For the purpose of regulating the operations and activities being carried out by different Federal Entities according to the best international standards and practices, Ministry Of Finance "MOF or The Ministry" has developed this Manual to enhance investment opportunities and promote the efficiency and effectiveness of governance and risk management in order to diversify development mechanisms of strategic infrastructure projects and improve the quality of services through entering into partnership agreements with the private sector.
The objective behind preparing this manual by The Ministry is to document the general frame of guidelines and procedures relating to partnership contracts between Federal Entities and the private sector according to the provisions of Article No. (48) of the Cabinet Resolution No. (32) of 2014 concerning the procurement and warehouse management regulations at the federal government.
This Manual presents a high-level framework for the life cycle of the partnership with the private sector. However, the Federal Entities shall perform more specialized and in-depth research and studies regarding the financial, technical and legal issues, including the legislative environment and to coordinate closely with MOF Technical Bureau which is responsible for supervising the PPP contracts prior to entering into partnership contracts with the private sector, as the nature and life cycle of the project, documents, studies, risks, contracts, and contracts management differ from one project to another.
There are several factors that will lead to a successful partnership with the private sector. The most important factors are the political stability and the maturity of the legal and legislative environment, in addition to enrolling qualified human resources who are experienced in developing, managing and implementing partnership contracts with the private sector. This is in addition creating links between the legislations and systems and the governance concept as they both have various dimensions featuring with administrative, legal, economic, and social aspects that they all meet in common points based on the principles of transparency, disclosure, liability, equal rights of stakeholders, and responsibility determination with a view to promoting the efficiency of resources utilization, strengthening the competitiveness, attracting financing sources and expanding projects to create new job opportunities and support the economic stability.
Various types of partnerships with private sector and the contracts governed by will provide modern means and channels that would enable the Federal Government to give the way to real investment opportunities for the private sector in order to participate with its capital, various experiences and creative ideas in implementing major strategic projects, which have been carried out by the State until recently. Moreover, the Government retains at the same time its authorities to supervise the implementation of these projects and to evaluate the quality and efficiency of implementation through judging the project outcomes.
The global experiences have proved that the PPP contracts with the private sector result in raising the efficiency and effectiveness of performance, promoting the level and quality of services, reducing the cost, achieving optimum utilization of resources through innovation, enhancing competition, stimulating economy and assuring the interests of the society members.
Among important reasons of resorting to partnership approach with the private sector are to distribute the project's risks between the public and private partners, ensure implementing the project within the agreed period and expenditures, avoid waiting for financing, determine in advance all or the total operational and capital expenditures in the budget, enhance the service quality and promote transparency.
Furthermore, the benefits of Public-Private Partnership "PPP" are not only limited to the Federal Entities, but it can include society members on the State level, contributing to activate the decentralization and regional growth.
The UAE Government is looking forward to achieve a great benefit for the society members, the state, the private sector and the entire national economy through implementing strategic development projects by virtue of partnership contracts with the private sector. Meanwhile, the Government realizes the extent of complications related to implementing these projects as well as the challenges that may be faced, especially in the first phases of implementation. Therefore, providing this Manual is considered the first practical step and serves as an open invitation to the private sector to participate effectively and contribute positively in supporting the State's efforts in developing the major strategic projects and supporting the national economy. This goal can only be achieved through deep rooting transparency and governance principles, diligence on part of all relevant stakeholders and concentrating efforts to implement the partnership with integrity and in a manner achieving the supreme interests of the State and the society members.