Monday 22 July 2024

UAE issues PPP manual, defines top priority sectors

DUBAI, 26 days ago

The UAE Cabinet has given the go-ahead for the Public-Private Partnership (PPP) Manual, in a  major step aimed at developing a policy and procedural framework to enable federal government entities to implement their developmental and strategic projects efficiently and effectively, and also enhance their benefit from the financial, administrative, and technological expertise of the private sector. 
The manual encourages the private sector to proactively participate and contribute to supporting the UAE’s efforts to develop national and strategic projects to achieve the maximum possible benefit for society, the nation, the private sector, and the national economy. 
Announcing this today (June 25), Ministry of Finance said the manual defines the roles and responsibilities of relevant entities by documenting procedures related to PPP contracts, their governance, including proposals from the private sector, market studies, value-for-money assessments, project structuring, and management, in compliance with Federal Decree-Law No. 12 of 2023 on regulating federal PPPs.
This initiative falls within the Ministry’s efforts to create optimal conditions and support national efforts to stimulate investment in joint projects between federal entities and the private sector. 
The manual governs the operations and processes for designing, planning and implementing projects, as well as provides a summary guideline for federal entities and private sector partners to follow in partnership projects, ensuring transparency and clarity for all concerned parties.
It also includes instructions on determining priorities for partnership projects between the federal government and private sector, studying and evaluating the proposed project after conducting a comprehensive analysis of it from various aspects, selecting partners, and procedures for submitting bids and offers to potential partners in the private sector. 
By providing this specific framework for organising and implementing partnership projects between the public and private sectors, the manual unifies the mechanisms, standards and conditions for implementing partnership projects.
In collaboration with strategic partners, the UAE ministry has identified priority sectors for the first phase of future partnership projects, including infrastructure, energy, healthcare, social services and education.
It aims to build and manage integrated and effective strategies and enhance cooperation and dialogue between the public and private sectors, given the importance of this collaboration and its impact on various aspects of economic activity. 
This effort also aims to enhance governance frameworks to maintain government efficiency and flexibility, and develop its relevant tools.
Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, said the UAE was progressing towards empowering and enhancing its path to sustainable economic growth. 
"In a world where cooperation and integration between the public and private sectors are fundamental pillars for achieving the nation’s aspirations and strengthening its position, this cooperation aims to achieve better value in public spending," he noted.
According to him, the ministry was keen on enhancing the partnership between the public and private sectors, recognising their significant role in the country's social and economic development thereby promoting sustainable economic growth and ensuring comprehensive prosperity for all members of society. 
"Case studies around the world have shown that public-private partnerships enhance efficiency and effectiveness, improve service levels and quality, reduce costs, and optimally utilise resources through innovation, competition enhancement, economic stimulation, and safeguarding individual interests," stated Al Hussaini. 
"This manual represents a practical step forward and an open invitation for active participation and positive contribution from the private sector in supporting the UAE’s efforts to develop major strategic projects and support the national economy," he added.-TradeArabia News Service


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