The draft RFP shall:
a) Provide an overview of the Privatization opportunity including a description of the project, the objectives of the Kingdom, the scope of work to be undertaken, the location of project, expected term, and other pertinent project characteristics, and include a statement as to whether Alternative Technical Concepts are permitted.
b) Describe the financing assumptions and expectations of the Kingdom, government support, equity stake, or other financial participation, if any, the expected scope and scale of financial commitment and affordability, debt and equity requirements as set out in the indicative term sheets, whether project success fees shall be afforded, if any, etc. As a minimum, the following terms and conditions shall be included in the term sheets.
c) Minimum capital contribution required from the private sector party (to be agreed in consultation with NCP) and in the form of hard equity i.e., after taking account of that allocated to success fees and cost underrun savings.
d) If the project is debt-financed, bid submissions should be based on a firm basis evidenced by a commitment letter signed by all the lenders and a lenders' term sheet that is based on common terms and conditions signed by all the participating lenders shall be incorporated. The commitment letter should clearly set out any outstanding due diligence conditions and any other conditions should be kept minimal.
e) For projects that are project financed, structures that involve balloon debt repayments shall not be allowed except in the case of mini-perms and cash sweep arrangements under such mini-perms shall be kept as a minimum of 90% of excess cash, after scheduled debt service.
f) Identify the contracting approach and important contract details (for example, local employment or materials requirements, identification of key stakeholders, involvement of other local or regional authorities or governmental entities, summary operational or maintenance expectations, contract security and other expected guarantees, etc.).
g) Append the draft Privatization contract to the RFP.
h) Append any other documents and relevant project agreements pertinent to the project and RFP (e.g. third-party agreements that must be taken into consideration in preparing a bid, pre-existing approvals or permits, etc.) and the degree to which the bidders may rely upon them.