The Red Sea Development Company (TRSDC), the developer behind Saudi Arabia’s flagship The Red Sea Project, is set to award a total of nearly SAR 15 billion ($4 billion) in contracts by the end of 2020.
Saudi Arabia plans to develop resorts on 50 islands off the Red Sea coast, offering a nature reserve, coral reef diving and heritage sites. Red Sea Development Co, backed by the kingdom's Public Investment Fund (PIF), plans to build the first phase by 2022.
TRSDC has already awarded more than 500 contracts so far, worth around SAR 7.5 billion ($2 billion), to international and local firms. These include contracts for the design, building and operation of state-of-the-art accommodation and facilities at the destination, according to a statement on the developer’s website.
The additional contracts that will raise that figure to SAR 15 billion include 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.
“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,” said John Pagano, CEO of TRSDC.
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 Co. Ltd and Almabani General Contractors, the contract symbolizes 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.
For instance, the company worked with King Abdullah University for Science and Technology (KAUST) on an ambitious Marine Spatial Planning (MSP) program to map out land and coral reef conservation areas at the site. This exercise informed the Concept Master Plan which predicts a 30 percent net conservation benefit by 2040, showcasing TRSDC’s commitment to setting new standards in regenerative sustainability.
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.
(Reporting by Seban Scaria firstname.lastname@example.org; editing by Daniel Luiz)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2020