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The Indian Roads Congress
E-mail: [email protected]/[email protected]
Founded : December 1934
IRC Website: www.irc.org.inJamnagar House, Shahjahan Road,
New Delhi - 110 011
Tel : Secretary General: +91 (11) 2338 6486
Sectt. : (11) 2338 5395, 2338 7140, 2338 4543, 2338 6274
Fax : +91 (11) 2338 1649
Kama Koti Marg, Sector 6, R.K. Puram
New Delhi - 110 022
Tel : Secretary General : +91 (11) 2618 5303
Sectt. : (11) 2618 5273, 2617 1548, 2671 6778,
2618 5315, 2618 5319, Fax : +91 (11) 2618 3669
No part of this publication may be reproduced by any means without prior written permission from the Secretary General, IRC.
Edited and Published by Shri Vishnu Shankar Prasad on behalf of the Indian Roads Congress (IRC), New Delhi. The responsibility of the
contents and the opinions expressed in Indian Highways is exclusively of the author/s concerned. IRC and the Editor disclaim responsibility
and liability for any statement or opinion, originality of contents and of any copyright violations by the authors. The opinions expressed in the
papers and contents published in the Indian Highways do not necessarily represent the views of the Editor or IRC.
VOLUME 41 NUMBER 12 DECEMBER 2013
CONTENTS ISSN 0376-7256
INDIAN HIGHWAYSA REVIEW OF ROAD AND ROAD TRANSPORT DEVELOPMENT
Page
2-3 From the Editor’s Desk - “Can Roads Be Saviour to Environment”
4 Important Announcement-74th Annual Session to be Held at Guwahati from 18th to 22nd January 2014
5-39 Highlights of International Seminar on “Experience Gained in PPP Projects in Road Sector - the Way Forward” Held at New Delhi on
11-12 November, 2013
40 A Laboratory Study on Short Term and Long Term Ageing of Bitumen Using Modiers
Praveen Kumar, Shambhavi Mishra and Nikhil Saboo
52 Comparative Study of Wet and Dry Blending of Plastic Modied Bituminous Mix Used in Road Pavements
M. Veerendra Kumar, R. Muralidhara and Divya J. Nair
59 The Impact of Road Construction on Depletion of Natural Aggregates and Consequence of Delay in Recycling Pavements - Key Factors
in Sustainable Road Construction
Rajib B. Mallick, Michael Radzicki, Yamini V. Nanagiri and A. Veeraragavan70 A Study on Response Spectrum and Time History Analysis Methods for Seismic Analysis of Prestressed Concrete Bridges
Saadat Zaki Mulla
75 How Safe are Indian Highways at Night
Partha Aich and M.K. Ganguly
93 Behaviour of Piles Under Loads
K.S. Agashe
96 Split Tensile Strength Test of Lime and Cement Stabilized Fly Ash
Kaushik Bandyopadhyay and Sunanda Bhattacharjee
102 Just Published
103-105 Circular Issued by MORT&H
106 Aasam Road Research and Training Institute
107 Tender Notice of NH Circle, Lucknow
108 Tender Notice of NH Circle, Allahabad
109 Tender Notice of NH Circle, Bareilly110 Tender Notice of NH Circle, Lucknow
111 Tender Notice of NH Circle, Lucknow
112 Tender Notice of NH Circle, Lucknow
113 Tender Notice of NH Circle, Lucknow
114 Tender Notice of NH Circle, Lucknow
115 Tender Notice of NH Circle, Chennai
116 Tender Notice of NH Circle, Kanpur
117-118 IRC Membership Form
119-120 74th Annual Session Registration Form
121-122 74th Annual Session Accommodation Form
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2 INDIAN HIGHWAYS, DECEMBER 2013
Dear Readers,
Can roads be considered conducive to environment preservation & conservation? The issue is
debatable but when we see from the aspect of civilization and human inclusive growth, then many
options becomes visible which suggests that roads can be a savior of environment, environment
preservation and protection efforts.
It is commonly debated that the road construction requires lot of natural resources and, therefore,
how they can be considered conducive to environment preservation? Perhaps in the infrastructure
sector, roads sector have maximum possibilities of use of waste material, industrial by-products as
well as municipal waste. The need is to inculcate the concept of achieving higher carbon footprints
in the road construction and operation system. This require dedicated efforts of all the stakeholders
and more importantly the need to carryout dedicated research in a more intensive and extensive
manner. However, over the years the attention towards research in the road sector have taken a
backseat, which now requires a relook. It may not be appropriate to overlook the strength of some
good practices of the past especially on the aspect of principles of alignment xation which use
to be nalized considering the ecological issues. This can be seen from the fact that some of the
national highways are having alignment xed long back (some few centuries ago). This must
be the integral feature of a road sector project preparation especially for the new alignments or
re-alignments.The optimization of land resources in spite of building activities taking place on either side of
the road is yet to be fully integrated and still the concept of by-passes is practiced as a normal
routine. Considering the life cycle cost analysis, it will be always be more environmental friendly
if we consider and implement the concept of multilevel highways/road facilities on the existing
alignment. This may also help in the resulted huge savings in land acquisition and rehabilitation
efforts. Hence economically high returns but doubted by nance minded people normally having
short term perspective/vision.
The issue of material requirement especially the sand, aggregates, etc. do have environmental
concerns but if proper integrated approach is followed by interlinking the various programs ofdifferent Ministries/Departments/Organizations, to a larger extent the environmental concerns
may get translated into a system of environment preservation and conservation. This is a difcult
proposition but not impossible and pessimists will always criticize of such type of concept. However,
this is the need of the hour.
Do road constructions contribute towards climate change? Answer may be both in afrmative as
well as in negative sense. There are number of ways, techniques & technology which may allow
From the Editor’s Desk
CAN ROADS BE SAVIOUR TO ENVIRONMENT
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EDITORIAL
INDIAN HIGHWAYS, DECEMBER 2013 3
road construction activity to transform into climate friendly process. The need is to transform the
narrow mind set to a more positive & pragmatic approach.
Do we really carry out value of return on the investment made in the road sector? And how it has
relevance on the environment conservation? A deeper thought is required to be given as most of thetime the right technical solutions having much higher economic returns are discarded on nancial
considerations. The time has come when the nancial decisions needs to be subjected to technical
audit and the road sector if it adopts the same may give much higher economic returns to the society
and the country.
Do the road accidents have environmental impacts? If we compromise the safety of road users
especially the pedestrians by just deleting the provisions of footpath or pedestrians cross over
facilities, etc. does it have impact on the environment? Why the roads especially in the urban areas
should not be made conducive and safe for the non-motorized vehicles/cyclists as well as pedestrians.
By doing so how much saving we can make in economic terms as well as from environmentalconsiderations. All these issues require a concerted approach as well as synergization of efforts
from all stakeholders.
The need is not to criticize and indulge in blame game but to learn from the failures and bring
in more ecological friendly processes, procedures, techniques and technology to not only reduce
degradation of the eco-system but to create a process of rehabilitation of eco-system that has been
degraded, damaged or destroyed. The road sector can play a pioneering role and in this direction
Indian Roads Congress has already taken some steps and have just published the Guidelines on “Use
of Plastic Waste in Road Construction”. More efforts by the fraternity of Indian Roads Congress
are underway for such process & technologies in the road sector which may ultimately prove to be
a savior sector to the environment among all the infrastructure sectors.
“Do you want to know who you are? Do not ask. Act! Action will delineate and dene you”
“Thomas Jefferson”
Place: New Delhi Vishnu Shankar Prasad
Dated: 21st November, 2013 Secretary General
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4 INDIAN HIGHWAYS, DECEMBER 2013
ATTENTION INVITED
For any enquiry about the 74th Annual Session like Registration, Membership etc. please address to
Secretary General, (Kind Attn. Shri D. Sam Singh, Under Secretary) Indian Roads Congress,
Kama Koti Marg, Sector-6, R.K. Puram, New Delhi-110 022. Phone + 91 11 26185273, 26185315, 26185319,
E-mail: [email protected], or contact the following ofcers:
Registration Membership Technical Presentation Accommodation and TechnicalExhibition
Shri S.K. Chadha
Under Secretary (I/C)
Phone: + 91 11 2338 7140
E-mail: [email protected],
Shri Mukesh Dubey
Section Ofcer
Phone: + 91 11 2338 7759
E-mail: [email protected]
Shri S.C. Pant
Section Ofcer
Phone: + 91 11 2618 5273
E-mail: [email protected]
Shri Suryya Kr. Baruah
Local Organizing Secretary &
SE, Building Circle -I, Highways,
Guwahati- 641 018 (Assam)
Phone: 0361-266 9873
M.: +91-98640 33268E-mail: [email protected]
On the invitation of Government of Assam, the 74th Annual Session of the Indian Roads Congress will be
held at Guwahati (Assam) from 18th
to 22nd
January, 2014. The Invitation Booklet containing the TentativeProgramme, Registration Form, Accommodation Form etc. is available in our website www.irc.org.in. The Relevant Registration and Accommodation Forms are attached with this edition in the end.
