Al-Arrab Contracting bids low for $720m Saudi security network deal

26 August 2013

Four contractors bid for phase 2b of King Abdullah Project security network programme

The local Al-Arrab Contracting Company has submitted the lowest bid for the contract to build phase 2b of the Interior Ministry’s King Abdullah Project (KAP) security programme in Saudi Arabia.

The ministry received bids from four contractors on 24 August for the construction deal, which will involve building a public security training centre, medical unit, dormitories, training facilities and a shooting range.

Al-Arrab submitted the low bid of SR4.7bn ($720m), which was about 2 per cent lower than the SR4.8bn price submitted by the local ABV Rock. The local El-Seif Engineering Contracting submitted the third-lowest price of SR5.5bn. Cyprus-based J&P offered the highest price, with a bid of SR5.8bn.

Firms are currently preparing to submit bids for phase 2c on 31 August. The packages, King Abdullah Project (KAP) 2b and 2c, were formerly part of the package awarded to the local Saudi Oger in 2011 for the second phase of the KAP security network scheme. The ministry cancelled Oger’s contract in 2012 for undisclosed reasons.

The KAP programme will cover the construction, operation and maintenance of 28 types of facilities at more than 50 locations. In total, the ministry is expected to spend more than $13bn across the five phases of the project.

Most of the security premises will be constructed in and around Riyadh, but facilities will also be built in the provinces of Qassim, Hail, Tabuk, Jeddah, Medina, Taif, Al-Jouf and on Saudi Arabia’s northern borders.

In April, Al-Arrab was awarded one of the three contracts, valued at SR2.8bn, for the fourth phase of the scheme. The local Al-Rashid Trading & Contracting Company is expected to win the remaining packages. The phase involves building headquarter buildings at 13 locations across the kingdom.

The local Saudi Binladin Group has been awarded the construction contract for the third phase of the programme, according to sources within the kingdom. In January, firms were invited to submit bids for the fifth phase of the scheme.

The security compounds will be used to house, educate and train members of Saudi Arabia’s public security, civil defence, police, passports division, and special security and investigative forces. The facilities have been designed to include schools, mosques, theatres, civilian dormitories, military barracks, administrative buildings, training facilities and units for recreation and entertainment.

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