Article 40 of the Saudi Privatization Law
المادة 40 من نظام التخصيص
The Implementing Regulations set the rules for implementing the Privatization Law, including the project document, project priorities, selecting consultants, monitoring contracts, the effect of emergencies, and criteria for treating a project as privatization.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تحدد اللائحة التنفيذية الأحكام اللازمة لتنفيذ النظام بما في ذلك ما يأتي:
أ- الأحكام المتعلقة بوثيقة مشروع التخصيص، وآلية التواصل بالقطاع الخاص.
ب- الأسس اللازمة لتحديد أولويات مشاريع التخصيص.
ج- المعايير اللازمة لاختيار فرق العمل والاستشاريين.
د- ضوابط إدارة ومراقبة تنفيذ العقود.
هـ- الأحكام المتعلقة بأثر الحالات الطارئة على إجراءات المنافسة، وتنفيذ مشروع التخصيص، وعلى عقد التخصيص.
2- و- معايير اعتبار أي مشروع مشروعًا من مشاريع التخصيص الخاضعة لأحكام النظام، بما في ذلك وضع حدٍّ أدنى لقيمة مشروع التخصيص.
3- لأغراض الفقرة الفرعية (ه) من الفقرة (1) من هذه المادة، يقصد بالحالة الطارئة؛ حالة يكون فيها تهديد السلامة العامة أو الأمن العام أو الصحة العامة مؤكدًا وغير متوقع، أو يكون فيها إخلال يُنذر بخسائر في الأرواح، أو الممتلكات، أو بتوقف تقديم الخدمة العامة، والتي لا يمكن التعامل معها بإجراءات المنافسة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 40 explained in plain English
This article states what the Implementing Regulations are to regulate, including:
- The provisions on the privatization project document and the mechanism for communicating with the private sector.
- The bases needed to set priorities for privatization projects.
- The criteria needed for selecting work teams and consultants.
- Controls for managing and monitoring contract performance.
- The effect of emergency cases on competition procedures, project implementation and the privatization contract.
- The criteria for treating a project as a privatization project subject to the Law, including setting a minimum project value.
Definition of an emergency case: the article defines an emergency case for these purposes as a case in which a threat to public safety, public security or public health is certain and unforeseen, or in which a disruption threatens loss of life or property or an interruption in providing the public service, and it cannot be dealt with through competition procedures.
In practice, many important details, such as the minimum project value and the effects of emergencies, are not in the Law itself but in the Regulations. The text does not state the content of these provisions, so the Regulations must be consulted.
This article comes after Article 39 on the grievance committee, and before Article 41 on unsolicited offers, which also refers to the Regulations.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 40 of the Saudi Privatization Law
What is an emergency case under the Privatization Law?
A case in which a threat to public safety, security or health is certain and unforeseen, or a disruption threatens loss of life or property or an interruption of the public service, and it cannot be dealt with through competition procedures.
Is there a minimum value for a privatization project?
The Implementing Regulations set the criteria for treating a project as privatization, including setting a minimum value for it.
More articles on Tendering and Awarding Privatization Projects
- Article 5
The article leaves it to the Implementing Regulations to specify the privatization methods available for public-private partnerships or asset ownership transfers, and the conditions and controls for each method.
تحدد اللائحة التنفيذية أساليب التخصيص الممكن اتباعها والمتعلقة بالشراكة بين القطاعين العام والخاص، أو بنقل ملكية الأصول، والشروط والضوابط اللازمة لكل أسلوب من ه
- Article 12
Privatization projects are generally offered through public competition, and may be offered through limited competition, direct contracting or other means suited to the project; the regulations set the rules for each means.
1- يتم طرح مشروع التخصيص من خلال منافسة عامة، ويمكن طرحه عن طريق منافسة محدودة، أو بالتعاقد المباشر، أو غير ذلك من وسائل الطرح المناسبة بحسب طبيعة المشروع. 2- ي
- Article 13
The executing entity may cancel the offering of a privatization project at any time before signing the contract, with the competent authority's approval, in the public interest. Competitors are not entitled to compensation unless the Center's board of directors decides otherwise.
للجهة التنفيذية في أي وقت قبل توقيع العقد إلغاء طرح مشروع التخصيص، بعد موافقة الجهة المختصة متى رأت في ذلك تحقيقًا للمصلحة العامة. وفي هذه الحالة؛ لا يستحق أي م
- Article 32
The Center's Board sets the rules for tenders and procurement in privatization contracts and for State leasing and vacating of real estate in coordination with the State Properties Authority, and the general laws apply where there is no special provision.
1- يضع مجلس إدارة المركز الأحكام المنظمة للمنافسات والمشتريات لجميع التعاقدات اللازمة لتنفيذ عمليات التخصيص. 2- يضع مجلس إدارة المركز -بالتنسيق مع الهيئة العامة
- Article 35
Arabic is the language of privatization tender documents and of concluding contracts and subsidiary contracts, and another language may be used after the competent authority's approval.
تكون اللغة العربية هي اللغة التي تصدر بها وثائق الطرح ويُبرم بها العقد -أو العقد التابع- ويجوز إصدار وثائق الطرح وإبرام العقد -أو العقد التابع- بلغة أخرى بعد مو
- Article 36
This article applies to foreign investors the same criteria and procedures as local ones in tendering and awarding privatization projects, and gives them the same treatment in everything arising from the Law or the contract.
دون الإخلال بأحكام الأنظمة، وبأي التزام للمملكة بموجب الاتفاقيات الدولية أو الإقليمية التي تكون المملكة طرفًا فيها، تُطبَّق على المستثمر الأجنبي المعايير والضوا
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.