Saudi ultra-luxury destination project Amaala will award a multi-billion-riyal Public-Private Partnership (PPP) contract within three to four months, the company’s CEO said.
John Pagano, who is also the CEO of The Red Sea Development Company (TRSDC), which oversees the Red Sea giga-project, told Zawya in an exclusive interview that “a multi-billion-riyal PPP contract for Amaala is in the early stages and it will go to market within the coming weeks.”
“We are in the process of confirming the statements of qualifications from the bidders and there could be three different bidders on that package,” he said without elaborating on the specific nature of the contract.
“We are leveraging the learnings and experiences that we got from The Red Sea Project process and we will fast track that particular contract. We hope to award it within the next three to four months.”
“The contract is single digits in capital costs. But if you run it through the life of the 25-year concession, then that figure will run into double digits,” he said.
The Red Sea and Qiddiya giga projects have taken the PPP route for developing their respective utilities infrastructure.
In November 2020, TRSDC had awarded a design, build, operate and transfer (DBOT) contract for the Red Sea project’s utilities infrastructure to an ACWA Power-led consortium.
Bringing to speed
The Amaala project focuses on transformative personal journeys inspired by wellness, arts, culture, and the purity of the Red Sea, according to its developer.
Foster + Partners had been appointed executive architects for the development, while other global design experts, like US design firm HKS and Denniston are on board for specific facets of the master plan, according to a statement on the website.
“The first phase comprises six hotels and 1,000 rooms, a large marina and a residential golf course, which are all due for completion by 2024. We have been behind The Red Sea Project [in terms of project milestones] but we will bring them up to speed,” said Pagano who replaced previous CEO Nicholas Naples on 14 January 2021 when the project entered into development stage.
The move was part of Amaala’s growth plans, Pagano then said in a company statement, noting that Naples would continue to contribute to the company’s development as an adviser.
The 4,155-square kilometre year-round destination will include a total of “30 to 35 hotels (3,000 keys)," he said. It will also comprise more than 900 private residential villas, apartments, and estate homes, alongside 200 high-end retail establishments, fine dining, wellness and recreational facilities.
Pagano had told Bloomberg on 18 May 2021 that the project may raise up to 10 billion Saudi riyals ($2.7 billion) next year as the Kingdom presses ahead with its programme to diversify the economy. “The numbers haven’t yet been finalised, with the amount of debt likely to be in the “range” of 5-10 billion, he said.
Amaala had recently awarded several construction contracts to a number of Saudi companies including Al-Tamimi Group, HASCO and Saudi Real Estate (Binyah). Work is well underway on-site to progress the enabling infrastructure and groundwork required to develop the destination.
A Public Investment Fund company and a key contributor to Vision 2030, Amaala is set in the Prince Mohammad bin Salman Natural Reserve across three unique communities.
Only five percent of the total area will actually be developed, with the rest earmarked for conservation and preservation, according to past media reports.
(Reporting by Sona Nambiar; Editing by Anoop Menon)
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.