Saudi Arabia’s Ministry of Municipal and Rural Affairs has extended the deadline for consultants to submit proposals for the contract to provide consultancy services to the ministry’s project management office (PMO).

Firms will now submit bids in February for the role instead of January.

It is understood that the firms that have been invited to submit proposals include:

  • Aecom (US)
  • Atkins (UK)
  • Bechtel (US)
  • CH2M (US)
  • Hill International (US)
  • Parsons (US)

According to regional projects tracker MEED Projects, the ministry has $13.2bn of projects, of which $11bn are in the pre execution phase.

The request for proposals (RFP) is the second PMO deal to be tendered in Saudi Arabia this year. Consultants submitted proposals in July to provide consultancy services for the National Project Management Office (NPMO), which will oversee future capital expenditure projects in the kingdom. It is understood that negotiations with bidders for that deal are still ongoing and an award is expected during the first quarter of 2017.

The kingdom is turning to programme management, a methodology for managing large and complex schemes, as a way of containing spending and increasing returns from infrastructure investments.

The government has established a unit to control state expenditure. It has already cut future project spending in the kingdom by SR100bn ($27bn), and could slash a further SR531bn.

Riyadh’s vision for construction becomes clearer

Riyadh

Riyadh

Riyadh

Riyadh’s vision for the construction sector has become a little clearer with the release of the Saudi 2017 budget and the Fiscal Balance Programme 2020 document.

The government wants to do two things. It acknowledges that it needs to deliver new infrastructure to enhance services for its people. It also wants to control spending and eradicate the wastage it feels became habitual during the 2002-2014 oil boom.

The problem is that the two objectives appear to be at odds with one another.

The Saudi Budget promising a near doubling of infrastructure and transport spending to SR52.1bn ($13.9bn), up from the SR30bn allocated in the 2016 budget.

At the same time the Fiscal Balance Programme 2020 document reveals that the Bureau of Capital and Operational Spending Rationalisation could end up cutting $168bn of project spending. Read more