Saudi Arabia outlines privatisation plans for water, and more
Saudi Arabia has outlined its privatisation programme to generate SAR 35 to 40 billion ($9.3 to $10.7 billion) in non-oil government revenues by 2020.
Delivery Plan 2020, which is a part of the wider Saudi Vision 2030, sets out economic and other goals of privatisation, including of Saline Water Conversion Corporation (SWCC) and Ras Al Khair power and water plant.
The document notes that there will be 14 public-private partnership (PPP) contracts worth a total of SAR 24 to 28 billion ($6.4 to $7.5 billion) across the programme as a whole, with one of the aims to achieve government net savings in capital and operating expenditure of SAR 25 to 33 billion ($6.7 to $8.8 billion).
The overall plan covers more than 100 initiatives across 10 sectors, with the expected impacts including “savings, government revenues, and upgrading services”.
The privatisation of SWCC and Ras Al-Khair is a “crucial step in rearranging the water industry and increasing efficiency, and will result in important proceeds for government,” and is expected to result in “savings in government revenues and upgrading services,” it says.
The delivery plan further outlines the administrative framework for the programme, including developing general legislative structures for privatisation and PPPs, and the legislative frameworks within the target sectors.
View the full document here.