"PPP" means a partnership between the public sector represented by a Government Agency and a private party for the provision of a public infrastructure facility or service with a clear allocation of risks between the parties.
Why is PPP needed in Punjab?
There is a close correlation between infrastructure spending and economic growth. If infrastructure investments are not kept at the required level of at least 6% of gross domestic product, economic growth becomes constrained by power shortages, traffic congestion, high transport costs, and other infrastructure bottlenecks.
The investment 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. In order to develop these facilities at a rapid pace despite limited public sector resources, it is critical to forge an effective and strong partnership with the private sector, promoting investment by domestic and international investors in Punjab’s infrastructure sectors.
Who is the competent authority to approve/reject projects in PPP mode?
PPP P&M Board, established by the Government of the Punjab through notification, is the competent authority to approve, reject or send back for reconsideration the PPP project proposals submitted by PPPPA/ Government Agencies.
What is PPP Cell?
The PPP Cell has been established in the P&D Board to act as Secretariat of the PPP P&M Board to perform its functions mentioned under Section 7(3) of Punjab PPP Act, 2019. The PPP Cell is headed by Member (PPP), P&D Board.
Public-Private Partnership (PPP) is one of the most effective vehicle to enhance private sector participation in public services delivery, increase growth, and create jobs leading to reduction of poverty. The PPPs help in attracting private capital investment, increasing efficiency through the profit motivation of the private sector, and helping reform the selected sectors through the reallocation of roles and risks.