PUNJAB PUBLIC PRIVATE PARTNERSHIP ACT 2025

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THE PUNJAB PUBLIC PRIVATE PARTNERSHIP ACT 2025 
(XVII of 2025) 
CONTENTS 
1. Short title, extent, applicability and commencement 
2.  Definitions 
3. Authority  
4. Composition of the Authority 
5. Meetings of the Authority 
6. Functions of the Authority 
7. Chief Executive Officer 
8. Appointment of officers and staff of the Authority 
9. Appointment by transfer 
10. Constitution of PPP Working Parties 
11. Risk Management Unit 
12. Functions of an Implementing Agency 
13. Transparency, efficiency and economy 
14. Publication of annual business plan 
15. Powers to approve a Project 
16. Project support  
17. Unsolicited Proposal 
18. Transfer of rights 
19. No compensation for risks not covered 
20. Renegotiation of PPP Contracts 
21. Restriction on funding PPP Project through alternate means 
22. Compliance with environmental standards  
23. Allocation of budget 
24. Authority Fund 
25. Viability Gap Fund  
26. Project Development Facility 
27. Budget and accounts 
28. Audit 
29. Power to exempt from taxation  
30. Power to make rules  
31. Power to frame regulations 
32. Advisory and consulting services 
33. Selection of Private Partners, Transaction Advisors, consultants and 
experts 
34. Conflict of interest 
35. Dispute resolution  
36. Termination of PPP Contract 
37. Land acquisition 
38. Powers to eject unauthorized occupants 
39. Recovery of costs, dues and fees 
40. Reward by the Authority 
41. Obligation to produce documents and provide information 
42. Power to require information from the Private Partner 
43. Transparency and public disclosure 
44. Public servants 
45. Immunity of the Authority and its employees 
46. Prior consent of the Authority with respect to certain legal actions 
47. Overriding effect 
48. Removal of difficulties 
49. Repeal and savings 
 
  
TEXT 
1
THE PUNJAB PUBLIC PRIVATE PARTNERSHIP ACT 2025 
(XVII of 2025) 
[24th March, 2025] 
An 
Act 
to provide for promotion of Public Private Partnerships in Punjab. 
It is necessary to encourage the participation of private sector in the projects of public 
importance and create an enabling environment for public private partnership in the 
province and the matters connected therewith or ancillary thereto.  
Be it enacted by Provincial Assembly of the Punjab as follows: 
CHAPTER I 
PRELIMINARY 
1. Short title, extent , applicability and commencement .– (1) This Act may be 
cited as the Punjab Public Private Partnership Act 2025. 
(2) It extends to whole of the Punjab.  
(3) It shall apply to all projects developed and implemented through Public 
Private Partnership in Province of the Punjab.  
(4) It shall come into force at once. 
2.  Definitions.– In the Act:  
(a) “Act” means the Punjab Public Private Partnership Act 2025; 
(b) “Administrative Department ” means an Administrative Department as 
defined in the Punjab Government Rules of Business 2011; 
(c) “Authority” means the Punjab Public Private Partner ship Authority 
established under the Act; 
(d) “Authority Fund” means the Punjab Public Private Partnership Authority 
Fund established under the Act; 
(e) “bid” means a  bid, tender or an offer, in response to an invitation, by a 
person, consultant, firm, company, consortium or an organization 
expressing his or its willingness  to undertake a specified task  and shall 
include all requisite parts thereof, including the technical  proposal and 
financial bid; 
(f) “Bidder” means a person  who submits a bid for a contract  in accordance 
with the Act and rules made thereunder; 
(g) “Bidding Documents” include  all such invitations, advertisements, 
Expression of Interest Documents, Pre -Qualification Documents, Request 
for Proposal Documents, and other such documents by whatever name 
they are called including forms, transaction structures, requi rements, 
conditions, specifications, addenda, instructions, criteria, options, draft 
contracts which are necessary to invite bids for selection of a Transaction 
Advisor, Consultant or a Private Partner for a PPP project; 
                                                           
1This Act was passed by Provincial Assembly of the Punjab on 14 March 2025; and was assented to by Governor of the Punjab on 21 
March 2025; and was published in the Punjab Gazette (Extraordinary), dated: 24 March 2025, pp. 3601-3617. 
