Payment delays of completed projects are still adversely affecting contracting companies, with a severe hit on the cash flow and liquidity of the entire sector. “Many companies were not paid for at least six months. The delay in payments is becoming longer (six months can be an average). We are discussing with the Ministry of Finance. The ministry is working hard to make those payments as far as possible in view of present economic conditions,” Shahswar Al Balushi, chief executive officer of Oman Society of Contractors (OSC). OSC has suggested the concept of a bond-like instrument called IOU (I-Owe-You) to pay outstanding bills of contracting firms by the government, on the lines of a recent Saudi proposal. As payment from the state, contractors would receive bond-like instruments which they could hold until maturity or sell on to banks. “We are trying to negotiate the concept of IOU again with the Ministry of Finance. But it is still under discussion,” said Shahswar. (Times of Oman)