Launching a successful Privatization project requires extensive preparation. Detailed analysis is performed, in an iterative fashion, to determine:
a) the ability to achieve the Government's objectives for the project;
b) achieving value for money;
c) whether the project appears bankable and likely to attract private investors;
d) the key risks and how they might best be allocated and mitigated;
e) impacts on citizens and other stakeholders;
f) whether privatization is the most suitable approach vis-á-vis traditional procurement methods;
g) any other factors determined by NCP at its sole discretion.
These analyses are also necessary to improve the probability of project success and avoid putting a poorly-prepared project out to bid, thus incurring increased risk, expense and delay, and potentially damaging the Kingdom's reputation in the Privatization marketplace. As a result, this Manual implements a comprehensive set of requirements and checkpoints in the Privatization preparation process.
If at any point this analysis demonstrates that no further exploration of the Privatization option is warranted, then the project may be suspended or considered for an alternative form of procurement, and no further resources will be applied towards exploring a Privatization solution. This process makes the Privatization preparation phase more efficient and cost-effective.