The 74th Annual Session of the Indian Roads Congress is scheduled to be held at Guwahati. It is expected that
more than 3000 Highway Engineers from all over the country and abroad will attend this Session. During the
Annual Session of IRC, there has been a practice for various rms/organizations to make Technical Presentations
on their products/technologies & case studies (with innovative construction methods or technologies or having
special problems requiring out of the box thinking and special solutions). The presenters get an opportunity
to address a large gathering of highway professionals from Private Sector as well as decision makers in the
Govt. Sector. These presentations evoke lively interactions among the participants.
A time slot of about 15 minutes is normally allocated for each Technical Presentation to be made through
Power Point. Time is also given for oor interventions. Audio-visual equipment is made available at thevenue for these Presentations.
During Technical Presentation Session no other meetings will be held parallel so as to ensure maximumattendance during the Technical Presentation Session. The stakeholders are, therefore, requested toparticipate in the event and book the slots at the earliest.
Interested Organizations may write to IRC conveying their willingness for participation and send the topic
of their Technical Presentation by E-mail at [email protected] or through Speed Post alongwith a Demand
Draft for Rs.50,000/- (Rupees Fifty Thousand only) drawn in favour of Secretary General, Indian RoadsCongress, New Delhi latest by 20th December, 2013 so that necessary arrangements can be made by IRC.Requests received after 20th December, 2013 will not be entertained. Since the time slot available is limited,
the interested rms/organizations may reserve the slots at the earliest instead of waiting for the last date.
IMPORTANT ANNOUNCEMENT74th ANNUAL SESSION TO BE HELD AT GUWAHATI
FROM 18TH TO 22ND JANUARY 2014
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INDIAN HIGHWAYS, DECEMBER 2013 5
HIGHLIGHTS OF INTERNATIONAL SEMINAR
ON
“EXPERIENCE GAINED IN PPP PROJECTS IN
ROAD SECTOR – THE WAY FORWARD” HELD AT NEW DELHI
ON 11-12 NOVEMBER, 2013Welcoming Hon’ble Minister of Road Transport & Highways, Govt. of India Shri Oscar Fernandes Ji
Hon’ble Minister of Road Transport & Highways being
welcomed by Shri C. Kandasamy, President, IRC and
Director General (Road Development) & SS, MoRTH
Hon’ble Minister of Road Transport & Highways being
welcomed by Shri Vishnu Shankar Prasad,
Secretary General, IRC
Hon’ble Minister of Road Transport & Highways meeting with
National & International Delegates
Hon’ble Minister of Road Transport & Highways and other
Dignitaries on the way to Seminar Hall
The Indian Roads Congress (IRC) in association
with the World Road Congress (PIARC) and Govt. of
France organized two days International Seminar on
"Experience Gained in PPP Projects in Road Sector –
The Way Forward" from 11th to 12th November, 2013
at India Habitat Centre, New Delhi. The International
Seminar was attended by more than 300 Highway
Sector Engineers/Professionals representing various
facets of road sector fraternity all over the globe as
well as from Central/State Govt. Departments, PSUs,
Private Sector Orgnizations, Academic Institutes,
Banking and Financing Institutes, Legal Firms, etc.
and also from multilateral orgnization like World
Bank, Asian Development Bank, JICA, etc.
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HIGHLIGHTS OF INTERNATIONAL SEMINAR
6 INDIAN HIGHWAYS, DECEMBER 2013
Shri B.K.Chaturvedi Ji, Member (Power Energy & Transport),
Planning Commission, Govt. of India being welcomed by
Shri Vishnu Shankar Prasad, Secretary General, IRC
Shri T.K.A. Nair Ji, Advisor to Hon'ble Prime Minister of India
being welcomed by Shri Vishnu Shankar Prasad,
Secretary General, IRC
His Excellency Shri Francois Richier Ji, Ambassador of Govt. of
France to India being welcomed by Shri Vishnu Shankar Prasad,
Secretary General, IRC
Hon’ble Minister of Road Transport & Highways, Govt. of India,
Shri Oscar Fernandes Ji with Shri B.K.Chaturvedi Ji and
Shri Vishnu Shankar Prasad
Shri Gajendra Haldea Ji, Advisor to Deputy Chairman
(Infrastructure), Planning Commission, Govt. of India being
welcomed by Shri Vishnu Shankar Prasad,
Secretary General, IRC
Shri Arvind Mayaram Ji, Secretary, Department of Economic
Affairs, Ministry of Finance, Govt. of India being welcomed by
Shri Vishnu Shankar Prasad, Secretary General, IRC
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HIGHLIGHTS OF INTERNATIONAL SEMINAR
INDIAN HIGHWAYS, DECEMBER 2013 7
Inaugural Function
Shri Oscar Fernandes Ji, Hon’ble Minister of Road Transport & Highways inaugurated the International Seminar
by lighting the traditional lamp.
Lighting of Traditional Lamp during the International Seminar
Other dignitaries, Shri Arvind Mayaram, Secretary,
Department of Economic Affairs, Ministry of Finance,
Govt. of India; His Excellency Shri Francois Richier,
Ambassador of Govt. of France; Lt. Gen. A.T. Parnaik,
Director General (Border Roads); Shri C. Kandasamy,
Director General (Road Development) & SS, Ministry
of Road Transport & Highways, President of IRC,
Shri Gerardo L Gavilanes Gineres, Chairman of the
Technical Committee, PIARC; Shri P.N. Jain, Past
President, IRC; Shri Vishnu Shankar Prasad, Secretary
General, IRC and S/Shri K.K.Y. Mahindrakar and
Shri Swatantra Kumar Vice-Presidents of IRC also
graced the occasion.
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HIGHLIGHTS OF INTERNATIONAL SEMINAR
8 INDIAN HIGHWAYS, DECEMBER 2013
Hon’ble Minister of Road Transport & Highways, Shri Oscar Fernandes Ji being welcomed in traditional manner with Shawl by
President IRC, Shri C. Kandasamy, DG (RD) & SS, MoRTH
Some Glimpses of Inaugural Function
Shri Arvind Mayaram, Secretary, Department of Economic
Affairs, Ministry of Finance, Govt. of India being welcomed in
traditional manner with Shawl by President IRC
Shri C. Kandasamy, DG(RD)&SS, MoRTH
His Excellency Shri Francois Richier, Ambassador of Govt.
of France to India being welcomed in traditional manner with
Shawl by President IRC, Shri C. Kandasamy, DG(RD) & SS,
Shri Gerardo L. Gavilanes Gineres, Chairman, Technical
Committee of PIARC being welcomed in traditional manner with
Shawl by President IRC, Shri C. Kandasamy,
DG (RD) & SS, MoRTH
Lt. Gen. A.T. Parnaik, Director General (Border Roads) being
welcomed in traditional manner with Shawl by Shri P.N. Jain,
Immediate Past President of IRC
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HIGHLIGHTS OF INTERNATIONAL SEMINAR
INDIAN HIGHWAYS, DECEMBER 2013 9
Shri C. Kandasamy, President, IRC and DG (RD) & SS, MoRTH
being welcomed in traditional manner with Shawl by
Shri P.N. Jain, Immediate Past President of IRC
Shri P.N. Jain, Immediate Past President of IRC being welcomed
in traditional manner with Shawl by Shri Vishnu Shankar Prasad,
Secretary General, IRC
Shri K.K.Y. Mahindrakar, Vice President, IRC being welcomed
in traditional manner with Shawl by Shri Vishnu Shankar Prasad,
Secretary General IRC
Shri Swatantra Kumar, Vice President, IRC being welcomed in
traditional manner with Shawl by Shri Vishnu Shankar Prasad,
Secretary General IRC
A view of the dais during Inaugural Function
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HIGHLIGHTS OF INTERNATIONAL SEMINAR
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Address by Shri Oscar Fernandes Ji Hon’ble Minister of Road Transport & Highways, Govt. of India
Shri Oscar Fernandes Ji, Hon’ble Minister of Road Transport &
Highways delivering Inaugural Address
“Distinguished Dignitaries, Delegates from India
& Abroad, Invitees, Guest & Friends from the
Media
It is a matter of great pleasure to be amongst the galaxy
of experts gathered from all over the world on the
occasion of this International Seminar “ExperienceGained in PPP Project in Road Sector – The Way
Forward” being organized jointly by the Indian Roads
Congress (IRC), Government of France & World
Road Association (PIARC). As you all know road
infrastructure contributes not only to the economic
growth of the nation but also help in poverty alleviation
and generation of employment. It is, therefore
necessary for the Highway Engineers to provide world
class roads to our Citizens, facilitating their access to
education, health and well-being, within the context
of sustainable development. UPA Government has
given a thrust to all areas of infrastructure in the
country. It is no more a secret that the highway sector
in the country is witnessing a signicant increase in
activities, in recent years. The Government has made
substantial efforts to tackle the road and shortcomings
of highways sector and to reform its transport
institutions. Perhaps India is the one country where
private sector nancing is taking place on a big way in
the shape of Public Private Parternship (PPP) Projects.