(h) “Chief Executive Officer” means the Chief Executive Officer of the Authority 
appointed under the Act; 
(i) “company” means a company registered under the Compan ies Act, 2017 
(XIX of 2017) or any other relevant law for the time being in force; 
(j) “concession” means grant of such reasonable rights to the Private Partner 
over a public property by the  Government, Government Agency, Authority 
or the  Implementing Agency  or assignment of such functions  as are 
required for undertaking the PPP project and performance of services in 
accordance with the PPP Contract under the Act; 
(k) “Consortium” means an association of persons who have entered into a 
legally enforceable contractual arrangement for purposes of entering into a 
PPP Contract and have a lead member who has an authority to conduct all 
business for and on behalf of any and all the members of the Consortium 
and where all the members of the Consortium are jointly and severally 
liable to the Implementing Agency for the performance of the PPP Contract; 
(l) “construction” includes construction, reconstruction, rehabilitation, 
renovation, improvement, expansion, addition, alteration, and other related 
activities; 
(m) “contingent liability ” means a potential obligation that may be incurred 
depending on the outcome of a future event related to a PPP Project; 
(n) “cure period” means such period as is allowed in the PPP Contract to either 
party to take remedial measures to rectify its default of the contractual 
obligations upon notice from the other party; 
(o) “Government” means Government of the Punjab; 
(p) “Implementing Agency”  means an Administrative Department or an 
attached department of the Government, a local Government, o r an 
authority, a body corporate, statutory body, or a corporation wholly or 
majorly owned or controlled by the Government responsible to implement a 
project under the Act; 
(q) “inflation indexing ” means the adjustment of costs and prices to 
compensate for the inflationary impact in accordance with the PPP 
Contract; 
(r) “interest rate indexing ” means the adjustment of costs and prices to 
compensate for the  impact due to change in  interest rate in accordance 
with the PPP Contract; 
(s) “investment” includes development and pre -operative capital expenditures 
made or incurred on services, land, construction and equipment; 
(t) “lender” means a financial institution as defined in the Financial Institutions 
(Recovery of Finances) Ordinance, 2001 (XLVI of 2001) or an 
establishment providing loan or financial support to the Private Partner for 
the implementation of a PPP project with or without security; 
(u) “local Government” means a local Government as defined in the Punjab 
Local Government Act 2022 (XXXIII of 2022) or any other law for the time 
being in force; 
(v) “Member” means a Member of the Authority; 
(w) “Parties” when referred collectively include the Implementing Agency and 
the Private Partner; 
(x) “person” includes a company, statutory body, entity, firm, association of 
persons, body of individuals, corporation, or a sole proprietor; 
(y) “PPP Contract ” means a contract between th e Government represented 
through an Implementing Agency and the Private Partner , whereby, the 
Private Partner agrees to undertake a project under the Act or provide such 
services or perform such tasks, as agreed  and shall include any other  
contracts subsidiary or incidental thereto; 
(z) “PPP Node” means a unit, having requisite technical, legal, financial, and 
such expertise as may be required ; established by an Administrative 
Department or an Implementing Agency, to perform such tasks pertaining 
to PPP Projects as may be required under the Act; 
(aa) “project” means a public project implemented on Public Private Partnership 
basis under the Act; 
(bb) “prescribed” means prescribed by the rules or regulations  made or framed 
under the Act;  
(cc) “Private Partner” means the Private Party selected to carry out the project 
under the Act; 
(dd) “Project Development Facility ” means the facility established by the 
Authority under the Act to finance the structuring of PPP projects  including 
the development of Project Proposals, engagement of  transaction advisors 
and consultants and other ancillary matters for PPP Projects; 
(ee) “Project Proposal” includes feasibilities, estimates,  reports, financial, 
economic and business models,  option analyses, technical specifications, 
drawings, surv eys, impact assessments, legal and regulatory framework 
and risk assessments, likely environmental, social and other impact 
assessments, data and data projections  or like reports by whatever name 
they are called , etc. required for assessing the viability, sustainability and 
suitability of a project to be implemented under the Act; 
(ff) “Public Private Partnership” means a contractual relationship  between the 
Implementing Agency and a Private Partner to undertake a project under 
the Act or provide such services or perform such tasks, as agreed  whereby 
the Private Partner: 
(i) performs part of an Implementing Agency’s functions on behalf of it;  
or  
(ii) assumes the responsible use of public property for a project; or 
(iii) assumes substantial financial, technical and operational risks in 
connection with performance of certain functions of the 
Implementing Agency or the responsible use of public property; or 
(iv) receives a benefit for performing the Implementing Agency’s 
functions or from utilizing the public property, either by way of: 
(a) consideration to be paid by the Implementing Agency from its 
budget or revenue; or 
(b) charges or fees to be collected by the Private Partner from 
users or customers of a service provided to them; or 
(c) a combination of such consideration and such charges or 
fees; 
(gg) “regulations” means the regulations framed under the Act; 
(hh) “risk” means any event or circumstance affecting  or likely to affect the 
project adversely in performance, costs and fulfillment of any contractual 
obligation related thereto including but not limited to design, construction, 
financing, operation or maintenance; 
(ii) “Risk Management”  means the process of identifying, assessing, and 
prioritizing risks followed by coordinated efforts to minimize, monitor, and 
control the probability and impact of risks; 
(jj) “rules” means the rules made under the Act; 
(kk) “Secretary” means Secretary of the Authority; 
(ll) “Standby Letter of Credit”  means the  legal instrument  guaranteeing 
payments to the Private Partner in accordance with the PPP Contract; 
(mm) “Transaction Advisor” means a person or association of persons appointed 
to provide technical, financial, and legal advisory services for the 
structuring of PPP Projects, development of Project Proposal, preparation 
of Bidding Documents and other ancillary matters; 
(nn) “Unsolicited Proposal” means a proposal for a PPP project that is initiated 
by a Private Party  without a formal request from the Government or a 
Government Agency; 
(oo) “Value for Money ” means the optimal combination of quality, cost, and 
efficiency to meet the project objectives; and 
(pp) “Viability Gap Fund” means the fund established by the Authority under the 
Act to support the Private Partner in undertaking the project including but 
not limited to  funds for covering revenue shortfalls by means of grants, 
subsidies, guarantees, or any other mode approved by the Authority. 
CHAPTER II 
INSTITUTIONAL ARRANGEMENTS 
3. Authority.– (1) There shall be an Authority to be known as the Punjab Public 
Private Partnership Authority for carrying out the purposes of the Act. 
(2) The Authority shall be  a body corporate having perpetual succession and 
common seal with power to enter into contracts, to acquire and hold property both 
movable and immovable, and shall, by its name, sue and be sued. 
(3) The headquarters of the Authority shall be at Lahore and i t may establish 
its offices at such other place or places as it may consider appropriate.  
4. Composition of the Authority.– (1) The Authority shall comprise the following:  
(a) Chief Minister, Punjab. Chairperson 
(b) Minister for Planning and Development or any 
other Minister nominated by the Chief Minister. 
Vice Chairperson 
(c) Chairman, Planning and Development Board or 
his nominee not below the rank of Additional 
Secretary. 
Member 
(d) Secretary to the Government, Finance 
Department or his nominee not below the rank 
of Additional Secretary.  
