THE Ministry of Education announced plans to launch a partnership initiative with the private sector as part of a wider initiative to support the Kingdom’s Vision 2030 strategy. The public-private partnership (PPP) plan will promote investment in and development of buildings and infrastructure for education and will provide exciting opportunities for investment by private companies in this sector.
The initiative will be the subject of a major conference at the Ministry of Education’s headquarters in Riyadh on Jan. 10-11, 2017.
Held under the auspices of the minister of education, the Investment and Finance in Educational Buildings Conference will focus on new funding initiatives, including Public Private Partnership (PPP) models, investment opportunities and financing options.
Details of this initiative were shared during a press conference held to launch the conference. Those who attended included Tatweer Building Company’s CEO Fahad Al-Hammad, Dr. Saad Bin Saud Al-Fuhaid, undersecretary to the minister of education for private education, Yunus Bin Omar Al-Barrak, undersecretary to the minister of education for infrastructure, and a number of national and international media representatives.
One of the key goals of Saudi Arabia’s Vision 2030 strategy is to promote the development of the Kingdom’s education sector and to upgrade its infrastructure.
The speakers at the press conference highlighted the importance of cooperation between the private and public sectors in achieving this goal.
The conference will focus on promoting engagement between the public and private sectors and will showcase a number of models and incentives that will form the basis for public-private partnerships in building and development infrastructure for the Kingdom’s education sector.
Tatweer CEO Al-Hammad said the conference will facilitate the involvement of investors, developers, suppliers and consultants from the construction, education and real estate sectors both at home and abroad together with banks, financial institutions, researchers and private education institutions to discuss how the industry can move forward as one to meet the goals set out by Saudi Arabia’s Vision 2030.
“I would like to thank the Custodian of the Two Holy Mosques for providing us with this opportunity to hold what will be a unique event in Riyadh,” said Al-Hammad. “We will be discussing the ministry’s public-private partnership initiative in detail, and what this means for building infrastructure investment opportunities in the education sector,” he said.
“For Tatweer Buildings Company, this conference provides a unique opportunity to discuss the role that we will be playing to promote and fulfill the Kingdom’s Vision 2030. The event will also be the ideal occasion to learn more about successful public-private partnerships regionally and globally when it comes to infrastructure in the education sector and to discuss opportunities to invest in and receive financing for the development of buildings and infrastructure that will be used for educational purposes,” added Al-Hammad.
“The conference’s most important topics will include sessions on financial mechanisms related to land-lease building (LLB), build maintain and transfer (BMT), public-private partnership (PPP) models for the private education sector and asset investment vehicles.”
Al-Hammad said the conference will complement the work undertaken by the Council for Economic and Development Affairs by creating public-private partnership investment programs to promote the sector’s development. “This conference and the initiative have received the backing and the support of the Council for Economic and Development Affairs. The initiative is based on the need to engage the private sector as a partner with the Saudi government’s economic and social programs through providing additional capacity for educational infrastructure,” he said.
“As a partner with the ministry, Tatweer Buildings Company has benefited greatly from our work in preparing for and creating this initiative,” explained Al-Hammad. “We’ve employed international experts in the fields of construction and financing, with whom we have undertaken 10 research studies and reviewed 30 different mechanisms in order to promote public-private partnerships for the development of educational infrastructure,” he said.
“This initiative, which we fully support, will become crucial to attracting investment and building real estate projects for education. The ministry’s aim is to markedly improve the time it takes to build high-quality buildings designed specifically for educational purposes. Today, Tatweer Buildings Company is implementing over 590 real estate projects for the education sector, of which 117 have been completed and are ready for use.”
Speaking on behalf of the ministry, Al-Fuhaid explained that the conference was part of the ministry’s plans for supporting the Kingdom’s Vision 2030 strategy. “We are committed to strengthening our partnership with the private sector, so that we have the capacity to deliver the educational infrastructure the country needs. The conference is the right opportunity for investors, both in the Kingdom and globally, to understand more about the private education industry and for us all to discuss and share innovative solutions that will help us deliver the buildings and other facilities needed to meet demand,” he said.
“This event’s timing is important, as we want to highlight the investment opportunities in the private education industry which is expanding rapidly,” said Al-Fuhaid. “We would like to see more private sector involvement in this growth to support our aspiration for higher quality buildings and infrastructure, which is in line with our policy of licensing buildings for educational purposes,” he added.
“The ministry has simplified a number of approval processes for building and developing educational infrastructure projects, including the supply of land in Riyadh for investors who are looking to the sector,” said Al-Fuhaid.
“The opportunities in this area are significant, and the initiative which will be discussed in detail at the conference will lessen the risk for investors and will grow the size of the private education sector. This initiative will also promote the growth of small to medium sized enterprises in the education industry, through lowering costs and providing more means for funding.”
On his part, Al-Barrak said the initiative will boost capabilities in the sector and help meet the goals set out in Vision 2030. “It will improve the overall quality of education in the Kingdom. Building and maintaining high-quality infrastructure and facilities specifically designed for education will improve the quality offered as well as reduce operating costs. This initiative will reduce the cost to the state while also providing the private sector with investment opportunities. We will also be able to rapidly boost the capacity for producing purpose-made education buildings and do away with the need to rent infrastructure that is not designed for this purpose. The Ministry will continue to work with its partners, both public and private in determining how it can further support this sector,” concluded Al-Barrak. — SG
