Following a decision to approve the establishment of the Center for Infrastructure Projects in Riyadh, the Saudi government has set appropriate mechanisms that guarantee the center’s financial sustainability.
According to information obtained by Asharq Al-Awsat, the Ministry of Finance, in partnership with the Government Expenditure and Projects Efficiency Authority, will study the government request for the center’s founding budget, at an amount of SAR 150 million ($40 million).
The study will include the operational and capital expenditures, the annual cash flows, and the mechanism for managing the amounts.
The government also directed the Ministry of Municipal, Rural Affairs and Housing, and the new center, to sign a joint memorandum of understanding that defines the necessary arrangements and mechanisms for the center to exercise the powers entrusted to it, and to specify the appropriate timetable for their implementation.
The Center for Infrastructure Projects undertakes the functions and powers of the Ministry of Municipal Affairs, the secretariat, and the municipalities of the region, which are related to infrastructure works and projects in the Saudi capital, including the issuance of licenses and permits and the collection of fees.
Other tasks include the temporary or permanent withdrawal, cancellation and suspension of permits, in addition to monitoring and inspecting works and taking the necessary actions in this regard.
The center’s financial resources will derive from the state’s general budget, the financial fees in exchange for the granted licenses and services, as well as fines and other resources that are approved by the Council in line with the regulations.
