Dubai policy body recommends establishing PPP unit
17 January, 2018 | By JENNIFER AGUINALDO
A policy paper published by the Mohammed bin Rashid School of Government (MBRSG) has recommended the establishment of a public-private partnership (PPP) unit within the government.
“I think its introduction would be a useful means of coordinating activity across government and with interested firms looking to involve themselves in PPPs,” says Guy Jonathan Burton, associate professor at MBRSG and author of the paper.
Most countries that have successfully implemented PPP projects, including the UK, some states in Australia and South Africa, have existing PPP units. In the Middle East and North Africa region, Egypt and Saudi Arabia have also established PPP units within their finance and economic planning ministries, respectively.
According to Burton, the UAE would benefit from establishing a PPP unit at the beginning of the process rather than later, which was often the case in other countries.
Citing an OECD finding, the policy paper cited that most countries established a PPP unit at a later stage “when they realise the need for one, to provide clarity, coordination, guidance, technical expertise and assessment of PPP projects”.
However, the UAE has to address several key issues before establishing its own PPP unit, including defining its functions and responsibilities, recruitment of qualified staff and its jurisdiction – whether its coverage will include only Dubai or the entire federal government.
Dubai’s finance department approved the emirate’s PPP law in 2015. It also issued guidance for the law the following year.
The guidance set out regulations for four types of PPP contracting. These include build, operate, own and transfer (BOOT); build, operate and transfer (BOT); build, transfer, operate (BTO); and transfer and operate (TO).
It also specified the government agencies to be involved with contracting PPP projects, including: the relevant government entity for PPP projects worth under AED200m ($55m); the finance department for projects worth AED200m-AED500m; and the supreme fiscal committee for projects with budgets exceeding AED500m.
Negotiations for a number of PPP projects outside the power and water sector are already under way in Dubai. They include the development of two new buildings and an automated car park at Dubai Courts as well as the Dubai Union Oasis, a mixed-use real estate project to be developed on the land above the underground station where the Dubai Metro Red and Green lines meet.
Related Posts
Tribunal formed to oversee cancelled and liquidated real estate projects and ensure investors' rights
A special committee to oversee unfinished and cancelled real estate projects has been set up in Dubai.
Sheikh ...
READ MORE
Demand for affordable and community-centric homes is driving an uptick in the UAE residential property sector
· Changing consumer behaviour such as demand for community-centric, open spaces is steering buyers towards ...
READ MORE
Force majeure claims are providing new insights into how the regional construction sector’s behaviour must change
The rapid spread of the Covid-19 illness has led to an unprecedented ripple effect on the ...
READ MORE
Obtaining finance for capital projects remains a challenge for first-time hotel developers in Ras al-Khaimah
This article is the third in a series that captures key highlights from the RAK ...
READ MORE
The easy option for new real estate committee is to control supply with fewer future projects, but that may not be viable
The committee formed by the UAE cabinet to implement ...
READ MORE
Contractors can look forward to a number of major refurbishment projects in the lead up to the Expo
Dubai’s preparation for the Expo has been dominated by efforts to ensure it ...
READ MORE
Tim Taylor, QC, discusses the impact of Covid-19 on the UAE's legal landscape and disputes market
During a crisis, the legal expectation is ‘deals down – disputes and restructuring up’. While this ...
READ MORE
Rohit Srivastava, managing director of capital markets & treasury at Brookfield Asset Management in London, discusses how REITs are expanding access to real estate and gaining traction in the GCC, ...
READ MORE
The GCC’s real estate sector is entering a new phase of growth, shaped by shifting capital strategies, sustainability commitments, and evolving financing models. In this interview round-up, senior industry leaders ...
READ MORE
The rise of e-commerce and the need for the rapid delivery of online purchases is creating new opportunities for Dubai real estate developers
Real estate developers and landlords in Dubai should ...
READ MORE
Dubai pushes reforms for cancelled projects
Villas, townhouses drive UAE residential market
Covid-19 sparks contract issues
Controlling real estate supply in Dubai requires delicate
Dubai needs to prioritise mid-market hotel segment for
The pandemic’s potential impact on disputes
Watch: How REITs are opening up new avenues
Watch: Conversations shaping GCC Real Estate
Hyperlocal services unlock new real estate market
17 January, 2018 | .By JENNIFER AGUINALDO
