PUNJAB PUBLIC PRIVATE PARTNERSHIP ACT 2019

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THE PUNJAB PUBLIC PRIVATE PARTNERSHIP ACT 2019 
 (XXX of 2019) 
CONTENTS 
CHAPTER I 
PRELIMINARY 
1. Short title, extent and commencement 
2. Applicability 
3. Definitions 
CHAPTER II 
INSTITUTIONAL ARRANGEMENTS 
 
4. The Board  
 
5. Disqualifications to become a Member 
 
6. Functions of the Board 
 
7. The PPP Cell 
 
8. Authority 
 
9. Functions of the Authority 
 
10. Chief Executive Officer  
 
11. Executive Committee 
 
12. Functions and Powers of the Executive Committee  
 
13. Risk Management Unit 
 
CHAPTER III 
PROJECT DELIVERY PROCESS 
 
14. PPP arrangements 
 
15. Project identification and preparation  
 
16. Project prioritization and approval  
 
17. Approval of Government support  
 
18. Consideration by the Board 
 
 
 
19. Selection of the private party 
 
20. Pre-qualification 
 
21. Bidding 
 
22. Single stage three envelope bidding 
 
23. Bid evaluation  
 
24. Bid security  
 
25. Government support  
 
26. Unsolicited proposals  
 
27. Non observance of timelines  
 
28. Preparation and negotiation of PPP agreement  
 
29. Project implementation and operation  
 
30. Setting and adjustment of user levies  
 
31. Dispute resolution  
 
32. Termination of the PPP agreement  
 
33. Vesting of the project in the private party  
 
34. Transfer of the project  
 
CHAPTER IV 
MISCELLANEOUS 
 
35. Conflict of interest 
 
36. Disclosure of generic risks  
 
37. Integrity pact  
 
38. Public disclosure  
 
39. Prescribing and enforcing standards 
 
40. Indemnity by the private party 
 
41. Recovery of costs, dues and fees 
 
 
 
42. Protection of actions taken in good faith 
 
43. Power to make rules  
 
44. Power to frame regulations  
 
45. Applicability to Government Agencies 
 
46. Appointment by transfer  
 
47. Public servants  
 
48. Authority Fund  
 
49. Budget and accounts 
 
50. Audit 
 
51. Overriding provision 
 
52. Transition provision 
 
53. Repeal and savings 
 
54. Repeal 
 
  
 
 
TEXT 
1
THE PUNJAB PUBLIC PRIVATE PARTNERSHIP ACT 2019 
 (XXX of 2019) 
    [13th December, 2019] 
An 
Act 
to foster an enabling environment for private sector participation in development in 
the Punjab through public private partnership. 
It is necessary to create an enabling environment to promote the private sector 
participation and investment in partnership with the public sector for provision of 
public infrastructure and services for accelerated economic growth; to bridge the gap 
in demand and supply of public infrastructure and services; to harness the 
substantive role of public private partnership as a mea ns of mobilizing private sector 
funding, resources and expertise; and for 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 and commencement.– (1)  This Act may be cited as the 
Punjab Public Private Partnership Act 2019. 
(2) It extends to whole of the Punjab. 
(3) It shall come into force at once. 
2. Applicability.– The Act shall apply to all projects conceived, developed, 
approved and implemente d through Public Private Partnership in Province of the 
Punjab. 
3. Definitions.– In the Act:  
(a) “Act” means the Punjab Public Private Partnership Act 2019;  
(b) “Authority” means the Punjab Public Private Partnership Authority 
established under the Act; 
(c) “Authority Fund” means the fund established under section 48 of the 
Act; 
(d) “availability based payments” means predetermined performance 
based payments to the private party committed by the Government to 
cover the approved cost of provision of infrastructure and / o r service 
made available or rendered by the private party, during lifecycle of  
PPP project; 
                                                      
1This Act was passed by Provincial Assembly of the Punjab on 25 November 2019; assented to by the Governor of the Punjab 
on 10 December 2019; and, was published in the Punjab Gazette (Extraordinary), dated: 13 December 2019, pp.2587-2608 
 
 
(e) “bid” means a technical and financial proposal submitted by a person 
who is eligible under the Act to undertake a project; 
(f) “Board” means the Public Private Partnership Policy and Monitoring 
Board of the company constituted under the Act; 
(g) “Company” means a company registered under the Companies Act, 
2017 (xix of 2017) or any other relevant law for the time being in force;  
(h) “concession” means grant of right of a public property by the Authority 
in return for stipulated services or a promise to exercise such right for a 
specified purpose, in such manner under the Act;  
(i) “consortium” means an association of persons who have entered into a 
legally enforceable contra ctual arrangement for purposes of entering 
into a PPP agreement; 
(j) “construction” includes construction, reconstruction, rehabilitation, 
renovation, improvement, expansion, addition, alteration and related 
activities;  
(k)  “Director” means a Director of the Executive Committee;  
(l) “Executive Committee” means the managing committee of the 
Authority constituted under the Act; 
(m) “Government” means Government of the Punjab; 
(n) “Government Agency” means a department and an attached 
department of the Government, a local gove rnment, or a body 
corporate, statutory body or a corporation owned or controlled by the 
Federal Government or the Government; 
(o) “investment” includes financing, development and pre -operative capital 
expenditure made or incurred on services, facilities, land,  construction 
and equipment;  
(p) “lender” means a financial institution as defined in the Financial 
Institutions (Recovery of Finances) Ordinance, 2001 (XLVI of 2001) or 
an establishment providing financial support with or without security; 
(q) “local government” means a local government as defined in the Punjab 
Local Government Act 2019 (XIII of 2019) or any other law for the time 
being in force;  
(r) “Member” means a Member of the Board, and includes the 
Chairperson and the Vice Chairperson of the Board; 
(s) “PPP agreem ent” means a contract between the public sector 
represented by the Authority and a private party for the provision of an 
infrastructure facility or service through a project; 
(t) “person” includes a company, statutory body, entity, firm, association 
of persons, body of individuals, corporation, or a sole proprietor other 
than a Government Agency; 
(u) “prescribed” means prescribed by the rules or the regulations made or 
framed under the Act; 
 
 
(v) “private party” means a person or Government Agency who enters into a 
PPP agreement with the Authority; 
(w) “project” means a public project implemented on Public Private 
Partnership basis; 
(x) “Project Development Facility (PDF)” means a facility including but not 
limited to grants, loans, contributions from international donor agencies  
for project development which includes financing the engagement of 
transaction advisers, consultants and services for preparing proposals 
for projects by the Authority; 
(y) “Public Private Partnership” means a commercial agreement between 
the Authority and a private party pursuant to which the private party: 
(a) undertakes to perform a public function, provides a public 
service or develops use of a public property on behalf of a 
Government Agency by, amongst other things, designing, 
constructing, financing, operat ing, marketing or maintaining 
such public property; and  
(b) assumes substantial financial, technical, operational or 
environmental risks in connection with the performance of a 
public function or provision of public service or use of a public 
property. 
(z) “regulations” means the regulations framed under the Act; 
(aa) “risk” means any event or circumstance affecting the project which can 
adversely affect performance and costs of any contractual obligation 
related thereto including design, construction, financing, opera tion or 
maintenance; 
(bb) “rules” means the rules made under the Act; 
(cc) “Special Purpose Vehicle (SPV)” means a special purpose company 
established by the private party for implementation and operation of 
the project to assume all the rights and obligations of th e private party 
under the PPP agreement; 
(dd) “user levy” means a levy, without limitation, including annuity, charge, 
fee, tariff, toll, which may be collected under a PPP agreement; and 
(ee) “Viability Gap Fund (VGF)” means the funds or other assets the 
Government which are made available to the private party to support 
the project including funds for covering revenue shortfalls by means of 
grants, subsidies, guarantees, or any other mode approved by the 
Board. 
 
