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
This is article is the second in a series from the MEED-Mashreq Healthcare Business Leaders Forum held on 23 February in Dubai. The event saw leading industry experts gather to ...
READ MORE
Developer planning direct airport link to attract airport’s transit passengers
Local developer Emaar is working with the Roads & Transport Authority on plans to build a metro link directly connecting the ...
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
A look back at the history of attempted PPP projects in the region highlights a catalogue of failures
When looking back on the history of the GCC projects market, we can ...
READ MORE
GlobalData downgrades Mena growth outlook amid oil market uncertainty and Covid-19
GlobalData has cut further its construction output growth forecast for Middle East and North Africa (Mena) region for 2020 to - ...
READ MORE
The commercial impact of Covid-19 has dramatically changed the banking needs of companies in the UAE, says latest briefing from Mashreq Bank
Download the complete media briefing here
Over half of ...
READ MORE
Ras al-Khaimah is all set to enter a new era of development, but with it comes capacity challenges to meet its real estate and leisure sector objectives
This article is the ...
READ MORE
Jacobs wins work for stages 2 and 3 of the UAE’s federal rail network
US-based Jacobs Engineering along with UK company Atkins have been selected for the engineering design contract for stages 2 ...
READ MORE
Fast-growing markets such as the UAE need to pay greater attention to the quality of ageing buildings and infrastructure, says Mashreq Bank
Planners, developers, designers and asset managers need to ...
READ MORE
Firms need to rethink their approach to winning work as opportunities dry up
The UAE’s contracting community was acutely affected by low liquidity in 2019. Opportunities to win new work are ...
READ MORE
Healthcare gears up for new ways of working
Emaar working on Dubai airport metro link
Cost cutting on stimulus projects is a paradox
Is this the end of public-private partnerships in
Mena construction outlook drops to -2.2 per cent
Companies call for greater financing support from Covid-19
Ras al-Khaimah real estate counters growing pains
EXCLUSIVE: US firm selected for UAE’s Etihad Rail
UAE real estate must reassess asset health strategies
UAE contractors should focus on what they can
17 January, 2018 | .By JENNIFER AGUINALDO
