The Committee has the right to unilaterally terminate the PPP contract and/or the affiliate contract before the expiration of its term in the event of bankruptcy or liquidation of the private party, and if the public interest so requires.

The Committee has the right to terminate the PPP contract and/or the affiliate contract unilaterally before the expiration of its term. The partnership is also dissolved if the private party fails to fulfill its substantive contractual obligations, or fails to achieve the agreed quality level, after being notified in writing of this breach, and fails to correct the situation within the period specified in the notification, or in any other cases specified in the contract.

Composition and Tasks of the Committee

According to the law, one or more committees shall be formed by a decision of the Board of Directors of the National Center for Privatization, whose number shall not be less than (five), including (two) with legal qualifications, and this committee shall be reconstituted every (three) years, and its membership may be renewed, and the decision shall specify the committee chairman and his deputy, the remuneration of its members and its secretary.

The committee shall consider the grievances submitted against the procedures for issuing allocation and awarding projects, and shall issue its decision on the acceptance of the grievance, its validity, and the compensation due to the objector, or its rejection and its invalidity.

Grievance submission within 10 days

<The grievance must be submitted to the Committee within ten working days from the date of the grieved action, accompanied by a bank guarantee in favor of the Center, issued by a bank licensed to operate in the Kingdom, irrevocable and unconditional. In all cases, the value of the guarantee must not be less than one million riyals and not more than five million riyals.

The submission and consideration of the grievance shall not result in the suspension of the procedures for submitting and awarding the allocation project, and the executive authority shall inform the competent authority of this grievance before the award, and the competent authority may decide what it deems appropriate.

Procedures for accepting or rejecting the grievance

<If the Committee's decision to accept and validate the grievance is issued before the contract is signed, the executive authority must correct the irregular procedures, if possible. Otherwise, the procedures for launching the allocation project shall be canceled. If the grievance is accepted after the signing of the contract, the decision shall determine the compensation due to the grievant and the return of the bank guarantee to him. If the committee's decision rejects the grievance as invalid, the decision must include the confiscation of the entire value of the bank guarantee provided by the grievant, or part of it, as determined by the committee, and shall be deposited in the general treasury of the state."

Objectives of Privatization Projects

According to the law, privatization projects aim to help achieve the strategic objectives of government entities, rationalize public spending, increase state revenues, raise the efficiency of the national economy, and increase its competitiveness to face regional and international challenges and competition related to privatization projects.

The objectives also include raising the level of comprehensiveness and quality of services and providing them at the right time and cost, raising the efficiency of assets related to privatization projects, improving their management level, and working to equip or restructure sectors, agencies, assets and public services to be privatized.

Expanding citizen ownership of assets

This is in addition to incentivizing the local and foreign private sector to invest and actively participate in the national economy through projects that achieve developmental feasibility for the government and economic feasibility for the public and private sectors, and increase the private sector's share in GDP to achieve growth in the national economy.

It also includes working to expand the participation of citizens in the ownership of government assets, increase employment opportunities and optimize the employment of the national labor force.

Putting the customized project out to tender

The law clarifies that the project is offered through a public competition, and may be offered through a limited competition, direct contracting, or other appropriate means of offering, depending on the nature of the project.

The Board of Directors of the Center shall determine, through the executive regulations, the provisions governing each means of offering, the rules, controls and procedures, the necessary periods, and the consequences of violating any of those provisions.

The system clarifies that the project shall be offered through public competition, and may be offered through limited competition, direct contracting, or other appropriate means depending on the nature of the project. <The executive authority may, at any time before the signing of the contract, cancel the offering of the allocation project, after the approval of the competent authority when it deems it to be in the public interest. In this case, none of the competitors shall be entitled to any compensation unless the Board of Directors of the Center decides otherwise based on the recommendation of the Executive Authority.

Contracts with private companies only

The law stipulates that contracts subject to the provisions of the law shall be concluded in the name of the government, and the executive body shall be considered a representative of the government in everything related to the contract and any dependent contract, unless the decision to approve the signing of the contract or dependent contract stipulates otherwise.

No contract shall be entered into under the provisions of the Law except with a private party, and no public legal entity may contract with the government as a private party.

The Law indicates that contracts subject to the provisions of the Law shall be entered into in the name of the government. No government entity may enter into a privatization contract without obtaining the approval of the competent authority, and any contract entered into in violation of this shall be null and void, unless authorized by the competent authority.

Any contract entered into in violation of this shall be null and void unless authorized by the competent authority.

Losses do not require a capital increase

<If the losses of the allocation project company reach the limit prescribed by the regulations at any time during the contract period, this does not entail that its capital must be increased, reduced, dissolved, or considered lapsed by force of law, and the executive authority - after coordination with the allocation project company - shall submit its proposals to the Council to take whatever action it deems necessary regarding the continuation of the allocation project company. If the project company does not regularize its conditions in accordance with the Council's decision to continue it within the deadline specified therein, it shall be subject to the provisions of the regulations.