$13.33mln set as minimum project value of public assets meant for privatization: Saudi law
The minimum project value of public assets that are meant for privatization has been set at SR50 million, according to the executive regulations of the Privatization Law. The regulations stipulate that the minimum value of public and private partnership project is SR200 million.
Okaz/Saudi Gazette has learned from the regulations that all the key posts that are created following the privatization of government projects shall be set aside for Saudis.
The estimated minimum value of the privatization project shall be calculated by the executive authority in charge of the assets, while the minimum value of the public-private partnership project shall be estimated by the executive authority based on the total expected nominal value during the period of the project, after calculating capital and operating expenditures, potential financial obligations on the state’s public treasury, in addition to the financial revenues expected to be obtained by the government.
The provisions of the Privatization Law and its executive regulations will apply to privatization of projects that are offered or contracted by companies established by the government, or owned by government directly or indirectly, more than 50 percent capital of companies that are created for the purpose of offering for privatization.
The proposed project shall be one of the requirements of the goals of the Kingdom’s Vision 2030 and contributes to achieving them.
The regulations stipulate that the members of the Steering Committee for Privatization shall be Saudis. Senior positions with the rank of not less than 14 or its equivalent shall be occupied by Saudis.
Similarly, members of the working team shall also be qualified Saudi nationals. Those Saudis who are holding leadership positions of the working teams shall have five years of experience while other members are required to have at least three years of experience with fluency in Arabic and English.
The regulations prevent private parties from following any restrictive practices in the provision of works and services to the beneficiaries of the services or goods related to the project designated for privatization.
