| A. Initiatives Portfolio |
The Privatization Program's ambitions, commitments, strategic pillars and strategic considerations have been translated into a number of initiatives aiming to achieve the program commitments. These initiatives also constitute a base on which the aspirations of Vision 2030 shall be achieved.
The current initiatives that have relevance to the program commitments have been reviewed and linked to the strategic pillars. 100+ privatization initiatives were reviewed on criteria such as maturity of the initiative, potential impact and transformational character as well as likelihood of immediate success, to create momentum and visibility of action. As a result, 30 key initiatives were identified:
For Pillar I (Establishing the legal/regulatory basis), 2 key initiatives have been identified.
For Pillar II (Establishing the institutional basis), a total of 5 key initiatives have been identified.
For Pillar III (Steering the sector privatization program), a total of 23 key initiatives have been identified.
As expected, adding new initiatives will require further stud)/ and analysis before they can be included in the Privatization Program.
| Program metrics impacted by the initiative | Expected impact by 2020 | Description | Leading entity | Sector | Initiative name | Strategic pillar | Initiative No. |
| All - due to the pre-requisite and enabling character of the initiative | Enabling the privatization processes and its governance, thereby enhancing opportunities of implementation, attractiveness of opportunities to the local and international private sector and just transactions. This is a pull factor of new investments to the privatization targeted sectors. | Issuance of rules, procedures and controls/frameworks to enable the privatization process and develop its governance by the Council of Ministers' decision No. (665). Develop a draft law on privatization to address the obstacles and gaps facing the privatization process. Conduct a study to identify the most regulatory barriers contained in the relevant laws and regulations. This initiative forms part of the first strategic pillar ("establishment of legal and regulatory basis/framework") | All sectors | Development of the general legislative frameworks for privatization | 1 | ||
| All - due to the pre-requisite and enabling character of the initiative | Increased attractiveness of investment to the privatization targeted sectors through clarity and justice of regulatory environment that will regulate the operational processes in the privatization targeted sectors after the privatization process (this includes the clarity of the market structure, pricing, competition and consumer protection). | PSCs will review the legislative frameworks which regulates the sector (sector's processes, relations with other working entities, sector's structuring) therefore, assessing these frameworks in the light of the situation of the privatization targeted sector after the processes of privatization and working on developing them in accordance with the established regular procedures (law proposal, executive regulations amendments). This initiative forms part of the first strategic pillar ("establishment of legal and regulatory basis") | All sectors | Development of the legislative frameworks in the targeted sectors for privatization | 2 | ||
| All - due to the pre-requisite and enabling character of the initiative | Enhancing the expected benefits from the privatization program and that's through detecting new opportunities to help in the achievement of the program's requirements and ambitions. | This initiative aims to facilitate the process of identifying opportunities for PPP and sale of assets (SOA) projects. A Structural mechanism development and opportunities identification of potential projects of PPP and SOA. This mechanism can be designed in such a way that ensures through it that the initial survey study replaces the pre-feasibility study. This will reduce the burdens (costs) resulting from pre-feasibility studies. This mechanism, also, will include specific initial steps in cooperation with governmental respective bodies which will help enhancing the business base that will be discovered. | All sectors | The development of the "Opportunity Explorer" structural mechanism | 3 | ||
| All - due to the enabling character of the initiative | Examining the contribution of maximizing the anticipated benefits of the privatization targeted sectors through innovative models in opening the doors to SMEs and reinforcing of local content. | This initiative aims to developing models and ideas that will help in elevating the anticipated benefits from privatization processes, where the options of structuring the privatization process will be examined while taking into consideration of adopting new structures to the local applications in case proven to be feasible in achieving additional benefits as compared to others. | All sectors | Privatization Innovation Center | 4 | ||
| All - due to the enabling character of the initiative | Identifying the operating and governance model required to activate/operationalize the SCs, working teams and other actors/parties for distributed and clear roles regarding the privatization processes to elevate the implementation of the operational level and studies necessary for the privatization processes. | This initiative aims to operationalize the governance and operating model related to the Privatization program, particularly, PSCs and ETs (working teams) that is required to steer the privatization program and execute it in different sectors. This initiative forms part of the second strategic pillar ("establishment of institutional basis") | All sectors | 5 | |||
| All - due to the enabling character of the initiative | Due to identifying clear sector-specific privatization strategy, each of the committees (PSCs) will be able to complete the privatization process in its sector more effectively. Consequently, the economic and social value resulted from the privatization initiatives in various sectors will be maximized. | This initiative aims to define clear sector-specific privatization strategy and privatization incentive mechanisms to accelerate privatization. This initiative forms part of the second strategic pillar ("establishment of institutional basis") | All sectors | Developing privatization strategies for the targeted sectors | 6 | ||
| All - due to the enabling character of the initiative | Maximize NCP's efforts through identifying specific strategy and operating model to streamline stakeholders' interactions and benefit from NCP's expertise. | This initiative aims to enable NCP to effectively steer the privatization efforts across the overall ecosystem (Ministries, PSCs and Execution Teams) by updating NCP's strategy and operating model and develop the required capabilities | All sectors | 7 | |||
