Regulations of Open Public Competition

Show Law Preamble

  • The Minister of Municipal and Rural Affairs

  • Pursuant to Article (Twenty-Eight) of the Regulations for the Disposition of Municipal Real Estates issued by the Royal Order No. (40152) dated 1441/6/29 AH, which authorizes the municipality - after the minister's approval - to invest its real estates through open public competition, based on regulations issued by the minister in coordination with the Minister of Finance.

  • After reviewing the Law of the Disposition of Municipal Real Estates issued by Royal Decree No. (M/64) dated 1392/11/15 AH, and the Law of Municipalities and Rural Areas issued by Royal Decree No. (M/5) dated 1397/2/21 AH.

  • After reviewing the letter of His Excellency the Minister of Finance No. (12390) dated 1441/12/28 AH.

  • Based on what the interest of the work requires.

  • Decides the following:

    • First: Approval of the regulations for open public competition in the attached form.
    • Second: These regulations shall be reviewed periodically and updated as needed.
    • Third: These regulations shall be applied from the date of issuance of this decision.
    • Fourth: This decision shall be communicated to whoever is necessary for its implementation.

  • Acting Minister of Municipal and Rural Affairs

  • Majid bin Abdullah Al-Hogail

Article 1

The municipality shall invest its real estate through an open public competitive method, provided that these properties are within an investment plan approved by the Minister or his delegate.

Article 2

Article 3

The municipality prepares the terms and specifications booklet according to the approved models based on the type of investment required.

Article 4

The procedures followed in public competition shall apply to open public competition - in accordance with the provisions of the regulation and the executive instructions - except for matters related to the submission of bids and bank guarantees.

Article 5

The municipality shall determine – in the announcement of the open public competition – the opening price at which the competition begins, and on this basis, the value of the initial guarantee required to be submitted by the competitor shall be specified.

Article 6

  • The Investment Committee sets the opening price at which the open public competition begins, and the reference price based on which the committee awards the contract, provided that the opening price is not less than the prevailing market prices by more than twenty percent (20%), and that the reference price is in accordance with the prevailing market prices.

Article 7

It is required for the investor to enter the open public competition to register with the investment department at least three (3) working days prior to the date of the competition.

Article 8

The investor shall provide an initial bank guarantee upon registration equivalent to (10%) ten percent of the value of the opening price, provided that a final bank guarantee is submitted within (15) fifteen days after the award, equivalent to (25%) twenty-five percent of the annual price at which the award was made.

Article 9

It is required to have the attendance of at least (3) three registered competitors to start the open public competition. If the minimum number is not met, the competition shall be re-announced after at least one month from the date set for its first conduct. If the minimum number is still not met the second time, the municipality shall have the right to invest these properties in accordance with the provisions of the regulation.

Next section title

Next section content
For more, log in