Roads
-
Road Network Length
259,197 km
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Road Infrastructure Quality
4
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Number of PPPs Reaching FC
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Value of PPPs Reaching FC
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Number of PPPs with Foreign Sponsors
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Number of PPPs with Govt. Support
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FC = financial closure, Govt. = government, km = kilometer.
Note: Quality of road infrastructure: 1 (lowest) – 7 (highest).
Sources: Government of Pakistan, Finance Division. 2020. Pakistan Economic Survey 2019–2020. Islamabad. https://pc.gov.pk/uploads/cpec/PES_2019_20.pdf; Trading Economics. Pakistan-Road Total Network; and The Global Economy. Compare Countries. https://www.theglobaleconomy.com/compare-countries/ (accessed 10 September 2020).
Roads
Contracting Agencies
The National Highway Authority (NHA) is responsible for managing the design, development, and operation of a 12,000-kilometer (km) network of national highways and motorways. The NHA is empowered, under the NHA Act, to initiate, operate, and award projects through private sector financing. Depending on the nature of the project, the NHA could be assisted by the central Public–Private Partnership (PPP) Unit of Pakistan, or the local PPP cells. Although these entities are not the contracting agencies, they still play a role in the procurement process.
Roads
Sector Laws and Regulations
According to the Private Participation in National Highways Policy, concessionaires will be given the right to collect toll at locations they consider appropriate and are approved by the NHA, within their specified concession area. The NHA procured five projects under the PPP modality—i.e., build–operate–transfer (BOT) before operationalization of the Federal Public Private Partnership Authority (P3A). The new projects are being taken up in accordance with the PPPA Act.
The PPP Unit of the NHA (or the PPP Cell) was established comprising of highly professional and committed staff. It is responsible for developing and processing all PPP projects. In 2009, the NHA issued the standard operating procedures (SOPs), which serve as the policy and regulatory framework for private sector participation in the road sector (called the PPP Policy and Regulatory Framework).
As per the SOPs, the NHA shall prepare and regularly update the PPP Highway Programme comprising national highway, motorway, tunnel, and bridge projects that may be suitable for private sector participation. The NHA shall carry out all PPP projects, whether solicited or unsolicited (unsolicited projects are considered only in exceptional cases), using standard bidding procedures. The SOPs indicate that the PPP program shall be developed within the national transport policy and sector program for Pakistan wherein pre-feasibility studies will determine the characteristics and viability of each PPP project.
The SOPs further elaborate on principles of tolling (Toll Policy), operation and maintenance (Operational and Road Management Policy), financial and contractual arrangements, incentives, security package, and PPP tendering process and requirements.
Foreign Investment Restrictions
The maximum equity investment allowed for foreign investors in greenfield projects is 100%.
Parameter 2017 2018 2019 Maximum allowed foreign ownership of equity in greenfield projects 100% 100% 100% Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Standard Contracts
Type of Contract Availability PPP/concession agreement Performance-based operation and maintenance contract Engineering, procurement, and construction contract - Yes
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Roads
Sector Master Plan
As per the PPP Policy and Regulatory Framework issued by the NHA, the NHA shall prepare and update on a regular basis a list of projects on national highways, motorways, tunnels, and bridges. The PPP Cell of the NHA shall conduct pre-feasibility studies following the issued guidelines and prepare a pipeline of projects for private sector participation.
The NHA website provides a list of PPP projects. The latest information available on this website includes project updates up to October 2018. In addition, the NHA also published the PPP project plan for 2019–2020.
Road Sector Projects in Pakistan at Various Stages
Project Length Project Cost Project Scope Status (km) ($ million) (PRs million) Hyderabad–Sukkur Motorway (M-6) 300 1,117.21 1,73,000 Construction of new six-lane motorway Design completed, feasibility in hand, procurement to be initiated. Proposed on PPP as per PSDP 2019–2020. Sialkot–Kharian Motoway 70 258.32 40,000 Construction of new six-lane motorway Design and feasibility stage. Proposed on PPP as per PSDP 2019– 2020. Kharian–Rawalpindi Motorway 115 484.34 75,000 Construction of new six-lane, divided motorway Procurement of consultant for design and feasibility initiated. Proposed on PPP as per PSDP 2019– 2020. Karachi Northern Bypass (M-10) 50 64.58 10,000 Conversion of existing two-lane into four-lane divided facility Preparation stage. Proposed on PPP as per PSDP 2019– 2020. Nowshera–Peshawar Highway (N-5) 43 71.04 11,000 Conversion of existing four-lane into six-lane expressway on BOT basis Preparation stage Pindi Bhattian Faisalabad– Multan Motorway (M-4) 294 516.63 80,000 Conversion of existing four-lane into a six-lane motorway plus overlay on existing four lanes Preparation stage Operation Concessions of N-5 Operating concession of identified stretch of national highways and motorways Preparation stage Southern Bypass Peshawar To be defined 64.58 10,000 Construction of new road Preparation stage Southern Bypass Hyderabad To be defined 77.49 12,000 Construction of new road Preparation stage Dualization and Rehabilitation of Karachi–Quetta–Chamman Road (N-25) 790 129.00 20,000 Conversion of existing two-lane into four-lane dual carriageway Proposed on PPP as per PSDP 2019– 2020. Chakdara–Bagh Dheri extension of Swat expressway 71 … … Construction of new four-lane motorway Proposed on PPP as per PSDP 2019– 2020. Construction of Shahdara flyover bridge To be defined 32.28 5,000 Construction of four-lane flyover bridge Preparation stage. Proposed on PPP as per PSDP 2019– 2020. Construction of additional carriageway from Balkasar (M-2) to Mianwali 130 206.64 32,000 Conversion of existing two-lane into four-lane dual carriageway Preparation stage. Proposed on PPP as per PSDP 2019– 2020. Dualization of Mianwali– Muzafargarh Section 290 464.93 72,000 Conversion of existing two-lane into four-lane dual carriageway Preparation stage. Proposed on PPP as per PSDP 2019– 2020. Nullah Lai Transportation Corridor 23 … … Construction of new urban expressway Rawalpindi Development Authority is the procuring authority for this project. … = data not available, BOT = build–own–operate, km = kilometer, PRs = Pakistan rupees, PSDP = Public Sector Development Program.
Sources: Asian Development Bank; Government of Pakistan, National Highway Authority (NHA). List of Upcoming PPP Projects as per PSDP 2019–20. https://nha.gov.pk/wp-content/uploads/2016/04/List-of-Upcoming-PPP-Projects-as-Per-PSDP-2019-20.pdf (accessed 24 September 2020); and Government of Pakistan, NHA. List of PPP Projects under Implementation. https://nha.gov.pk/wp-content/uploads/2016/04/List-of-PPP-Project-as-of-10-10-2018.pdf (accessed 24 September 2020).
Projects under Preparation or Procurement
Roads Public–Private Partnerships under Preparation and Procurement
Note: The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable.
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf; and Government of Pakistan, National Highway Authority
Roads
Features of Past PPP Projects
As per the NHA website, the projects are under various stages of implementation.
Pipeline of PPP Projects in the Road Sector
Project Length Project Cost Project Scope Status (km) ($ million) (PRs million) Lahore–Islamabad Motorway (M-2) 357 297.11 46,007 Overlay and modernization Operational since August 2016 Karachi–Hyderabad Motorway (M-9) 136 285.77 44,251 Conversion of existing four-lane highway into six-lane motorway Substantially complete (94%); operational since June 2018 Habibabad Bridge (N-5) 2 5.37 831 Construction of new four-lane railway overhead bridge on N-5 Operational since April 2015 Karachi Thatta Dual Carriageway Project 49 56.83 8,800 Enhancement of the road quality of the N-5 highway The financing documents were signed on 29 December 2016 and the construction works for the project is complete. Hyderabad Mirpurkhas Dual Carriageway 58 43.91 6,800 The 60 km dual carriageway is connecting the two major cities of the province, Hyderabad and Mirpurkhas, which aims to facilitate growth and efficiency for the province. The construction of the project was completed by September 2012. Lahore Ring Road Loop 1 and 2 … … … … … … = data not available, km = kilometer, PRs = Pakistan rupees.
Source: Government of Pakistan, Public–Private Partnership Unit; and Provincial Government of Sindh, Finance Department. Pakistan.
Procurement of PPP Projects
Roads Public-Private Partnerships procured through various modes
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects Reaching Financial Close
Roads Public-Private Partnerships reaching Financial Close
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects with Foreign Sponsor Participation
Roads Public-Private Partnerships with Foreign Sponsor Participation
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Government Support to PPP Projects
Government Support for Roads Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Payment Mechanism for PPP Projects
Payment Mechanisms for Roads Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Typical Risk Allocation for PPP Projects
Risk Type Private Public Shared Comment Traffic risk Collection risk Tariff Risk Competition risk Government payment risk Environmental and social risk Land acquisition risk Permits Geotechnical risk The risk depends on the nature of project and geography. In case of tunnels, risk is very high and needs to be addressed accordingly. In normal road projects, the risk is not very high and rests with the private sector. Brownfield risk: inventories studies, property boundaries, project scope Political risk Force majeure Foreign exchange risk - Yes
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Financing Details
Item 1990–2017 1990–2018 1990–2019 PPP projects with foreign lending participation No No No PPP projects that received export credit agency/international financing institution support No No No Typical debt:equity ratio 30:70 Time for financial closure 6 months Typical concession period 25 years Typical financial internal rate of return 15%–18% Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Roads
Tariffs
The NHA has issued standard operating procedures (SOPs) for national highway tolling (NHA Tolling Policy 2010) and SOPs for PPP projects. Both of these documents define the tariff or tolling principles for national highways and the escalation principles. The SOPs for PPP projects indicate that: “Consistent with the Concession Agreement, Concessionaires will be given the right to collect tolls at locations they consider appropriate and are approved by the NHA, within their specified Concession Area, using either an ‘open’ or ‘closed’ toll system as contained in the bidding documents. The tolling arrangements at the interface between two Concession Areas shall be agreed between the Concessionaires concerned and the NHA in consultation with any other provincial and/or local governments, if involved.” The toll levels for the PPP projects are generally fixed based on the viability of the project. For financially viable projects, the tolls proposed by private developers will be evaluated, while for projects requiring government support, the tolls are determined by the NHA.1
- 1Government of Pakistan, Ministry of Communications, National Highway Authority, Road Asset Management System Section. 2010. NHA Tolling Policy. Islamabad. http://nha.gov.pk/wp-content/uploads/2016/04/SOP-for-NHA-Tolling-Policy.docx.
