Page 20 - TrafficInfratech Magazine Feb - Mar 2020

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investors (Brookfield, CPPIB, Fairfax, been established very successfully in IRB-Autostrade and Roadis-NIIF.
CDPQ and PSPIB) have invested the country. The success of this bid showcases
about $20 billion in India focussing The maiden project to be executed the maturity and attractiveness of
on National Highways, Airports, Real under this model was the recycling Indian infrastructure.
Estate and logistics assets. To date, of operational roads of the National Various more asset classes are
these investors in aggregate control Highways Authority of India. NHAI now emerging in the country. India
over 1000 kms of National Highway identified nine of its operational recently privatized six of its airports
concessions, one airport, multiple tolling roads and bundled them as well where the bid parameter
logistics assets and a significant together, giving away the right was revenue share per passenger
chunk of commercial real estate in to toll them for thirty years along with the Authorities. All institutional
the country. All these funds have with responsibility to operate and investors with presence in India;
directly or indirectly established maintain the roads, to a private international airport operators
their presence in India and with party. The Authority spent over a and domestic conglomerates bid
dedicated teams which are growing year in creating the right model and for these six airports. Domestic
very fast. sensitizing investors, both domestic giant, Adani, who owns ports and
To further give impetus to and international. The creation of logistics parks in the country won all
private investments in the county, an efficient model which minimizes six bids, which showcases its bullish
the Government has established risks being taken by the private party approach towards the domestic
a new asset class in the country – and transparency in information aviation industry.
recycling of infrastructure assets. sharing led to bringing significant Similarly, India is undertaking a
‘Asset recycling’ as a concept refers value to the Government. Australian massive exercise to privatize its city
to monetization of existing assets Fund manager, Macquarie won the gas distribution. In this endeavour,
that are operational and revenue bid for these assets at a quote price India has brought 70 percent of
generating. Monetization requires of $1.5 billion as against the base its population under the city gas
the private concessionaire to pay a price set at $1billion by NHAI. The network wherein 228 cities have
lump sum amount upfront to the project received bids from three been bid out to private parties for
Authority against the right to collect other international and domestic setting up compressed gas pumps
revenue from the asset for the term institutional investors including and domestic PNG (piped natural
of the concession. This model has Canadian fund manager Brookfield, gas) connections. Institutional

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