Gilgit-Baltistan Public-Private Partnership Act, 2019 (Act No. IV of 2019)

6. Public-Private ·partnersllip Unit.-( 1) The Government shall, by notification, establish the Unit in the Planning & Development Department_to _ promote and facilitate tl1e development of Pµblic-Private partnerships in GB, assist an Agency in preparing and executing mega projects which could afford the cost of project structuring and due-diligence, and act as a catalyst for Public-Private partnerships: ' (2) To achieve the objectives in subsection (-1),the Unit shall: 1. • Assist the Board in formulati.ng, implementing the Public Private Partnership Po.licy and provide technical support to the Board and act as .its secretariat; • •

11. Develop operatin·g guidelines, procedures ·and model documents for •·. projects fo~ approval by the Board;-· • • • .;. m. ·Develop. technical and h~man reso~rces t~ support Public-Private--~, partnership initiatives at the Agencies; • IV. Provid~ technical support and advice to the Agencies t~dughouf the Public-Private partnership process; V. Evaluate . an'd. prioritize •project proposals •submitted by . the'. Agencies;· • • •• VI.· Evaluate the type and amount of gov~rnment support sought for a •project, revi~~ the bid evaluation rep~rt submitted by a1:1Agency. • v11. Prepare and regularly update a pipeline of projects, viii: Oversee· project implementation and issue semi-annual review and': - annual. consolidated. reports on the·· Public-:-Private partnership( projects and_ • • ix. Perform any other functions and duties which may be assigned to iti by the Board. . • • .. \ . · · (3) The Unit may procure for consideration or for free technical and.· professional assista~c_e and ~dvice •which· it deems . necessai:y from -othed governmental authont1es, multilateral agencies, professional bodies and private,: firms. The _Unit m~~ al~o p~o-\i~e te~hnical assistance ··and advisory services to,, the pers?ns and entities m GI1g1~-Balt1stanand elsewhere for consideration or Jot; f~ee, as 1t deems appropriate. • _ (4) . P:~blic-Pri~ate Partn~rship Unit, however,. m~y· take up· pr~Jec( str~ctur~ act1~1t1e~mentioned at-~ection_7 (2), eitJ1er on. the request of an agency! or if the ~ubh~:Private _Partnership policy Board assign this task to Public-Privat{l Partnership Umt_ . - . . • . '. ·· · . . _ · . . . ::{ . ·... l. :·. :/:t ' ~ ·:&. ti<·_ ,.__ ;;: '. . ·::., ·..·.. :-.....,,·.-,".. ....... ' . .;·-. :•;,•. ,-',· .. .,.' .' , •.•: . '' ··,;-,:_: •,. ·,.. ·::- '...-'' t® .... ·••·,· ·,· •.... ,,...•·:. '•. '.· ; .... $· ...• , · •·THE GAZETTE ()FP AKISTAN,EXTRA.,. N()\l: s,201? :l'A1tr'IJ.••.• 117 r . 7. • Departmental Pilblic~Privilte Partnership Nodes,--{!) the ;· • ·admin_istrat1_ve head of each ·Aget1cy which seeks to. implement a·;pr<;>jecforia· •. ' 'Puql_ic~Private-partnership· basis, shall :form a Public-Private partnership Node •• . •with the ·approval 'of concerned Minister consisting of officers from within the· Agency ·or 9ther Agencies as the case may· be, which may includ~ representative • ' •frori1the Indus~ries, Labour & Commerce, Gilgit-,Baltistan Board of Investm_ent, ·- C~ief Minister Inspection Tearn,. Works, Fi'nance, Environmental_ Protection Agency and Water & Power De.partment ·GB,. ·and independent-technical ap.d legal ~xperts if deem~d appropriate to develop.the ·project. • (2) -The Public-Private partriersh~p Node shal_l: 1. • Identify suitable "projects and prioritfze. the~e within its sec(or. or geogr~phical area qf responsibility; : - , •

11. Recruit advisors.for project p:reparaJion and tendering; ~

111. Supervise .the p~ep~tati~n-of the feas~bility ~tudy and i{its outcome is·_positive; s~bmit th~ project--p~oposal through the _Unit_·to the • • •B·oard; • IV. • C_01:1duct .a _c~mpe~itive. __tendering· pr~ce~s ' consisting -·, of . pre-qualification and biddipg . • to selectthe private party;. . . '' • • • • ·., i • • •• ·• '• • • • • l . . , V. Carry O!Jt bid evaluatio'n and submhn~~ommend~tion on- cc1_ntract award to the_Board; . . v1. Negotiate and sigil the._Public-Private part~ership,Agreemeht; . VIL Monitor and evalµate implementatiO!} and operation of the project; .• , .v111. If. ne~~ed, se·ek support and_, adv1ee · fr~~ the' Unit for the perfon:n.ance of any of the above function; and lX. Prepa~e perfodic progress reports on the Agency's: project~ 'to be- submitted to _the Public~Private Partnership Policy Board through Unit. • 8. · ·Project Implementation, Unit.~ O -Roreach Concession Contract . _, c;\W_ard~d _to a Public 'Private Partnership Company;' there shall be :a Proj~ct ' . ' • •.I~pl~mentatiqh Unit; to~oversee day to _dayi_mplementati_on,particularly '<luting. ·:''.- .. ·: ·, :tµy,cqn$tp1ctfon periqd ,9f the,,project in term~·.of t!Je.Pub_lic-:Privatepartners~ip'::_:t-.. \··; \··· ,: ~#(lelll~rtt atl{the Iawsi~. f9r9e; , ~ ··...··. i : • • · ..·· •••·. , • ' •• • • • ••... < ., 5 2 1 '.••z1~1s~-~===···.~~~HE~G~A~Z;;E~T~TE~O~F~P~A~K~· 1~s~T~A~N~, ~E;;X~T;;RA=-~==·N=o=v=.