Definition
A public-private partnership (PPP) is a contractual arrangement between a government entity and a private-sector company to deliver public infrastructure or services. In a typical PPP, the private partner finances, designs, builds, operates, and maintains an asset such as a road, hospital, or power plant while the government retains strategic oversight and regulatory authority. Risks and rewards are shared according to each party’s comparative advantage. Common PPP models include build-operate-transfer, concession agreements, and availability-payment contracts.
Context in Oman
Oman enacted its PPP Law (Royal Decree 52/2019) to create a transparent legal framework for private participation in public projects. The law established a PPP unit within the Ministry of Finance and mandates competitive tendering, value-for-money assessment, and fiscal-risk management. Notable Omani PPPs include independent water and power projects in Barka, Sur, and Sohar, as well as wastewater-treatment concessions in Muscat. The government has identified healthcare, education, and transport as priority sectors for future partnerships.
Connection to Vision 2040
Vision 2040 explicitly calls for expanding PPPs to mobilise private capital and expertise for large-scale infrastructure without straining the public budget. By transferring operational risk to experienced private operators, PPPs improve service quality and project delivery timelines. The strategy also views PPPs as a mechanism to strengthen institutional capacity, promote competition, and involve Omani SMEs in supply chains for major national projects.
Key Facts
Oman’s PPP Law (Royal Decree 52/2019) provides the legal foundation for partnership agreements. The Barka and Sur independent power-water plants were among the earliest GCC PPP projects. Oman’s wastewater sector has attracted over 1 billion OMR in PPP investment. The PPP unit maintains a pipeline of 20-plus projects across health, transport, and municipal services.