CII 14th Quality Summit Sustainable and Inclusive Growth Through Quality and Competitiveness Public – Private ‘Partners

1. CII 14th Quality Summit Sustainable and Inclusive Growth Through Quality and Competitiveness Public – Private ‘Partnerships’: Is the growing trend towards partnership the answer to Urban Renewal and Conflicts of Inclusiveness

2. Outline “The private sector's immense resources make it an irresistible yet potentially overpowering 'partner' for public initiatives. How do corporations give something back to their communities? As communities and businesses struggle with seemingly differing motivations and needs, we need to consider ways they can work together to form partnerships for inclusive growth to uplift the ‘Quality of Life’ of the masses”

3. Situation with City Stakeholders in most cities • Great deal of interest in the city • Corporates • NGOs, Communities • Various other actors: Rotary etc • Sporadic one-off examples of involvement • Adopting circles, schools, hospitals • Building segments of roads • Police stations, traffic management • Frustration at lack of “BIG PICTURE” engagement • No opportunity to see the full picture • Shut out of the decision-making process • Desire to see both short-term and long-term issues • Acknowledgement that band-aids wont suffice • Willingness to put long-term platforms in place

4. Views of City Government Special Interest Groups Urban Poor City Bureaucrat Urban Middle Class State Bureaucrat Community Based Orgns ParaStatal Agency NGO TypeB City Politician NGO TypeA State Politician Infrast’ure Players National Politician Multi/ Bilateral Agencies Opinion Leaders Business Community Media

5. Views of City Government • Constant vulnerability • Anchor of city services • Want legal housing • Forced often to seek political patronage • Minimal authority • High expectations • HR challenges • Too much political interference • Too many agencies • 2-year tenure Special Interest Groups Urban Poor City Bureaucrat Urban Middle Class State Bureaucrat Community Based Orgns ParaStatal Agency • Minimal understanding of the system • Made to feel political irrelevant • High level of agitation, no avenues to engage • Low opinion of political representatives NGO TypeB City Politician NGO TypeA State Politician Infrast’ure Investor National Politician • No authority to make decisions • Complex system • Too much interference from higher political players • Look out for myself Multi/ Bilateral Agencies Opinion Leaders • Demands for infrastructure • “End justifies the means” • Less patience for long-term reform Business Community Media

6. The reality of Urban Governance • Enormous Day-to-Day Challenges • Solid waste management – thousands of tonnes/day • Water supply • Sanitation systems and treatment plants • Multiplicity of agencies • Ad-hoc measures of past left behind legacy problems • Genuine technical skills issue with local government • New ideas need new skills • PPPs/ Outsourcing/JV Agreements use complex contracts • Creation and monitoring of Service-Level Agreements difficult for local govt • Rapid economic activity • Urban growth running faster than solutions can catch up • Very little reliable data being generated to track this

7. The reality of Urban Governance • Urban poverty issues • Multiple factors: land rights/ permanent and seasonal migration/ beneficiary identification • Multiple institutional jurisdictions (example: basic services with local government; public distribution system/housing with state departments) • Weak administrative systems • Weak human resources with minimal training • Poorly designed Cadre and Recruitment Rules • Dysfunctional internal systems – finance, land records, personnel etc. • Massive financial requirements • Rs 28,000 crores/annum for the next 10 years for urban infrastructure • Minimal support from centre/states • Rural-urban issues • Urban growth primarily at fringes • Complex Governance and equity challenges

8. Urban Change requires multiple factors to be addressed Factors have inter-dependencies among them: *: shows the degree of inter-dependence between factors

9. Defining Public Private ‘Partnerships’ • The Classic Definition • Private delivery of civic services • Privatisation of transport/water/power etc • Building of specific projects with private sector involvement • The Indian definition • Bringing the private sector into public decision-making, e.g.BATF • Larger discussions about POLITICS and GOVERNANCE • Who should really decide • Who are the key players in public decision-making • What is the role of business and markets • How will the existing system – political and administrative – react • Why are Indians so uncomfortable with Politics

10. Facing up to the Issue • Different stakeholders will want different things • Private sector - flyovers, airports, power etc • Urban middle class – mass transport, convenient retail outlets etc • Urban poor – affordable housing, water supply, schooling, etc • There are common requirements among the stakeholders • Good roads don’t hurt anyone • Predictable power supply will benefit all • Quality water will improve everyone’s life • There are scarce resources to meet all requirements • Per capita capital cost for urban infrastructure: Rs 50,000 • Total cost in India: $300 billion • Managing these competing claims is the process of Politics • Urban middle-class and above need to get more engaged • India one of the few countries that demands nothing of citizens

11. Public-Private-Partnerships can still work • Govt needs the funds and the skills of the private sector • Innovative funding mechanisms can tap private funding • Various governance processes can benefit from private skills • Context must be to enable this process, rather than distort it • Private sector interests cannot ride roughshod over others • There are no clear answers anywhere in the world • All countries have figured out their way by experimentation • Felix Rohayton – New York’s Municipal Assistance Corporation • One solution could be to bring city’s stakeholders together • A “CITY CONNECT” Platform • Can succeed if designed and implemented correctly

12. How will CITY CONNECT function • Membership • All Industry forums: CII/ FKCCI/ BMA etc • Other city organisations: Rotary/ Concerned NGOs • Opportunities for thematic engagement • Engagement with government on specific themes with anchors • “Quality in Public Governance” processes • Periodic and public review mechanisms • Full progress report by all relevant agencies • Well-designed with meaningful information • Sustainable long-term platform • Supported by Industry forums • Rotational leadership

13. Benefits of CITY CONNECT • Does not distort the existing Political process • Creates the platform for “Inclusive” development • Sensitises different actors to each others’ perspectives • Provides key inputs and value to Govts – state & local • Addresses short-term and long-term issues of the city

14. Summary and Conclusions • Urban Management among most complex public mgmt challenges • Democracy perceived as India’s strength • Need to deepen our democratic processes at various levels • PPP needs to be interpreted in this light • City Connect could be a platform for inclusive change

15. Thank You