Airport Express Metro Line: Infrastructure Project Financing and Implementation Through Public Private Partnership

The case describes the delivery of an urban public transportation project through a public private partnership (PPP). Delhi Metro Rail Corporation (DMRC) was a corporate body created by the Government of India and the Government of National Capital Territory of Delhi (NCT Delhi) for implementing a mass rapid transit system (MRTS) in Delhi. Dr. E. Sreedharan was appointed the managing director of the corporation. DMRC successfully completed phase-I of the MRTS in 2006. The government further mandated DMRC to implement phase-II of the MRTS project. The Japanese Bank of International Cooperation (JBIC) provided soft loans for both phases of the project, which were being implemented and commissioned through conventional engineering and procurement contracts (EPC). Meanwhile, the city of Delhi got the mandate to host the XIX Commonwealth Games 2010. As part of the preparations for these games, linking New Delhi Railway Station with Indira Gandhi International (IGI) Airport with a metro system - Airport Express Metro Link (AEML) - became necessary for easing the traffic congestion in the city. The time line available for the AEML project was less than three years. At the same time, JBIC financial help was not available for this project. Dr. Sreedharan was thus facing the challenges of project financing and its timely delivery. In the recent past in India, the public private partnership (PPP) model of infrastructure development had emerged as a dominant model due to its certain desirable characteristics. The case discusses various options available to DMRC for project financing and timely completion of the AEML project under PPP mode.

• Corporate strategy
• Financing
• Infrastructure and urban development
• International business
• Project finance