Member 
(e) Secretary to the Government, Law and 
Parliamentary Affairs Department or his 
nominee not below the rank of Additional 
Member 
 
Secretary. 
(f) Two members of Provincial Assembly of the 
Punjab, including one female member to be 
nominated by the Speaker, of the Assembly. 
 
Members 
(g) three experts from private sector such as from 
the field of public private partnership, finance, 
law, engineering or environment. 
Member 
(h) Chief Executive Officer. Member/Secretary 
(2) The Members at clause ( g) of sub -section (1)  shall be appointed by the 
Government for a period of two years  who may be eligible for re -appointment for one 
additional term and they shall: 
(a) have relevant educational qualification; 
(b) be of known integrity and repute; and  
(c) possess relevant experience. 
(3)  The Members at clause (g): 
(a) shall hold office during the pleasure of the Government;  
(b) may, on the directio n of the Government, continue to perform his functions 
even after expiry of his term till his successor is appointed;  
(c) may, at any time, resign from his office by a written noti ce addressed to the 
Chairperson; and 
(d) shall not be appointed for more than two consecutive terms. 
5. Meetings of the Authority .- (1) The Chairperson and, in his absence, the Vice 
Chairperson shall preside over a meeting of the Authority and in absence of both, the 
meeting shall be presided  over by a Member nominated for the purpose by the 
Chairperson. 
(2) The Authority shall meet once in every four months and otherwise as often 
as may be necessary for implementation of the provisions of the Act. 
(3) Five Members shall constitute the quorum for the meeting of the Authority. 
(4) The meeting of the Authority, where a Project Proposal or matters related 
to a project pertaining to a n Administrative D epartment, is being considered, shall be 
attended by the Secretary of such department of the Implementing Agency  or his 
representative not below the rank of Additional Secretary. 
(5) The Authority may co -opt any person as an expert in the relevant field, 
however, such co-opted person shall not has any right to vote. 
(6)  No act or proceeding of the Authority shall be invalid merely by 
reason of any vacancy or defect in the constitution of the Authority. 
(7) A meeting of the Authority may be called if:  
(a) required by the Chairperson or the Vice Chairperson; or 
(b) requisitioned by two-third Members of the Authority; or  
(c) approved by the Chairperson upon the request of the Secretary.   
(8) The agenda of a meeting shall be approved by the Chairperson. 
(9) In case of urgency, the Secretary may seek approval of a proposal through 
its circulation among the Members and in case no opinion is received from a Member 
within forty-eight hours of its circulation, it shall be considered that such Member has no 
objection to its approval.  
(10) The approvals granted through circulation shall be presented before the 
Authority in its next meeting occurring after the decision for information and ratification.  
6. Functions of the Authority.– (1) Subject to the Act, the Authority may take such 
measures, exercise such powers and perform such functions as may be necessary for 
the purposes of the Act. 
(2) Without prejudice to the generality of the powers conferred by sub -section 
(1), the Authority may: 
(a) advise the Government on policy matters pertaining to Public Private 
Partnership to create an enabling environment with regard thereto; 
(b) approve a Project for its implementation under the Act or pass such order s 
with regard thereto, as it may deem appropriate; 
(c) cause such technical, legal , financial, risk and  other appraisals, analyses, 
assessments and evaluations to be conducted for projects unde r the Act, 
as may be necessary; 
(d) prepare its annual budget; 
(e) make payments out of the Authority Fund in the prescribed manner; 
(f) approve Viability Gap Fund  and Proj ect Development Facility  for PPP  
projects and project concepts respectively, in the prescribed manner; 
(g) cause such appraisals and evaluations to be conducted as may be 
necessary to assess a Project Concept for its qualification to receive 
payments out of Project Development Facility; 
(h) cause such appraisals and evaluations to be conducted as  may be 
necessary to assess a P roject under the Act for its qualification to receive 
payments out of Viability Gap Fund and other project support; 
(i) authorize a n Implementing Agency  to enter into a PPP Contract with a 
Private Party, subject to the terms and conditions as it may approve; 
(j) subject to the PPP Contract, approve the transfer of an interest in a Project 
or part thereof under the Act, to a Private Partner or a nominee thereof by  
transfer, assignment, conveyance, lease, grant, licensing, authorization or 
otherwise; 
(k) require such reports to be prepared by Administrative Departments,  
Implementing Agenc ies, Transaction Advisors, Consultants and Private 
Partners, which are required for  monitoring and evaluatio n of the projects 
under the Act; 
(l) subject to the PPP Contract, approve to take over an interest in a Project or 
part thereof from the Private Partner  or a nominee thereof, by transfer, 
assignment, conveyance, lease, grant, surrender or otherwise; 
(m) approve regulations and guidelines for carrying out the purposes of the Act; 
(n) appoint such officers and delegate them such powers as may be necessary 
to achieve the purposes of the Act; 
(o) establish directorates, wings and offices and delegate t hem functions and 
powers as are necessary for the purposes of the Act; 
(p) assign such roles, responsibilities and tasks to Government Departments 
and their attached agencies as may be necessary, to ac hieve the 
objectives of the Act; 
(q) appoint Transaction Advisors, technical, professional and other experts, 
advisors, agents and consultants including but not limited to accountants, 
auditors, bankers, engineers, lawyers, valuators for the Authority and 
projects implemented, under the Act; 
(r) enter in to and perform such contracts with local and international 
organizations as may be necessary for carrying out the purposes of the 
Act; 
(s) levy, collect or cause to be collected tolls, tariffs, rents, user fees or any 
other charges on the use of the infrastructure developed under the Act; 
(t) impose such penalties on a Private Partner , Transaction Advisor or 
consultant as it deems appropriate on account of a breach or failure to fulfil 
his obligations under the contract; 
(u) define permissible uses of the infrastructure developed under the Act;  
(v) acquire or dispose of property or any interest in the property; 
(w) subject to the approval of the Government, raise finances for the projects 
implemented under the Act, through financial instruments including but not 
limited to Bonds, Suk uk, T -bills, Securities, Funds and establish 
Infrastructure Finance Company , if requir ed, subject to applicable laws, 
establish such other funds, trusts, schemes, companies or facilities  as are 
required for the purpose of carrying out the functions under the Act; 
(x) establish committees and delegate them such functions and powers as are 
necessary to achieve the objectives of the Act; 
(y) invest amounts out of the  Authority Fund, the Viability Gap Fund and the 
Project Development Facility; and 
(z) perform such other functions as may be conferred on it under th e Act, the 
rules made thereunder and any other law for the time being in force. 
