Public Private Partnership - The Next Step

Just behind my house is the sprawling "Infocity", part of the 35 sqkm mega ITIR (Information Technology Investment Region), an ambitious government initiative with an objective of creating employment opportunities and economic growth. ITIR is like a Mega SEZ where the Central Govt funds the development of External links like Highways, Rail and other transportation infrastructure, State develops internal public amenities and provides infrastruture for private developers to build their campuses and manufacturing units. 

One day, on my umpteenth fitness initiative, I went for an early morning walk in the "state-of-the-art" Infocity only to be welcomed by masticating cows sprawled right in the middle of the road adorned by cow dung, dirt and dog's pee, the concoction's smell heavy in the air. The state of the jogging/cycling track was even worse with cobwebs dangling from thoughtfully planted dense trees. There was no hope in hell that I would walk on that road... So much for my desire to stay fit... While returning I chanced to peep into the campuses of Infosys & Wipro which were sparkling clean.

So what's happening here? Everyone seems to have done their job - Central Government, state government, builders & corporates - then why is the Hi-Tech Infocity in such a bad shape?

I looked around and realized the same problem existed almost everywhere. We have footpaths but broken or encroached upon. There is fence on the road dividers which has been cut through by lazy pedestrians or never fixed after accidents. We have parks which have been converted into slums. There are public toilets where if you don't faint due to the foul smell then at least you can come out with some veneral disease.

What's missing in this entire developmental process is that no one is taking care of "maintenance". The Next Step of PPP or the Public Private Partnership is exactly that. While Public Enterprise builds the amenities, let Private entities get involved in maintaining the same in lieu of using the property it maintains to advertise itself. This has been successfully experimented in a few other developed countries. 

This is how it will work. For eg, the Public Enterprise builds a traffic signal. It then floats medium term contracts of 3-5 years to Private Enterprises to maintain the same. The Private company will ensure that the traffic signal is always working, kept clean and maybe even pay for the electricity required to operate the traffic signal. In lieu, the private company can use the same traffic signal as a publicity property where it can display its advertisements. Finally to ensure that the Private Company indeed ensures the upkeep, a third party external auditor is appointed basis whose reports the Government will have the right to severly penalize the defaulting company.

Look around. You will realize we have everything. Just that nothing is maintained. Even cars come with maintenance free packages and pressure cookers with lifelong warrantee. So why not facilities worth millions.

I believe extending the same logic will give us a better, cleaner and convenient social environment. 

Is it so easy? Maybe not... The other day I was visiting this vast mining belt populated by big names like Tata, Jindal, Sail and there were no roads... I mean, actually absolutely NO roads. So I was sharing this view with my local business partner. I told him I am sure all these big companies must be facing huge inconvenience in transporting their goods so why don't they form a consortium and build roads. What he told me was a totally new perspective that I had not thought of... He said the private companies actually WANT to create the infrastructure however the PWD doesn't want them to. The PWD wants the companies to give it the money for the same. The companies obviously know that if they do so, the money would never be utilized for the purpose and end up being gobbled by the sharks.

And thereby hangs the tale...