Qatar appoints PPP advisers

01 May 2016

PPP model may be used to deliver World Cup stadiums

Qatar has appointed the UK’s PwC and Eversheds as advisers for a new public-private partnership (PPP) framework.

Doha may even consider using PPPs to partially finance its stadium construction programme, one source close to the process told MEED.

“The direction of travel in Qatar is to explore private financing for as much of the infrastructure investment as possible,” says the source. “For the stadiums they are looking at a mix of PPP, contractor financing and strong government support.”

This will be challenging to implement given the Fifa World Cup 2022 deadline for stadiums and infrastructure in Qatar. So far, work has been let traditional construction contracts, with some contractor financing attached.

Local banks have yet to be contacted on specific PPP projects, and are continuing to focus on contractor finance.

Qatari officials have previously told MEED that the new law would be drafted by August.

Qatar is following the lead of Dubai and Kuwait in turning to PPPs to finance projects with oil prices expected to stay low for several years.

UK law firm Clifford Chance prepared a previous draft PPP law for Qatar in 2013, but it was never implemented. This version is expected to be general rather than prescriptive.

“It’s better to work within the ambit of existing commercial law and get exemptions for projects than to have a big unwieldy PPP law, which is an excuse for different interests to interfere,” says the source. “In Dubai, it is more a high-level policy direction.”

The UK’s EY is also advising Oman on its new PPP framework, and should present its recommendations soon. Read more: PPP

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