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
The IRU World Congress saw the sultanate accede to the TIR Convention and the signing of the Muscat Compact on road transport
The IRU (International Road Transport Union) World Congress, held ...
READ MORE
Costs in Riyadh will increase the most with gains of 5 per cent
Construction costs in the Middle East are expected to increase during 2019, according to a report by UK-based ...
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
Dubai's Roads & Transport Authority (RTA) has invited contractors to submit bids for a deal to upgrade four Dubai Metro stations.
The design-and-build contract covers the Burj Khalifa/Dubai Mall, Damac, UAE ...
READ MORE
How the steps taken to get construction through the Covid-19 crisis will lay the foundations for a better industry post crisis
Construction companies in the UAE and across the GCC are ...
READ MORE
Rayan Mustafa Qutub, CEO of Ports Development Company, explains the role of King Abdullah Port in the kingdom’s plans to expand its logistics sector
The recent signing of a memorandum of ...
READ MORE
Deteriorating market conditions are threatening the delivery of major projects in the emirate
As the trading conditions for construction companies continue to deteriorate, there are growing calls from contractors for more ...
READ MORE
The third session of the Construction Industry Think Tank identifies actions for improving the state of construction in the UAE
Download your copy of the white paper here
After more than a ...
READ MORE
Retrofitting built structures is an efficient way to meet national net zero carbon targets
With Covid-19 impacting businesses and altering the way we work and live, it is imperative that the construction ...
READ MORE
Contractors have submitted offers for packages B and C of stage 2
Etihad Rail is evaluating bids from contractors for two more construction packages on the UAE’s 1,200-kilometre federal railway.
Firms have submitted bids ...
READ MORE
Oman positions itself for expanded global logistics role
Construction costs are expected to rise in 2019
Controlling real estate supply in Dubai requires delicate
Dubai tenders metro stations upgrade
CONNECT SERIES: Keeping construction moving through Covid-19
Unlocking Saudi Arabia’s potential as a logistics hub
Dubai contractors look for regulation to counter conspiring
Building a better construction industry in the UAE
Retrofitting key to sustainable construction
Etihad Rail evaluates construction bids
17 January, 2018 | .By JENNIFER AGUINALDO
