What’s New about the New Public Authority for PPP?
His Majesty Sultan Qaboos in his recent addresses to the nation
has been emphasising the importance of private sector’s
participation in government projects to Oman’s growth.
Accordingly, the Oman government has shown greater attention
to investment spending in the country in this budget year. The
investment spending for 2019 is estimated at OMR3.7bn,
including OMR1.2bn allocated for infrastructure projects, which
are overseen by various government units; and an amount of
OMR2.5bn to be utilised by some state-owned-enterprises (SOEs)
for the implementation of projects in industrial and services
The Oman Government is seeking to address the 2019 estimated
budget deficit of OMR 2.9bn through outsourcing of some
government services and enhancing public-private partnership
(PPP) among other measures. The Tanfeedh committee and the
Supreme Council of Planning did recommend privatisation in key
areas that affect the life and wellbeing of the people, affordable
housing, public schools and hospitals. As the privatisation
projects can be seen taking off, the Oman government has shown
its swiftness in fastening the privatisation policies with the incountry
value requirements which shall co-exist under the
regulation of newly established Public Authority for PPP.
The Key highlights of the Royal Decrees that have been issued
with regard to establishing the Public Authority, Privatisation (up
to 100%), and enabling PPP are:
Public Authority for Privatisation and Partnership:
The responsibility that was once vested in the hands of subcommittee
of the council of ministers is now handed on to the
new Public Authority that shall act as an independent body to
implement the privatisation projects, and PPP contracts approved
by the council of ministers and carry out the tasks of partnerships
for development that was so far looked after by OAPFD
Data Collection and Management Policy:
The Public Authority shall frame policies on collection and
management of data generated within its domain.
Free from Tender Law:
While the privatisation of projects will continue to require council
of ministers’ approval, the Authority is bestowed with necessary
freedom in executing its function. There is room for open
negotiations, marketing and all powers and choices associated
with administrative functions that can make the identified
privatisation projects, a reality with competent private investors.
That said the power to act independently comes with
accountability and transparency.
Omani Employees Transfer:
The Omani employee rights are protected in terms of
designations and compensation and end of service benefits and
no job loss can happen before completion of five years after
As we say, watch this space for further updates on the executive
regulations when it will be issued by the Public Authority for PPP.