- Establishes Supervisory Committees to work in tandem with NCP, echoing Vision 2030 directive to increase transparency, accountability, competitiveness and economic growth in the Kingdom
- Both bodies have a mandate to ensure effective governance and facilitate the efficient transfer of state assets to the private sector
RIYADH, Saudi Arabia, Aug. 2, 2017 /PRNewswire/ -- The National Center for Privatization & PPP (NCP), the newly formed agency created to empower Saudi Arabia's private sector, alongside the Supervisory Committees (SCs) established to manage each privatization sector, today set out the blueprint to ensure the efficient and strategic transfer of the Kingdom's government assets to the private sector.
The Council of Ministers announced the establishment of the SCs yesterday, and these were given a definitive mandate to function as executive facilitators for multiple sectors which are to be privatized over the next 10 years.
The sectors included in the Vision 2030 under the Privatization Program are: Environment, Water and Agriculture; Transport; Energy, Industry & Mineral Resources; Labor & Social Development; Housing; Education; Health; Municipalities, Telecommunication and Information Technology and Hajj & Umrah sectors.
The role of each committee is to assess the technical, financial, legal and regulatory landscape and to establish a best practice blueprint for the privatization of the targeted entities. The Ministry of Finance, a permanent member in all the SCs, will also play a crucial role in the privatization process.
NCP will serve as a permanent member of all SCs, providing strategic guidance and support as the committees move to enhance Saudi Arabia's economy by recruiting private sector participation through asset privatization and the formation of new public-private partnerships.
It is anticipated that the privatization process will increase the private sector's contribution to national GDP from 40 to 65 percent.
NCP and the SCs are the first entities of their kind in the MENA region. They have been established to meet the core objectives of the privatization effort: improving the efficiency and competitiveness of the national economy, thereby boosting the quality of life for the Saudi people through stimulation of the private sector, improving the overall business environment, increasing job opportunities for Saudi nationals, reinvigorating the Kingdom's rich mineral resources sector, developing renewable energy capacity, investing in workforce and education development and diversifying the economy.
The first step in this process is to establish a world-class center of excellence to facilitate and regulate the sale of state assets and entities.
"NCP has adopted a wide-ranging governance policy that will enable government agencies and hold each accountable as we move forward with stimulating private investment and privatization," said Turki A. Al Hokail, CEO of the NCP.
NCP will formulate regulations, create privatization frameworks and prepare robust processes that will serve as a blueprint for agencies and entities to follow that will ensure the efficient sale of Saudi assets and to drive the privatization process forward.
"We will facilitate the smooth transfer of assets by publishing a blueprint that will deepen communication channels between government agencies, citizens and the private sector locally, regionally & internationally and serve to guide investors and participating agencies and entities through the privatization process.
"NCP was established with the purpose of setting policies, strategies, programs, bylaws, plans and tools to achieve the privatization projects objectives, thus suggesting the sectors and activities that may be privatized. The center will also set necessary standards and frameworks for sectors targeted for privatization, set principles which help the management of privatization-related projects, develop requirements to establish entities where the private sector – from inside and outside the Kingdom – may participate with government entities in the launched privatization projects.
"NCP will work with the sectors targeted for privatization to ensure their technical and financial readiness. The Center will work to assess the readiness of the macro economy of the privatization programs and contribute to managing related risks. It will work with its counterparts to identify key performance indicators related to privatization. In addition, NCP will be contributing to the training and qualification of human capital in the field of privatization to guarantee leveraging their abilities and expertise to achieve development objectives.
"Effective governance means integrating a continuous evolution of improvement to keep pace with the rising accountability and transparency expected of government. NCP will serve as an agile, performance-oriented public organization that will boost performance and increase investment opportunity in the Kingdom."
About the National Center for Privatization & PPP (NCP)
NCP was established through the Council of Ministers Resolution on April 3, 2017 and is responsible for executing the privatization of certain government entities, a priority identified as part of the Saudi Vision 2030. NCP's mission is to enable privatization by providing assistance in formulating regulations, creating privatization frameworks and for preparing government entities that are identified for privatization to ensure quality outcomes. The NCP team includes expertise in the areas of legal, financial, advisory, strategy, risk, marketing and human resources as well as experts in the full spectrum of Public Private Partnerships. NCP is developing the privatization pipeline which includes proposing sectors, government functions and organizations that could either be privatized or improved through a public private partnership or private investment. In addition, NCP is also responsible for developing an efficient privatization process that targeted entities will follow to solicit and engage private sector participation and for promoting those opportunities internationally.
FOR MORE INFORMATION PLEASE CONTACT:
HANI ALSAIGH, NCP – DIRECTOR GENERAL STRATEGIC COMMUNICATION & MARKETING.
M: +966 50 447 6040
SOURCE National Center for Privatization & PPP (NCP)