· ==,= 7~=9=·===:===="[==P:::;AR~_g .•)"· (2) The Project Implement~t!on qnit may be estaliiished, a's a~d_wh~n•..••• th .· needed at the discretion of the adrnm1strat1vehead_of· e Agency-consist~ng of,->. its offi~ers. Th~ administrative head may appoint ~utside_o~ficers, p~ofess1onals' ;-• and consultants to serve on _theProj~ct Implementa!ton_Umt tf so reqmred. ..•• .· . · (3.}. The Project Implementation U~it, shall- _also·liaise b~twe~n·_the· Government and ·the Public-Pti'vate partnership Company for effective proJect implementation. · (4) The Departmental Public-~rivate partnership No~e _sh~ll be. responsible to the administrative head of the Agency _andshall provide it and the Unit with petiodic progress reports. . . . • · .· · (9) ..Risk Management Un.it.-· The Government shall_notify/ estabiish. '.. a ri~k management unit in Finance Department !O ~ct as a fiscal guard~an for the-_ ,f • projects. Risk Management Unit sh.all:. 1 •' a .. _:Develop ~isk management guidelines for approval by the Board •. b. Provi_desupport and advice to any goverrurient agency with regard· to risk management in a project throughout. the· public private. --> partnership process.--~ c. Exa~ine in consultation with ·the Public-Private· paitn~rship Node,. whether requests for gov~rnmerit support. and the proposed •risk sharing arrangements are consistent with the Act, rules . and regulations; and or fiscally sustainable; • • • d.- Make recommendations to the Board through the Public-Private . partnership_node~.. . e-. Recommend the inclusion. of approved. government support· in the annual- budget;· Monitor. direct and contingent liabilities· of the • governm~nt incurred through the projects; f. Perform such other functions __ as· may be prescribed or as the Board. may assign. • • l CHAPTER III PROJECT DELIVERY PROCESS · _9. . Public-Private partnership. arrangelri~nts.-. Subj.ect to obtaining. •·, ~11r~qmr~d approvals and completing the necessary- due diHgence and appraisal . ?f the proJ~ct f1n~the prospective private party,.an Agency.may: t ..:, .r ,'_,,·... . , ... · .' .• , , • •. • , . , , . .• .' i. . Enter into a Public-Private part'nership •Agreement .with the private .. ••·" party, through its a9minist~ative secretary' or officer with equiyalent -. : .•• .•·•,,,--:c--~-:;-:-:--~----;---- ... '':"-;·'• -THE GAZETTE.OF J>AKISTAN, EXTRA.,NOV. ' • • ~ ' • • • - • s;,2019 • ~ > ' • 7i9 rank and status,. for the. perfohn~nce of any of the ;:fari~us _tasks_. related to design, coi1struction, • operation arid maihtenance of infrastructure .facilities;: .. . . .. .

11. Affange or provide for a payment to the private party in accordance •with the terms· and c6ndi.tioi1s of the· Public-Private partnership .Agi~eement; .. Ill.· Enter into an ·agi·eement with any entity for funding or gua_ranteeing • a Public-Private partnership project; • • • Transfer, through the. Administrative Secretary, _an interest in a Public-Private.partnership project to a private party or subject to the ·approval of the ·Government, to a norninee of the·private party by_ transfer, assignment, conveyance, lease, .license or otherwise; ' ' V. Enter into an . .... arrangement .,·· with . ·a~y other Agency, . . the Government Departmen~ or· a body, board. or entity o\Vned or controlled by the Government for·a Public~Private partnership project; and . • v1. Subject to the Public-Private partnership Agreement, assume or transfer an interest in a ·pdvate party or n~minee of the private'a' party by transfer, assignment, ·conveyance,_sale, grant 9r surrender. •• • 10. Projectidentification and preparation~-(1) Ari Agency shall '' identify and prepare a proJect, anl s~an ~omplete this phase before tendering. -:,. ·(2) • The Agency shall identify and conceptualize potential projects frorri. • · -its master plans arid otherplanning d_ocuments. , • (3) • the preparation of the proje_c!sshall consist of a feasibility study, . initial environmental examination, environmental impact assessment in line with • . Industry international ·best practices if required, risk analysis, analysis of the need._ f9r Government . support, stakeholder . consultations, determination of •the appropriate Public-Private partnership modality, and· preparation of bidding docu~ents ·inclµding a draft Public-Private partnership.Agr~ement. (4) The Agency shaH prioritize·the projects ·within its sector ·and, .or • geographical ,area ~sing criteria such as· supply and demand g~ps, ·social and •• economic benefits, financial attractiveness, risks and uncertainti'es involved, ahd: . readir1ess for implerperitation. • •1 ~:: -· •• ·.cs}. The Agency shall submit ~ach vi~ble project pro'po~al:tlirough;the Unitto~the '13o~rd.• • • • • J .. THE GAZETTE OF PAKISTAN, EXTRA,; NOV. 5, 2019 ~ ·• [P.AR1j. 720 -~·-. ·p . t pr1·oritizationand approval.-(1) The Unit shall exercis·••••.• . 11.