Government is continuously making efforts to create aconducive environment to channelized private sector
nancing.
With the growing road construction industry,
environmental burdens are not far behind because of
the use of resources, the emission of pollutants and
global warming, which affect society at large. Roads
have signicant impacts on both nearby communities
and the natural environment. New roads bring
development to previously underdeveloped areas,
sometimes causing signicant effects on sensitiveenvironments and the lifestyles of indigenous
people. Our UPA Government is committed to an all-
round development of road network in the country.
Strategically, adding lanes to existing highway and
upgrading existing roads in initial phase will reduce
greenhouse gas emissions by easing congestion. This
strategy is paying by reducing the amount of fuel that
vehicles waste in stop-and-go trafc, leading to lower
releases of greenhouse gases from vehicles. India is
soon going to have one of the world’s most extensive National highway networks through various phases of
the National Highways Development Project planned
by the Government.
The one area of concern to which I would like to draw
the attention of all the Experts is the conservation of
the material. There is a need to save scarce physical
resource like aggregates, sand, earth, cement, bitumen,
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INDIAN HIGHWAYS, DECEMBER 2013 11
etc. looking to huge programme of construction of
highways in the country. Construction of roads require
huge amount of soil and a great part of it is drawn
from fertile top soil suitable for agriculture purposes.
Here I feel that we need a convergence of various
efforts. To my mind it is not our department alone
should take up this task, we should have conversions
with Ministry of Railways, Ministry of Rural
Development where we have extensive programme
to provide employment to our people - hundred days
guaranteed employment in the country for every
household. Their main task is to create water bodies.
Whereas, in another government department of water
resources, we are planning to build 10,000 water
bodies, and spending money to create water bodies.We in the Ministry of Road Transport and Highways
are digging out earth for use in road building. Here
I say why don’t we utilize that soil dug for creating
water bodies. We will be conserving rather than
we spending money and wasting our resources. Let
us interlink various departments - Water Resource
Ministry should be one, Ministry of Agriculture and
Ministry of Irrigation can also be associated. One of
our main concerns is to nd money to maintain the
roads. What I say is along the highways we have
plenty of land where we plant saplings & make them
grow into trees. Somebody had planted a tree & we are
eating the fruits. Why don’t we plant tree and leave
them there till they will grow up. After twenty, thirty,
forty, fty years you cut them and use that income for
maintaining roads. Let us have thinking on these lines
so that, we not only draw from nature but we add to
the wealth of the nature.
On the other hand, we have problem of the disposal
& storage of industrial waste like y-ash, copper slag,
marble slurry, etc. We should make sincere efforts
in utilizing these waste materials in construction of
roads through complete/partial replacement for sub-
grade, embankment construction to conserve the top
soil suitable for cultivation. Stabilization by use of
chemical, enzymes and modiers should be attempted
to utilize the otherwise unsuitable soil. Our research
based activity should be conducted in such a manner
that there is proper integration and inter-linkages
between laboratory research and eld requirements/
implementations. I would like to give the slogan “eld
to lab & lab to eld” and the private entrepreneurs
should not feel hesitate in associating and collaboratingwith the government institutions to carry out people
oriented research activities in the road sector.
We are developing roads as a National asset at a huge
cost. These assets need to be preserved qualitatively
through asset management initiatives. We need to
work out appropriate maintenance strategies keeping
in view the available budget and the required demand.
This concept is having high relevance in the big ticket
long term projects of PPP segment. It also opens up
opportunity for usage of new materials, techniques& technologies and I urge upon the Consultants,
Concessionaires as well as executing agencies
including ofcers of the government to develop suitable
mechanism for adoption of the best on continuous
basis. The system should be exible enough for quick
adoption of the same but rigid enough to identify and
quantify the end product result/quality.
As it happens, over a period of time some
apprehensions gets developed about the suitability of
a system, which may be due to changed conditionsand scenarios or may be due to changed aspirations
of users/stakeholders. This is also true to PPP road
projects and the government is taking appropriate
measures to address those issues. In this year budget,
government have already announced setting up
a regulatory mechanism on which work is going
on besides the issues of debt management/debt
renancing, institutional strengthening, restructuring
of projects, revision of MCA, etc. are being examined
and being regularity reviewed and revised. I am
happy that this International Seminar is taking place
at the most appropriate time and I compliment the
organizers especially the Indian Roads Congress for
this endeavor.
We are also planning for constructing green eld
expressways and I am told that Indian Roads
Congress have developed a Manual in a record time
of nine months for Specications and Standards
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12 INDIAN HIGHWAYS, DECEMBER 2013
for Expressways which will be form the part of the
contract agreement. I am told it is going to be released
today. My special compliments for the same.
I am sure during the course of 2 days program highly
useful and meaningful discussion & deliberations will
be carried out by the experts which have come from
different parts of the world and different stakeholders.
I am sure the sharing of experience, expertise and
wisdom by the stalwarts in the road sector will lead to
new workable suggestions & recommendations. I am
eagerly awaiting the same.
I wish the International Seminar all the success.
Jai Hind”
Address by Shri Arvind Mayaram, Secretary,Department of Economic Affairs, Ministry of
Finance, Govt. of India
Shri Arvind Mayaram, Secretary, Department of Economic
Affairs, Ministry of Finance, Govt. of India, delivering address
“Hon’ble Minister for Road Transport & Highways,
Ladies and Gentlemen, Public Private Partnership
is here to stay. We have now the largest program in
all the sectors combined and road have always in the
forefront. I am going to speak very quickly only at three
important issues which I think will be discussed during
the deliberations in the Seminar. First important fact is
that we started PPP and we have not envisaged at that
point of time the integration of World economy and
Indian economy. The turmoil in the global economy
is being felt in India. Now we recognized that there
is a dynamic environment for PPP sector and this
needs to be recognized. There is a need for openness
and transparency in the contracts and concession
agreements. Once you have signed the contracts,
can you open it again without attracting criticism or
without attracting adverse attention? There is alwaysan issue of moral hazard. Therefore, it is necessary
to revisit the concession agreement keeping in view
the stressed PPP projects without failing into the
trap of moral hazard. How best we can address these
important issues keeping in view the sovereign and
the Concessionaire liability in a transparent manner.
The need is to develop a transparent framework for a
negotiable determination of the relief that can be given
to the stressed projects. In this context I am happy that
Ministry of Road Transport & Highways is nalizing a
framework for a road regulator who I believe in future
will act as an Independent arbitrator to determine
where the responsibility for stressed projects lies. The
other issue which I think is important for us in our
deliberations is developing private sector capabilities.
