Title front - Sindh Board Of Investment, Government Of Sindh

Public-Private Partnership FrameworkIn line with the global trend and particularly in line with its development objectives, Government ofSindh took a bold initiative of setting up a Public Private Partnership Unit in Finance Department tolaunch the projects of extreme socio-economic significance in PPP mode. In particular, the PPP Unitwas established to achieve following objectives:• Promoting social development and inclusive economic growth through development ofinfrastructure.• Ensuring sustainable long-term funding for infrastructure development through mobilization ofprivate investments.• Ensuring technical, economic and financial viability of infrastructure projects through adequateproject preparation.• Improving the efficiency of management, operation and maintenance of infrastructure facilitiesthrough introduction of modern technology and management techniques.• Achieving a larger scope and better quality of infrastructure services for end users through theadditional financial and human resources mobilized from the private sector.• Ensuring financial sustainability of infrastructure services through full cost recovery supplementedby viability gap funding (VGF), if necessary, and• Protecting the best interests of all stakeholders including end users, the Government and theprivate sector.Regulatory FrameworkTo ensure that the projects to be developed in PPP mode are properly scrutinized and approved, ahigh- powered PPP Policy Board under the chairmanship of Chief Minister has been establishedwhich is also represented by various public and private sector members. All the projects undertakenby PPP Unit, on recommendations of various Government agencies, are approved by the PPP PolicyBoard, to the point of execution of the project.Legal FrameworkTo provide a firm legal framework, the Public Private Partnership law has been enacted. The PPP lawis based on an inter-country comparison incorporating international best practices, and is consistentwith the other components of the enabling PPP framework. Apart from specifying the various sectorsand PPP modalities covered, the law outlines the institutional arrangements for PPPs, specifies thegovernment agencies acting as the public sector partners, assigns the responsibility for PPP projectidentification and preparation, stipulates the rules, procedure and responsibility for the selection ofthe private sector partners, lists the main terms and conditions of PPP agreements, outlines the typesof government support, and defines the cost recovery and risk sharing principles.Financial SupportTo enable departmental PPP Nodes to undertake feasibility study and related project preparationProject Development Fund has been created. Furthermore, to support the execution of projects ofsocio-economic significance, which the government agencies would otherwise either not initiate orbe able to complete, Viability Gap Fund has been created. Both of these funds will encourage theagencies/departments to pursue the government’s objectives regarding PPPs.