Daily Times

The Asian Development Bank (ADB) has approved a $250 million policy-based loan to help the Pakistan drive sustainable investments in infrastructure and services through Public-Private Partnerships (PPPs).

“ADB’s Promoting Sustainable Public-Private Partnerships Program supports implementation of government policies to create an enabling environment for fiscally affordable PPPs and promote inclusive economic growth,” according to press release received here. “This program is part of our comprehensive and integrated package of public sector management support that balances the country’s fiscal consolidation and growth objectives,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.

“The program will help the Government of Pakistan create an environment that is conducive to strategic, fiscally affordable PPPs that will bring the country closer to its development goals,” Zhukov said. ADB’s program supports reforms that will increase the absorptive capacity of PPP infrastructure investments by creating a more robust and integrated legal and institutional framework for public investment management and public financial management for PPPs. According to press release issued here, the program supports implementation of an integrated PPP policy. The reforms will facilitate efficient infrastructure planning and promote sustainable development practices in infrastructure projects, such as climate risk screening and gender considerations in project feasibility assessments and PPP contracts. “Mobilizing private finance through PPPs can help to bridge the financing gap in public sector infrastructure projects-which is vital,” said ADB Economist Sana Masood, adding the program would help ensure PPPs in Pakistan were structured correctly and implemented effectively in order to deliver more efficiency, innovation, and value for money.