A Guidebook on Public-Private Partnership in Infrastructure
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in delivering the required amount of service much beyond the contract tenure of the
project. The new assets may also require compatibility with the existing ones. In
such cases, the class/type of assets may also be specified. In all cases, the
preparation of details of the service/performance requirements of a project is very
important.
Once the service that the implementing agency wants to provide through the
project is specified, the outputs required to deliver that service have to be
determined. The project has to produce those outputs in order to deliver the
specified service.
There may be four types of output specifications:
• The main outputs required to
deliver the specified service;
• Ancillary outputs that are not directly related to the main service (for
example, a park-and-ride facility with an urban rail project or a community
building facility with a power project);
• Input specifications; and
• Conditions of assets at the time of handover of the project to the
government (if applicable).
As an example, the broad service specification for an urban transport project
may read: to meet the travel needs of at least 50 percent passengers in a corridor by
a fast and efficient mass transit system. The corresponding main output
specifications may read: the design,
construction, commissioning and operation of
an elevated mass transit system that follows the universal design concept to provide
access to all groups of users; has a capacity to carry 50,000
passengers/hour/direction at an average travel speed of 30km/hour; and is available
for 16 hours everyday.
Further details on the quality aspect of each service delivery element will then
have to be worked out. A common approach to specifying the quality of service
outputs is to develop a matrix of key performance indicators which set the
requirements for each service output. For the above project,
performance indicators
can be developed related to universal design of access to facilities, level of on-board
loading (say, at least 40 percent passengers seated and not more than 6
standees/sq m), average waiting time at platform, average waiting time in queue to
buy ticket, total ingress/egress times, ambient conditions in the vehicles, transfer
arrangements to other service operators, fare collection system, etc.
Since the payment/penalty regimes of a PPP project
are normally linked to
service availability and its quality, the performance indicators have to be very
detailed. There is, however, a problem associated with too many details. The more
detailed the specification is, the closer it becomes to an input rather than an output.
Mention of any particular choice of technology may be avoided as far as
possible as this may inhibit the private party to choose the most efficient technology
and innovation in design. For example, rather than
mentioning any particular
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A Guidebook on Public-Private Partnership in Infrastructure
technology in fare collection/payment, mention may be made of an electronic fare
collection system that does not require fare payment for every single trip separately.
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