{"id":4737,"date":"2015-05-03T13:05:28","date_gmt":"2015-05-03T10:05:28","guid":{"rendered":"http:\/\/www.amlak.net.sa\/?p=4737"},"modified":"2015-05-03T13:05:28","modified_gmt":"2015-05-03T10:05:28","slug":"100-%d9%85%d9%84%d9%8a%d8%a7%d8%b1-%d8%b1%d9%8a%d8%a7%d9%84-%d9%82%d9%8a%d9%85%d8%a9-%d8%a7%d9%84%d9%85%d8%b4%d8%a7%d8%b1%d9%8a%d8%b9-%d8%a7%d9%84%d8%ad%d9%83%d9%88%d9%85%d9%8a%d8%a9-%d8%a7%d9%84","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/4737\/","title":{"rendered":"Stalled government projects across the Kingdom are valued at 100 billion riyals"},"content":{"rendered":"

\u00a0\u00a0 <\/span>Many government projects suffer from prolonged delays; several government agencies have recently identified delays in more than 4,000\u00a0\u00a0<\/span>Project and Profile of These Entities\u00a0 <\/span>Reasons for the stalling of more than 1,000 projects, most of which are funded by the budget surplus; projects under the Ministry of Education are the most affected, as the Authority identified 894 stalled or delayed projects, In the electricity and water sectors, there are 802 stalled projects, and 391 stalled projects under the Ministry of Municipal and Rural Affairs, in addition to other stalled projects currently being classified.<\/p>\n

Reasons for Failure<\/b><\/span><\/p>\n

And they differ\u00a0 <\/span>Reasons\u00a0 <\/span>Projects have stalled, and perhaps\u00a0 <\/span>One of the most significant of these is the shortage of licensed construction companies that\u00a0 <\/span>There are no more than 500 Saudi companies involved in the large number of projects currently underway in the Kingdom; furthermore, as a number of real estate experts and contractors point out, project failures are among the main causes of these setbacks.\u00a0 <\/span>It focuses on a number of issues, including delays in recruitment, delays in issuing visas lasting more than 90 days\u2014to the point where projects begin without the workers having arrived\u2014as well as the awarding of some projects to contractors who lack the administrative, technical, and financial capabilities necessary to execute large-scale projects, as well as delays in the payment of dues to contractors by some government sectors, and the poor efficiency of certain technical supervisory bodies affiliated with a number of government agencies.<\/p>\n

The Anti-Corruption Commission (Nazaha), the regulatory body overseeing the performance of government agencies, stated in its latest report that\u00a0 <\/span>It has reviewed numerous projects being implemented by government agencies and identified many delayed and stalled projects, some of which are suspected of involving corruption and nepotism, and others due to a lack of oversight of implementation. Since the Authority\u2019s establishment, a total of 1,526 projects have been assessed, of which 44 percent\u2014or 672 projects\u2014were found to be stalled or delayed. .<\/p>\n

Nazaha addressed the reasons for project delays and setbacks\u00a0 <\/span>which centers on several issues, the most important of which are: a lack of planning; a lack of clarity during the feasibility study and design phases; a failure to properly prepare project documents before putting them out to bid; inadequate analysis of the project\u2019s nature; awarding contracts to the lowest bidder without considering technical capabilities; awarding contracts to contractors with other stalled projects that exceed their financial and technical capacities; the lack of competence among members of the preliminary and final project acceptance committees; the absence of a Project Management Office (PMO); poor coordination among service providers involved with project sites and operations; Inadequate infrastructure databases maintained by the relevant authorities; frequent change orders during project implementation; excessive subcontracting without the project owner\u2019s approval; and government agencies\u2019 failure to enforce procedures for terminating a contractor\u2019s contract.<\/p>\n

Stalled Projects Worth 001 Billion<\/span>\u00a0<\/b><\/p>\n

An official revealed\u00a0 <\/span>The Jeddah Chamber of Commerce reported that the value of stalled government projects amounts to approximately 100 billion riyals, due to several reasons, as\u00a0 <\/span>Abdullah Radwan, chairman of the Contractors Committee at the Jeddah Chamber of Commerce and Industry, explained that government projects that have stalled in recent months account for more than 30 percent of all government projects currently under construction.<\/p>\n

He noted that there are directives and a call for a unified national database of government projects to assess their current status, determine the scale of projects that have been completed or are underway, and identify those that are delayed or stalled. The chairman of the Contractors Committee at the Jeddah Chamber of Commerce and Industry called on the Ministry of Labor to act swiftly, respond promptly, and revitalize the recruitment process and staffing agencies, which will undoubtedly help bridge the gap in the labor market and provide the skilled workforce needed to carry out these projects.<\/p>\n

He explained\u00a0 <\/span>A real estate expert stated that the value of stalled government projects in various regions of the Kingdom exceeds 100 billion riyals. He noted\u00a0 <\/span>He added that the coming days will see even greater delays in projects, attributing this to several reasons, including a shortage of labor, and even if workers are available, they will be few in number, which will lead to higher wages. He also noted that another factor contributing to project delays is the unjustified rise in the prices of construction materials.<\/p>\n

Government Measures <\/b><\/span><\/p>\n

The government has taken several measures to curb project delays, directing efforts to resolve such issues and barring contractors with a history of delays from being awarded government projects for a period of three years. Last year, the Council of Ministers also issued a decision allowing foreign companies to participate in infrastructure projects, which will help resolve the stalling of more than 4,000 projects across the Kingdom, in addition to issuing \u00a0 <\/span>Decision\u00a0 <\/span>No. 260, which includes a number of provisions addressing the problems of stalled projects, the implementation of which has been entrusted to several government agencies and chambers of commerce, as well as a number of\u00a0 <\/span>These decisions have identified the problem and also outlined the means and mechanisms to address it; if government agencies work to implement the Cabinet\u2019s decisions and the royal directives, the problem of stalled projects will be resolved once and for all.<\/p>","protected":false},"excerpt":{"rendered":"

Reading time: <\/span> 3<\/span> Minutes<\/span><\/span>\u00a0\u00a0 Many government projects have been stalled for long periods of time; several government agencies have recently identified more than 4,000 stalled projects and identified the causes of delays in over 1,000 projects, most of which are funded by budget surpluses. Projects under the Ministry of Education are considered the most stalled, as the authority identified delays and stalled implementation in 894 projects; in the electricity and water sectors, there are 802 stalled projects and 391 projects \u2026 Read more<\/a><\/p>","protected":false},"author":10,"featured_media":4738,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"0","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","_seopress_news_disabled":"","_seopress_video_disabled":"","_seopress_video":[],"_seopress_pro_schemas_manual":[],"_seopress_pro_rich_snippets_disable_all":"","_seopress_pro_rich_snippets_disable":[],"_seopress_pro_schemas":[],"footnotes":""},"categories":[145],"tags":[],"class_list":["post-4737","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-major-projects"],"acf":{"amlak_post_excerpt":"","amlak_post_excerpt_source":{"label":"Amlak 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