August 01, 2008	Friday	Rajab 28, 1429

ISLAMABAD, July 31: Four development projects for Rawalpindi and Islamabad included in the Public Sector Development Programme (PSDP) might be executed under the Public Private Partnership (PPP) programme as the federal government lacks funds.

Dawn has learnt that the four projects are among the 20 mega projects, costing a total of Rs165 billion, which the ministry of finance wants to be removed from the PSDP and given to its Infrastructure Project Development Facility (IPDF) for executing them in partnership with the private sector.

“We have sent a summary to the prime minister to transfer to IPDF over 20 projects in various sectors as it would save a huge amount of Rs165 billion of the PSDP thus giving a relief to the government,” head of IPDF, Ghulam Murtaza Satti, said on Thursday after chairing a meeting.

These projects include construction of IT Parks in Islamabad and Karachi, up gradation of PIMS Hospital in Islamabad, construction of Rawalpindi Bypass, development of Leh Nullah Expressway, Faisalabad-Khanewal Expressway, Peshawar-Torkham Highway, JPMC Karachi Medical Tower.

Mr Satti said that the proposal has been moved on the special directives of PPP co-chairman Asif Ali Zardari to accelerate infrastructure development activities in the country.

These are testing times for the government. Faced with rising inflation, caused by rising prices of oil and other commodities, it would find extremely difficult to fund the entire Rs540 billion PSDP for the 2008-09 financial year.

“If these 20 projects are transferred to IPDF, it would provide a major relief to the government by involving private sector's financing,” Mr Satti said.

He urged the government's economic managers to intensify cooperation and coordination with the IPDF. Executing these projects under the PPP framework would not only fetch private sector's investments but also improve the living standards by generating all-round economic activity.

He explained that the Public Private Partnership (PPP) is a framework under which the government agency, IPDF, is attracting foreign as well as local financing from the private sector in various mega infrastructure development projects. This concept was initiated in Britain and now most of the developed states have adopted this option, which has led to record development in all sectors in these countries.

Quoting the cases of Australia, Canada, Britain, USA, Egypt, South Africa and India, the IPDF head said that these countries were successfully executing multiple projects especially in education, transportation, health and social development sectors.