Tariffs for Toll Roads
Category Toll Rates as of 1 July 2018 (PRs) National Highways Kohat Tunnel (N-55) IMDCW (N-75) Car 30 70 60 Wagon 50 240 80 Buses 100 290 170 2-Axle trucks 120 290 200 3-Axle trucks 120 290 200 Articulated trucks 250 440 400 IMDCW = Islamabad–Muzaffarabad Dual Carriageway, PRs = Pakistan rupees.
Source: Government of Pakistan, National Highway Authority. https://nha.gov.pk/ettmmap/highways-2/ (accessed 1 September 2020).
Roads
Challenges
- Inconsistencies between policy and institutional development. These include the lack of comprehensive strategy and action plan, inadequate institutional capacity, and poor coordination between agencies on road safety.
- Operation and maintenance (O&M) issues. Transport O&M is inefficient.
- Road safety issues. Road safety is a serious issue in Pakistan due to poor safety design, poor vehicle regulation, and inadequate traffic enforcement and driver training. There is, therefore, a need to adopt a national road safety strategy with clear action plan and targets.
- Lack of capacity among federal and provincial agencies. Suboptimal contract management and governance-related challenges have led to delays in construction and cost increases.
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Railways
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Railway Network Length
9,255 km
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Number of Passengers
24,903 M pkm
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Freight Volume
5,031 M ton-km
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Railway Infrastructure Quality
3.8
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Number of PPPs Reaching FC
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Value of PPPs Reaching FC
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Number of PPPs with Foreign Sponsors
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-
Number of PPPs with Govt. Support
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FC = financial closure, Govt = government, km = kilometers, M = million, pkm = passenger-kilometer, ton-km = ton-kilometer.
Notes: Passenger-kilometer refers to the transport of one person over 1 km, with the data expressed in millions of pkm. Ton-kilometer refers to the transport of a ton of cargo over 1 km, with the data expressed in millions of ton-km. Quality of railway infrastructure: 1 (lowest) – 7 (highest).
Sources: The Economist Intelligence Unit. Infrascope 2018: Pakistan Country Profile. https://infrascope.eiu.com (accessed 1 September 2020); The Global Economy. Railway Passengers—Country Rankings. https://www.theglobaleconomy.com/rankings/railway_passengers/ (accessed 10 September 2020); The Global Economy. Railway Transport of Goods—Country Rankings. https://www.theglobaleconomy.com/rankings/Railway_transport_of_goods/ (accessed 10 September 2020); and The Global Economy. Railroad Infrastructure Quality— Country Rankings. https://www.theglobaleconomy.com/rankings/railroad_quality/ (accessed 10 September 2020).
Railways
Contracting Agencies
Pakistan Railways is the national state-owned railway company of Pakistan. The railway company owns 1,881 kilometers (km) of track across Pakistan and operates freight and passenger service. Pakistan Railways reports to the Ministry of Railways. Overall, the control of Pakistan Railways and policy and development of the railway network are managed and administrated by the Ministry of Railways.
Railways
Sector Laws and Regulations
The Railways Act 1890 and its subsequent amendments are the relevant regulations for railways. In 2002, the government issued the Railway Regulatory Authority Ordinance 2002 to provide for the establishment of the Railway Regulatory Authority. One of the important premises in the Ordinance 2002 is “to foster competition, encourage and facilitate private sector investment and participation in the development and operation of passenger and goods trains on the railway network, protect the public interest while respecting individual rights and provide effective and efficient regulations.” Some of the key functions of the Railway Regulatory Authority are:
- to promote the provision of efficient and competitive railway services and approve the terms of track access agreements;
- to prescribe technical standards for the railway infrastructure and the rolling stock, and for testing;
- to require licensees to furnish, on a periodical basis, not less than 1 year, operating and financial results and other necessary information; and
- to prescribe fines for contravention of the provisions of the Ordinance 2002 and the rules, regulations, decisions, and terms and conditions of a license.
Foreign Investment Restrictions
Parameter 2017 2018 2019 Maximum allowed foreign ownership of equity in greenfield projects 100% 100% 100% Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Railways
Sector Master Plan
According to its publication, Pakistan Railways intends to extensively deploy PPP as a procurement mode across various functions: (i) operations and business development, (ii) rolling stock, (iii) infrastructure development, and (iv) noncore business.
List of Projects at Various Stages in the Railway Sector
Name of the Project Development Mode Estimated Investments Status ($ million) (PRs million) A. Business Development and Operations 1. Railway Automated Booking and Travel Assistance System Joint venture 5.17 800 Concept approved by PPPA Board; RFP being prepared 2. Track Access Regime PPP (Concession) 41.33 6,400 Concept was approved by ECC in 2005;
Approved by PPPA Board
3. Development of Railways Stations as Commercial hub BOT 12.92 2,000 Concept approved by PPPA Board; PC2 being prepared for TA B. Rolling Stock 4. Rolling Stock Tracking System PPP 1.29 200 Advertised for inviting private sector; Concept approved by PPPA Board as ex post facto 5. Conversion and improvement of existing freight wagons for containerized traffic BOT 25.83 4,000 Concept approved by PPPA Board; PC2 being prepared for TA 6. Replacement of 1,000 passenger coaches Joint venture 581.21 90,000 Concept approved by PPPA Board; PC2 being prepared for TA 7. Induction of 5,000 freight wagons Joint venture 2,260.26 350,000 Concept approved by PPPA Board; PC2 being prepared for TA C. Infrastructure Development 8. Rail connectivity of Block-II Thar coal field with existing railway network (105 km) BOT 226.03 35,000 Feasibility in final stages; TA being procured, advertised; Concept approved by PPPA Board ex post facto 9. KPT-Pipri dedicated freight corridor and model rail freight terminal (50 km) BOT 258.32 40,000 Concept approved by PPPA Board; Feasibility study being conducted; RFP would be issued to six shortlisted firms 10. New double line from Karachi (Juma Goth) to Hyderabad (130 km) BOT 839.52 130,000 Concept approved by PPPA Board; Feasibility study initiated 11. Rail link from Port Qasim (PIBT) Karachi to Bin Qasim Station on ML-1 (9 km) BOT 29.06 4,500 Concept approved by PPPA Board; TA being procured, advertised 12. Improvement of rail link (CTR and signaling) from Kot Adu and Attock (425 km) PPP 193.74 30,000 Concept approved by PPPA Board; TA being procured, advertised 13. Improvement of rail link from Kotri to Jacobabad of ML-2 (401 km) PPP 180.82 28,000 Concept approved by PPPA Board; TA being procured, advertised 14. Improvement of rail link from Jacobabad to Kot Adu of ML-2 (428 km) PPP 193.74 30,000 Concept approved by PPPA Board; TA being procured, advertised 15. Improvement of rail link from Rohri to Sibi of ML-3 (244 km) PPP 64.58 10,000 Concept approved by PPPA Board; TA being procured, advertised 16. Improvement of rail link from Sibi to Quetta of ML-3 (178 km) PPP 38.75 6,000 Concept approved by PPPA Board; TA being procured, advertised 17. Quetta–Chaman Railway (128 km) PPP 38.75 6,000 Concept approved by PPPA Board; TA being procured, advertised 18. Quetta–Zhob Kotlajam via DIKhan Railway Section (536 km) PPP 1,937.36 30,000 Concept approved by PPPA Board; Feasibility study completed; PC2 for TA is being prepared 19. Nowshera–Dargai–Swat (Kalam) (285 km) PPP 452.05 7,000 Concept approved by PPPA Board; PC2 being prepared for feasibility study and TA 20. Peshawar–Torkham Rail Section (65 km) on PPP PPP 129.16 20,000 Concept approved by PPPA Board; Feasibility study in progress 21. Construction and operation of Railways on PPP PPP 1,291.58 200,000 Concept approved by PPPA Board; Feasibility study being completed D. Noncore Business 22. PPP for Upgradation and Rehabilitation of Railway Hospitals Outsourcing 29.06 4,500 Concept approved by PPPA Board; TA being procured, advertised 23. PPP for Upgradation and Rehabilitation of Railway Schools and Colleges Outsourcing 12.92 2,000 Concept approved by PPPA Board; TA hiring is advertised 24. Development of lands through PPP PPP 322.89 50,000 Concept approved by PPPA Board; PC2 being prepared for TA hiring E. Urban Railways 25. Development of Karachi Circular Railways as modern urban railways PPP 581.21 90,000 Concept approved by PPPA Board BOT = build–operate–transfer, CTR = complete track renewal, ECC = Economic Coordination Committee, km = kilometer, KPT = Karachi Port Trust, ML = main line, PC2 = project component 2 (project feasibility report), PIBT = Pakistan International Bulk Terminal Limited, PPPA = Public Private Partnership Authority, PRs = Pakistan rupees, RFP = request for proposal, TA = transaction advisor.
Source: Government of Pakistan, Ministry of Railways. PPP Projects. http://www.railways.gov.pk/SiteImage/Misc/files/PPP%20Project%20List.pdf (accessed 1 September 2020).
Projects under Preparation and Procurement
Railways Public-Private Partnerships under Preparation and Procurement
Note: The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable.
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf; and Government of Pakistan, Ministry of Railways. PPP Projects. http://www.railways.gov.pk/SiteImage/Misc/files/PPP%20Project%20List.pdf.
Railways
Features of Past PPP Projects
There were no projects in the railway sector in the past that were taken up on PPP.
There are currently no PPP projects under procurement for the railway sector in Pakistan. It is worth noting that the procurement strategy for the Karachi to Punjab railway was subject to a dispute between the Pakistan’s Railway Ministry and the Infrastructure Project Development Facility in 2014. In the end, the project was funded by the public sector.
In addition to the above, only the Kahna Kacha Flyover project reached financial closure in the railway sector between 1990 and 2017. The Kahna Kacha Flyover is located at Railway Line Crossing Defence Road at Kahna Kacha Railway Station and is part of the Lahore Urban Transport Master Plan 2011–2030. An unsolicited proposal for developing this flyover in a PPP mode was submitted by M/s ZKB & Reliable JV to the Lahore Development Authority in August 2013. The estimated cost of the project is PRs2.28 billion in exchange for a 25-year concession to toll traffic at a base rate of PRs0.30 for cars. The project has been operational since 22 June 2016.
