His Excellency the Minister of Finance, Mr. Mohammed bin Abdullah Al-Jadaan expressed his gratitude and appreciation to the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Deputy Prime Minister and Minister of Defense, on the Council of Ministers' issuance of the resolution approving the new Government Tendering and Procurement Law.
His Excellency stated that the new Government Tendering and Procurement Law comes as an important measure to achieve MOF’s most pertinent Vision 2030 objectives. The new law facilitates the achievement of fiscal balance by enhancing the effectiveness of financial planning, resource management, and elevates government procurement procedures, organization and governance in line with international best practices; comprehensively bridging the shortcomings of the current law and maximising the spending efficiency of new and existing development projects.
His Excellency, The Minister stated "The law will enhance integrity and competition by preventing the impact of personal interests, thereby protecting public funds. It provides fair treatment to all bidders within the principle of equal opportunity, which fulfills one of MOF’s objectives. In addition, the law seeks to allocate and manage financial resources effectively, provides more transparency in all tenders and procurement procedures, such as submission and opening of proposals, through the unified portal (Etimad)".
He also stated that the law has been developed to meet the needs of the public and private sectors. A clear mechanism has been established to adapt the prices of contracts and compensations in the case of increased raw material prices, customs duties, and taxes or if the contractor faces unexpected material difficulties during implementation. Furthermore, the law provides the right for the government entities to issue payments for contractors and subcontractors for any approved direct payments.
The new law went through multiple development phases before the launch, with the team reviewing the current laws and procedures by comparing them to practices in developed economies. Furthermore, various experts and specialists were consulted to bring multiple perspectives to the table and optimize the defined processes.
The Minister also pointed out that the procurement optimization driven by the new law will contribute to the promotion of economic development, contributing to the objectives of local content creation, strengthening national industries, supporting the national talent and increasing employment opportunities for citizens.
The Minister further explained that the law will support local small and medium enterprises, by giving them priority over the larger competition and will exempt them from providing the initial guarantee, carefully developed by researching public aspirations, all while promoting competition. It also promotes sustainable development of companies and devotes the concepts of governance to contribute to protecting its future. The system also encourages family businesses to participate in the financial market, preserving and protecting their future whilst increasing their contribution to GDP.
He added that the new law will maximize the efficiency of government spending by identifying the actual needs of government agencies, improving quality in works and procurement, and even enable evaluation of contractor performance.
The Minister further stated that the role of unified strategic procurement will be done by the Center of Spending Efficiency which will play a pivotal role in new government tendering and procurement moving forward. The delivery of framework agreements will enhance the services and products that are frequently secured by government entities, with issued feasibility studies and RFPs reviewed prior to publishing, standardized RFP forms, contracts and procurement documents, tailored training programs, and streamlined participation in tender committees.
At the end of his statement, the Minister of Finance expressed his gratitude to the Custodian of the Two Holy Mosques and His Royal Highness the Crown Prince, may Allah protect both of them, on behalf of the Minister and the employees of the Ministry as well as the financial sector. All due thanks to the support and interest, which reflected positively on the development efforts which supplements the direction which the Kingdom is taking in multiple fields simultaneously to realize its Vision 2030, deliver a bright and sustainable future and lead us all to development and prosperity.