By Hasaan Khawar
The provincial assembly has finally passed the Punjab Public-Private Partnership for Infrastructure Act 2010. The law presents the details of the PPP institutional framework as well as project procurement process and contract structure. The law mandates all the government agencies to publicly disclose all PPP-related documents, which is a good step towards achieving transparency. Schedule I of the law presents the sectors/areas, where the law would be applicable and this schedule can be amended through a notification.
Approval of PPP law is undoubtedly a good step towards promoting PPPs in Punjab however, the key challenge would now be to develop a portfolio of PPP projects and seeking investment for them. More importantly, the government would also need to introduce some special-purpose financing vehicles to channel investment in these areas, where commercial bank would shy from venturing in.