Abdullah A. M. Al-Khodari Sons Co. announces latest development concerning the award of construction of Municipality Building in Taif valued at SAR 143,999,446.
Following Company announcement on 20/03/2014 concerning winning the award of construction of Taif Municipality Building project from Ministry of Municipal and Rural Affairs (Municipality of Taif) valued at SAR 143,999,446 (Saudi Riyal One Hundred Forty Three Million Nine Hundred Ninety Nine Thousand Four Hundred Forty Six), Abdullah A. M. Al Khodari Sons Co. announces receipt of Ministry of Municipal and Rural Affairs approval of Company request to assign the Contract to Messrs. Moenes Mohamad Al Shayeb Civil Works Co. (MOBCO) as per the letter received by the Company on 26/06/2016.
The Company would like to point out that it had made the assignment request as one of several measures of a bigger plan being implemented by the company to deal with the existing challenges of labor market reform measures and their immense negative impact since 2011 on delivery of projects, liquidity, profitability, talent retention, capacity, development, growth , as well as the recent added market liquidity issues due to delayed payments so as to minimize concentration on markets that are likely to face changes, and to reduce the ratio of Government Projects in its portfolio in favor of projects with budgets not directly linked to Government spending and not affected by delays of due payments or banks shying away from financing, aiming at optimum investment of Company resources.
The value of work executed by the Company in this Project up to the date of approval of assignment request is SAR 16,467,360 (Saudi Riyal Sixteen Million Four Hundred Sixty Seven Thousand Three Hundred Sixty), and the financial impact of this assignment is estimated at SAR 19,400,000 (Saudi Riyal Nineteen Million Four Hundred Thousand) approximately.
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