City Cool wins Diriyah district cooling PPP contract

25 March 2024
The $186m build-own-operate-transfer contract spans 25 years

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Saudi Arabia’s Diriyah Company has awarded the local City Cool Cooling Company, a subsidiary of contracting conglomerate Al Rajhi Holding, a contract to develop a district cooling public-private partnership (PPP) project catering to Riyadh’s Diriyah tourism project.

Valued at SR700m ($186m), the district cooling plant will have a capacity of 72,000 refrigeration tonnes.

It will be developed on a build-own-operate-transfer model that spans 25 years.

Companies submitted proposals to develop the project on 7 March 2023, as MEED reported.

The project will cater to the cooling requirement of "all non-residential assets within the first phase of the Diriyah project", Diriyah Company said.

The project is expected to reach an energy efficiency rating of 0.7 kilowatts a refrigeration tonne.

At least two teams submitted proposals for the contract to develop and operate the project, as MEED reported last year. 

The Diriyah project is one of several gigaprojects planned in Saudi Arabia.

The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it spans 1 square kilometre and combines 300 years of history, culture and heritage with hospitality facilities.

The project will feature entertainment, retail, educational, business and residential areas, including 38 hotels, over 100 food and beverage outlets and several museums.

MEED's April 2024 special report on Saudi Arabia includes:

> GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
> BANKING: Saudi lenders gear up for corporate growth
> UPSTREAM: Aramco spending drawdown to jolt oil projects
> DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector

> POWER: Riyadh to sustain power spending
> WATER: Growth inevitable for the Saudi water sector
> CONSTRUCTION: Saudi gigaprojects propel construction sector
> TRANSPORT: Saudi Arabia’s transport sector offers prospects

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