Govt all set to form Public Private Partnership Center

KATHMANDU, July 24:

Preparations are underway to establish Public Private Partnership (PPP) Center, under the chairmanship of a member of the National Planning Commission (NPC), to facilitate PPP programs.

“The government will soon table PPP Bill, which will be consolidated with the Build, Own, Operate and Transfer (BOOT) Act, 2063 BS, in the parliament. The bill envisages opening PPP cells in every ministry for forwarding the proposed PPP programs to the center,” Lal Shankar Ghimire, joint secretary of NPC, told Republica. “The PPP Center will evaluate PPP proposal documents and forward it to PPP cells in concerned ministries. The ministries will then forward the proposals to the PPP center for approval.”

A joint secretary will be the executive head of the PPP Center.

The government is mulling over developing a cable car project in Swargadwari of Pyuthan, Exhibition Centre Development Project of Butwal Municipality, Paid Parking Development Project of Kathmandu Metropolitan City, Mass Transit Service (Tram/Trolley/Mono Rail) in Kathmandu Ring Road, and National Institute of Technology (NIT) under PPP model.

However, private sector is not positive about consolidating BOOT Act with the new bill. “The government cannot replace the BOOT Act by bringing PPP Bill. It should take both the laws in a parallel way,” Pashupati Murarka, senior vice president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) said, adding: “BOOT is the best model to develop hydropower projects.”

The government, however, has announced to develop Nalsinggad hydropower project under PPP model.

Officials say the PPP model will include build and transfer model, build operate and transfer model and other provisions mentioned in the BOOT Act. “PPP bill is being drafted as an advanced form of the BOOT Act which failed to win the confidence of the private sector on long-term contracts owing to perceived substantial risks relating to changes in policy, laws, tariff review and political uncertainties” a high-level source at the Ministry of Finance, told Republica, “The PPP Bill aims to attract more foreign and private investment.”
The source further said efforts are on to harmonize PPP Bill with BOOT Act, Investment Board Act and other sector specific acts.

Source:  Republica