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Saudis hire PwC to advise on scrapping projects of $20b

|By Arabian Post Staff| Saudi Arabia is working with PricewaterhouseCoopers on plans to cancel about $20 billion of projects as the kingdom seeks to shore up its finances, Bloomberg reported quoting sources.

The Ministry of Economy and Planning hired the consultancy firm to review $69 billion of government contracts with a view to cutting about a third of them, it quoted sources as saying.  Projects under review reportedly include contracts awarded by the ministries of housing, transport, health and education, they said, adding that PwC’s role also includes advising on ways to cut project costs or privatize them.

Under Deputy Crown Prince Mohammed bin Salman, Saudi Arabia is aiming to rein in spending to narrow a budget shortfall that reached nearly 300 billion riyals ($80 billion) last year after oil prices slumped. The kingdom set up an office to limit government spending, according to this year’s budget that was announced in December.

Authorities also set up the National Project Management Office last year to control capital spending and ensure that government projects are carried out efficiently. -With Bloomberg