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
Transactional data and large-scale investments including the Wynn Resort indicate strong appetite for Ras al-Khaimah’s ‘nature and community living’ promise
· Ras al-Khaimah real estate is enjoying a period of robust ...
READ MORE
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
Restructuring credit in accordance with the current environment is key to the survival of contractors and their projects, says Mashreq’s Mohammad al-Shouli
This article is extracted from the report 'UAE Construction ...
READ MORE
Tightening fiscal space broadens Middle East opportunities for public-private partnerships once again
Outside the power and water sectors, public-private partnership (PPP) projects have had only limited success in the Middle East ...
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
Supply and demand imbalance is resulting in less office space being built and property owners offering tenants generous incentives
Dubai’s office market continues to be oversupplied, resulting in less office space ...
READ MORE
Alternate legal routes are available to companies that find themselves unable to meet contract commitments due to Covid-19
Findings from Mashreq Construction Club Connect Series episode I
On 16 April, the Mashreq ...
READ MORE
Bahrain’s Ministry of Housing signed a construction deal with China Machinery Engineering Corporation
Bahrain joined China’s Belt and Road Initiative (BRI) when the Ministry of Housing formally signed a BD260m ($690m) ...
READ MORE
Egypt leads value of deals signed
Egypt helped the Middle East record the highest value of deals let to date in 2018, with the country’s $7.8bn of contracts signed forming the ...
READ MORE
Middle East and North African banks face a difficult 2021 amid weaker profits and the pending end of liquidity stimulus measures
After an epoch-changing 2020, it may be rash to make ...
READ MORE
A Wynn-Wynn situation: Ras al-Khaimah real estate growth
In-country value could positively transform construction in the
Changing tides in project finance
Governments refocus on public-private partnerships
Dubai real estate will improve in 2021 at
Oversupply continues to challenge Dubai office market
CONNECT SERIES: Applicable UAE construction laws amid Covid-19
Bahrain joins China’s Belt and Road with housing
Middle East contract awards: September 2018
Mena lenders trudge into a tougher year
17 January, 2018 | .By JENNIFER AGUINALDO
