49128-002: Enhancing Public-Private Partnerships in Punjab | Asian Development Bank

Pakistan: Enhancing Public-Private Partnerships in Punjab

Sovereign (Public) Project | 49128-002 Status: Proposed

The proposed project will augment project development facility (PDF) resources to support line departments to engage the assistance of transaction advisors. A significant component of the project will be used to fund a dedicated viability gap fund (VGF) window which will be managed by the Risk Management Unit.

The project impact is aligned with growth in private sector investments and overall employment in Punjab. The project will have the following outcome: more sustainable and fiscally responsible public-private partnership (PPP) projects that offer value for money (VFM). The outputs are (i) PDF and VGF resources for PPP projects augmented, and (ii) PPP institutional structure and capacity enhanced and strengthened.

Project Details

Project Officer
Torres, Adrian Central and West Asia Department Request for information
Country
  • Pakistan
Modality
  • Grant
  • Loan
  • Technical Assistance
Sector
  • Finance
 
Project Name Enhancing Public-Private Partnerships in Punjab
Project Number 49128-002
Country Pakistan
Project Status Proposed
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Loan: Enhancing Public-Private Partnerships in Punjab
Ordinary capital resources US$ 100.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Finance / Infrastructure finance and investment funds

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The proposed project will augment project development facility (PDF) resources to support line departments to engage the assistance of transaction advisors. A significant component of the project will be used to fund a dedicated viability gap fund (VGF) window which will be managed by the Risk Management Unit.

The project impact is aligned with growth in private sector investments and overall employment in Punjab. The project will have the following outcome: more sustainable and fiscally responsible public-private partnership (PPP) projects that offer value for money (VFM). The outputs are (i) PDF and VGF resources for PPP projects augmented, and (ii) PPP institutional structure and capacity enhanced and strengthened.

Project Rationale and Linkage to Country/Regional Strategy

To attain its growth objectives, the Government of Punjab (GOPb) has identified key drivers of change including upgrading its infrastructure, revival of private sector investment, and quality provision of social services. Its available budget resources, however, fall short to fund much needed public infrastructure and public service investments. To bridge the financing gap and address the province's infrastructure deficit, GOPb has established legal and institutional framework to facilitate the structuring, approval and implementation of PPPs. A PDF to support the use of transaction advisory services and a VGF for the public financing portion of PPPs were also established. However, the absence of skills and resources of key decision making bodies pose the risk that approved PPP projects are not well structured and offer limited or no VFM which may expose GOPb to significant contingent liabilities, operational, and fiscal risks.

The institutional structure and capacity in Punjab for PPPs need to be enhanced and improved through (i) proper identification and structuring of eligible PPP projects that offer VFM, (ii) a sound policy that guides the use of public resources (like the VGF), and (iii) strong risk management policies and systems identify and mitigate potential project and fiscal related risks emanating from PPP supported projects.

Impact Private sector investments and overall employment in Punjab increased.
Outcome Sustainable and fiscally responsible PPP projects that offer VFM increased.
Outputs

PDF and VGF resources for PPP projects augmented.

PPP institutional capacity enhanced and strengthened.

Geographical Location
Safeguard Categories
Environment FI
Involuntary Resettlement FI
Indigenous Peoples FI
Summary of Environmental and Social Aspects
Environmental Aspects The projects requiring VGF support may include projects that are category A for environment. The Risk Management Unit in the Finance Department will need to establish an environment and social management system (ESMS), acceptable to ADB, that fully incorporates the Safeguard Requirements (SR) (SR 1-3 including information disclosure and consultation) of ADB's Safeguard Policy Statement 2009 (SPS). 2009.
Involuntary Resettlement The due diligence indicates that public infrastructure PPP projects to be considered for VGF support will include construction of roads, housing and environment management schemes which may involve varying magnitude of land acquisition and resettlement (LAR) impacts. Land acquisition in the road and environment management projects is expected to be of significant scale. The number of displaced persons and the quantity of assets to be affected will be known after the PPP Nodes undertake social impacts assessment. An Environment and Social Management System (ESMS) will be established to screen all subprojects ensuring that the subprojects involving LAR impacts meet and comply with the requirements of ADB's Safeguard Policy Statement 2009 (SPS). The ESMS will incorporate (i) environment and social policies; (ii) screening, categorization and review procedure; (iii) organizational structure and staffing including skills and competencies in environment and social areas; (iv) training requirements; and (v) monitoring and reporting.
Indigenous Peoples Punjab does not have the presence of any Indigenous Peoples (as SPS describes them to be) in and around the areas of proposed PPP projects. People of Punjab also do not recognize themselves as IPs. Nevertheless, presences of any IP groups and any impacts on such groups will be further assessed in the field as the time of impact assessment.
Stakeholder Communication, Participation, and Consultation
During Project Design GOPb Planning and Development Department, Finance Department, sector departments with PPP portfolios, commercial banks and other private sector entities are the main stakeholders. The project incorporates the findings of and agreements reached during extensive consultations with the stakeholders.
During Project Implementation The consultation will continue during project implementation. The project will use and build on the tested consultative approach that was previously and successfully implemented for PPPs in Punjab, including the use of resources from the attached transaction technical assistance project to engage in consultations with all stakeholders.
Business Opportunities
Consulting Services The TA will require 334.5 person-months of national consulting services with the following expertise: (i) project finance specialist, (ii) project finance lawyer, (iii) environmental specialist, (iv) social safeguards specialist, (v) social and gender specialist, and (v) procurement specialist. The consultants will be engaged by ADB in accordance with the Guidelines on the Use of Consultants (2013, as amended from time to time). The consultants will be hired using individual consultant selection. Lump sum payments and output-based contracts will be considered for consulting services under the TA. The consultants will procure works and goods in relation to trainings and seminars in their respective fields. The consultants will prepare regular progress reports during implementation, and will report to the executing and implementing agencies and ADB.
Procurement The executing agency and the implementing agency will not be directly involved in implementing the physical delivery of approved PPP projects. The relevant line departments will procure the PPP projects and will legally enter in to the respective concession agreements with the selected private sector concessionaires.
Responsible ADB Officer Torres, Adrian
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Planning & Dev. Dept., Govt. of the Punjab
G.P.O. Box 92
Bahawalpur, Pakistan
Timetable
Concept Clearance 28 Apr 2017
Fact Finding 10 May 2017 to 17 May 2017
MRM 16 Oct 2017
Approval -
Last Review Mission -
Last PDS Update 12 May 2017

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.