2000年-世界发展银行全球_India___Country_Framework_Report_for_Private_Participation_in_Infrastructure_75页_642kb

India: Country Framework Report for Private Participation in Infrastructure

Core Content

This document is a Country Framework Report for India, published by the World Bank and the Public-Private Infrastructure Advisory Facility (PPIAF) in March 2000. It provides an analysis of the infrastructure sectors in India and outlines policy recommendations to improve the environment for private sector participation. The report highlights the importance of regulatory reform, institutional development, and financial mechanisms in enhancing the efficiency and competitiveness of infrastructure services.

Main Sectors and Key Issues

1. Telecommunications

• Market Structure and Performance: The public sector still dominates, with the Department of Telecommunications as the policymaker and licensor. The recently established Department of Telecommunications Services provides fixed services and interstate long-distance services. Teledensity remains low, at 1.72 percent, compared to neighboring countries.
• Private Sector Participation: Private companies now offer cellular, radio-paging, voice, e-mail, and video-text services. However, the license structure and regulatory uncertainty have limited investment and new entry.
• Regulatory Environment: The Telecom Regulatory Authority of India (TRAI) was established in 1997 to regulate the sector, but its powers and jurisdiction are still being clarified.
• Policy Recommendations:
  • Clarify the roles of regulators, policymakers, and service providers.
  • Introduce an efficient interconnection regime to promote competition.
  • Rebalance prices to support a competitive market.

2. Power

• Market Structure and Performance: State electricity boards suffer from low tariffs, high cross-subsidies, poor management, power theft, and uncollected bills, leading to capacity shortages and system unreliability.
• Private Sector Participation: Private investment has been introduced in generation, but distribution remains in the public domain. Private ownership in distribution could improve technical and non-technical losses.
• Regulatory Environment: The need for independent regulatory agencies to set prices and ensure efficiency is emphasized.
• Policy Recommendations:
  • Promote private ownership in distribution.
  • Establish genuinely independent regulatory bodies to ensure fair pricing and operational efficiency.

3. Urban Water and Municipal Services

• Market Structure and Performance: The sector is underfunded, with inadequate revenues and cumbersome institutional approaches. Most services are still provided by public entities.
• Private Sector Participation: Private operators have not yet significantly contributed to financial closure in large projects. However, they are involved in new infrastructure and competition with public providers, especially in telecom.
• Policy Recommendations:
  • Strengthen municipal governments with sound finances.
  • Introduce private sector management to improve efficiency.
  • Prioritize pricing reform to ensure affordability and sustainability.

4. Roads

• Market Structure and Performance: Only 4 percent of national highways have four lanes, and 20 percent of paved roads are in good condition. Many roads are unable to handle increasing traffic.
• Private Sector Participation: Small projects like bridges and bypasses have been privately financed, but larger projects remain under public control.
• Policy Recommendations:
  • Identify and prepare financially viable projects.
  • Determine the role of tolls in overall road funding.
  • Address contingent liabilities for publicly funded projects.

5. Ports

• Market Structure and Performance: Indian ports are low in productivity. The central government oversees 11 major ports, while 142 are under state jurisdiction.
• Private Sector Participation: Some maritime states are attracting private investment, and the central government is seeking private involvement in captive and other facilities.
• Policy Recommendations:
  • Separate statutory and operational roles at major ports.
  • Transfer operational roles to the private sector.
  • Enhance competition among ports to improve service quality and efficiency.
  • Improve institutional structure between major and minor ports.

6. Airports

• Market Structure and Performance: Passenger traffic is concentrated in major cities, with all airports operated by the Airports Authority of India (AAI). Most facilities are not up to international standards.
• Private Sector Participation: A private sector project was recently launched in Cochin, and the government plans to lease operations at major airports.
• Policy Recommendations:
  • Structure leasing contracts effectively.
  • Establish a regulator to oversee private operations under the lease.

Institutional Issues

7. Developing Infrastructure Regulatory Institutions

• Key Issues:
  • Clearly define the responsibilities of regulators and policymakers.
  • Ensure regulatory independence to avoid political interference.
  • Consider multi-sector vs. single-sector regulatory agencies.

8. Infrastructure Finance: The Role of the Domestic Debt Market

• Key Issues:
  • The domestic debt market is limited and constrained by regulations and taxes.
  • The primary debt market is large, but the secondary market is underdeveloped.
  • Policy recommendations include:
    • Increasing demand for long-term debt instruments through pension and insurance reform.
    • Simplifying taxes and regulations to reduce distortions.
    • Supporting securitization and simplifying debt auction procedures.

9. The Public-Private Interface

• Key Issues:
  • The decline in public investment has not been matched by private investment.
  • There is a need for greater transparency and efficiency in contracting and supervision of private projects.
  • Policy recommendations include:
    • Establish a single body in each state for contracting and clearances.
    • Systematically report and value contingent liabilities.
    • Audit public support for private projects to ensure accountability.

Policy Recommendations Overview

• Telecommunications:
  • Clarify roles and promote competition.
• Power:
  • Encourage private ownership in distribution and ensure independent regulation.
• Urban Water and Sewer Systems:
  • Strengthen municipal finances and introduce private management.
• Roads:
  • Identify viable projects and manage contingent liabilities.
• Ports:
  • Enhance competition and improve institutional structure.
• Airports:
  • Structure leasing contracts and establish oversight mechanisms.
• Regulatory Institutions:
  • Ensure independence and proper role delineation.
• Domestic Debt Market:
  • Develop a secondary market and simplify financial mechanisms.
• Public-Private Interface:
  • Improve transparency, efficiency, and accountability in project management.

Key Information

• India has opened up to private investment since its 1991 reform program.
• The private sector has made some progress in telecom, power, and transport, but larger infrastructure projects remain under public control.
• The World Bank and PPIAF collaborated on this report, which is part of a series of country reviews aimed at improving the investment environment.
• Infrastructure investment is critical for economic growth, with the Expert Group estimating the need for $115 billion to $130 billion from 1996–2001 and $215 billion from 2001–2006.
• The public sector still plays a dominant role in providing infrastructure services, but private participation is necessary to improve efficiency and address service gaps.

Conclusion

The report emphasizes that private sector involvement is crucial for India's infrastructure development, but regulatory, financial, and institutional reforms are needed to create a competitive and efficient environment. The Ninth Five-Year Plan and high-level task forces are focusing on attracting private investment, particularly in roads, airports, and ports. The World Bank and PPIAF recommend improving the public-private interface, developing a genuine debt market, and establishing independent regulatory bodies to support sustainable infrastructure growth.