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Qatar will make increased use of PPP, says KPMG

The Qatari government is increasingly interested in public private partnerships for its infrastructure projects, KPMG experts told The Peninsula newspaper02 Apr 2015

KPMG puts the growing interest in PPP down the scale of investment in infrastructure that the government is planning, and its commitment to increasing the role of the private sector.

Mihir Shah, director of KPMG in Qatar, said that there are PPP opportunities "across both traditional, hard infrastructure and critical social infrastructure. With a rapidly growing population, both these areas will require significant investments and entering into partnerships with the private sector provides an ideal solution to complement government spending, bolster capacity and drive growth."

If Qatar is to develop a "vibrant and robust" PPP program, it will need a well thought out PPP framework; projects backed up by thorough business cases and affordability analysis; the right expertise on the public sector client side; and a visible pipeline of viable projects, Shah told the Peninsula.

James Stewart, chairman of global infrastructure for KPMG, said: "globally, PPPs have served as an important tool to bridge the infrastructure gap," the Peninsula reported.

"A key driver in many emerging markets is the desire to spread the cost over the life time of the asset and avoid an upfront hit to the capital budget," he said. "Within GCC (Gulf Cooperation Council countries), there are clear signs of a shift in momentum, with governments exploring options to enter into PPPs and importantly, GCC nations are looking beyond the investment element of infrastructure. They are also looking to partner with the private sector to improve delivery of public services and efficient management of public assets."

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