We have now realized that those who have come into
the PPP projects concession period of 25-30 years
do not have the capability of running concession for
such long period. They are having core competence
in the construction only and once they have done
construction, they want to move out of the same. Sowe require the facilitating process of allowing them to
take out their equity stake and simultaneously we need
to develop the management companies seen in some of
the foreign countries like USA & France. The facility
management company in France take over the project
and operate & managed for next 20 to 25 years. We are
looking at important aspect of creating infrastructure
nance & management towards companies which will
step in after the PPP facility is successfully constructed
and then get new investors to manage the facilitiesduring the operation & maintenance period. Lastly, I
would like to speak which is about problem of getting
long term nancing and transfer of debt. You might
have read in the newspapers how the banks in India
are engaged in stretching the loan period to say 10 to
15 years. The infrastructure debt funds will make the
projects more viable without attracting the regulatory
penalty while reconstructing the debt/loan of the
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HIGHLIGHTS OF INTERNATIONAL SEMINAR
INDIAN HIGHWAYS, DECEMBER 2013 13
Concessionaires. This has been a major problem of
the Concessionaires and the Industry. I hope we will
be able to move in this direction and create framework
for long term nancing. Thank you very much”
Special Address by His Excellency Shri Francois
Richier, Ambassador of Govt. of France to India
His Excellency Shri Francois Richier, Ambassador of Govt. of
France to India delivering address
"Hon’ble Minister for Road Transport and Highways
Shri Oscar Fernandes, Shri Arvind Mayaram,
Secretary, Deptt. of Econimics Affairs, Ministry of
Finance, dignitaries from Indian Roads Congress,
distinguish delegates, ladies and gentlemen, I am very
happy to be here in the Inauguration of this Seminar.
It ts very well in the direction which were given few
month ago on the occasion of State visit of French
President Mr. Francois Hollande to India in February.
During this visit, of course, he highlighted strategic
pillars of Indo-French partnership in nuclear, defence,
tourism, space and others, but he also highlighted the
necessity for India to join hands in developing the
economic partnership and today I think we are on the
right track with 750 French companies present with
18 Billion stock of Investments which shows thecondence we have in France in the future and the
growth of India as major economic partner in the World.
This has also of course, in this different dimensions
and one of course is infrastructure development with
urban or others and is denitely to keep priority of this
economic partnership that we are developing. There
is several reasons for that, the rst one is that because
we have all these investments and we are keen to see
infrastructure developing in India because we need
them good for these companies which are currently
beneting from 2.5 lakh Indian skilled personnel. And
we need also across the board strong India with stronginfrastructures and strong stand in the international
community. The latest bi-lateral development between
France and India is technological partnership and
agship of that was recent India-France technology
summit which took place in Delhi and highlighted
number of sectors in which we nd a great common
interest into joining hands and sharing technologies
for the betterment of two countries. And here also
in infrastructure component, I am sure the different
companies present here which all have very cutting
edge technology, are ready to contribute to Indian
growth and sharing those particular technology. In
this context the PPP model that we are going to look
into today is certainly the way forward. From the tests
some time before, we reached the conclusion that
we have best of law on PPP model in this sector. If
I recollect correctly in 2004 less than ten years ago,
since then it has developed quite well and there was
some good reason for that simply because when you
have such a growing demand, expectations are from
the people to have good roads. When you have suchdifculties to nance them. We found it absolutely
necessary to develop that model and I would like to
add other element from smaller countries other than
India, which we look at the grow question in Europe.
We have like most of the growth in India is generated
by the domestic consumption, therefore, I think this
seminar is very timely. I mention the French companies
some of them are present here. I have a list, before
I read the list, I hope I don’t forget anybody that is
Sistha Engeineering, Facenemania Gohebja NAPC inconstruction, Hindustan Colas in Bitumen equipment
supply & construction and Quasi group in waterways
constructions, I think they all are ready to participate
in competition in India to build roads. As many other
companies present in India they have some concern
and legitimate once which could be very well in the
future may become hurdles if not addressed now in
the development of infrastructure in India. I am very
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14 INDIAN HIGHWAYS, DECEMBER 2013
happy that this International Seminar will contribute
to nd solutions and few good reections, new ideas
and innovative proposals to x these concerns and I
am sure that we have great future together.
Thank you very much".
Address by Shri C. Kandasamy, President,
Indian Roads Congress and Director General (RD)
& Special Secretary, MoRT&H
Shri C. Kandasamy, President, IRC and Director General
(Road Development) & SS, Ministry of Road Transport &
Highways, delivering address
“Distinguished dignitaries, delegates and invitees,
friends from the media, ladies and gentlemen. A very
good morning to you.
As we know, the road sector plays a vital role in the
development of the Nation and the Society. The
demand for rapid development needs the effort
of the government be supplemented with private
participation channelizing and utilizing private sector
efciency. As we all know, Govt. of India has declared
this decade as the decade of innovation for inclusive
growth and the UN has declared this decade, the
decade of action for road safety. The Indian Roads
Congress in its Coimbatore Session in January, 2013
has adopted the resolution that the “Roads be built
not only for the vehicles but for the people, safety
and services”. This shift the focus on the people and
services for inclusive growth and road safety. The
ways and means of achieving these objectives will be
greatly benetted from such Seminars and exchange of
views between experts came from different countries.
I am sure that based on these deliberations innovative
ways and means will emerge for inclusive growth &
development in road sector.
Thank You”
Address by Shri Gerardo L. Gavilanes Gineres,
Chairman, Technical Committee of PIARC
Shri Gerardo L Gavilanes Gineres, Chairman of the Technical
Committee, PIARC (TC-2.1- Financing) delivering address
“Excellencys, Ladies and Gentlemen, I welcome to
you all to this International Seminar “Experience
gained in PPP Project in Road Sector – The Way
Forward” organized by the Indian Roads Congress.On behalf of PIARC International, Secretary General
I would like to give you a few words about what
PIARC is. Most of you already know it but Some
of you might not know. The Worlds Road Association
commonly known as PIARC, is a non-political non-
protable organization, that was established in 1909.
So it’s a long history in its back of PIARC. It is known
as PIARC because PIARC stands for “Permanent
International Association of Road Congresses” and
was namely association is to have between 1909
and 1995. Now the name changed and is known as
World Roads Association but for a customary word it
is still known as PIARC. The mission of PIARC is to
organize International forums as this and to disseminate
best practices – promote efcient tools for decision
makers and giving special emphasis for European
countries and countries with economic internships. In
this respect there are already 118 members from all
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HIGHLIGHTS OF INTERNATIONAL SEMINAR
INDIAN HIGHWAYS, DECEMBER 2013 15
over the world, 31 in Asia, 32 in Africa, 33 in Europe
and 22 in America. 37 countries are participating in
the International Committees to PIARC, Committees
which are established in every country to promote
working of PIARC. The work of PIARC is established
every four years period depending on certain things
that have been selected before. For this period which is
already in 2012-2015, there are for statutory things-
management of performance, efcient mobility, safety
in road infrastructure, etc. There are 18 technical
committees and 2 task forces. Apart from them, there
is a permanent committee on terminology which
is something that we found useful because most
of the countries are having different ways for thesame things, the work is to unify and come with a
uniform terminology which works of every one . The
Committee we belong to is committee 1.2 which is for
nancing and management performance. This is one
of the issues & important aspects of PPP roads now
a days, where to nd money to do the things better,
provide the better service to citizens. Our work mainly
consists of studying in different strategy of nancing,
different approaches, different ways, PPP tradition
of procurement, etc. and nally at the end of this 4
years period, we will be able to produce technical
report that will be useful for everyone who wants to
do anything about the world roads nance. To give
the honoraria to the proforma cycle 2008-11, there
were 56 technical reports produced by the different
technical committees. All of them are available to
you all in www.piarc.org, which is a web page for
PIARC. You can nd most of their services available
on knowledge base, virtual library, terminologyinformation about the association, if you want to have
more details about it. The next World Roads Congress
will take place in Seoul in 2015. I would like to nish
this introduction with special thanks to Indian Roads
Congress for organizing this PPP seminar which I
think will be useful for everyone. After this Seminar
which is of two days duration’ – our committees will
take advantage of the occasion and will meet for
another two days. Thank you”
Shri Vishnu Shankar Prasad, Secretary General, IRC
delivering welcome address
Shri P.N. Jain, Immediate Past President, IRC
delivering vote of thanks
Vote of Thanks by Shri P.N. Jain, Immediate Past
President, IRC
“Good morning every body”. Hon’ble Minister of
Road Transport and Highways Shri Oscar Fernandes
Ji, all other dignitaries on the dais, off the dais,
distinguished delegates from India and Abroad,
invitees, guests and friends from the media, On
behalf of the Indian Roads Congress it is my proud
privilege to propose vote of thanks on the occasion
of inaugural function of International Seminar on
“Experience Gained in PPP Projects in Road Sector
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HIGHLIGHTS OF INTERNATIONAL SEMINAR
16 INDIAN HIGHWAYS, DECEMBER 2013
– The Way Forward”. We are feeling blessed to
have our Hon’ble Minister of Road Transport and
Highways with us today who has given his valuable
time from his extremely busy schedule and for giving
guidance to all of us. Today road sector and IRC have
attained greater heights, we would like to request
you for giving continuous support to IRC fraternity
as has been done in the past. I on behalf of Indian
Roads Congress thankful to the Secretary, Department
of Economic Affair Shri Arvind Mayaramji for his
thought provoking address and sharing his experience,
I express sincere thanks for his kind presence. I
express my sincere thanks to the Ambassador of the
Govt. of France to India his Excellency Shri FrancoisRicher for his illuminating address and making
possible to grace this International event in spite of
other engagements, I express my sincere thanks to the
Director General (RD) & SS, MoRT&H and President,
IRC Shri C Kandasamy Ji for his able guidance in
organizing this International Seminar with all his
support, I express my sincere thanks to Lt. General
Shri A.T. Parnaik Ji Director General, Border Roads
for gracing this event and his support to the Indian
Roads Congress, I also express my sincere thankson behalf of Indian Roads Congress to Shri Girardo
Gavilanes Gineres and the entire fraternity of PIARC
who has made this event memorable and we are sure
to have very fruitful cooperation in the years to come.
