(MENAFN- Oxford Business Group) Riyadh, March 2023: Oxford Business Group (OBG) presents a compelling narrative of a successful Public-Private Partnership (PPP) in its latest Global Platform video, produced in collaboration with the National Centre for Privatization & PPP (NCP). The video features insights from Mohannad Basodan, CEO of NCP, shedding light on the transformative impact of PPP initiatives in driving economic growth and infrastructure development in the Kingdom of Saudi Arabia, as well as Salman Badr, NCP’s Executive VP for Infrastructure Advisory.
Established in 2017, NCP has emerged as the key entity in promoting PPP initiatives as part of Vision 2030, Saudi Arabia's roadmap for economic diversification and growth. Through proactive policymaking and strategic partnerships, NCP has facilitated the approval of the Private Sector Participation Law, grounding rules and implementing regulations, laying the foundation for sustainable economic development.
One of the Kingdom's earliest PPPs, Madinah Airport showcases the effectiveness of PPP frameworks in generating investments and enhancing operational efficiency, as shown in the video. The strategic collaboration between the government of Saudi Arabia and the private investors has resulted in significant investment inflows, with over $1.2bn directed towards airport facilities. The private partner injected capital that modernised infrastructure but also improved management and operating practices, reflecting a commendable synergy between the public and private sectors.
The video highlights the substantial increase in passenger traffic, underscoring the success of the PPP model in enhancing connectivity. From 4.6m passengers in 2013 to 8.4 million by 2019, the 83% surge in passenger numbers at Madinah Airport demonstrates the tangible benefits of collaborative efforts in advancing transportation infrastructure.
In response to the challenges posed by the COVID-19 pandemic, NCP demonstrated resilience and adaptability in advancing PPP projects. Innovative solutions to mitigate the impact on the project were implemented through the creation of a task force in collaboration with relevant authorities, including the General Authority of Civil Aviation and the Ministry of Finance. The resulting agreement on a Deferred Revenue Mechanism and a Contract Extension enabled the private partner to negotiate a successful refinancing with its lenders to give it the necessary breathing space to recover. This mechanism exemplifies the government's commitment to supporting its partners during challenging times.
Mohannad Basodan, emphasised the importance of collaboration and resilience in navigating complex economic landscapes. "Our partnership with the private sector is instrumental in achieving our national development goals. Through effective PPP frameworks and strategic investments, we aim to create a sustainable future for Saudi Arabia and its citizens," he stated.
Salman Badr added that Madinah Airport serves as a success story on the type of approach the government should be taking in other PPP projects. “Traffic numbers have been phenomenal in the recovery since COVID-19 and we're well on track to achieve Vision 2030's targets for traffic within Madinah to reach 30m by 2030,” he highlighted.
Marc-André de Blois, OBG's Director of Video Content, commended the collaborative efforts showcased in the Global Platform video. "The advances at Madinah Airport highlight the effectiveness of PPP collaborations in driving economic growth. We acknowledge Saudi government’s contributions and anticipate continued cooperation towards sustainable development," he added, affirming the ongoing commitment to constructive engagement for long-term prosperity.
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