HIGHWAY ENGINEERING MODULE-IV 1 HIGHWAY DRAINAGE. 2 HILL ROAD 3 ROADSIDE DEVELOPMENT. 4 ROAD ADMINISTRATION AND FINANCE Prof. Ujjval J. Solanki DEPARTMENT OF CIVIL ENGINEERING, DARSHAN INSTITUTE OF ENGINEERING AND TECHNOLOGY-RAJKOT.
ROAD ADMINISTRATION AND FINANCE SCOPE OF STUDY Financing of road projects Highway finance Highway financing and taxation in India Administration of roads. Administration of National Highway Administration of state highway. PPP models Understanding PPP PPP Models Why PPP Road safety audits. (RSA)
ROAD ADMINISTRATION AND FINANCE GTU questions Explain methods of highway financing (June 2011) Explain PPP models ( Dec-2010) June 2011) Likely to ask in DEC-2012 @ Road safety audit
FINANCING OF ROAD PROJECTS
FINANCING OF ROAD PROJECTS Highway finance Highway financing and taxation.
Highway finance Basic Principle : Funds spent on highways are recovered from the road user. (direct or indirect) Two methods of highway financing A) Pay as you-go method. ( Toll) B) Credit financing method. (Borrowed money) Beneficiaries of highway improvements. A) Motor vehicle users. B) Owners of adjacent property. C) General public
Highway finance Sources of revenue: Toll tax Taxes on fuels and lubricants Taxes on new vehicles and spares. Vehicle registration. Special tax on commercial vehicle. Property tax
Highway financing and taxation in India Construction of roads in India Financed by Central Government. State Government Local bodies* ( *Corporation, Municipalities, District panchayat) Taxes levies grouped under State Government Central Government
Highway financing and taxation in India Taxes levies grouped under Central Government State Government Import duty on vehicle and spares Sales tax on vehicles, spares, tyres Import duty on petroleum products Sales tax on petroleum products Excise duty on vehicle and spares Toll at selected location Vehicle registration fees, road tax Permits for goods vehicle License fees Toll by state Govt.
Highway financing and taxation in India Various sources of funds in India (1) Central Road Fund (CRF) (2) General budget in Central and State Govt. (3) State Road fund. (4) Tolls (5) World bank loan. (6) Local bodies sources for urban roads. (7) Special funds like market committee fund
Highway financing and taxation in India Various sources of funds in India ( 1) Central Road Fund (CRF) Since 1929, recommended by Jaykar committee CRF ( Total annual revenue-100%) CRF ( Allocation) (80 % allocated to State Govt on the basis of petrol consumption CRF ( Ordinary) ( Balance 20% reserved by Central Government Use of CRF ( Ordinary and Allocation) -> Road research, Traffic studies, Training, Bridge scheme, Purchase of machinary, Const. of byepass
Highway financing and taxation in India (2) General budget in Central and State Govt. (3) State Road fund. (4) Tolls Advantage of toll road: Well maintained road. Good riding quality. Good way side facility. Traffic restraint measure. Disadvantage of toll road: Toll tax Delay Period for toll collection?
Highway financing and taxation in India (i) (ii) (5) World bank loan. International finance institution World bank, ADB Loan available option Soft terms ( little or no interest- long term-50 year-case study: MH, Bihar, Orissa ) Stiff terms ( 7 % interest)
Highway financing and taxation in India (6) Local bodies sources for urban roads. JnNURAM For Urban Road (Fund 50 % central Govt, 30 % state, 20 % RMC) (7) Special funds like market committee fund
ADMINISTRATION OF ROADS
ADMINISTRATION OF ROADS Development of Road transport Prime need: Efficient road administration. Road administration agencies in India 1) Ministry of Road Transport and Highways(GOI) Responsibility of MORTH Planning, Development, and maintenance of NH. Standard specification Administration of CRF Financial support to State. Road research
ADMINISTRATION OF ROADS Road administration agencies in India 2) Ministry of Rural Road development (GOI) NRRDA Development of Rural road. Mega project in execution PMGSY. 3) State Government road development departments PWD, State highway project, R & B. District R. & B. ROAD AUTHORITY IRC CRRI NHAI
ADMINISTRATION OF ROADS NHAI ( Act of parliament 1988, work-feb-1995 Work for NHDP phases NHDP Phase -I Approved by CCEA in DEC-2000, Rs 30000 Cr. Project Golden quadrilateral 5846 Km
NHDP Phase I
NHDP Phase II Rs 34339 cr. N-S E-W 7300 Km Complition DEC-2007
NHDP Phase I,II & III
ADMINISTRATION OF ROADS Summary CCEA NHDP phase, approved by Phase Project Road length Cost Rs in Cr. Start Year and End year I Golden quadrilateral 5846 30000 2000 to 2007 II N-S, E-W 7300 34339 2003 to 2007 III and IV Up gradation and Four lanning 4035+ 8074 21207 + 54339 2005 V Six lane 6500 2006 VI Expressway 1000 16680 2006 VII Ring road by pass, fly over 700 16680 2007
ROAD ADMINISTRATION AND FINANCE SCOPE OF STUDY Financing of road projects Highway finance Highway financing and taxation in India Administration of roads. Administration of National Highway Administration of state highway. PPP models Understanding PPP PPP Models Why PPP? Road safety audits. (RSA)
PPP models Understanding PPP PPP Models Why PPP?
