Quetta: Balochistan has tremendous potential for economic growth and socio-economic development. The Government of Balochistan (GoB) is committed to realize this potential and put the province on the path of sustainable development. The private sector has a critical role to play in pursuit of the aforementioned goal, especially with regards to creation, maintenance and operation of public infrastructure and facilities.
In order to encourage, facilitate, and regulate the engagement of the private sector infrastructure, service delivery and public interest projects, the GoB has enacted a new business-friendly legal and regulatory framework. After an extensive process of consultations with the concerned departments and experts at the provincial and national level, the GoB has developed and approved the first-ever Balochistan Public-Private Partnership (PPP) Policy 2021 and passed a legislation which has been notified as the Balochistan Public-Private Partnership Act 2021 (Act).
The technical work on the development of the new PPP framework was led by the Strategic Planning and Reforms Cell (SPRC) of the Planning and Development Department of GoB. Moreover, financial support for the development of the framework was provided from the Multi-Donor Trust Fund (MDTF), which is administered by the World Bank and executed through the Governance and Policy Project.
The new PPP framework entails the provision of administrative, financial and in-kind support to private parties for the implementation of a project on PPP mode in the province. Notable measures of support include the establishment of a ‘Viability Gap Fund’, right to use government land or infrastructure, expedited provision of utilities, exemption from provincial taxes and provision of provincial guarantees in case of big projects. The framework also provides a mechanism for resolution of disputes as per the legal framework in Pakistan. Lastly, the GoB has allowed private parties to initiate, prepare and submit proposals for review and implementation under PPP mode, known as ‘unsolicited proposals’.
Hafiz Abdul Basit, ACS (Dev), P and DD, welcomed the guests to the PPP Policy launch event. Elaborating on the Provincial PPP framework, he informed that the initiative would drive the collaboration of all the stakeholders and address the key areas necessary to enhance private sector participation.
Hafiz Abdul Basit appreciated the support of all partners.
Dr. Noor Muhammad, MD – PPP Unit, Mr. Rafiullah Kakar, Director – SPRC, and Mr. Faraz A. Syed, Financial Advisor – SPRC, briefed and apprised participants about the various aspects of the business-friendly Provincial PPP Framework. They elaborated that the PPP Framework is designed in a way to safeguard the rights of the investors and allows for balanced partnership on long-term basis with identified risk-sharing mechanism. Various forms of Government support and facilitation offered to the private sector were also discussed which can lead to driving greater efficiency for the private sector.
The Keynote Speakers, Khalid Sheikh, MD – PPP Unit, Sindh, and Mr. Amjad Ali, CEO, PPPA, Punjab, reiterated the importance of engaging the private sector under PPP initiatives and the success stories created in their provinces under PPP mode in multiple sectors including education, healthcare, energy, Special Economic Zones, roads and communication, and other areas.
The Chief Guest, Zahoor Ahmed Buledi, hoped that the enactment of a new business-friendly PPP framework will help encourage and enhance private sector participation and investment in the province. He emphasized that there were significant investment opportunities for the private sector in Balochistan including mines, sea-salt extraction, fisheries, organic farming, renewable energy, livestock framing and processing. Besides, there were opportunities for the private sector to improve service delivery in social sectors such as health and education. The Honorable Minister thanked the participants for gracing the event with a hope of firm collaboration with all the stakeholders for PPP projects.
The PPP Policy launch event was the first step towards gathering all the stakeholders. The event was attended by leading advisory firms, notable financial institutions, legal fraternity, and prominent local and national business groups.