In May 2016, TBC conducted a study to analyze options for innovative financing for the construction and maintenance of public schools. One of the main objectives of the study was to seek ways to increase the participation of the private sector in education sector. Another objective was to achieve financial efficiencies in the construction and maintenance of public schools. In order to achieve these objectives, TBC has embarked on identifying a PPP model for the establishment of a national school infrastructure program. A public-private partnership is a relationship between a government agency and a private sector company that can be used to finance, build and operate long-term projects. Over the past two decades, this model has been implemented globally to improve the use of public funds and enhance the quality of services.
Encouraging the participation of the private sector in the implementation and operation of schools will ensure that the burden of capital expenditures is transferred from the government to the private sector. This partnership between the public and private sectors towards building schools is the first social infrastructure project in Saudi Arabia.
TBC has included the ambitious future goals, and has initiated an operational partnership program with the private sector to provide high-quality infrastructure in all schools in an attractive environment, according to the latest designs that provide ample space for various activities.
The TBC team has conducted extensive market testing of PPP with investors, banks, developers, and contractors (construction services and facilities management). A systematic study of the market was conducted and several meetings were held with developers and investors. All developers and investors have internalized the PPP structure and found that the size of the program is appropriately defined with a balanced risk allocation. As a result of these meetings, a common understanding was reached by potential investors, developers and other private sector participants.
The process of public-private partnership highlighted significant challenges and opportunities for the education sector in Saudi Arabia. TBC will ensure that the partnership between the public and private sectors continues to progress through the use of lessons learned, knowledge gained and continuous improvement of program implementation.