Procurement of PPP Projects
Railways Public-Private Partnerships procured through various modes
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects Reaching Financial Close
Railways Public-Private Partnerships reaching Financial Close
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects with Foreign Sponsor Participation
Railways Public-Private Partnerships with Foreign Sponsor Participation
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Government Support to PPP Projects
Government Support for Railways Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Payment Mechanism for PPP Projects
Payment Mechanisms for Railways Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Financing Details of PPP Projects
As no PPP projects in the railway sector have achieved financial closure till 2019, there is no information available on the financing details.
Item 1990–2017 1990–2018 1990–2019 PPP projects with foreign lending participation NA NA NA PPP projects that received export credit agency/international financing institution support NA NA NA Typical debt:equity ratio NA Time for financial closure NA Typical concession period NA Typical financial internal rate of return NA - NA = Not Applicable
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Railways
Tariffs
There is no information available regarding railway sector tariffs.
Railways
Challenges
The role of Pakistan Railways as a catalyst for economic development experienced a setback due to significant underinvestment by successive governments, who preferred investment in road infrastructure at the cost of Pakistan Railways.
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Ports
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Number of Ports
3
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Container Traffic
3,275,000 TEU
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Port Infrastructure Quality
4
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Number of PPPs Reaching FC
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Value of PPPs Reaching FC
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Number of PPPs with Foreign Sponsors
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Number of PPPs with Govt. Support
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FC = financial closure, Govt. = government, TEU = twenty-feet equivalent unit.
Sources: Government of Pakistan, Ministry of Maritime Affairs. 2017. Year Book 2016–2017. Islamabad. https://moma.gov.pk/SiteImage/Misc/files/YB_2016-17.pdf; The Economist Intelligence Unit. Infrascope 2018: Pakistan Country Profile. https://infrascope.eiu.com (accessed 10 September 2020); The Global Economy. Port Traffic—Country Rankings. https://www.theglobaleconomy.com/rankings/Port_traffic/ (accessed 10 September 2020); and World Port Source. World Ports by Country—Pakistan. http://www.worldportsource.com/countries.php(accessed 10 September 2020).
Ports
Contracting Agencies
The Ministry of Maritime Affairs, previously named the Ministry of Port and Shipping, is the main authority of the port sector. It is the ministry’s role to declare and delimit the major ports, and the Constitution and power of authorities in the following ports: Karachi Port Trust, Port Bin Qasim, and Gwadar Port. The ministry also maintains technical control and regulates the functioning of subordinate organizations: Karachi Port Trust, Port Bin Qasim, Gwadar Port, and the Pakistan National Shipping Corporation.
Ports
Sector Laws and Regulations
In 2001, the Pakistan Merchant Shipping Ordinance 2001 replaced the Merchant Shipping Act of 1923, to reflect the fact that Pakistan became a member of the International Labour Organization, upholding the maritime labor international standards. This provides a framework and rules under which the government authorities will function in dealing with matters related to the shipping industry.
Some ports have a special status. In 2017, for example, the Federal Board of Revenue decided to grant exemption of taxes for projects related to Gwadar, including the Gwadar International Airport, under the China–Pakistan Economic Corridor (CPEC) project.
The Ministry of Maritime Affairs in Islamabad is the central administrative authority of the federal government, primarily assigned to facilitate the ports and shipping industry of Pakistan. It provides policy guidelines to encourage port development and growth in shipping, while maintaining safety standards.1
The Office of Directorate General Ports and Shipping works as a wing of the Ministry of Maritime Affairs specifically on administrative matters related to the ports and its authorities. It provides policy input on matters related to ports and shipping, administers the merchant shipping in the country, adheres to international maritime conventions, issues certificate of competence for Master Mariners, frames rules, and approves the training syllabus, among others. The Karachi Port Trust, Port Qasim Authority, Pakistan National Shipping Corporation, and Gwadar Port Authority are autonomous organizations with their own fully empowered boards of directors and stipulated rules and regulations.
- 1Government of Pakistan, Ministry of Maritime Affairs. https://moma.gov.pk/Detail/NzIxMTIzM2EtMjQwOC00MjUyLTlhOTctMTViNzVkYzA2NmIy.
Ports
Sector Master Plan
The Maritime Yearbook 2016–2017 provides a list of major projects being planned by the Karachi Port Authority. A further update of the yearbook is unavailable. As per the yearbook, in 2015, the Karachi Port Authority prepared a 10-year business plan and strategic development plan, outlining the following major projects:
- environment-friendly multipurpose bulk handling terminal at East Wharf,
- construction of peripheral road along Chinna Creek,
- development of TPX Area (as dry port) along M. T. Khan Road (proposed to be taken up on PPP),
- construction of elevated port expressway (proposed to be taken up on PPP),
- reconstruction of OP-I facility,
- cable-stayed bridge/Karachi Harbour Crossing at the Port of Karachi (proposed to be taken up on PPP), and
- cargo village/industrial park over 1,300 acres of land (proposed to be taken up on PPP).
Similarly, there were ongoing projects taken up by the ports of Gwadar and Qasim.
Projects under Preparation and Procurement
Ports Public-Private Partnerships under Preparation and Procurement
Note: The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable.
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Ports
Features of Past PPP Projects
The projects that achieved financial closure in the port sector are:
- Port Mohammed bin Qasim Liquid Bulk Terminal, 1995;
- Qasim International Container Terminal, 1995;
- Karachi International Container Terminal, 1997;
- Pakistan International Container Terminal, 2002;
- Gwadar Port Phase II, 2007;
- Qasim Grain and Fertilizer Terminal, 2008;
- Second Container Terminal at Port Mohammad Qasim, 2008;
- Pakistan Deep Water Container, 2010; and
- Pakistan Deep Water Container Port Phase II, 2019.
Procurement of PPP Projects
Ports Public-Private Partnerships procured through various modes
Note: Only active and concluded projects are considered in the above graph.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects Reaching Financial Close
Ports Public-Private Partnerships reaching Financial Close
Note: Only active and concluded projects are considered in the above graph.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects with Foreign Sponsor Participation
Ports Public-Private Partnerships with Foreign Sponsor Participation
Note: Only active and concluded projects are considered in the above graph.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Government Support to PPP Projects
Government Support for Ports Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Payment Mechanism for PPP Projects
Payment Mechanisms for Ports Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Financing Details
Item 1990–2017 1990–2018 1990–2019 PPP projects with foreign lending participation … … … PPP projects that received export credit agency/international financing institution support (no.)a 2 2 3 Typical debt:equity ratio … Time for financial closure … Typical concession period 21 years Typical financial internal rate of return … … = data not available.
Note: Only active and concluded projects are considered in the table above. a Includes both foreign bank lending and international financial institution support.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Ports
Tariffs
There is no available information on tariffs in the port sector.
Ports
Challenges
Currently, infrastructure development in Pakistan’s port sector is led by the regional strategy of the People’s Republic of China (PRC). The CPEC initiative and details of the agreement with the PRC authorities have brought some issues and challenges in the port sector. As an example, as per the Gwadar Port Concession Agreement, the China Overseas Port Holding Company has 91% share in the gross revenue of terminal and marine operations and 85% share in the gross revenue from operations of the free zone.
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Airports
Photo Credit:John McArthur (via Unsplash)
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Number of Airports
62
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Passenger Capacity
6.88 M
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Airport Infrastructure Quality
4.2
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Number of PPPs Reaching FC
----
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Value of PPPs Reaching FC
----
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Number of PPPs with Foreign Sponsors
----
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Number of PPPs with Govt. Support
----
FC = financial closure, Govt. = government, M = million.
Note: Quality of airport infrastructure: 1 (lowest) – 7 (highest).
Sources: Asian Development Bank. Data Library. Cumulative Lending, Grant, and Technical Assistance Commitments. https://data.adb.org/dataset/cumulative-lending-grant-and-technical-assistance-commitments (accessed 2 December 2020); City Population. Airports. https://www.citypopulation.de/en/world/bymap/airports.html (accessed 2 December 2020); The Airport Authority. List of All Airports in Pakistan. https://airport-authority.com/browse-PK (accessed 2 December 2020); The Global Economy. Compare Countries. https://www.theglobaleconomy.com/compare-countries/ (accessed 10 September 2020); and World Bank. Data. Air Transport Passengers Carried. https://data.worldbank.org/indicator/is.air.psgr?locations=bd-kh-ge-kz-mmpk-pg-lk-uz-vn-cn-in-id-ph-th (accessed 2 December 2020).
Airports
Contracting Agencies
The Pakistan Civil Aviation Authority (PCAA) is the contracting authority for PPPs in the airport and aviation sector.
The Pakistan Civil Aviation Ordinance 1982 empowers the PCAA to award contracts for construction, maintenance, and operation of airports.
The following departments and organizations are within the purview of the Aviation Division:
- PCAA,
- Pakistan International Airlines Corporation,
- Airport Security Force, and
- Pakistan Meteorological Department
The Civil Aviation Ordinance 1960 provides the federal government the control of manufacture, possession, use, operation, sale, import and export of aircraft; the control and regulation of air traffic services; and the control and development of aerodromes in Pakistan.
The 1982 ordinance was passed to establish the PCAA which is mandated to promote and regulate civil aviation activities, and develop infrastructure for safe, efficient, adequate, economical, and properly coordinated civil aviation transport services in Pakistan.
On the other hand, the 1960 ordinance empowers the federal government to make rules for maintenance, licensing, and regulation of airports, and charge fees for the use of, and for services provided at airports, among other things. Pursuant to the 1982 ordinance, the PCAA, a public sector autonomous body, oversees and regulates all aspects of civil aviation in Pakistan.
The Aviation Division spearheads strategy, policy, and oversight of all matters related to civil aviation.
The Economic Oversight Cell under the Director General of Civil Aviation aims to achieve a balance between the interests of airports services and air navigation service providers, including government-operated providers and their public policy objectives. The National Aviation Policy 2019 states that: “As the involvement of private sector for the operation and management of airports is being encouraged, therefore, the role of Economic Oversight will assume greater significance. It will also oversee financial stability of airlines and other related issues including airline mergers, acquisitions, domestic and international code-share alliances and other joint venture agreements, immunized international alliances between Pakistani and foreign carriers and biases or preferential routing, frequency allocation, slots, etc. allocated to airlines, thus ensuring a fair and competitive environment, in the larger interest of passengers and other stakeholders.”1
- 1Government of Pakistan, Pakistan Civil Aviation Authority. 2019. National Aviation Policy 2019. Karachi. https://www.caapakistan.com.pk/upload/AT/NAP-2019.pdf.
