ACT NO. VI OF 2012
PRIVATE POWER AND INFRASTRUCTURE
BOARD ACT, 2012
An Act to provide for establishment of the Private Power and infrastructure Board
[Gazette of Pakistan, Extraordinary, Part-I, 6th March, 2012]
No. F. 22(60)/2010-Legis.—This Act of Majlis-e-Shoora (Parliament) received the assent of the President on the 2nd March, 2012, and is hereby published for general information:—
WHEREAS it is expedient to establish the Private power and infrastructure Board for implementing the power policies, the development and implementation of Power projects and related infrastructure in the private sector and public-private partnership basis and to provide for matters connected therewith or incidental thereto;
AND WHEREAS it is expedient to establish the aforesaid Board to promote, encourage, facilitate private sector investment in the power sector and to safeguard the investments already made therein and to provide one window facility to investors;
It is hereby enacted as follows:—
1. Short title, extent and commencement.—(1) This Act may be called the Private Power and infrastructure Board Act. 2012.
(2) It extends to the whole of Pakistan,
(3) It shall come into force at once.
2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,—
(a) "Board" means the Private Power and Infrastructure Board, hereinafter referred to as the PPIB;
(b) "Chairman" means the Chairman of the Board;
(c) "Fund" means the PPIB fund established under Section 14;
(d) "Managing Director" means the Managing Director appointed under Section 7;
(e) "member" means a member of the Board designated under Section 6 or appointed under Section 7, as the case may be;
(f) "person" includes an individual, partnership, trust association, company, body corporate or body of individuals, whether or not having separate legal personality, other than the Federal Government or any enterprise owned or controlled by the Federal Government;
(g) "prescribed" means prescribed by rules or regulations;
(h) "private power" means all activities concerning generation, transmission and distribution of electricity and the related infrastructure, which may be carried out by or on behalf of private sector under power related policies and applicable laws;
(i) "property" includes any right, title or interest in property, moveable or immovable, tangible or intangible and in whole or in part;
(j) "regulations" means the regulations made under Section 24;
(k) "rules" means the rules made under Section 23;
(l) "sponsor" means a person, including consortium from the private or public sector who intend to invest or have already invested in the power sector as per provisions of power policies; and
(m) "staff means the officers and employees of PPIB and includes deputationists and regular and contract employees.
PRIVATE POWER AND INFRASTRUCTURE BOARD
3. Establishment of the Private Power and Infrastructure Board.—(1) There is hereby established the Private Power and Infrastructure Board for carrying out the purposes and objectives of this Act.
(2) The PPIB shall be independent in the performance of its functions and shall be a body corporate having perpetual succession and a common seal, with power, subject to the provisions of this Act, to enter into agreements and contracts, acquire and hold property and to sue and be sued in its own name.
4. Location of office.—The principal office of PPIB shall be at Islamabad and it may establish regional offices at such other place or places inPakistan, as it deems appropriate.
5. Functions and Powers of PPIB.—(1) The PPIB shall exercise all powers which shall enable it to effectively perform its functions as specified in sub-section (2).
(2) In particular and without prejudice to the generality of the foregoing power the PPIB shall—
(a) recommend and facilitate development of power policies;
(b) consult the concerned Provincial Government, prior to taking a decision to construct or cause to be constructed a hydroelectric power station in any Province and to take decisions on matters pertaining to power projects set up by private sector or through public private partnership and other issues pertaining thereto;
(c) coordinate with the Provincial Governments, local Governments, Government of Azad Jammu and Kashmir (AJ and K) and regulatory bodies in implementation of the power policies, if so required;
(d) coordinate and facilitate the sponsors in obtaining consents and licences from various agencies of the Federal Government, Provincial Governments, local Governments and Government of AJ and K;
(c) work in close coordination with power sector entities and play its due role in implementing power projects in private Sector or through public private partnership as per power system requirements;
(f) function as a one-stop organization on behalf of the Federal Government and its Ministries, Departments and agencies in relation to private power companies, their sponsors, lenders and whenever necessary or appropriate, other interested parties;
(g) draft, negotiate and enter into security package documents or agreements and guarantee the contractual obligations of entities under the power policies;
(h) execute, administer and monitor contracts;
(i) prescribe and receive fees and charges for processing applications and deposit and disburse or utilize the same, if required;
(j) obtain from sponsors or private power companies, as the case may be, security instruments and encash or return them, as deemed appropriate;
(k) act as agent for development, facilitation and implementation of power policies and related infrastructure in the Gilgit-Baltistan areas and AJ&K;
(l) prescribe, receive, deposit, utilize or refund fees and charges, as deemed appropriate;
(m) open and operate bank accounts in local and foreign currencies as permissible under the laws of Pakistan;
(n) commence, conduct, continue and terminate litigation, arbitration or alternate dispute resolution mechanisms at whatever levels may be necessary or appropriate and hire and pay for the services of lawyers and other experts therefor;
(o) appoint technical, professional and other advisers, agents and consultants, including accountants, bankers, engineers, lawyers, valuers and other persons in accordance with Section 11;
(p) hire professional and supporting staff and, from time to time, determine the emoluments and terms of their employment, provided always that at no stage shall such emoluments be reduced from such as are agreed in the contracts with such persons; and
(q) perform any other function or exercise any other power as may be incidental or consequential for the performance of any of its functions or the exercise of any of its powers or as may be entrusted by the Federal Government to meet the objects of this Act.