CHAPTER II  
INSTITUTIONAL ARRANGEMENTS  
 
4. The Board .– (1) There shall be a Public Private Partnership Policy and 
Monitoring Board of the Authority to promote, facilitate, coordinate, direct and 
oversee Public Private Partnership projects.  
 
 
(2) The Board shall consist of the following: 
(a) Chief Minister, Punjab; Chairperson 
(b) Minister for Planning and Development , 
Punjab or any other person nominated 
by the Chief Minister; 
Vice Chairperson 
(c) Minister for Finance, Punjab; Member 
(d) Minister of the concerned Department;  Member 
(e) two members of Provincial Assembly     
of the Punjab including one female 
member of the Assembly, to be 
nominated by the Speaker of the 
Assembly for the term of the Assembly;  
Member 
(f)  Chief Secretary, Punjab;  Member 
(g) Chairman, Planning and Develo pment 
Board, Punjab;  
Member 
(h) Senior Member, Board of Revenue;  Member 
(i) Secretary to the Government, Finance  
Department;  
Member 
(j) Secretary to the Government, Law and 
Parliamentary Affairs Department; 
Member 
(k) Secretary to the Government of  the 
Department, administratively concerned 
with reference to a project;   
Member 
(l) one representative of Chamber of 
Commerce and Industry to be 
nominated by the Government for a 
term of three years; 
Member 
(m) three experts from private sector 
including one expert each from the field 
of finance, law and engineering industry 
respectively to be nominated by the 
Government for a term of three years;  
Member 
(n) Chief Executive Officer, Punjab Board of 
Investment and Trade (PBIT);  
Member 
(o) Chief Executive Officer of the Authority; 
and 
Member 
 
 
(p) Member (PPP), Planning and 
Development Board  
Member/ Secretary 
 
(3) An ex-officio Member shall hold office as Member till such time he 
holds office by virtue of which he is a Member and upon his transfer therefrom or 
retirement or resignation, the person appointed in place of such member shall 
be the Member.  
(4) The Government shall not nominate a person as expert Member 
unless he has at least sixteen years education in the relevant field, is of known 
integrity and repute and possesses such experience in the relevant field as may 
be prescribed.  
(5) The Board may co-opt for a project any person who is an expert in 
the relevant field. 
(6) The Board shall meet once in every three months and otherwise 
as often as may be necessary for the implementation of the provisions of the Act 
or performance of its functions. 
(7) The quorum for the meeting of the Board shall be one half of the 
Members present and voting including the Chairperson and the Vice 
Chairperson: 
 Provided that if an ex -officio Member is unable to attend the 
meeting of the Board, he may authorize an officer, not bel ow the rank of an 
Additional Secretary or equivalent of his Department for the purpose. 
(8) The Board may constitute such number of committees as it may 
consider necessary or expedient to assist it in the performance of its functions 
under the Act.  
(9) A meeting of the Board may be called if:  
(a) directed by the Chairperson or the Vice Chairperson, as the 
case may be; or 
(b) requested by Members representing three fourths of the 
Members of the Board; or 
(c) requested by the Authority and approved by the 
Chairperson or the Vice Chairperson.  
 
5. Disqualifications to become a Member .- (1) No person shall be appointed 
or continue as a Member of the Board who: 
(a) is or, at any time, has been convicted of an offence involving 
moral turpitude; 
(b) is or, at any time, has been adjudicated insolvent; 
(c) is found to be a lunatic or of unsound mind; 
(d) has become physically or mentally incapable of acting as a 
Member; 
(e) has committed gross negligence or willful misconduct; 
 
 
(f) has been dismissed from public or private employment;  
(g) has been convicted of corruption, financial embezzlement, 
mismanagement or malpractices; 
(h) receives or is found to have received any illegal gratification 
from a private party; or 
(i) having any interest, either monetary or otherwise, directly or 
indirectly in any privat e party tendering for PPP or involved in 
the process in any way and failed to disclose such interest in 
writing to the Government. 
(2) Subject to subsection (1), appointment of any Member may, at any 
time, be revoked and such member shall stand removed fro m his office by order of 
the Government. 
(3) A Member may at any time resign from his office by a written notice 
addressed to the Chairperson. 
6. Functions of the Board.– (1)  The Board shall: 
(a) formulate the policies relating to the PPP projects for 
implementation pursuant to the Act; 
(b) supervise and coordinate the implementation of the Act, 
rules and regulations; 
(c) approve a three years rolling business plan and annual plan 
of the Authority; 
(d) review three year rolling business plan and annual plan of 
the Authority quarterly;   
(e) approve execution of projects proposed by the Authority 
under the Act, so that the concerned Government Agency 
shall not seek execution of such projects by availing public 
funds unless otherwise allowed in writing by the Board; 
(f) be the final deciding authority for all the PPP projects; 
(g) issue guidelines for the Authority or a Government Agency 
in resolving major problems impeding preparation and 
implementation of PPP projects; 
(h) approve, reject or send back for reconsideration any project 
proposal submitted by the Authority; 
(i) approve, reject or send back for reconsideration the 
recommendations submitted by the Authority for a PPP 
agreement to be awarded to a private party on the rates or 
terms and conditions different from the original approval;  
(j) approve, reject or send back for reconsideration any 
recommendations of the Authority received through PPP 
Cell for any direct or contingent support/ availability based 
payments for a project; 
 
 
(k) determine projects that may be undertaken on priority basis 
by the Authority;  
(l) determine the maximum limit of Government support 
referred to in section 25 of the Act for any project;  
(m) approve Viability Gap Fund (VGF) requests upon 
recommendation of the PPP Cell; 
(n) approve PDF funding requests of the Authority exceeding 
limit of fifty million rupees;  
(o) accord approval for review and re -negotiation of PPP 
agreements, if necessary;  
(p) monitor PPP projects during concession period through 
PPP Cell; 
(q) constitute such committees, comprising of its members or 
other person(s) as deem ed relevant to the working of such 
committees, as it considers necessary or expedient to assist 
it in the performance of its function under the Act;  
(r) recommend the terms and conditions and performance 
incentives, if any, of the employment of the Chief Exec utive 
Officer of the Authority;  
(s) provide general directions, oversight and supervision on the 
affairs and administration of the Authority; and 
(t) take all other steps necessary for giving effect to the 
provisions of the Act. 
(2) In case of contingent liabilit y or financial commitment of the 
Government spanning beyond the ongoing financial year or allocated resources, 
prior approval of the Government shall be solicited before approval of such PPP 
projects by the Board. 
(3) The Board may change any timeline provided in the Act except the 
timelines mentioned in sections 20 and 24 of the Act. 
7. The PPP Cell.– (1)  The Government shall, by notification in the official 
Gazette, establish the PPP Cell in the Planning and Development Board of the 
Government to act as Secretariat of the Board. 
(2) The composition of the PPP Cell shall be such as may be 
prescribed and until so prescribed, as the Government may determine. 
(3)  The PPP Cell shall: 
(a) provide administrative and secretarial support to the Board; 
(b) review and stre ngthen the institutional and regulatory 
framework for the effective implementation and operation of 
PPPs in the Punjab; 
(c) appraise PPP project proposals submitted by the Authority 
including feasibility study, business and financial model, 
initial environment  impact assessment and draft PPP 
agreements;  
 
