
US firms are competing to set up project management organisations
As US President Donald Trump prepares to visit Saudi Arabia next week there is widespread expectation in the kingdom that US companies bidding for contracts will be immediate beneficiaries of the visit.
Firms bidding for consultancy work in the kingdom say that they expect US-based companies to have an edge when it comes to awarding new deals over the summer. This is partly statistical, as a significant proportion of the firms competing for work are US-based, but it may also reflect warming relations between Riyadh and Washington.
The main area of focus for firms bidding in the kingdom in the construction sector is for consultants to assist with setting up project management organisations (PMOs) that are being set up at the individual ministries and government agencies that will manage and control future capital spending on projects.
The Ministry of Health recently approached consultants to help it set up a PMO, and firms are also competing for the contract to provide consultancy services to the Ministry of Municipal and Rural Affairs PMO.
Other organisations are expected to tender PMO deals this year. They include the Ministry of Transport, the Ministry of Justice and the Ministry of Housing.
Any potential award to US companies will follow the appointment in February of Bechtel to support setting up and operating Saudi Arabias National Project Management Organisation (NPMO).
Known as Mashroat, the NPMO will support Saudi government agencies to effectively deliver complex infrastructure projects. The National Project Management Organisation was formed by the Ministry of Economy and Planning in 2015.
If other US firms follow Bechtels lead, then they could be the first beneficiaries of Trumpononics.
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