Govt Moves to Merge Privatization and Public-Private Partnership Bodies

In practice, the administration has proposed merging Pakistan's Privatisation Commission and Public-Private Partnership Authority (P3A) into a single body.

Key points

• The bill, introduced in the National Assembly, will create the Privatisation and Public-Private Partnership Commission (PPPPC).
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• Existing contracts signed by the P3A would transfer to the new commission, without disadvantage to the private parties, according to the bill.
• For the public, the proposed changes could affect how infrastructure and service projects are approved, funded and monitored.
• The administration states bringing the functions under one institution would reduce duplication and create transactions more efficient.

Meanwhile, the bill, introduced in the National Assembly, will create the Privatisation and Public-Private Partnership Commission (PPPPC). It seeks to amend the Privatization Commission Ordinance 2000 and repeal the Public-Private Partnership Authority Act 2017, dissolving the existing P3A.

For the public, the proposed changes could affect how infrastructure and service projects are approved, funded and monitored. The new commission could advise on and assess public-private partnership (PPP) projects, support structure transactions, and monitor their progress.

Meanwhile, the administration states bringing the functions under one institution would reduce duplication and create transactions more efficient. The incumbent Privatization Commission chairman, Muhammad Ali, would lead the proposed commission, and its board would have a private-sector majority, including at least two women. Members would have fixed terms, with stated grounds for disqualification and removal. Public funds could meet administration obligations.

For context, the commission would administer four funds: the privatisation fund, public contribution fund, viability gap fund and PPP project development fund. The bill proposes that these funds could receive funds from the federal budget, international lenders, investment income and other sources. They would be non-lapsable, meaning unspent amounts would not automatically expire at the end of a financial year.

In practice, the public contribution fund could be applied to meet administration obligations connected with PPP projects. These may include acquiring land, handing over project sites and providing rights of way.

Meanwhile, the bill additionally proposes a federal pipeline for PPP projects, an approval process, a risk management unit and committees to oversee project transactions. Administration agencies could be directed to provide complete details of existing, planned and proposed projects within 15 days, including projects not formally identified as PPPs. Contracts to be created public; immunity provisions included.

Under the proposal, PPP agreements between public and private parties would be public documents, and interested individuals could request copies, subject to applicable laws. The administration, commission and relevant agencies would not be liable for private-party claims over risks that were not specified in an agreement.

For context, the draft additionally provides legal and investigation immunity to current and former chairmen, secretaries, board members, office-holders and consultants for actions or omissions carried out in good faith and in a personal capacity. It further commits public funds to contest cases brought against them under these provisions.

If enacted, staff and consultants of the P3A would be retained by the new commission for up to six months or until their contracts expire, whichever comes first, on terms no less favourable than those they at present have. Stay Connected with ProPakistani.

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In short, govt Moves to Merge Privatization and Public is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.