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10 KSA projects you should be involved in

An updated look at the major projects every supplier should know about

King Abdullah Economic City (KAEC)
King Abdullah Economic City (KAEC)
Princess Noura bint AbdulRahman University for Women in Riyadh
Princess Noura bint AbdulRahman University for Women in Riyadh

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Saudi Arabia has announced another expansionary budget for 2010, confirming that it will continue to spend heavily on key development projects.

The government has projected expenditure of US $144 billion (SR 540 billion) against revenue of $125 billion and has promised to allocate significant funds to transportation and utilities infrastructure.

It was confirmed that around $3.2 billion has been allocated for road construction projects in 2010. The length of roads to be constructed this year will total around 6400km.

This makes Saudi Arabia a market that no construction supplier can afford to ignore. Here, Construction Week presents ten projects that every contractor, sub-contractor and supplier should know about.

1. King Abdullah Economic City (KAEC)

Client: Emaar Properties

Estimated value: US $50 billion

Schedule: Construction started in 2006 and 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: Last year, it was announced that Modon, Saudi Arabia’s industrial development agency, had shortlisted 10 developers for Sudair City. Further announcements are awaited.

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 has begun and is due for completion by the first quarter of 2012.

Scope: The project involves construction of a new university for women. The university is expected to cover 8 million 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. The university will also have its own railway system.
Saudi Oger was awarded the first and most valuable package worth SR12.5 billion; Saudi Binladin Group and El-Seif Engineering & Contracting won subsequent packages valued at SR10 billion and SR8 billion respectively. The contracts cover the majority of construction on site, including low-rise faculty buildings, infrastructure and associated works.
A fourth package, valued at SR1.5 billion, covering an 11-km monorail network to link the facilities, was awarded to a consortium led by Saudi Binladin Group and Ansaldo STS and AnsaldoBreda, part of Italy’s Finmeccanica Group.
Saudi Binladin Group awarded Vision Electro Mechanical Company an SR1.31 billion (US $349mn) MEP sub-contract.

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4. Landbridge Project

Client: Saudi Railway Organisation (SRO)

Estimated value: US $10 billion

Schedule: Four consortia applied for the Build, Operate and Transfer contract and a winning group was announced in 2008. The project currently appears to be in limbo due to debate over the method of funding and the need to ensure it links into the planned GCC railway network.

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 is 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. Knowledge Economic City will be built in phases. The project duration is expected to be ten years. In July 2009, AECOM won a US $15 million contract to provide programme management services for phase one of the project.

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.

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7. King Abdulaziz International Airport (KAIA) Development

Estimated value: US $4.5 billion

Client: General Authority of Civil Aviation

Schedule: Work on phase one began in 2007 and is scheduled to finish in the first quarter of 2012

Scope: King Abdulaziz International Airport (KAIA) is a potentially massive development; the blueprint includes scope to increase capacity to 80 million passengers by 2035 in three phases. Phase 1, which is underway, covers construction of a 400,000 square metre terminal complex; a new control tower, access roads and utilities infrastructure.
Aeroports De Paris Ingenierie (ADPI) was awarded the design contract and Dar Al Handasa Consultants is the project manager. Construction is in progress and is expected to be completed in 2012.

8. Haramain High Speed Rail Project

Client: Saudi Railway Organisation (SRO)

Estimated value: US $4 billion

Schedule: The project is split into three main packages: civil works (Phase 1 Package 1); stations (Phase 1 Package 2) and infrastructure (phase 2). Al Rajhi consortium won the civil works contract and has begun work. A JV of Foster & Partners and Buro Happold won the station design and build contract.

Scope: Haramain High Speed Rail Project (HHR) is a 450km railway connecting Makkah and Madina via Jeddah. The railway will be a high speed electrified passenger double line between Makkah, Jeddah and Madina. The railway is due to start operation by 2012.

9. 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.

10. Jizan Economic City (JEC)

Client: MMC Group; Saudi Binladin Group

Estimated value: US $3 billion

Schedule: Construction 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.

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