Key Takeaways
- The government has proposed merging the Privatisation Commission and Public-Private Partnership Authority into a single commission.
- The new Privatisation and Public-Private Partnership Commission will oversee state asset sales and PPP projects.
- The bill seeks to amend the Privatisation Commission Ordinance 2000 and repeal the Public-Private Partnership Authority Act 2017.
The government has proposed merging the Privatisation Commission and Public-Private Partnership Authority (P3A) into a single body, the Privatisation and Public-Private Partnership Commission (PPPPC), to streamline the oversight of state asset sales and private-sector projects involving public services and infrastructure.
The bill, introduced in the National Assembly, aims to create a unified institution that will oversee the sale or transfer of state assets and PPP projects, reducing duplication and enhancing efficiency.
Muhammad Ali, the incumbent Privatisation Commission chairman, will lead the proposed commission, with a board that includes a private-sector majority, including at least two women.
The new commission will administer four funds: the privatisation fund, public contribution fund, viability gap fund, and PPP project development fund. These funds will receive money from the federal budget, international lenders, investment income, and other sources, and will be non-lapsable.
Public contribution funds can be used to meet government obligations related to PPP projects, such as acquiring land and providing rights of way.
The bill proposes a federal pipeline for PPP projects, an approval process, and a risk management unit to oversee project transactions. Government agencies must provide complete details of existing, planned, and proposed projects within 15 days.
PPP agreements will be public documents, and interested parties can request copies, subject to applicable laws. The government, commission, and relevant agencies will not be liable for private-party claims over risks not specified in agreements.
Existing contracts signed by the P3A will transfer to the new commission without disadvantage to private parties. The draft also provides legal and investigation immunity to current and former chairmen, secretaries, board members, officials, and consultants for actions or omissions carried out in good faith.
Public funds will be committed to contest cases brought against them under these provisions. Staff and consultants of the P3A will be retained by the new commission for up to six months or until their contracts expire, on terms no less favourable than those they currently have.
