PPP model could help governments deliver infrastructure.
Governments in the GCC should do more
to adopt Public-Private Partnership (PPP) model for future infrastructure
spending, according to a round table hosted by the ICAEW.
The accountancy industry body held the round table event in
Dubai International Financial Centre last week, with speakers from leading
The PPP model could prove lucrative for the GCC public
sector, the panel said, although there is still a lack of awareness around PPP
and a need for a legal framework to manage it.
Use of the PPP model would mean GCC governments can save
valuable public finances and also enable them to attract more foreign
investment, create jobs and encourage the transfer of skills to the public sector.
Abu Dhabi was recognised for having a PPP model that has
delivered successful PPPs in energy, infrastructure and educational sectors.
Panellists included Brad Watson, Partner and Infrastructure
Advisory Lead, Middle East and Africa, EY; Sachin Karia, Partner, Allen and
Overy; Paul Norris, Senior Infrastructure Advisory, Abu Dhabi Department of
Finance; and Jeronimo Roura, Chief Executive Officer, MENA Infrastructure Fund.
The discussion was moderated by Tobias Thunander, Head of Debt Advisory
Services, UAE, KPMG.
Panellists agreed there is a lack of understanding about the
PPP concept in the region, which is largely considered to be purely a financial
Speakers explained that GCC governments have to appreciate that
the PPP model is a long-term partnership that brings to the public sector a
number of benefits including the transfer of expertise, innovation and
efficiency from the private sector. It also transfers many risks, that
typically have been borne solely by the public sector, to the private sector.
Panellists advised that in order to facilitate collaboration
between the public and private sectors, there is a need for a good 'Public
Procurement Law' which is transparent and sets out the processes to be followed
for all forms of public procurement.
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