A look at Public Private Partnership Authority working and performance

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  

regulations 2023.

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.