Knowledge Economic City (KEC) has announced that one of its key subsidiaries Algharraa International Real Estate Development has awarded an infrastructure works contract worth SAR91 million ($24 million) to Salco Saudi Contracting for the development of the Southeastern District within its premises in Madinah.
The Southeastern District is one of the key future development areas within KEC and is expected to provide infrastructure support for several strategic developments, including the Knowledge Gardens project, as well as other planned projects.
As per the contract, Salco Saudi Contracting will execute and complete the infrastructure works for the Southeastern District, covering areas located north and south of Sheikh Ibn Baz Road, said KEC in its filing to Saudi bourse Tadawul.
The scope of work includes general site development works, earthworks, excavation, backfilling and grading, roads and pavements, potable water networks, sewerage networks, stormwater drainage systems, irrigation networks, firefighting networks, electrical works, street lighting, Information and Communication Technology (ICT) infrastructure, and District Cooling networks, it stated.
The contract forms part of KEC’s strategy to accelerate the development of its land bank and prepare development-ready sites to attract investments and facilitate the launch of future residential, commercial, hospitality, and mixed-use projects.
Under the deal, Salco will also be responsible for the testing, commissioning, and handover of the completed infrastructure works to the relevant authorities, in accordance with approved engineering designs, technical specifications, applicable regulations, and the requirements of the relevant authorities.
The entire work will be completed within a two-year period, it added.
The infrastructure development is expected to enhance the investment value and readiness of KEC’s strategic land portfolio, improve urban integration, and strengthen the quality and efficiency of infrastructure and public services across the development area.
The project will help accelerate land development and strengthen the investment environment for developers and investors, enabling KEC to launch future projects in line with its development programme and diversify its revenue streams, it stated in the bourse filing.
The development comes amid anticipated growth in demand for residential, hospitality, and supporting services in Knowledge Economic City, supported by regulatory developments aimed at expanding investment opportunities and property ownership for non-Saudis, it added.-TradeArabia News Service