Saudi Arabia has set the minimum project value of public assets meant for privatisation at SR50 million, reported Saudi Gazette, citing the executive regulations of the Privatization Law. 

 

As per these regulations, the minimum value of public-private partnership project (PPP) is SR200 million ($53.2 million), it stated.

 

The estimated minimum value of the privatization project shall be calculated by the executive authority in charge of the assets, while the minimum value of the PPP project shall be estimated by the executive authority based on the total expected nominal value during the period of the project, after calculating capital and operating expenditures, potential financial obligations on the state’s public treasury, in addition to the financial revenues expected to be obtained by the government, said the report.

 

The provisions of the law and its executive regulations will apply to privatisation of projects that are offered or contracted by companies established by the government, or owned by government directly or indirectly, it added.