• roJcc . . .. . ·. e . . :t· l by reviewing the viability of the proJect proposals and-_. quality con ro .. . . .: completeness in terms of do~umentat1on. . (2) The- Unit shall prioriti~e t~e pr~j~cts- that -~~s t~e review across, sectors by taking into account provincial development. obJect1ves, and subrni.t, them to the Bo~rd for approval_. • • .(J) · The Unit shall include approved ·projects m a. priority list and • • widely publi~ize th,em_. •_ ·_ f 2. Approval of government support.-{1) Reques_ts•for government _ support described in Section· 15 shall be an integral pali __ of the project proposals . •submitted by the Agencies. . (2) • The Unit sh~ll •revie\-v and analyze all _requests for government ~ support with budgetary implications and· shall evaluate the justification _and _ eligibility- for ·such support and the fiscal impact of the related direct and contingent liabilities. (3) Based· on this. review. and analysis, the Unit shall make a. ·- recommendation to the Board for approyal, _rejection or reconsideration of the requested support. (4) •After- approval of the Board, the Unit shall- make ~ecess~ry _arrangements for including such support in the budget. •13. Selection ~f tht: private party.-(1). After. the- ~ppro.val ·of_the • project proposal . . by the Board, the' Agency shall· select-the private party for the "· ). project through open competitive bidding. ~)i-L- (2) The Agency shall not enter into dir~ct negotiations with any persgn without open competitive bidding. Clarifications may take place_ during the bid evaluation process. subje~t to principles of integrity, transparency and· equal ·opportunity. • • 14. .Change of control and transfer restrictions.-~-(1) If a Consortium is the pre-qualified· person, it shall notify the Agency of ail changes in.the shareholding of the Consortium prior to.contract award. Such changes may be approved by the_Agency, provided they_are carried out in confqrmity with the _· terms a11:d·conditions of. the bidding and do not jeopardize the Consortium'.s pre.;:qualifi cation; . '. ~' "' THE GAZETTE: OF PAKISTAN,' EXTRA.~,NOV, 5', 2019 721. .' I. _ (2f' If the -co~sortium· fails_ to con)ply witli-re'quirement ofsub.:.section , '14(1), the con_sortium sh~ll-be disqualified; • _ • •(3). After. the contract award, the members· of.the Consortium m~y, ;ith _· •the prior approval' of .the Government and subject to conditions set forth in the - Public~Private partnership ,Agreement, voluntarily or h1voluntarily cau·se, permit or.undergo any change of confrol; or transf~r their-interests in the private party to ·third parties, provided they are able to be replaced by.an.entity: or entities atleast as ·legally, technically a1_1d financially qualified to 1neet their project obligations. 15.· Governm·enf support.~l) Governmer:it support approved by the Board for a project may i_ncludeany of the following: • •

1. 't\dministrative support to the private. party consistent with the_ private party'~ responsibilities under the Public-Private pary:nership Agreement • in obtaining_~ licenses •and clearances·· -from· the Goyernment, a publ_ic_. se.ctor · organization or-·an Agency,· for the purposes of the project on such .terms ·and _conditions as .rriay be· _·prescribed;. provision •of utility co11!1ections•for power, gas and water at project site; acquisition of land or rights of way necessany . for the project;· rehabilitation and resettlement of displaced persons directly required '-to\ execute· the· project; - and any other . administrative responsibility; -- • , . IL Asset-based Support such as leasing land and / or infrastructure •facilities owned by the ·aovernment -or an Agency' t<?the ·private .. party. The need for this type of support shall be 9etermined on ·a case-by-case basis;, • • , ,

111. Direct financ,ial assistance through· the Viability Gap Fund. This type of suppqrt ,-shall be offered only. for . projects which are •• economically and socia)ly viable but not financially attractive if ' constrained ·by affordable user fees; its amount shall be determ_in~d .. through bidding. Go~ernment guarantees for political risks under theG~vernment 1s . control such as changes in the Public~Private partnership policy, • , ' delay' of agreed user fee adjustments, early_ termination of the Public-Private partnership Agreement with no fault of the priyate party, and. expropriation; this •type of· support' shall be made availal;>Jefor aJI projects;.and Government guaran·tees for other risks such a~ force majeure, • demand risk,· and default by an Agency on payments for ,vorks and • .. j • " ·' . - . . .. - . ',' i •• • 1 ' . .,. ,,.. :~l .),?, ,-;:.~.? • -- _'.,;~:." ,. ~2~=~.-rTI~ ~72 ~i} 1~E~G~A~Z;;E~TT~E~O~F~P~A~t{~I~ST~A~N~-,~E;;~X==T=RA=·==' =N=O=V=·=5=,2=0=1=9===~· servic~s delivered by the private party (off-take risk)~ the need f;f'i this type of support shall_be determ.ined on a case-btc~se basis ~:> part of_ the risk sharing an_alys1s undertaken during project/ prepa~ation. , · • . (2) All of· the government support· f~r the pro~ect ~~all be clearly '_ indicated in.the bidding documents and included m the Pubhc-Pnvate partnership•• - Agreement.·

