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 27 2015 - Oil prices to begin rebounding soonMENAFN
(MENAFN) OPEC said that it expects that oil prices have reached the bottom and that they will begin rebounding soon, Arab News reported."Now the prices are around $45-$55 and I think maybe they ...

 Jan 27 2015 - 'Qatar proves capacity to stage mega events'The Peninsula
(MENAFN - The Peninsula) The Qatar 2015 Organising Committee has received overwhelmingly positive feedback from participating delegations at the 24th Men's Handball World Championship, as the ...

 Jan 27 2015 - Qatar- We want to make history, says MaheThe Peninsula
(MENAFN - The Peninsula) Handball has always been in the centre of the Mahe family's life: Pascal Mahe was a successful player, later coach, so it was obvious that his son Kentin would fill his ...

 Jan 27 2015 - Qatar- Iran taste first major victory in handball with Chile scalpThe Peninsula
(MENAFN - The Peninsula) Iran claimed their first ever win at the global stage at handball when they edged out Chile in a close contest of the President's Cup yesterday. The first President's Cup ...

 Jan 27 2015 - Qatar- Germany, France cruise into quarters at WorldsThe Peninsula
(MENAFN - The Peninsula) A strong German side, who only qualified for the men's World Handball championships via a wildcard, set up a mouthwatering quarter-final clash with hosts Qatar after powering ...

 Jan 27 2015 - Qatar- Masraf Al Rayan posts QR2bn net profitThe Peninsula
(MENAFN - The Peninsula) Masraf Al Rayan recorded a solid net profit of QR2bn for the full-year 2014, reflecting a 17.6 percent increase compared to 2013. The bank's board recommended a dividend ...

 Jan 27 2015 - Qatar may build 2nd LNG terminal in ItalyThe Peninsula
(MENAFN - The Peninsula) Italy and Qatar are working to further deepening the bilateral economic ties. Both the countries are planning to build their second LNG receiving terminal in Italy to enhance ...

 Jan 27 2015 - Qatar- GDI signs deal with GLB for liftboat servicesThe Peninsula
(MENAFN - The Peninsula) Gulf Drilling International Limited (GDI), a subsidiary of Gulf International Services (GIS), the largest oilfield service company in Qatar, signed a contract with Gulf ...

 Jan 27 2015 - International Islamic wins Best Bank in Qatar AwardThe Peninsula
(MENAFN - The Peninsula) International Islamic (QIIB) won Citibank New York's "Best Bank in Qatar Award" for its excellence in 'Straight Through Processing' (STP) operations. This is the fourth time ...

 Jan 27 2015 - Libya deputy minister freed after brief kidnappingThe Peninsula
(MENAFN - The Peninsula) A Libyan deputy foreign minister was released Monday, a day after his kidnapping by gunmen in the eastern city of Al-Baida where the recognised government is based, his ...

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

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