 
(d) seek input of Risk Management Unit on the PPP project 
proposals submitted by the Authority in terms of (including 
but not limited to) risk assessment and contingent liabilities;  
(e) appraise the requests for Viabi lity Gap Fund (VGF) 
financing received from the Authority in consultation with 
Risk Management Unit and place the recommendations 
thereof to the Board;  
(f) assist the Risk Management Unit in working out the annual 
budget requirements for annuity payments;  
(g) evaluate, in close consultation with the Risk Management 
Unit, the type and amount of Government support that may 
be made available for a project;  
(h) make recommendations to the Board for appropriate 
decision; 
(i) monitor the PPP projects during concession period; and 
(j) perform such other functions as may be prescribed or 
assigned by the Board. 
8. Authority.– (1) The Government shall, by notification in the official 
Gazette, establish an Authority to be known as the Punjab Public Private 
Partnership Authority. 
 (2) The Authority shall be a body corporate, having perpetual 
succession and a common seal, with powers to enter into contracts, acquire or, 
subject to subsection (3), dispose of both movable and immovable property, and 
may, by the said name, sue or be sued.  
(3) The Authority shall not dispose of any immovable property without 
prior approval of the Government. 
9. Functions of the Authority.– (1) The Authority shall: 
(a) take necessary steps for the implementation of the 
provisions of the Act and to achieve the obj ectives of the 
Act; 
(b) ensure that projects are consistent with the decisions of the 
Government, the Board and sectoral development policies; 
(c) facilitate debt markets, bank financing, international 
financial institutions and equity markets for financing the 
public infrastructure/ services projects;  
(d) enhance capacity of the financial and capital markets to 
encourage healthy competition for projects;  
(e) enhance capacity of the engineering and construction 
industry to encourage healthy competition for projects;  
(f) encourage key stakeholder consultations and engagements 
to raise confidence of the private sector for participation in 
the projects;  
 
 
(g) develop expertise to raise financing for the projects through 
various financial instruments including but not limited to 
Bonds, Sukook, T -bills, Securities, Pension Funds, and 
promote establishment of Infrastructure Finance 
Company(ies); 
(h) prepare and execute a three year rolling business plan (to 
be updated annually) / an annual plan of the Authority; 
(i) develop management, operating guidelines, procedures and 
model documents for projects;  
(j) identify suitable projects and prioritize them within its sector 
or geographical area of responsibility; 
(k) maintain a Project Development Facility (PDF) fund for 
financing the engagement of transact ion advisers and 
consultants;  
(l) maintain a panel of transaction advisers and consultants, for 
use by the Authority for PPP projects; 
(m) prepare a feasibility for the project and, if its outcome is 
positive, submit to the Board, through PPP Cell, a project 
proposal along with estimated cost of the project, type of 
PPP agreement and the details of Government support if 
required; 
(n) evaluate and prioritize project proposals;  
(o) conduct a competitive tendering process for a project 
approved by the Board, including a pre-qualification process 
and bidding by the pre -qualified bidders to select the 
suitable private party;  
(p) carry out bid evaluation and make recommendations thereof 
for consideration of the Board;   
(q) negotiate and sign on behalf of the Government the PPP 
agreement with the private party as approved by the Board; 
(r) monitor and evaluate implementation and operation of the 
project;  
(s) evaluate the type and amount of Government support that 
may be made available for a project in consultation with 
Risk Management Uni t and make recommendations to the 
Board for appropriate decision;  
(t) assess whether requests for Government support and the 
proposed risk sharing arrangements are consistent with the 
Act, the rules and the regulations, and are fiscally 
sustainable; 
(u) assess re gulatory and social impediments involved in the 
planning, development, financing, implementation, 
management, supervision and delivery of a project and 
recommend mitigation measures to the Board;  
 
 
(v) administer and manage the Funds of the Authority in the 
manner determined by the Board; 
(w) constitute one or more committees or sub -committees 
consisting of the Members of the Authority, the employees 
of the Authority, Government Agencies and such other 
persons as it may deem fit and assign functions to each 
such committee or sub-committee;  
(x) hire professional and supporting staff from public/ private 
sector for the Authority as approved by the Executive 
Committee, from time to time;  
(y) appoint technical, professional and other experts, advisers, 
agents and consultants, including but not limited to 
accountants, bankers, engineers, lawyers, valuers for the 
Authority as approved by the Executive Committee; 
(z) manage the project throughout its life cycle including but not 
limited to project identification, project proposal prep aration 
including feasibility, tendering, supervising the 
implementation and operation of the project, and if 
applicable, take over the project under a PPP agreement.  
(aa) review and re -negotiate PPP agreements, subject to prior 
approval of the Board;  
(bb) establish a complaint cell for speedy redressal of complaints 
of general public relating to the projects and a system of 
acknowledgment of complaints within fifteen days from the 
date of receipt of a complaint along with stipulated timeline 
for disposal of the complaint; and 
(cc) perform such other functions as may be prescribed or 
assigned by the Board.  
 (2) The Authority shall prepare and submit its annual performance 
report to the Government in the prescribed manner. 
10. Chief Executive Officer .- (1) The Government shall appoint a Chief 
Executive Officer of the Authority from public or private sector.  
(2) The age, experience, qualifications, terms and conditions and 
performance incentives, if any, of employment of the Chief Executive Officer 
shall be such as may be prescribed or until so prescribed , as the Government, 
on the recommendations of the Board, may determine. 
(3) The Chief Executive Officer shall exercise such powers and perform 
such functions as may be assigned or delegated to him by th e Authority or by 
the Executive Committee.  
11. Executive Committee .- (1) The Government shall, on the 
recommendations of the Board, constitute, by notification in the official Gazette , 
the Executive Committee of the Authority comprising not less than nine Directors. 
(2) The Executive Committee shall consist of the following: 
 
 
(a) Minister for Planning and 
Development, Punjab or such 
person as may be nominated by the 
Chief Minister;  
Chairperson 
(b) Chairman, Planning and 
Development Board;  
Vice Chairperson 
(c) Secretary, Planning and 
Development Board; 
Director 
(d) Secretary to the Government,  
Finance Department; 
Director 
(e) Member (Infrastructure), Planning 
and Development Board; 
Director 
(f) Member (PPP), Planning and 
Development Board;  
Director 
(g) A nominee of the Board amongst its 
three expert members;  
Director 
(h) Chief Executive Officer, PPP 
Authority; and  
Director 
(i) Chief Operating Officer, PPP 
Authority.  
Director/ Secretary 
(3) An ex-officio Member shall hold office as Director till such time he 
holds office by virtue of which he is a Director and upon his transfer therefrom or 
retirement or resignation, the person appointed in place of such Director shall be 
the Director.  
(4) The Executive Committee shall meet once in every month and 
otherwise as often as required for the implementation of the provisions of the Act 
or performance of its functions.  
(5) The quorum for a meeting of the Executive Committee shall be 
one half of the Directors present including the Chairperson: 
 Provided that if an ex-officio Director is unable to attend a meeting 
of the Executive Committee, he may authorize an officer, not below the rank of 
an Additional Secretary of his Department for the purpose.  
(6) A meeting of the Executive Committee may be called if: 
(a) directed by the Board; or 
(b) requested by Directors representing at least three fourths of 
the Directors of the Executive Committee; or 
(c) requested by the Chief Executive Officer of the A uthority 
and approved by the Chairperson/ Vice-Chairperson.  
 
 
(7) The executive committee may constitute such committees as it 
may deem necessary for performance of its functions under the Act. 
 
