Recent initiatives of both Central and State Governments Government of India, such as the Smart Cities programme and Swacch Bharat Mission reinforce the importance of investing in urban infrastructure in Indian cities. This will require greater private sector participation, both in terms of technical as well as financial partnership. Urban Infrastructure as a segment has several unique characteristics, including greater revenue and cost volatility, greater influence of community interface, greater variability of Concessioning Authority maturity (ULBs), and participation of multiple levels of Government in various capacities across the project life cycle. All these translate to a complex Governance structure, which needs to pre-empt key risks and devise strategies accordingly.

In this study, we develop a framework for assessing the relationship between several causal variables and PPP outcomes. These causal variables are structured into three buckets—institutional factors, project specific factors and governance / interface management aspects. PPP outcomes include both objective and quantitative factors, such as financial sustainability and service levels, as well as subjective and qualitative factors, such as project legitimacy and adaptability.