The performance of PPP and publicly procured road projects: evidence from India

Public-Private Partnerships (PPPs) in Indian roads represent the worlds' largest program of private sector investment in road development and operations. Road PPPs in India developed between 2000-2020 account for a total length of 144,070 lane-kilometers and amount to investments in excess of ?2,575 billion. Performance data from 516 PPP and 481 publicly procured road projects were compared in this chapter. The results show that while PPP projects take longer to develop, they have shorter construction timelines and fewer time overruns. Average unit costs and cost overruns for all PPP roads combined are higher but not statistically different from those for non-PPP roads. In the operations phase, available evidence shows the maintenance and resulting quality of PPP roads is better than that of public roads. The superior performance of PPP projects in the construction and operation phases can be attributed to the contractual conditions, incentive structures, and long-term nature of PPP contracts.