7. Chief Executive Officer .– (1) The Government may appoint a person having 
such qualifications, experience and other requirements, as may be determined by the 
Authority, as the Chief Executive Officer of the Authority on such terms and conditions as 
the Authority may determine.  
(2) The Chief Executive Officer shall: 
(a) be responsible for implementation of the decisions of the Authority; 
(b) exercise such powers and perform such functions as the Authority may 
assign or delegate to him; 
(c) be the principal accounting officer of the Authority; 
(d) be the head of the management and office of the Authority; 
(e) be responsible for operations and administration of the Authority; and 
(f) has such powers pertaining to matters of appointment, transfer, promotion, 
dismissal of staff; budget making, finances, development, technical and 
other matters affecting the business of the Authority as may be prescribed 
or as may be delegated to him by the Authority. 
(3) Notwithstanding the provisions of sub -section (1),  Government may post, 
by transfer, a civil servant not below the rank of BS 19 as the Chief Executive Officer and 
the terms and conditions of his appointment shall not be less favourable than those 
admissible to him immediately before his transferring to the Authority. 
8. Appointment of officers and staff of the Authority .– (1) The Authority may 
appoint such officers, employees, experts, advis ors, consultants, members of staff and 
other persons as it considers necessary for the efficient performance of its functions on 
such terms and conditions and in such manner as the Authority may prescribe or till such 
time as determined by the Authority. 
(2) The officers, employees, experts, advis ors, consultants, members of staff 
and other persons appointed by the Authority, shall not be  the civil servants within the 
meaning of the Punjab Civil Servants Act, 1974 (VIII of 1974). 
(3) The officers, employees, experts, advis ors, consultants, members of staff 
and other persons appointed by the Authority when acting or purporting to act under any 
of the provisions of the Act  or rules made thereunder shall be deemed to be public 
servants within the meaning of section 21 of the Pakistan Penal Code (XLV of 1860).  
9. Appointment by transfer .– (1) The Government may transfer the services of a 
Government employee to the Authority on such terms and conditions as approved by the 
Authority which shall not be less favo urable than those admissible to him immediately 
before his transfer to the Authority. 
(2) An employee transferred under sub -section (1) shall continue to be the 
employee of the Government and liable to be transferred back as and wh en required by 
the Government. 
10. Constitution of PPP Working Parties .– The Government may constitute PPP 
Working Parties  at Provincial, Departmental, Divisional and District levels to perform 
such functions  with regard to PPP projects subject to such limitations, as may be 
prescribed. 
11. Risk Management Unit .– (1) There shall be a Risk Management Unit in the 
Finance Department to act as a fiscal guardian for the projects implemented under the 
Act.  
(2) The Risk Management Unit shall:  
(a) subject to the approval of the Authority, d evelop risk management 
guidelines for projects to be implemented under the Act; and 
(b) support and advise the Authority or any Implementing Agency with regard 
to assessment, evaluation,  management and apportionment  of risks in a 
project throughout the project lifecycle. 
(3) The Risk Management Unit shall also assist the Authority on a Project with 
regard to:  
(a) its fiscal and contingent liability exposure; 
(b) its financial and business models; 
(c) its transaction structure  and consistency with the Act and rules made 
thereunder; 
(d) identification, distribution and apportionment of risks between the partners 
and their mitigation; 
(e) its financial and economic sustainability; and 
(f) inclusion of project support. 
(4) The Risk Management Unit shall also: 
(a) watch the interest of the Government and the Authority against potential 
risks involved in a Project; 
(b) advise the Government on budgetary requirements of Projects 
implemented under the Act; and 
(c) perform such other functions as may be prescribed or as the Authority may 
determine.  
(5) The Risk Management Unit may require any information from the  
Implementing Agency, Administrative Department , an Attached D epartment, a local 
Government, Statutory Body or a Body Corporate , owned by the Government, for the 
said purpose. 
12. Functions of an Implementing Agency.– (1) An Implementing Agency shall be 
responsible to identify, develop and implement a Project under the Act and the rules 
made thereunder and its role shall include but not be limited to: 
(a) identification of projects; 
(b) preparation of Project Concepts; 
(c) development of Project Proposals; 
(d) collection of data;  
(e) undertaking project feasibilities; 
(f) selection of Transaction Advisors; 
(g) estimation of Project Development Facility and Viability Gap Fund; 
(h) invitation of bids , preparation of draft Bidding Documents, draft 
Prequalification Documents and draft PPP Contracts; 
(i) procurements related to the projects; 
(j) negotiating and entering into PPP Contracts; and 
(k) implementation of the projects and their monitoring and evaluation.  
(2) The Implementing Agency shall also be responsible to take over the project 
after completion of the PPP Contract period, unless otherwise provided.  
(3) Without prejudice to the generalit y of sub-section (1), the Authority  or the 
PPP Working Party may assign additional responsibilities to an Implementing Agency or 
the rules may be framed for prescribing its role. 
