Saudi Arabia’s Riyadh Valley Company (RVC) has appointed contractors for up to $1bn for various projects at its Riyadh Techno Valley scheme in the kingdom’s capital.

The most recent agreement is with local contractor Al-Bawani, which will see the firm work on 300,000 square metres of infrastructure work, according to Omar Hamza, head of planning at RVC.

Hamza added that an agreement with Al-Bawani has been finalised, although the contracts have still not been signed due to budgetary restrictions. The budgetary issues are expected to be solved in the coming weeks.

It is understood that Al-Bawani will work on $76m-worth of infrastructure work, which is approximately 50 per cent of the 1.7 million square metre masterplanned technology park in Riyadh.

Other contracts include a commercial centre at an approximate cost of $500m, which was awarded to local contractor Al-Hokair. The commercial phase will include a trade centre, a shopping mall and retail and dining outlets to serve the rest of the park.

Al-Hokair was also appointed for work on the 140,000 square metre phase two of the park’s residential area. The first phase was recently completed and includes four buildings made up of 240 apartments.

Delivery of the commercial and residential areas is expected within three years.

Riyadh Techno Valley is a science and technology park at the King Saud University (KSU) campus in Riyadh. The park is divided into three phases; a chemical technology and materials phase, an area for biological, agricultural, and environmental technologies and an information and communications technologies (ICT) hub. It is understood that 40 per cent of the park is occupied and in full operation with RVC seeking investors for the remaining 60 per cent.