Riyadh - Mubasher: Abdullah Abdul Mohsen Al Khodari Sons Company announced receiving the approval from the Ministry of Municipal and Rural Affairs (MOMRA) concerning its request to assign the Municipality of Taif project to Moenes Mohamad Al Shayeb Civil Works Co. (MOBCO), according to a bourse filing released on Monday.
The company stated that its request was among reform measures taken to deal with the negative impact of the 2011 labour market’s reforms, added to the liquidity issue resulting from delayed payments.
Al Khodari is planning to reduce its focus on the markets facing challenges and modify the number of the government projects in favour of projects that are not related directly to government spending and which have not been affected by the delay in due payments.
Through this plan, Al Khodari aims to achieve the optimum investment of its resources, according to the statement.
The value of work executed by the company in the Taif project up to the date of MOMRA’s approval for the assignment request amounted to SAR 16.47 million. The assignment will have negative financial impact, posting SAR 19.4 million losses.
In March 2014, the company won the bid to build a project for the municipality of Taif at a value of SAR 144 million.
