Second: Program Metrics

Program metrics have been set to measure and guide the impact achieved as required. These metrics reflect the program's priorities from Vision 2030.

Due to the potential huge varieties at the markets conditions during privatization implementation phase, the impact parameters was set with upper and lower limits, especially the assets sales revenue and net investment.

Rationale for target/trajectory for program metrics ("1") (Number of government assets which have been privatized.): As per guidance from SMC in pulse-check meetings, the VRP selected 23 impact initiatives to be tracked through this program in accordance with the governance model contained in this document. Out of these, five are privatizations of existing government assets; through asset sales.

Note that during the coming period, a number of initiatives will be implemented, particularly of importance (Ports corporatization, privatize some services at the transportation sector, Privatize KFSH&RC to a Not for Profit). Since all of the processes do not involve private sector engagement as they are limited to transition to companies or preparatory actions, they are not expected to be privatized in the strict sense before 2020, which is why they are excluded from this metric.

Rationale for target/trajectory for program metric "2" (total government proceeds from assets sales): As privatization comes in two forms: assets sale and PPPs. Since the sale of assets generates direct financial proceeds to the government, it was necessary to set this metric to show the expected proceeds to the government.

Rationale for target/trajectory for program metric "3" (total number of public-private partnership investments): metric "2" shows targeted proceeds from asset sales (first privatization form), based on that, there is a need to develop metrics for public-private partnership projects (second privatization form). This is in line with the guidance from SMC in pulse-check meetings. The objective of this metric is to indicate the number of partnership projects expected by 2020. These initiatives are part of the 23 initiatives that the Strategic Committee directed to be tracked through this program.

Rationale for target/trajectory for program metric "4" (total value of investments based on public private partnership): metric (3) above shows the number of public-private partnership projects. It is therefore necessary to indicate the total value of the investments resulting from the public-private partnership projects as shown in metric 3.

Rationale for target/trajectory for program metric "5" (government net savings in capital expenditure and operating expenses from privatization): Metric (4) shows the total investments resulting from the partnerships. It is necessary to indicate the net savings that the government can achieve from these projects.

We recommend adding a metric to track: Percentage of services privatized per sector (through privatization or PPP) as follows:

Each PSC identifies assets and services that are suitable to be privatized and includes it as part of its sector privatization strategy.

Percentage of privatization is calculated from assets/services identified in the above step along with continuous supervision from program.

Activation of PSCs are essential to this metric.

Example: After activating the PSC for sector 'X', the committee completes a sector strategy and identifies 100 privatization opportunities. If 10 of those opportunities are prioritized that year (after obtaining needed approvals), the committee will have achieved 10% of the target. Opportunities that are excluded due to lack of feasibility are excluded from the metric.

We will study adding a metric to track: Success of privatization operations (by sector) as follows:

The number of bids provided by the private sector for participation in privatization or PPP.

After receiving the bids from the private sector to participate in the privatization or PPP, there should be a value for money assessment.

Enhance the level of service provided to users and allow it to larger numbers of beneficiaries