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”, the Abu Dhabi, and more specifically the Abu Dhabi Investment Office (ADIO), is opening the market and the opportunities by bringing into the picture a ‘new’ value proposition to companies and investors. the PPP. Armed with a new legal framework, several decades of experience in investments/development and with a solid Emiratization regulation, are boosting the economic growth of the Emirate and the lead by example, how the upcoming investments will look-like in the region, in general.
In the new PPP model, stakeholders roles and interest remain the same, regardless of the PPP peculiarities, the revenue streams and the type of works,
- 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 that holds the grant to execute and operate, generating profit and facilitating 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. Design Groups, Lab Testing and QC are all under the management of the Contractor. Most of the time, the Contractor J/V, is the Concessionaire, with a ‘different’ hat on.
- The Independent Engineer = The Quality Assurer and the Supervisor of the works (of the Contractor) that provides the monitoring and reporting of works (status of the Project) to the Project Owner and the Banks.
- The Banks = The recent merging of Banks within Abu Dhabi indicates that: UNITED we STAND and that means that Projects of this kind, require heavy funding and financial resilience.
Having word with Jacobs in Europe and based on my experience, PPP Projects, more than anything, require centralized management. They require software to manage works and serve info based on the profile and interests of the stakeholders.
At any case, PPP is here to stay and the only way to move the economy and growth forward when it comes to development.