5.2. Financial Threshold

Projects likely to provide value for money savings when procured as PPPs are those with a total capital expenditure of at least AED 200 million and/or average governmental commitment of more than AED 10 million per annum. Governmental commitment, as defined herein, will comprise an aggregate of operating expenditure, revenue foregone, and other miscellaneous financial commitments. Moreover, bundling of similar projects or different phases of the same project must be considered when calculating project capital and/or operating expenditure.

As a policy, all projects that meet this Threshold must be tested for PPP suitability, and, if found suitable, procured under the PPP framework. Projects below this Threshold can also be procured as PPPs should they exhibit the potential to realise sufficient value for money savings. Additionally, the Department of Finance may, at its discretion, direct governmental entities to screen projects below this Threshold for PPP suitability.