B. Strategic Considerations

Consideration

Description

Decision taken and its consequences

Execution responsibility

The responsibility of developing the privatization strategy/ for each sector and the best privatization model for each entity will be developed by the respective Privatization Supervisory Committee in alignment with NCP's rules and regulations

International benchmarks indicate options between a centralized model and a more decentralized model. Given the fact that privatization is not only about selling assets, but also PPP, market reforms, and transformation, Thus, a model has been designed which sets between centralized and decentralized models. The Privatization Supervisory Committees (PSCs) are mandated to evaluate optimal privatization models and execute it based on official legal rules and procedures. The NCP acts as a center of excellence that enables privatization and PPP initiatives and enhance governance through regulations, policy, procedures, and advisory. Also, VRP Office will be responsible for overseeing and steering the various privatization initiatives to ensure adequate progress is achieved as per the plan.

Privatization of PIF assets

The responsibility of privatizing PIF assets lies with the PIF.

The SMC has taken the decision to leave the responsibility of the privatization of PIF assets with the PIF

Making public residential real estate assets available for private sector use

The government owns considerable land which can be used for housing purposes.

The SMC has taken the decision to allocate the responsibility of the usage of government real estate for housing purposes to the Housing Program

Appropriate privatization method

Private sector can participate in governmental services and assets in two methods: PPP and asset sales

NCP will develop rules, regulations, and guidelines for different types of privatization models. The PSC's have to choose the appropriate method in line with the sector-specific privatization strategy.