Saudi builder Binladin says government started to pay dues
Firm had requested a second extension on a $218 mln Islamic loan being used to fund construction at the Grand Mosque
The Saudi finance ministry has resumed payments to Saudi Binladin Group (SBG), the Kingdom’s biggest construction firm, for its work on government projects, Saudi Okaz newspaper reported on Thursday, citing an adviser to the chairman.
SBG was hard hit last year as low oil prices forced the government - its chief customer - to cancel or suspend projects and delay payments.
It was then barred from receiving new state contracts after one of its cranes toppled into Makkah’s Grand Mosque during a storm, killing 107 people, though that ban has now been lifted.
“With the series of payments to follow from the ministry of finance, the entire rights of 10,000 contractors, suppliers, traders that deal with SBG will be met,” adviser Abdullah Basodan told the newspaper.
He said SBG chairman Bakr Binladin had met employees to reassure them about the future of the company.
On Tuesday, sources told Reuters SBG had requested a second extension on a $218 million (817 million riyal) Islamic loan being used to fund construction at the Grand Mosque.