Red Sea Development awards US$2bn in contracts
The Red Sea Development Company (TRSDC) has now awarded more than 500 contracts to international and local firms.
Collectively worth around SAR 7.5 billion ($2 billion), these include awards for the design, build and operation of state-of-the-art accommodation and facilities at the destination.
“This significant landmark underscores the scale of our project and the remarkable progress made to create the destination of the future.
“TRSDC is a contributing factor to the growth of the Saudi Arabian economy and is playing a pivotal role in its Vision 2030 plan.
“I am honoured to be able to showcase the incredible advances our brilliant team and partners have achieved towards making our vision a reality,” said John Pagano, chief executive of TRSDC.
TRSDC is the developer behind Saudi Arabia’s flagship international regenerative tourism initiative, the Red Sea Project.
Since the company’s inception in 2017, over 70 per cent of the total value of contracts has been awarded to Saudi firms, highlighting TRSDC’s commitment to strengthening the local economy.
Overall, more than 500 contracts have been awarded to companies from 24 countries, which is indicative of the scale of the project and the international expertise required to create the unique destination.
Work on the destination’s transport links is well underway and includes developing 80 kilometres of roads, highways and junctions to connect the destination, and the new international airport.
Archirodon is constructing a crossing linking Shurayrah Island (the destination’s main hub) to the mainland and is constructing a number of jetties.
Meanwhile, Saudi Amana Contracting has delivered the first volumetric prefabricated units, which were built in a newly established facility in Saudi Arabia.
These units will form part of the Coastal Village development, a new town set to house the 14,000 staff who will operate the destination once complete.
The development of the Construction Village, which will be home to 10,000 construction workers, is nearing completion with all 1,876 cabins built off-site, delivered and assembled.
While the onsite landscape nursery, which spans over one million square meters, is fully operational and set to deliver upwards of 15 million plants.
In July this year, TRSDC signed its largest contract to date for airside infrastructure works for the destination’s international airport, set to open in 2022.
Awarded as a joint venture to two leading Saudi contractors, Nesma & Partners Contracting and Almabani General Contractors, the contract symbolises another significant step in progress, while demonstrating TRSDC’s ongoing commitment to creating opportunities within the Saudi Arabian construction sector.
In addition to working with international and local companies, TRSDC has also forged partnerships with universities and ministries, as well as leading scientific and academic institutions.
And there is still more to come.
By the end of 2020, many more contracts will be awarded including for the airport terminal, an airport operator, and a major public-private partnership (PPP) utilities package that will secure 100 percent renewable energy generation, water desalination, waste treatment and district cooling.
Together, these contracts will take aggregate commitments to a total approaching SAR 15 billion ($4 billion).
The Red Sea Project has already passed significant milestones and work is on track to welcome the first guests by the end of 2022, when the international airport and the first four hotels will open.
The remaining 12 hotels scheduled for completion in Phase One will open in 2023, delivering a total of 3,000 rooms across five islands and two inland resorts.