Article 39 of the Saudi Privatization Law

This article regulates the route of objection for anyone who believes the procedures for tendering or awarding a privatization project were wrong:

The committee: formed by decision of the Center's Board of Directors, of at least five specialists, two of whom have legal qualifications, and reconstituted every three years. It hears grievances and decides whether to accept them and what compensation is due, or to reject them.

Conditions for a grievance:

• Time limit: within 10 working days of the date of the procedure complained of.
• Guarantee: an irrevocable, unconditional bank guarantee in favor of the Center from a bank licensed in the Kingdom, of not less than one million riyals and not more than five million riyals.

Effects of a grievance:

• A grievance does not suspend the tendering and award procedures, but the contracting authority must inform the competent authority of it before the award, and may decide as it sees fit.
• Acceptance before the contract is signed: the contracting authority corrects the violating procedures if possible, and otherwise the tender procedures are canceled.
• Acceptance after signing: the decision determines the compensation due and the guarantee is returned.
• Rejection: the decision must include forfeiture of the whole or part of the guarantee as the committee decides, to be paid into the General Treasury.

The committee's decisions are binding on the contracting authority and may be appealed before the competent court. After the contract is signed, the grievance is limited to a claim for compensation and the return of the guarantee. The Center's Board of Directors issues the committee's working rules, the conditions of grievance, and the calculation of the guarantee and compensation and its maximum. Because the period is short and the guarantee large, it is best to consult a lawyer who specializes in administrative matters as soon as the procedure occurs.