HSBC, Saudi Arabia's Sago to issue RFPs for flour mill privatisation
Four mills will be privatised under a programme that will see RFPs launched on 31 July for pre-qualified bidders
Saudi Arabia’s state-held Saudi Grains Organisation (Sago) is set to start the next phase of its flour mill privatisation drive alongside HSBC Saudi Arabia, with pre-qualified bidders to perform due diligence and present financial offers starting 31 July, 2019.
Requests for proposals (RFPs) will be issued on 31 July, with four flour mills on offer, which Sago said in an Arabic-language statement on its website “present an attractive opportunity for the private sector”.
The launch of RFPs follows the conclusion of the pre-qualification process which was conducted in Q1 2019, Sago added.
Sago’s privatisation programme is in line with Saudi Arabia’s Vision 2030 economic mandate to increase private-sector investments and diversify its economy away from oil.
Sago’s and HSBC’s privatisation programme is supported by Saudi Arabia’s National Centre for Privatisation and PPP.
Saudi Arabia’s Supreme Economic Council (SEC) approved Sago’s privatisation strategy in 2011, and recommended that all its wheat and feed milling operations were bundled under four companies.
At the same time, SEC also made Sago the regulator for Saudi Arabia’s wheat and flour sector, following which, Sago’s operating model and implementation plan for privatisation was approved in 2013.