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Metro Projects
The table. 1 shows the metro rail forecast and actual ridership differences and Project cost overrun comparison with Europe and North America metro system.( Flyvbjerg, 2007).
|
|
Ridership |
Project Cost |
|
Project( Country) |
No. of projects( N) |
Quartiles Average Quartiles
Standard difference( 25 / 50 / 75 %) deviation(%)
( 25 / 50 / 75 %)
|
Average difference(%) |
Standard deviation |
India( 2016) 5-49 /-88 /-93-58.56 39.34 33 / 51 / 70 30.21 25.18
Europe( 2007)
North America( 2007)
6-29 /-4 / 45 20.7 77.3 39 / 45 / 57 43.3 21.3
10-69 /-63 /-53-60 17 33 / 42 / 54 35.8 30.4
Table 1 Metro rail ridership and Project cost comparison
Application of Principal-Agent Model on Metro rail project
The second section of the research is checking Hypothesis that correlation of Central and State government for Metro rail selection mechanisms is fundamentally a Principal-agent problem. It is expected that all elements associated with the model, namely conflicting objectives, moral hazards, adverse selection( Wenling, 2006) are applicable to the metro rail decision-making process. Due to limitation of words, only one metro system is briefly explained below;
Case of Delhi
The Delhi administrative structure is quite complex, earlier
1993 it was UT, after it became the state, with the limited power. The land is subject to centre.
Whereas the implementation of plan and proposal of any infrastructure liable by the Delhi Government.
The Delhi metro rail corporation is Special Purpose Vehicle( SPV), which were introduced by Central government for implementation of metro rail project. The DMRC is central ruled agency; the decision of metro rail implementation is conduct by DMRC itself.
The controversy here is that DDA is development authority and DMRC is metro authority. During the decision-making process, DMRC had taken stand alone decision.
How the Delhi Metro rail came into being
• Conflicting Objective
Absence of coordination and conflict suggestion were observed between DMRC and DDA for the Metro route selection process. Master plan was not referred by DMRC( in first Phase of Metro). www. railanalysis. com