1. Government Entity: The Government Entity is chiefly responsible for the preparation of the project as a PPP. Following the approval of the Project Concept Report by the Department of Finance, as outlined in Section 2.3, the Government Entity must hire Transaction Advisors as part of the PPP Project Team, should it so desire (detailed guidance on this is provided in the Annexure). Prior to commencement, the Government Entity should ensure that the entire PPP Project Team and Partnership Committee have been set up and its members nominated pursuant to the requirements of the Law. Moreover, clear roles and responsibilities, and a reporting structure must be outlined in order to ensure that the Feasibility Study is prepared within a reasonable timeframe.
The approval mechanism for the Feasibility Study is identical to that followed for the Project Concept Report, and must align with Article 8 of the Law. The approval of the Feasibility Study is subject to the value of the project: for projects with a value of less than AED 200 million - wherein the Government Entity has decided to proceed with the preparation of the project as a PPP even though it is not mandatory - the Project Concept Report is to be submitted to the Partnership Committee for review, following which approval is provided by the Director General of the Government Entity; for projects with a value between AED 200 million and AED 500 million, the Department of Finance will approve the Feasibility Study, following the review of the Partnership Committee; and, for projects with a value greater than AED 500 million, the Department of Finance will review the Feasibility Study and recommend to the Supreme Fiscal Committee, which will provide the Final Approval for the Government Entity to proceed with the project as a PPP.
2. Department of Finance: The Department of Finance will be the chief provider of assistance during the preparation of the project as a PPP. Whilst no content will have to be directly provided by the Department of Finance, government entities - particularly at the start of the PPP programme, or those with limited experience of procurement when the programme matures - will require varying degrees of assistance at different stages of Feasibility Study preparation. Moreover, if the project value is greater than AED 200 million, the Department of Finance representative will be a member of the Partnership Committee, and will be able to monitor progress on a more frequent basis.
In addition to the provision of assistance to government entities, the Department of Finance will, pursuant to Article 8, be the primary approver of the Feasibility Study for projects with a value of between AED 200 million and AED 500 million, and shall review and recommend for approval to the Supreme Fiscal Committee reports for projects with a value of greater than AED 500 million.
3. Supreme Fiscal Committee: For projects with a value of greater than AED 500 million, the Supreme Fiscal Committee will serve as the final approver of the Feasibility Study prepared by the Government Entity and recommended for approval by the Department of Finance. In addition, were the Government Entity to seek permission to deviate materially or substantially from these guidelines on any aspect of the Feasibility Study, or if the Department of Finance were to report Deviations upon review, the Supreme Fiscal Committee will be the final approver of whether the amendments are permissible.
4. Partnership Committee: The Partnership Committee, which must be set up prior to the commencement of the Feasibility Study preparation, and must be formed pursuant to the requirements of the Law, will function as the primary internal supervisory body, monitoring the performance of the PPP Project Team, observing progress and adherence to stated Timelines, ensuring adherence to these guidelines, and providing reviews and detailed comments on drafts of the Feasibility Study which must be submitted in accordance with a project charter agreed to at the start of every project.