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Rayyan Nagadi, CEO of the National Center for Privatization (NCP)
Rayyan Nagadi, CEO of the National Center for Privatization & PPP (NCP), said in a statement that the private sector participation (PSP) law was developed to increase the private sector contribution to government projects.
The law aims to distribute responsibilities and risks between the government and the private sector, reduce the government's capital budget, organize, supervise and follow up on all the procedures related to PPP and Privatization (PPP&P) projects. It also aims to enhance transparency, fairness and integrity of procedures for tendering PPP&P contracts.
Sultan Al-Qahtani, executive vice president of legal and regulatory affairs at NCP, further added that the drafting of the PSP Law benefited from considering international experience in PPP&P and best practices adopted. The PSP Law will create a governance structure for PPP&P projects that contributes to the implementation of more efficient and effective projects in general, while focusing on high economic impact projects.
The PSP Law will support Vision 2030, contributing to improving spending efficiency, economic diversification, sustainable development and increasing regional and international competitiveness. It will also create new jobs for citizens.
Al-Qahtani pointed out that the objectives of the law include expanding the number of PPP&P projects implemented in the Kingdom, stimulating the private sector and creating an investment environment that enables local and international investors to participate in available opportunities. It also aims to raise the efficiency of assets related to privatization projects and improve their management.
The law takes into account the PPP&P projects from the perspective of the private sector and investors and provides a wide range of regulatory controls to enhance investor confidence in the PPP&P process, strengthen the enforcement of PPP&P contracts and ensure that the state will meet financial obligations arising from PPP&P contracts.
In addition, the PSP Law addresses a number of specific challenges that PPP&P projects face in the Kingdom. It provides a framework for the public sector to participate directly in a project company while protecting the rights of the private partners. On the social front, the law will contribute to improving public services to citizens and residents and ensures that the social impacts of PPP&P projects are understood before proceeding with the implementation.
According to the data available with Argaam, the Saudi Cabinet, in a meeting chaired by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud today, March 17, approved the private sector participation law.
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