The projects are expected to span sectors such as social, municipal and transportation/Shutterstockby Kudakwashe Muzoriwa
The Abu Dhabi Government plans to issue tenders worth around AED 10 billion this year under the emirate’s public-private partnership (PPP) model to boost infrastructure projects in a range of sectors, according to local newswire, WAM.
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.
Ghadan 21 will help the private sector, through this PPP initiative, to participate in partnerships with government entities in the development of major infrastructure projects. The projects are expected to span sectors such as social, municipal and transportation.
The issuance of the tenders follows the introduction in 2019 by President HH Sheikh Khalifa bin Zayed Al Nahyan to regulate the partnerships between the public and private sectors.
Additionally, the Abu Dhabi Investment Office (ADIO) is working alongside key government entities to deliver the PPP model.
Mohammed Ali Al Shorafa Al Hammadi, the Chairman of the Abu Dhabi Department of Economic Development and Chairman of ADIO, said, “Today’s announcement of AED 10 billion of infrastructure projects marks a milestone in our commitment to partner with the private sector to drive Abu Dhabi’s economic transformation.”
Abu Dhabi’s PPP model provides guidelines on joint team structures and ways of working between the government and the private sector as well as detailing deregulatory measures to facilitate the contract award process.
Globally, we are witnessing a shift from factor-driven to investment-driven and knowledge-based economies and Ghadan 21 is playing a critical role in fostering this shift in Abu Dhabi, said Al Hammadi.
Ghadan 21 has facilitated a series of initiatives, including the launch of Abu Dhabi’s new technology centre, Hub71, now home to 39 start-ups. Similarly, a new Ventures Fund worth AED 535 million was also rolled out to boost start-ups.
PPP is a method that allows a consortium of bidders to design, build, finance and operate an infrastructure asset over long periods of up to 20-30 years. The projects are backed by private financiers, who receive a regular income stream from the asset during the period.