Deloitte expert: GCC PPPs not a knee-jerk reaction
"Nuanced" regional PPPs are popular due to more than just financial pressures, David Brazier, director of infrastructure finance advisory for Deloitte, tells CWO
The uptake of public-private partnership (PPP) contracts in the GCC is likely driven by more than just financial pressures, a financial analyst from Deloitte told Construction Week.
David Brazier, director of infrastructure finance advisory for Deloitte, said while financial fluctuations have "sharpened focus" on the value of PPP deals, regional governments are adopting the mechanism for the holistic benefits it offers.
"The changed fiscal landscape has definitely sharpened focus on value but I think it would be wrong to perceive Qatar, or in fact other governments in the region, seeing PPP as solely as funding response," Brazier told Construction Week.
"The thinking is more nuanced and recognises a broader set of imperatives.
"In Saudi, for example, the greater use of these models is part of a wider drive to rebalance the role of government in the economy; in Qatar risk allocation and innovation are key themes.
"Where fiscal objectives are cited, whole life cost savings and budgetary certainty feature highly.
"For sectors such as construction this is good news – this is not a short term or knee-jerk reaction.
"Rather it is seeking to make PPP an additional and sustainable tool to support infrastructure provision," Brazier explained.
Dubai Courts and Park Line inked the first PPP agreement in Dubai on 4 May.
Under the terms of the deal, the world's largest automated car park facility will be developed within the premises of Dubai Courts.
It was reported in March that Qatar would also approve a PPP framework by the end of this year.