Bahrain’s Public Private Partnerships: Promises, Problems and Prospects

Robert Lee, CEO of Bahrain Bay talks about the progress of the PPP schemes in Bahrain. Lee argues that the PPP are easier said than done. He sees the biggest challenge in the sharing of risk.

He says; “I actually see a huge issue developing in the next while because some will be reluctant to take on the risks that the private industry bears and the private industry will be reluctant to take on the risks that government wants to take and that mismatch, I don’t think will allow too many projects to go under PPP. I think it will continue through in the traditional mode – either direct construction, direct let-out, or basically the entire private industry taking over the whole project. With the half and half of PPP, there is much to be discussed.”

“There is quite a bit more regulation that has to become enforced. The banking industry has to come on board. It’s a marriage of parties in an unclear environment which is still reeling from the previous shocks. So I do not see too many PPP projects being announced in this coming year.” Lee continues.