Restructuring and Privatization Plan for a Large Public Sector Engineering Company in a Middle Eastern Country
BACKGROUND & OBJECTIVE
A major public sector engineering company in the Middle East sought to enhance industry performance and reduce government involvement by transitioning toward privatization and self-sustainability. Historically reliant on federal funding, the company required a comprehensive restructuring plan and a Public-Private Partnership (PPP) model to attract private sector partners. The key objective was to assess current company performance, conduct an asset valuation, and develop a privatization roadmap to improve efficiency, modernize operations, and establish a structured engagement framework for private investment.
PROJECT APPROACH
The project followed a structured multi-phase approach, beginning with an operational performance assessment to identify inefficiencies across functions and departments. A strategic roadmap was developed, outlining privatization objectives in coordination with key government stakeholders. The project team also defined a PPP model, identified potential private sector partners, and initiated discussions for collaboration. To facilitate implementation, a restructuring office was established, ensuring that transformation efforts were systematically executed. The final phase focused on enabling revenue generation, allowing the company to transition away from reliance on government funding toward self-sufficiency.
OUR METHODOLOGY
A combination of strategic assessment and implementation tools was deployed to drive the transformation. The “5 S” Strategic Assessment Framework was used to analyze inefficiencies and identify areas of optimization. Productivity benchmarking methodologies were applied to compare performance against global engineering industry standards. A Privatization Roadmap and Strategic Horizon Model was developed to provide a structured framework for transitioning from a state-owned entity to a public-private partnership model. Additionally, an Implementation Plan with reporting and monitoring mechanisms ensured that transformation initiatives were effectively executed and tracked.
THE RESULTS
The project successfully delivered a comprehensive business and asset valuation assessment, forming the foundation for a strategic restructuring plan. Key government stakeholders approved the PPP model and privatization roadmap, enabling the company to move toward industry best practices. The project team also initiated discussions with private sector partners, drafting Memoranda of Understanding (MoUs) for future collaboration. A Project Management Office (PMO) was established to oversee the implementation of restructuring initiatives and ensure that privatization efforts were effectively managed.
