The National Center: 116 privatization initiatives … and 17 billion riyals as budget savings

The National Center for Privatization revealed achieving revenues of 20 billion riyals and budget savings of 17 billion riyals in the previous period, and indicated that the number of initiatives currently under preparation amounted to 116 initiatives, while 5 initiatives were proposed, pointing to the award of 16 projects and approval of 52 other projects. According to the center, 1806 companies were registered in the marketing database, 690 Saudi companies, while the supervisory committees issued 287 decisions and recommendations regarding the programs. He pointed out that the sectors targeted for privatization are energy, the labor sector, social development, education, municipalities, health, public transport, housing, Hajj and Umrah, the interior, industry, mineral wealth, media, finance, communications and information technology, stressing the importance of the partnership between the public and private sectors in order to serve the national economy, establish giant entities and increase the private sector’s contribution. The report referred to several forms of partnership between the two sectors, the most prominent of which is concession contracts, in which the private sector bears operational risks while the ownership of assets remains for the public sector, and the second type is partnership contracts between the two sectors in which the contract usually extends. For a period of 25 to 30 years according to the building, operation, ownership and operation model, while the third type is the joint ventures, to establish a new entity according to the shares and bear the burdens and risks according to the share of each party, and the fourth type is the sale of assets to the private sector in order to bear in this case the operational risks and this extends For life. Upcoming initiatives focus on operating independent water stations in Jubail, Rabigh, Tabuk, Shuqiq and Jazan, drainage stations in Buraida, Tabuk, Madinah, Khamis Mushait, South Najran and South Jeddah, home care, elderly care, medical laboratory services, public transport networks in Makkah, Madinah, Jeddah and Dammam, X-ray equipment in customs and services Laboratories in the Food and Drug General Authority. The report reviewed the benefits of privatization, especially with regard to enhancing economic growth, increasing the effectiveness of untapped sectors and services, and providing more job opportunities for the people of the country.

The report touched on the achievements made within the framework of the privatization program, including the expansion of the second cargo service station at King Khalid International Airport, the establishment of a Yanbu 4 independent water desalination plant, the signing of the concession contract for the container terminal at King Abdulaziz International Port, the sale of all shares in the first and second mill companies, and the expansion of a hospital. Al-Ansar and the establishment of housing for the King Faisal Specialist Hospital, and attracting private investments to finance the construction of government buildings and allocate production assets in the General Corporation for Water Desalination, as the achievements included the construction of a sewage treatment plant in Madinah, Tabuk and Buraidah, and the construction and management of parking lots.

Concession contracts for ports and offering the second phase for restaurants and schools projects

Engineer Rayan Naqadi, CEO of the National Center for Privatization, said that the current year will witness the launch of the second phase of the allocation of restaurants, schools, hospitals and health centers, and the introduction of concession contracts for ports. Subtraction and even awarding. He added that the system will clearly empower government agencies to accelerate the participation of the private sector in their projects, without dispensing with the necessary studies to put in place an appropriate structure to attract investors and banks, and stressed the acceleration of the study phase, and the shortening of the process of project preparation and approval.

He indicated that the system focuses heavily on water, education, health and transportation projects, in addition to other projects in various sectors, noting that the current year witnessed the launch of the second phase of restaurant allocation, during which concession contracts will be offered for ports, and the second phase of schools, hospitals and health centers. He pointed out that there is great interest from foreign investors in various sectors such as water and transportation at the present time, expecting that the coming period will witness a great turnout by government agencies and investors of all kinds.

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