16. Pr~paration· and negotia~ion of_-Public-P~ivate ·partnership.; Agreeme~t.~l) The cl.raft_ Publ1c-:-Privatepartnership Agreement s~aHform a :__ pa;t _ofbidding documents.· •(2) · The draft Public-Private partnership Agreement shall clearly define C: · the.legal relationship between the Agency and the selected private party, as w~ll • ·as their respective ri'ghts and responsibilities, .including the specific government.· .. suppprt for the project.. _ • ·. (3). The draft Public-Private partnersh.ip .Agreement shall include but :_ n~t limited to the following provisions, as applicable: • 1: • Type of project;

11. Term Qfthe Public-Privatepartne_rship Agriement; 111. • Scope-of work and services to be provided underthe project; ·. . \ , •. IV. Main technic_alspecifications arid perforrriarice standards; V. Environmental and safety requirements; Vl. Implementation milestones and completi?n d~te of the project;, v11. Cost recovery scherrie through user fees, including a·mechanis~ for . '. periodical adjustment; • . . v111. Pe,rformance bonds for construction works and operation; 1x. Minimum insurance coye~age; .. x. Acceptance tests and procedures;· x1. Rights and obligations • of . the· parties fo the _·Public:..Private • · pa~nership Agreemept, iriclu.ding risk sharing;. xii. • P~nalties an,dJiquidated da~a~es provisions;for delays;· . .xiii. .Type ,a~d an:ioqntof q~veminent support; .. XlV .• Hand back requit~men~-at the.end of the term of.the Public-Private . Partn~rship Agreement, if a~y; • ,. • • •• •• •• • xv .. Warranty period and procedures after the.hand back; . ', xvL Require~ents and-·procedl:Jre for yariations of the I_>ublfo-Private partnership Agreement; '·. xvii. Grounds· for ·and effects ·of ·termination· of the Public-Private partnership Agreertlent in~Iudingforce majeure·. -~viii.Compens~tion forrnu~afor early te~ination scenario~ •• xix~ _Proced~res and venue for dispute re~olution . xx .. Financi~l reporting by the privat~ party; and ,xx1. Supervision mechanism of the Agency (4) · The · Agency shall • not enter· into a Public~Private p~rtners~i~ Agree~ent unless the .procedure specifi~dj,n this Act has been followed. • (5) Contract n~gotiations· .·for· the con~lu~ion· .of a ·pl;lblic-Private. partnership. Agreement shall be completed between th~ Agency and the private'· [/, parfywithit'l six months after .the contract award. .•. • • • ••• ·:·_,.~.17. Projecthnpl~mentation-~;md ope_ration.--(1)-Beforesigning the.· ;:·.L . Public-Private partnership Agreement with the Agency; 'the prjvate party may • • establish,. without changing its shareholding and subject to conditions set forth~in . the bidding documents, a special purpose. comp.any for. implementation of the . . , _proje~t,which shall assume all the rights-and obligations of the p~ivate party. I :. ·• ••(2) • F~r major construction works,. the private party .shall· prepare a. .. :'.:':.defajled engineering design arid impleip_entationplan.in accordance with the main techn~cal specifications prescribed. in the PubHc~Private part_nership'.Agreement .an,9-submit.it t~ the.Agen~y . ' . ·' . for approval : prior to.the start of. . construction ' • ., . • . ~ ... .· ~ •. _. (3) · The private. party shcill,~carry_ out the construction for the proje~t in . • 'accord~nce 'wit_hthe_,performance s~c1:nd~rds and specificatioris presc!ibed i~, th~ , . approved . ·,,.: engineering . . design. . . .• . ·' • •. ,.}:, _·· ..,, ' ..... ,: \:_,.-~. >~- ,.<i ... • ••.. •. • s·TAN EXTAA.; NOV. 5, 2019 [PARTIJ THE. . GAZETTE _O:FPAKI · ' . . .- 724. ... . ·_ ·ts ·fonnance in the construction works, t~e ~rivate :; . • (4) To guarantee 1 per - -' • h 11b 1· -· · · · . . fu . h •bank guarantee, wh1ch s a e va 1dup to the • h 11post a.bond or _mis a . • . part)' s. a - . .• d d 'the construction contr~ct ~nd acceptan~e by the • d of the warranty peno un er . ~ •• . . .. en . ts: hich include operation by the pn~ate parey, the pnvate·: Agency- for proJeC , w . b nk t ·, -'- . ' . fu . h • - ther performance bond or a guaran ~-eupon the ~ arty shall post or mis ano .- - . •h h • ·P - f h leted works to guarantee e:omphance wit t e op_erating_ • I' acceptance o t e comp . h. A . .•• · d sta·ndards sp.ecified in the Public-Private partners 1p _greement. _ , parameters an _ _ . . • . - ••.• ~ ... . . . (S) Within twelve_ months of the sign~ng of th: Public-Privatej · h. A. ent t·he private- p·arty ·shall achieve financial close for. the-__ -~ partners lP greem . , · ._ . . . - • . . • . . ·;. project or as the case·may be in the Concession Agreement, ~efined ~§ a le~lyj binding commitment of equity holders and le~der~ to p_rov1defundm~ for· the? . entire investment. Any delay in reaching ?nancial close b~yond such penod sha?}f •be reported by·the Ag~ncy to the Board;_with an explanat1_onfor the delay s~ tq~tt• the Board can determine• if the project _is capable of p·emg financed unde:. the,:1. propqsed P~blic-Private partnership modality or whether other alternativ~~:D including traditional procurement should be considered: . _ •~.