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
Etihad Rail received prequalification applications from potential bidders for design and build contracts on stage 2
The UAE Ministry of Finance and the Abu Dhabi Department of Finance have signed an agreement for ...
READ MORE
Contractors warns that firms do not have the resources to support the development of a large number of projects at one time
Public-private partnership (PPP) projects around the world face a ...
READ MORE
Several project clients across the GCC are expected to imminently appoint transaction advisers for planned railway PPP schemes
The past two years have seen the formation of numerous consortiums between financial, ...
READ MORE
Public sector projects are driving growth, with the most notable progress being made on housing schemes
Contractors working in Kuwait are hoping for the green shoots of recovery in 2019. “There ...
READ MORE
Expo and stimulus spending could lift non-oil GDP growth to 3 per cent in 2020
The Washington-based IMF has said the UAE’s non-oil GDP growth could accelerate to 3 per cent ...
READ MORE
The largest contracts awarded in the GCC during the first half of 2018 have been in Saudi Arabia
The total value of contract awards in the construction and transport sectors increased ...
READ MORE
The speed at which the government has moved to control supply has left construction firms in the emirate wondering where new work will come from
Dubai’s construction sector has been turbocharged ...
READ MORE
Local developer Emaar Properties has received bids from contractors for the deal to build the Mobility pavilion at the Dubai Expo site.
Emaar is also tendering the contract to build the ...
READ MORE
While its robust internal political discourse may sometimes frustrate, Kuwait’s measured diplomacy provides a reassuring presence
Amid ongoing political tension and heightened geopolitical risk in the Gulf, Kuwait’s longstanding pursuit of ...
READ MORE
If six-month rolling averages are considered then the market has shown signs of bottoming out this year
The total value of construction and transport contract awards in the GCC fell for ...
READ MORE
Abu Dhabi signs financing deal for Etihad Rail
PPP projects face contracting bottleneck
Region takes small steps towards PPP
New projects enter Kuwait’s stagnant building market
IMF expects UAE’s non-oil GDP growth to accelerate
GCC construction contract awards rebound in 2018
Focus turns to infrastructure as Dubai curtails real
Contractors submit bids for Dubai Expo pavilion
Kuwait’s agenda turns to critical infrastructure
GCC construction and transport awards drop again in
17 January, 2018 | .By JENNIFER AGUINALDO
