships for inclusive growth to
uplift the ‘Quality of Life’ of the masses”
 Situation with City Stakeholders in most cities
•Great deal of interest in the city
•Corporates
•NGOs, Communities
•Various other actors: Rotary etc

•Sporadic one-off examples of involvement

•Adopting circles, schools, hospitals
•Building segments of roads
•Police stations, traffic management

•Frustration at lack of “BIG PICTURE” engagement

•No opportunity to see the full picture
•Shut out of the decision-making process

•Desire to see both short-term and long-term issues

•Acknowledgement that band-aids wont suffice
•Willingness to put long-term platforms in place
 Views of City Government
Special
Urban Poor Interest
Groups City
Bureaucrat
Urban
Middle Class State
Bureaucrat

Community
Based Orgns ParaStatal
Agency

NGO TypeB
City
Politician

NGO TypeA
State
Politician

Infrast’ure
Players National
Politician
Multi/
Bilateral
Agencies Opinion
Business Leaders
Community Media
•Constant
Views of City Government
vulnerability •Minimal authority
•Anchor of city
•High expectations
services •HR challenges
•Want legal housing
•Too much political
•Forced often to seek Special
interference
political patronage Urban Poor Interest
•Too many
Groups City
Bureaucrat agencies
Urban
Middle Class State •2-year tenure
Bureaucrat

Community
Based Orgns ParaStatal
Agency

•Minimal understanding
NGO TypeB
of the system City
Politician
•Made to feel political
irrelevant
•High level ofNGO TypeA
agitation,
State
no avenues to engage Politician
•Low opinion of political
representatives Infrast’ure
Investor National
Politician
Multi/ •No authority to make
Bilateral
Opinion decisions
Agencies
Business Leaders •Complex system
•Demands for Community Media •Too much
infrastructure interference from
•“End justifies
higher political
the means” players
•Less patience •Look out for myself
for long-term
reform
 The reality of Urban Governance

•Enormous Day-to-Day Challenges

•Solid waste management – thousands of tonnes/day
•Water supply
•Sanitation systems and treatment plants

•Multiplicity of agencies
•Ad-hoc measures of past left behind legacy problems
•Genuine technical skills issue with local government

•New ideas need new skills

•PPPs/ Outsourcing/JV Agreements use complex contracts
•Creation and monitoring of Service-Level Agreements difficult for local govt

•Rapid economic activity

•Urban growth running faster than solutions can catch up
•Very little reliable data being generated to track this
 The reality of Urban Governance

•Urban poverty issues

• Multiple factors: land rights/ permanent and seasonal migration/
beneficiary identification
•Multiple institutional jurisdictions (example: basic services with local
government; public distribution system/housing with state departments)

•Weak administrative systems

•Weak human resources with minimal training
•Poorly designed Cadre and Recruitment Rules
•Dysfunctional internal systems – finance, land records, personnel etc.

•Massive financial requirements

•Rs 28,000 crores/annum for the next 10 years for urban infrastructure
•Minimal support from centre/states

•Rural-urban issues
•Urban growth primarily at fringes
•Complex Governance and equity challenges
Urban Change requires multiple factors to be addressed
Factors have inter-dependencies among them:
No. Factor No. of No of
Dependents* Dependencies*
1 Effective decentralisation of government functions 7 4
2 Efficient Financial Management Systems 6 8
3 Defining and monitoring Service Levels 7 6
4 Adequate provision of well-located low-income housing 6 12
5 Relevant and rapid infrastructure provisioning 2 12
6 Efficient collaboration between different agencies 12 7
7 Institutionalised Citizens' participation 7 6
8 Uniform demarcation of administrative jurisdictions 8 2
9 City planning recognising economic/environmental factors 5 10
10 GIS for Spatial Information Management 9 1
11 Guaranteed Land Title System 6 3
12 Effective Zoning. Land-Conversion and Enforcement Policies 4 9
13 Efficient Land Market Assessment process 7 8
14 Periodic regional economic mapping 5 7
15 Regularly updated and centralised Land Records System 8 4
*: shows the degree of inter-dependence between factors
 Defining Public Private ‘Partnerships’
•The Classic Definition
•Private delivery of civic services
•Privatisation of transport/water/power etc
•Building of specific projects with private sector involvement

•The Indian definition

•Bringing the private sector into public decision-making, e.g.BATF

•Larger discussions about POLITICS and GOVERNANCE

•Who should really decide
•Who are the key players in public decision-making
•What is the role of business and markets
•How will the existing system – political and administrative – react
•Why are Indians so uncomfortable with Politics
 Facing up to the Issue
•Different stakeholders will want different things
•Private sector - flyovers, airports, power etc
•Urban middle class – mass transport, convenient retail outlets etc
•Urban poor – affordable housing, water supply, schooling, etc

•There are common requirements among the stakeholders

•Good roads don’t hurt anyone
•Predictable power supply will benefit all
•Quality water will improve everyone’s life

•There are scarce resources to meet all requirements

•Per capita capital cost for urban infrastructure: Rs 50,000
•Total cost in India: $300 billion

•Managing these competing claims is the process of Politics

•Urban middle-class and above need to get more engaged
•India one of the few countries that demands nothing of citizens
 Public-Private-Partnerships can still work
•Govt needs the funds and the skills of the private sector
•Innovative funding mechanisms can tap private funding
•Various governance processes can benefit from private skills

•Context must be to enable this process, rather than distort it

•Private sector interests cannot ride roughshod over others

•There are no clear answers anywhere in the world

•All countries have figured out their way by experimentation
•Felix Rohayton – New York’s Municipal Assistance Corporation

•One solution could be to bring city’s stakeholders together

•A “CITY CONNECT” Platform
•Can succeed if designed and implemented correctly
 How will CITY CONNECT function

•Membership
•All Industry forums: CII/ FKCCI/ BMA etc
•Other city organisations: Rotary/ Concerned NGOs

•Opportunities for thematic engagement

•Engagement with government on specific themes with anchors
•“Quality in Public Governance” processes

•Periodic and public review mechanisms

•Full progress report by all relevant agencies
•Well-designed with meaningful information

•Sustainable long-term platform

•Supported by Industry forums
•Rotational leadership
 Benefits of CITY CONNECT

•Does not distort the existing Political process

•Creates the platform for “Inclusive” development

•Sensitises different actors to each others’ perspectives

•Provides key inputs and value to Govts – state & local

•Addresses short-term and long-term issues of the city

 Summary and Conclusions

•Urban Management among most complex public mgmt challenges

•Democracy perceived as India’s strength

•Need to deepen our democratic processes at various levels

•PPP needs to be interpreted in this light

•City Connect could be a platform for inclusive change

Thank You