LEARN MOREAirports
Contracting Agencies
In 2017, a misunderstanding happened between the Privatization Commission and the PCAA. The PCAA directly issued request for proposals from prospective investors for outsourcing the operation, management, and development of the New Islamabad International Airport, Lahore’s Allama Iqbal International Airport, and Karachi’s Jinnah International Airport. Even though the PCAA is part of the government’s privatization program, it is not among the entities that have been picked for early privatization. Section 25 of the Privatization Commission Ordinance of 2000 states the modes by which the Privatization Commission will take decisions on matters pertaining to privatization, restructuring, and deregulation (Section 5 of the Privatization Commission Ordinance of 2000 empowers the Commission to take such decisions).
Pakistan’s privatization program started in 1991. It aims to attract private sector capital and managerial expertise through the divestment of identified public sector entities. On 28 September 2000, the Privatization Commission Ordinance 2000 was promulgated, and the Privatization Commission was converted into a corporate body, which strengthened its legal authority for implementing the government’s privatization policy.
Airports
Sector Laws and Regulations
In 2015, the National Aviation Policy was formulated in consultation with all stakeholders representing the various segments of the aviation industry, and through a series of deliberations at the PCAA and Aviation Division. The policy serves as a roadmap for the implementation of safety, security, and quality standards. It also engenders bilateral liberalization; lowering taxes; stimulating economy through tourism, trade, and agriculture; PPP; and infrastructure development. This policy has been replaced with the National Aviation Policy 2019.
The National Aviation Policy aims to induce competitiveness in the industry and enhance regional air connectivity. One of the objectives of the National Aviation Policy is to “ensure safe, secure, efficient and a commercially viable aviation sector, including aircraft design/manufacturing, and to develop state-of-the-art infrastructure, which contributes positively towards the national economy.”
LEARN MOREAirports
Sector Laws and Regulations
The National Aviation Policy 2019 of Pakistan states that:
- [The] Pakistan Civil Aviation Authority (PCAA) may enter into suitable PPP models for operation, management, and development of these airports. Equity partnership models would be preferable with mandatory management-level local employment for growth of in-country talent and knowledge base.
- For major airports, these PPP models would also be followed to improve revenue streams and quality of services. The airport’s terminal side may be outsourced to world-class operators of international standing through transparent and competitive bidding. Appropriate consultants shall be hired for outsourcing of such facilities at airports. The PCAA shall yield revenue either in shape of annual fee structure or through appropriate equity partnership models1 .
The policy further states that:
- The private sector will also be encouraged to construct and/or operate new or existing airports, airstrips, helipads, heliports, including cargo complexes on build–own–operate (BOO) or build–operate–transfer (BOT) basis, or any other suitable PPP arrangements, and to raise non-aeronautical revenues from these premises.
- Operators and interested parties for the development and facilitation of aviation sector will be provided [with] open spaces, if available, both on the air side and/or land side at rationalized rates to develop engineering, operational infrastructure, and other allied or supporting facilities.
- For the purpose of promotion of tourism, including religious tourism, the PPP model would be followed to establish small strips and helipads close to targeted locations of important and far-flung or inaccessible tourism areas, to ensure air connectivity from trunk, primary stations, and/or routes.
- The PCAA shall formulate policy to make it commercially viable for private investors and provincial governments without jeopardizing aviation activities.
- The development of greenfield and brownfield airports in the private sector shall be encouraged. The PCAA shall promulgate easy and friendly procedure to attract private sector toward developing greenfield airports. The Civil Aviation Authority may provide incentives for the private investor.
- Private sector investors shall be encouraged to develop supporting infrastructure, like airstrips for greenfield airports, outside the control zone area.
- Liberalized guidelines shall be formulated in consultation with users to promote and encourage private investment in flying clubs, air taxi service, private ownership of aircraft, including helicopters and gyrocopters, airships, light sports aircraft, amphibian aircraft, and aero-sports activities (i.e., hang gliding, ballooning, heli-skiing, and para jumping).
- 1Government of Pakistan, Pakistan Civil Aviation Authority. 2019. National Aviation Policy 2019. Karachi. https://www.caapakistan.com.pk/upload/AT/NAP-2019.pdf.
Airports
Sector Master Plan
The National Aviation Policy 2019 states that the available land at all major airports especially at Lahore, Islamabad, and Karachi shall be given to private companies through competitive bidding to develop facilities, such as perishable facility; cold chain facility; and common facility for housing banks, freight forwarders, and shipping agencies.
The PPP model will also be encouraged for the development of cargo facilities. All major international airports shall be promoted as transshipment hubs through the development of requisite infrastructure.
No further details on specific projects are available.
Projects under Preparation and Procurement
Airports Public-Private Partnerships under Preparation and Procurement
Note: The hyphen symbol (-) means there are no projects in the sector, or data are unavailable.
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Airports
Features of Past PPP Projects
The Sialkot International Airport is the first PPP project in the aviation sector. The project reached financial closure in 2006. It was designed to accommodate around 143,000 passengers a year. The airport mainly offers the opportunity for increased exports, as Sialkot belongs to the Export Triangle of Pakistan (together with Gujrat and Gujranwala).
Procurement of PPP Projects
Airports Public-Private Partnerships procured through various modes
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects Reaching Financial Close
Airports Public-Private Partnerships reaching Financial Close
Note: Only active and concluded projects are considered in the above graph.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects with Foreign Sponsor Participation
Airports Public-Private Partnerships with Foreign Sponsor Participation
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Government Support to PPP Projects
Government Support for Airports Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Payment Mechanism for PPP Projects
Payment Mechanisms for Airports Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Financing of PPP Projects in the Airport Sector
Item 1990–2017 1990–2018 1990–2019 PPP projects with foreign lending participation 0 0 0 PPP projects that received export credit agency/international financing institution support 0 0 0 Typical debt:equity ratio ... Time for financial closure ... Typical concession period ... Typical financial internal rate of return ... … = data not available.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Airports
Tariffs
There is no information available regarding airport sector tariffs.
Airports
Challenges
The Pakistan Civil Aviation Authority (PCAA), a public entity, manages the aviation sector. Although the National Aviation Policy intends to introduce PPP models in the airport sector, the sector focus is on the use of public funding for the procurement of airport projects. While the Pakistan Civil Aviation Ordinance 1982 empowers the PCAA to award contracts for construction, maintenance, and operation of airports, it is unclear under the governing regime whether the PCAA has the mandate to issue license with respect to outsourcing of airport services.
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Energy
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Power Consumption
471 kWh per capita
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Share of Clean Energy
46.48 %
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Electricity Access
71.1 %
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Energy Imports
24.12 %
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Number of PPPs Reaching FC
----
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Value of PPPs Reaching FC
----
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Number of PPPs with Foreign Sponsors
----
-
Number of PPPs with Govt. Support
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FC = financial closure, Govt. = government, kWh = kilowatt-hour.
Note: Share of clean energy and energy imports as percentage of total energy use. Energy access as percentage of total population.
Sources: Asian Development Bank. Data Library. Cumulative Lending, Grant, and Technical Assistance Commitments. https://data.adb.org/dataset/cumulative-lending-grant-and-technical-assistance-commitments (accessed 2 December 2020); The Economist Intelligence Unit. Infrascope 2018: Pakistan Country Profile. https://infrascope.eiu.com (accessed 2 December 2020); The Global Economy. Energy Imports—Country Rankings. https://www.theglobaleconomy.com/rankings/energy_imports/ (accessed 10 September 2020); The Global Economy. Share of Clean Energy—Country Rankings. https://www.theglobaleconomy.com/rankings/share_of_clean_energy/ (accessed 10 September 2020); World Bank. Data. Access to Electricity. https://data.worldbank.org/indicator/eg.elc.accs.zs?end=2018&locations=mm-kh-uz-cn-bd-ge-in-id-kz-pk-ph-lk-th-vn&start=2018&view=bar (accessed 2 December 2020); World Bank. Doing Business. Ease of Doing Business Score—Getting Electricity. https://www.doingbusiness.org/en/data/doing-businessscore?topic=getting-electricity (accessed 2 December 2020).
Energy
Contracting Agencies
The Ministry of Water and Power is responsible for the overall administrative oversight relevant to the power sector. Established through the NEPRA Act, the National Electric Power Regulatory Authority (NEPRA) regulates the country’s energy sector. NEPRA is mandated to regulate the provision of electric power services, including determination of electricity tariff, rates, charges, and other terms and conditions for supply of electric power services by the generation, transmission, and distribution companies.
Various agencies and companies are in charge of the distribution and transmission network and can contract with the private sector on behalf of the federal government. These include the Private Power and Infrastructure Board (PPIB), the Alternative Energy Development Board (AEDB), the National Transmission and Despatch Company (NTDC), the Punjab Power Development Board, and the Water and Power Development Authority (WAPDA).
The PPIB was created in 1994 as a “one-window facilitator” on behalf of the Government of Pakistan to promote private investments in the power sector. In 2012, the PPIB was made a statutory organization through the Private Power and Infrastructure Board Act 2012 (Act VI of 2012). In November 2015, the PPIB Act was amended to expand the role of PPIB into facilitating public sector power and related infrastructure projects in independent power producer (IPP) mode. The PPIB approves IPPs, issues letters of intent and letters of support (including tripartite letters of support), approves feasibility studies, executes implementation agreements, and provides government guarantees.1
The AEDB is the sole representing agency of the federal government. It was established in May 2003 mainly to facilitate, promote, and encourage development of renewable energy in Pakistan and to introduce alternative and renewable energy at an accelerated rate. The administrative control of the AEDB was transferred to the Ministry of Water and Power in 2006.
- 1Government of Pakistan, Ministry of Energy (Power Division), Private Power and Infrastructure Board (PPIB). https://www.ppib.gov.pk/.
LEARN MOREEnergy
Contracting Agencies
The Government of Pakistan has mandated the AEDB to
- implement policies, programs, and projects with the private sector in the field of alternative and renewable energy;
- assist and facilitate development and generation of alternative and renewable energy to achieve sustainable economic growth;
- encourage transfer of technology and develop indigenous manufacturing base for alternative and renewable energy technology;
- promote provision of energy services that are based on alternative and renewable energy resources; and
- undertake alternative and renewable energy projects on commercial scale (AEDB Act 2010).1
- 1Government of Pakistan, Ministry of Energy (Power Division), Alternative Energy Development Board (AEDB). E-Library. http://www.aedb.org/ju-elibrary/ (accessed 1 September 2020).
