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
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
A lack of incentives is limiting the development of green financial instruments in Dubai’s real estate sector
While environmental, social and governance (ESG) considerations are a priority for many investors today, ...
READ MORE
Carillion is the latest international firm to report problem projects in the region
Before the London Stock Exchange opened for the week on 10 July UK construction company Carillion issued a trading ...
READ MORE
Regional tourism markets are slightly ahead of global peers as borders reopen for international travellers
The immediate business impact of precautionary measures against Covid-19 was felt most deeply by the tourism ...
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
The second Mashreq Construction Club Connect Series webinar will discuss the options for contractors and suppliers whose clients want to renegotiate construction contracts
The impact of the coronavirus (Covid-19) pandemic on the ...
READ MORE
Retrofitting can serve as the stepping-stone to achieving net-zero carbon future
As the costs attached with meeting net-zero goals become clearer, built environment specialists are prompting stakeholders to consider the benefits ...
READ MORE
Experts at the Real Estate Forum analysed trends disrupting the property market in the coming year
Despite the multitude of challenges that have faced the market in recent years, Dubai’s real ...
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
Zain Qureshi, Global head of real estate finance and advisory at Mashreq comments on the advancements in the sector
Regional impetus
The GCC real estate sector is experiencing sustained growth, driven by ...
READ MORE
Watch: How REITs are opening up new avenues
Unlocking green finance for Dubai real estate
Middle East risk is an international problem for
Middle East tourism economy readies to reopen
Covid-19 sparks contract issues
Live Broadcast: Renegotiating construction contracts
How retrofit can be a realistic route to
Outlook for Dubai Real Estate
Watch: The continuing evolution of GCC real estate
17 January, 2018 | .By JENNIFER AGUINALDO
