Pakistan: Private Participation in Infrastructure Program I

Sovereign Project | 36155-013

Summary

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.

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Project Name Private Participation in Infrastructure Program I
Project Number 36155-013
Country Pakistan
Project Status Closed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2270-PAK: Private Participation in Infrastructure Program I
Ordinary capital resources US$ 400.00 million
TA 4861-PAK: Supporting the Private Participation in Infrastructure Program
Japan Special Fund US$ 1.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Finance - Infrastructure finance and investment funds
Gender Equity and Mainstreaming
Description

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).

Project Rationale and Linkage to Country/Regional Strategy

Infrastructure development is a key pillar of the Government s MTDF in recognition of its importance for sustaining economic growth and alleviating poverty. The MTDF acknowledges the necessity of PPI in infrastructure and utilities from the point of view of capital mobilization, but also in terms of ensuring efficiency and effectiveness. The Government is committed to promote PPI by addressing remaining political, legal, regulatory, and institutional contraints to PPI in priority sectors. Further, under the MTDF, the Government has approved specific development programs for the power, transport, and water sectors, which detail investment needs and include project pipelines for private (and public) investment.

Recognizing that the Government is aiming for substantial increases in medium-term growth rates supported by infrastructure development, ADB s Country Strategy and Program Update 2006-2008 for Pakistan placed a renewed emphasis on infrastructure development encompassing a series of interventions in the sub-sectors of energy, transport, and communication, irrigation and water resource development, and urban development and renewal.

Impact

1. Support sustainable economic growth

2. Reduce the fiscal burden on the Government by promoting private sector participation in infrastructure (PPI) investment and maintenance

Project Outcome
Description of Outcome

1. Increased PPI investment and maintenance

2. Economic and development benefits to be derived from PPI projects in the power, transport, and water

and other communal services subsectors .

3. Power: to deliver more reliable and affordable electricity nationwide and enhance the operational efficiency of the subsector.

4. Transport: to establish an efficient and well-integrated transport system with improved quality of

services, reduced costs, and assured safety

5. Water: to resolve the shortage of water and ensure reliable drinking water supplies and sanitation.

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. PPI Policy Task Force facilitates policy development

2. Comprehensive policy and regulatory framework for PPI established

3. Investor protection enhanced

4. Greater participation by private investors in the power subsector.

5. Policy, legal, regulatory, and institutional framework for PPI in the transport subsector established.

6. Opportunities for PPI in the port and railway subsectors generated.

7. PPI policy and an institutional framework for private participation in communal services developed.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Islamic Republic of Pakistan
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Not required
Procurement The loan proceeds will be used to finance the foreign exchange cost of items produced and procured in ADB member countries, other than the items specified in the negative list of ineligible items and imports financed by other bilateral and multilateral sources.
Responsible ADB Officer William Graham Settle
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of FinanceEconomic Affairs Div.
Rm. 308 Block "C" Secretariat Bldg
Islamabad, Pakistan
Ministry of Economic Affairs and StatisticsRoom 316, Block C
Secretariat Building
Islamabad, Pakistan
Ministry of FinanceMuhammad Iqbal Hussaininv@isb.comsats.net.pkIslamabad
Timetable
Concept Clearance 30 Jun 2005
Fact Finding 23 Nov 2005 to 07 Dec 2005
MRM 01 Mar 2006
Approval 31 Oct 2006
Last Review Mission -
PDS Creation Date 29 Jun 2006
Last PDS Update 27 Oct 2010

Loan 2270-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Oct 2006 23 Nov 2006 19 Dec 2006 30 Jun 2010 - 28 Jun 2010
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 400.00 Cumulative Contract Awards
ADB 400.00 31 Oct 2006 400.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 31 Oct 2006 400.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Partly satisfactory Satisfactory - - - -

TA 4861-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Oct 2006 29 Dec 2006 29 Dec 2006 31 Oct 2009 30 Sep 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 320,000.00 0.00 0.00 0.00 1,320,000.00 31 Oct 2006 286,018.62
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Partly satisfactory Satisfactory - - - -

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Pakistan: Private Participation in Infrastructure Program Validations of Project Completion Reports Dec 2013

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