A look at Public Private Partnership Authority (P3A) Engineering Post Report

Public Private Partnership Authority (P3A) has been established by the  federal government in order to facilitate and assist the federal implementation agencies in developing , structuring and procuring  their infrastructure projects on Public Private Partnership  modalities and to regulate the federal PPP transactions.

Official sources concerned on being contacted said that through P3A (Amendment) Act, 2021., the P3A introduced establishment  of Public Private Partnership Working Party (the P3AP) and Risk Management Unit. Two dedicated funds, Viability Gap Fund (VGF)  and Project Development  Facility  will facilitate the implementing agencies  for grant of VGF and funding  support  for  preparing commercially  viable and bankable feasibility studies.

The project preparation, appraisal, procurement and approvals have also been systematized by introducing the concepts of (a) Project Concept Proposal, (b) Project Qualification Proposal and (c) Project Proposal. The P3A Amendment Act has mandated the P3AWP to assess, consider and approve the PCP and PQP. The Project requires approval of P3A Board.

P3A Act 2017 also provides for receipt of fee from the successful private party at the time of financial close. The total accumulative fee  that has been accrued to P3A comes to Rs 871 million which will be paid  by the private party  after the financial close. This provision has been incorporated in all bidding documents including the P3 Agreements, the sources said. 

P3A is actively pursuing to engage the federal  and provincial  state-owned  entities, to provide  them the financial and legal services for their infrastructure projects for  a fee.

The benefit of such  an endeavor would be two-fold: first being  the implementing  agencies  would be developing  P3  projects under the direct advisory  supervision of P3A and secondly, P3A  would be building  capacity of the implementing agencies  starting from  initial screening, appraisal, preparation, procurement up to the implementation of a project. On this account, P3A  is engaged with the Province of Balochistan and Gilgit-Baltistan  to help, advise and capacitate them  for undertaking their various initiatives  under P3 modality, the sources added.