The Project Management Division of the Saudi Society for Urban Sciences held a specialized evening on project management and its role in national privatization programs, presented by Dr. Faisal Al-Sharif and moderated by Dr. Abdullah Al-Kharmani, with the attendance of a number of specialists and those interested in project management and development in the Kingdom.
The evening began with a discussion of the concept of privatization and its controls, which depend on disclosure, clarity, speed of implementation, and setting timetables. The evening's presenter, Dr. Faisal Al-Sharif, pointed out that privatization processes that proceed slowly are more prone to failure, indicating the need to change the work pattern to achieve the highest possible performance from the privatization program.
Al-Sharif noted that the most important objectives of privatization programs are to provide financial resources for the public sector, alleviate the financial burdens on governments, increase focus on core business activities, and enhance production quality and operational efficiency. He added that the motivations for privatization stem from the losses incurred by the public sector and its perceived responsibility for budget deficits, ballooning public debt, and rising unemployment.
He added that the financial ties to jobs are still an obstacle to the public sector, while privatization is considered a means to advance the production process, continuous improvement, eliminate negativity, and achieve discipline in workplaces. Al-Sharif cited a number of successful privatization models in the Kingdom, including (Saudi Airlines Medical Services, the Jeddah Islamic Port Container Terminal Initiative, and the sale of all shares in the Third Milling Company, etc.).
Al-Sharif spoke about the stages of project contracts that are being implemented in the Kingdom, whose plan includes design, construction, and project management. He noted the most important thing that must be done to manage privatization projects with high efficiency, by appointing project managers to steer the course of privatization programs to make the projects successful and bring them out of crises.
He touched on the concept of project management, which aims to organize and manage resources in a way that enables the project to be completed while respecting its specific content and taking into account the factors of quality, timing, and cost. Therefore, privatization works are considered projects with specific goals and pre-planned outputs, whether it is the sale of assets or participation from the private sector. He stressed that the key to the success of “privatization projects” is that they are managed as projects to which all processes are applied that ensure the achievement of the planned goals at the specified time, approved cost, and required quality.
10 Problems Facing Privatization Programs in the Kingdom
Dr. Faisal Al-Sharif went on to talk about the problems facing privatization programs, which are represented in the control of administrators and financial personnel and, in contrast, the absence of the role of project managers, while many influential specialists (those in senior positions, financial, administrative, legal, public relations and media personnel) interfere, as well as the delay in completion and the length of procedures, in addition to the complexity of privatization processes, resistance to change, the need to qualify projects for privatization, achieve the necessary knowledge, provide human resources to make the project a success, and the power of decision-making.
Misunderstanding of privatization
Al-Sharif stated that there is a problem in understanding privatization projects, especially with regard to the citizen, as the citizen fears an increase in burdens on him if government facilities such as education and health are privatized. There is a difference between building and operating and the inevitability of some decisions such as free education and the right to obtain government insurance for treatment anywhere. On the contrary, the citizen has the right to obtain his health rights in full in any place, whether governmental or private.
Al-Sharif continued: “We see many examples of the success of privatization, which has succeeded in reducing the costs of operation and services for the citizen, such as communications, which has opened up competition to private companies, and all of this is in the interest of the citizen.”
Public sector employees' situation
Regarding public sector employees, Dr. Al-Sharif stated that there is a form of contracting that must change, but in all cases the state is studying and approving systems related to giving the employee the opportunity for empowerment, training and transfer in a smooth manner to the private sector without harming him.
Al-Sharif pointed out that transferring state services to privatization in their entirety is unnatural and has no basis in truth. The rate of change and transfer may reach 20 % at its highest limit. The concern that appears to be among employees and workers in the public sector is completely unfounded, given the government’s keenness to provide a safe environment for employees.
Privatization of the sports sector
Regarding privatization in the sports sector, Dr. Abdullah Al-Kharmani said that privatization projects in the sports sector have encountered many problems, unlike other sectors such as post and communications, etc. Dr. Al-Sharif pointed out that the sports sector has many great qualifications that allow it to be privatized, as it is one of the largest sectors that can be privatized, and we are waiting for successful steps to transform and qualify it to keep pace with the comprehensive privatization plans.
National staff to support project management
For his part, Dr. Abdullah Al-Kharmani stated that the Project Management Division at Al-Jumah is currently working to conclude special agreements with government agencies to qualify a national cadre that will contribute to advancing the realization of Vision 2030 through intensive conferences and activities, while he indicated that the division will announce all the details to the media within days, God willing.
The panel discussion concluded with Dr. Faisal Al-Sharif's response regarding the protection of state-owned assets in the event of privatization. He pointed out that assets are usually consumed and the private sector is responsible for developing them, but overall, special conditions are set to preserve and develop the assets in a way that preserves state resources.
Dr. Faisal Al-Sharif thanked the Saudi Society for Urban Sciences, the attendees, and the organizers of the meeting, while Dr. Abdullah Al-Kharmani expressed his thanks and appreciation to Dr. Faisal on behalf of the Society’s management and the Project Management Department.
