Frequently Asked Questions
A Public-Private Partnership (PPP) is a long-term contract between an Implementing Agency and a private party to deliver infrastructure or public services. The Private Party assumes substantial financial, technical, and operational risk, and is compensated through user charges, government payments, or both, as agreed in the PPP contract.
• Improved access to quality public services
• Timely delivery of assets
• Efficient use of public resources
• Innovation and technology
Unlike conventional projects funded and implemented entirely by the government, a PPP project:
• Involves private investment and innovation
• Shares risks and responsibilities with the private sector
• Requires long-term performance commitments
• Links payment to results and service delivery
PPPs in Punjab are governed by the Punjab PPP Act, 2025 and the Punjab PPP Rules, 2025, which define the procedures, roles, and responsibilities of all stakeholders.
P4A is the central autonomous body responsible for:
• Advise the Government on PPP policies to create an enabling environment
• Approve and monitor projects
• Guide and facilitate PPPs
• Ensure compliance with PPP laws and rules
• Manage the PPP database, guidelines, and best practices
The Administrative Department acts as the Implementing Agency and is responsible for initiating, preparing, and executing PPP projects. It ensures compliance with PPP legal framework.
A PPP Node is a dedicated unit within the Administrative Department that manages the department’s PPP portfolio. It facilitates project identification, preparation, submission and processing of project proposals.
A PPP project can be proposed by:
• Government Agencies (as Government-Initiated Projects), or
• Proponent Initiated (as Unsolicited Projects)
No. PPPs may include both large-scale infrastructure (e.g. highways, hospitals, schools) and service delivery projects (e.g. waste management, IT systems, management contracts), depending on the classification and scope.
Projects are classified by cost and revenue:
• Above Rs. 1,000 million → A
• Up to Rs. 1,000 million → B
• Up to Rs. 500 million → C
1. PPP Steering Committee – Approves Category A project concept and the Project Development Facility (PDF) for any category.
2. Departmental PPP Working Party – Approves Category B&C project concept.
3. Divisional PPP Working Party – Approves Category C project concept.
1. Authority – Approves Category A project proposal and project support for any category.
2. Departmental PPP Working Party – Approves Category B&C project proposal.
3. Divisional PPP Working Party – Approves Category C project proposal.
A Transaction Advisor (TA) is a consortium of experts engaged to provide professional advisory services throughout the PPP project cycle.
Implementing Agency may engage a Transaction Advisor after obtaining concept clearance, following the selection process prescribed in the Punjab PPP Rules, 2025.
The Implementing Agency prepares the Project Concept using the prescribed form (Schedule-III) of the PPP Rules 2025 and submits it to the competent forum (PPP Steering Committee or Working Party) for clearance.
After concept clearance, the Implementing Agency develops the Project Proposal either through in-house resources or by engaging a Transaction Advisor. The detailed Project Proposal, along with the prescribed form (Schedule-IV) of the PPP Rules 2025, is then submitted to the competent forum (the Authority or the PPP Working Party) for consideration and approval.
Proponent prepares the Unsolicited Concept (USC) on the prescribed form (Schedule-V) of Punjab PPP Rules 2025, and submits to the concerned Implementing Agency. After Reviewing the USC, the Implementing Agency place the USC before competent forum (PPP Steering Committee or Departmental PPP Working Party) for clearance.
Once the Unsolicited Concept is cleared, the proponent prepares the Unsolicited Project Proposal (USP) using the prescribed Schedule-IV form under the PPP Rules 2025 and submits it to the Implementing Agency. After a detailed technical, financial, and legal appraisal, the Implementing Agency presents the USP to the Authority or the Departmental PPP Working Party for approval.
Project support may include, but is not limited to:
• Concessions, licensing, and collection rights
• Tax cuts or exemptions (subject to Government approval)
• Provision of utilities and land rights
• Fiscal commitments by the Government
• Funding from the Viability Gap Fund (VGF)
• Subsidies, grants, or loans
• Minimum usage or revenue guarantees
• Standby Letter of Credit (SBLC) (subject to Government approval)
• Commitment to take contingent liabilities
• Protection against revision of tax rates (subject to Government approval)
• Inflation rate, exchange rate, and interest rate indexing
• Right to use Government assets
A PPP Contract is the formal agreement signed between the Implementing Agency and the Private Party for the development and operation of a PPP project, defining rights, responsibilities, and risk allocation.
It refers to the stage when the Private Party has secured all financing arrangements and fulfilled the conditions precedent required to start project implementation.
It is the duration agreed under the PPP Contract during which the Private Party implements the project and recovers its investment.
The Viability Gap Fund will support PPP projects that offer strong economic or social benefits but are not financially viable on their own.
The amount approved by the Steering Committee during Concept Clearance, if required by the Implementing Agency, for engaging Transaction Advisory Services. Any PPP Project Concept requiring funding from the PDF must be submitted to the PPP Steering Committee for review, clearance, and funding approval.