By Reuters www.arabianbusiness.com
Saudi Arabia is proceeding with public transport projects as scheduled and companies may face penalties if there are delays, Minister of Transport Abdullah al-Muqbil was quoted as saying by a leading Arabic newspaper on Sunday.
With low oil prices slashing the government’s export revenues and forcing it deep into deficit, the finance ministry has said it is trimming expenses, and there has been speculation that the budget for public transport infrastructure could be one victim.
Spanish train maker Talgo said in July that Saudi Arabia had cancelled a $201 million contract for six high-speed trains; neither the company nor the government gave a reason.
Some construction industry executives have reported delays in obtaining payment from Saudi government bodies, though others have experienced no problems and it is unclear if any delays are due to a tight budget rather than to the bureaucratic inefficiencies which are common in the region. More info
