Saudi crown prince and German president discuss regional developments    OPEC+ reaffirms commitment to production cuts to ensure oil market stability    Saudi Economy Minister meets German Finance Minister in Riyadh    Saudi Sherpa Office holds first G20 workshop in preparation for 2025 summit    Non-oil activities account for 52% of Saudi Arabia's GDP in 2024, says finance minister Saudi-German roundtable in Riyadh explores economic cooperation, and investment opportunities    GACA president inaugurates Air Cargo Security Control Center The center enables real-time remote inspection and monitoring of air cargo across Saudi Arabia    Saudi Arabia, Germany agree to establish Green Hydrogen Bridge    Syrian President visits Saudi Data and Artificial Intelligence Authority    Trump takes aim at EU and UK in latest tariff threat    Spain's former football boss on trial over World Cup kiss    Thousands protest against German far-right in Berlin    Taiwanese star Barbie Hsu of Meteor Garden fame dies    Major highway partly collapses as Australian floods worsen    Grammy Awards 2025: Beyoncé wins best country album    Imavov knocks out Adesanya in second round as Riyadh Season hosts thrilling UFC night    Museum Authority to open second edition of 'Art of the Kingdom' exhibition in Riyadh    Al Ittihad stages dramatic comeback to defeat Al Kholood 4-3 in thriller    Al Nassr signs Colombian striker Jhon Durán from Aston Villa    Saudi composer Nasser Al-Saleh passes away at 63    Saudi drama icon Mohammed Al-Towayan passes away at 79    Bollywood star Saif Ali Khan 'out of danger' after attack at home in Mumbai    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Billions lost in stalled projects
Published in The Saudi Gazette on 14 - 11 - 2008

Every year, the government approves hundreds, and sometimes thousands, of new development projects worth billions of riyals destined for rural areas. The hopes of locals, however, are soon dashed as companies sub-contract out the work and then what is known as the “tortoise” phase begins.
As deadlines come and go without any sign of work being completed, the buck is passed from officials to contractors to subcontractors, each in turn blaming a variety of factors, such as a rise in the price of raw materials or the cost of labor, until the works become no longer merely stalled, but effectively dead in the water, incurring vast losses of funds.
Abdulaziz Al-Khodairi, the Makkah governorate undersecretary says that in the province of Makkah alone there are projects worth billions of riyals which have not even started. He cites SR3 billion-worth of Ministry of Health projects awarded to major contractors who then subcontracted them out to smaller companies until the details of any given plan become ever more obscure and responsibility ever more diffuse.
The situation is not much different in Taif. Hisham Al-Zeer, head of the municipal council, points to the Taif-Baha Highway, and the Oqbat Al-Muhammadiah Project which saw its foundation stone laid seven years ago by then Crown Prince Abdullah.
Al-Zeer says that contract bidding does not demand of companies all the details and information that are necessary to make a reasonable estimation of a project's worth and timescale.
“Contractor bids should include not just financial tenders,” Al-Zeer says, “but also technical ones so that a comparison of prices can be made once the best technical tenders have been selected. This would ensure that the contractor has an intimate knowledge of the project and would be capable of execute it to the required standard. Some contractors do not even know what their expenses will be before making an offer.”
Higher penalties
Ahmad Bin Nasir Al-Obaikan of Tourism Development in Taif calls for greater penalties on contractors for delays and the canceling of their permits, noting that the current 10 percent deduction imposed on companies is no longer enough for those who “does not care.”
Al-Obaikan mentions a sewage network project in 3 Taif city districts, the contracts for which were signed a year ago, and which has still not seen works begin.
“There are companies that manipulate contracts and obstruction development,” Al-Obaikan said. “If there were an immediate and severe penalty in place, serious contractors would appear. Many private projects are carried out on time and in an immaculate fashion because they are tendered out to well-known companies.”
Locals in Al-Qahar Mountains in the region of Al-Reeth complain of a lack of roads and communications. Territory is rough and travel slow.
“Cars do not last long here”, says Sha'ban Al-Reethi, Sheikh of Aal Ahmad tribe. “The road is rugged and tough on vehicles.”
The road is not what locals were expecting in 1996, when the minister of transportation at the time, Nasir Al-Saloum, laid the foundation stone for the 15-km Jibal Al-Qahar Road. Work on the road, however, has still not begun.
“The executing company,” Sheikh Al-Reethi says, “deprived us of a road by transferring the project to subcontractors.”
Some projects do a little better. The Al-Dhobayah bypass, approved six years ago, has seen 30 percent of it completed. The projected distance of the road according to the contract, however, was only 2 kilometers.
Head of Sabia Municipality, Abu Bakr Mat'har, says the scheme was passed on to the contractor some time ago, but its equipment was being used for other projects first, resulting in a delay for the bypass. Mat'har says the contractor has promised to resume work soon.
Still in the dark
In Jizan'a Manjad and Sahaleel, people still use oil lamps while they wait for the Manjad Electricity project, awarded to a contractor two years ago, to see the light of day.
Mohammad Al-Quwaihis, chairman of the Services and Facilities Committee at the Shoura Council, says subcontractors are used as standard practice all over the world, but that international measures should apply and an entire project should not be given to subcontractors.
Al-Quwaihis says that while subcontractors are a factor in projects being stalling, they are not the main reason.
“We in the Shoura Council have studied the reasons for delays and found that it is mainly due to price hikes, especially in iron, and delays in contractor fees, as well as problems in supervision and delays in handing over the location to the contractor and in the funding.”
With additional reports by Mohammad Sa'eed Al-Zahrani and Majid Aqeeli – Okaz/SG __


Clic here to read the story from its source.