(4) The Authority  or the PPP Working Party  may assign the role of 
Implementing Agency  for a P roject to any Government Department, or an attached 
department of the Government, a local Government, or an authority, a body corporate, 
statutory body, or a corporation wholly or majorly owned or controlled by the Government 
at any stage before the signing of the contract, as it deems appropriate. 
(5) The Implementing Agency may establish a PPP Node for undertaking 
Projects under the Act.  
CHAPTER III 
PROJECT IMPLEMENTATION 
13. Transparency, efficiency and economy.– (1) All Projects shall be implemented 
in a transparent, efficient and an economical manner so as to bring value for money.  
(2) All contracts under the Act shall be awarded through a competitive process, 
in the prescribed manner, unless specifically provided otherwise. 
(3) Subject to the Act and the rules made there under, the Implementing 
Agency may enter into PPP Contract  with Private Partner  on the approved terms and 
conditions. 
14. Publication of annual business plan.– Subject to the approval of the 
Government, the Authority shall, in consultation with the Administrative Department s, 
prepare and publish an annual business plan for PPP projects. 
15. Powers to approve a Project .– (1) The Authority shall have full powers to 
approve a Project without any limitation.  
 (2)  Subject to the Act and the rules made thereunder, the approvals granted by 
the Authority or a PPP Working Party shall be final and the Projects duly approved, shall 
not require any further approval and concurrence from Government or any other forum.  
(3) The approval of the project shall be deemed to include the approval of all 
matters ancillary thereto, including but not limited to terms and conditions, concessions, 
Project P roposal, alignment, project support. However, the Implementing Agency shall 
be responsible to fulfil the legal, procedural and codal requirements, necessary to give 
effect to the approval. 
16. Project support.– Subject to the Act and the rules made thereunder, such project 
support may be provided  for implementation of a Project under the Act , as may be 
necessary to make the project fina ncially and economically viable and  such project 
support may include, administrative and financial support, exemption from procedural 
requirements, concessions, licensing and collection rights, tax cuts or exemptions, 
provision of utilities and  land rights, fiscal commitments,  funding out of Viability Gap 
Fund, subsidies, grants, loans, minimum usage  or revenue guarantees, Standby Letter 
of Credit,  commitment to take contingent liabilities, protection against revision of tax 
rates, inflation  indexing, exchange rate and interest rate indexing, right to use 
Government assets, transfer of Government functions and such other support as may be 
determined under the rules. However, tax cuts or exemptions, protection against revision 
of tax rates  and Standby Letter of Credit  shall only be included as a project support 
subject to the approval of Government. In case of a Federal tax or duty, such exemption 
shall be subject to the approval of the Federal Government.  
17. Unsolicited Proposal .– (1) A Private Party  may a lso submit a proposal for a 
Project on unsolicited basis to an Implementing Agency. 
(2) The award of contract on an Unsolicited Proposal  shall be through 
competitive process in such manner as may be prescribed. 
(3) The advantages to the Proponent of an Unsolicited Proposal  may also be 
prescribed through rules to encourage the submission of Unsolicited Proposals. 
18. Transfer of rights.– (1) The Project and its movable and immovable properties,  
physical assets, licenses, goodwill, trademarks, patents, leases, rights including 
intellectual property rights and interests associa ted with the project shall be vested in 
accordance with the PPP Contract, during the tenure of the PPP Contract: 
(a) provided that, where such rights have  been vested in the Private Partner  
for the tenure of the PPP Contract, the Private Partner shall not create any 
lien, charge or encumbrance, in favour of the lenders, over the movable 
and immovable properties of the project, thus vested, as collateral, unless 
specifically approved by the Authority  or the relevant PPP Working Party ; 
and 
(b) provided further that after the expiry of the PPP Contract, all the properties 
as aforesaid shall stand transferred, without any lien, charge or 
encumbrance, to the Government or the Implementing Agency  or the 
Authority in accordance with the PPP Contract, unless otherwise provided. 
(2) Subject to the PPP Contract, the Project may vest in the Private Partner for 
a period not exceeding thirty years and on expiry of such period, the project shall vest in 
the Government or Authority or the Implementing Agency, as the case may be. 
19. No compensation for risks not covered.– The Implementing Agency  shall, as 
far as possible, disclose potential risks in a Project in the Bidding Documents. However, 
the Authority, the PPP Working Party, the Risk Management Unit, Implementing Agency 
or a person working on their behalf shall not be held liable for any claim for a risk, which 
is not specified therein. 
20. Renegotiation of PPP Contracts.– The Authority, in case of a contract , where 
circumstances are beyond the control of Implementing Agency and the Private Partners; 
which could not be foreseen at the time of entering into the PPP Contract, have rendered 
the implementation of original PPP Contract impossible, may, for reasons to be recorded 
in writing, allow re -negotiation of PPP Contract  on such terms and conditio ns, as it 
considers necessary. 
21. Restriction on funding PPP Project through  alternate means.– A project, for 
which funding out of Project Development Facility has been approved or a project which 
is otherwise, approved by the Authority for its implementation as a PPP project under the 
Act, shall not be eligible for funding out of public money including Annual Development 
Program and Public Sector Development Pr ogram, unless other wise decided by the 
Authority. 
22. Compliance with environmental standards .– All Projects implemented under 
the Act and actions taken with regard there to, by the Authority, Implementing Agency  
and the Private Partner  shall be compliant to the environmental laws and standards 
notified from time to time.  
CHAPTER IV 
FINANCE 
23. Allocation of budget.– (1) The Government shall pl ace, each year, adequate 
budget, not less than th at allocated during the preceding year, for funds mentioned at 
sections 24, 25 and 26 at the disposal of the Authority for the projects to be implemented 
under the Act.  
(2)  The Authority  may re-appropriate budget from one f und to the other on 
need basis or delegate such powers. 
