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Salini Impregilo awarded $1.3bn Saudi Arabia National Guard contract

The five-year contract will see the Italian civil infrastructure giant deliver housing and urban planning services, as well as the construction of 6,000 villas across a 700ha plot east of Riyadh

Salini Impregilo's contract will Saudi Arabia National Guard will be carried out across a 700ha space to the east of Riyadh [representational image].
Salini Impregilo's contract will Saudi Arabia National Guard will be carried out across a 700ha space to the east of Riyadh [representational image].

Italian civil infrastructure giant, Salini Impregilo, has been awarded a $1.3bn (SAR4.87bn) contract by Saudi Arabia National Guard.

The project entails the delivery of housing and urban planning services, as well as the construction of 6,000 villas, across a 700ha area to the east of Riyadh (pictured).

READ: Salini Impregilo secures $300m loan for Meydan One Mall in Dubai

A 160km road, in addition to secondary routes and related services, a sewage treatment plant, and above- and below-ground water systems, will also be developed as part of the project.

Salini Impregilo stated that contract works are expected to be completed in five years.

Pietro Salini, chief executive officer of Salini Impregilo, said the contract was "an important milestone" for the company's Middle East growth strategy.

He added: "This project allows us to make use of a summary of what we [will] need in the future to meet the challenges of the infrastructure sector, [which are] urbanisation, transport and urban centre connection, and water management."

The chief executive officer added that the Middle East was "a strategic area for the group", revealing that the region represented 3% of the company's turnover in 2013, and 23% in 2017.

In a statement, Salini Impregilo said the latest contract win would strengthen its presence in Saudi, where it is involved in the construction of Line 3 – also known as Orange Line – of Riyadh Metro. The 41.58km line will be the metro system's longest. 

Last April, the company won a $300m (SAR1.1bn) contract to work on the Al Faisaliah District Redevelopment project for Al Khozama Management Company, which specialises in the development and management of commercial, luxury, and hotel properties.

In December 2017, Salini Impregilo announced it had won a $255m (OMR98.2m) contract by ACWA Power to build a desalination plant in Oman's Shuaiba region, alongside Fisia Italimpianti, a company that it controls.

Meanwhile, in the UAE, the group is building the Meydan One Mall for $435m (AED1.6bn), and holds a $200m (AED734.6m) contract to design and build a 5km section of a transit way that will connect Abu Dhabi's Capital District with the emirate's Central Business District.

Additionally, Salini Impregilo is working on the expansion of the Al Maktoum International Airport in Dubai with its US subsidiary, Lane Construction.

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Construction Week - Issue 751
Oct 13, 2019