Public and Private Sector Partnership
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Partnership Objectives: 1. Executing infrastructure projects in a more efficiently and effective manner.
2. Reducing the financial burdens included in the state budget. |
Public Private Partnership:
Is a contractual scheme that enjoys the benefits of the private sector and the capabilities of the public sector in offering public services |
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Partnership Benefits
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Reduce load on the state budget as well as releasing the government and public sector for the accrued financial burdens. |
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Shift the consequences of the related risks to the investor. |
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Attract capital, encourage investment in an attractive investment climate and motivate private savings through directing to long term investment. |
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Motivate and activate local capital market. |
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Be in line with the global trend and best practices of competitiveness and open market policies. |
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Train national workforce and adopt new state of the art technologies. | |
How can we execute projects through the private sector?
Through tender, Government selects a company to execute a certain project based on a certain type of partnership. An agreement is to be concluded on the obligations and responsibilities of each party, i.e. the government party and the private party, to mitigate and share risks in a manner that secures reasonable return on investment for both parties. One of the most important elements that determine the type of the contract and project ownership is the finance scheme and project nature. |
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Qatari and international projects
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Villagio Shopping Mall (BOT). |
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Some electricity generators owned by Qatar General Electricity and Water Corporation (Kahramaa) (BOO). |
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Some Qatar local companies are currently contracting with local and international corporations in real estate and construction sectors (BOT). | |
Examples of public private partnerships
There is a global trend towards public private partnerships in many countries around the globe; such as China in transport and infrastructure sector, United Kingdom in health sector, Arab countries like Egypt in health and tourism sectors, Jordan and Iraq in real estate development and infrastructure and Kuwait that has recently issued a code governing public private partnerships. |
Volume of private sector partnerships in a number of countries over 1990-2004:
| Item |
Egypt |
Malaysia |
Philippines |
The Republic of Czech |
| Number of projects executed through private sector partnership |
16 |
81 |
78 |
68 |
| Volume of private sector partnership (USD billions) |
6.207 |
37.845 |
31.533 |
16.822 |
Source: World Bank