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EXCLUSIVE: Funding and contract management for 334km2 Qiddiya

CEO of Saudi's Qiddiya entertainment city reveals how the PIF- and debt funding-backed project's deals will be managed

Saudi Arabia is developing Qiddiya entertainment city.
QIC
Saudi Arabia is developing Qiddiya entertainment city.

Chief executive officer of Qiddiya Investment Co (QIC), Mike Reininger, revealed in conversation with Construction Week at the Qiddiya Six Flags theme park reveal event in Riyadh how the gigaproject's developer would ensure effective contract management for each of the builders it works with in the run up to the launch of Qiddiya's Phase 1 in 2023. 

Reininger said developers must work with qualified contractors and maintain the stability of cash flow throughout the construction programme for projects to be delivered efficiently.

He added: “If you can’t keep the systems fuelled without funds, then you’re not going to keep your schedules up and keep your progress moving forward.”

In terms of the Qiddiya project, Reininger said the firm was “fortunate” that QIC was the wholly owned subsidiary of Saudi Arabia’s HRH Crown Prince Mohammed bin Salman-led Public Investment Fund (PIF), which is providing the “lion's share” of its equity capital, with external investors also involved. 

He added: “Our primary financial sponsor, PIF, will allow us to get the project moving and keep it moving from a funding prospective.

"[However], PIF is not the only one that is going to be involved; we will have debt funding as well.

“We will start the project by making sure that funds are available in total for each of the individual contracts that we let [to ensure] that the system is properly fuelled with the money that is necessary to make the project come to life.”

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Construction Week - Issue 754
Nov 23, 2019