Logo design of National Center for Privatization & & PPP (NCP)
Saudi Arabia’s main gazette Umm Al-Qura released on Feb. 2 the executive guidelines of the privatization law, as modified by the board of the National Center for Privatization & & PPP (NCP) on Dec. 31, 2023.
Short article 3 of the policies defines the minimum worth of the privatization job. It sets the minimum worth for the transfer of property ownership task at SAR 50 million, based upon the approximated worth identified by the executive entity for the target possessions.
It likewise states that the minimum limitation for a public-private collaboration task stands at SAR 200 million. The limitation is set based upon the overall small worth anticipated throughout the job duration, as approximated by the proficient executive entity after thinking about each of the list below aspects, and guaranteeing that the minimum is satisfied in any of them:
(A) The capital and functional expenses, consisting of government-owned possessions for which the economic sector is approved any rights (consisting of ownership transfer), if suitable;
(B) The possible monetary commitments developing for the state treasury;
(C) The anticipated monetary earnings that the federal government will get.
According to Article 3, the executive entity might integrate numerous jobs of comparable nature in their scope and legal structure to fulfill the defined minimum needed under this post. If the minimum is not fulfilled, and the appropriate authority sees the requirement to continue with the job associated with facilities or civil service, the policies and guidelines associated with that job will use.
The arrangements and guidelines of the law will use to privatization jobs provided or contracted by business developed or owned by the federal government, with a direct or indirect ownership of more than 50% of their capital. The function of developing or owning such business is to use privatization tasks.
A business is considered recognized or owned by the federal government for the function of privatization if it fulfills any of the following requirements:
1) The business is developed with the approval of the appropriate authority based upon the privatization job file for the function of executing the property ownership transfer procedure.
2) The facility or ownership of the business by the federal government is for the function of providing a job associated with facilities or civil services through privatization.
3) Business completely owned by the federal government whose facility consisted of the transfer of property ownership associated to public facilities by the federal government.
On the other hand, Article 5 of the policies specifies that the privatization strategy identifies the list of properties and services proposed for privatization in the sector. It defines the entity accountable for each privatization task. The proficient entity will determine public centersand possessions it handles or monitors, the general public services it supplies, the activities it participates in, and the capital and functional expenses and their products in its spending plan.
This likewise includes its existing and future capital tasks. The entity examines each activity separately to figure out the expediency of designating it to the economic sector through privatization. The examination is based upon different requirements, consisting of the nature of the activity, sector targets, capital investment, quality and effectiveness, expense, management performance, operations, moneying expediency, and previous experience.