Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

IMF urges Qatar to strengthen public investment efficiency  Join our daily free Newsletter

MENAFN - The Peninsula - 07/05/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - The Peninsula) Qatar needs to strengthen its fiscal institutions, particularly with an integrated public investment management process, for improving its public investment efficiency. This integrated management process system is very essential for the country to reduce costs and contain the risk of significant cost escalation associated with public infrastructure projects in Qatar, IMF noted in its Qatar Country Report yesterday.

Public infrastructure projects in Qatar often suffered delays and rising costs in the past. In particular, high levels of public investment have been usually associated with significant rise in construction prices in Qatar. Considering Qatar's high concentration of large infrastructure projects in the coming years, the authorities should carefully manage the investment pipeline through an integrated investment management process, the Fund noted in its report released after holding discussions with the country's key policy leaders.

After assessing efficiency of public investment, trends in public capital spending, the Fund said, while comparing to its GCC peers, the efficiency of Qatar's public investment appears to be lagging behind resource-rich advanced economies.

Commenting on the metro rail project, one of the big-ticket projects of Qatar, the report said the construction costs are subject to the risk of cost overruns, though appears relatively low at the moment.

"The per-kilometre cost estimates of metro construction projects based on contract values show that Qatar compares favourably to its neighbouring countries. Nevertheless, the substantial cross country variation in these cost estimates, even within the GCC, could reflect large uncertainty in the final costs of the metro projects and suggest the risk of substantial cost escalation. The experience of Dubai provides a cautionary tale, with final costs exceeding the contracted spending by 75 percent," IMF said.

The Fund observed that Metro projects seem more expensive in Qatar when adjusting for its labour costs, although the final costs estimates in Qatar still appear reasonable compared to selected global benchmarks. The final costs of metro projects are estimated using the assumption of a 65 percent cost over-run as per international construction price index. The final cost estimate is slightly higher than the average cost in the Asia and Latin American region, but is lower than the cost in the US and Europe. Once the low-wage costs are taken into account, Qatar still compares favourably to its Mena peers, although it appears more expensive than the US. However, an important qualifier to the comparison with the US is that this calculation does not control for the different costs of raw materials that Qatar must import from foreign countries at an additional expense.

The construction costs calculated on large-scale road projects appear expensive in Qatar, compared with other countries in the region. The per kilometre per lane cost estimates of road construction projects in Qatar range from 0.7m to 7.4m. In contrast, the cost estimate per kilometre per lane is around 1.5m in Oman, and less than 1m for projects in other countries in the region.

The high construction costs could reflect a number of factors, including land values, quality and technical complexities, which are not captured in these estimates due to data limitations.

 


The Peninsula




  MENA News Headlines
 Jan 30 2015 - test from diaaAdvanced Currecy Markets [ACM]
(MENAFN - Advanced Currecy Markets [ACM]) ...

 Jan 29 2015 - HH the Emir Receives Phone Call from Ban Ki-moonQatar News Agency
(MENAFN - QNA) HH the Emir Sheikh Tamim bin Hamad Al-Thani on Thursday received a phone call from the United Nations Secretary-General, Ban Ki-moon, during which he thanked HH the Emir on the ...

 Jan 29 2015 - Consumer spends on pharma products to increase to Dh5.03b by 2020Khaleej Times
(MENAFN - Khaleej Times) Dubai € Consumer expenditure on pharmaceutical products, medical appliances and equipment in the UAE has experienced a strong increase and is forecast to be valued around ...

 Jan 29 2015 - UAE- Time to put cyber security on top priorityKhaleej Times
(MENAFN - Khaleej Times) Kaspersky lab solutions block millions of attacks across the globe, which clearly indicates that cyber criminals are smart, but not smarter than security providers.This was ...

 Jan 29 2015 - Indian business council honours Emirati businessmenKhaleej Times
(MENAFN - Khaleej Times) Dubai - The Indian Business and Professional Council (IBPC) hosted a reception on the occasion of the 66th Republic Day of India at the Oberoi Hotel, Business Bay, on Sunday. ...

 Jan 29 2015 - UAE, Canada discuss ways to boost tradeKhaleej Times
(MENAFN - Khaleej Times) Abu Dhabi - Abdullah Al Saleh, Undersecretary of the Ministry of Economy for Foreign Trade, received a Canadian delegation led by Martin Zablocki, CEO of the Canadian ...

 Jan 29 2015 - Emirates NBD facilitates Stanbic in $85 million loan facilityKhaleej Times
(MENAFN - Khaleej Times) Al Ahli Bank of Kuwait and Standard Chartered Bank joined the transaction as mandated lead arrangers while Al Khalij Commercial Bank and The Commercial Bank of Qatar ...

 Jan 29 2015 - NBAD profit jumps 28% in 2014Khaleej Times
(MENAFN - Khaleej Times) Abu Dhabi - A strong growth in incomes from interest and non-interest based revenues bolstered the National Bank of Abu Dhabi (NBAD) profits to Dh1.372 billion in the quarter ...

 Jan 29 2015 - UAE pharma spend to hit Dh5 billion by 2020Khaleej Times
(MENAFN - Khaleej Times) It is also forecasted to increase at a compound annual growth rate (CAGR) of about 9.78 per cent from 2014 to 2020 as, by then, the value of consumer expenditure on ...

 Jan 29 2015 - Parents happy with children's educationKhaleej Times
(MENAFN - Khaleej Times) Abu Dhabi: A survey by the Abu Dhabi Education Council (Adec) has revealed that parents across the emirate are satisfied with their children's schools. The education ...

more...


 






Google

Internatinal Property Show

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help