Celebrating 10-years of collaboration, the Financial Times and Oliver Wyman are pleased to partner once again on the 2019 Strategic Forum. This annual event will bring together senior executives, investors, officials from public sector agencies and governments to share best practice on strategies for bridging the infrastructure gap in the GCC and building a new framework for public-private sector collaboration. Hosted under the Chatham House Rule, the format will encourage candid discussion amongst key stakeholders to help to facilitate the next generation of transformative PPPs in the region.
Increased infrastructure investment is critical in the region if the GCC states are to meet the rising demands of urban populations and achieve their ambitious plans for economic growth. But unstable oil prices have created a funding deficit which threatens to cause delays to and even cancellations of these important projects. According to a recent report from Oliver Wyman, the pipeline of infrastructure investment over the next five years is planned to be over 1.5 trillion US dollars; so far, the government is contributing about 300 billion US dollars. Even with state owned enterprises and sovereign wealth funds included, the region has a huge deficit. Undoubtedly there is competition for investment, and only those governments best prepared will receive investment.
The potential benefits of Public-Private Sector Partnerships (PPPs) are clear. From a government point of view, new contracting models are lessening financial burdens and increasing the availability of capital to spend elsewhere. On the financing side, new partnerships are providing unique and potentially lucrative opportunities for investors and developers to play a critical role in future infrastructure. But to deliver value for both sides, stakeholders must better align their strategic intent, be willing to take a different approach to risk sharing and collaborate on new kinds of partnerships. What new economic and social benefits can inventive approaches to PPPs bring? How can the next generation of PPPs help the GCC build diversified, innovative and robust economies?
BREAKFAST AND REGISTRATION
CHAIR’S OPENING REMARKS
Oliver Wyman Welcome
Keynote Address: Exploring New Opportunities in the GCC
While the infrastructure funding deficit in the GCC is widely acknowledged, the true size of the gap is often unclear. What is the extent of the shortcoming and what challenges are there in bridging this? How can establishing new, robust frameworks for PPPs in the region enable GCC states to better achieve their national strategic ambitions and what social and economic benefits can a new approach to building world-class infrastructure bring?
o What new opportunities are there for investors and developers in the region?
o How can governments inspire investor confidence through clarity, transparency and greater commitment to long-term PPPs?
o How can key stakeholders find opportunity in uncertainty?
PANEL DISCUSSION 1: Sharing Risk and Reward
To create long-term value, aligning the expectations of all key stakeholders and subcontractors is essential. How can better collaboration between public and private sector stakeholders bring shared rewards?
o How can investors demonstrate their suitability for key projects in a competitive tendering landscape?
o What new regulatory and legislative framework is required to attract investment?
o What do investors value?
o How can governments and investors alike identify and evaluate the most suitable form of PPP to embark on? What are the merits and limitations of each model?
Innovative Infrastructure PPPs – Lessons Learned
These leading infrastructure case studies will showcase the potential economic and social benefits of leveraging private sector capital for future infrastructure. Through using innovative risk sharing agreements and new funding models, these two examples will highlight how PPPs can be used to mitigate risk and improve the efficiency of large-scale infrastructure projects. How can the lessons learnt inspire further investment in the region? How can stakeholders ensure the pipeline is managed efficiently?
1. Regional Case Study
2. International Case Study
CLOSING KEYNOTE: Using PPPs to Support Innovation-Led Economies
New ways of investing in infrastructure are essential if the region is to build diverse, innovation-led economies. What role can PPPs play in supporting states achieve their ambitious digitisation agendas? How can new PPPs accelerate the use of new technologies in future infrastructure projects? How can governments ensure investment is sustainable?
Oliver Wyman Close