Jeddah gets three public transport projects

riyadh — Saudi Arabian authorities have announced three public transport projects in the port city of Jeddah, a sign that a freeze on new infrastructure work in the kingdom may be easing as the government slows its austerity drive.

The projects are a tram line along Jeddah’s northern Corniche, a marine taxi service and a bridge linking two of the city’s neighbourhoods, the Saudi Gazette reported on Monday, quoting an official statement.

The projects are open to participation of the private sector, the statement said, reflecting a new effort by the government to save money by persuading private investors to share the financial burden of building infrastructure.

Few new projects were announced in the kingdom last year as the government, its finances strained by low oil prices, clamped down on spending.

This year, oil prices are about $10 a barrel higher than last year’s average and with the government’s deficit projected to narrow, the 2017 state budget is slightly less austere. Spending on infrastructure and transport is slated to rise 39 per cent from last year’s actual level.

Prince Khaled Al Faisal, governor of the Makkah region, stressed in the statement that public transport projects in the area were crucial to meet the government’s goal of sharply increasing the number of foreign pilgrims visiting Makkah.

A study by consultants Faithful+Gould, released last week, estimated project awards by the government would total $27 billion this year, compared with about $20 billion last year and $35.5 billion in 2015. — Reuters