Quotes: US 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.

 






  MENA News Headlines
 Jul 26 2014 - TAQA quits USD1.6b power plant deal with IndiaMENAFN
(MENAFN) Abu Dhabi National Energy (TAQA) backs off of a USD1.6 billion deal to buy two hydroelectric power plants from Indian Jaiprakash Power Ventures, Gulf Daily News reported.TAQA told Jaiprakash ...

 Jul 26 2014 - Dubai's Aramex profit up 12 percent in Q2MENAFN
(MENAFN) Dubai logistics firm Aramex reported a 12 percent rise in second-quarter net profit, driven by growing revenue in its core Gulf market, Gulf Daily News reported.According to a bourse filing, ...

 Jul 26 2014 - Qatar's Barwa second-quarter losses hit USD11.8mMENAFN
(MENAFN) Barwa Real Estate, Qatar's largest listed property developer, has registered an USD11.8 million net loss in the second quarter, Gulf Daily News reported.The second-quarter drop was compared ...

 Jul 26 2014 - KOC signs three USD2.34b worth contractsMENAFN
(MENAFN) The Kuwait Oil Company (KOC) signed contracts worth USD2.34 billion to build three collection centers in the company's areas of operations, QNA reported.KOC's first contract, worth USD685 ...

 Jul 26 2014 - McDonald's Japan halts sales of Chinese chicken after scandalArab News
(MENAFN - Arab News) KYO: McDonald's said Friday that its restaurants in Japan had stopped selling products made with chicken from China in a marked widening of a scandal that saw expired meat sold ...

 Jul 26 2014 - Two soldiers two cops die in Pakistan attacksArab News
(MENAFN - Arab News) LAMABAD: A bomb killed at least two Pakistani soldiers in the country's northwestern tribal district where the army is carrying out a major offensive against Taleban militants ...

 Jul 26 2014 - EU reaches preliminary deal on Russia economic sanctionsArab News
(MENAFN - Arab News) USSELS: European Union ambassadors reached a preliminary agreement on Friday to push ahead with hard-hitting economic sanctions against Russia over the Ukraine crisis but details ...

 Jul 26 2014 - West Africa Ebola death toll reaches 660: WHOArab News
(MENAFN - Arab News) NEVA:The death toll in West Africa's Ebola outbreak has risen to 660 with the number of cases surpassing 1000 the World Health Organization said Friday.WHO spokesman Paul Garwood ...

 Jul 26 2014 - WHO seeks humanitarian corridor to evacuate victims of Zionist barbarityArab News
(MENAFN - Arab News) NEVA: The World Health Organization (WHO) called on Friday for a humanitarian corridor to be set up in Gaza to allow aid workers to evacuate the wounded and bring in life-saving ...

 Jul 26 2014 - US dolls were meant to spread cheer not chillArab News
(MENAFN - Arab News) N CLEMENTE California: They sent a creepy feeling through several Southern California families but authorities say the person who left porcelain dolls on doorsteps didn't mean ...

more...


 






Google

Click to Apply

 
 

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

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

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
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

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


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help