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Kilpatrick Townsend partner Thomas Wilson told the MEED PPP Forum in Abu Dhabi this morning that companies can make money from public-private partnership (PPP) projects.
“We have seen highly successful PPP projects that have allowed construction companies to make nice profits,” Wilson said. “Though it has to be said that we have also seen unsuccessful ones.”
“Contractors take more risk than usual when they work on PPP projects,” Thomas said. He said that there were four key risks: design deficiency; delays; unanticipated ground conditions and force majeure.
“Other issues are long and expensive tender phases; heightened requirement for performance securities and operator interfaces,” Wilson said.
The future of PPP in the Middle East has recently been called into question following Abu Dhabi’s decision earlier in May to cancel the $3 bn Mafraq-Ghweifat road project which was to have been delivered on a PPP basis.
Read the AWCS event coverage
From Arabian World Construction Summit Blog
The Arabian World Construction Summit (AWCS) is back with a greater focus on the new wave of projects that the countries in the Middle East plan to implement in the next five years.
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