Hussam Abdulnabi (Dubai)
The private sector is participating in the implementation of 30 vital and prominent projects in cooperation with the public sector within the framework of a portfolio of public-private partnership projects, launched by “Dubai Finance” yesterday, with a value of more than 25 billion dirhams, under the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and President of the UAE Ministers and Ruler of Dubai, may God protect him, and mainly targets the infrastructure, public transportation and urban development sectors.
The launch of a portfolio of partnership projects between the public and private sectors was announced, during the attendance of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, the activities of the “Dubai International Conference on Public-Private Partnership” organized by the Department of Finance in Dubai is under the patronage of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council. With this announcement, the value of existing and announced partnership projects between the public and private sectors in Dubai has exceeded 65 billion dirhams.
The projects under implementation between the public and private sectors follow 5 strategic sectors covering health care, public transportation infrastructure, roads, parking lots and public utilities, waste management, public utilities, water and sanitation, and include 7 urban development projects worth 22.6 billion dirhams, 14 road and transport projects. With a value of 2.4 billion dirhams, 8 health and safety projects worth 526 million dirhams. The Dubai International Conference on Public-Private Partnership was attended by His Excellency Abdullah bin Touq Al Marri, Minister of Economy, His Excellency Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, and a number of general managers and officials.
Comprehensive Development Elements
In detail, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, stressed that the private sector is a key component of the comprehensive development equation in Dubai, with its influential role within various vital sectors, and that Dubai It provided a global role model in approving the foundations of a constructive partnership between the public and private sectors, and the subsequent positive and clear repercussions that contributed to advancing sustainable development rates and accelerating the growth rates of many key sectors.
His Highness pointed to Dubai’s relentless endeavor to take partnership with the private sector to higher levels by providing opportunities, overcoming obstacles and finding new frameworks and paths that allow increasing the space for private sector participation in the strong development process of the Emirate of Dubai. His Highness said: «The vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, The Vice President and Prime Minister of the UAE and Ruler of Dubai, may God protect him, for the future of development and what it requires of concerted efforts, energies and capabilities, was the solid foundation from which this exemplary integration of roles between the public and private sectors was launched, and the main reason for its strength and clear positive impact on Dubai’s development process, including what it included: Great achievements in various fields. His Highness added: “We have high hopes for this exemplary partnership in light of the vision of our wise leadership for the next fifty years… in a framework that guarantees the private sector and its institutions of all sizes and specializations sufficient space to multiply their roles within a supportive and stimulating environment for creativity… The government will continue to work hand in hand with the private sector.” To create the future we aspire to and reach the highest levels of excellence to complete this unique model of partnership that guarantees both sides unlimited prospects of success.. Dubai will always remain the first investment destination in the region with more opportunities, projects and initiatives based on a solid foundation of partnership between the public and private sectors.” .
Features of the next stage
His Excellency Abdul Rahman Saleh Al Saleh, Director General of the Department of Finance in the Government of Dubai, announced the launch of a portfolio of partnership projects worth 25 billion dirhams, which mainly targets the sectors of health care, sustainable transport, urban development, and the green and circular economy.
During his speech at the official opening of the conference, he said that the portfolio took into account the priorities and principles of sustainability and innovative financing, and is based on a solid base of high-quality government infrastructure, on which spending exceeded 100 billion dirhams during the past twenty years. He added that the meeting in this important conference, in the shadows of Expo 2020 Dubai, comes to begin together to draw accurate features for the next stage of innovation in financing vital government projects in partnership between the public and private sectors, stressing that this vital emerging field has become the next global innovative destination for governments. In its endeavors to fund its projects, a field that has witnessed a good amount of experience in a number of cities around the world.
Al Saleh pointed out that the Dubai government has adopted the experience of partnership between the public and private sectors since the issuance of Law No. 22 of 2015, in the belief of the wise leadership in the importance of the private sector and its effective role in achieving sustainable development.
He continued: We have worked for years to develop an integrated framework to ensure the desired launch of partnership projects, by creating the main entities to manage policies and procedures, in addition to identifying a wide range of focus sectors through the diverse portfolio of projects that we are preparing to launch today.
