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
Executive Director of Corporate Finance at Aldar Properties Daniele Vecchi comments on structuring capital for balancing risk and return
Download the full report
An icon of innovation and luxury
Explore key insights on ...
READ MORE
The second Mashreq Construction Club Connect Series webinar will discuss the options for contractors and suppliers whose clients want to renegotiate construction contracts
The impact of the coronavirus (Covid-19) pandemic on the ...
READ MORE
Characterised by positive yields in the current market, data centres are becoming an attractive investment prospect in the Middle East real estate sector
Quickly emerging as a new subsector in the ...
READ MORE
Oversupply points to further decline and shrinking developer margins in the Dubai real estate market in 2019, and continued weakness through 2020
Dubai real estate prices will continue to deteriorate in ...
READ MORE
Environmental, social and governance (ESG) principles are influencing investor decisions in the GCC real estate market, says Mashreq Bank
The Covid-19 pandemic has reiterated the need to address concerns surrounding ...
READ MORE
Retrofitting can serve as the stepping-stone to achieving net-zero carbon future
As the costs attached with meeting net-zero goals become clearer, built environment specialists are prompting stakeholders to consider the benefits ...
READ MORE
Post Covid-19 recovery has long legs as market dynamics remain positive for the property sector across asset classes and emirates
Off-plan sales are driving new projects as existing stock does ...
READ MORE
Beijing-based China State Construction Engineering Corporation is the frontrunner for the contract to build the world’s tallest man-made structure in Dubai.
Local developer Emaar received bids from two groups for the ...
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
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
Watch: The evolving role of capital stacking in
Live Broadcast: Renegotiating construction contracts
Real estate poised for data centres boom
Dubai real estate will improve in 2021 at
Sustainable finance shapes the future of GCC real
How retrofit can be a realistic route to
Sustained recovery: Positive outlook for UAE real estate
Chinese in front to build world’s tallest tower
Dubai’s real estate and construction sectors shift focus
Dubai pushes reforms for cancelled projects
17 January, 2018 | .By JENNIFER AGUINALDO
