KARACHI: Caretaker Sindh Chief Minister former Justice Maqbool Baqar presiding over the 42nd PPP Policy Board approved outsourcing four resorts - Keenjher Lake Resort, Haleji Lake Resort, Hawksbay Resort and Ranikot Guesthouse.
The CM directed the PPP unit to rehabilitate these facilities, explore their true potential, as well as, provide quality entertainment and recreational options under PPP mode.
The meeting was attended by provincial caretaker ministers, Mubeen Jumani, Ishwar Lal, Arshad Wali Mohammad, Chief Secretary Dr Fakhre Alam, Chairman P&D Shakil Mangnejo, SMBR Zahid Abbasi, VC NED Dr Sarosh Lodhi, Asif Brohi, CEO Sindh Economic Zone Azeem Uqaili and others.
DG PPP Unit Asad Zamin gave a detailed briefing to the chief minister on the PPP framework, including legal, institutional, and regulatory setups. The Board appreciated the accomplishments and awards of PPP projects.
Some of the major projects were also briefed upon including the Ghotki-Kandhkot Bridge and Road project, Malir Expressway project, M9-N5 Link Road project, Water Karachi Recycling Water project, 5MDG Desalination project, and NED Technology Park project.
The board discussed and decided the agenda of different projects as follows:
Nabisar to Vajihar Water Supply Project: The project aims at supplying 45 cusecs of treated water to IPPs at Thar Block II through a 65km pipeline and storage capacity of 45 days. This is the first project of its kind in a PPP mode for a water delivery mechanism.
The Board was apprised of the provincial cabinet’s approval regarding the injection of Rs 4.6 billion in the project by way of equity/ sub-debt to help achieve the financial close of the project. The Board acknowledged the Cabinet’s decision and appreciated the achievement of the financial close of this project.
Feasibility for Motor Vehicle Inspection Project: The project shall address the long pending issue of inadequate inspection facilities for vehicles in Karachi. The private party shall establish 32 state-of-the-art vehicle inspection centres catering to light and heavy vehicles with robust enforcement mechanisms. The project is financially sustainable through user fees; therefore, the government will not provide any financial support to this project.
The Board was given a detailed presentation on the salient features of the proposed project. It was further discussed that such kind of a project was much needed in the province as it would not only address the problem of vehicle condition but also the environment-related issues in the province.
The Board; therefore, directed to hire transaction advisors to carry out a detailed feasibility study to develop the project for bidding.
Marble City Project: The project envisages the development of a dedicated state-of-the-art facility for setting up marble and allied industries which shall not only save the foreign exchange but also contribute towards the overall economy of the country by way of creating job opportunities, and exportable goods, and bring in foreign investment
The Board was apprised of the background of the project along with the bidding process conducted earlier and its outcome. To attract more completion, the Board was presented with two revised project structures for the Board’s consideration and decision.
The first structure was based on conducting the bidding process based on revenue sharing with the provincial government with demand risk being parked with private parties, which had a way of increasing the prices of the plots. The second option was based on conducting the bidding based on the development cost of the project with the demand risk being parked with the Sindh govt. Considering that the objective of the government is to attract serious industrialists to set up the marble industry and not the revenue generation, the Board approved the second structure and emphasized that international competitive bidding may be conducted to ensure wider competition.
Outsourcing Resorts of Sindh Tourism Development Corporation: The project is about outsourcing four resorts, Keenjher Lake Resort, Haleji Lake Resort, Hawksbay Resort and Ranikot Guesthouse under PPP mode to rehabilitate these facilities, explore their true potential, as well as, provide quality entertainment and recreational options. The project will promote tourism in Sindh which will also contribute to the economy of the country.
The Board was apprised that engaging a private partner for this project would not only help improve/ rehabilitate the existing infrastructure but would also address the issue of their operation and maintenance. The Board appreciated the concept and approved the hiring of transaction advisors to conduct detailed feasibility to develop and outsource the project by way of a competitive bidding process.
Copyright Business Recorder, 2023
Comments
Comments are closed.