\;,_ CH PTER IV PROC REMENT . . .. ,. 1'8. Public procur m nt law to apply.-(1) The procurement' pr'?ce·ss;~~ shall. be governed under Gil it-Baltistan Public Procurement Rules framed fro~'_;~ time to time/ Public ~rocurement Rules 2004. _~· .~ ~ ~ 1 ·' (2) The Agency shall' ensure that the Giigit-'Baltistan Publi9'~ Procu~·enientRule·s/ Public Procurement Rules 2004 have been followed in letter:.fj and spirit front the· pre-qualifica!ion stage thro!,lgh bidding· and contract signing.}~ In all instances, the procedures shall he transpar.ent ·wi(h full disclosure of the\1 prpcedures ~nd res tilts·of the pre-qualification a~d bidding. ;j • •• '.--. : ,. ... ' ' - -~ . 3. , In view of the special_ characteristics of procurement for Public-·-~ Private partnership projects, the· Board shall. periodicaily review,. with· assistance;- of the Unit, the Procurement Rules ~hich apply to ·PubJic-?rivat¢ partnerships, :_ • a_rn;lseek any changes which are needed for successful operation ·of the Public-• ,j Private partnership p1:ogram. • • • - " • • • ; .. • -~ ,j . .: ~ -4. ·_On ~6mpletic>n of the private ·party's ~election-process; the Bo.aid.{ shall certify that_in its opi~ion, the _sele~tionof the private party has bee~ made·~i{j _c?mpli~ce \vith the Qilgit-Baltistan •Public -Pro~~rement Rules 2019/. ·Public ·'.'. Procurement Rules 2004. ,- \•,•,, · C • - _, • , •· · • • ,· • ,.., :T'.°T ~ •• ~:~ •:- --THE.GAZETTE OF PAKISTAN, EXTRA:,NOV. 5,.2019 725 • ,, ,.•19. • Award t~rough .open bidding.-.· Public competitive bidding shall •be applied -for the aw~.td•of all Public~Private· ·partnership projects strictly in . _ac~ordaIJ.c~with the .provisions of the Act. 20. •Unsolicited· proposals:- A person may propose a project to an 1 •,If Agency ·on its own initiative, and will be subject to the pr9curement procedures f · _·_·as ~:-. may be prescribed. • CHAPTER V ! I." • • FINANCE

21. Financing.- (1) Financing ofa Public-J>rivate partnership project may be·.-in such amounts and ~pon such terms and conditio_ns·as may be _ -determined by the parties-to the·Public-Private partne~ship Agreement. Without _limiting ·the generality of the foregoing, ·the private party ·and the responsible Agency may propose to utilize any or all ·reyenu_es:whicp may be av~ilable to them by law to:-

1. Issue debt~equity, or _othersecurities ~r o~ligations; 11. : Enter into leases, concessions~ and grant and loan agreements; _ iii. Access any designat~d funds; • • : . . • •• IV. Borrow o_raccept grants.fron:i any source; and' V. Secure any financing with a pledge of, security intere.st in, or Iieh. on, any or all of'its property, including all of its property interests in the facili~y.- (2) The Government may enter into an agreem'-ent with senior secured - l_end~rsof the private party pursuant_ to which, in the e~ent of default of the.- private· party, they or their duly appointed representativ:e -will have the right, but not the obligatio9, to step in and replace the private party or any of its contractors to cure. the .default and avoid termination of the Public-Private· partnership •Agreement. Such agreement will be negotiated and signed at or before financial close.· • ' . 22. Viability Gap Fund.-The Government may establish a Viability _ Gap Fund to support' ~ub1ic-Priva~e p~rtnershipprojects and finance the gap .·:_between.project . revenues constrained :6y· affordability considerations and • ·revenues needed, to "generate a. fair return 9n investment for the Public-Private . - p~rinersh1pprojects_. • - •- •• • ·, • • • •, 'L • _ .._t, • .• ,• • • • • • • 5t : • 726 - THEGAZETTE.OF PAKISTAN;Ex'TRA., .NOV'. 5,2019 ·- [PARTI: .••-. 2J. User fee.~l) The Goveni:ment inay impose and 'revise, thr~ugh a • notific.ati~~·in -the official gazette, single or multiple us~r _fees.·for differen~ uses of the Public-Private partnership projects by d.ifferent cl~sses_of the users .• • , . (2): •.The. Go~ernme.nt may exempt, through notification in -the official ·gaz~tte, c~rtain 'classes ~f users from pa~ment of the user foes. - : •• • (3) The Government ma;• entrust the private party ·with collec~i~-nof - • user fees. , . . . (4~ The Gqvernment shall set the user ·.fees at levels that ensure the- financia( viability-of the project and .fully cover the operations and maintenance a fafr return to the private party. Notwithstanding the foregoing, if _expenses, pl1:15 the GovernmenLelects to _maintainthe/user.fees at levels ·below levels that would- --·_"":~- ~nsure financial viability as described _herein,then it shall compensate the private - · ,,.,, party for the diffe~ence through the-Viability_9ap ,Fund. (5), lJnie~s specifiedotherwise in the .bidding documents, the Age~cy <:~~ shall determine, : through . bidding, the -user _fees • whicfi shall be •adjusted , -~ periodically during the term _of the Public'-Private partnership- Agreem~nt based · t~'- ../ on a formula using official . pnce indices •set forth m the Public-Private partnership Agreement.

