The Abbasi-led government had decided to establish Public Private Partnership Authority (PPPA) which would assess fiscal stakes, identify, develop and procure projects, well informed sources told Business Recorder.
The Public Private Partnership Authority (PPPA) Act 2017 envisages establishment of an authority with the objective of setting up a regulatory framework aimed at executing public private partnership in the country so as to promote domestic and foreign private investment in infrastructure. Minister for Planning, Development and Reforms and Secretary Finance will be Chairman and Vice Chairman of the Authority respectively.
The Authority will ensure that projects are consistent with national and sectoral strategies. The Authority will also ensure value for money by conducting an analysis to evaluate projects. A Public Private Partnership (PPP) arrangement yields value for money if it results in a net positive gain to society. It will adhere to the principle of budget affordability in the context of medium term budgetary framework.
The Authority was to assess fiscal stakes and facilitate the implementing agency to identify, develop structure and procure the project. It would standardize the contractual provisions and develop the sector specific provisions of the model public private partnership agreements; as well as develop annuity, user-based and hybrid financial models for the projects and ensure that PPP agreement is consistent with the provisions of this Act.
As per section 3 (1) of the PPPA Act 2017, the Authority will take such measures and exercise such powers as may be necessary for promoting the concept and methods of public private partnership. The Authority will have a board of directors comprising both public sector and private sector members as well as co-opted members.
As soon as it deems appropriate after commencement of the Act, the federal government, will establish PPPA for carrying out the purposes and objectives of the Act.
The Authority will be an independent corporate body having perpetual succession and common seal, subject to the provisions of this Act, to acquire and hold property, both moveable and immoveable, and shall by its name sue and be sued.
The headquarters of the Authority will be at Islamabad and it may establish its offices at such other place or places as it may consider appropriate. Notwithstanding anything contained in the Companies Ordinance, 1984 (XLVII of 1984) any other law for the time being in force, on the date of commencement of this Act, the company shall cease to exist. All assets, rights, powers, authorities and privileges and all property, moveable and immovable, cash and bank balance, reserve funds, investments and all other interest and rights, in, or arising out of, such property and all debts, liabilities and obligations or whatever kind of the company subsisting immediately before the commencement of this Act, shall stand transferred to and vest the Authority.
The sources said, all contract entered into or rights acquired and all matters and things engaged to be done, with or for the company before the commencement of this Act shall be deemed to have been incurred, entered into, acquired or engaged to be done by, with or for the Authority, as the case may be.
All suits and other legal proceedings instituted by or against the company before the commencement of this Act, shall be deemed to be suits and proceedings by or against the Authority as the case may be and may proceed and be dealt with accordingly.
All employees of the company shall be deemed to be employees of the Authority on not less favourable than the existing terms and conditions of the service, rights and privileges and other matters as were applicable to them before the conversion.
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