(3) Every year, a certain percentage of the development portfolio of a sector 
shall be implemented on PPP basis. The Government may, from time to time, determine 
the said percentage for a sector.  
(4) The development projects which are commercially viable and suitable for 
implementation as a PPP Project shall preferably be implemented on PPP basis instead 
of Annual Development Program.  
24. Authority Fund.– (1) There shall be a fund to be known as the Punjab Public 
Private Partnership Authority Fund which shall be maintained, managed, controlled and 
administered by the Authority in the manner as may be prescribed through rules. 
(2)  The Authority Fund shall consist of: 
(a) sums as the Government may from time to time grant or lend , for the 
purpose; 
(b) sums charged from Private Partners in accordance with the PPP Contract,  
for PPP projects approved by the Authority ; in case such sums exceed one 
percent of the total project cost , the excess amount may be transferred to 
Viability Gap Fund or Project Development Facility, as the Authority  may 
determine; 
(c) income and profit from investments by the Authority; 
(d) fees charged for the services rendered by the Authority; 
(e) grants or funds provided by International Agencies, subject to the approval 
of the Government; and 
(f) all other sums which may in any manner become payable to or vested in 
the Authority.  
(3) The Authority shall meet its operational expenses from the Authority Fund.  
(4) The Authority may suitably invest surplus amount of the Authority Fund  in 
such manner as may be prescribed through rules. 
25. Viability Gap Fund.– (1) There shall be a fund  to be known as the Viability Gap 
Fund which shall be maintained, managed, controlled and administered by the Authority 
in the manner as may be prescribed through rules.  
(2)  The Viability Gap Fund shall receive sums from: 
(a) budgetary releases, development or non -development, from the 
Government, for the purpose; 
(b) grants by the Federal, Provincial Governments or any Governmental 
Agency, for the purpose; 
(c) funds placed by the Government at the disposal of the Authority, for the 
purpose; and 
(d) loans, grants, funds and contributions received from International Agencies, 
for the purpose, subject to the approval of the Government. 
(3) The Government shall replenish the Viability Gap Fund from time to time.  
(4) The Viability Gap Fund shall be utilized, inter alia, to provide support to the 
projects determined by the Authority to be economically or socially justified but not 
financially viable.  
26. Project Development Facility.– (1) There shall be a facility to be known as the 
Project Development Facility which shall be , maintained,  managed, controlled and 
administered by the Authority in such manners as may be prescribed through rules.  
(2) The Project Development Facility shall receive sums from: 
(a) budgetary releases, development or non -development, from the 
Government, for the purpose; 
(b) grants by the Federal, Provincial Governments or any Governmental 
agency, for the purpose; 
(c) funds placed by the Government at the disposal of the Authority, for the 
purpose; 
(d) loans, grants, funds and contributions received from International Agencies, 
for the purpose, subject to the approval of the Government. 
(3) The Project Development Facility shall be utilized, inter alia, to support the 
development of Project Proposals, preparation of Bidding Documents and other ancillary 
matters for potential PPP projects. 
(4) The money spent on the preparation of a proposal, out of the Project 
Development Facility, shall be reimbursed by the Private Partner  to the Project 
Development Facility before the start of the commercial operations of the project 
developed thereof.  
(5) The Government shall replenish the Project Development Facility from time 
to time. 
27. Budget and accounts .– (1) The Authority shall maintain proper accounts and 
other records relating to its financial affairs including its income and expenditures, and its  
assets and liabilities in the manner determined by Finance Department  of the 
Government.  
(2) The Authority shall maintain its accounts in such manners as may be 
prescribed through the rules. 
(3) The Authority shall , upon the conclusion of a financial year, cause to be 
prepared for each financial year, its statements of accounts  which shall include a 
balance sheet and an account of income and expenditure. 
(4) No expenditure for which provision has not been made in the approved 
budget shall be incurred without prior approval of the Authority. 
28. Audit.– (1) The Auditor General of Pakistan shall annually audit the accounts of 
the Authority.  
(2) The Authority shall, if required, take appropriate remedial or other actions in 
the light of the audit reports prepared by the Auditor General of Pakistan. 
(3) The Authority, in addition to the audit under sub -section (1), may cause the 
accounts of the Authority annually audited by a Chartered Accountant or a firm of 
Chartered Accountants. 
(4)  The auditor appointed under sub-section (3) shall: 
(a) be provided such access to the books, accounts and other documents as 
may be considered necessary for the audit of accounts; and 
(b) authenticate balance sheet, income and expenditure statement of the 
Authority before issuance. 
(5) The auditor shall submit the annual or any special audit report to the 
Authority, and the Authority shall take appropriate remedial or other action in the light of 
the audit report. 
CHAPTER V 
MISCELLANEOUS 
29. Power to exempt  from taxation .– The Government, from time to time,  may 
exempt PPP Projects from provincial taxes or grant such waivers as  it deems 
appropriate.  
30. Power to make rules .– The Government shall, by notification in the official 
Gazette, make rules for carrying out the purposes of the Act.   
31. Power to frame regulations .– Subject to the Act, t he Authority may  frame 
regulations, not inconsistent with the Act and the rules made thereunder, for carrying out 
the purposes of the Act. 
32. Advisory and consulting services.– The Authority may provide advisory and 
consulting services to other  agencies, Governments, local Governments, bodies 
corporate, statutory bodies, and corporations and charge fees for the services provided. 
33. Selection of Private Partners,  Transaction Advisors, consultants and 
experts.– Notwithstanding anything contained in any other law for the time being in force 
and the rules made thereunder, the Government may prescribe through rules or 
otherwise determine the manner, method and procedures for: 
(a) selection of Private Partners in connection with PPP Projects or certain 
classes thereof; 
(b) selection of Transaction Advis ors in connection with PPP P rojects or 
certain classes thereof; and 
(c) engagement of International Financial Institutions as Transaction Advisors 
for certain PPP projects or classes thereof, on such terms and co nditions 
as prescribed therein. 
