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
Arabtec and Trojan have confirmed they may collaborate in the future
After high-profile mergers in the financial, energy and real estate sectors, Abu Dhabi’s consolidation drive is now turning to construction.
On ...
READ MORE
The rise of e-commerce and the need for the rapid delivery of online purchases is creating new opportunities for Dubai real estate developers
Real estate developers and landlords in Dubai should ...
READ MORE
There has been a growing number of bond calls as market conditions for the construction sector deteriorate
The UAE Central Bank says it will not interfere with the growing number of ...
READ MORE
Chairman and chief executive of Emirates Airline & Group comments on the challenges facing aviation
Climate change and rising costs are huge challenges for the aviation sector. Responding effectively to them ...
READ MORE
Governments need to invest in developing local talent and deploy innovative strategies to create a competitive tourist sector, says Mashreq Bank
The GCC’s tourism sector could face a shortfall ...
READ MORE
Highlights from the fifth Mashreq Construction Club
At the fifth meeting of the Mashreq Construction Club on 12 December 2018 at the JW Marriott Marquis Hotel Dubai, international engineering firm Arup ...
READ MORE
Delivering world-class infrastructure today is essential to the success of the region tomorrow. Not only do today’s projects drive growth and create jobs, but they also lay the foundations for ...
READ MORE
Nowadays, regional governments need to find investors to help fund their projects as well as contractors to build them
Much has changed for the GCC’s construction sector over the past five ...
READ MORE
The Dubai airport expansion project is expected to cost $33bn
Dubai Aviation Engineering Projects (DAEP) has invited contractors to prequalify for a major construction contract on the $33bn Al-Maktoum International airport ...
READ MORE
Heads of transport authorities in Dubai and Sharjah named among Etihad Rail board of directors
UAE President Khalifa bin Zayed al-Nahyan has issued a federal decree restructuring the Etihad Rail board ...
READ MORE
Abu Dhabi’s consolidation efforts turn to construction
Hyperlocal services unlock new real estate market
UAE Central Bank will not interfere with construction
Ten Minutes into the Future of Aviation
Workforce shortages could hamper GCC tourism growth
CONSTRUCTION CLUB 5: Trends shaping the future of
Driving better value in construction
GCC contracting sees signs of a shake-up
Prequalification starts for Al-Maktoum airport terminal works
UAE restructures Etihad Rail
17 January, 2018 | .By JENNIFER AGUINALDO
