Monday, September 16, 2024

Infrastructure projects: G2G pact with Denmark on the cards

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ISLAMABAD: Pakistan and Denmark are to sign a pact on Public Private Partnership (PPP) for sustainable infrastructure projects including development of container terminal and adjacent logistics on G2G basis, well-informed sources told Business Recorder.

The objective of the MoU is to enhance cooperation between the participants in order to improve the quality of life in Pakistan and to accelerate sustainable economic growth of both the countries through promoting and enhancing green and sustainable PPP investment in Pakistan.

The draft MoU provides the framework under “The Inter–Governmental Commercial Transaction Act, 2022” and further “The Green Framework Engagement between the Government of Pakistan and the Government of Denmark for a greater and sustainable future with the affiliated plan of action (2023-2027)”.

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In this framework, the participants will take an active part in or provide the necessary support for the process of PPP project realization, including identification of projects and potential investors, financing, operating and /or managing, following their respective national laws and regulations.

The sectors covered by this MoU emphasise green and sustainable growth, whereas the sectors covered under the MoU include the following: (i) logistics and transport- port and inland container terminals; (ii) renewable energy and energy efficiency; (iii) water, waste management and resource efficiency; (iv) agro and aquaculture;(v) urban green development; and (vi) any other social and economic infrastructure.

Pakistan-Denmark Joint PPP Platform (between the participants) will be established to develop and implement the areas of cooperation outlined in Section where appropriate, representatives of relevant ministries and agencies, and the private sector will be invited by the Participants. The structure, members and communication protocol of the Joint platform will be determined through separate consultation and mutual understanding between the participants.

The participants will make utmost efforts to implement this MoU in line with their respective national laws, regulations and policies.

Each of the participants will provide potential PPP projects to be examined in the Joint platform as outlined in Section 3 and the joint platform will select, if any or more projects in which private sector entities from Denmark i.e. Danish investors may show in interest.

The Embassy of Denmark will provide information of projects selected by the joint platform to suitable Denmark investors, and, if one or more of them show interest in the project(s) and the investor(s) meeting the applicable criteria, if any, set by the GoP, the Embassy of Denmark will recommend the Danish investor(s) to the GoP through joint platform.

Copyright Business Recorder, 2024

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