PPP models Understanding PPP
Highway financing and taxation in India Understanding PPP (Public private partnership) GOI Definition: Project based on contract agreement between Government and private sector company* for delivering infrastructure services on payment of user charges. (PSP- Private sector partnership) PPP ( * 51% or more subscribed equity owned by private entity) Long term, contractual partnership. Financing, Designing, Implementing and operating infrastructure facilities. Collaborative ventures built around expertise and capacity of project partner as per contractual agreement.
Highway financing and taxation in India Fundamental qualities of a PPP project. High priority Govt. planned project Genuine Risk allocation. Mutually viable Salient features of a PPP. PPP forms and formats SPV ( Special purpose vehicle)
Highway financing and taxation in India PPP Models. Ownership of capital assets. Responsibility for investment. Assumption of risks. Duration of contract
Highway financing and taxation in India Private company participation categorization. Supply and management contracts. Supply or service contract (oursourcing) Maintenance management. Operational management. Turnkey projects ( design and build) Affermage (sharing of revenue) and Lease. Concessions.(i) Franchise (ii) BOT Private ownership of assets
Highway financing and taxation in India PPP Strengths and effectiveness Robust and dynamic structure. Govt. ownership is high. Commercial interest protected. Transparent. Sustainable financing and institutional mechanism with potential of bridging the infrastructure gap. Improved delivery of public services. Ability to access capital funding from private sector ( Flow-of-service payments) Full scale risk appraisal.
PPP Project Government should not do in PPP projects. Offer project without DPR Change goalpost after award of contract. Each project as business Government should do in PPP projects. Support the officers. Align economic interest. Transparent bidding process. No manipulation Detailed policy. Full support by government. Clear policy. Defined source of revenue. Proper allocation of risk.
ROAD ADMINISTRATION AND FINANCE SCOPE OF STUDY Financing of road projects Highway finance Highway financing and taxation in India Administration of roads. Administration of National Highway Administration of state highway. PPP models Understanding PPP PPP Models Why PPP Road safety audits. (RSA)
Road safety audits. (RSA)
ROAD SAFETY AUDIT (RSA) Formal procedure for assessing accident potential of a specific road. Objective: Identify the aspect that increase safety and to suggest amendment in the design to enhance safety. Stage for RSA Feasibility stage Preliminary design stage. Detail design stage. Pre-opening stage
ROAD SAFETY AUDITOR RECOMMENDATION Improvement in Road sign Road marking Road lighting Intersection design Geometric design. Drainage. Embankment. Arboriculture. Median openings Road side facilities.
BENEFITS OF ROAD SAFETY AUDIT Reduction in accidents Savings in time and cost. Improve safety. Main focused on accident prevention and accident reduction.
CONDUCTING ROAD SAFETY AUDIT Four main aspects (i) Institutional frame work for RSA. (ii) Parties involved. (i) Project designer (ii) Client (iii) Auditor. (iii) Stages of audit.
DIFFERENCE BETWEEN ROAD SAFETY REVIEW AND ROAD SAFETY AUDIT ROAD SAFETY REVIEW Team members are involved in road design Small team (1-2 member) ROAD SAFETY AUDIT Team members are not involved in road design Large team (3-5 member) Comparison with standards Field review and design features Human factors are not considered Human factors are considered
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