12. Functions and Powers of the Executive Committee. – (1) The 
Executive Committee shall be responsible for the management and 
administrative functions of the Authority as may be decided by the Board.   
 (2) The Executive Committee shall perform, amongst others, the 
following functions, namely: 
(a) approve PDF funding requests for the Authority up to a 
maximum limit of fifty million rupees and in case a PDF 
funding request exceeds this limit, the Executive Committee 
shall seek approval of the Board;  
(b) approve relevant accounting policies and financial  reporting 
standards and templates for contracting parties; 
(c) approve annual budget of the Authority;  
(d) monitor budget and accounts of the Authority;  
(e) approve the hiring of professional and supporting staff from 
public sector for the Authority as deemed neces sary for the 
performance of the functions of the Authority from time to 
time; 
(f) approve the hiring of professional and supporting staff from 
private sector for the Authority as deemed necessary for the 
performance of the functions of the Authority from time to 
time on competitive market based salaries; 
(g) approve the Human Resource (HR) requirements along with 
HR manual of the Authority including recruitments, terms 
and conditions and perks and privileges as well as 
performance incentives, if any, of the employees;  
(h) approve the appointment of technical professionals and 
other experts, advisers, agents and consultants, including 
but not limited to accountants, bankers, engineers, lawyers, 
valuers for the Authority; and  
(i) perform such other functions as may be presc ribed or 
assigned by the Board.  
 
13. Risk Management Unit .– (1) The Government shall, by notification 
published in the Official Gazette, establish a Risk Management Unit in the 
Finance Department as may be prescribed, to act as a fiscal guardian for the 
projects.  
 (2) The Risk Management Unit shall: 
(a) develop risk management guidelines for approval by the 
Board; 
 
 
(b) provide support and advice to the Authority or any 
Government Agency with regard to risk management in a 
project throughout the public private partnership process; 
(c) examine, in consultation with the PPP Cell, whether 
requests for Government support and the proposed risk 
sharing arrangements are consistent with the Act, rules and 
regulations, and are fiscally sustainable; 
(d) make recommendations to the Board through the PPP Cell; 
(e) recommend the inclusion of approved Government support, 
in the annual budget(s) of the Province as referred in 
section 25; 
(f) make recommendations for making annuity payments as 
referred in clauses (a) and (b) of subsection (5) o f section 
25 of the Act, to the private party of a project (as elaborated 
in the project proposal) referred to it by PPP Cell before 
placing the same in the Board for decision; 
(g) subject to the approval by the Board and signing of the PPP 
agreement for a pro ject, Risk Management Unit work out 
the annual budget requirements for annuity payments 
referred in clause (f) above and forward the same to the 
Finance Department of the Government for inclusion in the 
annual budget of the Province;   
(h) monitor direct and c ontingent liabilities of the Government 
incurred through the projects; and 
(i) perform such other functions as may be prescribed or as 
the Board may assign. 
 
CHAPTER III  
PROJECT DELIVERY PROCESS 
14. PPP arrangements.– Subject to the Act, the Authority may: 
(a) enter into a PPP agreement with a private party for the 
performance of functions in relation to the design and construction 
of a project, or provision of services relating to a project, or 
management of a project, or the provision of finance or technology 
for the design and construction of a project, or the operation of a 
project, or for any one or more of the said functions; 
(b) arrange or provide for any applicable payment to the private party 
in accordance with the terms and conditions of the PPP 
agreement; 
(c) subject to the recommendation of the PPP Cell, seek approval of 
the Board to transfer an interest in a project or part of a project to a 
private party or a nominee of the private party, by transfer, 
assignment, conveyance, lease, license or otherwise; and 
 
 
(d) subject to the PPP agreement, accept the transfer of an interest of 
the private party or a nominee of the private party, in a project or 
part of a project, by transfer, assignment, conveyance, lease, grant 
or surrender. 
 
15. Project identification and preparation.– (1) The Authority shall identify 
and conceptualize potential projects which relate to development activities falling 
within sector or geographical area of the PPP project.  
(2) The Authority shall prioritize the projects and prepare project 
proposals, using criteria such as supply and demand gaps, social and economic 
benefits, financial attractiveness, risks and uncertainties involved, and readiness 
for implementation.  
(3) The Authority shall identify and prepare a project proposal , obtain 
approval of the Board and shall complete this phase before tendering.  
(4) A project proposal shall consist of, amongst other things, an 
analysis of feasibility and sustainability of the project including detailed business 
case and financial model justifying project’s financial and economic viability over 
the expected duration of the project, risk analysis, initial environmental impact 
assessment, analysis of the need for Government support, the affordability of 
the project, determination of the public private pa rtnership modality, and 
preparation of bid documents including a draft PPP agreement.  
(5) The Authority may seek approval of the Board through PPP Cell, 
for availing the Project Development Facility (PDF) funds exceeding the ceiling 
of fifty million rupees for hiring of transaction advisors / consultants if required for 
preparation of PPP project proposals.  
(6) The money spent by the Authority through PDF funds for project 
preparation shall be reimbursed to the Authority by the successful bidder before 
financial close.  
16. Project prioritization and approval.– (1) The Authority shall:  
(a) prioritize the projects that pass the review across sectors and 
the Province by taking into account the policy and the 
development objectives of the Government and submit them 
to the Board through PPP Cell for its consideration and 
approval; and 
(b) maintain a list of approved projects  and publicize the list by 
publishing it on the web. 
(2) The Authority may exercise quality control of project proposals by 
reviewing the viability of a project and the completeness of the proposal in terms 
of documentation.  
17. Approval of Government support.– (1) The Authority shall include all 
requests for Government support as an integral part of a project proposal.  
(2) The Authority shall forward all requests for Government support 
through the PPP Cell to the Risk Management Unit, which shall revi ew their 
 
 
justification and eligibility, and analyze the fiscal impact of the related direct and 
contingent liabilities. 
(3) The Risk Management Unit shall, within thirty days, make through 
the PPP Cell, appropriate recommendations to the Board for approval , rejection 
or reconsideration of the proposed Government support / availability based 
payments.  
(4) If approved by the Board, the Government shall make necessary 
arrangements for the availability of funds during project life cycle through its 
inclusion in the annual budgetary process.  
18. Consideration by the Board .– (1) The Board shall, by taking into 
account the recommendations of the PPP Cell and the Risk Management Unit, 
consider a project proposal submitted by the Authority and may, within thirty 
days from the receipt of such proposal, either approve the proposal with  or 
without modification, or reject it or return it to the Authority for amendment and 
resubmission.  
(2) In case a project proposal is returned for amendment, restructuring 
and resubmission, the Authority shall take suitable action to amend the project 
proposal and resubmit the proposal for consideration and approval within thirty 
days of such resubmission by the Board and any decision concerning such 
resubmitted proposal shall be taken by the Board. 
19. Selection of the private party .– (1) After the appro val of the project 
proposal by the Board, the Authority shall select a private party for the project 
through competitive public tendering, using a process of prequalification and 
bidding. 
 (2) The Authority shall not enter into direct negotiations with any  
person without competitive public tendering. 
20. Pre-qualification.– The Authority shall conduct pre -qualification, where 
necessary, in the following manner: 
(a) a public notice inviting participation in pre -qualification for 
undertaking a project shall be published on the websites of 
the Authority and Punjab Procurement Regulatory Authority 
established under section 3 of the Punjab Procurement 
Regulatory Authority Act 2009 ( VIII of 2009) , and also in at 
least two daily national newspapers for national comp etitive 
bidding and additionally in one international newspaper for 
international competitive bidding providing at least fifteen 
days for national competitive bidding and thirty days for 
international competitive bidding for preparation of pre -
qualification application; 
(b) for a project with a total cost equal to or exceeding four 
billion rupees, the pre -qualification notice shall also be 
published in at least one international newspaper; 
(c) a person who intends to participate in the pre -qualification 
shall provide information with regard to his legal, technical, 
 
