Saudi builder Khodari secures $18.4 mln government contract

 05 Jan 2017 - 17:26

Saudi builder Khodari secures $18.4 mln government contract

Reuters

DUBAI: Saudi Arabian construction firm Abdullah Abdul Mohsin al-Khodari and Sons has secured a 69 million riyal ($18.40 million) contract with the Ministry of Environment, Water and Agriculture, it said on Thursday.

The 36-month contract includes the maintenance of water networks and their ancillaries, it said in a statement.

The financial impact of the project started during the third quarter of 2016, it said.

Contractors in the kingdom have been beset by delays in recovering payment and some projects have stalled as the government grapples with plugging a budget deficit because of lower oil prices.

Khodari estimated in November that projects it was working on worth 362.2 million riyals had been delayed due to factors ranging from clients’ funding shortages to slow visa issuance.

The government last month said it had settled unpaid bills to the private sector and promised to pay future bills within 60 days of receiving them.

($1 = 3.7506 riyals)

(Reporting by Tom Arnold; editing by Susan Thomas)