Ministry of Planning
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Federal Minister for Planning, Development & Special Initiatives Profe...

Govt may make law by May to provide legal framework to PPPA

Dated : 1 March 2021

To end the policy fragmentation and to provide legal framework to the Public Private Partnership Authority (PPPA) the government is likely to bring an act of parliament by May.

“The PPPA has the potential to bring billions of rupees investment within next three to four years,” Chief Executive Officer PPPA Malik Ahmad Khan told The Nation. Within 12 to 18 months dozens of projects would be in the execution stage, he said.

Besides, he said, they were trying to get Rs30 to 40 billion from ADB for Viability Gap Fund (VGF) which would be used to help investors to make the projects viable.

Previously there was no legal cover for the PPPA, and that was the reason that the PPPA was lacking legal framework, however all the requisite rules and regulations had been prepared by the authority which would be enacted shortly by the government through an act of parliament, Malik Ahmad Khan said.
“A lot of private investors are ready to embark upon the government initiatives of PPPA but they are waiting for the legal framework as no one is ready to take risk and start investment without proper legal cover,” he added. Public Private Partnership Authority (PPPA) had around 200 projects which were being presented to various investors, he said.

When asked that why the government had decided to start execution of public sector projects though PPPA, he said that due to mismanagement of the public sector the execution of PSDP funded projects were being delayed for decades. “Delay not only increases the cost but also kills the purpose as some projects require urgent completion,” he added.

The National Assembly had already passed Public Private Partnership Authority (P3A) Bill 2020. Once passed by the Senate the Bill would be converted into an Act paving the way for conducive investment environment.
Malik Ahmad said that the Authority had a risk management, facilitation and financial advisory role for Federal Public Private Partnership projects and not a regulatory or executing/implementation role. PPPA would provide sovereign guarantee and also the revenue guarantee if required by a private investor, he maintained. He said that currently the PPPA had Rs500 million initial funding which would be used to carry out the feasibility of the projects. Besides, he said, they were trying to get Rs30 to 40 billion from ADB for Viability Gap Fund which would be used to help investors to make the projects viable.

He said that besides infrastructure projects they were also working to run the airports through Public Private Partnership. For the purpose the Civil Aviation Authority rules would be amended, he informed. “CAA will be bifurcated into two bodies one related to regulations and the other pertaining to management of the airports. For better performance it is necessary that the regulations should be done by the CAA while management of the airports should be outsourced,” he added.
It is worth to mention here that the Executive Committee of the Board of Public Private Partnership Authority (PPPA) on Tuesday accorded approval to the project for upgradation/revamping of Pakistan post logistics business on PPP mode.

“P3 Authority is currently managing 51 PSDP Plus portfolio projects. Feasibility studies of 9 projects have been completed, while for another 9 projects, these are underway,” he said.

Public Private Partnership Authority has also identified 16 projects including Sukkur Hyderabad Motorway, Sialkot Kharian Motorway, 500-Bed Teaching and Research Hospital, Thar Coal Block II Rail connectivity project etc which are ready for execution.

He said that Karachi Circular Railway was the most viable municipal project in the entire country. He said that several investors including the Chinese had shown interest in the project.