Updated: Tuesday October 11, 2016/AthThulatha
Muharram 10, 1438/Mangalavara
Asvina 19, 1938, at 08:35:57 PM
The Private Power and Infrastructure Board Act, 2012
ACT No. VI OF 2012
[6th March, 2012]
An Act to provide for establishment of the Private
Power and Infrastructure Board.
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:---
PART I
GENERAL
1. Short title, extent and
commencement. This Act may be called the
Private Power and Infrastructure Board Act, 2012.
(1) It extends to the whole of
(2) 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.
PART II
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
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
(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&K;
(e) 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 and 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
(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.
PART III
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 (GB) and FATA to be nominated by Chief Minister,
GB., and Governor Khyber Pakhtunkhwa 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
(d) he fails to disclose
any conflict of interest at or within the time provided for such disclosure by
or under this Act or contravenes any of the provisions of Act pertaining to
unauthorized disclosure of information.
(8) A
member other than ex-officio member may, at anytime, resign from his
office by written notice addressed to the Federal Government. The office of a
private sector member shall become vacant upon the death or resignation of such
member. A vacancy caused by resignation or any other reason shall be filled by
the appointment of a person qualified to fill such vacancy.
(9) The
Managing Director shall not, during his term of office in the PPIB, engage
himself in any other service, business, vocation or employment and enter into
the employment of or accept any advisory or consultancy relationship.
(10)
Subject to section 9 and any policy of the Board made in this behalf, the
Managing Director may, at his discretion, delegate any of his functions to any
other officers of PPIB.
8.
Meeting of the Board.(1) The meetings of the
Board shall be presided over by the Chairman and in his absence a member
designated by the Chairman shall preside over the meeting of the Board.
(2) At
least fifty per cent of the total membership of the Board shall
constitute a quorum for meetings of the Board.
(3) The
meetings of the Board shall be held at such time and place as the Chairman of
the Board or a majority of members may from time to time determine. The members
shall have reasonable notice of the time and place of the meeting and the
matters on which a decision by the Board is to be taken in such meeting.
(4)
Decisions of the Board shall be taken by the majority of its members present
and in case of a tie the Chairman or the member presiding over the meeting
shall, as the case may be, have a casting vote.
(5) The
Secretary shall keep minutes of the proceedings of every meeting of the Board.
The decisions of the Board shall be recorded in writing.
9.
Delegation.(1) The Board may, for
carrying out its functions, constitute such committees, from time to time, as
may be considered necessary. The Board or any of its committees may invite any
technical expert or other representative of a government or reputable private
institution for assistance in the performance of its functions. The proceeding
of the committees shall be duly reduced in writing and recommendation etc.,
shall be sent to the Board for approval.
(2) The
Board may, subject to such conditions and limitations as it may deem fit to
impose, delegate any of its functions or powers to the Managing Director or one
or more members of the Board or any officer of PPIB, except,---
(a) the power to approve
the audited accounts;
(b) the power to incur
annual expenses in excess of any limits set out in the regulations;
(c) the power to commit
anything involving financial liability or impact on the Federal Government; and
(d) the power to make or
repeal regulations.
(3) A
delegation under this section shall not prevent the concurrent performance or
exercise by the Board of the functions or powers so delegated.
10.
Employees.(1) To carry out the
purposes of this Act, PPIB may, from time to time, employ persons to be staff
of PPIB who shall be paid such remuneration and allowances and shall hold their
employment on such terms and conditions as may be prescribed by regulations.
(2) The
staff of PPIB shall be liable to disciplinary action in accordance with the
regulations.
11.
Employment of agents, advisers and consultants.(1) Subject to
subsection (2) the PPIB may employ any technical, professional and other
advisers, agents and consultants, including accountants, bankers, engineers,
lawyers, valuers and other persons to transact any business or to do any act
required to be transacted or done in the exercise of its powers, the
performance of its functions or for the better implementation of the purposes
of this Act.
(2) The
decision to employ and the terms of employment of advisers, agents and
consultants shall be made by PPIB in accordance with the regulations.
12.
Public servants. The Chairman, Managing Director, members, staff and
other persons employed or authorized to perform or exercise any function or
power under this Act or rendering services to PPIB as advisers, agents or
consultants shall be deemed to be public servants within the meaning of section
21 of the Pakistan Penal Code, 1860 (Act XLV of 1860).
