The international business community, including Doha-based foreign trade offices, anticipate the implementation of Qatar’s new public-private partnership (PPP) law to accelerate the country’s massive infrastructure development and provide greater support for the private sector and foreign investors. The law is expected to pave the way for the launch of several investment projects in Qatar.
The draft PPP law was approved by the cabinet in April and is in the final stages of discussions. It will include the allocation of land through rent or use license, for development by the private sector through build-operate-transfer (BOT), build-transfer-operate (BTO), build-own-operate-transfer (BOOT), and operations and maintenance (OM) among other provisions.
“PPP law is an important tool to develop cooperation agreements between Italian and Qatari companies,” Italian Trade Commissioner to Qatar Giosafat Rigano told The Peninsula recently.
Rigano heads the Italian Trade Agency in Qatar, which functions under the Italian Embassy here. He said Italian companies are interested to participate in Qatar’s PPP deals, particularly in sectors including Infrastructures, Contract, Building and Construction, Oil & Gas, Engineering, Interior Design and Decoration, and Agroindustry. Indonesia, which is the largest economy in South East Asia, is also keen to take part in Qatar’s PPP projects, such as the Hamad Port Food Security Project.
“We can help Qatar build its food security project. We have established technologies such as aquaponics and hydroponics which are already being applied in other countries, including Gulf countries. We are also open for plantation in our country as we currently have over 40,000 hectares available for agroindustry. We are currently in the process of closing some deals,” said Hendra Turman, President of the Indonesia Qatar Business Council.
Companies from the Philippines, a country predicted to be one of the bigger economies by 2050, are also eyeing a number of Qatar-based projects through PPP agreements.
“The PPP law opens a lot of opportunities to support the Qatar National Vision and the Fifa World Cup. It will present new opportunities for businesses to work with the Qatari government and enable Qatar as a destination for business, be it in the areas of healthcare, sports, tourism, and education. These sectors can provide a lot of opportunities for foreign entities, including the Philippines,” said Gregario Loayon, Chairman and Managing Director of the Philippine Business Council in Qatar.
While several PPP projects have already been launched in Qatar without a dedicated PPP legislation, studies show that having well defined PPP policies and legal framework is crucial to the success of implementing PPP initiatives.
The Qatari government has indicated that PPPs will be used to support projects connected to the Qatar 2030 vision and the 2022 World Cup. The total expected project values are thought to be in the region of $350bn, global law firm White & Case has said.
PPPs are expected to be used for a range of projects, including hospitals and healthcare, sports facilities, schools, housing, mixed use real estate projects and other public infrastructure.
