Pakistan : Promoting Sustainable Public-Private Partnerships Program (Subprogram 1)

Sovereign Project | 55183-001

The proposed program aims to support the Government of Pakistan's efforts to improve the enabling environment for infrastructure financing and public-private partnerships (PPP) at the federal level. In doing so, the government hopes to attract private finance for infrastructure investments in priority sectors such as roads, housing, health, education, water and sanitation, aviation and technologyall high priorities in the government's 3-year Public Sector Development Programme Plus (PSDP+). The program is also aligned with the pillars of Pakistan Vision 2025, which provides the foundation to fast-track Pakistan's transformation into one of the top 10 economies in the world by 2047, its first centenary. The Vision document states that 'publicprivate partnerships will be promoted through a comprehensive policy regime. The enhanced private sector participation would be used for better infrastructure development and improving connectivity to facilitate private sector growth .

Project Details

  • Project Officer
    Masood, Sana
    Central and West Asia Department
    Request for information
  • Country/Economy
    Pakistan
  • Sector
    • Public sector management
Project Name Promoting Sustainable Public-Private Partnerships Program (Subprogram 1)
Project Number 55183-001
Country / Economy Pakistan
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Promoting Sustainable Public-Private Partnerships Program (Subprogram 1)
Ordinary capital resources US$ 250.00 million
Operational Priorities OP2: Accelerating progress in gender equality
OP6: Strengthening governance and institutional capacity
Sector / Subsector

Public sector management / Public expenditure and fiscal management

Gender Effective gender mainstreaming
Description

The proposed program aims to support the Government of Pakistan's efforts to improve the enabling environment for infrastructure financing and public-private partnerships (PPP) at the federal level. In doing so, the government hopes to attract private finance for infrastructure investments in priority sectors such as roads, housing, health, education, water and sanitation, aviation and technologyall high priorities in the government's 3-year Public Sector Development Programme Plus (PSDP+). The program is also aligned with the pillars of Pakistan Vision 2025, which provides the foundation to fast-track Pakistan's transformation into one of the top 10 economies in the world by 2047, its first centenary. The Vision document states that 'publicprivate partnerships will be promoted through a comprehensive policy regime. The enhanced private sector participation would be used for better infrastructure development and improving connectivity to facilitate private sector growth . The program builds on ongoing Asian Development Bank (ADB) technical assistance (TA), as well as extensive experience in PPP development at the provincial level to support the government's efforts to improve the policy, legal and institutional framework for PPPs at the federal level. The program contains actions and initiatives in support of the following reforms: (i) strengthening the legal, regulatory, and institutional environment; (ii) strengthening national and sectoral infrastructure planning and project preparation; and (iii) strengthening multiyear assessment of fiscal risks. The proposed program is aligned to the priorities of ADB's Strategy 2030, particularly the strengthening governance and institutional capacity operational priority, as well as the country partnership strategy for Pakistan, 20212025.

The program was requested by the Government of Pakistan as a policy-based lending modality to be disbursed over two subprograms. The PBL will facilitate the design and implementation of reforms that are necessary to create an enabling environment for PPPs. The programmatic approach will serve to chronologically sequence the reforms in a multiyear framework (2022-2024) and bring flexibility to incorporate changes as warranted by the country's economic situation.

Project Rationale and Linkage to Country/Regional Strategy Pakistan, the world's fifth-most populous nation, is a lower-middle-income country with gross national income per capita of $1,270 in 2020. The poverty rate fell from 50.4% in 2006 to 24.3% (about 48 million people) in 2015. Another 19.9% (about 20 million people) are near-poor and vulnerable to shocks that could pull them below the poverty line. The country's multidimensional poverty headcount ratio is estimated at 39.0%, with the greatest contribution to poverty stemming from educational deprivation (42.8%), living standards (31.5%), and health care (25.7%). The rural poverty head count ratio of 30.7% is more than double the urban ratio of 12.5%
Impact
Outcome
Outputs
Geographical Location Nation-wide
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
Responsible ADB Officer Masood, Sana
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, CWRD
Executing Agencies
Ministry of Finance
Timetable
Concept Clearance 17 Aug 2022
Fact Finding 08 Jul 2022 to 20 Jul 2022
MRM 18 Jan 2024
Approval -
Last Review Mission -
Last PDS Update 17 Aug 2022

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