JEDDAH, 19 March 2007 — Work began yesterday in Jeddah’s downtown area and the Al-Sabeel district to demolish houses as part of a regeneration plan to develop the areas and widen roads to lessen traffic jams.

Khalid Baraidah, head of the municipality branch in Balad, said the demolition plan was in its first phase and that 165 houses were demolished in Al-Sabeel.

House owners were given compensation from a budget of SR56 million for the purpose.

Building owners are being compensated according to the size and location of their property. Baraidah added that municipality officials have studied the area and estimated compensation to range from SR1,000 to SR1,500 per square meter.

The demolitions are being carried out jointly by the municipality, Saudi Telecom Company, the Electricity Company, the Water and Sewage Department and the police and traffic police departments.

Baraidah said that as soon as demolition work finishes in the Al-Sabeel district they will move on to other southern parts of downtown Jeddah. The municipal official added that both areas will be developed by the end of the year.