| -Total number of PPP investments -Total value of PPP investments -Government savings from privatization | -This initiative will lead to follow the partnership system with the private sector in construction, maintenance and transfer the property of government schools. -The investments of the private sector in capital expenditure will reach billions of riyals. | This strategy aims to reduce the financial burden on the government by introducing alternative PPP financing models for public schools. This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the education sector. | The Competent Committee (special operational/ executive committee or SC) | Education | Attract private investments to finance the establishment of educational buildings | 8 | |
| -Total number of PPP investments -Total value of PPP investment; -Government savings from privatization - New jobs created | This initiative aims to transfer a small number of public schools to enhance learning outcomes create more jobs , lower the government's expenditures while retaining MOE role. | This initiative aims to enhance learning outcomes at selected public schools through independency (thus, it is called "independent schools"); This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the education sector. | Education | Operate public schools under the name of "independent schools" | 9 | ||
| -Total number of government entities privatized -Total government proceeds from assets sales -New private sector jobs created | -Cumulative government savings; Raising the value of these ports significantly by 2030. | This initiative aims to refresh the governance and the strategy masterplan of the Ports sector to prepare it for corporatization and privatization. This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the transportation sector. | Transportation | Ports corporisation (Game-changer) | 10 | ||
| - -Government savings from privatization -New private sector jobs created | -government savings in capital and operational expenditures. | . Detailed study to identify specific elements of this initiative which will contribute to the transportation sector in general. This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the transportation sector. | Transportation | Enhance transportation system | 11 | ||
| -Total number of PPP investments -Total value of PPP investments -Government net savings from privatization -New private sector jobs created | Creation of new jobs, reduction of Saudi Group healthcare cost and achievement of attractive financial proceeds/revenues | The initiative is PPP to create a new medical center in Jeddah and that's part of the larger privatization program of Saudi Medical Services. This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the transportation sector. | Transportation | 12 | |||
| - Total number of PPP investments -Total value of PPP investments | -Reduce the burdens of the government's expenditures -Engage the private sector to bear operational and capital expenditures -increase the efficiency and improve the level of services provided to the public | . Detailed study to identify specific elements of this initiative which will contribute to the transportation sector in general This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the transportation sector. | Transportation | Enhance transportation system | 13 | ||
| -Total government proceeds from assets sales -New private sector jobs created | The initiative is expected to contribute in achieving the accumulated government's proceeds by 2020 | Detailed study to identify specific elements of this initiative which will contribute to the transportation sector in general. This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the transportation sector | Transportation | Enhance transportation system | 14 | ||
| -Total govt. proceeds from assets sales -New private sector jobs created -Government net savings from privatization | The initiative is expected to contribute in achieving the accumulated government's proceeds by 2020 | Detailed study to identify specific elements of this initiative which will contribute to the transportation sector in general. This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the transportation sector | Transportation | Enhance transportation system | 15 | ||
| -Total number of PPP investments -Total value of PPP investments -Government net savings from privatization -New private sector jobs created | The initiative is expected to contribute in achieving cumulative savings in energy costs by 2020 and creating jobs from developing and operating power plants. | This initiative represents PPP and aims to enable production of energy from renewable sources through PPP programs. This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the power sector. | Energy industry and minerals | National Renewable Energy Program | 16 | ||
| -Total number of govt. entities privatized -Total govt. proceeds from asset sales -Government net savings from privatization -New private sector jobs created | By 2020, the Ras Al-Khair Desalination Plant will be privatized and the assets of other productions will be studied for privatization to achieve capital and operating savings for the government. | This initiative aims to the privatization of Saline Water Conversion Corporation (SWCC) production sector through sales of existing assets in Ras Al-Khair and establishment of new entities through the partnership with the private sector. By the year 2020, the first step will be the sales of assets in Ras Al-Khair. This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the water, environment and agriculture sector. | Environment, Water and Agriculture | Privatize production sector of SWCC (Game Changer) | 17 | ||
| Government net savings from privatization | Achieving government savings and progress in specialized healthcare and medical research, as well as improving the patient experience | , KFSH & RC will start aiming to be transformed to a company owned fully by the General Org. in preparation to be a non-profit organization. The aim is to corporatize KFSH&RC in order to prepare for privatization, become financially independent and a role model in the health sector and help in achieving its leadership position through focusing on innovation. This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the health sector. | Health | Privatize KFSH&R C to a non-profit organization | 18 | ||
| -Total number of PPP investments -Total value of PPP investments -Government net savings from privatization -New private sector jobs created | Achieving capital and operating savings for the government; creating new jobs and improving the patients' experiences by the year 2020. | Update and expand primary care across KSA in partnership with the private sector to establish new centers specialized in primary care by the year 2020. This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the health sector. | Health | Primary care PPP | 19 | ||
