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
Oversubscription in $3bn credit facility indicative of strong interest from banks
Dubai’s aviation and finance authorities are still weighing options in terms of funding the logistics corridor planned for Dubai South, the largest ...
READ MORE
The partnership will explore growth opportunities in the retail sector across the GCC region
Dubai-based Meraas Holding has entered into a AED5bn ($1.4bn) strategic partnership with Canada’s Brookfield Asset Management to ...
READ MORE
Tough times lie ahead for the market as projects are put on hold and developers are forced to lay off staff
Dubai has propped up the UAE’s construction market in recent ...
READ MORE
Stormwater network will serve Expo and Dubai South developments in Jebel Ali area
Dubai Municipality has awarded the joint venture of Austria’s Porr and Belgium’s Besix has been awarded the contract ...
READ MORE
The UAE is seeing muted growth in 2017, estimated at less than 1.5 per cent, as low oil prices and production cuts weigh on the economy.
The non-hydrocarbons sector is faring ...
READ MORE
Contractors submitted bids for the estimated AED10bn ($2.7bn) package in January
Dubai Aviation Engineering Projects (DAEP) has invited selected bidders to submit revised prices for the estimated AED10bn ($2.7bn) substructure contract for Concourse ...
READ MORE
Abu Dhabi has re-engaged with stakeholders for the design and route alignment for the upcoming phases of Etihad Rail, the UAE’s federal railway network.
This includes the rail project’s second stage, ...
READ MORE
Dubai will increase its spending on infrastructure and construction projects by 43 per cent next year as it continues to prepare for Expo 2020 as well as invest in other ...
READ MORE
Dubai’s Al-Maktoum International airport works cover the substructure for the West Terminal Building and Concourse 1
Dubai Aviation Engineering Projects (DAEP) has invited companies to express interest in the estimated AED10bn ($2.7bn) ...
READ MORE
Construction company is part of the consortium that will build Egypt’s first monorail
Orascom Construction says new work in Egypt helped its contract awards grow 150 per cent year-on-year and 39 ...
READ MORE
Dubai weighs options for airport megaproject funding
Meraas forms strategic partnership with Canada’s Brookfield
Dubai construction stalls as contract awards slow
Joint venture wins Dubai tunnel construction deal
A disappointing year for growth in the UAE
Bidders asked for revised prices for Al-Maktoum airport
EXCLUSIVE: Abu Dhabi moves on stalled rail project
Dubai to boost infrastructure spending by 43 per
EXCLUSIVE: Prequalification starts for multibillion-dollar airport deal
Egypt contract awards boost Orascom’s backlog
17 January, 2018 | .By JENNIFER AGUINALDO
