The terms and phrases mentioned in the Regulation shall have the meanings defined in the Law and the organizing rules, and the terms and phrases mentioned below shall have the meanings specified next to each of them, unless the context requires otherwise:

• Organizing Rules: The organizing rules for privatization issued under the Law.

• Regulation:  The Implementing Regulation of the Privatization Law.

• Competent Authority: The authority designated by the organizing rules as the competent authority.

• Executive Authority: The authority designated by the organizing rules as the executive authority.

• Board of Directors: The Board of Directors of the center.

• Supervisory Committee: The supervisory committee formed under the organizing rules.

• Authority: The Local Content and Government Procurement Authority.

• Key Members: The key members of the supervisory committee (or their representatives) according to the organizing rules.

• Secretariat: The secretariat of the supervisory committee.

• Relevant Entity: Any ministry, government agency, authority, public institution, or entity with independent legal personality concerned with a privatization project subject to the provisions of the Law, including companies whose contracts are governed by the Law.

• First Responsible: The supervisory committee if it is the executive authority, and if the supervisory committee is not the executive authority, the first responsible shall be the Minister of the relevant entity or their equivalent, or the Board of Directors of the relevant entity if it has a Board of Directors.

• Working Team: The working team of the supervisory committee or the executive authority or both, depending on the context.

• Consultant: A person providing professional or consulting services related to the privatization project.

• Privatization Project: A partnership project between the public and private sectors, or a project for the transfer of ownership of assets, or both, depending on the context.

• Privatization Plan: A plan related to a specific sector, outlining the objectives of privatization projects within the sector, a list of privatization projects in the sector, and the implementation timeline.

• Public-Private Partnership Contract: The contract for the partnership between the public and private sectors, including any related contracts.

• Contract: The privatization contract, including any related contracts.

• Document: The privatization project document that includes the detailed study prepared regarding the privatization project before its announcement, and the technical, financial, regulatory, organizational aspects of the project, and other related aspects.

• Offering Plan: A plan that includes the technical elements of the privatization project and the procedures for its offering and management, including evaluation procedures and their applicable criteria, offering documents and their attachments, ensuring alignment with the need for the privatization project and how to achieve its objectives.

• Expression of Interest Request: A document from the competition documents issued by the executive authority to the market to determine the size of the target market and the level of interest in the privatization project.

• Qualification Submission Request: A document from the competition documents issued by the executive authority to potential competitors to assess their qualifications and capabilities to submit bids for the works related to the privatization project.

• Qualification Document: A document submitted to the executive authority in response to the qualification submission request for the privatization project.

• Bid Submission Request: A document from the competition documents issued by the executive authority requesting competitors to submit bids for the works related to the privatization project.

• Bid Document: A document submitted to the executive authority in response to the bid submission request for the privatization project.

• Privatization Project Offering Documents: Include the expression of interest request, qualification submission request, and bid submission request.

• Required Duration: Ten (10) working days from the date of announcing the list of individuals who expressed their interest in competing for the privatization project, or the list of qualified bidders, or the shortlist of competitors, or the competition results and the best offer or the conclusion of negotiation procedures, plus five (5) working days in case of a complaint against the offering or awarding procedures.

The executive authority and its relevant working teams, when exercising their tasks and powers in privatization projects, must consider the following:

• 1. ‌Justice: All private sector competitors should be treated objectively and neutrally.

• 2. ‌Transparency: Privatization projects should be implemented transparently, enabling competitors, private parties, and government entities to access information related to the privatization project at all its stages.

• 3. ‌Contract Enforcement: The provisions of the contract concluded in accordance with the provisions of the law shall be the basis for determining the rights and obligations of the contractors, and the primary reference governing the relationship between them.

• 4. ‌Planning: Privatization projects should be proposed and implemented based on pre-prepared plans and studies, allowing both the public and private sectors to prepare and be ready for them and to provide the necessary resources before these projects are put forward for implementation.

• 5. ‌Feasibility: Privatization projects should achieve developmental feasibility for the government and economic feasibility for both the public and private sectors.

1. Without prejudice to the controls set forth in the Law for considering any project related to infrastructure or public service as a privatization project; no project related to infrastructure or public service shall be considered a privatization project subject to the provisions of the Law unless the value of the project reaches the minimum threshold stipulated in this article.

2. The minimum for a project for the transfer of asset ownership is (50,000,000) fifty million Riyals, and it is calculated based on the estimated value determined by the executive authority for the assets intended for ownership transfer.

3. The minimum for a public-private partnership project is (200,000,000) two hundred million Riyals, and it is calculated based on the total expected nominal value throughout the duration of the project as estimated by the executive authority after independently calculating each of the following elements and achieving the minimum in any of them:

• أ. ‌Capital and operational expenditures, in addition to government-owned assets for which the private sector is granted any rights (including ownership transfer), if any.

• ب. Potential financial obligations arising on the public treasury of the state.

• ج. Expected financial revenues to be received by the government.

4. The executive authority may combine more than one project of a similar nature to achieve the minimum stipulated in this article.

5. If the minimum stipulated in this article is not achieved and the relevant authority sees fit to continue proposing the project related to infrastructure or public service; the relevant laws and regulations concerning the proposal of that project shall apply.

For the purposes of applying the provisions of Article Four of the Law, the provisions of the Law and the Regulation shall apply to privatization projects that are proposed or contracted by companies established by the government, or in which the government owns more than (50%) of its capital – either directly or indirectly, and the purpose of establishing or owning such companies is to propose a privatization project. A company is considered established or owned by the government for the purpose of proposing a privatization project if it meets any of the following conditions:

• 1. If the company is established with the approval of the competent authority based on the privatization project document for the purpose of executing the transition to a company in preparation for the transfer of ownership of the assets.

• 2. If the establishment of the company or its ownership by the government is for the purpose of proposing a project related to infrastructure or public services through privatization.

• 3. Companies that are wholly owned by the government and whose establishment involves the transfer of ownership of public infrastructure assets to them from the government.