Qatar is “edging closer” to enacting its public-private partnership (PPP) law, which according to Meed Business Review, will help the country deeply engage with its private firms.
Projects developed under the PPP framework will help reduce the burden of capital expenditure on Doha, which has committed to spending $70bn on infrastructure in the lead up to the 2022 FIFA World Cup, Meed Business Review’s latest issue shows.
Qatar also wants to grow its healthcare, education and tourism sectors as part of its 2030 National Vision, which aims to transform the country into a knowledge-based economy.
The sectors that have been identified as offering the “best potential” for PPP include hospitality, logistics, education and real estate, Meed Business Review said.
“Even without the legislation in place, Doha has begun a study for the first PPP project in the hospitality sector, under which the government plans to allocate land to be leased to a developer, who will then source funding from banks for the construction,” Meed Business Review said.
Qatar already has experience in using the private sector to deliver utility projects. It has developed four schemes in the power and water sector using variations of the PPP model, including the Ras Laffan Independent Water and Power Projects (IWPPs) A, B and C and the Mesaieed A independent power project (IPP).
Facility D, which is under construction, and the planned Facility E, will also use the IWPP model, Meed Business Review said.
“Structuring deals to be attractive to investors and developing a pipeline of schemes that could be developed under the PPP framework will be key for Qatar to kick-start a PPP projects market,” Meed Business Review said.
In early March Meed had reported that Qatar’s PPP legislation could be in place within a few months.