I express my sincere thanks to the Vice President of
Indian Roads Congress Shri K.K.Y. Mahindrakar and
Shri Swantatra Kumar for gracing this inaugural
function and the cooperation in organizing this event.
My gratitude to this August gathering of eminent
scholars, professional, invitees, guests and all the
participants for giving us this privilege through
their graceful presence on this memorable event.
I sincerely thanks to our guests and delegates from
foreign countries who have accepted the invitation
and have come all the way to India today. I am
highly appreciative of the untiring efforts of technical
and managerial skills of IRC Secretariat under the
leadership of Secretary General Shri Vishnu Shankar
Prasad Ji, I extend my gratitude and special thanks
to him. I also thanks the sponsors and advertisers in
supporting this IRC event, I would like to express my
gratitude to the Press and Media for being with us on
this occasion and I hope they will adequately cover the
deliberations of this apex think tank of the road sector.
In the end again I extend my heartiest gratitude to the
dignitaries on the dais and off the dais, well wishers
and all who have come here from different parts of the
world for supporting and boosting the moral of IRC.JAI HIND
Thank You”
Release of IRC Publications:
Shri Oscar Fernandes Ji, Hon’ble Minister of Road
Transport & Highways released following ve
important IRC documents:
i) IRC:SP:99-2013 “Manual of Specications and
Standards for Expressways”
ii) First Revision of IRC:SP:87-2013 of “Manual of
Specications and Standards for Six Laning of
Highways through Public Private Partnership”
iii) IRC:SP:98-2013 “Guidelines for the use of
Waste Plastic in Hot Bituminous Mixes (Dry
Process) in Wearing Courses”
iv) First Revision of IRC:107-2013 “Specication
for Bitumen Mastic Wearing Courses”
v) Souvenir for International Seminar on
“Experience Gained in PPP Projects in Road
Sector- the Way Forward” containing technical
presentations delivered by experts during
Seminar
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HIGHLIGHTS OF INTERNATIONAL SEMINAR
INDIAN HIGHWAYS, DECEMBER 2013 17
Shri Oscar Fernandes Ji, Hon’ble Minister of RT&H, Govt. of India releasing Souvenir of International Seminar on
“Experience Gained in PPP Projects in Road Sector- the Way Forward”
Release of IRC:SP:99-2013 Manual of Specications and
Standards for Expressways by Hon'ble Minister of RT&H
This Manual has been prepared in a record time of 9 months.
First copy of IRC: SP: 99-2013 being presented to
Shri C. Kandasmy, DG (RD) & SS, MoRTH
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HIGHLIGHTS OF INTERNATIONAL SEMINAR
18 INDIAN HIGHWAYS, DECEMBER 2013
Release of First Revision of IRC:SP:87-2013
“Manual of Specications and Standards for Six Laning of
Highways through Public Private Partnership”
by Hon’ble Minster of RT&H
Release of IRC: SP: 98-2013 “Guidelines for the use of Waste
Plastic in Hot Bituminous Mixes (Dry Process) in Wearing
Courses” by Hon’ble Minister of RT&H
First copy of IRC: SP: 98-2013 being presented to
His Excellency Shri Francois Richier, Ambassador of
Govt. of France to India
First Copy of First Revision of IRC:SP:87-2013 being presented
to Lt. Gen A.T. Parnaik, SM, VSM, Director General
Border Roads
Release of First Revision of IRC:107-2013 “Specication for
Bitumen Mastic Wearing Courses” by Hon'ble Minister of RT&H
First copy of First Revision of IRC:107-2013 being presented
to Shri Gerardo L. Gavilanes Gineres, Chairman, Technical
Committee of PIARC
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HIGHLIGHTS OF INTERNATIONAL SEMINAR
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Glimpses of Some lighter moments
View of Audience during Inaugural Functions Another view of Audience during Inaugural Function
Technical Sessions :
After the inaugural function Technical Session-1
‘Overview in Developing and Managing Road
Infrastructure in India and Other Countries’ was
Chaired by Shri B.K. Chaturvedi, Member (Power
Energy & Transport), Planning Commission, Govt.
of India and Co-chaired by Shri D.P. Gupta, Member, National Transport & Development Committee &
Former DG (RD), MORTH.
Chairman in his opening remark said that
“Distinguished panellists, invitees, the Session
deals with Overview in developing and managing
road infrastructure in India and other countries,
here presented in different areas for giving good
point of view. Let me highlight three areas which
form important components of this strategy. The
rst and the foremost is that it is being realised that
in all developing countries infrastructure is key to
growth. All the infrastructure, road infrastructure
is very important for us. Both rural roads as well as
highways which form the arteries for movement of
goods, these are very critical. While rural roads thereis no way, states have to spent their own money. It is
being realised that we cannot spent large amount of
resources on developing the arteries, the highway, from
the State exchequer. And therefore, we must involve
for private players. These private players have to be
involved not only in terms of construction but also
in terms of their nance participation. So the private
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HIGHLIGHTS OF INTERNATIONAL SEMINAR
20 INDIAN HIGHWAYS, DECEMBER 2013
sector participation comes both in terms of nancing
and in terms of construction. We have tried two major
model of nancing in India. The rst is being public
private partnership based on the BOT Model and the
other public private partnership based on the Annuitymodel. We have other models like what is known as the
engineering construction model but there we need the
Govt. resources which are used and not the resources
of the private players. So practically, a large number
of states now are going to adopt this model because
it is being realised that in this way they are able to
develop faster.
The second component of this strategy has been
levying of toll in most of these roads where the
trafc can bear. So there is a whole body of expertswhich have developed these experts deal with the
various legal terms. We have RFQ, RFP documents
and the Model Concession Agreements and there are
questions being raised in terms of model concession
agreement what will apply and what will not apply,
what is appropriate and what is not appropriate. So
there is a whole body of literature now coming up in
this form. Developing countries have realised that
it is important that concession agreement are of the
best standards and really transparent and fair. Risk
allocation is appropriate. Suitable to the govt. as well
as to the developer. And this way only they will take a
good response. So, therefore, the second point I would
like to say is that there is a whole body of literature
coming up now and there are issues which are seen
during the course of this conference on public private
partnership, the model concession agreements, various
terms of it, the RFP & the RFQ. The terms for qualifying
rms should have tough standards, in case we have
tough standards, no domestic rms, comes, with the
results that the domestic capacity building does nottake place. In case we have very loose standards, then
international rms are not interested. You don’t get
any experience of international construction industry
with the result that you don’t really improve methods
in this regards. There are various types of issues which
need to be seen. This is the second set of issues which
is important for this development.
The third set of issues is the question that as the road
is get made, what about its maintenance and what
about during the operation period. The construction
agreement, how do we go about and for that whole
body of literature has come. We have tried what isknown as operation maintenance contracts and their
again it has been experienced that you can bid them
separately and these are persons who have experienced
in this. So, today the development of the road sector,
which are used to be simple Govt. funded is now more
be on different pattern. The pattern is that the Govt.
wants more private nancing. And for that various
models are being developed. But most of them are
model based on PPP. Govt. also then has to take care
of many of the issues as this model comes because
often people bid in order to grab contracts, sometimes
they bid very aggressively. For the time, things have
changed. How do we negotiate and renegotiate such
contracts, is another question which is now being
raised and become very important particularly in
the context of India. Recently, we nd that a large
number of contracts are such which are not getting
implemented because the developers are nding
difculties in terms and conditions. In some cases, the
situations which they had expected have changed and
economy has slowed down and therefore they cannotimplement and in other cases where they say it can be
implemented the environmental and other clearances
are yet to be given.