34. Conflict of interest .– (1) A Member shall not, directly or indirectly, receive any 
profit from his position as a Member except the reasonable expenses incurred by him in 
the performance of his duties. 
(2) The pecuniary interests of immediate family members or close personal or 
business associates of a Member or an officer working in pursuance of the Act shall also 
be considered the pecuniary interests of the Member or the officer. 
(3) A Member or an officer working in pursuance of the Act or the rules made 
thereunder, shall be in conflict of interest if, for a PPP Project, he: 
(a) is or has been an employee, or a paid consultant of a Bidder or a 
Consortium or lender of the Bidder or Consortium; or 
(b) owns, controls, or has  or had direct or indirect interest in a business 
venture of a Bidder or a member of a Consortium; or 
(c) receives or had received any income from a business venture of a Bidder 
or a member of a Consortium; or 
(d) himself, or one or more members of his family, business partners or close 
personal associates, may personally ben efit either directly or indirectly, 
financially or otherwise, from his position. 
(4) A Member shall disclose a potential, real or perceived conflict of interest as 
soon as he becomes aware of the conflict to the Authority, through its Secretary.  
(5) If a Member is not certain about the conflict -of-interest situation, he shall 
bring the matter before the Authority for advice and the decision of the Authority thereon 
shall be final.  
(6) A Member shall not take part in the proceedings of the Authority in which 
any question of his conflict of interest is being discussed.  
(7) The disclosure of conflict of interest and the decision of the Authority 
thereof, shall be recorded in writing. 
(8) A person or an association of persons providing consulting or transacti on 
advisory services for a Project shall be in conflict of interest if for the same Project he is:  
(a) submitting a bid or is a part of a Bidder or a Consortium; or 
(b) is an employee, or a paid consultant of a Bidder or a Consortium or lender 
of the Bidder or Consortium.  
35. Dispute resolution.– The disputes shall be decided in accordance with the laws 
of Pakistan and pursuant to the Arbitration Act, 1940 (X of 1940), or  any other relevant 
law for the time being in force or the law as may be specified in the PPP Contract . 
However, in case of foreign equity  or foreign debt investments, the PPP Contract may 
provide for international commercial arbitration, at a mutually agreed venue subject to 
approval of the Government.  
36. Termination of PPP Contract .– (1) A Public  Private Partner ship contract shall 
only be terminated by either party subject to notice of breach, allowing cure period to the 
other party and a notice of termination in accordance with the PPP Contract.  
(2) A PPP Contract may be terminated: 
(a) by the Private Partner , when the Implementing Agency  fails to fulfill the 
major obligations under the PPP Contract even after the service of notice 
and passing of cure period provided in the PPP Contract; 
(b) by the Implementing Agency  when the Private Partner  fails to  fulfill the 
major obligations under the PPP Contract or fails to  perform the contract 
wholly or in part or comply with the terms of the  PPP Contract or fails to 
achieve the milestones and maintain the standards as set out in the PPP 
Contract and has failed to take remedial actions beyond the cure period. In 
such a case, the Implementing Agency may, subject to the approval of the 
Authority, either takeover the project and assume the related liabilities or 
allow the lenders of the Private Partner to exercise their rights and interests 
as specified in the loan agreement and replace the Private Partner with a 
substitute Private Party subject to the approval of the Authority or takeover 
the project and auction the remaining term of the PPP Contract  in a 
competitive manner and apply the proceeds to pay the debts of the Private 
Partner or invoke such other contractua l remedies including liquidated  
damages which fairly cover the l oss incurred by the Government or the 
Authority or the Implementing Agency, as the case may be; 
(c) unilaterally by the Government acting in the Public interest but  in such a 
case the Government shall suitably compensate the Private Partner for its 
investments made in the project including any debts incurred and a sum 
which fairly represents the lost profits on such investments; and 
(d) by the occurrence of a force majeure, subject to consent of both parties. In 
such case, the rights and liabili ties shall be allocated in accordance with 
risk and compensation formula set forth in the PPP Contract. 
(3) Major obligations on behalf of either party in  clause (a) and (b) of sub -
section (2) are those obligations which render the implementation of the project 
impossible by other party.  
37. Land acquisition .– The acquisition of any land or any interest in land by the 
Authority under the Act shall be deemed to be acquisition for a public purpose within the 
meaning of the Land Acquisition Act, 1894 (I of 1894). 
38. Powers to eject unauthorized occupants .– The Authority may, summarily eject 
any unauthorized occupant of any part of the infra structure or a proposed project site 
thereof and remove any structure thereon, and use such force, including police force, as 
may be necessary for the purpose and recover the cost thereof from such unauthorized 
occupant. 
39. Recovery of costs, dues and fee s.– (1) In case of failure by a Private Partner to 
pay sums including but not limited to costs, dues, fees, rents, profits, charges, interest s, 
payable by the Private Partner, to the Government, Implementing Agency or the 
Authority, the Authority may recover the sum due from the Private Partner as arrears of 
land revenue under the Punjab Land Revenue Act, 1967 (XVII of 1967). 
(2) The Authority shall designate an officer as Collector to exercise the powers 
of the Collector under the Pun jab Land Revenue Act, 1967 (XVII of 1967) for recovery of 
arrears under sub-section (1). 
40. Reward by the  Authority.– The Authority may, in the prescribed manner, make 
payment of reward out of the Authority Fund to any person who has made an exceptional 
effort towards accomplishing the objectives of the Act. 
