Make an example that how government of Kp can use BOT type contract. Explain

 

Question; Make an example that how government of Kp can use BOT type contract. Explain

 Solution

 BOT Definition

              Under a build-operate-transfer (BOT) contract, an entity—usually a government—grants a concession to a private company to finance, build and operate a project. ... BOT projects are normally large-scale, greenfield infrastructure projects that would otherwise be financed, built and operated solely by the government

BOT  definition;       First published after having received the assent of the Governor of  thKhyber Pakhtunkhwa in the Gazette of Khyber Pakhtunkhwa (Extraordinary),dated the 7^th April,2014].

AN ACT

To proviide for the participation of the private sector in the financing, construction, development, operation, or maintenance of infrastructure or development Projects or other related services of the Government through Concession Contracts in Public Private Partnership mode and the establishment of institutions to regulate, monitor and supervise the implementation of Public Private Partnership contracts.

Whereas is expedient to establish a favorable legislative framework to promote and facilitate the implementation of privately financed infrastructure Projects in form of Public Private Partnership by enhancing transparency, fairness and long-term sustainability and removing undesirable restrictions on private sector participation in shape of partnership with public sector in infrastructure development and operation

 Example of kpk BOT project The Government of Khyber Pakhtunkhwa and Frontier Works Organization (FWO) have agreed to jointly initiate the mega projects of the province in communication and energy production sectors under Public Private Partnership (PPP) policy of the present provincial government.

This was agreed upon at a meeting of the Director General FWO, Major General, Muhammad Afzal with Chief Minister KPK Khattak at CM Secretariat Thursday. Other relevant officers of FWO and the Communication and Works and Relief and Rehabilitation departments were also present.

The CM welcomed the offer made by FWO for executing the major infrastructure and energy projects and said that partnership between KP government and FWO will not only help improve quality of construction works but such venture would also ensure completion of the projects in much lesser time and at reduced cost.

He told FWO that the provincial government will give top priority to the proposed Swat Motorway and hydro power projects and his government was ready to award execution contract of these projects to FWO. He added that feasibilities of these projects have been completed by the government and they were available for consideration of FWO and other investors informing that certain foreign investors had also shown their keen interest in the projects. He also asked FWO to consider reconstruction of Peshawar Bus Terminal on modern lines.

It was decided during the meeting that a separate agreement between KP government and FWO would be finalized soon for handing over the rehabilitation and ADP schemes to FWO in the flood and earthquake-hit district of Chitral. However these schemes will be initiated after the current snowy season ends.

Khattak on this occasion assured to extend cooperation of the provincial government for permanent rehabilitation of Mirkhani-Arandu road in Chitral which will help boost tourism and mineral sectors besides providing better transport facilities to the commuters. Appreciating FWO’s offer for contributing in the “Billion Tree Tsunami” project, Mr. Khattak directed the environment department for providing saplings to FWO for plantation according to its demand.

The DG, FWO on this occasion expressed interest of his organization in execution of the provincial government’s development projects on BOT or PPP(public private partnershaip) basis and told that FWO was also successfully engaged in uplift projects of the Punjab and Sindh provinces. He also consented to the construction of Nishterabad, Peshawar flats.