Another busy week. This time in Pakistan. Unfortunately I had to leave on Sunday missing my mother’s 80th birthday party. Congrats mom. I was forced again to use the overnight flight with Turkish Airlines so another broken night. Moreover a somewhat stressful transfer in Istanbul. Because of the storm Dennis the flight out of Amsterdam had a 1 hour delay reducing the available time for the transfer to 30 minutes. And with the plane arriving in Istanbul at terminal B and departing to Pakistan at terminal F, the other side of the airport, and it is not a small airport, I really had to hurry to catch my flight. Being guided by an official who was constantly asking me what the Dutch word was for faster…. Luckily I made it. I arrived at the Ramada Hotel in Islamabad at 6am local time (2am Netherlands time) to hear that the room was not ready. Nothing to do but to wait. 10 Minutes before we had to leave for our first meeting the room become available allowing me at least to change into my business suit. Not the most relaxing journey.
I was in Pakistan to start a new project. I have been retained by Rebelgroup to act as the team leader for the operationalisation of the Pakistan Development Fund for which they have been commissioned by the Asian Development Bank. The fund is envisaged to support the financing of PPP projects in Pakistan. We have to design a strategy for the fund, prepare a business case and draft the necessary operating procedures. A very interesting and challenging project which has to be completed within 8 months.
The project is part of an overall strengthening of the PPP Framework that also includes the adaptation of a PPP law and corresponding implementing regulation, the establishment of a central PPP authority and the necessary capacity building. A program largely driven by the need for Pakistan to enhance the efficiency of its infrastructure and its fiscal constraints which have been further tightened by IMF as part of their bail-out, forcing Pakistan to tap on private finance and expertise to deliver infrastructure. ADB has been supporting the government in this respect with a comprehensive technical assistance program and it was good to see Lai Tora again, one of the task managers for this with whom I also work in Kyrgyzstan, and definitely one of the most pleasant task managers from ADB.
We had quite a full agenda with stakeholder meetings in Islamabad for 2 days and also 1 day in Karachi, which is the financial centre of Pakistan and also where the PPP unit of Sindh is located. This PPP unit is one of the best PPP units in Asia gradually building up a PPP market that focusses on value for money and not only on off-balance sheet financing. Exemplary for many PPP units in emerging markets in the sense that they follow an evolutionary approach that step by step increases the risk transfer to the private sector balancing value for money with bankability and affordability. Made possible though a strong political will and commitment to this approach allowing failures and a drive for continuous improvement.
All meetings were most enjoyable and very constructive. People are very friendly, open and knowledgeable and it helped us to get a good understanding of the current situation, its challenges but also its opportunities. It was very nice to meet also some former students of the CP3P training I delivered in 2018 who are now spearheading the PPP development for organisations such as the Sindh PPP Unit and the National Highways Authority. Warm encounters with a hug. Capacity building can pay off.
From Rebel I was accompanied by Guillaume Remy, one of the directors of Rebelgroup International and James Cruz, one of their PPP consultants. As most of the Rebels, smart guys and busy all the time with thinking about possibilities for the Fund (if not busy with other projects on the side). Rebel had teamed up for this project with Bridge Factor, a local financial advisory boutique and Ali Khan & Associates, a local law firm. It is always a surprise what the competencies of local partners will be. Company profiles and CV’s may be promising but reality may be different. However, these companies are exactly what we need for this project. Well connected to the main players in the market, good understanding of the key issues and the ability to think in solutions and not in problems. Good to have them on board.
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