Assignment Brief:

Read the case: Connecting India: Riding the Bumps on the Highway Programme (Appendix 2).

Based on the Connecting India: Riding the Bumps on the Highway Programme Case Study, you are requested to answer the following questions:

1. Describe the four main types of PPP contractual structures and indicate how risk is allocated between the parties involved. (20)

2. Present a summary of the Kishangarh-Ahmedabad Expressway project using the following guidelines: Project description, project structure with stakeholders, and financing model. (15)

3. With it being financed and implemented under a PPP structure, how do macroeconomic conditions and toll rate issues serve to deter projects investors and financiers? (15)

4. Discuss the regulatory risks identified in the Indian National Highway Development PPP Programme and how they affected the financial viability/success of the programme. (15)

5. Think about how SA addressed the issue of involving pension funds and insurance funds in infrastructure investment. Do you think this would work or alleviate the financial pressure in the Indian example? (10)

6. In the case study, it is noted in reference to the Concession Agreements that the Contractors raised objections to various terms and conditions within the contracts, for example, exit arrangements for contractors, whereby large equity stakes had to be retained by the original companies.

a. Explain what this means (2)

b. Do you think this is fair? How are contractors' exits usually dealt with in Concession Agreements? (8)

7. One of the options explored is to reschedule the loan to GMR.

a. What does this mean? (2)

b. What are the negative and positive implications that could result from a decision to restructure, from GMRs perspective? (8)

c. If decided, do you think the rescheduling would stop GMR from cancelling the contract? (5)