Home Projects Project Data Sheet
|Loan Name||Private Participation in Infrastructure Program I|
|Project Number||36155- 01|
|Source of Funding/Amount[Closed]||
Private Sector Development
The Private Participation in Infrastructure and Program (PPIP) aims to enhance economic growth through improved infrastructure services. The outcome will be enhanced private sector participation in infrastructure investment and maintenance to reduce the Government's fiscal burden and provide better infrastructure services to the population and enterprises. To achieve these objectives, Subprogram ! will (i) strengthen the enabling environment for PPI by addressing remaining policy, legal, regulatory, and institutional constraints to PPI and (ii) provide technical and financial support for PPI projects.
The PPIP is a cluster program that will consist of Subprogram 1 and Subprogram 2 (the design of which will depend on the outcome of Subprogram 1 and the Government's emerging priorities). A TA grant will support implementation of Subprogram 1 and capacity building initiatives required to support the Government's PPI initiatives over the medium-and long-term.
By promoting PPI, the operation will help the Government to leverage more financial resources into infrastructure by using the private sector as an intermediary. This will help to fill the gap between (i) the infrastructure the Government can afford and (ii) the infrastructure needed for economic development and poverty reduction, as articulated under the Government's Medium Term Development Framework (MTDF).
|Outcome||Progress Toward Outcome|
|The Program's outcome will be enhanced private sector participation in infrastructure and utility investment and maintenance to reduce the Government's fiscal burden and provide better infrastructure services to the population and to enterprises.||
1. Increased PPI investment and maintenance.
It is too early to discern the Program impact on this outcome, yet the Program remains relevant to Government efforts to mobilize private sector resources for the development of infrastructure and utilities, and recent initiatives of overall debt reduction and fiscal consolidation policies. Pakistan?s experience has shown that clear policy statements in combination with well-prepared contractual arrangements are frequently sufficient for involving the private sector in infrastructure and utilities.
2. Economic and development benefits to be derived from PPI projects in the power, transport, and water and other commual services subsectors.
Although public-private partnership (PPP) is not a recent concept in Pakistan, most parts of government and the private sector are largely unfamiliar with the arrangement and its benefits. At the government policy and planning levels, PPP structures are fragmented and at the sector level only power and telecommunications have a well developed PPP framework with highways and ports experiencing some, albeit important, progress at the project level.
|Outputs||Status of Implementation Progress (Outputs, Activities and Issues)|
- PPI Policy Task Force facilitates policy development
- Comprehensive policy and regulatory framework for PPI established
- Investor protection enhanced
- Greater participation by private investors in the power subsector
- Policy, legal, regulatory, and institutional framework for PPI in the transport subsector established
- Opportunities for PPI in the port and railway subsectors generated
- PPI policy and an institutional framework for private participation in communal services developed
The first tranche in the amount of $200 million was released in December 2007.
As of April 2010, for the second tranche, of the 11 core conditions, 9 indicate compliance and 2 indicate pending compliance. Of the 21 monitorable indicators, 11 indicate compliance, 7 indicate partial compliance, and 3 indicate that work is ongoing. The target release of the $200 million second tranche is in May 2010, after all tranche release conditions are satisfied.
|Geographical Location||Islamic Republic of Pakistan|
|Stakeholder Communication, Participation and Consultation|
|During Project Design||Recognizing that the Government is aiming for substantial increases in medium-term growth rates supported by infrastructure development, ADB placed a renewed emphasis on infrastructure development.|
|During Project Implementation||The Government has established a Program Implementation Unit in MOF to coordinate Program Implementation.|
|Responsible ADB Officer||
William Graham Settle
|Responsible ADB Department||
Central and West Asia Department
|Responsible ADB Division|
|Concept Clearance||30 Jun 2005|
|Fact-finding||23 Nov 2005 to 07 Dec 2005|
|Appraisal||03 Jul 2006 to 12 Jul 2006|
|Board Approval||31 Oct 2006|
© 2008 Asian Development Bank
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