RAWALPINDI, June 27: The Punjab government has decided to adopt the concept of Public-Private Partnership (PPP) involving the principle of Build-Operate-Transfer (BOT) for the development of infrastructure in the province, officials said.

The district governments and Tehsil municipal administrations too are being brought into the purview of the new policy.

This decision has been taken in the background of the growing realisation that adequate infrastructure facilities are pre- requisite for high levels of investment and sustainable rate of economic growth leading to reduction in poverty. At the same time, the government acknowledges that the resources available for development are not enough.

The government, officials said, was committed to remaining the major source of financing of infrastructure despite the growing share of private financed projects.

The policy envisages involvement of private sector in financing, constructing and operating infrastructure facilities. The private sector would have to return the assets to the government once it recovered its capital investment plus reasonable profit.

Appropriate legal structure, policy framework and enabling environment promoting private sector investments in the infrastructure, it has been learnt, is being developed.

Under the policy, all other elements of investment like raising of funds, securitization of credit, shouldering investment risk and pricing of the facility would conform to the normal private sector practices prevalent in the country.

The benefits to accrue from the adoption of this policy include reduced public borrowing, direct spending, timely development of infrastructure, accelerating the pace of work on development projects and improved efficiency through private sector management.