Guidelines for PPP


Guidelines for PPP Infrastructure 

Land Acquisition

Land for the project shall be acquired by the Government and made available to the entrepreneur. However, the cost of land acquisition will be borne by the entrepreneur though in some cases Government may consider bearing the cost of land acquisition.


All finance for the project shall have to be arranged by the entrepreneur. No Government guarantee will be made available for the project.

Mode of Selection

Entrepreneurs will be selected on the basis of open competitive invitation for bids for the project. Government will ensure transparency in the selection of entrepreneurs. Selection will be based on the evaluation by a High Level Committee to set up for the purpose. Government of Gujarat will shortlist intending entrepreneurs on the basis of amongst other factors, financial strength, capability to raise resources, managerial capabilities, technical capability, experience of handling B.O.T. Projects etc. Short-listed entrepreneurs will then be issued tender documents for the project, which will have to be submitted in 2 bids viz: Technical Bid and Commercial Bid. In the technical bid, the entrepreneurs will have to detail his requirements including alternate technical specification, proposed toll rates, additional benefits required, if any, all clarifications required in respect to the project, etc. Government of Gujarat intends to suggest after examination of all technical proposals, a standard technical proposal for adoption by all short listed entrepreneurs following which they will be invited to send their commercial bid which will involve only one variable, i.e. indication of concession period.

Project details, designs and specifications

The design and specification of the project will be as per direction of the State Government. However, in some specific cases, the entrepreneur could be given the freedom to prepare plans and designs and specifications, but in such cases, work will be permitted to commence only after these designs and specifications are approved by the Government. Before submitting bids, the entrepreneur will have to make his own inquiries and collect such data as may be necessary for formulation of the project.

Return on Investment and finalising rates of Toll

A Tariff Committee having representation of Government as well as the investor would be appointed by the State Government to consider return on investment based on mode of finance as well as to decide the initial tariff and periodical revision thereof. The Committee will give reasonable opportunity to interested parties to put forth their views on the proposals for fixing of initial tariff and periodical revision thereof. The basic aim would be to ensure a mechanism for adjusting toll rates fairly and equitably so that the viability of the project is not adversely affected.

Settlement of Disputes

Suitable Arbitration mechanism would be established for settlement of disputes between the entrepreneur and the Government. Time limit would be fixed so as to ensure speedy settlement.

Additional benefits over and above Toll Rights

In certain cases, levy of toll alone may not suffice to give adequate return to the entrepreneur. In such cases, as a last resort, Government may selectively consider giving permission to the entrepreneur to develop suitable land in the vicinity of the project and also to use it or sell it in full or part on commercial basis. However, each such case will be examined independently and in depth before giving any such permission and this permission would be within the framework of the then existing rules and regulations and subject to suitable terms and conditions which would prevent misuse. Government may also consider giving advertisement rights to the entrepreneur.

Management and Maintenance of the Project

The entrepreneur will be responsible for management and maintenance of the project after its completion and till the investment is fully recovered. Terms and Conditions of the Agreement with the entrepreneur shall ensure proper maintenance of the facility by the entrepreneur failing which it would be open for the Government to ensure the same so that the toll payee gets adequate value for his money.

Environmental Protection

The entrepreneur would have to undertake and meet all standards of environmental protection as may be laid down by the concerned competent authorities.

Legal Requirement

All proposals shall have to be within the existing rules and regulations. The entrepreneur would further be liable to follow all rules and regulations which may be in force from time to time and shall be fully responsible for any breach of these legal requirements.


Ownership of the proposed facility shall vest with the Government and be leased to the BOT Operator. The entrepreneur will be given the right to build and operate the said facility for a specified period and on completion for the agreed period of operation, the facility shall be handed back to the Government.

Payment of taxes and duties

Responsibility of payment of all taxes and duties will be with the concerned entrepreneur. Normally no tax concession will be considered for such projects.

Period of Toll

The period of toll will depend on traffic, rate of toll and amount invested by the entrepreneur, cost of toll collection, cost of maintenance, return on investment etc. The period could be increased or decreased due to variation of any of these factors. This increase or decrease will be finalised by the Committee mentioned in Para 5 (Return on investment and finalisation of Toll) above, whose decision will be final.