New entity will manage government projects in the kingdom
Saudi Aramco has shortlisted four bidders for the joint-venture project management company it is planning to form.
The shortlisted firms are:
- Dar al-Handasah (Lebanon)
- Faithful + Gould (UK)
- Jacobs (US)
- SNC Lavalin (Canada)
Aramco is expected to form the new project management entity by the end of the first quarter next year. It will target government infrastructure projects planned for the kingdom over the next decade.
It will sell its services to other government bodies in Saudi Arabia that are developing infrastructure. A strong emphasis will be given to employing local Saudi nationals, which is one of the key goals of the governments Vision 2030 document.
The new project management company will take considerable strain away from Aramco, which in recent years has been relied upon to deliver some of the kingdoms biggest construction projects.
Multibillion-dollar schemes managed by Aramco include the King Abdullah University of Science & Technology (Kaust) and the King Abdullah Sports City development near Jeddah, the King Abdullah Petroleum Studies Research Centre (Kapsarc) in Riyadh, and the King Abdulaziz Centre for Knowledge & Culture in the Eastern Province.
Changing the status quo of Saudi construction
Saudi Aramcos setting up of a new project management company looks set to change the status quo of the kingdoms construction industry
Power plant under construction
Power plant under construction
When Salman bin Abdulaziz al-Saud became King of Saudi Arabia in January 2015, there was a widespread expectation that the leadership change would usher in sweeping changes for the kingdoms construction sector.
Those changes are starting to manifest themselves. Saudi Aramco is to form a new project management company with international partners that will be deployed to deliver SR600bn ($160bn) of government infrastructure and building projects over the next 10 years.
The new firm could have a major impact on the Saudi construction sector, as it will help the kingdoms new leadership overcome two of the industrys main sources of tension. Read more
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