Sector Specific Inventory & Institutional Strengthening for PPP Mainstreaming - Tourism Department
Risks
Operation Phase
NPV at Risk (INR Lakhs)
Financial Impact
NPV of Risk to be added back (INR Lakhs)
Construction Time Overrun
Time overrun of 50% of the Construction Period
1608.0
-400.2
Revenue Shortfall
Decrease in revenue by 15%
1146.4
-861.8
Opex risk
Increase in O&M Cost by 15%
1783.7
-224.5
NPV of all transferred Risks to be added back to base PSC model
-1912.6
Therefore INR (-) 1912.6 Lakh is the NPV to be added back to the base PSC model. The risk adjusted PSC reference therefore comes out to be INR 95.6 Lakh, i.e., the net receivables to the government for implementing the project through DoT is INR 95.6 Lakh.
7.4.4.2
NPV of all retained Risks to be added onto the PPP Reference Model
Based on the above risk assessment framework, the NPV of risks to be added back to the PPP reference model is as follows: NPV of Risks to be added to PPP reference model Risks Construction Cost Construction Overrun Phase Construction Time Operation Phase
NPV at Risk (INR Lakhs)
Financial Impact
Cost overrun of 15%
1582.1
0.0
Overrun
Time overrun of 50% of the Construction Period
1608.0
0.0
Revenue Shortfall
Decrease in revenue by 15%
1146.4
0.0
Opex risk
Increase in O&M Cost by 15%
1783.7
0.0
NPV of all retained Risks to be added back to base PPP Reference model
7.4.4.3
NPV of Risk to be retained by DoT (INR Lakhs)
0.0
Risk-adjusted PPP Reference and Statement of Value for Money Indicator
INR Lakhs
NPV of cash flows to Government (PPP Reference)
178.3
NPV of retained risks to be added back to PPP reference
0.0
Risk Adjusted PPP Reference (A) NPV of cash flows to Government (Base PSC Model)
178.3 2008.2
NPV of Transferred risks to be added back to base PSC model Risk Adjusted PSC (B)
(-) 1912.6 95.6
Value for Money (A-B)
82.7
PRELIMINARY FEASIBILITY STUDY
45