 
managerial and financial capacity to undertake the project in 
such form along with such particulars as may be specified by 
the Authority;  
(d) in case the person is a consortium, its members and their 
roles a nd proposed shareholding shall be disclosed at the 
pre-qualification stage, and the consortium shall provide a 
written and legally enforceable undertaking from its 
members to be jointly and severally liable if awarded the 
contract, for the obligations of the private party;  
(e) the Authority shall examine the information and other 
particulars submitted by the person and shall, within thirty 
days, decide as to whether such person fulfills the criteria 
for prequalification as laid down by the Authority;  
(f) a person  who fulfills the criteria shall be a pre -qualified 
person; 
(g) if less than three persons are pre-qualified, the Authority may 
analyze the reasons for such response and either proceed 
for bidding after recording the reasons, or revise project 
structuring, and  reinitiate the pre -qualification process for 
additional participants; 
(h) if a consortium is a pre -qualified person, the lead 
consortium member shall not be replaced earlier than four 
years after the commissioning of the project without the 
approval of the Bo ard and no such approval shall be given 
unless the consortium finds a suitable replacement with 
equal or better qualifications for replacing the withdrawing 
member;  
(i) subject to approval by the Board through the PPP Cell, any 
other member of a consortium may, prior to execution of the 
PPP agreement or during the term of the PPP agreement, 
withdraw, provided that the remaining members are still 
legally, technically and financially capable of successfully 
carrying out the implementation and operation of the 
project, or that an acceptable substitute with equal or better 
qualifications is available to replace the withdrawing 
member;  
(j) any change in the shareholding of the consortium shall also 
be subject to approval of the Board; and  
(k) if the consortium fails to co mply with the requirement of 
clause (h), clause (i) or clause (j), the consortium shall 
cease to be a prequalified person. 
21. Bidding.– (1) After selecting pre -qualified persons, the Authority shall, 
within seven days from the completion of the pre -qualification process, issue bid 
documents to the prequalified persons and shall give adequate time to pre -
qualified persons for preparation and submission of bids. 
 
 
(2) The Authority may adopt single stage two envelop or two stage two 
envelop bidding process in the prescribed manner. 
(3) The bid documents shall include– 
(a) instructions for bidders; 
(b) minimum design and performance standards and 
specifications; 
(c) draft PPP agreement; 
(d) bid form, specifying the information required to evaluate the 
bid and the bid evaluation criteria; 
(e) bid security form and performance bond form; and 
(f) any other document relevant to the project, such as the 
feasibility study and environmental impact assessment.  
(4) To provide clarifications to bidders and to discuss the terms and 
conditions of the PPP agreement, the Authority shall, within such period as it 
deems reasonable, conduct a pre -bid meeting with the bidders and may, if 
necessary, issue addendum to the bidding documents. 
(5) If only one valid bid is received up to the last date for subm ission 
of bids, the Authority may evaluate it, and depending on the results of such 
evaluation and after recording reasons: 
(a)  negotiate or enter into the PPP agreement with the said 
single bidder; or 
(b)  after a market research to ascertain the reasons  for the 
poor response to the call for bids, restructure the project 
proposal and the proposed Government support  and submit 
the revised proposal to the Board.  
(6) The Board shall deal with the revised proposal in the same manner 
as is prescribed for a new proposal for a project. 
 
22. Single stage three envelope bidding .– (1) Notwithstanding anything 
contained in section 20 and 21, the Authority may, with prior approval of Board, 
combine the processes of pre -qualification and bidding through single stage 
three envelopes process in the prescribed manner. 
(2) In case of single stage three envelopes bidding process– 
(a) the Authority shall first open the envelope relating to pre -
qualification of a person, and if the person is not 
prequalified, the other two envelopes submitted by such 
person shall not be opened at any stage; and 
(b) the PPP Cell, Risk Management Unit and the Authority shall 
observe such timelines as may be prescribed. 
 
23. Bid evaluation .– (1) The Authority shall, within fifteen days from the 
receipt of the bids, evaluate the bids.  
 
 
(2) On receipts of bids, the Authority shall assess the technical, 
operational, and environmental responsiveness of the bids received, according 
to the requirements, criteria, minimum standards, and basic parameters 
specified in the bid documents, and shall reject non-responsive bids.  
(3) After the technical evaluation of the bids, the Authority shall 
conduct a financial evaluation of the responsive bids; and, depending on the 
type of the project, it may use one or mor e of the following parameters for the 
evaluation: 
(a) lowest proposed tariff, toll, fee or charge at the start of 
operation of the project if a parametric formula for periodical 
tariff adjustment is specified in the bid documents; 
(b) lowest present value of the p roposed tariffs, tolls, fees and 
charges for the period covered under the PPP agreement if 
there is no such formula; 
(c) lowest present value of payments from the Government; 
(d) lowest present value of Government subsidy to be provided 
for the period covered under the PPP agreement; 
(e) highest present value of the proposed payments to the 
Government, such as concession fees, lease or rental 
payments, fixed or guaranteed payments or variable 
payments and percentage shares of revenues for the period 
covered by the PPP agreement; or 
(f) such other parameters as are determined by the Board on 
the recommendation of the PPP Cell, or the Risk 
Management Unit.  
(4) The Authority with the prior approval of the Board may reject a 
speculative or unrealistic bid as non -responsive but such rejection of a bid shall 
not lead to the termination of the bidding process.  
(5) If the result of bidding process leads to a bid conforming to the 
project estimate, type of PPP agreement and Government support if approved 
by the Board, the Authority may proceed with execution of the PPP agreement.  
(6) If the lowest bid is higher than project estimate or in case there is a 
need to restructure the project or type of PPP agreement, the same shall be 
submitted to the Board for approval.  
(7) The lowest / successful bidder may, at his own motion without any 
negotiation by the Government, voluntarily reduce the bid amount at any stage 
before entering into PPP agreement with prior notice to the Board. However, 
such voluntarily reduction must not affect any change in the approved terms and 
conditions of his prequalification and bid document.  
(8) The Authority shall announce the result of the bidding process and 
issue a notice for execution of PPP agreement to the selected private party 
within ten days of the bid evaluation or approval of the Board, if applicable.  
 
 
 
24. Bid security.– (1) A pre -qualified person shall deposit with the Authority 
the bid security along with financial bid equivalent to the amount as determined 
by the Authority based on the project cost.  
(2) The Authority shall, within thirty days after the award, return the bid 
security amount to all unsuccessful bidders in the prescribed manner.  
 
25. Government support.– (1) The Authority shall indicate the Government 
support, if any, approved by the Board for a project.  
(2) The Government support may take the following forms: 
(a) administrative support to the private party in obtaining licenses 
and other statutory and non -statutory clearances from the 
Federal Government, any public sector organization or a 
Government Agency for purposes of the project on such terms 
and conditions as may be prescribed: such support shall be 
available for all types of projects; 
(b) provision by public sector organization of utility connections 
for power, gas and water at project site; clearance of right of 
way or acquisition of land necessary for the project; and, 
rehabilitation and resettlement necessitated because of the 
execution of the project: such support shall be available for 
all types of PPP projects;  
(c) Government equity, in the form of land or infrastructure 
facilities owned by the Federal  Government or the 
Government or a Government Agency, to be calculated with 
reference to the current market value of land or infrastructure 
or future value of discounted cash flows accruing or arising 
from asset to be offered, with reference to the project cost and 
its capital structure or debt equity ratio: such support on first 
come first served basis shall be available for the projects 
where the bidding competition is not instantly expected; 
(d) the Board may identify projects where there appears to be a 
supply side constraint, leading to no competition or little room 
for competition and standard terms and rates are to be 
offered to all private parties: the projects falling under such 
sector, requiring Government support as specified in this 
section including  Government equity participation, direct 
financial assistance through Viability Gap Fund or other 
asset based facilitation, may be referred by the Authority 
through PPP Cell for a decision of the Board and in such 
projects, the Board may (by recording the reasons in writing) 
approve Government support on first come first served basis, 
for specific duration or window of opportunity;  
(e) Government  grants under the Government’s control such 
as changes in the law, delay of agreed user levy 
adjustments, early termination of the PPP agreement owing 
to no fault of the private party, and expropriation: such of 
support shall be available for all projects;   
 
