28 July, 2019

Developer of Saudi Arabia's Red Sea project awards design-build contract for management hotel

The Red Sea Project on Saudi Arabia's west coast would be developed over 28,000 square kilometres

Construction worker on scaffolding in construction site. Image used for illustrative purpose.

Construction worker on scaffolding in construction site. Image used for illustrative purpose.

Getty Images/ Chaiyaporn Baokaew

28 July 2019
The Red Sea Development Company (TRSDC), which oversees the ambitious The Red Sea Project in Saudi Arabia, announced on Sunday that it has awarded a design and build contract for a 150-room management hotel at the project site to Saudi Amana Contracting, a subsidiary of UAE-based Amana Contracting Group.

The Red Sea Project on Saudi Arabia's west coast would be developed over 28,000 square kilometres of pristine land and includes a vast archipelago of more than 90 islands and lagoons, according to TRSDC's website.

The "manufacturing of the hotel" would be sub-contracted to UAE-based DuBox Precast Products Industrial, another subsidiary of the Amana Contracting Group, a press statement issued by the developer said.

TRSDC, which is a wholly owned by the Public Investment Fund (PIF) of Saudi Arabia, selected Amana Contracting with DuBox "based on their innovation and proven track record in delivering pre-finished modular units to a very high standard of quality," the statement said, quoting CEO John Pagano.

It said the contract award, which followed a competitive tender process, is part of a wider Coastal Village initiative to provide accommodation, office space and supporting civil amenities to around 40,000 workers and staff who will work at The Red Sea Project during and after development.

The management hotel is due for completion within 12 months and would be owned and operated by TRSDC, the statement noted, adding that that as the destination develops, "the hotel may be opened to serve guests who visit the destination's employees."

Chief Project Delivery Officer Ian Williamson said in the statement that the project is an example of TRSDC's plan to build and repurpose permanent structures during construction rather than relying on temporary buildings.

"This not only reduces cost but also minimises the impact on the environment," he explained.

Chebel Bsaibes, Chairman of the Amana Group added that offsite manufactured, volumetric, pre-finished modular solutions provides speed of delivery, enhanced quality, economy of scale and an overall process that is safer both for workers and for the environment.

According to the press statement, during the first phase of the project, the Coastal Village would house around 14,000 people who will be employed in roles at the destination as well as temporarily house 25,000 workers who will be building the development assets.

It said the first phase is on track for completion by the end of 2022, and would include 14 luxury hotels offering 3,000 rooms across five islands and two inland resorts; a yachting marina, entertainment facilities, an airport, and the necessary supporting logistics and utilities infrastructure.

Earlier this year, TRSDC announced that construction had begun on site and its Base Camp was fully operational.

(Writing by Syed Ameen Kader; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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