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The financially-troubled construction company Saudi Oger will likely shut shop and exit its prime market, Saudi Arabia, today.
Once a key player in the Kingdom’s construction sector, Saudi Oger’s struggles began as the sustained decline in oil prices starting 2014 put pressure on the country’s exchequer.
The company, owned by the family of Lebanese Prime Minister Saad al-Hariri, began to flounder as the government was forced to cut spending and payments were delayed.
While the government has stepped in to transfer Saudi Oger’s employees to other firms, its projects, too, have been awarded to other companies.
Argaam takes a looks at Saudi Oger’s portfolio of projects “in progress” in its last days.
King Abdullah Financial District
Saudi Oger was responsible for a 23-storey office tower, with a built-up area of approximately 90,000 square meters, and a five-star hotel, according to the company’s website.
The office tower and the hotel were part of Phase 1 series of buildings, owned by the Public Pension Agency (PPA).
King Abdullah Financial District (KAFD) has listed it as “project in progress,” and noted the project as 91 percent complete.
In 2015, Public Investment Fund (PIF) had offered to buy the Riyadh-based financial hub from PPA. However, the deal has since expired, Reuters reported.
KAFD Monorail
The project was planned on a “design, build and operate” model. It consists of 3.6-km elevated guide way, a depot building, electrical and mechanical (E&M) systems for the automated monorail, with six two-car trains at KADF, Saudi Oger website says.
Bombardier was a sub-contractor to Saudi Oger, to provide the operation and maintenance services for an initial contractual period of 10 years.
“All designs of the train track, stations, and the train mechanical system have been accomplished, and underway is the implementation,” KAFD says on its website.
Haramain high-speed railway station, Jeddah
The project involves construction of Haramain high-speed rail station in Jeddah. The station also includes a mosque, a fire station, and two short- and long-term car parking areas, along with platform, retail area and restaurant, according to Saudi Oger website.
Oger International says its mission included study, coordination, planning and risk and environmental management.
The 450-km-high speed railway line, connects Makkah to Madinah, via Jeddah and Rabigh.
King Abdullah University of Science and Technology (KAUST)
Saudi Oger designed, procured and built the academic and administration campus facilities at the university. The construction firm also held a 15-year contract to operate and maintain KAUST. This project has already been transferred to another company.
The construction firm was also working on King Salman’s palace in Tangier and another project in Mina region, east of Makkah. Both projects have been awarded to other companies.
Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com
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Saudi Oger said to shut down today: report |
HSBC said to advise Pension Agency on sale of Riyadh financial hub |
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