Dubai policy body recommends establishing PPP unit

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
MARKET TALK: Steel experts discuss competition
Faced with tough market conditions, steel producers need greater transparency and a clearer voice if they are to stay strong Q: How would you describe the structural steel market in the ...
READ MORE
UAE moves to accelerate major infrastructure schemes
Project support is part of $4.4bn economic stimulus package approved by federal cabinet The UAE cabinet approved a AED16bn ($4.4bn) economic stimulus package on 22 March that includes measures to accelerate ...
READ MORE
Social infrastructure to remain a priority in 2021
Governments across the region are moving ahead with projects that will improve the living standards of their local populations Social infrastructure projects will be an important source of work for contractors ...
READ MORE
Dubai construction sector will continue to decline
More projects are being completed than started as Expo 2020 deadline looms Dubai’s construction sector is in delivery mode. With just over one year to go until the opening of Expo ...
READ MORE
Dubai’s real estate and construction sectors shift focus to existing assets
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
Future projects are threatened by subdued population growth
Governments are starting to shelve upcoming projects that are no longer considered necessary It is now five years since oil prices began to collapse in late 2014. As a major oil ...
READ MORE
GCC funding requirements are forecast to slow
Higher oil prices and fiscal policy adjustments will reduce GCC sovereign funding requirements until 2021 The GCC states’ cumulative funding requirements are accumulating at a slower rate than expected, and are estimated to reach $300bn ...
READ MORE
Neom city in Saudi Arabia
Economic cycles come and go, but the past few years will be remembered by the GCC construction sector as a period of intense difficulty as the region adjusted to the ...
READ MORE
Prequalification starts for Al-Maktoum airport terminal works
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
Sovereign funds feel the pressure
The Covid-19 pandemic could provide greater scope for sovereign wealth funds to help boost regional economies starved of liquidity US Treasury data released in May painted a dismal scene for Middle ...
READ MORE
MARKET TALK: Steel experts discuss competition
UAE moves to accelerate major infrastructure schemes
Social infrastructure to remain a priority in 2021
Dubai construction sector will continue to decline
Dubai’s real estate and construction sectors shift focus
Future projects are threatened by subdued population growth
GCC funding requirements are forecast to slow
Shifting into a new cycle
Prequalification starts for Al-Maktoum airport terminal works
Sovereign funds feel the pressure
17 January, 2018 | .By JENNIFER AGUINALDO