Engineering Post Report
Public Private Partnership Authority (P3A) was notified on June 8, 2018 under the provisions of P3A Act 2017 (as amended). P3A is a fully functional authority spearheading the initiative of the Federal Government in the domain of Public Private Partnerships (PPP).
The P3A Act devised a three-tier regulatory and approval process. Accordingly, all project concept, proposals and project qualification are referred to the Public Private Partnership Working Party (P3WP) with the recommendations of P3A. After approval by P3WP, the implementing agencies become eligible to initiate the procurement process and selection of the successful bidder. After negotiations, the Implementing Agency prepares a project proposal and submits it to P3A.
After submission of the project proposal to the Risk Management Unit for assessment and evaluation of the fiscal exposure of the Federal Government with respect to a given project. After clearance from the Risk Management Unit, the Project Proposal is submitted to the Board of P3A for final approval. Thereafter, the Implementing Agency is entitled to close the project commercially.
The approval process is defined in the regulations without any ambiguity . In compliance with the defined regulatory approval process ,P3A has been able to approve three mega infrastructure projects during the financial year 2022-23.
P3A is also providing implementing agencies financial assistance to conduct the commercial feasibility studies of the approved projects in accordance with the Project Development Facility Regulations 2022.
P3A may also be providing viability gap funding to eligible infrastructure projects for making such projects commercially viable provided the given project falls l under the criteria outlined in the proposed Viability Gap Funding
As for P3A performance was concerned during the last financial year 2022-23, it has finalized four development projects under its approved modality.
National Highway Authority (NHA) is the implementing agency for Sukkur-Hyderabad Motorway Project (M-6) at an estimated cost of Rs307.00 billion. All approvals are granted and obtained by P3A from its Board including Central Development Working Party (CDWP) and Executive Committee of National Economic Council (ECNEC) approvals. Procurement process has since been completed, the private party selected and the PPP agreement executed.
NHA is the implementing agency also of the Sialkot-Kharian Motorway Project at an estimated cost of Rs 27.00 billion . All formalities and approvals have already been granted, PPP agreement executed and financial close was likely to be achieved any time by now.
NHA was also the implementing agency for Kharian-Rawalpindi Motorway project at a cost of Rs 86 billion.. It has been approved by P3A Board, the procurement process has been completed, private party selected as well as the PPP agreement executed while Financial Close was to be achieved by Concessionaire.
And, Pakistan Railways (PR) is the implementing agency for Karachi Circular Railway (KCR) at an estimated cost of Rs 217.00 billion. Its feasibility report is being finalized and the project is being undertaken for implementation under the framework of CPEC. The above projects were duly approved by P3WP and the Board of P3A which also facilitated the Implementing Agencies for the grant of the Viability Gap Fund (VGF) from the Federal Government.