PSB eyes joint ventures to increase revenue

ISLAMABAD: Following the massive cut applied by the Planning Ministry and Finance Division on the Pakistan Sports Board development and non-development quarterly/annual budget, the Board has decided to go into a joint venture with private parties to cater to the needs of growing running expenditures.

The PSB Board that met recently has given go-ahead to joint ventures to increase revenues in an effort to upgrade exciting facilities, invest in elite national athletes training and meet financial requirements of other such activities.

The purpose of a Joint Venture (JV) is to engage the private sector (national or international sports organisations, investment companies, firms, individuals, or consortiums) and/or any government entity for the establishment of a sports academy or arena or cafeteria or display center or club along with allied facilities or any other facility for the promotion and development of sports or to generate income for the Pakistan Sports Board.

It has been decided that PSB may insert a proposal inviting interested parties for the establishment of any of the facilities directly related to sports activities.

The Board has approved a roadmap on which such a joint venture would be established. Interested parties will be asked to approach Pakistan Sports Board along with a concrete proposal containing administrative, financial and technical aspects of the venture.

The Board formed Evaluation Committee then will evaluate the proposal submitted by the interested parties. The Evaluation Committee will submit its recommendations to the Director General of, Pakistan Sports Board.

The parties on the success of the bid will establish a Joint Management Committee (JMC) consisting of two representatives appointed by each party (PSB and private party). The JMC will then formulate SOPs for the management and operation of the facility.

The JMC will also prepare a draft Joint Venture Agreement covering the aspects including but not limited to the period of the contract, the notice period for termination of the contract, amount of rent/advance fund, profit sharing, utility charges, damages, payment method, subletting of the facility, winding up clause, etc.

The agreement between the two parties will also contain a clause that in case of holding any important nature sports event, the other party will be bound to hand over the facility to the Pakistan Sports Board for its use during the period of the sports event.

One prime condition of the joint venture will be that the national sports players will be given priority to use the facility.

In the event of a dispute between the parties, the matter shall be referred to the JMC for resolution. If the JMC is unable to resolve the dispute, the matter shall be referred to the Secretary of the Administrative Ministry for resolution.