policy for public-private partnerships in ….pdfVIP

Government of Punjab Planning Development Department POLICY FOR PUBLIC-PRIVATE PARTNERSHIPS IN INFRASTRUCTURE November 2010 FOREWORD This document presents the public-private partnership (PPP) policy of the Government of Punjab to seek private sector investments for infrastructure projects. Punjab, with its population of more than 90 million people, has always been on the forefront of national economic growth, as evident from its 60% contribution to the GDP compared to 55% share in the country’s total population. Punjab’s economic growth rate has often surpassed the rate for national economic growth. To sustain this economic growth, the Government needs to develop infrastructure at an adequate pace, including roads, water supply schemes, transport network and power plants. Although in recent years the public sector investments in infrastructure have been on the rise, the investments needs of the province far surpass the Government’s resources. To bridge this infrastructure financing gap, the Government intends to seek private investment through the PPP approach. Such a strategy will not only provide opportunities for the private sector to grow and flourish in partnership with the Government but will also create fiscal space for the Government to allocate scarce resources to other developmental needs. The efficiency gains from private sector involvement in infrastructure projects are likely to further strengthen this partnership, thereby creating a win-win situation for both sides. The Government however recognizes that private investments can only be sought under a sound and comprehensive framework tha