THE BACKGROUND
- PPPs in the UAE or the wider GCC are not new. They have historically been undertaken under project-specific legislation or approvals. Mubadala Development Company initiated PPPs in the UAE with UAE University in 2007, Paris-Sorbonne University Abu Dhabi in 2008 and Zayed University in 2009. Dubai has also previously partially embraced PPP in the form of operation and maintenance contracts (such as the Dubai Metro) rather than full PPPs. GCC governments have also had a successful history of quasi-PPPs in the electricity and water sectors (for example the ADWEA IWPP programme).
The benefits of PPP to GCC governments originally differed from those of other governments. Instead of wanting significant infrastructure programmes without having to pay for them up-front, GCC governments focussed on bringing in new skills, better allocating risks to the private sector (including completion on-time and on-budget) and diversifying their economies away from carbon reliance. Enthusiasm for PPPs in the GCC faltered in the wake of some high profile restructurings, when governments tightened their belts and prioritised initial capital expenditure (which it could afford to pay from its own pocket) over whole-life project costs.
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