There are other sets of issues as you will see relating
to implementing the contracts. What is the Govt’s
responsibility in this regard, in respect of providing
land and providing environmental clearances and
how far should this go before we award this contract.
Issues which we have various points of view. I noticed
that we have very good list of presenters who willgive different points of view. I am sure that during
the course of the deliberations here today, they will
come forward and give their ideas and suggestions on
how some of these issues need to be tackled and how
if there are another related issues which need to be
addressed so that this process of development of road
which is so critical for the development of the economy,
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HIGHLIGHTS OF INTERNATIONAL SEMINAR
INDIAN HIGHWAYS, DECEMBER 2013 21
becomes very vital, very vibrant and succeeds and if it
succeeds to that extent then India’s growth will have
very positive impact on the road model. With these
opening words and highlighting some of the issues, I
would like to invite the speakers”
During this session following four very lucurative and
informative presentations were made by presenters of
India and Abroad:
i) Overview of Road Infrastructure
Development – World Bank Perspective by
Shri Ben Eijbergen, Lead Transport Specialist
& India Infrastructure Coordinator, World
Bank & Shri Arnab Bandopadhyay, Transport
Specialist, World Bank ii) Overview of Road Infrastructure Development
in India by Shri C. Kandasamy, Director General
(Road Development) & Special Secretary to the
Govt. of India & President, IRC
iii) Private Sector view on Operating Roads in
India by Shri Geoffrey GUILLY (France)
iv) Overview in Developing and Managing Road
Infrastructure in Japan- Key Challenges by
Shri Kiyoshi Dachiku, JICA Expert to India
At the end Chairman said that “I want to thank
all the presenters. I would like specially thank
the participants who have been absolutely rstly
discipline and secondly raised very limited number of
questions but very focused one. Three points I would
like to make in respect of this session. First it is quite
clear that Govt. resources alone cannot really meet
the requirements of the road sector. And we have to
therefore, think of some other ways. We have been
thinking of PPP. Mr. Kandasamy gave some very ne
out of the box solutions. How we can use aerospace
on the road to further get more money and make the
project more viable in some of these areas. I think we
need to look at these things. We are also looking at
it in the context of railways is also need to look at
it in context of roads. Because the facts remains that
when roads close down, it has two impacts, rst, the
revenues of govt. of go down and the revenue of Govt.
go down to that extent, the availability of funds for
Govt. projects gets limited. And therefore, availability
to spend Govt. funds on roads and road projects or
any other Govts. spending projects will go down. So,therefore, we have to use other resources. So these are
some out of the box solutions which are required and
we will have to think in that manner.
Second it is important that whatever roads are made,
are they in accordance with the norms and standards
laid down under the agreement. They conrm to it, so
that for the maintenance and for the OMT contract,
it becomes easy. If these are not going in accordance
with that, then to that extent for the OMT contractors,
it is going to be extremely difcult. Besides people willsay that look how can we come in because the roads
are not being built really as per the standards. It is
therefore important that our system in this respect gets
further strengthening and this is an area of weakness I
will say and we need to work in this.
Third, I will say that it is important that we do
undertake R&D and other activities in this sector
continuously today. Roads are getting modernized and
new technologies are coming in and because of which
these are continue to last long. India has a wide variety
of climate. You take north east, you take south, you
take Rajasthan. Such different variety of climate and
it is important that the roads that we make last long. So
therefore, we must continue with the R&D work. And
in this R&D works, we must also take into account
the fact that India has also some difcult areas, which
needs to be appropriately taken care of. And this must
also be shared under the model concession agreement
and the clauses must be so designed. If the clauses
are so designed that you will make roads only in abcmanner and not use any other technology then the
benet of use of new technology for the contractors
goes down. So, to that extent I think we must have
appropriate changes in the clauses. I think this has been
a very useful session as far as I have concern. I would
once again like to thanks the presenters. And come to
the close up of this session with my observations”.
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22 INDIAN HIGHWAYS, DECEMBER 2013
Glimpses of Technical Session-1
View of the dais during Technical Session-1 ‘Overview in Developing and Managing Road
Infrastructure in India and other Countries’
Shri C. Kandasamy, DG (RD) &SS, and President, IRC
making presentation
Shri Ben Eijbergen, Lead Transport Specialist & India
Infrastructure Coordinator, World Bank making presentation
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HIGHLIGHTS OF INTERNATIONAL SEMINAR
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Shri Geoffrey GUILLY (France) making presentation
Shri B.K.Chaturvedi, Chairman of Seesion-1 being honored by
Shri Vishnu Shankar Prasad, Secretary General, IRC
A view of dais during Technical Session-1
Shri Kiyoshi Dachiku, JICA Expert making presentation
Technical Session -2
Technical Session-2 ‘PPP Policy Framework’ was
Chaired by Shri G. Sharan, Former DG (RD), MoRTH.
Govt. of India. During this session following four very
lucurative and informative presentations were made
by presenters from India and Abroad:
i) Budget versus User Based Financing - A
Successful Change Over in Austria by
Shri Friedrich SCHWARZ-HERDA (Austria)
ii) Experienc Sharing in Developing PPP Projects
by Shri S.V. Patwardhan, Advisor, Madhucon
Projects Limited
iii) PPP Policy Framework – by Shri Sri Kumar
Tadimalla, South Asia Sustainable Development
Dept., World Bank
iv) Overview of PPP Policy Framework in India
by Shri Rahul Gupta, Superintending Engineer,
MoRTH
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24 INDIAN HIGHWAYS, DECEMBER 2013
Glimpses of Technical Session-2
View of Dias during Technical Session-2 “PPP Policy Framework”
Shri Friedrich SCHWARZ-HERDA (Austria) making
presentation
Shri S.V. Patwardhan, Advisor, Madhucon Projects Limited
making presentation
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INDIAN HIGHWAYS, DECEMBER 2013 25
Shri Sri Kumar Tadimalla, South Asia Sustainable Development
Dept., World Bank making presentation
Shri Rahul Gupta, Superintending Engineer, MoRTH making
presentation
Technical Session -3
Technical Session-3 ‘Overview of Development in
Financing for Road Infrastructure Programme in
different Countries’ was Chaired by Shri Gajendra
Haldea, Advisor to Deputy Chairman (Infrastructure),
Planning Commission, Govt. of India and Co-chaired
by Shri Nirmaljit Singh, Former DG (RD) & SS,
MORTH.
Chairman in his opening remarks said that “When we
began economic liberalization in the early 1990s, itwas thought that we should get private investment,
private participation in roads and the infrastructure
sector like power, airports, ports and so on. So, from
1995 or so we set about in the Govt. of India to invite
private participation. Well it is a long winded road,
time does not permit the detailed explanation but as I
say the rst project was awarded only, rst worthwhile
project, there were some small experiments here and
there like NOIDA Expressway Toll Way and so on but
they were very small and signicantly awed but a
proper exercise was done only in the late nineties and
rst major project was awarded in 2002 which got
completed in 2005. First PPP road project came about
in 2005. So, we have really speaking about 8, 9 or 10
years of experience in PPP Projects in roads. Now of
course this activity has picked up very fast and we
have made a lot of progress. When this whole
framework was being written, I have great privilege
of being in the middle of it and I was writing theModel Concession Agreement myself and it was a
very complicated exercise because there is no
experience in this in India here at that point of time in
a matter like this so, we set about nding out what had
happened in different countries. We studied what had
happened in Canada and in US and several Latin
American countries, in France, in Italy and south east
Asia and so on. And we learned from their strength,
we also learned from their mistakes, we learnt how
many countries had to renegotiate, how some of their projects failed and fell apart mid-way. So, based on all
those learnings we prepared our framework. So, it can
be said that whatever the world had learnt and whatever
literature was available till about say 2000 or 2001
was actually brought out to bear in our framework and
when we started in the early 2000 then we brought
about a framework being working in last decade or so
and during this period we do not know of too many
developments at least I don’t know many developments
having taken place in different countries which are of
a different nature and which give us reason to change
our strategy. Of course there will be learning from our
own experience and also from other countries and
some of our colleagues here on the dais, will inform
us of the learning in their countries based on that we
can take a relook at what we are doing but during the
past six-seven years what we have implemented has
actually led India to the World global rank one.
