Saudi Arabia will freeze and modify projects worth billions of dollars


A government resource says that KSA forward Ministries and bodies to Review Not finished projects with billions of dollars in infrastructures and economic development for frozen or rebuilding it.

And the resources reported Reuters that capital expenditure rationalising office who had started last year to reinforcement government efficiency putting a list of projects that it’s done didn’t receive to 25 percent.

A lot of project being to pack an extremely government expenditure and petrol prices leap that ended in half of 2014 when raw prices started to decline, and the difficult thing is providing the money that Riyadh needs to complete it.

The responsible on these projects facility’s study under and government reform program Leeds to variegation the economic supplemental the depends on petrol and saying if we have to freeze it completely or trying to improve it.

And a resource who has to see the plan said ” maybe some disposable projects will represent them to share private sector with converting property, operation and buying contracts ” and the source asked to not publish his name because it’s not publicly yet.

According to converting property, operation and buying contracts the investors from the private sector to operate, construction and funding the projects for a period of time to make profits then convert the property to the government. And riyadh said that it want the private sector to get involves with projects to relief pressure from managerial finance.

And the resource said ” maybe other projects will be delayed for not fitting the economic targets ” adding the recommendations for some projects may present within few days.

In order to fill a huge budget deficit because of the low oil prices, the government intensely cut the spending on the Infrastructure last year,
And the minister of the treasury Mohamed jadaan said in last February The Rationalization of spending Office saves over 80 billion riyals ($ 21 billion) for the kingdom
 


The unfinished project review plan foresees that is the Government is targeting significant additional savings this year, and in last year report  the government said  that the estimated cost of completing all capital expenditure projects under implementation are about 1.4 trillion riyal
 

 a report in January, Faithful Gold consultancy  said that its estimate that  government projects worth at least $ 13.3 billion