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Logo of Knowledge Economic City (KEC)
Knowledge Economic City’s (KEC) subsidiary, Makarem Almaarifa Hospitality Ltd., and a consortium of three companies—City Cool, Johnson Controls Arabia (JCA), and ADC Energy Systems— signed a contract to build a chilled water district cooling plant in Madinah.
In a statement to Tadawul, KEC said that the consortium’s services would be based on a build, own, operate, and transfer (BOOT) model. Hence, no capital expenditure will be borne by the company or its subsidiary in the interim period.
However, KEC will make monthly payments to the consortium to cover the cost of cooling, provided the ownership of the plant is transferred to Makarem Al-Maarifa by the end of the contract period of 25 years from the operating date.
The contract includes building a plant of 21,000 tons of refrigeration over two phases at Al Madinah Hub area, Multaka Al Madinah, to provide cooling services to the mall, the Hilton tower, and the branded residence tower.
Under the contract, JCA will supply YORK Chillers, ADC Energy Systems will perform the engineering, procurement, and construction of the district cooling plant.
Additionally, City Cool will perform the operation, maintenance, and facility management for 25 years from the operating date with the aim of sustainability and energy efficiency as part of the alignment with the objectives of KEC.
The deal has no financial impact on the company’s financial statements at present, the statement added.
KEC further noted that its board member Saleh Mohammad Binladen is also a member of the board of JCA. Accordingly, this contract is being dealt with as per the related regulations, the company indicated.
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