The Ministry of Finance announces the issuance of a federal law regulating the partnership between the federal and private public sectors

The Ministry of Finance announced the issuance of Federal Law No. (12) of 2023, regulating the partnership between the federal public and private sectors, which became effective as of December 1, 2023.

The law aims to regulate the partnership between the federal public sector and the private sector in the country, and to encourage the private sector to participate in development and strategic projects, and to increase investment in projects of economic, social and service value implemented by the federal public sector, and to enable the government to implement its strategic projects efficiently and effectively, and to benefit from Of the financial, administrative, organizational, technical and technological capabilities and expertise available in the private sector, enabling society to obtain the best services in a way that achieves the best value for cost, in addition to increasing productivity and improving the quality of public services, while ensuring effective management for the development of those services.

The law also aims to transfer knowledge and experience from the private sector to federal agencies, train and qualify employees of federal agencies in the country to manage and operate projects, implement projects that provide added value to public money, reduce the burden of financial and operational risks on the government that may result from implementing projects, and transform In managing some infrastructure projects and public services from implementation, in accordance with approved policies and controls to achieve quality, and stimulate the competitiveness of projects in local, regional and global markets.

The provisions of the law apply to any partnership project that is wholly or partially funded by the private sector and proposed by a federal entity. It also explicitly specifies the contracts, projects and entities excluded from the application of its provisions in Article (4) thereof, which includes partnership contracts that were concluded before its entry into force in a manner that does not conflict with With the provisions of Article (32) of this law, the outsourcing of services specified in the Partnership Projects Manual, projects whose value is less than the financial limit stipulated in the Partnership Projects Manual, asset privatization projects and public services, and supply and procurement contracts related to national security specified in the Partnership Projects Manual, and the entities Federal sectors and projects that are excluded according to the Council of Ministers decision.

For the purposes of flexibility, continued implementation of work, and ensuring that any government services are not interrupted, the law included an explicit text that includes the continuation of implementation of Cabinet Resolution No. (1/1) of 2017 regarding the Guide to the Provisions and Procedures of Partnership Contracts between Federal Entities and the Private Sector and Cabinet Resolution No. (4/). 8) for the year 2019 regarding the guidance guide for the provisions and procedures of partnership between the public and private sectors in the country, until the issuance of the guide for partnership projects stipulated in the law, to the extent that it does not conflict with its provisions.