The Board of Directors at the Saudi National Center for Privatization and PPP (NCP) has approved the Private Sector Participation (PSP) Law Implementing Regulations.
The Implementing Regulations, which were set 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 of the PSP will supervise the processes and progress of implementing the PSP projects. Further, it covers the detailed provisions required to implement the PSP Law, and the detailed framework governing the entities involved in PSP projects.
Moreover, the Implementing Regulations define the regulatory standards for PSP Projects studies and preparation of the Project Business Case which is the key element for the government’s decision to approve the project.
Additionally, the regulations of the PSP Law indicate the requirements of the tendering process to ensure real competition, protect public interest and integrity, and preserve fairness in awarding procedures.
Furthermore, it introduces provisions that ensure all participants are dealt with fairly and avoid any conflict of interest.
With the approval of the Implementing Regulations, a new supporting pillar has been added to the PSP regulatory ecosystem that will increase the number of projects, boost procedures and processes, and limit risks.
It will also call investors to increase their participation in economic development and raise the private sector’s contribution to GDP, consequently achieving the kingdom Vision 2030 goals of privatizing state-owned assets and selected government services.
Implementing the projects will be accomplished while considering the principles of fairness, transparency, contract enforcement, planning, and feasibility.