Objectives

The State Government places high priority on Infrastructure Development in and for the State. In view of the vast funds required for infrastructure development, the State Government wishes to encourage the private sector to supplement its efforts in developing the infrastructure facilities by participating in the financing and/or development, operation and management thereof. The private sector, both domestic and foreign, has shown considerable keenness to participate in infrastructure development. To attract private participation in infrastructure development, the State Government recognises the need to :

• Have an overarching legislation to secure a level playing field for private participants,
• Establish a transparent regulatory framework governed by an autonomous regulator, and
• Grant various concessions and incentives to make the infrastructure projects and the investment opportunities viable and attractive.

With this in mind a regulatory framework has been formulated which will provide clear guidelines for all aspects for infrastructure development - from the conception to the implementation, and inter - alia provide for the following:

• The decision making powers and processes, including with respect to selection of projects and of concessionaires;
• The legal basis for grant of concessions to private parties;
• The parameters and structures of Private Participation based on commercially accepted principles such as Build-Operate-and Transfer (BOT), Build-Operate-Own (BOO), Build Own Operate Transfer (BOOT);
• The constitution and functioning of a functionally and financially autonomous regulator who will ensure that the development activities are conducted in a fair and just manner while striking a balance between the inherently conflicting interests of the State, the concessionaire, and the public;
• Promotion and regulation of competition;
• Safeguarding the rights and interests of the consuming public such that :
  • The concessionaire provides adequate service throughout the term of the concession,
  • The concessionaire observes relevant safety and environmental protection standards,
  • The charges levied upon consumers are reasonable,
  • The infrastructure facility is properly maintained throughout the concession, and
  • If the infrastructure facility is to be transferred at the end of the term to the Government, it inherits an operational project and not simply a liability; and
  Quality assurance mechanism. Dispute resolution mechanism.

In 1998, The Government of Punjab created Punjab Infrastructure Development Board by enacting "The Punjab Infrastructure Development Bill, 1998"

To overcome the shortcomings of this Act and bring in broad based overarching regulatory frame work, the Government of Punjab enacted a new Act known asPunjab Infrastructure (Development & Regulation) Act, 2002.