Perturbed by the failure of the Infrastructure Project Development Facility (IPDF) to conclude even a single deal on the basis of public private partnership (PPP) during the last three years, the ministry of finance (MoF) has tasked the management to conclude at least one deal within the current fiscal year.
An official source said that the ministry found the performance of IPDF unsatisfactory, as projects falling under its domain include transport and logistics encompassing provincial, municipal roads, rail, seaports, airports, fishing harbours, warehousing, wholesale markets, seaports, slaughter houses and cold storage are quite extensive. Also under its purview are municipal services like water supply and sanitation, solid waste management, low cost housing, health, education facilities, and small energy projects.
IPDF, the source said, claimed that it was facing difficulties in concluding deals due to the interference of International Financial Institutions (IFIs), which wanted projects to be devised in such a manner that contracts go to favoured candidates. An example alluded to was the freight train project conducted by the private sector on the Pakistan Railways network. Local investors had expressed interest in participating in the project, which was ready for execution but was put on hold when an IFI raised objections.
However, the finance ministry rejected the argument and stressed that the policy and procedure should be transparent, so that all parties involved would have no grounds for subsequent complaint. The ministry also drew attention to the company’s failure in seeking investment for a number of important projects like highways, bypasses, bridges, small hydroelectric plants, CNG buses, alternate energy, a cool chain system under the National Trade Corridor programme and solid waste disposal in urban areas.
IPDF was directed to adopt an innovative approach for any projects under its supervision as the government has limited fiscal resources to build and maintain infrastructure.