24. - Reports -and audits.-- The Agency .shall .include. appropriate ._ reporting and au_ditrequirem_ents in the Public-Private partnership Agreement;. taking into consideration· the nature of the project,. its business structure, the· .source of financing and the financial commitments of the Government to the _private party. To the extent requir~d, the Agency may retain outside consultants and auditors to perform periodic reviews of the private party's accounts which may include the sa~e reports submitted by the private party to its lenders. CHAPTER VI .OtherIssues 25. . Power to prescribestandards..-. The Government may~_ . L_' P~escri?e _an~,enforce performance st~~dards for a Public-~rivate . partnership proJect, mcludmg standards. of performance for a private pruiy with regard ~o.different. aspects of the services to be rendered to the .users and the. Government; • • •• -~ IL • Prescr~be quality standards, including .standards for the mat~~ials,- . equi.pme~t,pr~c.es~~s•and resource~(used, or persons employed~ during a~l_stages • •• ~ ~- , <. -·· . ,,, •... ' -~. i ,· i_·~_\.?·?. ,- ·.·' .-"--.·: :~{,~~{;;"t(,\•.''' :., ·., . . .'-''.. , . '/ , ,! • ; , .:· , , ', l~J}.)j,;~r-11··_, -_•:···_:_-_>THEGAZETTEOFPAKIST_,.A·N ___ -.--- __ E_:_,· --:- '. -_· - :·.'.'·..•__•- titt>> ,;:.;: ··- -__-_ . _:• • - . _.· ... ·_ - - - , XTRA.,NCJ\\ 5,_2019_ -. ;, . .., [(,,: __ ,.Qft4e_ptoject!O ensure,suita_ipabl~ ·:defrv~ry_of se,rvice:-:· , - • _,,._· • '.< . '.--•• - - (='.·:.;,:prescnbed-quahty stand~rds; . ·:,; :. .' , ,, . , ', { ,, ' , s a~d ?~here~c~Jq the ~:~ ;· ' " ••••• • ..•III, ·•Liiy<entitlementto •the Viiibility.Ga:pFund,.subsi<l 'annuit, •••• •.•.·• , •··• othep compensat1O~and b_~n~fitswith meeting· cert • e: . . Y, ,Yan~. ,--:may _· ·--·deem ·- • fi-t··, • . . ... .,. .,,. . ·- , _·_ am periormance · . standards as . . 1t __ _ .h. , IV. •Issue alld enforce accountingguid~iinesfor proper accounting,Qf'. t e_:proJects;and - - -. - . - - . - •V. - Prescribe any- other· _standard for tegulating the_ Pul?Iic-Private partnership projects. :· -_.;. (l)_,, Th~ pri;ate party or its sub-"~Ontractors sq~H~~ubjectto sub~sectioh '· f - • • __ (2), _ be _res~onsiblefor_:- arid sh~ll releas~ and indemnify the Agency, its· emplo~ees, agent~ and c_onttactorson demand from ~nd against all liability for--_ _ (a) de~th or persoi:ialinjury; • (b) •, loss'_of or da11_1age to_property, including property belonging to the . G_overnment_orAgency or,for which it-is responsible;, - ' ·:{C) breach... of ·- statutory . duty; and , . - ,. . , - • (d) Billions, ciaims, dein~ds, ·costs, charges a~~r-expenses,including' •lega'i expenses on an indertmtty basis; which may arise out of, or'in --consequence_of, the_design, c_onstruction,opera:tionor maintenance • oftqe assets; the performance or. non-performance-by the _priyate party or • its sub-sub-~ontractors of its· •obligati~ns under the. _Public-Priv~te partnership Agreement; ~r -'the presence ·on· the _ Government's property.of the -contractor,a sub-contractors~or their employees oragents. - • - {3) :-The private party or its sub- sub-contractors shall not b~ respo'nsible . or be_<?Pligedto·indemriify the Ag~ncy for_-. • '~ .. • L-. Any-of th-e•matter referred _to in paragraphs (1) (a)-to ( d) above'.-_ _ - . . ·. which arises as a direc;tresult of .the priy~te.party-or its sub"'.sub- . • contractors Billing .. . • onthejnstruption· . . ·- qfthe Agency; . . • , .. . ·_: ' .• ... _., ...- -ii. ,,Ady injury, loss, da1~-age,,cos.t an~ e~p~nse •caused ,by the , •. _negligence or willful def~ult of the Agency,_its _em~loyees!~g~nts,. , , :.•or, sub~contractors,-or,:a:l~~iachby the Agency _ofits obltgat1ons . - ' under·the-Public-~riv~J~Jjfi.~pers~ip Agreement-,_or , . ' - ,' : ' ' ' J:~!