Key Takeaways
- The government has proposed a bill to merge the Public-Private Partnership Authority and Privatisation Commission into a single entity.
- The new commission will provide immunity to current and former officials from legal actions in good faith.
- The bill aims to streamline privatisation and public-private partnership processes.
The government has introduced a bill in the National Assembly to establish a new Privatisation and Public-Private Partnership Commission (PPPPC) by merging the existing Public-Private Partnership Authority (P3A) and Privatisation Commission. This move is aimed at preventing duplication of institutional functions and processes.
The proposed legislation seeks to amend both the Privatisation Commission Ordinance 2000 and the Public Private Partnership Authority Act 2017. It provides legal and investigation immunity to the current and all former chairmen, secretaries, board members, officials, and consultants from any act of omission or commission in good faith and in personal capacity.
The new commission will be led by the incumbent chairman, Muhammad Ali, and will comprise a majority of members from the private sector, including two women directors. It will administer four public funds: the privatisation fund, public contributory fund, viability gap fund, and PPP project development funds.
The government claims that the current frameworks, the PC Ordinance and the P3A Act, were concerned with mobilising private sector capital and expertise in relation to public assets, infrastructure, and services. However, their separate existence entailed duplication of institutional functions and processes, necessitating a single institutional framework.
The bill provides for the reconstitution of the board with a majority of independent members, including members with public-private partnership experience and at least two women. It also sets fixed terms of office and clear grounds for disqualification and removal.
The proposed commission will have the power to advise on, appraise, structure, facilitate, and monitor public-private partnership projects. It will also establish the viability gap fund, the PPP project development facility, and the public contribution fund.
The draft law claims to provide a comprehensive legal framework for public-private partnerships, including the contractual framework for PPP agreements, a federal PPP pipeline, the approval process, the risk management unit, and PPP transaction execution committees.
The bill also empowers the commission to utilise the public contribution fund to meet any government obligations with respect to PPP projects, including land acquisition, site handover, right of way, and any other enabling actions required in connection with the project.