13.
Disclosure of interest.(1) Where a person is
present at a meeting of the Board or any committee of the Board and that person
or his family or his professional or business partner or associate has direct
or indirect interest in the subject for consideration in that meeting, such
person shall,---
(a) forthwith disclose
such interest; and
(b) not take part in any
consideration on that matter unless the Board or the committee thereof
otherwise directs.
(2) Where
a member or staff, including an adviser, agent, consultant or family member of
such person has a direct or indirect interest in any matter relating to PPIB,
such person shall forthwith disclose such interest to the PPIB and the PPIB
shall take such action as it deems appropriate.
PART IV
FINANCIAL PROVISIONS
14.
Fund of the PPIB.(1) There is hereby
established, for the purposes of this Act, a Private Power and infrastructure
Board Fund to be administered and controlled by the PPIB. The operation of the
PPIB shall be funded from the Fund. The Fund shall consist of,---
(a) grants and loans from
the Federal Government and by donor agencies;
(b) proceeds from
encashment of security instruments;
(c) other loans or funds
obtained by the PPIB subject to prior approval of the Federal Government;
(d) fees and all other
sums collected by it as prescribed from time to time;
(e) all other sums or
property which may in any manner become payable to or vested in the PPIB in
respect of any matter incidental to the exercise of its functions and powers;
and
(f) returns and profits on
the investments.
(2) It
shall be the duty of the PPIB to conserve the Fund while performing its function
and exercising its powers under this Act.
15.
Expenditure to be charged on Fund.The Fund shall be
expended for the purposes of,---
(a) paying any expenditure
lawfully incurred by the PPIB, including the remuneration and allowances of the
Chairman, Managing Director, members, staff, employees, accountants, advisers,
agents, consultants, lawyers, valuers and other experts appointed and employed
by PPIB, including provident fund contributions, superannuating allowances or
gratuities and legal fees and costs and other fees and costs, if any;
(b) paying for expenditure
incurred on,---
(i) marketing and
publicity;
(ii) capacity building,
seminars and conferences, and
(iii) restructuring;
(c) purchasing or hiring
equipment, machinery and any other materials, acquiring land and constructing
buildings and carrying out any other work and undertakings by PPIB in the
performance of its functions or the exercise of its powers under this Act.
(d) re-paying any
financial accommodation received or moneys borrowed under or pursuant to or by
virtue of this Act and the profit, mark-up or return due thereon: and
(e) paying any other
expenses, costs or expenditure properly incurred or accepted by the PPIB in the
performance of its functions or the exercise of its powers under this Act.
16.
Investment. The PPIB may, in so far as its moneys are not
required to be expended under this Act, invest amounts in such manner as
prescribed by the Board from time to time.
17.
Bank accounts. The PPIB may open and maintain its accounts in local
and foreign currencies in such scheduled banks and other financial institutions
as it may from time to time determine in accordance with the instruction of the
Federal Government in this regard.
18.
Account.(1) The PPIB shall
maintain proper accounts and other records relating to its financial affairs
and shall, as soon as practicable after the end of each financial year, cause
to be prepared for that financial year statements of accounts of the PPIB which
shall include a balance sheet and an account of income and expenditure.
(2) The
financial year of PPIB shall be the period of twelve months ending on the 30th
June in each year.
19.
Audit. The accounts of PPIB shall be audited annually by a reputable firm of
chartered accountants approved by the Board from amongst the approved list of
Auditor General of
Provided
that the Federal Government may also require the Auditor-General of
PART V
MISCELLANEOUS
20.
Information. The PPIB may call for any information required by it
for carrying out the purposes of this Act or as is required under contracts
entered into by the PPIB from any person involved, directly or indirectly, in
the power sector or any matter incidental or consequential thereto and any such
person shall provide the required information called by the PPIB.
21.
Annual report.(1) As soon as
practicable but no later than three months after the end of each financial
year, Secretary shall prepare and submit to the Board an annual report
concerning its activities during the financial year within three months. The
Chairman of the Board shall submit the same before the Council of Common
Interests and both Houses of the Majlis-e-Shoora (Parliament).