~i~f 1 2~: •'• • • • .. •.. THE GAZETTE OF PAKISTAN, EXTRA., NQV. 5, 2019 728 ! . !i Any claim~ made uµdet this Act _in respect of the Government's - • .J. property._ I',, I 11 [f. . 27. Dispute resolution.- .: (1) If a dispute arises out of or· relates to the Public-Private partnership Agreement, or the· breach: thereof, and if that dispute cannot be settled through • : direct discussioris, the parties. shall. first- endeavor to settle the dispute in an . •amicable manner by mediation administered by an independent and_ impartial person appointed by the Board, before i-~sorting to. arbitration. Thereafter, any unresolved controvei·sy or claim adsing out :Ofor relating to· the· Public-Private partnership Agreement, or breach thereof, shall be settled by arbitration in the • city of Gilgit .or any other place in· Pakistan or ·as agreed to by the ·parties specified in the Public- Private Partnership Agreement. Judgment upon the award rendered by the arbitrator(s) may_be ~entered in any court having jurisdiction • thereof . . . (2) Disputes. shali be decided in accordance with the law in. force in Pakistan~

28. T~rmination of the Public-Private partnership Agreement.- _ The Public-Private partnership Agreement may. be. terminated in· the following- . • cases: I. End of the term of the Public-Private partnership Agreement Upori completion of the term of the· Public-Private partnership· Agreement, .the private party will hand back any. pub.lie property· to the Government, free and dear o_fall encumbrance's and in satisfactorily condition as determined. by the Government following ~n inspection. The p~ocedures· for the hand back and indemnities if any shall be.set forth in the Public-Private partnership Agreement.· II. Unilateral termination • of the Public-Private. partnership Agreement by the Government Billing in the public interest. Following notice and subject to the procedures · set forth in the Public-Private partnership Agreement, the Government shall compensate the private party for any investments made in the project, including any debts_i~curred and a sum which fairly represents the lost profit on such investments; III. Default .by the Agency under the Public-Private: partnership . • • Agreement of its obligations anq expiration of any cure period, causing the -private party to· rescind the Public-Private partner.ship. Agreement. Following' J: notic~ and subject to the procedures set forth in the Public-Private partnership _ ~- Agreement, th~. Agency shall compensate the private party for· any investments l made in the project, i~cJudingany debts incurred and the fair market valu·e ofthe · . :,-~ equ~ty, or af!y aJ11:0LJJJt that fairly co111p~nsate~the· private. p&rty_for its lost'. ·, · •_<_ ','. ' "' . ; f rn~ (. ·.,r H l f l..n \., 'j '- '' l • •__• • . IV: Default· by the~ P;i~~-te --Pa~fy; under the Public-Private _p~rtnership A~reemen~flf lh~?p'fiVaterpart:y.fai.ls:)f6/cbmply with the ~greed _:~ileston~, 0 ~ fails t~ achieve the pr~s~ribed technical and performance standards, or comm1~ any substantial brea'.ch'•ofrtlieiPubiibJPfivate1ipatthet'shtpAgreement, -~he Agency shall. give written notice of the breach and notice to terminate to the . ,_. pri~ate party anfffollowin~i6x~lriHhii'btany::c'ute' 1pe¥iol:ciay?(t} tak~;over the ..· • ·-·• pro~ect_and_~sume all ,.r~~~frr~-,Y~~iVH~~:. ?t~~~i.~S!(~ffl g~rr?;J~~ipdin)~~its _debt •. obhgat1ons, (2) allow lenders of ~he pnvate ·party to exercise their~step-in nghts • ~~Rst~~~ty_,,jµ\~r~-~~-cl§,,spy_y~µ.~~.)!1 th~}.o:C~-P-:- d9;~µn;1~pt~ fpr,Jh,e ptJ>ject and •r~2}}s~}h~ p.tiy~l~jj_wtx::~;~_.',#1¥:~:am~:'1e,twf~.h~f~9µ.d,~t~9.µ~·;·~-$U.Qj~~t;~O approval of . th1rsuBstitute p'ii\iate''party' by~thttA."gency';" t3)j~~~---,PY~J: tti'.