The local Al-Arrab Contracting Company has been awarded one of contracts, valued at SR2.8bn ($747m), for the fourth phase of the King Abdullah Project (KAP) in Saudi Arabia.

The local Al-Rashid Trading & Contracting Company is expected to win the two other packages.

The fourth phase of the security compounds programme was tendered by Saudi Arabia’s Interior Ministry as one contract in May 2012. The lowest bidder was the local Assad Saeed Company for Contracting with a price of SR7.36bn, which is just 0.3 per cent lower than the second lowest bid of SR7.382bn submitted by the local Al-Rashid Trading & Contracting Company. Al-Arrab Contracting Company was third lowest with a price of SR7.59bn.

The contract is the fourth to be tendered by the ministry as part of its plans to build a network of security compounds throughout the kingdom. It involves building headquarters buildings at 13 locations across the kingdom.

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

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.

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

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.