Financially troubled Saudi Oger Ltd is still waiting for the findings of a government-commissioned review into its multibillion-dollar projects across the kingdom, Reuters reported on Tuesday, citing unnamed banking sources with knowledge of the matter.
PricewaterhouseCoopers (PwC) was mandated by the government to conduct a review of the company’s projects, define outstanding payments owed by the government and determine whether Saudi Oger will continue working on its projects.
No exact information were provided on which projects were included in the probe, but the portfolio included King Abdulaziz Center for World Culture, the King Abdullah Financial District in Riyadh and the King Abdullah International Conference Center in Jeddah, according to Saudi Oger's website.
The review outcome is to be announced before the end of January, the sources added.
The construction group’s dues are estimated at nearly SAR 30 billion.
Meanwhile, a liquidity crunch at the distressed firm had stalled many of its building projects for the past six months. Oger continued only to work on its maintenance projects.
As an outcome of the review, Saudi Oger could continue working on the projects until completion, if the government makes sufficient payments to the troubled builder.
However, banks may lose the money owed by the troubled firm if no payments are fulfilled, the sources added.
The construction giant had earlier negotiated with Saudi banks to restructure about SAR 13 billion, Argaam earlier reported.
Alawwal Bank and Banque Saudi Fransi had recently joined National Commercial Bank (NCB) and Samba Financial Group in seeking court orders demanding payment.
The construction group, which is owned by the family of Lebanese Prime Minister-designate Saad al-Hariri, has been hit by a decline in government spending after a drop in oil prices.
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