~_rpfpji,ct and auction . the·reinaining term of the Public frivate-Part11.e·rs}1ip Agreeiheiifthrough an open _competitive· bidding to interested" qualifie~t)_n~~-~,~5W~, ~n_g.?_~PP!XL~{l~--P!9ceedsto pay the debts _of the private· party; or (4) invoke~its other contractors remedies · §g£}?:~)iqyj~~t~StQfl:11}~g~;sJ~P!9Q;[ij_irJy~.;r~p~e$.~JJtithY19~gi:e,e;~o.fJf5$S incurred by _ the Government. -. · ••. • - >::;r:;iLTj::) f,f3".\U/;U;)·u_:,.2:._;;_;} •-• • •- . . . . . r'.-.-,:;_:'// :XE:ni/l-g.~P.~~u~reJJ.·~-~;}qf l!!:do..r(!._~·!m.(lj~l!r~-i~Y;~.PtJnr{1h~-:_Public~Priv p~~r~.4ip ~grey,JJ:WPti~h~Jh b~:_;gt!qynq~~·;:rqr ·%~flY:~t.exmin~tio-;n1~t the request of 1 · ~K4~WrP~:-~I.!4- ,~JIqw fgr:t~tr:~a~_Qn~g\ .~b.a!J; ~~lJQf~tipn,-qf.,th,~ Jj$_k:;_pf: 1oss between _• the_ -Governinent and the .private party},.1-'-~h~t) l:~Hp:qaJi9UJ_foJnJhe risk and . compe~ation formula to be applied in. such instance :shall: be set forth in the .Publk-Private partnership Agreement. • -• ;QQ~~. in goo~ -f~ith.-· No suit, claim. or other • -~1-49.~?/JIDWJIJl,~tyi_J_Q;~gt~ ..·legal proceedings by,i~tP,rivateparty or by any person shall-lie against the Bo&rd, . the Uriit,-_,ap.~4g~_i:i¢y-, pr~-~Jl:~9~~per..1ofthe Board, the Unit, and other government officers or consultants, in respect of anything done· or intended to ·be done in good faith and in _accordance with this Act A person or private party; aggrieved with the decision -oCBoard, may file appeal in Gilgit-Baltistan Chief. Court _b~rri~gthe jurisdiction of CivH courts/ District Courts. . .

30.' Power to make ruies.-For systemic and tran~parent enforcement of;\,\Q_i~yfo.fy._r~n~ i 1t9~a;~~ -i~e~tjrg, ctt~A objectives the. Government 1nay, by, • notification in the J:>ffici.al •• . · . . I>', .J gazette, . make rules for carrymg out. the ,\._II, \ •• I _ ·purposes . of ,, • this Act 1n-•,•/t{• 1 ,, i-.\' __,1,i._,1,·,:,) ,- It,'.:,; f ~... J; ),I ,, :) ( I J. • •_. •· . 31. P~wer to frame regulations a·n·dguidelines.-.· Subject··to this Act . and ·the. rul~s made hereunder, the Board may app~ove regul.ati011s,proced~tes • and · •• . idelines to make opera!ions uncle~ tljis. A~t, efficient, tran~parent and • -·· • ··~~-~-'="~,;,~;:;,,+ ..-,;·;~-,",; ,;;1;,,-,'.;;\,,7;Jl~~"0i1!/J,3c>,;Ai~1 ·,rJ·i'~r;rci:c,.111;;,~n'-· - l. ~ •"t•,: ,· •• . . ~·. . : . • • . ~.:·. ,.•. _,-,.,.. .. •. :.. - • ...... "" '.. ' • . . ·~·.-''°! •• \: • • .. ·. ·_J_ < ·SCHEDULE I ./,. .·. ,·;.,,.,. .. : ,1., • I),•••.;,· .,. ... .. .[sees~ctions 2 (m)] · INFRASTRUCTURE SECTORS ., . .I. •Indu~frial & Special E~onomic Zones; .• •.•.• "· ••.. •· .. • II. D_ams;Education facilities;..Health facilities; Housin·g; • . . . . .. . •III. -Infoimation technology; Land reclamation; . IV~ Power. generation facilities;. including ·coal and ,powe~ generation. Roads (provincial highways; district roads~·:bridge,s,or bypasses); ._ti~ Sewer~ge or drainage; •·•·: . .:-//i:f' V. Solid waste·management;. ~ •. ~ VI ·sports or-re~r~ational infr~tnictur_e, public gardens or.parks; Trade ;._:;(;; fairs, or cultural centers;. · VII ... '._Urbai{ti-~hsport including· m~s- _transit or ·bus terminals; Water supply. or·· ~fa:nitation, -·treatment -or ·distribution; and _Wholesale • markets, warehouses; ·slaughter houses or cold storages .. Tourism and Resort Development . •- • =_· _FIDAMOHAMMADNASHAD~.. Speaker •Gilgit-Baltistan Asse]!lbly. I • ,·· ...:·.•. RAJA JALAL HUSSAIN MAQPOON, ' . Governor • Gilgit-Baltistarz. ~ • . I• ~· ,.- ,•_._ . ~ .· ·;·' ~ .:.l •, . j' _) • I.•· "",·' : •• ··':· -~ • • PRINTEDBY,q-_HE.Mi\NAGER, PRINTING.CORPORATIONOF PAKISTANPRESS, ISLAMABAD.• • • <>::/:i·:}>i .· :eoousHE'.o ayh;HE:·o~Pufi-~¢qNTRoL~ER;:s:.r r ANDFO!lMS,l:JNI\IERS1rr.R9AD. A:t.10NER K.ARAc~.. , -~ '· -~- ::;;\:~;:_<·. -~-;_'.-~. • .'. ~ i . ~ ' ) •✓ '