18 Muharram 1446 - 24 July 2024
Sign up for newsletter
Eye of Riyadh
Business & Money | Sunday 24 March, 2024 11:12 am |

Hamdan bin Mohammed approves AED40 billion worth of projects under public-private partnership model

During the first meeting of The Executive Council of Dubai since its reconstitution, H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, approved a portfolio of public-private partnership (PPP) projects of the Dubai Government valued at AED40 billion.


The Department of Finance (DOF) of the Government of Dubai announced the portfolio as part of its PPP strategy. Featuring a wide variety of projects, the new portfolio aims to further enrich cooperation and inspire new collaborations between the public and private sectors in the emirate.


Abdulrahman Saleh Al Saleh, DOF Director-General, said, “The ambitious vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, is for Dubai to become a strong, vibrant hub for global economic development and a platform for emerging sectors. This vision enabled DOF to identify the best opportunities in the most active economic sectors and to create a portfolio worth AED40 billion of government projects that can be financed, implemented and operated according to the PPP model.


“Launching an abundant, strong portfolio of projects is a fundamental pillar of the Government’s PPP strategy, and we are ready to benefit from the success achieved in the previous stages of developing the PPP ecosystem and continue to innovate in financing vital government projects,” he added.


“DOF has well positioned Dubai’s PPP ecosystem to become a global innovative destination for governments seeking to finance infrastructure and urban development projects. The government efforts led by DOF have resulted in laying solid foundations for building a comprehensive and integrated system in PPP. We will continue strengthening these foundations and build on them in close cooperation with our partners from government entities and private sector companies, which have the capabilities and expertise and look forward to increasing the positive return on their business,” Al Saleh concluded.


“Over a three-year period, from 2024-2026, the new PPP projects portfolio will cover ten fundamental economic sectors,” said Arif Abdulrahman Ahli, Executive Director of the Planning and General Budget Sector at DOF. “It will contribute to enhancing economic growth and infrastructure development in Dubai,” he added.


“The PPP strategy focuses on the continuous consolidation of the regulatory framework in the emirate. Therefore, DOF has built a comprehensive performance framework (CPF) programme to ensure accurate management of the PPP ecosystem performance,” Ahli observed.


The CPF programme for managing the PPP ecosystem performance within the Government of Dubai revolves around five strategic objectives – ensuring compliance with the Public-Private Partnership Law, policies and guidelines throughout the partnership lifecycle; encouraging government entities to adopt the PPP model; encouraging private sector participation in public sector projects; stimulating innovation in project financing, development and operation through private sector participation; and pushing towards the adoption of environment, social and governance practices in the PPP ecosystem.


“The CPF will eventually become a central guideline applied by all relevant government entities, with the aim of developing a corporate culture based on results, enhancing efficiency and simplifying the decision-making process, among other improvements, to positively impact project implementation and performance,” Ahli summed up.


The PPP ecosystem is gaining great importance in economic development and infrastructure development, said Muna Ahmad Abdulla, Director of the Capital Projects Division at DOF, affirming that partnership projects stimulate the economy and create job opportunities through private sector investments in government infrastructure projects.


“PPP projects improve the infrastructure and modern projects implemented in partnership with the private sector ensure the improvement of services provided to citizens and residents, as partnership with the private sector leads to improved efficiency and innovation in service delivery,” said Muna Abdulla.


“Private sector financing of infrastructure projects contributes to firming governance and activating the principles of transparency and accountability, given that PPP projects are based on clear contracts and strong monitoring and evaluation mechanisms. In short, PPP projects are a powerful tool for achieving sustainable development and improving the lives of individuals and communities,” she concluded.


In 2023, DOF launched a digital platform for managing projects within the PPP ecosystem. Dubbed DP3, the newly launched digital platform specialises in managing partnership projects implemented under the PPP framework across all stages, namely project identification and evaluation, implementation, and commencing of operations. A world first, the unique platform applies to government entities subject to Law No. (22) of 2015 regulating partnerships between the public and private sectors in the emirate of Dubai.


Post Your Comment