Clear laws needed to support PPPs for MENA region
IFC predict a shaky future for PPPs in the transport sector
The International Finance Corporation (IFC) says a lack of transparent legislation covering public-private projects (PPP) is hampering efforts to attract investment into infrastructure projects in the MENA region.
According to the IFC, the Middle East and North Africa region currently faces a shortfall of more than $70bn in infrastructure investment. In January this year Construction Week reported that the interest in PPPs in the MIddle East was on the rise as private investors looked to get behind infrastructure projects in the MENA region.
Since then, a number of planned PPP deals across the region, including Jordan’s New Aqaba Port, the Saudi Landbridge and Abu Dhabi’s Mafraq-Ghewifat highway, have failed to be implemented.
According to Nasser Saidi, Chief Economist at Dubai International Financial Centre Authority, there is a requirement for the introduction of PPP laws and much more investment in infrastructure and logistics from the region.
In a report carried by MEED, Saidi said, “There are some PPP schemes in the regional power sector, but changes to tendering policies and processes, as well as the introduction of special PPP laws to mitigate the risks, are required to develop this participation”
He suggested that for successful investment in PPP projects from both the government and private sector, there is a desperate need for more government backing.
"This will reassure the private sector that the region is serious about its PPP plans and prove that both private finance and a clear legal infrastructure are in place," he said.