12. Are PPP Arrangements Different in Green Infrastructure Sectors? an Exploratory Analysis of Indian PPP Projects

OECD estimates that global infrastructure investment of USD 95 trillion is needed between 2016 and 2030, even if no further action is taken on climate change. India committed to reducing its emissions by 33% to 35% from 2005 levels to fight back against climate change. This calls for accelerated investments in green infrastructure projects, with more capital expected to come from the private sector. With limited budgets and resources, governments and their agencies are often struggling to meet the demands of infrastructure service delivery. Public–Private Partnership (PPP) arrangements are perceived as compelling alternatives to bridge this infrastructure gap. An exploratory comparison of PPP projects from India indicates that features of green infrastructure projects differ substantially from those of other infrastructure sectors. Green sector PPP projects have smaller project sizes, are predominantly implemented at the state and local level, have modalities that indicate greater risk transfer to the private sector, and are expected to be financially freestanding. This research provides a pathway to re-look at the design of green sector PPP projects to match the business expectations of the private sector and augment the institutional capacities of the project proponents.