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26 INDIAN HIGHWAYS, DECEMBER 2013
According to World Bank India has been the top
recipient of PPP investment in the World for the last 3
or 4 years and we are quite ahead of most other
countries in attracting private investment specially in
highways. The experience with the MCA has beensomewhat mixed not because we have discovered
many problems with the MCA, you can discount part
of it because people may think I am biased in favour
of MCA but as a matter of fact I want to mention to
you that I haven’t come across a serious people which
says these are the four or ve area or these are 5, 10 or
15 clauses which need to be revised or modied or
improved. I haven’t come across that kind of
discussion. Some changes has been made in the
National Highway document but soon after the
changes were made there were some reservations by
the Committee. The Chairman of the Committee who
actually made them that is Mr. Chaturvedi and he
asked for review for more provisions that’s one part
and those changes actually changes the basic substance
of the theory of the MCA. On the other hand there are
about 11 or 12 states which have adopted the MCA
without any change. They have not made the changes
as the Centrtal Govt., the NHAI had made and they
have not reported any problems so far. That is so far as
the report back or feed back as far as MCA is concerned.On the other hand there is quite serious problem, my
perception about the MCA as one of the speaker in the
previous Session pointed out that problem is
implementation and enforcement. I don’t think we
have as yet created the specialization of the capacity
or real mindset that is necessary for successful
implementation of PPP projects . So, I think what has
happened there on one side. We have adopted a fare
and advanced framework taking note of the all that
happened in rest of the world. On the other side whilethis was proceeding and gone quite a lot on the other
side we did not trained our mind, we did not trained
our people, we did not understand the MCA, we did
not change from the old civil engineering practices of
road building to public private participation and
therefore, there have been serious problems in
implementation and enforcement of the MCA so
much. Many other provisions actually are remain on
paper and are in violation. Different types of problems
are rising, so if you do not implement PPP contract
seriously and the way it is mend then you are bound to
have few problems you go along and we have to take
a serious look at that as well. may be you can’timplement some thing. It need simplication we
should look at that. So either, we should modify to
make it more simpler what the stake holders feel or
we should gure out ways how to implement the MCA
more rigorously because one should enter the world of
contracts which is what PPP is. The contract become
sour and you have to follow the terms of the contract,
if you take it lightly, you will have serious untended
consequences. Now, none of these documents should
be regarded as cast in stone, there is going to be
learning, there is going to be hope for improvement,
there is going to be hope for review. As a result of this
belief we have actually started review of the MCA if
that apply to the states, we have not done it for centre,
we have left it to NHAI to decide but the state look up
to Planning Commission for MCA and they follow
MCA without change. We are now in dialogue with
the states that whether we can further improve the
MCA to meet some emerging concerns that we noticed
in the last six or seven years and those of you who are
interested in the MCA as a document. In the theory behind the MCA how it should be improved discovering
the aws, in making improvements. We have organized
the big seminar where we have invited major stake
holders, experts and several people from State
Government to come and talk to us about revise
document, we have circulated revised document
strengthening some of the provision of the MCA to
make them more nanceable and more effective and
those of you who are interested you can either get in
touch with me, send me an email or contact IRC, andthey will let us know and we will be happy to invite
you on 22nd November meeting few days from now
and also give you the revise document. Now so much
for MCA etc. I think the entire business of PPP is quite
an international exercise, there is lot of international
literature, lot of international experience and I presume
the idea of this particular session is to share the
experience and learn from the each other how we can
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do better, incidentally the ADB had commissioned the
economist EIU to do a study on PPP framework and I
am very happy to report to you that they have treated,
and have weighted Indian infrastructure framework
and PPP framework or Model Concession AgreementRFQ, RFP among top in the world just next to UK and
Australia who were much more mature because they
have many many more years of experience but we are
right at the top so far as international rating and
assessment is concerned. There is always more to
learn and always room for improvement that what we
should do. These are some very brief remarks. Time is
short so would not take more of your time and I know
you keen to hear the international participants to gure
out how they are doing and what we can learn fromthem. I am slightly changing the order with the
permission of all the key speakers here. What I
proposed to do to put an Indian experience in the end
and learn the International experience from our guest
rst. My broad understanding is that there are number
of PPP, I mean Toll Roads in Italy so, may I request
Mr. Fabio Pasquali to rst began his presentation on
the Italian experience and what we can learn from
you”
During this session following ve very lucrative and
informative presentations were made by presenters
from India and Abroad:
i) Financing of PPP Road Projects in India by
Shri S.K. Agarwal, Sr. Vice President, SBI
Caps
ii) The funding of Roads and Toll Highway
Network - Japanese Experience by Shri Takaaki
NAMBU, Expectative Managing Director,
Hanshin Expressways Co. Ltd., Japan
iii) Public-Private Partnership in the Road
Transport Sector-New Treads in Italy by
Shri Fabio PasQuali, Head of EconomicAssessment (Italy)
iv) Different PPP Approaches for Indian Roads by
Shri Rik JOOSTEN, The Netherlands
v) “The Australian Experience - Lessons Learned
and New Approaches to Road Financing” by
Shri Richard. A. Lowe, Principal PPP Specialist,
Asian Development Bank (ADB).
View of dais during Technical Session-3 “Overview of Developments in Financing for Road Infrastructure Programme in
different Countries”
Glimpses of Technical Session-3
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Shri Gajendra Haldea, Advisor to Deputy Chairman
(Infrastructure), Planning Commission making
Opening Remarks
Shri S.K. Gupta, Sr. Vice President, SBI
Caps making presentation
Shri Takaaki NAMBU, Executive Managing Director, Hanshin
Expressways Co. Ltd., Japan making presentation
Shri Fabio PasQuali, Head of Economic Assessment, Italy
making presentation
Shri Rik JOOSTEN, The Netherlands making presentation Shri Richard A. Lowe, PPP Specialist, ADB making presentation
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Technical Session-4 ‘Experience Sharing in
Contractual Model Choices, Analysis, Risk Allocation,
Government Support Mechanisms' was Chaired by
Shri Gajendra Haldea, Advisor to Deputy Chairman
(Infrastructure), Planning Commission, Govt. of India
and Co-chaired by Shri Mahesh Kumar, Engineer-in-
Chief, R&B Department, Haryana PWD.
Opening remarks by Chairman Shri Gajendra Haldea:
“First of all I want to thank the IRC again for giving me
this opportunity to be here and to share experience and
learn from various participants across the world. Now
I believe that in the session yesterday there was some
discussion on the MCA and that probably the kind ofsubject that we are going to discuss today because we
are going to talk about contractual model choices and
that is all about contracts. Before I begin, I want to
congratulate in particular the Secretary General of the
IRC. He has taken a great deal of trouble and initiative
in organizing this Seminar like this. It is much needed
and I would suggest to him to make this an annual
feature because it provides a forum for airing people’s
views and understanding each other’s perspective and
I can see a number of people here, people like Mr. D.P.
Gupta, Mr. S.C. Sharma and of course many others
the some of whom I know and some I did not have the
benet of meeting, who have had a lot of experience.
Mr. Sharan is here, they have a lot of experience of
contracts relating to roads with PPP contracts relating
to highways and I think in the tness of thing it might
be better if we leave more time for oor interaction
because we will then get good avor of the views
across this hall. Because well I agreed that there is lot
of expertise residing here in the panel but there is a lot
of expertise residing on the other side as well. So what
I propose to do is, I will cut down time. I am supposed
to have been allocated ve minutes so I am cutting
them down to 2 or 3 minutes and I will conclude here
and I would urge the panel members to try and nish
in about nine to ten minutes so that when questions
come you can cover the areas which actually concern
or bother many of the participants here. So if that’s
Ok with the presenters then lets begin, let Mr. Rajesh
Rohatgi Sr. Transport Specialist from World Bank,
please make the rst presentation”.
