Bechtel bags contract to manage key Saudi projects body

US-based Bechtel has won a contract to help establish and operate Saudi Arabia’s National Project Management Organization (NPMO), a new key body that will oversee the kingdom’s capital expenditure projects.

Under the deal, the construction firm will mobilize experts to develop systems and processes for the NPMO, share these tools across all Saudi government ministries and entities, and train Saudi nationals, said program director Georges Chahine.

No details were disclosed on the contract value.

Established in 2015, the NPMO will help local government agencies deliver complex infrastructure projects in line with Saudi Arabia’s Vision 2030 reform plan.

Last October, MEED reported that Bechtel, along with Aecom and Parsons, had been shortlisted by Riyadh for the role.

Saudi Arabia had allocated funding for government departments and related entities earlier in 2016 to hire consultancies to set up project management offices (PMOs) in the country.

Program management – a methodology for managing large and complex projects – has become a key focus for the Saudi government as it looks to curtail spending and increase returns from its capital investment program.

PMOs will help in achieving privatization targets set by the Saudi government, which has identified about 146 state-owned entities for privatization in order to narrow the kingdom’s budget deficit caused by the slump in oil prices.