Energy
Sector Laws and Regulations
NEPRA was established as an autonomous body to regulate tariffs in the energy sector. It is also tasked to issue relevant licenses (e.g., generation and transmission licenses) and to ensure the sustainability of the sector in the long term. The role of NEPRA constitutes the regulatory function required to ensure a competitive industry that has a reliable and adequate supply of electric power.
Even though the private partners under the energy market are permitted to sell directly to bulk-power consumers, energy is routed through the power purchaser to transmission and distribution companies, which then distribute energy to the end-consumers. Therefore, even though the private partners get payments for the energy off-taken from them, they may not sell directly to end-consumers. The minimum equity requirement for an IPP in Pakistan is 20% of the total project cost.
The government replaced the 2006 policy on development of renewable energy for power generation with the Alternative and Renewable Energy (ARE) Policy in 2019 to create a conducive environment for the sustainable growth of the ARE sector in Pakistan. The ARE Policy 2019 includes a variety of investment options for tapping different ARE resources for on-grid and off-grid applications, as well as encouraging consumer-driven applications and initiatives.
Foreign Investment Restrictions
Business Activity Maximum % of FDI Allowed (2017) Maximum % of FDI Allowed (2018) Maximum % of FDI Allowed (2019) Power generation 100% 100% 100% Power transmission 100% 100% 100% Power distribution 100% 100% 100% Oil and gas 100% 100% 100% FDI = foreign direct investment.
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Standard Contracts
Type of Contract Availability PPP/concession agreement Power purchase agreement Capacity take-or-pay contract Fuel supply agreement Transmission and use of system agreement Performance-based operation and maintenance contract Engineering procurement and construction contract - Yes
- Unavailable
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Energy
Sector Master Plan
Thermal/ Nonrenewable Renewable Year IPPs RLNG IPPs Coal WAPDA/ Hydro IPPs Wind Solar Bagasse Nuclear (Govt) Grand Total 2019 0 0 0 0 0 524 790 0 1,314 2020 800 0 128 102 265 0 0 0 1,295 2021 and beyond 463 4,753 11,458 6,448 560 0 0 2,200 25,882 Grand Total 1,263 4,753 11,586 6,550 825 524 790 2,200 28,491 IPP = independent power producer, RLNG = regasified liquefied natural gas, WAPDA = Water and Power Development Authority.
Source: Pakistan Credit Rating Agency Limited (PACRA). 2020. Power Sector Report on Power and Energy Generation. Islamabad. http://pacra.pk/research.
In 2019, the Renewable Energy Policy 2006 was revised into Policy for Alternative and Renewable Energy 2019 (ARE Policy 2019), which provides the roadmap for further realizing the ARE potential in Pakistan. Under the policy, Pakistan intends to have at least 20% of its generation capacity powered by ARE technologies by 2025 and 30% by 2030. One of the objectives of the policy is to encourage private sector involvement in the ARE and “enable private sector investment and participation in on-grid and off-grid AREPs [projects for electricity generation using alternative and renewable energy technology] and innovative supply solution.”1
A pipeline of PPP energy projects is available for various energy subsectors:
- A list of IPP projects is available on the Private Power and Infrastructure Board website.2
- A list of hydropower projects that are currently in the pipeline is available on the WAPDA website.3
- A list of renewable energy projects that are currently in the pipeline is available on the AEDB website.4 Currently, there are no projects listed on the site.
- A pipeline of IPP projects is available on the NTDC website.5
- 1Government of Pakistan, Ministry of Energy (Power Division), AEDB. 2019. Power Policy: Alternative and Renewable Energy. Islamabad. http://www.aedb.org/images/ARE_Policy_2019_AEDB.pdf.
- 2Government of Pakistan, PPIB. Upcoming IPPs (as of 4 December 2020). https://www.ppib.gov.pk/upcomming_ipps.html (accessed 15 December 2020).
- 3Government of Pakistan, WAPDA. Hydro Power Projects—Future. http://www.wapda.gov.pk/index.php/duber-khwar-hydropower-menu-2/itemlist/category/34-future (accessed 15 December 2020).
- 4Government of Pakistan, Ministry of Energy (Power Division), AEDB. http://www.aedb.org/#.
- 5Government of Pakistan, National Transmission and Despatch Company Limited. Future Projects. http://ntdc.gov.pk/casa (accessed 15 December 2020).
Pipeline of PPP Projects
Series No. Project Sponsor/ Company Name Location Fuel Capacity (MW) COD/Remarks Expected 2020 1 1,263 MW RLNG-based project PTPL Near Trimmu Barrage, Jhang, Punjab RLNG GT1 and GT2: 800 ST: 463 Open cycle by December 2020, combined cycle by June 2021, under construction Subtotal (2020) 1,263 2021 2a 330 MW Thar Coal-based Power Project Thar Energy Limited Thar Block-II, Sindh Coal 330 March 2021, under construction 3a 330 MW Thar Coal-based Power Project Thal Nova Power Thar (Pvt) Ltd Thar Block-II, Sindh Coal 330 March 2021, LOS issued, FC in progress 4 660 MW Thar Coal-based Power Project Lucky Electric Power Company Ltd. Port Qasim, Karachi Coal 660 March 2021, under construction 5 Riali-II Hydropower Project Riali Hydro Power Co. Ghori Wala Nullah, Muzaffarabad AJ&K Hydel 708 April 2021, LOS issued, FC in progress 6a Karot Hydropower Project Karot Power Co. Pvt Ltd Jehlum River, Dist. Rawalpindi, Punjab Hydel 720 December 2021, under construction Subtotal (2021) 2,047 2022 7 330 MW Thar Coal-based Power Project Siddiqsons Energy Limited Thar Block-II, Sindh Coal 330 March 2022, LOS issued, FC in progress 8(i)a 1,320 MW Thar Coal-based Power Project Thar Coal Block-I Power Generation Co. Ltd. Thar Block-I, Sindh Coal first unit 660 August 2022, LOS issued, FC in progress 9a Suki Kinari Hydropower Project S.K Hydro Pvt Ltd Kunhar River, Mansehra, KP Hydel 884 December 2022, under construction 10a 300 MW Imported Coal-based Power Project China Communication Construction Co. Gwadar, Balochistan Coal 300 Last quarter of 2022, LOS issued, FC in progress Subtotal (2022) 2,174 2023 8(ii)a 1,320 MW Thar Coal-based Power Project Thar Coal Block-I Power Generation Co. Ltd. Thar Block-I, Sindh Coal second unit 660 February 2023, LOS issued, FC in progress 11a 1,320 MW Thar Coal-based Power Project Oracle Coal Fields PLC England Thar Block VI, Sindh Coal 1,320 June 2023, issuance of NTP and LOI in process Subtotal (2023) 1,980 2024 12 Kathai-II Hydropower Project Kathai-II Hydro (Pvt) Ltd. Kathai Nullah, Hattian Hydel 8 April 2024, LOS issued, FC in progress Subtotal (2024) 8 2026 13a Azad Pattan Hydropower Project Azad Pattan Power (Pvt) Ltd. Jehlum River, Sudhnoti Hydel 700 June 2026, LOS issued, FC in progress 14a Kohala Hydropower Project Kohala Hydro Company Limited Jehlum River/ Kohala Hydel 1,124 June 2026, LOS issued, FC in progress 15 Ashkot Hydropower Project Ashkot Energy (Pvt) Ltd. Neelum River Hydel 300 December 2026; Government of AJ&K transferred the project to the PPIB for further processing (project is under evaluation) Subtotal (2026) 2,124 2028 16 Mahl Hydropower Project CWE Investment Corporation/China Three Gorges and Trans Tech Pakistan Jehlum River, Punjab Hydel 640 June 2028, LOI issued, LOS in progress, tariff determined by NEPRA 17 Athmuqam Hydropower Project Korea Hydro and Nuclear Company Neelum River Hydel 450 December 2028, LOI issued, FS completed and approved by the POE, sponsors initiated tariff determination process through the CPPAG 18 Turtonas–Uzghor Hydropower Project Sinohydro-Sachal Consortium Golen Gol River, Chitral Valley KP Hydel 82 December 2028, LOI issued, FS completed and approved by the POE, tariff petition is with NEPRA for determination/ approval Subtotal (2028) 1,172 19 Kaigah Hydropower Project … Kaigah, Indus River, KP Hydel 548 To be advertised, COD will be assessed after issuance of LOI, not likely to achieve COD before 2028 20 Chakothi–Haţan Hydropower Project … Muzaffarabad Hydel 500 21 Rajdhani Hydropower Project … Poonch River Hydel 132 22 Neckeherdim–Paur Hydropower Project … Yarkun River, Chitral Valley KP Hydel 80 Subtotal 1,260 Grand Total 12,028 … = data not available, COD = commercial operations date, CPPAG = Central Power Purchasing Agency (Guarantee) Limited, FC = financial closure, FS = feasibility study, GT = gas turbine, KP = Khyber Pakhtunkhwa, LOI = letter of intent, LOS = letter of support, MW = megawatt, NEPRA = National Electric Power Regulatory Authority, NTP = notice to proceed, POE = Panel of Experts, PPIB = Private Power and Infrastructure Board, PTPL = Punjab Thermal Power (Pvt) Limited, RLNG = regasified liquefied natural gas, ST = steam turbine.
a This project is taken up as part of the China–Pakistan Economic Corridor initiative.
Source: Government of Pakistan, PPIB. Upcoming IPPs (as of 4 December 2020). https://www.ppib.gov.pk/upcomming_ipps.html (accessed 15 December 2020).
