The Sindh government has made modernisation of agricultural storage and handling infrastructure in the province a key strategic priority.
This strategy is central to the government’s stated objective of enhancing food security for the people of the province.
The provincial government has announced the commencement of bidding for the Modern Grain Storage Public-Private Partnership Project.
This would be the first public-private partnership project implemented by the Sindh government in this sector, and would hopefully be a successful model for greater public and private sector cooperation in developing the province’s agriculture sector.
The provincial government is among the leading proponents of public-private partnerships in the country, and this project builds on the success of the recently closed Hyderabad-Mirpurkhas Dual Carriageway Road Project, which was also implemented by the Sindh government.
Under the grain storage project, the provincial government would be inviting investors from the private sector to develop modern bulk storage facilities with a total capacity of 250,000 metric tonnes across five selected districts in Sindh.
These facilities would primarily be used by the provincial government to store annually procured wheat; however, they would also be able to store other grains when required.
Bulk storage facilities are recognised as being significantly more efficient for wheat and grain storage, and over the past 30 to 40 years, most major wheat-producing countries across the world have moved towards a bulk storage and handling system, leaving Pakistan among the last few countries that still uses a bag-based system.
Introduction of such a programme in Sindh through this pilot project would be an important step towards modernising the province’s current grain storage infrastructure by storing grain in a safe, secure and clean environment.
The provincial government would be keen to build on the success of this project and engage in further similar transactions that would help modernise the entire grain handling and storage infrastructure in the province.
The government has appointed the International Finance Corporation (IFC), a part of the World Bank Group, as its adviser for this project.
With the IFC’s assistance, the provincial government would conduct a fair and transparent tender process to select a private sector investor, who is technically and financially qualified to design, construct, operate and manage the bulk storage facilities under a long-term Build-Own-Operator contract.
