HSBC Saudi Arabia is acting as financial and lead advisor to Tatweer Buildings Company (TBC), in its capacity as joint procurer along with the Ministry of Education (MOE) for the Schools Infrastructure Development Program, the Kingdom’s pioneering education public-private partnership (PPP) program.
The program consists of multiple “waves” that aim to improve the quality of school buildings, while increasing overall private sector involvement in the education sector, and providing both qualitative and quantitative value for money for the Kingdom. The successful signing of the Wave 1 project agreement marks the first social infrastructure PPP in the Kingdom, and supports the goals of Saudi Vision 2030 in diversifying and improving the education sector.
The Wave 1 project will see the private sector build, maintain and eventually transfer back to the government, 60 schools in Jeddah and Makkah.
It will be the first of multiple waves to be introduced to the market. The project will be operational within three years and will benefit more than 50,000 students across both cities. The schools will provide students with state-of-the-art education facilities, sufficient entertainment space, and infrastructure to encourage sports. The PPP solution would allow the private sector to build and maintain the schools for a period of 20 years before transferring the responsibility back to the public sector.
HSBC Saudi Arabia’s CEO Rajiv Shukla said: “As the financial and lead advisor for this project, we supported TBC on key commercial structuring elements in addition to supporting the public and private sector parties in navigating the challenges raised by the COVID-19 crisis, and contributing to the success of the Wave 1 project.
We continue to work closely with all stakeholders, including TBC, MOE, the National Center for Privatization and PPP and the Ministry of Finance on the next wave.”