In 2015, Qatar signed its first true PPP project agreement with a Japanese-led consortium to develop a $3 billion water and power project at Ras Laffan. Qatar is now in the process of drafting a new law to facilitate and nurture its fledgling PPP sector, and to provide a strong legal framework for the efficient delivery of future PPP projects.
Since 1994, when Oman procured the region's first Public-Private-Partnership (PPP) project, the Al Manah power plant, the members of the GCC have successfully launched a number of PPP projects in sectors including roads, bridges, water, power, waste and accommodation.
The text of the new law has not yet been published. However, Qatar's Ministry of Economy and Commerce has stated that it will submit the draft PPP law to the cabinet in August 2016, with implementation scheduled by the end of the year. This is a fast-track timetable.
PPPs can offer clear advantages over more traditional procurement routes, including long term financial certainty, knowledge integration and economic diversification. It may be these factors which will help Qatar realise the ambitious plans for growth in its National Vision 2030, and address the medium and long term needs of its growing population.
Many countries implement PPP projects in order to ease financial burdens. Although this may be a factor, it is thought that the driving influences behind Qatar's efforts are the acceleration of infrastructure development, and the closer public sector integration of private sector experience in the construction and operation of these projects.
Saud al-Attiyah, an official at the Ministry of Economy and Commerce, is quoted saying that PPP opportunities will be made available in sport, health and education, including a programme for the construction of 10 to 12 public schools. This may be only a start, as a recent study by Markab Advisory found that GCC countries plan to invest as much as US$2tn in PPPs and infrastructure over the next decade, and that more efficient procurement processes such as PPP might be worth as much as US$30bn to Qatar in the same period.
At Clyde & Co, we look forward to the publication of the new draft PPP law, and we will circulate our comments and analysis on the draft as soon as it is available.
New Qatar PPP Law expected to accelerate infrastructure development in Qatar
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