| B. VRP Metrics and Targets |
The Privatization VRP includes macro-economic metrics, program-level metrics, metrics on game-changers as well as metrics linked to indirect objectives. In the following, these metrics and targets which the program seeks to achieve will be laid out and explained in detail.
| Macro-Economic metrics | Metric | Unit | 2016 | 2020 | |
| Basis | Target | Note | |||
| 1) Contribution to GDP | SAR M | n/a | 13.827 | ||
| 2) non-oil government revenues | SAR M | n/a | 35,000-40,000 | ||
| 3) non-governmental investment | SAR M | n/a | 60,993 | ||
| 4) Impact on balance of payments | SAR M | n/a | 40,060 | ||
| 5) Creating new jobs at the private sector | # jobs | n/a | 10,000-12,000 | ||
| 6) Contribution to the local content | SAR M | n/a | 4,800 | ||
| 7) Consumption rate | SAR M | n/a | 8,337 | ||
| 8) Inflation rate | % | n/a | 0.42% | ||
| Program metrics | 1) Number of government assets privatized per year/total assets to be privatized by 2020 | number of assets | 0 | 5 | |
| 2) Total government revenue from asset sales | SAR M | 35,000-40,000 | |||
| 3) Total number of PPP investments | # of PPP contracts | 0 | 14 | F,G | |
| 4) Total value of PPP investments | SAR M | 0 | 24,000-28,000 | G | |
| 5) Govt, net savings (Capex & Opex) from privatization/PPP | SAR M | 0 | 25,000-33,000 | H | |
| Game-changer initiatives metrics | 1) Ports corporatization: Dwell time | Days | 11 | 3-5 | |
| 2) Privatize production sector of SWCC: Privatization of Al-Khair Station | % of private ownership of Ras Al Khair station | 0% | 100% | ||
| The development of the "Opportunity Explorer" structural mechanism | Completion rate | 0% | 100% |
A. Negative impact on BoP primarily driven by National Renewable Energy program where majority of plant equipment / machinery is expected to be imported. Improvement through Local Content Strategy expected.
B. Privatization program with insignificant impact on this metric (according to Center for Strategic Development (CSD).
C. The individual plans for each initiative will independently evaluate the number of new private sector jobs created. This will also illustrate the realized cost savings (Capex & Opex) as well as additional private sector investment through PSCs as a result of sectorial studies for each committee.
D. Note that once an asset sale happens (even if partial) the asset is considered as privatized and subsequent stake sales in the same asset cannot be counted.
E. The PPP investments are part of the following initiatives: Attract private investments to finance the establishment of educational buildings, Operate public schools under the name of an "independent school", PPP for new medical center of Saudia Medical Services, PPP for public transport projects , National Renewable Energy Program, Primary care PPP, Hospital commissioning and medical city PPP, Extended care (rehabilitation and long-term care) PPP, Radiology PPP, Laboratory PPP, Parking PPP, Waste Recycling Plant PPP, MOMRA asset optimization PPP, Privatize services of 35+ rehabilitation centers.
F. Consisting capital expenditure savings and savings on operating expenses. (Excluding government revenues).
| Indirect objective | Proposed metrics (examples) | |
| Metrics linked to indirect objectives | 2.1.1 Ease the access to healthcare services | • Waiting time for GP appointment in PHCs developed through "Primary care PPP" • Waiting time for admission in new hospitals created through "Hospital commissioning & medical city PPP" • Waiting time for rehabilitation/long-term care bed developed through "Extended care PPP" |
| 2.1.2 Improve value of healthcare services (Quality of outcomes and experience, and cost) | A. Number of "zero events" in primary care units and hospitals concerned by healthcare-related privatization initiatives • B. Patient satisfactions is measured via questionnaires developed by King Faisal Specialized Hospital and Research Center as one of the specialized initiatives • C. Measuring patient satisfaction of services provided by PHCs developed through "Primary care PPP" • D Measuring patient satisfaction of the diagnostic radioecology services developed through "Primary care PPP" • E Measuring patient satisfaction of the laboratory services developed through "Primary care PPP" | |
| 2.3.1 Improve quality of services provided in Saudi cities (utilities, public transport, etc.) | • User satisfaction of parking services (measured by survey) after roll-out of "Parking PPP" initiative | |
| 3.1.4 Ensure the formation of an advanced capital market | • ECM activity (SAR M) generated from privatization initiatives * This includes the parallel financial market such asNomu market, and other parallel markets that arise later. • DCM activity (SAR M) generated from privatization initiatives** | |
| 3.1.6 Attract foreign direct investment | • FDI net inflows (SAR M) generated from privatization initiatives. | |
| 3.5.1 Create and improve performance of logistic hubs | • Ports' dwell time for the nine corporatized ports. | |
| 4.3.2 Grow SME contribution to the economy | • SME share of privatization transactions (by sector). | |
| 5.1.2 Diversify government revenues - maximize revenues from state-owned assets | • YoY revenue growth after privatization (by entity). | |
| 5.2.1 Design a leaner and more effective government structure | • Capex & Opex savings from corporatization of 9 ports • Capex & Opex savings from transportation sector initiatives • Capex & Opex savings from corporatization of KFSH&RC | |
| 5.2.2 Enhance performance of government entities | • Number of privatization milestones achieved (by entity) | |
| 5.2.5 Improve quality of services provided to citizens | • Already captured above |
*ECM: sales processed issued in domestic capital markets through or primary or secondary equity issuance.
**DCM: debt raised through bonds and sukuk domestically.
Please note: The metrics linked to indirect objectives have to be further refined once the PSC's have developed their sector-specific strategies. Metrics will be updated at that time.