 
(f) Government guarantees for other risks such as demand 
risk, and default by the Authority on payments due under a 
PPP agreement: the need for this type of support shall be 
determined on case to case - basis as part of the risk 
sharing analysis undertaken during project negotiations.  
(3) Where after approval of the Board, the Authority decides to offer 
Government support on first come first serve basis, it shall invite proposals 
through wide publicity. 
(4) (a)  Direct financial assistance from the Viability Gap Fund: such 
support may be offered for projects which, in the opinion of the Board, are 
economically and socially viable, but may not be financially attractive enough for 
investment; and  
(b) Government shall ensure that adequate resources are annually 
allocated through Annual Development Program (ADP) and disbursed to PPP 
Cell as Viability Gap Fund to meet its annual obligations for the projects 
approved for such funding by the Board.  
(c) All the Viability Gap Fund support for the PPP project(s) shall be  
clearly indicated in the bidding documents and included in the PPP agreement 
with the approval of the Board.  
(5) (a) In case of availability based payments, subject to approval by 
the Board, the Authority shall ensure payment to the private party through  
budgetary allocations made by the Government during lifecycle of Project (by 
means of annuity payments) to cover the approved bid cost of provision of 
infrastructure and/or services fully or partially, in accordance with the approved 
terms and conditions of the PPP agreement. 
(b) On the recommendation of Risk Management Unit as referred in 
section 13(2) hereof, Finance Department of the Government shall ensure 
provision of requisite funds to the Authority for making annuity payments to the 
private party as set out in section 25(5)(a), in the annual budgets of the Province 
with prior approval of the Government.    
 
26. Unsolicited proposals.– (1) A project proposal submitted by a person to the 
Authority for a project, together with a written confirmation that it is economically 
viable, shall be considered as an unsolicited proposal.  
(2) An unsolicited proposal shall be accompanied by a feasibility study, 
environmental impact statement, and a draft PPP agreement, need for Government 
support and determination of the public private partnership modalities.  
(3) The Authority shall consider an unsolicited proposal from all aspects 
including technical, environmental and financial aspects, and in case of requirement 
of additional information, the Authority may request for the submission of a n 
amended or modified proposal.  
(4) Within seven days from the receipt of an unsolicited proposal, the 
Authority shall require the person to submit details about legal, technical, managerial 
and financial capability of the person, as well as the cost of preparing the unsolicited 
bid with relevant supporting evidence for its consideration and such information shall 
 
 
be submitted to the Authority within seven days from the receipt of such 
requirement.  
(5) Within seven days from the receipt of information required under 
subsection (4), the Authority shall evaluate the unsolicited proposal and, if it is found 
to be economically, technically and environmentally feasible and the information 
submitted by the person about his own legal, technical, managerial and financial 
capability is satisfactory, t he Authority may submit the unsolicited proposal to the 
PPP Cell and Risk Management Unit. Thereafter the PPP Cell shall submit its 
recommendations to the Board along with input of the Risk Management Unit. The 
Board, thereafter, shall make a decision on such proposal.  
(6) The decision of the Board with regard to an unsolicited proposal shall 
be communicated in writing by the Authority to the person who submitted such 
proposal within seven days from the receipt of the decision of the Board.  
(7) If the Board approves the unsolicited proposal, the Authority shall invite 
competitive bids for the project identified in such proposal by following the bid 
procedure described in sections 19 to 24 and, if prequalification is conducted, the 
person submitting the uns olicited proposal shall not be required to be pre -qualified 
and may directly participate in the bidding process. 
(8) The Authority shall give the person who made the unsolicited proposal 
five percent additional weightage in technical scoring and first righ t to match or 
improve the best bid received in response to the call for bids, if its bid is not the best 
bid.  
(9) If the person who submitted the unsolicited bid fails to match the best 
bid, the Authority shall direct the successful bidder to reimburse to  the person who 
submitted the unsolicited proposal the amount specified in the bid documents as the 
cost of preparing the unsolicited bid but the reasonability of the cost of preparation of 
unsolicited proposal shall be determined by the Authority.  
(10) If other valid competitive bids, except the bid of the person who 
submitted the unsolicited proposal, are not received, the  Authority may negotiate the 
PPP agreement with the person who submitted the unsolicited proposal or decide with 
prior approval of the Board to undertake the bidding process afresh by following the 
procedure described in sections 19 to 24, after recording the reasons for re-bidding. 
(11) In case more than one unsolicited proposals are submitted for a specific 
project to the Authority, the Board may accept the best case option out of the said 
proposals on the recommendations of the PPP Cell, and thereafter, such proposals 
shall be processed in the manner as stated in subsections (2) to (10) above.  
 
27. Non observance of timelines .– Subject to section 6(3), if the PPP Cell, the 
Risk Management Unit or the Authority fails to observe the timelines mentioned in 
the Act or the rules, the Board after a prior notice may direct the PPP Cell to place 
the proposal before the Board and the Board may consider the proposal assuming 
that the Authority and Risk Management Unit have no objection to the project 
proposal.  
 
28. Preparation and negotiation of PPP agreement .– (1) The draft PPP 
agreement which forms part of the bid documents shall clearly define the legal 
 
 
relationship between the Authority and the selected private party, their rights and 
responsibilities including the specific Government support for the project. 
(2) The draft PPP agreement shall contain the following provisions, as 
applicable:- 
(a) type of the project; 
(b) general terms and conditions of contract; 
(c) special conditions of contract; 
(d) scope of works and services to be provided under the project; 
(e) main technical specifications and performance standards; 
(f) environmental and safety requirements; 
(g) implementation milestones and completion date of the project; 
(h) Cost recovery scheme through user levies, including 
mechanism for their periodical adjustment; 
(i) performance bonds for construction works and operation; 
(j) minimum insurance coverage; 
(k) acceptance tests and procedures; 
(l) rights and obligations of the parties including risk sharing; 
(m) type and amount of Government support; 
(n) amount of availability based payments (on annuity basis); 
(o) transfer of assets, if any, at the conclusion of the term of the 
PPP agreement; 
(p) warranty period and procedures after the transfer; 
(q) requirements and procedure for variations of the PPP 
agreement; 
(r) grounds for and effects of termination of the PPP agreement 
including force majeure; 
(s) procedures and venue for disputes resolution; 
(t) financial reporting by the private party; and 
(u) supervision mechanism of the Authority. 
(3) The Authority shall not enter into a PPP agreement except in 
accordance with the procedure mentioned in the Act and the rules.  
(4) The Authority shall ensure co nclusion of contract negotiations with the 
selected private party within thirty days of receipt of the approval of the bid by the 
Board.  
(5) The negotiations shall focus on the terms and conditions not specified 
in the bid documents but no post-bid changes in the terms and conditions mentioned 
in the bid documents, as binding and which formed part of the bid evaluation, shall 
be allowed as a consequence of contract negotiations.  
 
