How the PPP model will shape smarter cities

As we plan for life in a post-COVID-19 world, the pace of digital transformation must increase. Our cities need to be smart, sustainable and more agile in order to meet future challenges. This will require two things: substantial investment and an innovative mindset. For this, I believe the Public-Private Partnership (PPP) model will be crucial.

PPP models have been around for more than 200 years, initially used extensively during early infrastructure projects in the US, but its popularity worldwide has flowed depending on multiple factors such as public opinion, government policy and market liquidity.

In the context of smart cities through the adoption of AI initiatives, the PPP model is the way to go. This is because such solutions must be considered and implemented on a large scale. AI systems require active engagement with the masses to collect sufficient data with high variety. This data could then suggest solutions that positively impact people’s behaviours or lifestyles. Higher public participation, where people feel they have ownership of the initiative, will also dramatically improve the transition process towards smart cities.

It will be very challenging for a small group of private players to get enough coverage to make them effective, whereas governments are designed to solve big problems. The downside is that governments around the world – with the exception of some – are not known to drive innovation as their primary function is to minimize risk. Private players, who have more appetite for risk and experimentation, can inject the right amount of innovation into problem-solving.

Many success stories substantiate the PPP model for smart cities. AI Singapore, initiated by government agencies and academic institutions, is engaging extensive public participation as part of its grand challenges. Sidewalk Labs in Toronto is operating the PPP model with Google’s parent company Alphabet to provide AI capabilities. Hitachi has created a data platform and analytics engine, City Data Exchange, with Copenhagen with the goal of making it the first carbon-neutral city by 2025. The exchange’s public and private data allows multiple companies to innovate new solutions.

And one of the successful case studies is much closer to home. Our organisation, Bee’ah, was initiated as a PPP by Sharjah City Municipality, as a rare example in waste management. This is historically a traditional sector that has hardly evolved but since 2007, Bee’ah has been a pioneer in the industry. We are one of the few waste management companies to use AI for improving operations, and have already achieved the region’s highest waste diversion from landfills, at more than 76 percent. This figure will reach 100 percent by 2021 when we launch our innovative waste-to-energy plant in Sharjah. Our scope of digital solutions includes launching a sustainable transport company, ION and digital arm, EVOTEQ. And our new Headquarters will the region’s first AI-integrated office of the future when it opens later this year.

The result is that waste management, which was once a burden on public revenues, has been converted into a profit-generating enterprise that is driving innovation and benefitting both the public and environment. Based on our success in the UAE, we are now expanding throughout the region, having expanded to Saudi Arabia and recently winning the tender to develop the entire waste management infrastructure for the new Administrative Capital in Egypt where millions will live.  

These are the very partnerships that will help us meet our next great challenge in digital transformation.