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Saudi Arabia

SR110 billion government contracts approved in six months

The Ministry of Finance has approved 1,858 contracts with a net value of SR110 billion in the first half of the current fiscal year as compared to 1,537 contracts valued at SR78 billion for the corresponding period last year, local media reported.
Of the total contracts approved, 92 pertained to meeting running expenses at government agencies like medicines, accommodation and fuel at a cost of SR3.10 billion, while SR19.78 billion was allocated for 455 contracts for operation, maintenance and cleaning, a local daily said.
In total, 1,311 construction projects accounted for SR87.10 billion of which 302 contracts were allocated for municipal and rural projects at a cost of SR8.95 billion, whereas 129 contracts were allocated for roads and other infrastructure projects at a cost of SR20.61 billion.
On the other hand, SR11.02 billion was allocated for universities, schools and training facilities, SR23.47 billion for hospitals and health facilities, SR5.29 billion for water, dam and sanitary projects and SR17.74 billion for other related projects. The number of re-assessed contracts increased 41 percent in the first half of the current year compared to the corresponding period last year. The increase was mainly attributed to the addition of four mega contracts for government buildings and health facilities, the paper said. The number of contracts approved by the Ministry of Finance from the beginning of the fiscal year to the end of the first quarter reached 952 contracts valued at SR73.91 billion compared to 592 contracts valued at SR42.93 billion last year, the paper said.
However, these allocations do not include contracts valued at less than SR5 million and whose duration is less than one year which are carried out by government agencies without the need to get approval of the Ministry of Finance in accordance with government procurement and bidding system, the paper said, quoting a ministry statement.

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