| -Total number of PPP investments -Total value of PPP investments -Government net savings from privatization -New private sector jobs created | Achieving capital and operating savings for the government; creating new jobs and improving the patients experience by the year 2020. | Number of beds will be operated in the hospitals assigned to the private sector; medical cities will be established by 2020. This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the health sector. | Health | Hospital commissioning and medical city PPP | 20 | ||
| -Total number of PPP investments -Total value of PPP investments -Government net savings from privatization -New private sector jobs created | Achieving capital and operating savings for the government; creating new jobs and improving the patients' experiences by the year 2020. | PPP will help in providing rehabilitation beds, as well as beds for long- term care across the Kingdom by 2020. This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the health sector. | Health | Extended care (Rehabilitation and Long-term care) PPP | 21 | ||
| -Total number of PPP investments -Total value of PPP investments -Government net savings from privatization -New private sector jobs created | Achieving capital and operating savings for the government; creating new jobs and improving the patient experience by the year 2020. | Update and expand Radiology across the country in partnership with the private sector in order to respond to higher requests by the year 2020. This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the health sector. | Health | Radiology PPP | 22 | ||
| -Total number of PPP investments -Total value of PPP investments -Government net savings from privatization -New private sector jobs created | Achieving capital and operating savings for the government; creating new jobs and improving the patient experience by the year 2020. | Update and expand Laboratory across the country in partnership with the private to respond to more requests by the year 2020. This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the health sector. | Health | Laboratory PPP | 23 | ||
| -Total number of PPP investments -Total value of PPP investments -Government net savings from privatization - New private sector jobs created | This project is to improve services: and provide better care, serve a greater number of patients and expand services to home-care. One of the secondary effects anticipated is improving operational efficiency since these centers will be managed and operated by service providers from the private sector. | This initiative is all about PPP/Operate and manage 35+ selected rehabilitation centers to provide world class diagnosis, treatment and care services. The initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the social development sector. | Labor and Social Development | Privatize services of 35+ rehabilitation centers | 24 | ||
| -Total number of government entities privatized -Total government proceeds from asset sales -Government net savings from privatization -New private sector jobs created | The program is expected to generate government proceeds/revenues and savings; jobs. The indirect effects include decrease of traffic jam, promotion the safety of passengers, reduce the percentage of pollution | Privatize parking to tackle the economic and social detriments caused by growth in car ownership while achieving operational net result. The initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the municipality sector. | Municipality | Parking PPP/ Privatization | 25 | ||
| -Total number of PPP investments -Total value of PPP investments -Government net savings from privatization -New private sector jobs created | Achieving the government's savings and creating jobs. The other effects include reinforcement of people's satisfaction about the cleanliness of the city and reduction of the percentage of consumed natural resources. | PPP model for the construction of a waste management plant (Pilot). The initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the municipality sector. | Other | Waste Recycling Plant PPP | 26 | ||
| -Total number of PPP investments -Total value of PPP investments -Government net savings from privatization -New private sector jobs created | Achieving the government's savings and creating jobs. | The initiative aims to establish PPP deals on prime vacant land owned by MOMRA in order to maximize land value added for the ministry. The initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the municipality sector. | Municipality | MOMRA asset optimization PPP | 27 | ||
| -Total number of government entities privatized -Total government proceeds from asset sales -Government net savings from privatization -New private sector jobs created | Achieve the government's proceeds and savings of the operational expenditures; elevate operational efficiency. | Sell the milling assets to four private sector players to improve product quality, operational efficiency, operational technology, and raise human capital level | The specialized committee | Environment, Water and Agriculture | Privatize four flour mills | 28 | |
| Total number of govt. entities privatized -Total government proceeds from asset sales -Government net savings from privatization -New private sector jobs created | The model is under study | The initiative aims to privatize the Saudi post services in order to reduce the financial burden on the government. The privatization takes place at the same time in various working units. This initiative forms part of the third strategic pillar (" Steering the main initiatives of the privatization program") | Communication and Information Technology | Privatise/PPP Saudi Post services | 29 | ||
| -Total number of govt. entities privatized -Total govt. proceeds from asset sales -Government net savings from privatization -New private sector jobs created | Achieving government's proceeds and operational savings. | Privatize the Saudi Professional League This initiative forms part of the third strategic pillar ("Steering the main initiatives of the privatization program") and falls under the sports sector. | The supervisory committee of the sports sector | Sports | Privatize Saudi Sports Clubs | 30 |
Notes:
| Pillar I | Establish legal/regulatory basis. |
| Pillar II | Establishing the institutional basis |
| Pillar III | Steering the sector privatization program |
Please note: The metrics linked to indirect objectives will be refined once the PSC's have developed their sector-specific strategies. Metrics will be updated at that time. The quantitative impact will be reviewed by the PSC's in line with the sector strategy and implementation roadmap.