MUSCAT, JULY 14 - The Public Authority for Privatisation and Partnership (PAPP), newly established by Royal Decree 54/2019, will absorb the assets, allocations and employees of the Omani Authority for Partnership for Development (OAPFD) and the Privatisation Department at the Directorate General of Investments, Ministry of Finance.
The Public Authority for Privatisation and Partnership aims to encourage public-private partnership and expand the role of the private sector in investing in the Authority’s projects, contributing to the development of the national economy, enhancing local added value and diversifying sources of income, as well as its role in building citizens’ capacities and increasing employment opportunities, and the development of the capital market.
The PAPP’s domain encompasses privatisation, partnership projects, transfer projects for companies, development of a strategic framework, and preparation of plans and procedures necessary to select and implement projects commensurate with the strategic goals of the national economy. Part of its mission is to improve the efficiency of commercialisation and management of economic resources, operation of public utilities, and expansion of the productive base of the Sultanate.
Additionally, the remit of the Authority is to finance, develop and raise the efficiency of infrastructure projects and public utilities, and provide technical support to the competent authority during the implementation of privatisation or partnership contracts, and monitor the performance of privatisation and partnership projects and transfer projects for companies in line with the objectives set out for them.
In addition, the Authority will support the development the capacity of the military and security forces to produce, promote and transfer modern knowledge and technology, and promote the training and rehabilitation of Omani cadres in all civil, military and security sectors, enhancing in-country value resulting from contracts under the implementation of the offset programme, In line with the terms, conditions and technical specifications.
Dr Dhafer bin Awad al Shanfari (pictured) said: “The Royal Decrees published recently are in line with the future vision of the Sultanate and supportive of the economic development process and at the same time stimulating an attractive investment environment that will contribute to increasing investment in the Sultanate and diversifying sources of income.”
“The role of the Public Authority for Privatisation and Partnership in implementing these laws is as follows: The Partnership for Development Programme, which was implemented by the Omani Authority for Development Partnership (now under abolishment), has delivered of more than 14 projects supporting different sectors in the Sultanate. This has been achieved with the cooperation and support of leading foreign companies around the world, and we confirm the continued implementation of the offset programme through the Public Authority for Privatisation and Partnership, as per the agreed pacts and projects,” Dr Al Shanfari stated.
Offset Programme
The Public Authority for Privatisation and Partnership (PAPP) is responsible for the implementation and management of the Offset programme, formerly known as the Partnership for Development Programme in which companies with government contracts worth more than RO 5 million commit to investing 50 per cent of the value of the contracts in economic projects in the Sultanate. The programme aims to diversify national income sources, strengthen military and security capabilities, develop and qualify national cadres and transfer knowledge, strengthen the private sector.
Privatisation Law
The Authority is responsible for the implementation of the Privatisation Law aimed at implementing government policies related to expanding the role of the private sector in the ownership and management of various economic projects, encouraging investments and attracting various technical and administrative expertise, transferring the ownership or management of government enterprises to the private sector, while strengthening the Omani capital market.
Public Private Partnership Law
The Public Authority for Privatisation and Partnership is responsible for the implementation of the Public Private Partnership Law, which is to carry out work or provide public services of economic or social importance in line with the Sultanate’s strategy and to develop or improve the existing public service and raise its efficiency. The aim of the law is to implement government policies aimed at improving the national economy, encouraging the private sector to invest in infrastructure and public services, establishing regulatory frameworks to manage the partnership process transparently and clearly, improving the quality of public services and reducing the costs of establishing and operating them. The financial burden on the state budget.
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