RIYADH: In a move to foster greater participation of the banking sector in Saudi Arabia’s privatization drive, the National Center for Privatization & PPP, known as NCP, has signed a cooperation agreement with Banque Saudi Fransi. 

The agreement will see both parties working toward establishing a cooperative framework to support privatization and public-private partnership opportunities in the Kingdom.  

The agreement is part of both parties' strategy to motivate the bank's clients to invest in privatization and public/private partnership projects. 

This agreement comes in continuation of the NCP’s efforts to enable the banking and financial sectors to support the P&PPP projects through financing and providing advisory services. NCP said such moves are expected to have a positive impact in attracting local and international investments. 

The agreement, which was the second such cooperation deal with the banking sector, was signed by NCP CEO Mohannad Basodan and BSF CEO Bader Al-Salloom. 

Last month, NCP signed a similar agreement with Riyad Bank to establish a cooperation framework between the two parties.  

These agreements complement NCP’s role in the success of offering P&PPP opportunities to the private sector in the 17 sectors targeted for privatization. 

NCP is responsible for enabling the privatization program — a priority identified as part of realizing the Saudi Vision 2030 — as it provides assistance in formulating regulations, creating privatization frameworks, and preparing government assets and services identified for privatization to ensure quality outcomes, according to its website. 

The center is developing the privatization pipeline, which includes proposing sectors and government assets and services that could either be privatized or improved through private sector participation. 

Earlier this year, NCP approved a new set of rules to govern how PPP agreements are reached as it wants to ensure that factors like fairness, transparency, and feasibility are taken into consideration before giving its green light. 

The new laws were framed to promote real competition in the tendering process and make sure the public interest is protected while ensuring that all participants are dealt with fairly without any conflict of interest.  

The change was made in a bid to encourage investors to bid for contracts and therefore increase private sector contribution to Saudi Arabia’s gross domestic product.