Legislation Details
- Full Title: Federal Law on Regulating the Federal Public-Private Partnerships (PPP)
- Law Type: Federal Law
- Law Number: [number] of 2023
- Issued Date: 27 Nov 2023
- Effective Date: 01 Dec 2023
- Official Gazette: No. 764
- Sector: Finance and Banking
- Status: Active
- Number of Articles: 72
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Law regulates public-private partnership (PPP) projects between the UAE federal government and the private sector. Its purpose is to encourage private sector participation in strategic development projects, enable the government to implement projects efficiently, and benefit from the private sector's capabilities. The law establishes a framework for proposing, evaluating, and implementing PPP projects, defining the roles and responsibilities of the Ministry of Finance and federal agencies. It aims to increase investment, improve public services, and transfer knowledge from the private to the public sector. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 1-2)
What is the scope and purpose of this law?
The law applies to any PPP project funded in whole or part by the private sector and proposed by a federal agency in the UAE. It excludes certain types of contracts and projects, such as those concluded before the law's effective date, outsourcing services, projects below a financial threshold, privatization of public assets, and projects related to national security. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 3-4) The law's objectives are to: organize PPP projects between the federal public sector and private sector; encourage private sector participation in development and strategic projects; enable the government to efficiently implement strategic projects; benefit from the private sector's capabilities; increase productivity and service quality; transfer knowledge and experience; implement value-adding projects; reduce government financial and operational risks; and stimulate project competitiveness. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 2)
What are the key definitions under this law?
The law provides the following key definitions:
- State: The United Arab Emirates
- Government: The Federal Government of the UAE
- Ministry: Ministry of Finance
- Minister: Minister of Finance
- Federal Public Sector: Ministries, federal authorities, institutions, regulatory bodies, and other federal government entities
- Concerned Federal Agency: The federal agency responsible for proposing the project
- Private Sector: Companies and commercial institutions (excluding government-owned entities)
- Potential Partnership Project: A project that meets the criteria for partnership projects
- Partnership Project: A contractual relationship between a federal agency and private sector partner(s) to provide a public service or operate a public facility
- Partner: A private sector legal person or coalition that is a party to the partnership contract
- Project Company: A company or institution established by the partner to implement the project
- Project Agreement: The contract between the federal agency and partner
- Project Team: The team responsible for developing and presenting the project
- Grievance Committee: A committee formed by the Minister to hear appeals
- Partnership Projects Guide: A guide issued by the Ministry containing rules, provisions, and procedures for partnership projects
(Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 1)
What are the main obligations and requirements?
The law imposes the following key obligations: 1. The Ministry must propose a Partnership Projects Guide and issue a guide for managing and implementing partnership projects. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 5) 2. The concerned federal agency must propose partnership projects, prepare feasibility studies, determine technical specifications, coordinate with the Ministry, support the project team, supervise project implementation, and submit periodic reports. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 6) 3. The project team must coordinate and manage the bidding procedures, prepare the initial budget, bidding documents, and project agreement, and ensure transparency and fair competition. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 7) 4. The federal agency or private sector must follow the specified procedures when proposing a partnership project. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 9-10)
What licensing, registration, or approval requirements exist?
The legislation does not specify any licensing, registration, or approval requirements for partnership projects.
What rights and protections does this law provide?
The law does not explicitly outline any specific rights or protections granted to individuals, workers, businesses, or other parties under this legislation.
Which authorities or bodies are responsible for enforcement?
The key authorities and bodies responsible under this law are: 1. The Ministry of Finance, which has various duties including proposing the Partnership Projects Guide, issuing implementation guidance, providing assistance to federal agencies, evaluating proposals, and measuring project success. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 5) 2. The concerned federal agency, which is responsible for proposing projects, preparing feasibility studies, coordinating with the Ministry, supervising implementation, and submitting reports. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 6) 3. The project team, which manages the bidding procedures, prepares documents, and ensures transparency and fair competition. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 7) 4. The Grievance Committee, which is formed by the Minister to hear appeals against tender procedures. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 20)
What are the penalties for non-compliance?
The legislation does not specify any penalties for non-compliance with the provisions of this law.
What fees, charges, or financial provisions are specified?
The law states that the concerned federal agency can propose fees for services related to the partnership project. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 6) However, it does not provide any details on specific fee amounts or other financial provisions.
What exemptions or exceptions apply?
The law provides the following exemptions from its scope: 1. Partnership contracts concluded before the law's effective date, as long as they do not conflict with Article 32. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 4) 2. Outsourcing of services specified in the Partnership Projects Guide. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 4) 3. Projects with a value less than the financial limit in the Partnership Projects Guide. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 4) 4. Projects to privatize public assets and services. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 4) 5. Supply and procurement contracts related to national security, as identified in the Partnership Projects Guide. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 4) 6. Federal agencies, sectors, and projects excluded by a Cabinet resolution. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 4)
How are disputes resolved under this law?
The legislation states that the Partnership Projects Guide will specify the dispute settlement mechanism for partnership projects. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Art. 31) However, the source text does not provide any further details on the dispute resolution process.
What are the key deadlines and time limits?
The legislation does not specify any deadlines or time limits for the implementation of partnership projects or related procedures.
How does this law interact with other UAE legislation?
The law references the following related UAE legislation: 1. Federal Law No. (1) of 1972 Concerning the Jurisdictions of Ministries and Powers of Ministers, as amended. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Preamble) 2. Federal Law No. (5) of 1985 Promulgating the Civil Transactions Law, as amended. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Preamble) 3. Federal Law by Decree No. (15) of 2018 Concerning the Collection of Public Revenues and Funds. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Preamble) 4. Federal Decree by Law No. (16) of 2018 concerning the Federal Government Union Owned Properties. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Preamble) 5. Federal Decree-Law No. (26) of 2019 Concerning Public Finance, as amended. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Preamble) 6. Federal Law by Decree No. (32) of 2021 Concerning Commercial Companies. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Preamble)
When did this law come into effect?
This Federal Law on Regulating the Federal Public-Private Partnerships (PPP) was issued on 27 November 2023 and came into effect on 1 December 2023. (Federal Law on Regulating the Federal Public-Private Partnerships (PPP), 2023, Issued Date and Effective Date)
Source Documents
This article analyses Federal Law on Regulating the Federal Public-Private Partnerships (PPP) for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.