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.

 


The Peninsula




  MENA News Headlines
 Oct 20 2014 - HE Prime Minister Inaugurates Milipol Qatar 2014Qatar News Agency
(MENAFN - QNA) Under the auspices of HH the Emir Sheikh Tamim bin Hamad Al-Thani, HE Prime Minister and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa Al-Thani inaugurated the 10th ...

 Oct 20 2014 - HE Prime Minister Meets Commander of Turkey's Aegean ArmyQatar News Agency
(MENAFN - QNA) HE Prime Minister and Minister of Interior and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa Al-Thani met Monday with Commander of Aegean Army General Abdullah Atay and ...

 Oct 20 2014 - HE Prime Minister Meets Iran's Police ChiefQatar News Agency
(MENAFN - QNA) HE Prime Minister and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa Al-Thani met Monday with Chief of Iran's National Police Forces Commander Ismael Ahmadi and the ...

 Oct 20 2014 - Israeli Forces Arrest Four Palestinians from Bethlehem and HebronQatar News Agency
(MENAFN - QNA) Israeli forces arrested early Monday four Palestinians from Bethlehem and Hebron districts, said security sources. Large Israeli troops raided the town of Taqou‘ to the east of ...

 Oct 20 2014 - S. Korea's Int'l Airline Traffic Grows 9.12 in Q3Qatar News Agency
(MENAFN - Qatar News Agency) Seoul October 20 (QNA) - South Korea's international airline traffic rose 9.1% from a year earlier in the third quarter partly on a rise in the number of flights to and ...

 Oct 20 2014 - S. Korea Expects HighLevel Talks with N. KoreaQatar News Agency
(MENAFN - Qatar News Agency) Seoul October 20 (QNA) - South Korea still hopes for the resumption of high-level talks with North Korea late this month despite sharp military tensions and Pyongyang's ...

 Oct 20 2014 - Kuwait- 'Diet exercise role vital'Arab Times
(MENAFN - Arab Times) KUWAIT Oct 19 (KUNA): Kuwait will mark Monday the World Osteoporosis Day with a plethora of activities to raise public awareness about the bone disease. Osteoporosis is a ...

 Oct 20 2014 - Al-Azmi 'wins' shot put silverArab Times
(MENAFN - Arab Times) KUWAIT CITY Oct 19 (KUNA): Saja Al-Azmi clinched Kuwait's first medal at the 2014 Asian Para Games on Sunday a silver medal in the women's F33 shot put. Al-Azmi nabbed silver ...

 Oct 20 2014 - Kuwait- His Highness Amir congratulates Qadsia SC on AFC Cup winArab Times
(MENAFN - Arab Times) KUWAIT CITY Oct 19 (KUNA): His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah sent on Sunday a congratulatory cable to Board Chairman of Qadsia SC Sheikh Khaled Fahad ...

 Oct 20 2014 - Inarritu leaps off the 'ledge'Arab Times
(MENAFN - Arab Times) MORELIA Mexico Oct 19 (Agencies): As Alejandro Gonzalez Inarritu neared his 50th birthday he took stock of his string of acclaimed dark films and decided to do something really ...

more...


 






Google

 
 

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