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PPPs now have a legislative framework: The Finance Ministry has set a new legislative framework to regulate public-private-partnerships (PPPs) in a push toward boosting the role of the private sector in national projects, according to a ministry statement. The law came into effect on 1 December.
The details: The new law aims to boost investments in valuable government initiatives, and leverage private sector expertise and technology to increase the efficiency of strategic projects, state news agency Wam reports. It will also “accelerate the implementation of projects that offer an added value for public funds, minimize financial and operational risks on the government, transform the management of some infrastructure projects and public services, and enhance the competitiveness of projects in local, regional, and global markets,” Wam said.
What are the types of partnerships subject to the new law? The law applies to any partnership project “proposed by a federal entity and wholly or partially funded by the private sector.” According to NR Doshi and Partners, those can include:
- Build, operate, transfer (BOT) frameworks;
- Build, own, operate, transfer (BOOT) frameworks;
- Build, own, operate (BOO) frameworks;
- Build, own, lease, transfer (BOLT) frameworks;
- Financial benefit from assets;
- Management contracts.
Exemptions: The law excludes public asset and privatization projects, supply and procurement contracts related to national security, as well as public companies and government-affiliated bodies and projects. The law also will not be applied retroactively.
Background: Before this law existed, public-private partnerships were governed by a decree (pdf) the cabinet had issued in 2017. The Dubai and Abu Dhabi governments had also individually adopted PPP laws, with the former issuing a law in 2015 and the latter issuing one in 2019.
OTHER LEGISLATION NEWS-
Umm Al Qaiwan Chamber of Commerce and Industries will undergo a restructuring under a new decree issued by Umm Al Qaiwan Ruler Sheikh Saud bin Rashid Al Mu’alla, Wam reports. The restructuring comes in a bid to elevate the emirate’s economic growth by attracting new investments and developing local industries, Wam said. The law is expected to come into effect after it gets published in the Official Gazette.
