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
The Covid-19 pandemic is accelerating lay-offs amid a low-oil price environment, but some employers are seeking alternatives
Lay-off and redundancy activity has accelerated in the Middle East’s construction sector as it contends with ...
READ MORE
Governments have been quick to cut spending after two years of launching stimulus projects
The big challenge for the region’s construction sector over the coming year will be dealing with the ...
READ MORE
The UAE hospitality sector requires vital support to navigate a post-Covid-19 economy
A think tank comprising of leading experts from the UAE's hotel and tourism industry has recommended key areas for ...
READ MORE
Real estate players in Abu Dhabi emphasise the need to balance Abu Dhabi’s property sector to ensure long-term sustainability
This article is the third in a series that captures key highlights ...
READ MORE
The meeting was chaired by the emirate’s Deputy Ruler Sheikh Maktoum bin Mohammed bin Rashid al-Maktoum
Deputy Ruler Sheikh Maktoum bin Mohammed bin Rashid al-Maktoum has chaired the first meeting of ...
READ MORE
The emirate’s growing real estate sector can benefit from leveraging sustainable practices from the outset
This article is the fourth in a series that captures key highlights from the RAK Real ...
READ MORE
On 23 May, Abu Dhabi’s Department of Culture issued guidelines to hotels in the emirate for the reopening of restaurants, bars, beaches, pools and gyms.
The announcement marked the start of ...
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
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
Dubai pushes reforms for cancelled projects
Pandemic quickens construction job cuts
Cost cutting on stimulus projects is a paradox
Building a more resilient UAE hospitality sector
Balancing real estate supply and demand in Abu
Dubai’s supreme committee for real estate holds first
Sustainability shapes Ras al-Khaimah real estate
CONNECT SERIES: A new model for hospitality
GCC faces unprecedented non-oil recession
17 January, 2018 | .By JENNIFER AGUINALDO
