Jazan Economic City port tender cancelled

A location change for the refinery will affect utilities and the port.

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The tender process for the construction of the harbour in Jazan Economic City in Saudi Arabia has been terminated on the back of a change in plans for the Jazan oil refinery, it has been announced.

MMC, a leading Malaysian company leading the consortium of developers on the JEC, informed investors of the decision by Saudi Aramco, the state-backed oil supplier, to change the upcoming refinery’s location yesterday. “The port’s location will likewise be changed accordingly,” the company stated.

The tender was deferred in May in light of ongoing talks between MMC and Saudi Aramco as to the refinery’s position. A change of location would have an effect on the port and utility infrastructure of the area.

MMC and Saudi Aramco spokespeople were unavailable to comment further.

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Jazan Economic City will be located in the Province of Jazan on the south-west coast of Saudi Arabia, 60 km northwest of Jizan City, the major city and home to the Port of Jizan. Situated in an area of abundant raw materials and along the shipping route, the City will occupy 103km² with a coastline of approximately 12km. To the east of the site is the high motorway, allowing direct access to Jizan City.

Two-thirds of the project will be devoted to heavy-industry projects and secondary processing industries. The rest will comprise of industries such as agriculture, livestock and fisheries, along with general public services.

Construction of the SR311 million power substation, which will cover a land lot of 40km², began last July by Saudi Electricity Company, the state-run power supplier. The substation intends to meet all power needs for the first phase projects until construction work in the main power plant of the Economic City is finished, as well as providing power to the first phase of the steel production complex.

The Saudi Arabian General Investment Authority, which commissioned the development, expects the site to draw more than SR100 million of private investment from the company’s which will operate in the City, creating around 500,000 direct and indirect jobs and providing residence for an estimated 250,000 employees.

Saudi Binladen, the Riyadh-based construction firm, is part of a joint venture with MMC.