41. Obligation to produce documents and provide information.– (1) The Authority 
or the Chief Executive Officer may require, in writing, any person, Government 
department, authority, statutory body, company or organization, as the case may be, to 
provide any information or data held by that person, Government department, authority, 
statutory body, company or organization, which, in the opinion of the Authority is required 
for policy making or exercising the powers granted by the Act. 
(2) Every person, Government Department, Authority, statutory body, company 
or organization shall furnish the information requisitioned under sub -section ( 1), at the 
earliest. 
42. Power to require information from the Private Partner .– (1) The Authority, the 
PPP Working Party, the Implementing Agency,  the Chief Executive Officer  or an officer 
authorized on their behalf may  carry out  such inspections or conduct such tests or 
surveys or require the Private Partner to furnish such information including but not limited 
to reports, data, documents, record, statements which in the opinion of the Authority,  the 
PPP Working Party,  the Implementing Agency, the Chief Executive Officer  or an officer 
authorized on their behalf is necessary for quality control, monitoring, evaluation, 
assessment, oversight, third Party Validation or audit  of the PPP project implemented 
under the Act. 
(2) In case of failure to comply to the requirements or requisitions made under 
sub-section (1), the Authority , the PPP Working Party,  the Implementing Agency,  the 
Chief Executive Officer or the officer authorized on their behalf may proceed with such 
inspections or tests or procure such information at the cost, expense and risk of the 
Private Partner and i n addition thereof, the Authority, the PPP Working Party, the 
Implementing Agency or the Chief Executive Officer may also impose such penalty upon 
the Private Partner as it considered appropriate to compensate for the non-compliance 
or inaction of the Private Partner. 
43. Transparency and public disclosure.– (1) The PPP Contract  and the 
documents ancillary thereto shall be public documents. Any interested person shall be 
entitled to obtain a copy of it in such manners as may be prescribed. 
(2) The Authority may, for reasons to be recorded in writing, declare the whole 
or part of the document not to be made a public document or impose such restr ictions as 
it deems appropriate. 
44. Public servants.– The Chairperson, Vice Chairperson and Members shall, when 
acting or purporting to act in pursuance of any of the provisions of the Act, be deemed to 
be public servants within the meanings of section 21 of the Pakistan Penal Code, 1860 
(XLV of 1860). 
45. Immunity of the Authority and its employees .– No suit, prosecution or any 
other legal proceeding shall lie against the Authority, the Chairperson, the Chief 
Executive Officer, Member, officer, employee, expert  or consultant of the Authority, 
exercising any power or performing any function under the Act or the rules or regulations 
made thereunder for anything done in good faith. 
46. Prior consent of the Authority with respect to certain legal actions .– (1) 
Notwithstanding anything contained in any  other law for the time being in force, no legal 
action shall be initiated against any Member, officer or official  by any Government 
agency for acts of omission or commission in his official capacity, pertaining to the Act, or 
the rules or regulation s made thereunder, unless the said agency obtains prior cons ent 
of the Authority in writing and for seeking such consent  the Government agency shall 
provide the list of charges along with the evidence.  
(2) The Authority shall , on receipt of the list of charges along with evidence 
under sub -section (1), constitute an inquiry committee which shall determine whether 
there is a prima facie cause for the legal action or not and the inquiry committee shall 
give its findings and reco mmendations to the Authority within such time as may be 
directed by the Authority and the decision of the Authority on the matter, whether to allow 
the proposed legal action or not, shall be final. 
47. Overriding effect. – Notwithstanding anything contained  in any other law, the 
provisions of the Act shall prevail to the extent of the Public Private Partnership projects. 
48. Removal of difficulties.– If any difficulty arises in giving effect to or applying the 
provisions of the Act, the Government may make such order, not inconsistent with the 
Act, as may be necessary for removing the difficulty. 
49. Repeal and savings.– (1) The Punjab Public Private Partnership Act 2019 (XXX 
of 2019) is hereby repealed.  
(2) Notwithstanding the repeal under sub-section (1): 
(a) anything done or any action taken under the repealed Act shall, so far as it 
is not inconsistent with the Act, be deemed to have been done or taken 
under the Act; 
(b) all rules, regulations, guidelines, manuals, notifications, office orders, 
approvals issued under the repealed Act shall, so far as these are not 
inconsistent with the Act, be deemed to have been issued under the Act; 
(c) a PPP Contract signed with a Private Party prior to the coming into force of 
the Act, shall be valid until the end of the term established in such contract; 
(d) the residuary matters of the PPP Projects which are at various stages of 
implementation and the Agreements with regards thereto  have not been 
signed prior to coming into force of the Act, shall continue to be dealt with 
the repealed Act till such time the rules are notified under the Act;  
(e) all employees of the Authority and the Risk Management Unit, under the 
repealed Act, shall be deemed to be the employees of the Authority and 
Risk Management Unit under the Act on the terms and conditions not less 
favourable than the terms and conditions, they were subject to immediately 
before the repeal of Punjab Public Private Partnership Act 2019  (XXX of 
2019).  
(3) The PPP Cell established under the repealed Act is hereby abolished and  
the employees, assets and liabilities of the abolished PPP Cell shall stand transferred to 
the Authority, on such terms and conditions as the Authority may determine. 
(4) Nothing in the  Act shall affect any action taken by the PPP Cell under the 
repealed act, if not inconsistent with the Act, and it shall continue to be in force and have 
effect as if it were taken under the Act. 
(5) All agreements and contracts entered into or rights, cl aims or assets 
acquired and transferred under the repealed Act shall be deemed to have been acquired 
and transferred under the Act. 
(6) All suits and other legal proceedings instituted by or against the Authority 
shall be deemed to be suits and proceedings under the Act. 
(7) All the Projects implemented under the repealed Act shall be deemed to 
have been validly implemented under the Act.