The State has enacted the Gujarat Infrastructure Development Act, 1999 (GID Act) to govern and promote PPP in infrastructure projects.
Public means the Public Bodies including the State Government, Government agency and specified Government agency intending to develop projects for private sector participation.
Private means a person other than the State Government, Government Agency or specified Government agency.
A project specific special company (SPV) created by two public bodies jointly to seek private sector participation in infrastructure projects.
Infrastructure means the creation of infrastructure asset which delivers public goods and services. The 20 infrastructure sectors are listed in schedule I of the GID Act.
Gujarat Infrastructure Development Board (GIDB) is established under the GID Act and assigned such powers and functions as laid down under section 28 of the said Act.
To undertake pre-feasibility, techno-economic feasibility or such other studies which are required for preparation of project/ bid document. To recommend (under sub-section 2 of section 5) on the proposal and proposed concession agreement. To advise the State Government on policy aspects to promote PPP. To lay down priorities of the project. To co-ordinate and monitor the project. To elicit information relating to national and international financial institution and ensure co-operation.
The projects which are taken up through the Government/ Government agency’s budgetary sources are not required to be submitted to GIDB for recommendation. The projects where Government/Agencies solicit private sector participation (PSP/PPP) are to be submitted to GIDB for recommendation along with draft concession agreement.
In case of PPP projects, it is mandatory for the State Government/Govt. Agency who is owning project asset (which is to be vested to private sector to deliver public goods and services ) to submit proposal and concession agreement to GIDB for its recommendation. However, the project exceeding certain cost may only be submitted to GIDB. GIDB has issued regulations determining such cost.
Yes, the Act applies to all infrastructure projects which are to be developed through PPP; even by local bodies.
Under the GID Act, 3 methods are provided (1) competitive public bidding-section 9, (2) by inviting comparative bids (unsolicited proposal-swiss challenge route) under section 10, and (3) thorough direct negotiation.
If the Government/ Government agencies prepare projects (undertake various studies) to create asset and/or deliver goods and services to the people through private sector participation, the competitive public bidding route shall be followed.
If private sector entrepreneur / developer prepare projects (means undertake various studies) to create asset and/ or deliver public goods and services and want to join hands with public bodies , in such cases, comparative bids – swiss challenge route is provided to select private sector developer.
The Government/ Govt. agency is empowered under the GID Act to undertake direct negotiation with private sector for the projects of special nature as provided in schedule III of the GID (Ammendment)Act.-2006.
Concession means rights conferred to private sector on Government properties and public assets.
Government/ Govt agency may assist such projects by giving equity not more than 49% of the total equity, subsidy upto 20% of the project cost (Viability Gap funding). Senior or subordinate loans, conferment of right to develop any land, escrow accounts etc.
VGF is the financial assistance in the form of subsidy/equity support.
As per the Government of India (GOI) policy , GOI shall assist such PPP projects to the tune of 20% of the project cost, it also provides that the State Government shall also sanction further 20% (financial assistance) from its budget.
The State Government has its own VGF scheme and 20% of the project cost can be sanctioned for such projects. The VGF amount is provided to GIDB under the State Budget and GIDB is also a sanctioning authority for such VGF assistance.
It has to be a PPP project, there has to be a competitive public bidding, user charge has to be levied, bidding criteria should be least VGF quoted by private sector.
VGF can only be sanctioned if the selection of private sector developer is through competitive public bidding.
As per the GID Act, the concession period shall not exceed 35 years, however, under GID –Ammendment-Act the provision is made to extend concession period on mutually agreed terms.
State Government/Govt Agency may undertake feasibility or such other studies at its cost, however, GIDB can also undertake studies after receiving proposal from State Government or concerned agency.
The State Government or the Government agency having project asset can sign the concession agreement from public side.
The objective is to develop Global hubs for Economic Activity supported by world class infrastructure and premium civic amenities.
The State has enacted Gujarat Special Investment Region Act, 2009 (GSIR Act) as a legal framework for the development of SIRs.
GIDB is designated as Apex Authority under the GSIR Act and delegated powers to approve development plan and town planning schemes prepared for each SIR.
Under GSIR Act, GIDB as Apex Authority shall exercise the power of the State Government to sanction the development plan and town planning schemes prepared for each area declared as SIR.