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
Dubai contract awards drop in 2018
Contractors and consultants say there are less new work opportunities when compared with previous years The total value of contract awards in Dubai during 2018 is due to register a significant ...
READ MORE
In-country value could positively transform construction in the UAE
Localisation will create barriers to entry and move the market away from awarding work to lowest priced bidders Abu Dhabi’s move to introduce the in-country value (ICV) programme into sectors outside ...
READ MORE
UAE Central Bank will not interfere with construction sector bank guarantees
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
Airport stake sale will test Saudi Arabia’s resolve
Major reforms required to make aviation sector more competitive While a formal appointment has yet to be made, it appears that US-based Goldman Sachs has been chosen to advise Saudi Arabia’s Civil Aviation ...
READ MORE
CONNECT SERIES: Keeping construction moving through Covid-19
How the steps taken to get construction through the Covid-19 crisis will lay the foundations for a better industry post crisis Construction companies in the UAE and across the GCC are ...
READ MORE
UAE landlords must adapt to a changed market
Commercial property landlords in the UAE need to offer greater flexibility to meet the needs of their tenants in the post-Covid environment, says leading real estate adviser Mashreq Download the complete ...
READ MORE
Construction sector adjusts to the new normal
Sentiment in the GCC’s construction market has improved since 2016 The GCC’s construction sector has adjusted to the new normal of lower oil prices and reduced government spending, according to Pinsent ...
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
UAE arbitration process faces challenges
Enforcement of awards has become a key issue as arbitration becomes a more popular method of resolving disputes Attitudes to dispute resolution are changing in the UAE, particularly since the launch ...
READ MORE
A very different crisis for UAE construction
Although there are parallels with 2009, the market is different in 2020 The 2008 global financial crisis has been a dark cloud in the memory of the UAE’s construction sector for ...
READ MORE
Dubai contract awards drop in 2018
In-country value could positively transform construction in the
UAE Central Bank will not interfere with construction
Airport stake sale will test Saudi Arabia’s resolve
CONNECT SERIES: Keeping construction moving through Covid-19
UAE landlords must adapt to a changed market
Construction sector adjusts to the new normal
GCC funding requirements are forecast to slow
UAE arbitration process faces challenges
A very different crisis for UAE construction
17 January, 2018 | .By JENNIFER AGUINALDO