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. To achieve these goals, TBC began to define a model of public-private partnership in the creation of an infrastructure program for national schools. The partnership between the public and private sectors 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 worldwide to improve the use of public funds and enhance the quality of services.
Encouraging private sector participation 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 process between the public and private sectors towards building schools is the first social infrastructure project in the Kingdom of Saudi Arabia.
TBC has realized 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 partnership process between the public and private sectors has highlighted great challenges and opportunities for the education sector in the Kingdom of Saudi Arabia. TBC will ensure that the path of public-private partnership continues to advance through the use of lessons learned, knowledge gained and continuous improvement in program implementation.
Wave 1 and wave 2 projects of the Build Maintain Transfer (BMT) Track