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Public Private Partnership (PDF) The State of Qatar (Qatar) has recently published Law No. 12 of 2020 (the PPP Law) to regu- late the operation of public private partnerships (PPPs) in Qatar. This is a key move for the development of Qatar's infrastructure, and in light of the Qatar National Vision 2030. Benefits of PPP The partnership between the public and private sectors has become the main drive for busi- ness in the world as governments intend to involve the private sector in development and infrastructure financing Opportunity for the public sector to present its perceptions of partnership and the great pros- pects that it opens up for the private sector to develop and grow PPPs will accelerate the introduction of governmental projects and push forward economic Development, in addition to attracting local and foreign investments to different economic sectors. The PPP law will increase private sector involvement in Doha’s local economy PPP law will help boost the engagements and complementary relationship between the public and private sectors. It will provide a regulatory framework for the contractual relation- ships between both parties • Private Sector may propose initiatives to PPP Department • Foreign Direct Investment is encouraged to participate in PPP Projects • Joint venture entities may participate in PPP projects tenders Type of projects: Health Sector (public hospitals projects) Education Sectors (public schools projects) Tourism Sector (resorts projects) Infrastructure (diverse infrastructure projects) Forms of PPP Article 3 of the PPP Law provides that the partnership can be governed by any of the follow- ing procurement models: • Allocation of land through a lease (or usufruct licenses) to be developed by the private sector (this model has previously been seen in projects in the Aspire Zone in Qatar); • Build operate transfer (BOT) (whereby typically a public body grants a concession to a pri- vate entity to both build and operate a project, which aer a defined timeframe would revert to the public body) (this model has previously been seen in the development of hotel infrastructure in Qatar); • Build transfer operate (BTO) (which differs from a BOT model as a public body would ef- fectively grant a management agreement to the private entity to operate the project follow- ing the completion of construction); • Build own operate transfer (BOOT) (which differs from a BOT model as the private entity would own the project during the project period); • Operation and maintenance (O&M) (where essentially a private entity steps in to operate and maintain a project, once it has been constructed by a public body); or • Any other model approved by the Council of Ministers. PPP Projects 4 health centers for the Primary Health Care Corporation (PHCC) • Benefit period: 25 years as of the commencement of operation • Estimated capital expenditures (CAPEX): 672 million Qatari Riyals • Estimated operating expenses (OPEX): 995 million Qatari Riyals as per model to be chosen • Estimated expenditures of the State: Pending approval • Contract type: DBFM Project goals: The State of Qatar allocated an opportunity for the private sector to participate in the design, construction, financing, and maintenance of 4 primary health centers. 1 - Madinat Khalifa Primary Health Care Center (replacement) 2 - Umm Ghuwailina Primary Health Care Center (replacement) 3 - Nuaija Primary Health Care Center (new building) 4 - Al Themaid Primary Health Care Center (new building) HMC offices and parking lots • Benefit period: 25 years as of the commencement of operation • Estimated capital expenditures (CAPEX): 839 million Qatari Riyals • Estimated operating expenses (OPEX): 751 million Qatari Riyals as per model to be chosen • Estimated expenditures of the State: 2.391 billion Qatari Riyals • Partnership type: BOLT Project goals: Hamad Medical Corporation (HMC) has devised a master plan for Hamad Bin Khalifa Medical City (HBKMC), to meet the population’s future healthcare demand. The master plan includes infrastructure development including administrative offices and support facilities to accommodate up to 9,000 employees. HMC plans to build office facilities for 2,900 employees within the HBKMC premises. Sewage treatment project in Al Wakra and Al Wukair • PPP model: Build, Operate and Transfer (BOT) system - treatment capacity of 150,000 cubic meters/ day • Benefit period: 25 years • Estimated capital expenditures (CAPEX): 2.637 billion Qatari Riyals • Estimated operating expenses (OPEX): 2.966 billion Qatari Riyals • Partnership type: BOT Project goals: Developing the sewage infrastructure in Al Wakra and Al Wukair areas (through de- veloping a wastewater treatment plant with an average capacity of 150,000 cubic me- ters/day, in addition to developing joint facilities in Al Wakra and Al Wukair areas, which have witnessed significant population growth and development in recent years). Schools - third package • Benefit period: 25 years as of the commencement of operation • Estimated capital expenditures (CAPEX): 1.721 billion Qatari Riyals • Estimated operating expenses (OPEX): 2.279 billion Qatari Riyals • Estimated expenditures of the State: 6.07 billion Qatari Riyals • Partnership contract: DBFOMT The package consists of: • 3 primary schools • 5 preparatory schools • 4 high schools • 1 mixed school • 1 school for individuals with special needs LED street lighting • Benefit period: 25 years as of the commencement of operation • Estimated capital expenditures (CAPEX): 600 million Qatari Riyals • Estimated operating expenses (OPEX): 2 billion Qatari Riyals • Estimated expenditures of the State: 3.5 billion Qatari Riyals • Partnership contract: DBFOM Project goal: • Installing 107,993 lighting units and 49,477 lighting poles along 500 km of express- ways and orbital highways in Qatar • Saving energy and reducing carbon emissions by a range of 44% - 56%. If CMS and LED are used, the potential energy savings can be estimated at up to 51% compared to the current situation under the HPS system. Resort projects Contract type: BOT Name of Total Area Total Capex (QAR) Total Rooms Project (Sqm) Ras Brouq 315,598 419,411,568.44 48 Fuwairt 74,279 171,883,582.56 32 Bin Ghannam 86,549 No CAPEX data yet 70 .
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