Abu Dhabi on track for public-private partnerships worth $2.72 bn
The tenders are part of the initiative dedicated to PPPs by the Ghadan 21 accelerator programme
The Abu Dhabi Government has announced its intension to procure approximately $2.72 billion of infrastructure projects in 2020 through its public-private partnership (PPP) model across a range of sectors in Abu Dhabi. The tenders are part of an initiative dedicated to PPPs by the Ghadan 21 accelerator programme, which focuses on economy, knowledge and community development across the emirate.
Ghadan 21 is expected to help the private sector by investing in business through the PPP initiative and participate in partnerships with government entities in developing infrastructure projects. These projects will span across sectors such as social, municipal and transportation. The use of the PPP model supports the growth of the private sector, enhances financial sustainability, and facilitates better execution and service outcomes over the long-term.
Mohammed Ali Al Shorafa Al Hammadi, chairman of the Abu Dhabi Department of Economic Development and the Abu Dhabi Investment Office, said: “Today’s [February 19, 2020] announcement of $2.72 billion of infrastructure projects marks a milestone in our commitment to partner with the private sector to drive Abu Dhabi’s economic transformation. The Abu Dhabi government is committed to further reinforcing the important role of the private sector in the economy, which is key for a sustainable, resilient future.”
The tenders come following the issuance of a law last year by President His Highness Sheikh Khalifa bin Zayed Al Nahyan to regulate partnerships between public and private sectors. The Abu Dhabi Investment Office, in line with its mandate to encourage private sector investment in the emirate, is working alongside key government entities to deliver the PPP model.
“Globally, we are witnessing a shift from factor-driven to investment-driven and knowledge-based economies. Ghadan 21 is playing a critical role in fostering this shift in Abu Dhabi, and the programme is commencing its second year on a solid footing by weaving the private sector even further into the fabric of our development initiatives.”
“Through the public-private partnerships initiative, the government is providing the private sector with more certainty and transparency around the development and procurement of major infrastructure projects in Abu Dhabi,” Al Hammadi added.
The PPP model is expected to give clarity to potential bidders by providing guidelines on joint team structures and ways of working between the government and the private sector, and detailing deregulatory measures to facilitate the contract award process.
Ghadan 21 – its aim is to drive Abu Dhabi’s development through investing in business, innovation and people. The three-year $13.61 billion programme was envisioned and approved by HH Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council in 2018.
