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Home > News > Ppp Model For Metro Projects Has Never Succeeded E Sreedharan

PPP model for metro projects has never succeeded: E Sreedharan

Infrawindow News Bureau

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Hyderabad

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Sep. 15, 2012, 10:42 AM

 

PPP model for metro projects has never succeeded: E SreedharanE Sreedharan, India's metro man, when delivering a lecture 'Delhi metro rail: A success story' at function in Hyderabad iterated  that the public-private partnership (PPP) model for implementing metro projects has not been successful anywhere in world.

 

Earlier, Sreedharan had told a conference at Kochi that transportation projects with private participation are often plagued by malpractices. He added that private firms often show an inflated project cost, to gain a bigger share of the government's viability-gap funding and to borrow more.

 

He also cautioned that the cost of the delay in implementing the metro project would be enormous. Each day lost will cost an additional Rs.2 crore.

 

Sreedharan, principal advisor, Delhi Metro Rail Corporation, said Hyderabad has the good fortune of having L&T as a partner, which should immensely benefit it.

 

Two metro projects are coming up under PPP model at Hyderabad and Mumbai.

 

On Delhi Metro, he said by the time its fourth phase is completed, it will be the seventh largest metro in the world. Today on an average 22 lakh people travel by Delhi Metro, which operate 3,000 trains a day at a frequency of every 2 to 3 minutes at peak-time.

 

The two phases of Delhi Metro project were completed well before the deadline and within the budget, Sreedharan said.

 

He pointed out that Delhi Metro has also been a financial success with it making an operational profit of Rs.2 crore every day. This profit has helped in contributing towards expansion of the metro by way of taking on 5 percent of the cost in phase two and 8 percent in phase three, besides repaying 60 percent of the debt from Japan.

 




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