Saudi National Center for Privatization and PPP (NCP) Board of Directors has approved the Private Sector Participation (PSP) Law Implementing Regulations.
The Implementing Regulations, which were developed according to international practices and local experiences, replace the Privatization Projects Manual and the rules of conduct of the supervisory committees of privatization targeted sectors.
The regulations will oversee PSP projects processes and the progress of implementing them. Also, it includes the detailed provisions required to implement the PSP Law, and the detailed framework governing the entities involved in PSP projects.
The principles that will be considered while implementing the projects include fairness, transparency, contract enforcement, planning and feasibility. Moreover, the Implementing Regulations set the regulatory standards for PSP Projects studies and preparation of the Project Business Case that forms a cornerstone for the government’s decision to approve the project.
In addition, the regulations of the PSP Law outline the requirements of the tendering process ensuring real competition and protects public interestand integrity and fairness in awarding procedures. Also, it provides provisions that ensure all participants are dealt fairly and avoid any conflict of interest.
With the approval of the Implementing Regulations, a main supporting pillar has been added to the PSP regulatory ecosystem that will increase the number of projects, speed up procedures and processes, and limit risks.
It will also encourage investors to increase their participation in economic development and raise the private sector’s contribution to GDP, thus achieving the Saudi Vision 2030 goals of privatizing state-owned assets and selected government services.
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