Whilst Dubai has implemented a handful of PPP projects prior to the introduction of this new law, notably the recent solar PV projects, the general approach has been to procure infrastructure on a pure EPC basis, with those infrastructure assets then being owned, managed and run by “Dubai Inc”. The expression “PPP” refers to “public- private partnerships” andwhat the new law is aiming to do is to create greater collaboration between the private and public sectors inDubai. In particular, theDubai government is looking to develop new forms of long termconcessions or partnerships. Thiswill result in future tenders being released giving the private sector amore strategic role in the design, construction, financing and ongoing operation of certain Dubai infrastructure assets. Recently, Dubai’s Roads and Transport Authority (RTA) announced its intention to develop both the Union Oasis Station and The Dubai Transportation Academy projects as PPPs. For the Union Oasis project, private developers are currently completing the prequalification requirements; it is intended that this project will be a mixed used development project with a 30 year concession period. Given how far advanced the RTA is, we expect many of the early Dubai PPP deals will come through this agency. What does the new law say? Objectives of the new law include (i) lessening the financial burden on the state budget, (ii) transferring risk from the public sector to the private sector,
PPP developments in Dubai With the increasing globalisation of the infrastructure market, the recent publication of Dubai’s PPP law is of interest globally because it signals a clear statement of Dubai’s intent to use private sector finance and expertise to help meet its future infrastructure needs. The enactment of this new law is interesting as most PPP style projects can be implemented in Dubai without this new law. The new PPP law is therefore sending a statement of policy intent to the developer, investor and lender community that this style of project is welcome, has the full backing of the state and should lead to greater ‘deal flow’. The international PPP community will therefore be following the progress of this carefully to see whether it does lead to an uplift in the number of new infrastructure projects being brought to market.
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