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CASE STUDIES

Title
PUBLIC-PRIVATE PARTNERSHIP - IN ALL SPHERES OF URBAN GOVERNANCE, AHMEDABAD

Sector
Financing,Transport

Summary
Role of cities world over have changed as a result of the major forces of globalisation. The concept that local bodies have to provide all infrastructure facilities is fast changing and they are taking the role of enabler bringing in private sector participation in infrastructure development.
The purpose has been to create a new role for the city where a range of stakeholders, especially the poor and weak among them, have a direct and positive role to play in improving the city life.
Such urban partnerships are based on the following basic principles:
- Mutuality of interest
- Commitment towards the city
- Team work
- Political support from the elected municipal councilors
- Support from industries and social institutions
The Ahmedabad Municipal Corporation has been able to develop parks, gardens, places of recreation, health and sanitation of urban slums with the help of private sector without any investment of their own.

Location
Ahmedabad, the commercial capital of Gujarat, is the largest city of the state and the sixth largest city in India with a population of 3.5 million (Census 2001). The city is situated on the banks of river Sabarmati and is 35 km. away from Gandhinagar, the capital of Gujarat

Situation
The local bodies are now taking up the role of enabler bringing in private sector participation in infrastructure development. The AMC taking advantage of this success in financial management and consequent improvement of city infrastructure took initiative to rope in industry, NGO etc., and built innovative partnerships in a wide range of local government functions like provision of urban basic services to the poor, construction of roads, parks, etc.

Lead
Ahmedabad Municipal Corporation (AMC)

Strategy
The concept of partnership emerged from the thought that if the approach of creating partnerships is put forward to improve civic services, it may receive a good response as the investor would be in a position to re-cook his investment with interest over a period of years of continuing partnership.
In case of slums it was felt the slum dwellers do have the capacity to pay something and they can contribute towards the cost of laying infrastructure if they are made partners in the project and involve in the process of transformation. This will change their status of beneficiary to a partner and they would better care of the investment made.

Process
The AMC initiated public-private partnership aimed at improving the streets and parks of Ahmedabad. The CG Road which is the prime business and commercial street of Ahmedabad has been redeveloped with AMC's partnership with the Arvind Mills Ltd.
Similarly development and maintenance of parks and gardens were persuaded to leading industrialists and individuals and were offered right to recover cost through advertisements on a hoarding provided to them on important roads. Developers of traffic island were allowed to put their nameplate of small size to display their participation.
The slum networking project at Sanjaynagar was done by four partners viz. The community; The Arvind Mills Ltd.; SAATH (an NGO) and the AMC. SEWA Bank and HUDCO extended financial support. The slums could transform into livable area with the active participation of slum dwellers. Health and sanitation substantially improved with the slums.

Financing
Both from Ahmedabad Municipal Corporation and Private Sector

Lessons
Local Bodies can develop the parks, gardens and places of recreation with the help of private sector without any investment of their own. The urban slum problems can be tackled with the active participation of slum dwellers.

Contact
Ms. Manvita Baradi

Designation
Director Programs

Organisation
City Managers' Association
Address: Ahmedabad Municipal Corporation, West Zone
Usmanpura
City: Ahmedabad
State: Gujarat
Pin: 380013
Phone: 91-79-7551595, 75518
Fax: 91-79-7551163
Email:
Web: