Privatization, PPP & Project financing
Privatization, PPP
Saudi Arabia is the most active PPP market in MENA. Public Private Partnerships (PPPs) are being increasingly used as a means of attracting more private investment into areas of the Saudi Arabian economy that have traditionally been financed by the public sector.
How we can assist you in PPP Projects.
There are four key steps or stages that need to be considered when structuring any potential PPP agreement. which are:
- Structuring the Development Model
To serve our clients' best interests and make PPP projects more feasible, we assist our clients during the initial planning and procurement stages so that they understand their respective roles and responsibilities, as PPP projects frequently involve multiple parties.
- Identifying Specific Opportunities
We can assist you in identifying strategic objectives of the National Centre for Privatization & PPP (Real Estate, Aerospace Sector, Manufacturing, Transport and Logistics, Food and Agriculture, Entertainment, Leisure and Sports, Financial Sector, Metals and Mining, Healthcare, Retail and Consumer Goods sectors) and align them with private sector partner.
After identifying the right opportunity, we can help you in preparation of the commercial terms for the public and private sector, key risks and how to distribute them, project tenure as well other required legal documentation.
- Selection of Partners
Once you select the suitable partner for PPP project. We can guide you in bidding and a transparent procurement process.
- Signing of PPP Agreement
To serve our client best interest, we put our efforts on concrete and enforceable clauses to ensure timely payments. To ensure this we focus on contractual incentives (bonuses) for superior performance or early delivery and corresponding penalties for delays.
We set our sights on concrete and enforceable clauses to ensure timely payments through putting emphasis on contractual incentives (bonuses) for superior performance or early delivery, as well as corresponding penalties for delays.
Our Expertise
- We can advise you on negotiate and an appropriate risk allocation between the public and private entities.
- Draft the documents and coordinate input from co-advisors and the client and building client relationships within the industry.
- Develop gap analysis, interview existing PPP investors, their public partners and government agencies engaged in PPP development.
- Draft concept notes and briefing notes on legal and regulatory frame work of different models of PPP, viz BOT (build- operate-transfer), BOOT (Build-own-operate-transfer), BT (Build and transfer), BLT or BRT ( Build-rent or lease-transfer), BTO (Build-transfer-operate), DBFO (Design-build-finance-operate) and MOT (Modernize-own / operate-transfer), ROO (Rehabilitate-own and operate), ROT (Rehabilitate-own/operate-transfer) in consultation with our local and other International consultants.
- Draft joint ventures agreements and contract negotiations for PPP projects.
- Advise on all stages of (The First File “Pre- Feasibility Study”, the Second File “Partial Business Case”, the Third File “Full Business Case” and the Fourth File “Final Business Case”) of preliminary privatization preparation process of PPP projects offered by government of Saudi Arabia.
- Advise on procurement phase, including contracting, financial and commercial closure stage.
Project Finance
We can assist you in exploring viable financing options, such as loans and credit facilities, and implementing the financing structures best suited to your projects, whether you require limited recourse financing or advice on debt security issues.
TLF has a long history of advising lenders, developers, sponsors, project & engineering companies, procurement, and construction contractors on a wide range of power, renewable energy, oil & gas, mining & metals, and infrastructure projects. We keep you up to date on local, regional, and global market developments that may affect your financing arrangements by providing access to cutting-edge knowledge tools and resources.
Foreign Direct Investment
We advise international corporations on the legal aspects of investing and transacting business in the KSA.
Our FDI expert regularly assist foreign clients in structuring their investments in the KSA having regard to compliance with regulatory approvals (From MISA and related Ministries/Authorities) and the associated fiscal and non-fiscal incentives available to investors under various policies and schemes offered by the Saudi Government. In particular, we advise clients on investment tax allowances, pioneer status, tax holidays, Special Economic and industrial zones, operational headquarters, regional representative offices, manufacturing licence requirements as well as guidelines on foreign and local equity participation in the KSA based companies. We assist clients in liaising with, applying for and obtaining approvals, permits and licences necessary for their business operations from the relevant authorities.