MANAGEMENT AND ADMINISTRATION
6. Composition of the PPIB.—(1) The general management and administration of affairs of the PPIB shall vest in the Board, which shall consist of the following, namely:—
(a) Minister for Water and Power, Government of Pakistan-Chairman;
(b) Secretary, Ministry of Water and Power, Government of Pakistan-Member;
(c) Secretary, Ministry of Finance, Government of Pakistan or his nominee not below the rank of Additional Secretary or equivalent- Member;
(d) Secretary; Ministry of Petroleum and Natural Resources, Government of Pakistan or his nominee not below the rank of Additional Secretary or equivalent – member;
(e) Secretary, Planning Commission, Government of Pakistan or his nominee not below the rank of Additional Secretary or equivalent-Member;
(f) Chairman, Federal Board of Revenue – Member;
(g) Chairman WAPDA – Member;
(h) Managing Director, PPIB – Member;
(i) Chief Secretaries of Provinces and AJ and K or their nominees not below the rank of Additional Secretary or equivalent – Member;
(j) One representative each from Gilgit-Baltistan (G.B) and FATA to be nominated by Chief Minister, GB. and Governor Khyber Pakhtunkhawu respectively; and
(k) One representative from private sector from each Province to be nominated by the respective Provincial Government.
(2) The Board shall appoint a Secretary to the Board.
(3) The Federal Government may increase or decrease the number of members of the Board from time to time as it may consider appropriate and specify the qualifications and procedure of appointment of the members.
(4) No act or proceedings of the Board shall be invalid by reason only of the existence of a vacancy in or defect in the constitution of the Board.
7. Managing Director and other members.—(1) There shall be a Managing Director of PPIB who shall be appointed by the Federal Government.
(2) The Managing Director shall be responsible for the day-to-day administration of the affairs of PPIB and shall, subject to the regulations, be assisted by the staff in carrying out the functions of PPIB.
(3) The Managing Director shall be a Pakistani professional of known integrity and competence with a minimum of twenty years of related experience in law, business, engineering, finance, accounting, economics or the power industry.
(4) The Managing Director shall be paid such remuneration and allowances and shall be entitled to such privileges and facilities as may be determined by the Board and the same shall not be varied to his disadvantage during his term of office. The members shall be entitled to such privileges and facilities as may be prescribed by regulations.
(5) The Managing Director shall, unless he resigns or is removed from office earlier by the Federal Government, hold office for three years or for such period as may be extended by the Federal Government or on attaining the age of sixty-five years, whichever is earlier.
(6) The members of the Board other than the ex-officio members shall, unless they resign or are removed from office earlier by the Federal Government, hold office for three years or for such period as may be extended by the Federal Government or on attaining the age of sixty-five years, whichever is earlier.
(7) No person shall be appointed or continue as managing Director or a member, if—
(a) he has been convicted of an offence involving moral turpitude or has been found guilty of misconduct;
(b) he has been or is adjudged insolvent;
(c) he is incapable of discharging his duties by reason of physical or mental unfitness and has been so declared by a special medical board appointed by the Federal Government; or