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One of Dr. Sulaiman Al Habib Medical Services Group hospitals
Alandalus Property Co. and Dr. Sulaiman Al Habib Medical Services Group announced the latest developments related to their joint venture (JV) project, “Gharb Jeddah (Southwest Jeddah) Hospital”, expected to be operational during the first quarter of 2024.
Construction, electrical, and mechanical works essential for the project's operational requirements were completed, the two companies said in separate Tadawul filings today, Dec. 31.
The implementation of the project’s water, electricity, and air conditioning systems was also concluded. In addition, operational material requirements, including medical devices as well as medical and non-medical furniture, were supplied. The recruitment of medical and nursing staff for the project’s interim operational requirements was also carried out.
The companies expect that testing and commissioning works for the project elements and furnishing requirements will continue through Q1 2024, in preparation for obtaining the required licenses. After getting the relevant regulatory approvals and licenses, the project is expected to be operational in the first quarter of 2024.
The delay in the project's timeline was attributed to the extended period of testing and commissioning work for initial operational requirements, including air conditioning systems, electrical and mechanical works, and safety systems, in accordance with relevant standards.
This is after factoring in the size and magnitude of the project's scope of work, which began in the fourth quarter of 2023 and is anticipated to continue into the first quarter of 2024.
No additional costs were incurred as a result of not operating the project at the end of 2023. This delay will not impact on the financial results of both companies, the statements added.
Material developments related to the project will be disclosed in due course, in accordance with relevant regulations.
Gharb Jeddah Hospital Co. was jointly established by Alandalus Property and Sulaiman Al Habib, under an agreement signed in October 2014, according to data available on Argaam.
In July 2018, Alandalus Property announced that construction works of this project are poised for completion in the first quarter of 2022, before becoming operational in the second quarter of the same year.
However, in January 2020, it anticipated the project's construction to be completed during the second quarter of 2023, with the project's operation expected to follow in the third quarter of the same year.
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