The Government of Pakistan (GOP) aims to sustain a high economic growth. A major constraint to further growth in Pakistan is the shortage of viable and facilitating infrastructure. In consolidating our growth trend the role of private sector investment is vital for the development of an efficient and well integrated transport system that will facilitate a competitive economy and poverty reduction. The GOP is very rightly trying to put the road infrastructure commensurate with requirement of the country as well as the region. It is undoubtedly the most critical activity at present moment and the country needs to get equipped with the upgraded road infrastructure in the next five to seven years.
The GOP has set an ambitious road development portfolio and fiscal budget allocations alone would be sufficient to meet almost 50% of the set target demands, the rest has to come from Off-Budget Financing through Public Private Partnership (PPP).
The National Highway Authority (NHA), under the NHA Act 1991 is responsible for managing the design, development and operation of 11,000 kilometers long network of national highways and motorways. NHA is empowered, under NHA Act, to initiate, operate and award projects through private sector financing.The PPP is becoming an essential component of NHA’s development strategy. In pursuance to this, NHA took various initiatives including:
Establishment of Private Sector Cell in NHA for providing one-window operation for PPP projects.
Development of PPP Policy and Legal Framework.
Development of SOPs for handling PPP projects at all stages.
Standardization of documents, i.e. Pre-qualification criterion, Request for Proposals including Evaluation Criteria and Concession Agreement.
Identification of number of projects to be executed under PPP basis