He stated that, in addition, the Department of Finance in the Government of Dubai has established a unit for partnership between the public and private sectors, which works on tracking projects, and it constitutes a center for coordinating all operations, and a link between partners and government agencies, as well as being a center of excellence and creating opportunities for communication between all parties. He called on all government agencies in Dubai to quickly adopt the partnership system with the private sector.
Al Saleh concluded by emphasizing the Dubai government’s keenness to develop the partnership system between the public and private sectors in order for there to be a true partnership based on trust, transparency and credibility, and based on creating economic opportunities for all, targeting sustainability and improving the quality of life, according to the highest international standards.
strategic vision
For his part, His Excellency Abdullah Al Basti, Secretary-General of the Executive Council of the Emirate of Dubai, stressed that the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, may God protect him, has transformed Dubai into a city of achieving dreams .. a city that does not know the impossible.
He added: “Thanks to this strategic vision, Dubai’s development plans, and the key role of the private sector in the civilized renaissance, Dubai has historically formed one of the most successful regional and international models in terms of partnership with the private sector, and it continues to achieve this under the continuous directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of the Emirate of Dubai.
Al Basti said: “The choice of Dubai by the private sector is not a coincidence. Dubai has worked to create the most attractive environment to attract and grow business in the region and the world, as our flights reach markets that include more than 5 billion consumers, and we have an infrastructure that tops global indicators. As for its ports, Dubai owns a network of shipping lines that connect to various parts of the globe, giving it a qualitative logistical advantage, as “DP World” owns and operates 93 ports, and owns 127 companies, in 60 countries around the world, and all of this contributed to the emirate’s being Solid foundations, which made it one of the most cities in the world capable of dealing efficiently with the repercussions of the (pandemic), and a global reference in reactive and proactive policies to achieve more successes.
3 motors
For his part, His Excellency Saeed Mohammed Al Tayer, Managing Director and CEO of Dubai Electricity and Water Authority, announced that the Authority has attracted investments of about 40 billion dirhams, through the independent power and water product model, which it uses in a number of its most prominent projects, pointing to the importance of partnerships in The UAE, which announced last month the “50 projects”, which aim to enhance cooperation between the public and private sectors, are promising investment opportunities.
Al Tayer said: The wise leadership of the UAE attaches great importance to achieving a balance between economic development and preserving the environment to achieve sustainable development, of which renewable and clean energy is one of its most important pillars.
He explained that partnerships between the public and private sectors play an important and decisive role in meeting the challenges of sustainable development, noting that the Dubai Clean Energy Strategy 2050 aims to provide 75% of Dubai’s energy production capacity from clean energy sources by 2050, and it includes five main tracks.
According to Al Tayer, the infrastructure track includes pioneering projects such as the Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar energy complex in the world, with a production capacity of 5,000 megawatts by 2030 under the Independent Power Producer (IPP) model.
He said that as part of the country’s efforts and commitment to promoting green finance, and within the framework of the third track of the Dubai Clean Energy Strategy 2050, the “Dubai Green Fund” was launched to provide innovative financing solutions for green projects, as we are exploring new and innovative financing mechanisms to encourage and enhance spending on sustainable infrastructure. Pointing out that the Eight Principles of Dubai announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, may God protect him, states that “Dubai’s growth is led by three engines: a credible, flexible and distinguished government, and an active and fair private sector. It is open to all, and a semi-governmental sector that competes globally and drives the economy locally.”
Milestones
Al Tayer stated that the main features of the IPP model are the adoption of a successful partnership model on sound commercial foundations, full alignment with international best practices through standard comparisons and in line with the privacy of the Emirate of Dubai and the theme of partnership, in addition to adopting good governance for the model through Creating the appropriate legislative and regulatory environment, pointing out that to use this model, it is necessary to have a strong public-private partnership policy, strong enabling institutions, strategy, goals, initiatives, performance indicators and specific targets, a clear legal framework, with risk sharing, in addition to effective implementation plans. Responsibility should also be assigned to an independent administrative unit that oversees the effective implementation of the model with the concerned authorities.
Al Tayer identified the success factors for the independent electricity and water product model used by the Authority, which are the effective application of good governance to ensure transparency, accountability and the rule of law to enhance investor confidence, develop an attractive regulatory, supervisory and legislative environment, and launch joint projects after conducting technical, economic, financial and other feasibility studies.
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