For the purpose of this Manual, the following words and expressions shall have the meanings assigned thereto, unless the context otherwise requires:
| Term | Definition |
| The State | United Arab Emirates |
| The Law | Federal Decree-Law No. (8) For the year 2011 regarding the rules of preparing the general budget and the final account. |
| The Ministry | The Ministry of Finance |
| The Minister | The Minister of Finance |
| The Federal Entity | 1- The Federal government ministries and bodies that are subject to the provisions of the Federal Decree-Law No. (8) of 2011 regarding the rules of preparing the general budget and the general statement. 2- The independent federal entities that are subject to the provisions of the Federal Decree-Law No. (8) of 2011 regarding the rules of preparing the general budget and the final account and/or the provisions of the Cabinet Resolution No. (9) of 2014 regarding the regulation of unified financial and accounting policies for the independent Federal Entities. |
| The competent authority in the Federal Entity according to the law of establishing and regulating each of them. |
| A permanent ministerial committee reporting directly to the Cabinet approves the projects and initiatives studied and evaluated by the Technical Bureau and submits its opinion in this regard before referring the same to the Cabinet for final approval. |
| An office reports to the Minister of Finance and consists of experienced and competent financial, technical and legal consultants in charge of providing financial, technical and legal support to the Federal Entities that wish to implement strategic projects through partnership with the private sector. |
| An agreement between a Public Sector Entities and a Private Sector Companies to share risks and opportunities in the joint commercial projects involving providing public services. |
| A set of laws, regulation, decrees, principles and general controls aiming at achieving the quality and excellence of performance by selecting proper and effective ways to achieve plans and goals. Therefore, governance means application of regulations that control the relationships between the key parties affecting the performance. The governance aims at achieving justice, integrity, liability and transparency, enhancing the performance and ensuring the interests of the society. |
| An event causing the real conditions of the project to differ from those that are assumed and based on the expected project cost. |
| Determination of the likelihood of the specified risk occurrence and its consequences or results, if occurred. |
| Determination of all the risks related to the project. |
| An attempt to reduce the likelihood of risk occurrence and the degree of its consequences on the affected entity |
| An expression means that the parties to the PPP contracts jointly bear and manage the risks, where each party manage the risks which it has the experience in managing and handling thereof. |
| Risks related to defects or deficiencies in the project designs. For example, the project design does not meet the objectives or provide the contracted services. |
| The risks related to the project construction or implementation period. These risks can be divided into more specific sub-groups to include the risks resulting from delay in supplying equipment or obtaining the permits and licenses required to handover the project site to the investor, or from the operational loss risks resulting from not handing over the project by deadline etc. |
| Represents the risks related to the operational period of the project, such as the risks of the project need to spend maintenance expenses much higher than the planned expenses in order to ensure the operation efficiency and effectiveness or to ensure the continuity of the project for the expected period. |
| The optimum combination between the total cost of the project and the return on investment throughout its entire life cycle, taking into consideration the operational costs, the environment protection, sustainability and the benefit to for the Federal Entity and the State. |
| The cost estimated to implement the project according to the detailed feasibility study approved by the competent authority. It includes, but not limited to, all the designs, construction, maintenance and other necessary expenses required ensuring the optimum use of the project. |
| A set of activities and successive phases consisting of a number of accurate and comprehensive studies and data with a view to estimate the viability of the investment project to achieve the desired objectives. The feasibility study takes into consideration, for example but not limited to, the financial, technical, legal, economic, environmental and sustainability aspects. |
| It represents one of the feasibility study components and means preparing financial data and analysis that show the expected cash flows throughout the life cycle of the partnership project. These studies shall be designed in a flexible manner that would enable to achieve clear and accurate outcomes in case of changing the assumptions as well as clarify the impact of those changes. The financial study includes risk analysis, costs and its distribution and the expected financial statements. |
| It represents one of the factors used in assessing the investment proposals, and depends on calculating the project's cash flows. It is considered one of the common methods used to compare between a set of projects to select the best one. It is defined as the discount coefficient that makes the output of "the current positive value of cash flow" minus "the negative value of cash flow" equals to zero. In general, if the IRR exceeds the project financing cost, it shall represent an added value and the project is accepted and vice versa. |
| A local or foreign private company (or group of companies) registered under the Commercial Law in the state. The Federal Entity contracts with this company to carry out a strategic contract through the PPP contracts program. |
| A person or entity designated by the Federal Entity, which has a sufficient ability, efficiency and experience to manage the PPP contract with the private sector from the project commencement until its handover and closure. |
| A person works for the Technical Bureau and plays a vital role due to his abilities to manage the PPP contract as well as his experiences and skills that enable him to provide technical support to the Federal Entity concerned with the PPP contract. He also assists the office officials in the technical assessment of the outcomes provided by the project consultant. |
| An entity (Person(s) or a company) officially appointed by the Financial and Economic Committee. It has the proper experiences, qualifications and skills necessary to provide the technical support in its capacity project consultant. The project consultant's services include drafting and preparing the PPP contract and helping the parties to understand thereof prior in preparation for signing it. |