Newstrack

PPP transaction advisors to create clarity in tourism projects

Sanjeev Bhar - New Delhi

The panel of 11 companies, that were announced as transaction advisors to state governments to help structure infrastructure projects through Public-Private Partnership (PPP) in August 2007 by the ministry of finance, have now been issued guidelines for the various projects.

Ramnath Iyer, director (PPP) for Crisil Infrastructure Advisory that is part of the panel, said, "These advisers will enable states to identify the right companies when bids will be called upon. It will also allow the rapid sharing of best practices across different states and agencies so that the taxpayer gets the best value." The panel will treat projects in an unbiased manner that will eliminate the scope of agents acting as contenders for projects.

Having independent and transparent PPP advisers will give governments the confidence to push forward many projects in a range of sectors, especially in the hospitality and travel sectors, where projects face roadblocks owing to state-wise policies. "These sector projects are complex in nature; they could range from convention centres, hotels, to heritage upkeep to creating avenues for better facilities for tourism which cannot be clubbed into one group. In comparison to other areas like power or national highways, creating a standard documentation for these sectors is difficult," explained Iyer. The panel would also reduce the scope of scrutiny owing to the established identity of the companies.