Table 4

Effects of system integration and repair work on individual and organizational actors

Impact of system integration on actors and organizationsNew PPP project requirements which changed routine ways of operatingRepair work to alleviate impact of system integration and implement project
Local private sector actors
  1. Local private construction companies lost project to international firm

  2. Local private actors’ capacity to influence project award decision was eliminated

  3. Operation of project was handed over to international firm

  4. Project awarded only to actors with specified technical capacity

  1. Sophisticated expertise in constructing and operating complex airport projects

  2. High levels of efficiency in operating airport over 25-year period

  3. High levels of transparency in bidding for project

Establishing good project governance mechanisms
  1. Involving IFC during all stages of tendering, bidding, and awarding project, which provided strong governance and transparency-related mechanisms

  2. Selecting only private actors with proven capacity to expand and operate airport efficiently

Bureaucratic and administrative actors
  1. Government departments were unfamiliar with concept of PPP.

  2. PPP required different contractual and administrative measures that Saudi bureaucracy did not have

  3. Government departments could not make decisions that were not aligned with existing policies

  4. Handing airport management to private operator led to frustration among government entities

  1. Familiarity with PPP concept and implementation process

  2. Capacity to administer legal and regulatory requirements for drafting PPP contract

  3. Handover of project to private sector

  4. Understanding of requirements of effective partnership with private sector.

Maintaining dialogue
  1. Explaining importance of project for Muslims all over the world, and for local economy

  2. Explaining that only this project would be implemented as PPP, and no changes were required for entire project implementation process

  3. Making public sector entities part of project implementation process

Capacity building
  1. Helping government entities to administer PPP contracts with assistance of international consultants

Employees and management at airport
  1. Transforming airport from public entity into private operator meant government employees had to sign new contracts as private employees

  2. Drastic changes in administration and operation of airport caused fear, confusion, loss, and resistance among employees who refused to join new operator

  1. Change of organizational identity and culture from public to private

  2. Signing of new contract and abidance by new rules and regulations working for private sector company

  3. Saudi employees having to work under a company owned by foreign businesses and ‘bosses’

  4. New sets of technical and administrative skills and higher expectations of performance, discipline, and attendance

  5. Loss of job security and working under three-year renewable contracts

  6. Longer working hours and fewer holidays

  7. Salary increases and promotions based on strict measures and performance

Identity work
  1. Adjusting government employees’ organizational identity from public to private

  2. Explaining to employees benefits of change for individual employees’ careers and country

Persuasion
  1. Explaining importance of PPP model for increasing number of Muslims performing pilgrimages and for economy

  2. Increasing salaries and introducing new benefits for employees agreeing to shift to private employer

  3. Reminding employees of religious gratification resulting from serving pilgrims going to holy mosques of Mecca and Medina

Capacity building
  1. Providing training to employees on new organizational practices and equipment

Dismissing redundant employees
  1. Laying off unproductive employees as a last resort

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