Kathmandu, December 7:

The government has enacted Private Financing in Building and Operation of Infrastructure Act 2063 and Regulations 2064 to encourage the private sector to invest in infrastructure projects, but there is no response even after almost two years.

“The government has taken initiatives by formulating various acts, regulations and policy, but there is no response to these yet,” said Purushottam Man Shrestha, national programme manager of the , Public-Private Partnership for Urban Environment (PPPUE)/UNDP, adding that it was probable the government had somewhere to inspire confidence. He added that . in PPP, unlike a normal construction work, the total fund has to be managed by the private sector apart from construction.

“Only when the government prepares attractive projects will the private sector get motivated,” Shrestha said. “The bankers also have to be ready to finace apart from government engineers, who should be involved in the total project financing and management.”

PPPUE is providing multi-sector training. It has conducted two trainings: one for government engineers and another for bankers. The workshop on Monday is for interaction with the concerned stakeholders to share their views on the Act and Regulations.

Private sector involvement started since early 1992 in hydropower projects after the Hydropower Act 1992 and Electricity Act 1992 was enacted. ‘Public Infrastructure Build and Operate Transfer Policy 2057’ was the first comprehensive umbrella policy for PPP that includes all kind of public infrastructure and is referred to as BOT policy.

Private Financing in Building and Operation of Infrastructure Act 2006 and Regulation 2007 have also been prepared for PPP in the infrastructure sector.

“The Act has also served to specify the private sector’s involvement at various levels primarily through various PPP arrangements especially in construction and development of road network, tunnels, hospitals, canals, solid waste management and dry port,” Shrestha said.