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
Building consumer confidence and opening up in a phased manner will be crucial in ensuring the resumption of UAE’s tourism sector, says latest briefing from Mashreq Bank
Download the complete media ...
READ MORE
In addition to key utilities projects, KAPP is also planning to develop real estate public-private partnerships
As other regional governments launch ambitious public-private partnership (PPP) initiatives, Kuwait is celebrating the 10-year ...
READ MORE
Labour ministry may stop MoUs or impose hiring quotas on countries not responding to repatriation requests from UAE-based workers
The UAE’s Ministry of Human Resources and Emiratisation (Mohre) is considering the stoppage ...
READ MORE
Fitch says non-oil economies could decline by 1-5 per cent in the region this year
US ratings agency Fitch forecasts an unprecedented non-oil sector recession in the GCC due to Covid-19.
The ...
READ MORE
Experts from Clyde & Co provide insight on force majeure clauses and laws for the construction sector in the wake of Covid-19
Findings from Mashreq Construction Club Connect Series episode I
The ...
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
Existing assets are being upgraded as the emirate grapples with the issue of over supply
The focus for companies engaged in Dubai’s oversupplied real estate sector is shifting from new projects ...
READ MORE
Mall owners and retailers recommend actions for a more sustainable and resilient retail sector in the UAE
Download your copy of the white paper here
The UAE Retail and Malls Think Tank ...
READ MORE
Enforcement of awards has become a key issue as arbitration becomes a more popular method of resolving disputes
Attitudes to dispute resolution are changing in the UAE, particularly since the launch ...
READ MORE
The region’s construction sector is undergoing great change, as contractors shift their focus to exploring new sectors and geographies
After five years of being propped up by projects in Dubai, the ...
READ MORE
Travel and tourism outlook brightens on vaccine rollout
Kuwait positive on PPP prospects
UAE mulls curbs on lax labour markets
GCC faces unprecedented non-oil recession
CONNECT SERIES: Force majeure and other options in
Watch: The continuing evolution of GCC real estate
Dubai’s real estate and construction sectors shift focus
Think tank calls for action to boost retail
UAE arbitration process faces challenges
Planning for a year of transition in construction
17 January, 2018 | .By JENNIFER AGUINALDO
