Knowledge City inks framework agreement with CGGC to help develop projects

Logo of Knowledge Economic City Co. (KEC)

Knowledge Economic City Co. (KEC) signed, on June 16, a framework agreement with China Gezhouba Group International Engineering Co. (CGGC) to support the development of the Saudi-listed company’s projects, according to a statement on Tadawul.

The agreement, which has a term of six months, aims at cooperation in the engineering, procurement, and construction phase for some KEC projects such as Hub Residence, Al-Alya Mixed-use Project, and South Area Infrastructure.

In addition, CGGC will cooperate with KEC to implement project planning, as well as submit commercial and technical proposals for other projects such as KEC Hub Hospitality, Islamic World District (IWD) Project, Sewage treatment plants and the South Suburb Project.

CGGC with its parent group, China Energy, and other affiliates will work to assist with the Chinese financial institutions for financing and finding potential investors or enter with KEC into equity investment, directly or indirectly.

This will be through funds or other capital structure to participate in the development of projects, contingent to the approval of all relevant authorities of both countries.

This is also in accordance with Saudi rules and regulations of foreign investment, to enable the implementation of the target projects, which will provide around 16,600 hospitality and residential units, in addition to the other components of the projects.

There is no financial impact of the agreement at present, the statement said, adding that there are no related parties to the deal.