The Hindu Business Line : Call for transparency in rail projects

Speaking at a conference on PPP in Railways organised by Indian Railway Finance Corporation on Saturday, they also pointed out that the capital markets need to be more matured to handle these large-sized projects.

"There should be transparent bidding not just for construction as well as acquiring finance for the project, " said Mr Boe Pahari, Head of Infrastructure Capital at The Americas, ABN AMRO. He added that procurement process has to be very transparent and competitive for private sector to come and put in money.

Mr William Streeter, the Managing Director (Japan and Asia Pacific) of Fitch Ratings, said that it was important to anticipate severe economic cycles, competitive environment and political risks given the long-term period of infrastructure projects.

According to Mr Ajay Sagar, private sector operations, ADB: "It is important to have a mature capital market with mature bond market, equity market and swap market for long term PPP projects to take off."

Pointing out that PPP is basically a method of procurement of services, Ms Kathie Painter, the Managing Director-Infrastructure of Citigroup Centre, said while low cost funding and equitable risk transfer was important, the Government should not give up much value (to the private sector) too early in the project life cycle.