 
 
29. Project implementation and operation .– (1) Before signing the PPP 
agreement with the Authority, the private party may establish, without changing its 
shareholding, a Special Purpose Vehicle (SPV) for implementation  and operation of 
the project and such SPV shall assume all the rights and obligations of the private 
party under the PPP agreement. 
(2) The private party shall prepare a detailed design and implementation 
plan in accordance with the technical specificatio ns contained in the PPP 
agreement, and shall submit these to the Authority for consent prior to the start of 
the work. 
(3) The private party shall execute the project in accordance with the 
performance standards and technical specifications contained in the PPP agreement 
and the design and implementation plans approved in accordance with the PPP 
agreement. 
(4) To guarantee its performance in the construction works, the private 
party shall post a bond or furnish a bank guarantee, which shall be valid up to t he 
acceptance of the completed works by the Authority and for projects which include 
operation by the private party, the private party shall also post or furnish another 
performance bond or bank guarantee upon the acceptance of the completed works 
to guarantee compliance with the operating parameters and standards specified in 
the PPP agreement. 
(5) Within one hundred and eighty days of the signing of the PPP 
agreement or such other period as is specified in the PPP agreement, the private 
party shall achieve financial closure for the project. 
(6) The Authority shall not allow variations in the PPP agreement during 
the implementation and operation of the project unless the following requirements 
are met:- 
(a) There is no increase in the agreed tariffs except the periodic 
formula-based tariff adjustments, unless the scope of works or 
performance standards are increased; 
(b) There is no reduction in the scope of works or performance 
standards, fundamental change in the contractual arrangement 
or extension of the term of  the PPP agreement, except in cases 
of breach by the Authority of its obligations; 
(c) There is no additional government guarantee or increase in the 
financial exposure of the Government;  
(d) The variation in the PPP agreement is necessary due to an 
unforeseeable event beyond the control of the Authority or the 
private party; and 
(e) Any such change is approved by the Board.  
(7) The Authority shall supervise and evaluate the project during its 
implementation and operation to ensure its conformity with the plans, specifications, 
performance standards and user levies set forth in the PPP agreement, and to assess 
its actual outcomes.  
(8) The Authority shall submit biannual reports on project performance to 
the Board.  
 
 
 
30. Setting and adjustment of user levies .– (1) The Authority shall set the user 
levies at levels that ensure financial viability of the project by fully covering the 
capital, operation and maintenance costs plus a reasonable rate of return to the 
private party or the Authority.  
(2) Notwithstanding anything contained in any other law, the private party 
shall have the right to receive or collect tariffs or payments in accordance with and at 
the rates set forth in the PPP agreement, either from end users or from the Authority.  
(3) Unless specified  in the bid documents, the Authority shall determine 
the user levies through bidding and the user levies shall be adjusted periodically 
during the term of the PPP agreement in accordance with the terms and conditions 
of the PPP agreement.  
(4) If the Autho rity keeps the user levies at lower levels to make the 
services provided by the project affordable to the end users, the Authority shall 
compensate the private party for the difference by making appropriate payments as 
agreed in the PPP agreement through Viability Gap Fund.  
 
31. Dispute resolution .– (1) In case of any dispute between Authority and a 
private party in relation to or arising out of the PPP agreement, the parties shall 
resolve the dispute in the following manner:- 
(a) The parties shall first deliberate to achieve a consensus;  
(b) If no consensus is achieved, the parties shall settle the dispute 
in an amicable manner by mediation by an independent and 
impartial person appointed by the Board; and 
(c) If no amicable settlement of the dispute has been reached  by 
mediation, the parties shall resolve the dispute by arbitration in the 
city of Lahore or any other place, agreed to by the parties, in 
Pakistan in accordance with the arbitration clause contained in the 
PPP agreement and the arbitral award may be enfor ced in any 
court of competent jurisdiction.  
(2) The disputes shall be decided in accordance with the laws of Pakistan 
and pursuant to the Arbitration Act, 1940 (X of 1940), or any amending/repealing law 
thereof or under any other law as may be specified in the PPP agreement.  
 
32. Termination of the PPP agreement .– A party to the PPP agreement may 
terminate the agreement in the following cases:- 
(i) If the Authority fails to comply with any major obligation in the PPP 
agreement, and such failure is not remedia ble or, if remediable, 
remains un-remedied for a period of time as set out in the agreement, 
the private party may terminate the agreement with written notice to 
the Authority as provided in the PPP agreement and, in the event of 
such termination, the proj ect shall be transferred to the Authority and 
the private party shall be entitled to compensation by the Authority as 
provided in the PPP agreement; or 
 
 
(ii) If the private party fails to perform the agreement, or fails to achieve 
the prescribed technical and performance standards, or fails to comply 
with any major obligations in the PPP agreement, and such failure is 
not remediable or, if remediable, remains u n-remedied for a period of 
time as set out in the agreement, the Authority may terminate the 
agreement with written notice to the private party as provided in the 
PPP agreement and, in such a case, the Authority shall either take 
over the project and assume all related liabilities or allow lenders of the 
private party to exercise their rights and interests as specified in the 
loan agreements relating to the project; or 
(iii) (a) If, either party to PPP agreement is unable to perform in whole or in 
part(s) its obl igations as set forth in the PPP agreement due to 
force majeure , then such party shall give the other party prompt 
written notice of such cause, and shall be relieved of those 
obligations to the extent it is unable to perform for as long as such 
cause continues or for a period as set forth in the PPP agreement, 
whichever is less;   
(b) If after expiry of such period, the party affected by such force 
majeure is unable to continue performance of its obligations, the 
PPP agreement may be terminated in accordan ce with procedure 
laid down in the PPP agreement;  
(c) In case of termination due to force majeure , the allocation of the 
risk and compensation formulae to be applied in such instance shall 
be set forth in the PPP agreement.  
 
33. Vesting of the project in the private party.– Subject to the PPP agreement, 
the completed project may vest in the private party for a period not exceeding thirty 
years and on expiry of such period, the project shall vest in the Authority.  
 
34. Transfer of the project.– Upon completion of the tenure of a PPP agreement 
for a project and transfer of such project to the Authority, all assets, benefits, claims, 
rights, and obligations (if any) of the said project shall be transferred by the Authority 
to the respective Government Agency subject to the approval by the Board.  
 
CHAPTER IV 
MISCELLANEOUS 
 
35. Conflict of interest.– (1) A Member or Director shall not, directly or indirectly, 
receive any profit from his position as a Member or Director 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 Director shall also be considered 
the pecuniary interests of the Member or Director. 
(3) A Member or Director shall be in conflict of interest if he: 
(a) is an employee, or a paid consultant of a private party or a 
consortium or lender of the private party or consortium; or  
 
 
(b) owns, controls, or has direct or indirect interest in a business 
venture of a private party or a member of a consortium; or 
(c) receives any income from a business venture of a private party 
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 benefit 
either directly or indirectly, financially or otherwise, from his 
position on the Board or the Authority.  
(4) A Member or Director shall disclose a potential, real or perceived 
conflict of interest as soon as he becomes aware of the potential conflict to the 
Board or its Chairperson and Vice Chairperson or Executive Committee, if the 
meeting of the Board or Executive Committee has not been convened.  
(5) If a Member or Director is not certain about the conflict of interest 
situation, he shall bring the matter before the Board or Authority for advice.  
(6) The decision of the Board on conflict of interest shall be final.  
(7) A Member or Director shall not take part in the proceedings of the 
Board or Executive Committee in which any question of his conflict of i nterest is on 
the agenda.  
(8) The disclosure of conflict of interest and the decision of the Board or 
Executive Committee shall be recorded in the minutes of the meeting of the Board or 
Authority. 
 
36. Disclosure of generic risks .– (1) The Authority shall , as far as possible, 
provide in the PPP agreement, or any other ancillary or additional agreement(s), a 
list of generic risks involved in the project along with allocation and treatment of such 
generic risks. 
(2) The Government or the Authority shall not be liable to any claim of the 
private party for a generic risk which is not specified in the PPP agreement or any 
other ancillary or additional agreement(s).  
 
37. Integrity pact.– The Authority shall, for every project, enter into an integrity 
pact with the private party along with the PPP agreement.  
 
38. Public disclosure.– (1) A PPP agreement or any other ancillary or additional 
agreement shall be a public document.  
(2) The Aut hority shall make arrangements for inspection or provision of 
copies of a PPP agreement or any other ancillary or additional agreement(s). 
(3) Any person may, subject to the payment of the prescribed fee and any 
other reasonable restriction, inspect or obt ain copies of a PPP agreement or any 
other ancillary or additional agreement(s). 
(4) The Board may, by recording reasons in writing, declare the whole or 
part of a document not to be a public document.  
 
