Friday, April 10, 2009

Top 10 KSA projects you should be involved in

Saudi Arabia is determined not to give in to the doom and gloom enveloping the rest of the global economy. The government confirmed in January that it plans to spend heavily this year, despite the recent drop in oil prices.

It has announced a budget of US $129 billion for 2009 (roughly in line with 2008 expenditure) and has promised to allocate significant funds to transportation and utilities infrastructure.

In February, it was confirmed that around $3 billion has been allocated for road construction projects this year. The news was announced by the Minister of Transport, who said the length of roads to be constructed this year would total 8250km.

This makes Saudi Arabia a market that no construction supplier can afford to ignore, even in these challenging economic times. Construction Week presents ten projects that every supplier should know about. The projects are not in order of the ten most valuable in the country, but those that are vital to the country’s development.

1- King Abdullah Economic City (KAEC)

Client: Emaar Properties

Estimated value: US $50 billion

Schedule: Construction started in 2006.The first phase of the project is expected to be completed by the end of 2009. The overall project will be completed in stages.

Scope: KAEC is a massive development located in Rabigh, Saudi Arabia. The master plan of the city shows the city will be divided into: Industrial Zone, Residential Zone, Sea Resort and Sea Port.
The industrial zone covers an area of 63 million m2. The zone will include facilities to operate and build plants and factories. The residential zone covers an area of 51 million m2 and will include low, mid- and high-rise structures. The sea resort provides a built-up area exceeding 3.5 million m2 for hotels, residential apartments, golf resorts, spas and water sports facilities.
The sea port provides 14 million m2 to build a world-class port on Saudi Arabia’s west coast. The port will include 30 berths to serve global trade routes between Asia, Europe and Africa.

2- Sudair City Development

Client: Saudi Industrial Property Authority (Modon)

Estimated value: US $40 billion

Schedule: Modon, Saudi Arabia’s industrial development agency has short listed 10 developers for Sudair City. The winning bidder will be responsible for hiring sub-contractors for the project.

Scope: Sudair City is a mixed use development that includes residential, commercial, entertainment and educational facilities. Sudair City will span an area of 258 million m2 north of Riyadh.

3- Princess Noura bint AbdulRahman University for Women in Riyadh

Client: Ministry of Finance; Ministry of Higher Education

Estimated value: US $11.5 billion

Schedule: Work will begin soon and is due for completion by the first quarter of 2012. Saudi Binladin Group was the lowest bidder for the buildings package and associated works. El-Seif was the lowest bidder for the infrastructure package.

Scope: The project calls for construction of a new university for women. The university is expected to cover 8 millions m2 and will be located on King Khalid International Airport Road north of Riyadh. The total built up area is around 3 million m2. The university will include administration buildings, 13 faculties, a 700-bed student hospital, laboratories, research centres and a residential area that includes accommodation for students and staff. The capacity of the university is around 26,000 students.

4- Landbridge Project

Client: Saudi Railway Organisation (SRO)

Estimated value: US $10 billion

Schedule: Four consortiums applied for the Build, Operate and Transfer contract. The deadline for submitting bids was January 31, 2009. The consortiums were: Trabot, Saudi Oger, Binladen Group, and Al-Mada.

Scope: The Landbridge is a 950km railway network. The railway will connect Jeddah on the Red Sea with Dammam city in the Arabian Gulf. The project will also include a 115km railway to connect King Fahd Industrial Port with Jubail Industrial City.

5- Prince Abdulaziz bin Mousaed Economic City

Client: Rakiza Holding Company; Al-Mal Investment Company

Estimated value: US $8 billion

Schedule: Work in scheduled to begin in 2010 and will be completed in phases by 2022.

Scope: The project calls for construction of Prince Abdulaziz bin Mousaed Economic City in Hail. The city will cover 156 million m2 and will have 12 distinct components for trade and services in sectors such as agriculture and food processing, mining, education, housing, and entertainment.
The developers aim to use the strategic location of Hail to build transportation infrastructure consisting of an international airport, a dry port, a supply chain centre and a multi-modal passenger station.

6- Knowledge Economic City (KEC)

Client: Knowledge Economic City Developers

Estimated value: US $8 billion

Schedule: Knowledge Economic City Developers is in negotiation with consultants for the project. Construction is expected to begin by the second quarter of 2009. Knowledge Economic City will be built in phases. The project duration is expected to be ten years.

Scope: The project calls for construction of Knowledge Economic City (KEC) in Madina, Saudi Arabia. The project’s land area is around 5 million m2 and the total built up area is 9 million m2.
The city is designed to help establish a catalyst for knowledge-based industries in Madina; the developer claims it will generate 20,000 new job opportunities.

7- North-South Railway

Client: Public Investment Fund (PIF) & Saudi Railways Organisation (SRO)

Estimated value: US $3.5 billion

Schedule: The project is under construction and is expected to be completed in the fourth quarter of 2010.

Scope: North-South Railway is a 2400km-long railway project. The primary objective of the railway will be to connect bauxite and phosphate mines at Az Zubairah and Al Jalamid to processing facilities located at Ras Azur port.
The railway will be used for the transportation of minerals and passengers in Saudi Arabia.

8- Jizan Economic City (JEC)

Client: MMC Group; Saudi Binladin Group

Estimated value: US $3 billion

Schedule: Construction of the city is due to start now and will be completed in phases by the end of 2020. Phase one will take an estimated 30 months to complete.
In November 2007, Aluminum Corporation of China (Chalco) signed an agreement with Malaysia’s MMC Corporation and the local Saudi Binladen Group to develop a 1 million tonne a year aluminum smelter in the city.

Scope: The project calls for construction of Jizan Economic City located 725km south of Jeddah by the Red Sea. The city comprises residential, commercial and industrial zones.

9- Haramain High Speed Rail Project

Client: Saudi Railway Organisation (SRO)

Estimated value: US $1.9 billion

Schedule: Al Rajhi consortium won the civil works contract for Haramain High Speed Rail Project in January 2009. Construction is expected to start in April 2009 and is scheduled for completion in 2013.

Scope: Haramain High Speed Rail Project (HHR) is a rail link project connecting Makkah and Madina via Jeddah. The railway will be a high speed electrified passenger double line between Makkah, Jeddah and Madina.
The speed of the train is around 360km/h. The design, construction, operation and maintenance of HHR will be executed in two phases.

10- Jeddah Gate Development

Client: Emaar Properties

Estimated value: US $1.6 billion

Schedule: The project is under construction and will be built in several phases. The expected development time is ten years.

Scope: Jeddah Gate is a big development in the heart of Jeddah, located on two sites. The first is spread over 413,000m2 and is located along King Abdullah Street and the second is spread over 140,000m2 along Abdullah Al Suleiman Street close to the main railroad linking the cities of Makkah and Madina to Jeddah. The project will comprise 6000 residential units, 230,000m2 of commercial space and 75,000m2 of gross rentable area for retailers.

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