The Finance Ministry is making efforts to obtain Cabinet's approval, in principle, for 'Public-Private Partnership Bill, 2007' aimed at raising funds for mega projects, including dams, official sources told Business Recorder here on Monday.
They said that the idea of 'Public-Private Partnership' (PPP) has been encouraged by the donors--World Bank and Asian Development Bank (ADB)--and now a bill to provide it legal and constitutional cover is being submitted for getting Cabinet's approval, in principle.
The government would provide financial assistance for projects, provided any such financial assistance shall be in the purview of the 'Fiscal Responsibility and Debt Limitation Act, 2005'.
Sources said that the government would prescribe the process for planning, procurement, implementation and monitoring of the projects, and prepare guidelines, standard documents and agreements for adoption by the institution implementing the projects, and hold consultations with the stakeholders.
According to the draft of the proposed law, the federal government would prepare guidelines, standard documents and agreements for adoption by the institutions implementing these projects and hold consultations with all the stakeholders.
The government would provide technical assistance to institutions for proposing and identifying public-private partnerships implementation, preparation of requests for proposals, assistance in conducting competitive tenders for projects, evaluation of bids and negotiations with the bidders and professional support for negotiations, award and implementation agreements.
The federal government may delegate its function under sub-clauses (c), (d) and (e) of sub-section (2) to the infrastructure project development facility. The contents of a feasibility study conducted for a project will, amongst others as may be prescribed, would address the financial and technical viability of a project where applicable, the justification for financial assistance.
Value for money and affordability of the project by the end users would be the responsibility of the institution. Sources said that the projects would be awarded on 'International Competitive Bidding' (ICB), and the institution would enter into direct agreements with the lenders, and pay compensation for early termination of, and in the manner stated in the public-private partnership agreements. The Finance Ministry may, by notification in the official gazette, add or remove an institution from the approved institutions.
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