Saudi Arabia Implements Mechanisms to Ensure Financial Sustainability of Riyadh’s Infrastructure Center

 Several mega projects are being implemented in the capital, Riyadh. (SPA)
Several mega projects are being implemented in the capital, Riyadh. (SPA)
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Saudi Arabia Implements Mechanisms to Ensure Financial Sustainability of Riyadh’s Infrastructure Center

 Several mega projects are being implemented in the capital, Riyadh. (SPA)
Several mega projects are being implemented in the capital, Riyadh. (SPA)

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.



Spain Gives Green Light for Saudi STC to Raise Stake in Telefonica to 9.97%

STC said it aimed to build up an interest of 9.9% in the Spanish telecoms company worth around 2.4 billion euros ($2.53 billion) and become a major shareholder - File Photo
STC said it aimed to build up an interest of 9.9% in the Spanish telecoms company worth around 2.4 billion euros ($2.53 billion) and become a major shareholder - File Photo
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Spain Gives Green Light for Saudi STC to Raise Stake in Telefonica to 9.97%

STC said it aimed to build up an interest of 9.9% in the Spanish telecoms company worth around 2.4 billion euros ($2.53 billion) and become a major shareholder - File Photo
STC said it aimed to build up an interest of 9.9% in the Spanish telecoms company worth around 2.4 billion euros ($2.53 billion) and become a major shareholder - File Photo

The Spanish government has given the green light to Saudi Arabia's largest telecoms operator, STC Group, to raise its stake in Telefonica beyond 5% and reach 9.97%, Economy Minister Carlos Cuerpo said on Thursday.

Cuerpo confirmed an earlier report by El Pais newspaper during a news conference following the cabinet's weekly meeting in which the stake increase was approved, Reuters reported.

"Measures and conditions have been set and accepted voluntarily by the Saudi company to ensure that (the operation) takes place," Cuerpo told reporters.

He said the government's decision followed an "exhaustive analysis based not only on compliance with current legislation but also to guarantee the national interest in defense and ensure the strategic element in telecommunications".

Last year, STC said it aimed to build up an interest of 9.9% in the Spanish telecoms company worth around 2.4 billion euros ($2.53 billion) and become a major shareholder.

The Saudi group said at the time it owned a 4.9% stake in Telefonica and financial instruments giving it another 5% in what it called economic exposure to the company.

The Spanish government had to authorize the deal as Telefonica is considered a defence service provider and therefore a strategic company.

The Saudi company has said it does not intend to gain control of or a majority stake in Telefonica.