Pipeline of PPP Projects in the Energy Sector (Hydropower)
Series No Project Name Brief Status 1 Akhori Dam Project Power generation capacity of 600 MW; feasibility study prepared in 2016; ministry discussions on way forward. 2 Basho Hydropower Project Power generation capacity of 40 MW; updating of feasibility study completed in 2011 with AFD grant assistance; planned to be taken up on donor funding 3 Chitral Power Enhancement Capacity enhancement from 1 MW to 5 MW; planned to be taken up on donor funding 4 Dudhnial Dam Multipurpose Project Power generation capacity of 960 MW; submitted to Planning Commission by the MOWR in April 2019; awaiting approval 5 Hingol Dam Project Power generation capacity of 1.37 MW; FFC, MOWR cleared the PC-II and submitted for approval of Departmental Development Working Party in January 2020 6 Lower Palas Valley Power generation capacity of 665 MW; discussions between the MOWR, WAPDA, and the provincial government of Pakhtunkhwa ongoing for finalizing the project development 7 Lower Spat Gah Power generation capacity of 496 MW; WAPDA intends to develop the project under conventional mode through donor financing; discussions between WAPDA and the provincial government of Pakhtunkhwa ongoing for finalizing the project procurement 8 Middle Palas Valley Hydropower Project Power generation capacity of 398 MW; pre-feasibility study completed in 2008 9 Middle Spat Gah Hydropower Project Power generation capacity of 489 MW; pre-feasibility study completed in 2008 10 Murunj Dam Project Power generation capacity of 12 MW; hiring of consultancy services for undertaking necessary technical studies under progress 11 Patan Power generation capacity of 2,400 MW; PC-II for detailed engineering design, preparation of tender document, and PC-I in process with the MOWR since February 2019; ADB has shown interest in project appraisal and financing 12 Phandar Hydropower Project Power generation capacity of 80 MW; detailed engineering design and preparation of tender document completed in 2013; project would be taken up after arrangement of financing from donor agencies and the relevant local government; to be implemented by WAPDA 13 Renala Power Rehabilitation Power generation capacity of 4.4 MW; feasibility study completed by WAPDA Hydro-planning Department in 2013; AFD France has shown interest to finance the project; finalization pending 14 Shyok Dam Multipurpose Project Power generation capacity of 640 MW; draft feasibility study expected to be completed by April 2020 15 Tank Zam Dam Project Power generation capacity of 25.4 MW; updated PC-II for detailed engineering design and tender documents; preparation of PC-I amounting to PRs212.576 million submitted to the MOWR on 22 March 2018; planned to be taken up under the PSDP 16 Thakot Hydropower Project Power generation capacity of 4,927 MW; feasibility study in progress 17 Tungas Hydropower Project Power generation capacity of 2,200 MW; updating of feasibility study in progress 18 Upper Palas Valley Hydropower Project Power generation capacity of 157 MW; pre-feasibility study completed in 2008 19 Upper Spat Gah Hydropower Project Power generation capacity of 252 MW; pre-feasibility study completed in 2008 20 Yulbo Hydropower Project Power generation capacity of 2,800 MW; technical studies being finalized ADB = Asian Development Bank, AFD = French Development Agency (Agence Française de Développement), FFC = Fauji Fertilizer Company Limited, MW = megawatt, MOWR = Ministry of Water Resources, PC = project component, PRs = Pakistan rupees, PSDP = public sector development program, WAPDA = Water and Power Development Authority.
Source: Government of Pakistan, WAPDA. Hydro Power Projects—Future. http://www.wapda.gov.pk/index.php/duber-khwarhydropower-menu-2/itemlist/category/34-future (accessed 15 December 2020).
Projects under Preparation and Procurement
Energy Public-Private Partnerships under Preparation and Procurement
Note: The hyphen symbol (-) means there are no projects in the sector, or data are unavailable.
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Energy
Features of Past PPP Projects
Procurement of PPP Projects
Energy Public-Private Partnerships procured through various modes
Note: Only active and concluded projects are considered in the above graph. Information on four projects could not be assessed.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects Reaching Financial Close
Energy Public-Private Partnerships reaching Financial Close
Note: Only active and concluded projects are considered in the above graph. Information on four projects could not be assessed.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects with Foreign Sponsor Participation
Energy Public-Private Partnerships with Foreign Sponsor Participation
Note: Only active and concluded projects are considered in the above graph. Information on four projects could not be assessed.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Government Support to PPP Projects
Government Support for Energy Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Payment Mechanism for PPP Projects
Payment Mechanisms for Energy Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. ‘User charges’ category include wholesale and sale toward power purchase agreements or transmission fees to private entities.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Typical Risk Allocation for PPP Projects
Risk Type Private Public Shared Demand risk Revenue collection risk Tariff risk Government payment risk Environmental and social risk Land acquisition risk Permits Handover risk Political risk Regulatory risk Interconnection risk Brownfield risk: asset condition Grid performance risk Hydrology risk Exploration and drilling risk - Not Applicable
Financing of PPP Projects in the Energy Sector
Item 1990–2017 1990–2018 1990–2019 PPP projects with foreign lending participation 37 39 54 PPP projects that received export credit agency/international financing institution support (no.)a 40 41 56 Typical debt:equity ratio (75–80):(20–25) Time for financial closure ... Typical concession period 25 years Typical financial internal rate of return ... … = data not available.
Note: Only active and concluded projects are considered in the above table.
a Includes both foreign bank lending and international financial institution support.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).Energy
Tariffs
To promote fair competition in the electricity industry and to protect the interests of consumers, producers, and sellers of electric power, the Government of Pakistan enacted the Regulation of Generation, Transmission and Distribution of Electric Power Act 1997. Under this act, the National Electric Power Regulatory Authority (NEPRA) was created to introduce transparent and judicious economic regulation, based on sound commercial principles, to the power sector of Pakistan. One of the primary responsibilities of NEPRA is to determine the tariff for the various generation, transmission, and distribution companies, including the independent power producers (IPPs). NEPRA follows a standard and transparent procedure for tariff determination, which includes public hearing and views from all stakeholders.
NEPRA is responsible for setting the tariffs paid for electricity by customers. The PPP model in the power generation sector typically follows an IPP framework where IPPs enter into a power purchase agreement (PPA) with a state-owned off-taker. The tariffs are regulated by NEPRA to provide a suitable rate of return for private investors.
To facilitate the development of these technologies, NEPRA has issued upfront tariffs for generation from the respective technologies. Since solar projects have been proposed to be developed through a competitive bidding process, NEPRA does not issue tariff rates for the technology.
Tariffs Set by the National Electric Power Regulatory Authority for Energy Projects in Pakistan
Type PRs/kWh (Levelized Tariff) Thermal 4.8675 Hydroelectric 11.3045 Wind 7.5233 Solar 12.1093 Bagasse or bioenergy 10.4078 Waste-to-energy 10.3170 kWh = kilowatt-hour, PRs = Pakistan rupees.
Sources: Government of Pakistan, National Electric Power Regulatory Authority (NEPRA). 2009. Tariff Determination for a Sample Thermal Electric Power IPP Project. AES Pakistan (Pvt.) Ltd. https://nepra.org.pk/tariff/Tariff/IPPs/AES%20PakGen/TRF-134%20AES%20-%202009%20Determination.PDF; Government of Pakistan, NEPRA. 2013. Tariff Determination for a Sample Hydel Power Plant IPP Project. Blue Star Energy (Pvt.) Ltd. https://nepra.org.pk/tariff/Tariff/IPPs/Blue%20Star%20Energy/2013/TRF-201%20BSEL%20Determination%20Dt.02-01-2013%2044-46.PDF; Government of Pakistan, NEPRA. 2020. Tariff Determination for a SampleWind Power IPP Project. Act 2 Wind Power (Pvt.) Ltd. https://nepra.org.pk/tariff/Tariff/IPPs/000%20IPPs%20Wind/Act%202%20Wind%20Pvt%20Limited/2020/TRF-489%20AWPL%20Modification%2023-07-2020%2018810-12.PDF; Government of Pakistan, NEPRA. 2016. Tariff Determination for a Sample Solar IPP Project. AJ Power (Private) Limited (AJPPL). https://nepra.org.pk/tariff/Tariff/IPPs/002%20Solar%20IPPs/AJPPL/Revised%20Decision%20of%20AJ%20Power%20Upfront%20Tariff%20Solar.PDF; Government of Pakistan, NEPRA. 2017. Tariff Determination for a Sample Bagasse-based Co-generation Power IPP Project. Alliance Power (Pvt.) Ltd. https://nepra.org.pk/tariff/Tariff/IPPs/05%20Bioenergy/Alliance%20Sugar%20Mills/TRF-393%20APPL%20Upfront%20Bagasse%2011-09-2017%2015256-58.PDF; and Government of Pakistan, NEPRA. 2018. Tariff Determination for a Sample Waste-to-Energy IPP Project. Lahore Xingzhong Renewable Energy Company (Pvt.) Ltd. https://nepra.org.pk/tariff/Tariff/IPPs/05%20Bioenergy/Lahore%20Xingzhong%20Renewable%20Energy%20Company/TRF-445%20LXREC%20%2020-07-2018%2011883-85.PDF.Energy
Challenges
The gap between end users and cost-recovery tariffs have caused payment arrears to IPPs and private sector players. Concerns about electricity payments discourage private sector participation.
There are constraints on the capacity of the transmission system. The transmission infrastructure cannot cope with large-scale investment in electricity generation, as is the case with rolling out public and private sector energy generation projects.
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Water and Wastewater
-
Access to Water
89 %
-
Access to Sanitation
72 %
-
Number of PPPs Reaching FC
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-
Value of PPPs Reaching FC
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-
Number of PPPs with Foreign Sponsors
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-
Number of PPPs with Govt. Support
----
FC = financial closure, Govt. = government.
Note: Access to water and sanitation as percentage of total population with access to improved water resources and sanitation facilities.
Sources: Asian Development Bank (ADB). 2015. Country Partnership Strategy: Pakistan, 2015–2019. Manila. https://www.adb.org/sites/default/files/institutional-document/171824/cps-pak-2015-2019.pdf; ADB. Data Library. Cumulative Lending, Grant, and Technical Assistance Commitments. https://data.adb.org/dataset/cumulative-lending-grant-and-technical-assistance-commitments (accessed 2 December 2020); and The Economist Intelligence Unit. Infrascope 2018: Pakistan Country Profile. https://infrascope.eiu.com (accessed 2 December 2020).
Water and Wastewater
Contracting Agencies
Bulk water. Pakistan’s Water and Power Development Authority (WAPDA) was established through an act of Parliament in 1958. It is an autonomous and statutory body under the administrative control of the federal government. WAPDA is responsible for the development of hydroelectric (or hydel) power and water sector projects. The Water Wing of WAPDA is responsible for planning, designing, and executing the water resources development projects in the sector of irrigation, drainage, and hydropower. Interprovincial major surface water projects, including large dams, are also operated and maintained by the Water Wing.1
Drinking water. Drinking water and sanitation policy is the constitutional responsibility of provincial governments. The federal government is only involved in policy development and the setting of guidelines, mostly through the Ministry of Climate Change (formerly Ministry of Environment). A National Drinking Water and Sanitation Committee was established in 2009 to implement both the National Sanitation Policy 2006 and the National Drinking Water Policy 2009.2 The overall goal of the National Drinking Water Policy is to improve the quality of life by reducing the incidence of death and illness caused by waterborne diseases through adequate provision of safe drinking water to the entire population at an affordable cost and in an equitable, efficient, and sustainable manner. It highlights the constitution responsibility of provincial and local governments (towns and tehsil municipal administrations or TMAs) to provide drinking water.3
- 1Government of Pakistan, WAPDA. About Us—Present Setup. http://www.wapda.gov.pk/index.php/about-us/present-setup
- 2United Nations General Assembly. 2012. National Report Submitted in Accordance with Paragraph 5 of the Annex to Human Rights Council Resolution 16/21: Pakistan. https://www.upr-info.org/sites/default/files/document/pakistan/session_14_-_october_2012/ahrcwg.614pak1e.pdf.
