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Logo of Knowledge Economic City Co. (KEC)
Knowledge Economic City Co. (KEC) signed on Oct 17 three preliminary agreements with China Gezhouba Group International Engineering Co. to finalize the contracting works of the projects related to the framework agreement signed in June 2023.
The new agreements determine the estimated project cost, payment schedule and cost settlement mechanism, provided the agreement on the cost of the contracting works is finalized after determining other project details, KEC said in a statement to Tadawul.
The preliminary costs of these agreements are estimated at SAR 3.6 billion.
The signed agreements cover Al-Alya Project and Phase-1 of Islamic World District Project (IWD).
Al-Alya Project agreement comprises construction, material supply and finishing as general contractor for the project.
The mixed-use project falls within a semi-gated community that includes residential, offices, hospitality, retail and knowledge sectors.
It was designed to respond to the urban planning of “humanizing of cities” and the quality of life program, which adopt green areas and pedestrians aim to creating an attractive lifestyle as part of the Vision 2030.
Project components have been designed on 269,000 sqm area with 400,000 sqm gross floor area (GFA) for a hotel with 120 room keys. Also planned are nearly 1,500 residential apartments, including 414 serviced apartments and 70 townhouses.
The landscaping and pathways area is 72,000 sqm. The length of the green project's main path is 1,100 meters, with width ranging between 16 and 82 meters.
This agreement also complemented the contracting agreement to establish the concrete structure of the residential buildings in the project phase I, which features 264 units, and was signed on June 18, 2023.
Meanwhile, the IWD-Phase I features a general contracting agreement, including construction, material supply and finishing.
The mixed-use project spans 900,000 sqm, and is a Transit Oriented Development (TOD). The project, offering several hospitality, luxury, shopping, and housing services, was planned to support the goals of the Ministry of Tourism and Deyouf Alrahman programs.
It also falls within Vision 2030 to increase the number of visitors and pilgrims to 30 million per annum.
The third agreement entails the implementation of the IWD infrastructure work, including supplying equipment and materials.
The new framework agreements estimated the preliminary costs of Al-Alya project at SAR 1.5 billion and IWD-Phase 1 at SAR 2.1 billion.
The final costs and the relevant financial impact will be determined after completing the engineering work. KEC signed on June 16 a framework agreement with China Gezhouba Group to support the development of the Saudi-listed company’s projects, according to data compiled by Argaam.
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