Institutional framework

 

In order to launch the privatization process and strengthen the institutional and technical capabilities of the government to successfully implement the privatization program, an institutional framework and its mechanisms have been determined as follows:

First: The Council of Ministers:

The Council of Ministers is the authority which determines the general policies of privatization and issues and approves decisions in this respect.

Second: The Ministerial Committee for privatization:

The Ministerial Committee was formed pursuant to Article (4) of the Privatization Law issued by Royal Decree no. 77/2004 to be chaired by HE the Minister of National Economy and Deputy Chairman of the Financial Affairs and Energy Resources Council. The Committee’s members are Their Excellencies the Minister of Transport and communications,Minister of Housing, Electricity and Water, Minister of Health and Deputy Chairman of the Council of Governors of the Central Bank of Oman, Minister of Commerce and Industry, Minister of Regional Municipalities, Environment and Water Resources, Minister of Petroleum and Gas, Minister of Manpower, Minister of Tourism and HE. the Deputy Secretary General of the Council of Ministers.

 

The Committee is assigned to draw the general policies of privatization and recommend the same to the Council of Ministers for approval and to supervise and follow-up the implementation of these policies.

Third: The Technical Secretariat of the Ministerial

Committee: The Directorate General for the Private Sector’s Affairs at the Ministry of National Economy is assigned the responsibilities as the Technical Secretariat of the Ministerial Committee through Privatization Department. It is responsible for supervision on the identification of public enterprises which are intended to be restructured or privatized and for participation in the implementation of privatization processes in collaboration with specialized consultants and the related Ministries and establishments.

 

These include the selection of the most ideal mode of privatization for each individual case, submission of recommendations in this respect to the Ministerial Committee and participation in selection of consultants and in developing the standards of qualification and evaluation of submitted bids. The Technical Secretariat should also prepare reports to be presented to the Council of Ministers recommending the implementation of privatization projects and the projects estimated costs to be borne by the government. Reports should also be on the amounts required for private sector support, cash flows of these projects and issues concerning the participation of concerned organizations in negotiations on privatization processes.

Fourth: Committees and work support teams:

Steering committees and work teams : Steering committees and work teams are usually formed for each project including representatives from units or ministries concerned in a privatized project. The tasks of these committees are to study and control the privatization process, remove obstacles, ease communication, coordinate with different related parties and make recommendations to the Ministerial Committee for privatization.

Fifth: The Tender Board

The Tender Board is involved in studying tenders submitted to select the most suitable bid in relation to standards specified for this purpose. Special tender committees are formed if required based on the nature of the project. Committees are formed of members including a representative of the Tender Board. The committees set up the basis and rules need to be adopted in the invitation for tenders and the procedures thereof.