The following words and phrases – wherever they appear in these regulations – shall have the meanings specified next to each, unless the context requires otherwise:
Regulations: The regulations governing privatization.
Law: The privatization law.
Implementing Regulation: The implementing regulation of the law.
Council: The Council of Economic and Development Affairs.
Competent Authority: The authority (authorities) that has the authority to issue the necessary approvals for privatization projects, including the approval of project bidding, awarding, and contract signing, or exercising any other powers or duties in accordance with the law.
Executive Authority: The authority (authorities) responsible for studying and preparing privatization projects and has the powers to bid for projects, award contracts, or exercise any other powers or duties in accordance with the law.
Center: The National Center for Privatization.
Board of Directors: The Board of Directors of the Center.
Supervisory Committee: The supervisory committee formed in accordance with the regulations.
Relevant Authority: 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 provisions of Article (4) of the privatization law.
Contract: The privatization contract, or any related contract.

The rules apply to privatization projects and contracts subject to the provisions of the law, as well as the entities concerned with those projects and contracts.
 

• 1- Unless there is a specific provision in the regulations, the Council of Ministers is the competent authority regarding the granting of approvals for the privatization project document, bidding, awarding, and signing related contracts, concerning projects for the transfer of ownership of assets, and public-private partnership projects that involve the transfer of ownership of assets owned by a relevant authority to the private party, regardless of the value of the project.

• 2- The Council of Ministers is the competent authority regarding the approval of any of the contracts mentioned in paragraph (1) of this article, which were signed without obtaining prior approval from it.

• 3- An order from the Prime Minister shall be issued for the following:

  • A- Approval of any public-private partnership contract concluded by a relevant authority, which was signed without obtaining prior approval from the competent authority.

  • B- Approval of the privatization project document and the offering of the privatization project through direct contracting, regardless of its value.

  • C- Approval of the privatization project document and the offering of the asset ownership transfer project, and the public-private partnership project, which involves the transfer of ownership of assets through limited competition, regardless of its value.

1- The Council shall be the competent authority regarding the approval of ownership of any of the concerned devices of shares or stocks in the capital of the privatization project company.
2- Notwithstanding paragraph (1) of this article, in the event that the ownership of shares or stocks in the capital of the privatization project company is by the Center, the approval for that shall be from the Board of Directors.

• 1- The Board of Directors shall be the competent authority regarding public-private partnership projects within the following limits:

  • A- Unless there is a specific provision regarding it in the regulations, grant all approvals required under the law for a public-private partnership project with a value of five hundred million Riyals or more for each contract, including approval of the privatization project document, bidding, awarding, and signing the contract.

  • B- Approve the cancellation of the bidding for a public-private partnership project with a value of five hundred million Riyals or more for each contract, at any time before signing the contract.

  • C- Approve that the contract includes an arbitration clause to resolve disputes arising from it or to conclude an arbitration agreement to resolve an existing dispute arising from it, or to include an arbitration agreement or clause specifying a foreign law applicable to the subject of the dispute.

  • D- Approve the following regarding any public-private partnership project, regardless of its value:

    • 1- Bidding for the public-private partnership project through limited competition.

    • 2- Awarding the public-private partnership project in the event of appeals against the bidding and awarding procedures that have not been resolved, or directing to suspend the awarding procedures until those appeals are resolved.

    • 3- Not considering the private party's exercise of a right granted to it, or adherence to any obligation under the public-private partnership contract, as monopolistic practice even if it affects or restricts competition.

    • 4- That the duration of the original public-private partnership contract or after renewal or extension does not exceed thirty years.

    • 5- Terminating the executive authority's public-private partnership contract and any related contract unilaterally.

    • 6- Granting any required approval under the law when there is a problem for the executive authority in determining the competent authority to grant the required approval for the public-private partnership project.

• 2- The Board of Directors shall be the competent authority regarding the project of transferring ownership of assets, and the public-private partnership project that includes the transfer of ownership of assets owned by any relevant agency to the private party - regardless of its value - within the following limits:

  • A- Approve the cancellation of the bidding for the project of transferring ownership of assets, and the public-private partnership project that includes the transfer of ownership of assets before signing the contract, provided that the Board of Directors notifies the Council of Ministers of this, stating the reasons for the cancellation.

  • B- Approve the private party in the asset transfer contract, or the public-private partnership contract that includes the transfer of ownership of assets, to transfer ownership of the shares or stakes it owns in the privatization project company or to pledge them; if the contract does not include a provision or controls in this regard.

  • C- Approve the executive authority to provide a certificate to the private party in the asset transfer contract, and the public-private partnership contract that includes the transfer of ownership of assets - upon its request - stating that the competent authority has approved the contract, and that the contract and any documents, or bonds, or related documents, are signed or will be signed, and are subject to the provisions of the law.

  • D- Approve the completion of the procedures for awarding the project of transferring ownership of assets, and the public-private partnership project that includes the transfer of ownership of assets, in the event of appeals against the bidding and awarding procedures that have not been resolved, or directing the executive authority to suspend the awarding procedures until those appeals are resolved.

• 3- The Board of Directors shall be the competent authority regarding the approval for the private party - if it is a foreign investor - to lease a property within the boundaries of the cities of Mecca and Medina for a duration equal to the duration of the privatization contract for the purpose of implementing the privatization project.

The Supervisory Committee is the competent authority regarding the following:
1- Unless there is a specific provision in the regulations, to grant all approvals required under the law for the public-private partnership project under its supervision, which has a value of less than five hundred million Riyals per contract, or does not entail any direct annual financial obligations on the government, including approval of the privatization project document, bidding, awarding, and signing the contract.
2- Approval to cancel the bidding for the public-private partnership project that has a value of less than five hundred million Riyals per contract before the contract is signed, or does not entail any direct annual financial obligations on the government.

For the purpose of applying the provisions of the rules and determining the competent authority according to the value of the public-private partnership project, the value of the public-private partnership project is calculated based on the value of the direct annual financial obligations incurred by the government under the contract.

The Ministry of Finance shall be the competent authority regarding the approval for the contract to include granting the private party any of the following rights:
1- Collecting the financial consideration from beneficiaries directly on its behalf in exchange for the works and services it provides, in accordance with the public-private partnership contract.
2- Collecting public revenues - including fees and taxes - related to the public-private partnership contract for the account of the public treasury of the state.
3- Collecting public revenues or part of them directly on its behalf, in accordance with the contract.