- 3Pakistan Water Supply and Sanitation Sector Vol II, https://hudphed.punjab.gov.pk/system/files/8%28b%29-Pakistan%20Rural-Vol%20II_v3%2012-6-13%20print.pdf
Water and Wastewater
Sector Laws and Regulations
The Water and Power Development Authority Act 1958 is the key regulation for the sector.
National Sanitation Policy 2006. The National Sanitation Policy, approved by the federal government in 2006, promotes the grassroots concept of community-led total sanitation in communities with less than 1,000 inhabitants. In larger communities, the National Sanitation Policy promotes a “component sharing model,” under which, sewage and wastewater treatment facilities are provided by the communities in cases wherein the local government-developed disposal is not available.
National Drinking Water Policy 2009. In September 2009, the government approved the National Drinking Water Policy. It aims to provide safe drinking water at an affordable cost by 2025 to the entire population in Pakistan, including the poor and vulnerable. The Local Government Ordinance of 2001 highlights the responsibility of local governments to provide drinking water. The policy is expected to be reviewed and updated every 5 years to examine its implementation and efficacy and to adapt it to the changing situation in the country.
Foreign Investment Restrictions
Parameter 2017 2018 2019 Maximum allowed foreign ownership of equity in greenfield projects Bulk water supply and treatment
100% 100% 100% Water distribution
100% 100% 100% Wastewater treatment
100% 100% 100% Wastewater collection
100% 100% 100% Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Water and Wastewater
Sector Master Plan
The government approved the National Water Policy in 2018, which “lays down a broad policy framework and a set of principles for water security, on the basis of which the provincial governments can formulate their respective master plans and projects for water conservation, water development, and water management.” The policy identifies 33 objectives, some of which are as follows:
- Augmentation of the available water resources of the country through judicious and equitable utilization via reservoirs, conservation, and efficient use.
- Improving urban water management by increasing system efficiency and reducing nonrevenue water through adequate investments to address drinking water demand, sewage disposal, and handling of wastewater and industrial effluents.
- Treatment and possible reuse of wastewater for domestic, agricultural, and industrial purposes.
- Encouraging beneficiary participation and PPPs.
- Enhancing water productivity through infrastructure development and adoption of improved technologies in a sustainable manner.
The policy further states that “sectors that can benefit from PPP modalities and private sector participation (like urban water and sewage for example) should immediately be opened up for investment through appropriate policies. The introduction of private capital and discipline in project execution will not only introduce cost savings and efficiency during implementation but will also save time and create a competitive environment.”
Projects under Preparation and Procurement
Water and Wastewater Public-Private Partnerships under Preparation and Procurement
Note: The hyphen symbol (-) means there are no projects in the sector, or data are unavailable.
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Water and Wastewater
Features of Past PPP Projects
Procurement of PPP Projects
Water and Wastewater Public-Private Partnerships procured through various modes
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects Reaching Financial Close
Water and Wastewater Public-Private Partnerships reaching Financial Close
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects with Foreign Sponsor Participation
Water and Wastewater Public-Private Partnerships with Foreign Sponsor Participation
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Government Support to PPP Projects
Government Support for Water and Wastewater Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Payment Mechanism for PPP Projects
Payment Mechanisms for Water and Wastewater Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Financing Details
As no PPP projects in the water and wastewater sector have achieved financial closure till 2019, there is no information available on the financing details.
Item 1990–2017 1990–2018 1990–2019 PPP projects with foreign lending participation NA NA NA PPP projects that received export credit agency/international financing institution support NA NA NA Typical debt:equity ratio NA Time for financial closure NA Typical concession period NA Typical financial internal rate of return NA NA = not applicable.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Water and Wastewater
Tariffs
There is no information available regarding tariffs in the water and wastewater sector.
Water and Wastewater
Challenges
There is no information available about challenges in the water and wastewater sector.
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ICT
-
Telephone Subscribers
1.32
-
Cellular Phone Subscribers
72.56
-
Cellular Network Coverage
81.5 %
-
Internet Subscribers
0.85
-
Internet Bandwidth per User
5.68 kbps
-
Number of PPPs Reaching FC
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-
Value of PPPs Reaching FC
----
-
Number of PPPs with Foreign Sponsors
----
-
Number of PPPs with Govt. Support
----
FC = financial closure, Govt. = Government, ICT = information and communication technology, kbps = kilobits per second.
Note: Telephone, cellular phone, and internet subscribers per 100 inhabitants. Cellular network coverage as percentage of population covered.
Sources: The Global Economy. Mobile Phone Subscribers, per 100 people—Country Rankings. https://www.theglobaleconomy.com/rankings/Mobile_phone_subscribers_per_100_people/ (accessed 10 September 2020); The Global Economy. Internet Subscribers, per 100 people—Country Rankings. https://www.theglobaleconomy.com/rankings/Internet_subscribers_per_100_people/ (accessed 10 September 2020); The Global Economy. Mobile Network Coverage—Country Rankings. https://www.theglobaleconomy.com/rankings/Mobile_network_coverage (accessed 10 September 2020); The Global Economy. Internet Bandwidth—Country Rankings. https://www.theglobaleconomy.com/rankings/Internet_bandwidth/ (accessed 10 September 2020); and World Bank. Data. Fixed Telephone Subscriptions. https://data.worldbank.org/indicator/IT.MLT.MAIN.P2?end=2018&locations=MM-KH-UZ-CN-BD-GE-INID-KZ-PK-PH-LK-TH-VN&start=2018&view=bar (accessed 2 December 2020).
ICT
Contracting Agencies
The Ministry of Information Technology and Telecommunication is the overarching ministry for the information and communication technology (ICT) sector. It is responsible for the preparation of an overall integrated plan and formulation of policy for the development and improvement of ICT, including related infrastructure, in Pakistan.
The Pakistan Telecommunication Authority (PTA) is the sector authority responsible in regulating the establishment, operations, and maintenance of the telecommunication systems, and in providing telecommunication services in Pakistan.
ICT
Sector Laws and Regulations
The Pakistan Telecommunication (Re-Organization) Act 1996 (with 2006 amendments) and the Pakistan Telecom Rules 2000 define the roles, mandate, and responsibility of the PTA and the telecommunications sector in Pakistan.
The latest regulatory changes in the sector include the following:
- National Information Technology Board Ordinance 2019. The reorganization of the National Information Technology Board (as an autonomous body) would not only enable harnessing the latest ICT solutions, but would also induct and mainstream these technologies in the work processes of the federal government.
- Amendments in the Pakistan Telecommunication Authority Act 2019. The amendments were made to expedite decision-making, ease of doing business, delegation of authority, and decentralization.
The PTA is the regulatory authority for the telecommunications.
The Government of Pakistan issued the Telecommunication Policy in 2015. It provides a comprehensive framework and roadmap for the regulatory and policy environment for Pakistan’s telecom sector.
Foreign Investment Restrictions
Parameter 2017 2018 2019 Maximum allowed foreign ownership of equity in greenfield projects 100% 100% 100% Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
ICT
Sector Master Plan
Pakistan launched the Digital Pakistan Policy in 2018. In 2019, the government announced the Digital Pakistan Vision, which aims to enhance connectivity, improve digital infrastructure, increase investment in digital skills, and promote innovation and technology entrepreneurship. The Digital Policy of 2018 identifies several areas of focus, such as sector digitalization, electronic and mobile commerce, digital inclusion, e-governance, promoting innovation, entrepreneurship, and incubators or start-ups in the information technology sector. The policy also highlights engaging with the private sector on PPP model for specific areas. An example is the e-Energy to Establish Public–Private Partnerships with cellular operators and utility providers using 3G/4G network for solutions such as smart grids, demand forecasting and availability of consumer portals to manage energy consumption, ICT in various segments, hardware manufacturing, and e-commerce.1
A detailed information on sector master plan in terms of specific projects pipeline is unavailable.
- 1Government of Pakistan, Ministry of Information Technology and Telecommunication. 2018. Digital Pakistan Policy. Islamabad. http://moib.gov.pk/Downloads/Policy/DIGITAL_PAKISTAN_POLICY(22-05-2018).pdf.
Projects under Preparation and Procurement
ICT Public-Private Partnerships under Preparation and Procurement
Note: The hyphen symbol (-) means there are no projects in the sector, or data are unavailable.
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
ICT
Features of Past PPP Projects
Procurement of PPP Projects
ICT Public-Private Partnerships procured through various modes
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects Reaching Financial Close
ICT Public-Private Partnerships reaching Financial Close
Note: Only active and concluded projects are considered in the above graph.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects with Foreign Sponsor Participation
ICT Public-Private Partnerships with Foreign Sponsor Participation
Note: Only active and concluded projects are considered in the above graph.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Government Support to PPP Projects
Government Support for ICT Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Payment Mechanism for PPP Projects
Payment Mechanisms for ICT Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Financing Details
Item 1990–2017 1990–2018 1990–2019 PPP projects with foreign lending participation 0 0 0 PPP projects that received export credit agency/international financing institution support 0 0 0 Typical debt:equity ratio … Time for financial closure … Typical concession period 15 years Typical financial internal rate of return … … = data not available.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
ICT
Tariffs
There is no information available regarding tariffs in the ICT sector.
ICT
Challenges
There is no available information about the challenges in the ICT sector.
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Social Infrastructure
Contracting Agencies
Each ministry in Pakistan is responsible for PPPs in its respective sector. Line ministries, federal bodies, and provincial and local authorities as well as state-owned enterprises (SOEs) are the contracting parties on behalf of the federal government with private parties. They will, therefore, be responsible, mainly or in conjunction with other bodies, for the identification, selection, sponsorship, preparation, tendering, and monitoring of PPP projects in their sectors. Various government authorities have been involved in contracting social PPPs, including the following:
- Province of Punjab (Awarding Authority), PPP Authority.
- Province of Sindh (Awarding Authority).
- Youth Affairs, Sports, Archaeology and Tourism Department (Punjab Province).
- Primary and Secondary Healthcare Department (Punjab Province).
