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A common type of Project development, adopted several decades ago in Europe, is now coming to GCC (and the Middle East Market in General).
In a recent article in “The National”, Abu Dhabi, and more specifically the Abu Dhabi Investment Office (ADIO), is opening the market and its opportunities. In doing so, it brings a ‘new’ value proposition to companies and investors: the PPP. Armed with a new legal framework, several decades of experience in investments/development and a solid Emiratization regulation, the Emirate is boosting its economic growth. In addition, it leads by example and shows how upcoming investments will look in the region.
In the new PPP model, stakeholder roles and interests remain the same. This holds regardless of the PPP peculiarities, the revenue streams and the type of works. The main stakeholders are:
- Project Owner = The Public that is in charge of the Project’s Operational status and the owner of the land.
- The Concessionaire = The master operator and facilitator of the Project. It holds the grant to execute and operate the Project, generating profit while serving the public interest of the Project Owner.
- The Contractor = Usually a J/V that will construct the Project based on a well-structured Quality, HSE system and modern techniques. The Contractor also manages Design Groups, Lab Testing and QC. In fact, most of the time, the Contractor J/V is the Concessionaire, with a ‘different’ hat on.
- The Independent Engineer = The Quality Assurer and Supervisor of the Contractor’s works. It also monitors the works and reports the status of the Project to the Project Owner and the Banks.
- The Banks = The recent merging of Banks within Abu Dhabi sends a clear message: UNITED we STAND. In other words, Projects of this kind require heavy funding and financial resilience.
Based on discussions with Jacobs in Europe and on my experience, PPP Projects require centralized management more than anything. Therefore, they need software to manage works and serve info based on the profile and interests of the stakeholders.
In any case, PPP is here to stay and the only way to move the economy and growth forward when it comes to development.