(2) The
report referred to in sub-section (1) shall include,---
(a) activities of PPIB
during the financial year;
(b) an audited statement
of income and expenditure;
(c) an audited balance
sheet; and
(d) any
other matter which the PPIB may consider appropriate.
22. Indemnity. No suit, prosecution or other legal proceedings shall
lie against the Chairman, Managing Director, members, consultants, officers or
other employees of PPIB in respect of anything done or intended to be done in
good faith under this Act.
23. Power to make rules. The Board may, by notification in the official
Gazette, make rules, not inconsistent with the provisions of this Act, for
exercising its powers and carrying out of its functions under this Act and any
other matter incidental or consequential to the implementation of this Act.
24. Power to make regulations. The Managing Director may, with the approval of the
Board, make regulations, not inconsistent with this Act and the rules,
concerning the internal affairs of PPIB.
25. Act to override other laws. The provisions of this Act shall have effect
notwithstanding anything inconsistent contained in any other law for the time
being in force.
26. Common seal. The PPIB shall have a common seal and such seal shall
be kept in the custody of the Managing Director or such other person as may be
authorized by the regulations. Documents required or permitted to be executed
under seal shall be specified in and authenticated in such manner as shall be
authorized by regulations.
27. Support of the Federal
Government. The Federal Government
and all its agencies, particularly the concerned enterprises owned and
controlled wholly or partially, directly or indirectly by the Federal
Government shall render such support to the PPIB as may be necessary to fulfill
its objective and functions under this Act.
28. Removal of difficulties. If any difficulty arises in giving effect to any
provision of this Act the Federal Government may make such order, not
inconsistent with the provisions of this Act, as may appear to it to be
necessary for the purposes of removing the difficulty.
29. Dissolution of the Board.(1) Upon commencement of this Act, the Private Power
and Infrastructure Board established and reconstituted vide the Federal
Government's Notification No,PPC-3(33)/94, dated the 2nd August, 1994 and other
related notifications issued from time to time hereinafter referred to as the
former board, shall stand dissolved and upon such dissolution:---
(a) all
assets, rights, powers, authorities and privileges and all property, cash and
bank balances, reserve funds, investment and all other interests and rights in
or arising out of such property and all debts, liabilities and obligations of
whatever kind of the former board subsisting immediately before its dissolution
shall stand transferred to and vest in PPIB constituted under this Act;
(b) notwithstanding anything contained in this Act or any
other law for the time being in force or in any agreement, deed, document, or
other instrument,
(i) Chairman
of the former board shall continue as the Chairman of PPIB;
(ii) the
Managing Director of the former board shall continue as the Managing Director
unless and until a Managing Director is appointed under section 7;
(iii) a
member of the former board shall continue to be a member of the PPIB unless and
until such member is appointed under section 7; and
(iv) all
officers, consultants, advisers, auditors and other employees and staff of the
former board shall stand transferred to and be officers consultants, advisers,
auditors and employees and staff of PPIB;
(c) the
persons mentioned in clause (b) shall be deemed to have been appointed or
engaged by PPIB in accordance with the same terms and conditions of service as
were applicable to them, immediately before such continuance in office or
transfer under this Act and shall not be entitled to compensation because of
such continuance or transfer:
Provided that the civil servants appointed to or
working in the former board shall upon their transfer to the PPIB continue to
be governed by the Civil Servants Act, 1973 (LXXI of 1973) and rules made
thereunder;
(d) all
debts and obligations incurred or contracts entered into, rights acquired and
all matters and things engaged to be done by, with or for the former board
shall be deemed to have been incurred, entered into, acquired or engaged to be
done by, with or for the PPIB;
(e) all
suits and other legal proceedings instituted by or against the former board
before its dissolution shall be deemed to be suits and proceedings by or
against the PPIB and shall be proceeded or otherwise dealt with accordingly;
and
(f) any
reference to the former board in any statutory instrument or document shall,
unless the context otherwise requires, be read and construed as reference to be
PPIB.
(2) All rules, regulations, notifications, orders or
instructions in force pertaining to or in anyway concerned with or affecting
the former board immediately before the commencement of this Act, shall, so far
as they are not inconsistent with any of the provisions of this Act, continue
to be in force until repealed, altered or rescinded by rules or regulations
made under this Act.
Go to Index
| LL. B. – I | LL. B. – II
| LL. B. – III | LL. B.
Directory | Home