Critical Success Factors in Implementation of Urban Metro System on PPP: A Case Study of Hyderabad Metro

Abstract

Rail-based metro system is crucial for supporting a city’s expansion and growth. However, urban metro projects being capital intensive with long gestation and pay back periods may not be financially viable but socially desirable. More and more cities in India are announcing metro projects committing huge budgetary resources to these projects at the cost of sectors such as health and education. Given the huge requirement of capital and possibility of attracting willing as well as capable private investors to undertake urban transport projects, promoting public–private partnerships (PPPs) could be a key priority. However, none of the metro projects launched during past 7 years in India have been planned on PPP framework. International experience in PPP metro and our own Delhi airport metro experience have demonstrated that many issues can influence the successful implementation of PPPs in such projects. In this context, outcome of Hyderabad metro is keenly watched as it is one of the largest metro rail projects built under a PPP framework anywhere in the world. The paper reviews the research conducted on critical success factors (CSFs) that are necessary for adopting PPP models in urban metros in Indian context. Eighteen CSFs identified through literature survey have been validated in a pilot study through structured questionnaire and grouped in seven macro-factors through hierarchical cluster analysis. A case study has been attempted using SAP–LAP framework to analyse the identified CSFs in real-life settings of the first two stages of Hyderabad metro project. Key players working on the project were interviewed during a field study to gather feedback on actions they took on factors critical to success. Observations and findings have been synthesised as learnings for future such projects.