Strengthening Public Private Partnerships (PPP) in Khyber Pakhtunkhwa

PARTNERING FOR PROGRESS: SUPPORTING PUBLIC-PRIVATE PARTNERSHIPS

OVERVIEW

SEED is supporting PPPs in KP to encourage higher private sector participation and investment in infrastructure. To that end, SEED’s strategy is to provide comprehensive technical assistance to GoKP to develop a PPP roadmap and streamline processes:

Devise the required legal framework of PPP framework
Establish institutions to implement PPPs
Develop a pipeline of PPP projects
Capacity building for PPPs

Once the required set of documents and institutions is completed, it will support the on-ground implementation of the projects.

PROGRESS

TECHNICAL ASSISTANCE FOR DEVISING AND IMPLEMENTING THE REQUIRED LEGAL PUBLIC PRIVATE PARTNERSHIP (PPP) FRAMEWORK

SEED supported the development of Public Private Partnership (Constitution & Functions, Selection of Private Partner, and Viability Gap Fund) Rules under the PPP Act 2020. The promulgation of rules has strengthened the legal framework in Khyber Pakhtunkhwa. It shall be paramount to usher in private investments, develop public infrastructure and dispense public services.
Moreover, SEED supported Project Development Facility Guidelines for establishing, managing, and disbursing monetary assistance for feasibility studies, hiring transaction advisors and building capacity for Public Private Partnerships.

A meeting was held, chaired by the Additional Chief Secretary, P&DD KP, Shahab Ali Shah, with InfraCoAsia, Enertech and SEED to discuss findings of the pre-feasibility of Green Hydrogen and progress made on Sustainable Development City projects.

The Government of Khyber Pakhtunkhwa issued Letters of Intent (LOIs) to EnerTech Holding, a State-Owned Entity of Kuwait, during a ceremony held at the Chief Minister House, Peshawar.

ESTABLISH INSTITUTIONS TO IMPLEMENT PPPS

SEED played an instrumental role in establishing institutions envisaged in the Khyber Pakhtunkhwa Public Private Partnership Act 2020 and made the PPP regime functional.
We supported notification of various bodies responsible for performing multiple functions to approve and award PPP projects. Moreover, SEED supported the conception and notification of a Project Development Facility (PDF) Committee for approving monetary assistance for purposes prescribed under the Act. SEED also helped the GoKP in establishing VGF and PDF facilities. Both the facilities are now functional with the allocation of Rs. 5 billion and Rs. 500 million, respectively.

Additionally, SEED has advocated and supported the notification of a Sub-Committee under the PPP Act 2020 to approve projects worth less than Rs. 5 billion.
Multiple meetings of the PPP Committee have been held so far, and under the PPP Act, various projects from Infrastructure, Tourism, Health and Industries sectors are at different stages of the implementation cycle.

A progress review meeting was held, chaired by the Additional Chief Secretary, P&DD KP, Shahab Ali Shah, with EnerTech Holding Co. and SEED to discuss findings of the pre-feasibility of Green Hydrogen and progress made on Sustainable Development City projects.

DEVELOPING A PIPELINE OF PPP PROJECTS

Through SEED’s support, more than 50 projects have been reflected in the Annual Development Program of the Government of Khyber Pakhtunkhwa for the year 2022/23. The said projects pertain to sectors including but not limited to Health, Roads, Education, Mines & Minerals, Industries, Agriculture and Energy & Power. The Government is being assisted in rolling out the following projects that are expected to yield significant socio-economic benefits:

Swat Expressway-II
Integrated Tourism Zone at Ganool
Integrated Tourism Zone at Mankiyal

Below are some more PPP projects assisted by SEED:

Daraban Economic Zone
Trucking Terminals in Merged Areas
Greenfield Tertiary Care Hospital in Bannu
Greenfield Tertiary Care Hospital in Peshawar
Greenfield Tertiary Care Hospital in Malakand
Greenfield Tertiary Care Hospital in Mansehra
Yarik to Bannu Link Road
Ski Resort at Boyun Kalam
Peshawar DI Khan Motorway
Kumrat Madaklasht Cable Car

Two personnel have been hired by SEED in the PPP Unit at P&D Department as embedded support.

CAPACITY BUILDING
SEED drafted two technical briefs on:

How to do PPP in the Government
Environmental and Social Management System Guideline

Taking account of the constraints faced by the Government in terms of human resources, SEED supported the hiring of the following experts:

Two personnel in the PPP Unit at Planning and Development Department, KP, as embedded support.
An international expert has been engaged to vet documents prepared to support the PPP regime