- Local Government and Community Development Department (Punjab Province).
- Housing Urban Development and Public Health Engineering Department (Punjab Province).
- Communication and Works Department (Punjab Province).
- Education and Literacy Department (Sindh Province)
- Health Department (Sindh Province).
- Elementary and Secondary Education Department (Khyber Pakhtunkhwa Province).
There are numerous government authorities, line ministries, and SOEs that are able to act as the contracting authority for social PPP projects.
Social Infrastructure
Sector Laws and Regulations
According to the Pakistan Policy on Public Private Partnerships, which provides the basis for PPP regulatory framework in Pakistan, the social sectors (education, health care, and real estate) remain unregulated.
Social Infrastructure
Sector Master Plan
At the provincial level, almost every province has sector master plans for education and health. However, no consolidated master plan for social infrastructure could be found at the national level.
The details of the sector project plans for the social infrastructure sector are unavailable at the federal level. The provincial governments have been substantially active in promoting and developing PPPs. This is especially true for the provinces of Punjab, Sindh, and Khyber Pakhtunkhwa. PPP pipelines are available to a greater extent on a provincial level in comparison to a federal level. The PPP pipeline of social projects is available on the PPP Cell website on behalf of the Province of Punjab, and the PPP Unit on behalf of the Province of Sindh.
The projects, mainly in Punjab, that are under preparation and in the pipeline in the social infrastructure are
- the Model Town Housing Scheme, Sargodha; and
- the Naya Pakistan Housing Project, Chiniot (Area Development Scheme-II).
Projects under Preparation and Procurement
Social Infrastructure Public-Private Partnerships under Preparation and Procurement
Note: The hyphen symbol (-) means there are no projects in the sector, or data are unavailable .
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Social Infrastructure
Features of Past PPP Projects
A project undertaken in Punjab Province is included under the social infrastructure sector in the second edition of the PPP Monitor. The PPP for Punjab Grain Storage Facilities is a solicited proposal, which aims to develop multigrain storage and handling facilities under a 10-year build–own–transfer contract. The Food Department of the provincial government of Punjab procured the project. The private operator receives fixed service charges from the government agency. The project is indicative of the development of the PPP model within the provinces in Pakistan through different ministries and government agencies.
Procurement of PPP Projects
Social Infrastructure Public-Private Partnerships procured through various modes
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects Reaching Financial Close
Social Infrastructure Public-Private Partnerships reaching Financial Close
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects with Foreign Sponsor Participation
Social Infrastructure Public-Private Partnerships with Foreign Sponsor Participation
Note: Only active and concluded projects are considered in the above graph.The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Government Support to PPP Projects
Government Support for Social Infrastructure Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Payment Mechanism for PPP Projects
Payment Mechanisms for Social Infrastructure Public-Private Partnerships
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Financing Details
As no PPP projects in the social infrastructure sector have achieved financial closure till 2019, there is no information available on the financing details.
Item 1990–2017 1990–2018 1990–2019 PPP projects with foreign lending participation NA NA NA PPP projects that received export credit agency/international financing institution support NA NA NA Typical debt:equity ratio NA Time for financial closure NA Typical concession period NA Typical financial internal rate of return NA NA = not applicable.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Social Infrastructure
Tariffs
Information on the tariffs for social infrastructure projects is unavailable.
Social Infrastructure
Challenges
The following challenges are observed:
- Inadequate regulatory framework capacity.
- Lack of experience and regulatory environment in social infrastructure development.
- Misalignment of PPP support for social infrastructure projects between the various provinces in Pakistan.
- Existing PPP social infrastructure investments have had mixed results and have overexploited public infrastructure usage instead of enhancing access to health and education services.
Other Sectors
Other infrastructure includes municipal solid waste (MSW) or non-waste-to-energy sector.
Other Sectors
Contracting Agencies
The Planning and Development Division at the federal level, and the planning and development departments at the provincial levels are responsible for preparing development plans and allocating resources for MSW. The responsibility of solid waste management, therefore, falls under the purview of the respective provincial governments. Under the recent local government system, the tehsil (town) municipal administrations are responsible for solid waste collection, transportation, and disposal.
Other Sectors
Sector Laws and Regulations
At the federal level, the Ministry of Environment is responsible for developing environmental policies and programs. The Pakistan Environmental Protection Agency (EPA) and the provincial EPAs are the main regulatory bodies for implementing the 1997 Pakistan Environmental Protection Act (PEPA). The PEPA provides the framework for establishing the federal and provincial EPAs.
The National Environmental Action Plan aims to initiate actions and programs for achieving a state of the environment that safeguards public health.
Other Sectors
Sector Master Plan
There is no available information on the master plan for this sector.
Projects under Preparation and Procurement
The list of MSW projects under preparation and procurement is unavailable at the federal and provincial level.
However, there are infrastructure projects in the provinces of Punjab and Sindh.
Punjab:
- Establishment of a weaving city at M-3 Industrial Estate Faisalabad, Punjab.
- Development of tourist resort or entertainment park at Uchali Lake, Soon Valley, District Khushab.
- Multimodal intercity bus terminals in Lahore.
- Establishment of a model cattle market in Lahore.
- Vehicle inspection and certification system for private vehicles in Punjab.
- Procurement, installation, and maintenance of weighing equipment, and operation and management of permanent weigh stations.
- Establishment of women hostels in major cities of Punjab.
- Construction of the Multipurpose Parking Plaza with International Level Hostel for Players, 05 Star Hotel, and Museum in Nishtar Park Sports Complex, Lahore.
- Establishment of a sports complex in Multan
- Operations and maintenance of the sports facilities in Punjab, Phases I and II.
- Citizen facilitation and service centers in Southern Punjab.
- Construction of two additional stories at the existing Parking Plaza, Fawara Chowk, Rawalpindi.
- Construction of a parking plaza with shopping mall at the Old Mayer House, Faisalabad.
- Construction of a parking-cum-commercial plaza at the commercial market, Satellite Town, Rawalpindi.
- Construction of a parking-cum-commercial plaza at Banni Market, Rawalpindi.
- Construction of a parking-cum-commercial plaza at the Old Rawalpindi MC Office Site Jinnah Road, Rawalpindi.
Sindh:
- Arfa Karim IT Media City Project.
- Dhabeji Pumping Station.
- Domicile and PRC Automation Project.
- Larkana Fruit and Vegetable Mandi.
- Marble City Project.
- NED Technology Park.
- TP-1 and TP-4 wastewater treatment plants.
Projects under Preparation and Procurement
Public–Private Partnership Municipal Solid Waste Projects under Preparation and Procurement
Note: The hyphen symbol (-) means there are no projects in the sector, or data are unavailable.
Source: Asian Development Bank. 2019. Public–Private Partnership Monitor. Second Edition. Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
Other Sectors
Features of Past PPP Projects
There was one project taken up in the MSW sector in 2012—the Lakhodair Landfill Facility in Lahore.
Procurement of PPP Projects
Modes of Procurement for Public–Private Partnership Municipal Solid Waste Projects
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects Reaching Financial Close
Public–Private Partnership Municipal Solid Waste Projects Reaching Financial Closure
$ = United States dollar, PPP = public–private partnership.
Note: Only active and concluded projects are considered in the above graph.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
PPP Projects with Foreign Sponsor Participation
Public–Private Partnership Municipal Solid Waste Projects with Foreign Sponsor Participation
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Government Support to PPP Projects
Government Support to Public–Private Partnership Municipal Solid Waste Projects
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Payment Mechanism for PPP Projects
Payment Mechanisms for Public–Private Partnership Municipal Solid Waste Projects
Note: Only active and concluded projects are considered in the above graph. The hyphen symbol (-) means there are no projects in the sector, or data are unavailable, or not applicable according to the database.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).
Typical Risk Allocation for PPP Projects
Information on the typical risk allocation for the sector is unavailable.
Financing of PPP Projects in the Municipal Solid Waste Sector
Item 1990–2017 1990–2018 1990–2019 PPP projects with foreign lending participation 0 0 0 PPP projects that received export credit agency/international financing institution support 0 0 0 Typical debt:equity ratio … Time for financial closure … Typical concession period 15 years Typical financial internal rate of return … … = data not available.
Source: World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots. Pakistan. https://ppi.worldbank.org/en/snapshots/country/pakistan (accessed 1 September 2020).Other Sectors
Tariffs
Information on the tariffs for municipal solid waste projects is unavailable.
Other Sectors
Challenges
The waste management sector in Pakistan is challenged with a wide range of social, cultural, legislative, and economic issues. In the country, more waste is being produced than the number of facilities available to manage it. Some of the major problems are
- lack of proper waste collection system,
- dumping of waste on the streets,
- lack of waste segregation systems,
- uncontrolled sanitary landfill sites (open burning is common), and
- lack of awareness among citizens about the impact of reckless waste disposal on environmental and public health problems.1
Other challenges hindering sector growth include the absence of strong regulatory system, and lack of experience of public and private sector in designing and implementing projects.
- 1BioEnergy Consult. 2020. Solid Waste Management in Pakistan. https://www.bioenergyconsult.com/solid-waste-management-in-pakistan/ (accessed 1 September 2020).
Social Infrastructure
Govt. Expenditure on Education (% of GDP)
Education Spending (% of govt. spending)
Total Health Expenditure
Health Spending per Capita
Hospital Beds (per 10,000 population)
Govt. Health Expenditure (% of total govt. expenditure)
Number of PPPs Reaching FC
Value of PPPs Reaching FC
Number of PPPs with Foreign Sponsors
Number of PPPs with Govt. Support
FC = financial closure, GDP = gross domestic product, Govt. = government.
Sources: Asian Development Bank (ADB). 2015. Country Partnership Strategy: Pakistan, 2015–2019. Manila. https://www.adb.org/sites/default/files/institutional-document/171824/cps-pak-2015-2019.pdf; ADB. Data Library. Cumulative Lending, Grant, and Technical Assistance Commitments. https://data.adb.org/dataset/cumulative-lending-grant-and-technical-assistance-commitments (accessed 2 December 2020); The Economist Intelligence Unit. Infrascope 2018: Pakistan Country Profile. https://infrascope.eiu.com (accessed 2 December 2020); The Global Economy. Education Spending, Percent of Government Spending—Country Rankings. https://www.theglobaleconomy.com/rankings/Education_spending_percent_of_government_spending/ (accessed 10 September 2020); and The Global Economy. Health Spending per Capita—Country Rankings. https://www.theglobaleconomy.com/rankings/Health_spending_per_capita/ (accessed 10 September 2020).