39. Prescribing and enforcing standards .– The Authority with the approval of 
the Board may– 
 
 
(a) prescribe and enforce performance standards for a project 
including standards of performance of the private party in regard 
to the services to be rendered by it to the end users; 
(b) prescribe quality standards including  standards of materials, 
equipment and other resources or processes relevant to 
infrastructure projects including planning criteria, construction 
practices and standards of such facilities, operating standards 
and maintenance schedules for regulating the w orking of the 
private party to ensure efficiency and adherence to the 
prescribed quality standards;  
(c) prescribe the mode of output -based contracting, performance -
based payment systems and output -based procurement 
procedures; 
(d) establish a uniform system of ac counts to be followed by the 
private party; 
(e) take steps to promote effective competition and efficiency in 
projects using the public private partnership approach; 
(f) prescribe the mode of conducting public hearing and 
consultation with stakeholders; and 
(g) prescribe any other standards for regulating the infrastructure 
development through public private partnership. 
 
40. Indemnity by the private party .– The private party shall indemnify the 
Authority against any defect in design, construction, maintenance or opera tion of the 
project and be liable to reimburse all costs, charges, expenses, losses and damages 
suffered by the Authority or an end user due to any such defect. 
 
41. Recovery of costs, dues and fees .– (1) The Authority may recover the sum 
due from the private party as ascertained through the dispute resolution procedure 
under the Act as arrears of land revenue under the Punjab Land Revenue Act, 1967 
(XVII of 1967). 
(2) The Authority shall designate a n officer as Collector to exercise the 
powers of the Collector under the Punjab Land Revenue Act, 1967 (XVII of 1967) for 
recovery of arrears under subsection (1). 
 
42. Protection of actions taken in good faith .– No suit, claim or other legal 
proceedings s hall lie against the Board or the Authority, as the case may be, the 
Authority or any member, director, officer, servant, adviser or a representative of the 
Board or Authority in respect of anything done or intended to be done in good faith 
under the Act or under any rules or regulations made under the Act. 
 
43. Power to make rules .– The Board, on the recommendation of the Executive 
Committee, may, by notification in official Gazette, make such rules as may be 
required to carry out the purposes of the Act.  
 
 
 
44. Power to frame regulations.– Subject to the Act and the rules, the Authority 
may, with the prior approval of the Board, by notification in the official Gazette, frame 
regulations for carrying out its functions under the Act.  
 
45. Applicability to Go vernment Agencies. – (1) The Authority, may, with the 
approval of the Board, seek inclusion of a Government Agency:  
(a) for undertaking the role assigned to the Authority independently 
or jointly with the Authority for a project in such way as may be 
required by the Authority; or 
(b) to assist and facilitate the Authority in connection with a project 
in such way as may be required by the Authority.  
 (2)  A Government Agency under sub section (1) , shall be obligated 
to assist the Authority in such manner as may be required by the Authority. 
 
46. Appointment by transfer. – (1) The Government may, on the request of the 
Authority, allow transfer of the services of a Government employee to the Authority  
on the terms and conditions as approved by the Board in case of Chief Executive 
Officer; and as approved by the Executive Committee, in case of other categories of 
the officers / officials respectively, which shall not be less favorable than those 
admissible to him immediately before his transfer to the Authority.  
(2) An employee transferred under subsection (1) shall continue to be the 
employee of the Government, liable to be transferred back to the Government as 
and when required by the Government.  
 
47. Public servants.– The Chairperson, Vice Chairperson, Members, Directors, 
Employees of the Authority 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).  
 
48. Authority Fund.– (1) The Authority shall administer and manage a Fund to 
be known as the Authority Fund comprising of the following:  
(a) such sums as the Federal Government may from time to time 
grant or lend;  
(b) such sums as the Government may from time to time grant or 
lend;  
(c) such sums as the Board may allow as operational cost of the 
Authority - to be charged from private party in accordan ce with 
its approved terms and conditions of the PPP agreement during 
concession period of the project, provided that such sums must 
not exceed one percent of the total approved project cost, and 
in case such sums in a financial year exceed the operational  
expense of the Authority-the excess amount shall be transferred 
to PDF/ VGF funding accounts as may be prescribed by the 
Finance Department; 
(d) grants or funds provided to the Authority by international donor 
agencies, bodies through Government; and  
 
 
(e) grants or loans raised or otherwise obtained by the Authority 
from any lender for the purposes of the Act or the working of the 
Authority with prior approval of the Government.  
(2) The Authority shall meet its operational expenses from the Authority 
Fund as may be prescribed.  
(3) The Authority shall open and maintain its accounts at such scheduled 
banks as may be prescribed by the Finance Department of the Government and until 
so prescribed as the Executive Committee may determine.  
(4) Revenue share from PPP agreement(s), if any, shall not constitute part 
of the Authority Fund and shall be maintained in a separate account(s) as prescribed 
by the Finance Department of the Government.  
 
49. 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 such form and manner as may be 
prescribed. 
(2) The financial year of the Authority shall be the same as that of the 
Government and upo n the conclusion of a financial year, the Authority shall, in the 
manner prescribed, cause to be prepared for each financial year, statements of 
accounts of the Authority which shall include a balance sheet and an account of 
income and expenditure. 
(3) No expenditure for which provision has not been made in the approved 
budget shall be incurred without prior approval of the Policy Board. 
 
50. 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 report prepared by the Auditor General of Pakistan. 
 
51. Overriding provision.– Notwithstanding anything contained in any other law, 
the provisions of the Act shall have effect to the extent of the projects under the Act. 
 
52. Transition provision.– A PPP agreement 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 agreement. 
 
53. Repeal and savings .– (1) The Punjab Public Private Partnership Act 2014 
(IX of 2014) is hereby repealed. 
(2) Notwithstanding repeal of the Punjab Public Private Partnership Act 
2014 (IX of 2014) , anything done or any action taken or purported to have been 
done or taken under Act IX of 2014 shall, in so far as it is not inconsistent with the 
provisions of the Act, be deemed to have been done or taken under the 
corresponding provisions of this Act. 
(3) Notwithstanding the repeal of the Punjab Public Private Partnership 
Act 2014 (IX of 2014) , the Government's Notification dated October 10, 2007, 
 
 
bearing reference No. E&A (P&D)1 -285/2007 and other related notifications issued 
from tim e to time establishing the PPP Cell and Risk Management Unit shall 
continue to remain in force. 
(4) Notwithstanding anything contained in the Act or any other law for the 
time being in force or in any agreement, deed, document or other instrument, all 
employees of the Risk Management Unit shall be deemed to be employees of the 
Risk Management Unit as mentioned in section 13 of the Act, on the terms and 
conditions not less favourable than the existing terms and conditions of the service, 
rights and privilege s and other matters as were applicable to them immediately 
before such continuance in office or transfer under the Act. 
(5) All debts and obligations incurred or contracts entered into or rights 
acquired and all matters and things engaged to be done by, wi th or for the PPP Cell 
/ Risk Management Unit shall be deemed to have been incurred, entered into, 
acquired or engaged to be done under the Act. 
(6) All suits and other legal proceedings instituted by or against the PPP 
Cell shall be deemed to be suits and  proceedings under the Act and shall be 
proceeded or otherwise dealt with accordingly. 
(7) A reference to the PPP Cell/RMU in any statutory instrument or 
document shall, unless the context otherwise requires, be read and construed as 
reference to the Act. 
 
54. Repeal.– The Punjab Public Private Partnership Ordinance 2019 (XI of 2019) 
is hereby repealed.