Electricity Ministry saves SR1.4b with value engineering methods

Electricity Ministry saves SR1.4b with value engineering methods
Updated 13 September 2013

Electricity Ministry saves SR1.4b with value engineering methods

Electricity Ministry saves SR1.4b with value engineering methods

The Ministry of Water and Electricity has introduced cost cutting and innovative techniques — known as value engineering — which has resulted in savings of SR1.4 billion from 44 projects undertaken worth SR8.8 billion.
This was revealed by Minister Abdullah Al-Hussayen during his inaugural address here at the third forum for value engineering organized by the Saudi Electricity Company (SEC).
About 400 delegates are attending the forum entitled “Continuous Development and Application.”
Al-Hussayen said the implementation of value engineering would continue to ensure the government saves on costs while maintaining the quality and performance of its projects.
Muhammad Bagdadi, undersecretary for planning and development, said the ministry has established a general department for value engineering.
“The department is linked to the Saudi Electricity Company and the National Water Company,” he said.
He said the department has already trained 2,000 trainees and completed studies on 28 projects implemented by the ministry last year. “These have ensured savings of 33 percent of total costs,” he said.
Ali Al-Barak, chief executive officer of the SEC, said the forum would focus on the use of scientific methods adopted globally to plan, study and implement projects.
“We are committed to fulfilling the mission of the company to provide highly reliable electrical power at the lowest possible cost,” said Al-Barak.
He said the company is using value engineering to improve the country's electrical supply system. He said electricity demand is growing by 9 percent annually.