During this session following four very lucrative and
informative presentations were made by presenters
from India and Abroad:
i) Output & Performance Based Road Contract
– An Alternate PPP Model by Shri Rajesh
Rohtagi, Senior Transport Specialist, World
Bank.
ii) Experience Sharing in Contractual Model
Choices: Analysis, Risk Allocation, Government
Support Mechanisms – The French Model by
Ms Anne PLUVINAGE, Project Manager,
Ministry of Ecology, Sustainable Development
and Energy, France.
iii) Contractual Model Analysis from Banks
Perspective by Shri Kamal Verma, CEO, SREI
Infrastructure Finance Limited.
iv) PPP Contract Choices- Examples of
ADB’s Experience with Performance
Based Maintenance Contracts (PBMC) by
Ms. Lise Weidner, Senior PPP Specialist, Asian
Development Bank (ADB)
At the end Chairman said that “I just want to conne
myself to few issues. First I, as in other conferences
noticed that there are lots of issues that people want to
raise about MCAs and its various provisions and how
they can be different. But before I come to the MCAs,
I have to just rst say that why do we need PPPs. Well
across sectors, we nd that where incumbent players
do not welcome PPPs easily. Incumbent players like
cash contracts because there it is in their control, they
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30 INDIAN HIGHWAYS, DECEMBER 2013
are in control of the asset, that is ne, that is human
nature. If I were you, I have done in the same way.
The problem is that increasingly govt. budgets don’t
have the money, so the choice is between shrinking
your respective sector whether Ports, Airports,
Highways or any other sector or let it be opened and
let the people of India and your own sector beneted
by PPP participation. There are problems with PPPs,
as there are problems with NHAI, we need to resolve
those problems in a constructive manner. Now,
there are lots of issues with MCA. There are MCAs
issues which I am hearing about and quite often
some of them are arising from different stakeholder
perspective. Some of them also arise because they
think that some provisions are not properly written,
some are imbalance because some of them are written
in some other way. Well, in a lighter vein let me tell
you that we have written in number of MCAs and
every MCA I write I lose more friends because when
I started people welcome the exercise. When you
have done, everybody thinks that it looks that 95% is
OK and that the balance 5% is not that is important.
For me these fellows have not understood. They are
rigid and they don’t understand that particular point
as they are not addressed it. So at the end of the day
most people have dissatisfaction about that 5%. The
truth is about that 5%. If that 5% is given to you,
then the other stakeholder who will walk out and if I
give him that 5%, which he is wanted then you will
walk out. MCA is all about balances in equilibrium
and that is why I would reiterate the suggestions to
Secretary General, IRC, please organize free owing brain storming sessions on MCA. What that does is,
that certain stakeholders with their perceptions and
most of them actually balance out because some of
the people are pulling in different direction and they
neutralize and arrive at some balance. It is possible
that the balance is already reected in MCA and it
is also possible the balance needs to be changed or
reviewed. We know that MCA is not cast in stones
but there must be consensus building. We should not
write MCA on the basis of your or my belief because I
believe this MCA was written after lot of deliberation
with stakeholder consultations and after trying to
build, as much consensus as possible, so I leave this
request with IRC. As regard to the long term debt is
concerned, we have set up infrastructure debt funds
which will renance bank loan that provide long
term debt. We hope this initiative taken last year will
stabilize and as it grows we hope to largely resolve
the nancing problem. Some points were made about
lending, etc. by you as well. We had taken it with the
Reserve Bank about six months ago. Earlier the banks
said this is not secured loan, we want this charge or that
charge etc. Now the reserve bank has categorically
said that loan given on the basis of Model Concession
Agreement are secured loans. that problem is really
behind us. There is always this discussion about TPC,
I am not clear about why so many discussions takes
place because it is between the lender engineers and
it is between the NHAI engineers. I don’t see why
they can’t resolve this, why they can’t nd the way of
establishing a correct project cost. There are issues
on both sides some time these costs are not reasonable.
In these cases NHAI need to look at them again. The
need is to have check and balance in place. This is
primarily a cost estimation exercise, which is in the
domain of the engineers and nance experts and it is
not clear to me yet why this issue keeps going on andno efforts are made either in NHAI or Ministry or any
other forum to nd out how to address this problem of
TPC and how to make it reasonable and apt. Hope
the deliberations in this Seminar may show the way
forward”.
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Ms. Lise Weidner, Senior PPP Specialist, ADB
making presentation
Shri Rajesh Rohtagi, Senior Transport Specialist, World Bank
making presentatin
A view of the dais
Glimpses of Technical Session-4
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Ms Anne PLUVINAGE, Project Manager, Ministry of Ecology,
Sustainable Development and Energy,
France making presentation
Shri Gajendra Haldea being presented memento by
Secretary General, IRC
Another view of dais
Shri Kamal Verma, CEO, SREI Infrastructure Finance Limited
making presentation
Technical Session-5
Technical Session-5 ‘Experience Sharing in Tendering
for Road Infrastructure Contracts & Pre-construction
Activities’ was Chaired by Shri V.L. Patankar,Additional Director General, Ministry of Road
Transport and Highways and Co-chaired by
Shri Manoj Kumar, Chief Engineer, R&B Dept.,
Ministry of Road Transport and Highways.
During this session following four very lucrative and
informative presentations were made by presenters
from India and Abroad:
i) Comprehensive Bidding Practices in Japan by
Shri Keita Nakasu, JICA Expert
ii) Tendering Procedure in Austrian PPP Project, A
Negotiation Procedure by Shri VOLKER Rux
(Austria)
iii) Challenges in Pre-construction Activites in PPP
Projects in India by Ms Neha Vyas, World Bank
and Ms Sangeeta Kumari, World Bank.
iv) PPP in Road Development in India- Government
Support Mechanism by Shri Sudhir Hoshing,
CEO, Reliance Infrastructure Ltd.
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Glimpses of Technical Session-5
A view of the dais
Shri Keita Nakasu, JICA Expert making presentation Shri Volker Rux (Austria) making presentation
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Technical Session-6
Technical Session-6 ‘Legal Aspects for Road
Infrastructure Projects, Including Contract
Management Aspects’ was Chaired by Shri Adesh Jain,
Chairman of I2P2M & Honorary President, PMA andCo-chaired by Shri S.C. Sharma, Former DG (RD) &
SS, Ministry of Road Transport and Highways.
During this session following three very lucrative and
informative presentations were made by presenters
from India and Abroad:
i) Legal Aspects Including From feedback by
Shri EU. Sabine LASSERRE (France)
ii) Coping with Court Sentences – The Case
of Radial Toll Highways in Madrid by
Shri Gerardo L. GAVILANES Gineres (Spain)
iii) User Perceptions & Perspectives for PPP Road
Infrastructure Projects by Shri D.P. Gupta,
Former DG (RD), MORTH & National Expert
on Transport
Ms Neha Vyas, World Bank making presentation
Shri Sudhir Hoshing, CEO, Reliance Infrastructure Ltd. making
presentation
Ms Sangeeta Kumari, World Bank making presentation
Another view of dais
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Glimpses of Technical Session-6
A view of the dais
Ms. EU. Sabine LASSERRE (France) making presentation Shri Gerardo L. GAVILANES Gineres (Spain)
making presentation
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Session: 7-Panel Discussion
Panel Discussion on “Recap on Key Strategies for
Way Forward for PPP Road Projects” was Co-chaired
by Dr. Henri Chua, United Kingdom & Shri C.
Kandasamy, Director General (Road Development) &
Special Secretary, MoRTH. The other panelists were
Shri D.P. Gupta, Former DG (RD), MORTH & National Expert
on Transport making presentation
Another view of dais
View of dais during Panel Discussion Session
Shri S.K. Puri, Convenor, G-1 Committee of IRC &
Former DG (RD), MoRTH; Shri Nirmal Jit Singh,
Convenor, G-8 Committee of IRC & Former DG
(RD) & SS, MoRTH Shri B. Seenaiah, MD, BSCPL
Infrastructure Ltd. and Maj. V.C. Verma, Presendent,
National Highway Building Federation.
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Valedictory Session:
The Valedictory Session was Chaired by Shri T.K.A.
Nair, Advisor to Hon'ble Prime Minister of India.
This Session was also graced by Shri C. Kandasamy,
President IRC and DG (RD) & Special Secretary,MoRT&H, Dr. Henri Chua, United Kingdom, Shri
Vishnu Shankar Prasad, Secretary General, IRC,
and Shri Gerardo L. Gavilanes, Chairman Technical
Committee, PIARC.
Shri T.K.A. Nair, in his Valedictory Address said
“Mr. Kandasamy, other colleagues and friends
including distinguished participants who represent
international institutions of other Countries, Well, rst
of all let me begin with a word of apology for not
being able to j