Jabal Omar extends Hill management deal

18 November 2015

US firm has been working on Mecca development since 2010

US-based Hill International has received a contract extension from Jabal Omar Development Company (JODC) for work on the estimated SR19bn ($5.1bn) Jabal Omar mixed-use development in Mecca.

The one-year contract extension has an estimated value to Hill of about SR51.7m ($13.8m).

Hill International received a contract extension valued at $28.7m for its work on the development in 2013. Hill has been the project manager on the development since 2010.

The Jabal Omar development, situated on 57 acres, includes 37 towers with a total built-up area of 2 million square metres of space, including hospitality, residential, retail, commercial and religious facilities.

The local Nesma & Partners Construction is currently working on the first phase of the development, which involves the construction of nine towers.

In March 2012, a joint venture of the local Saudi Arabian Baytur Construction Company and Azmeel Contracting & Construction Corporation was awarded an estimated SR1.49bn contract to build the second phase of the scheme. The second phase involves the construction of four hotel towers to be operated by the US-based Starwood Hotels and Resorts. Two of the towers will be built under The Westin hotel brand, while the remaining towers will be run by Sheraton.

In December 2012, the joint venture of Lebanon’s Arabian Construction Company (ACC) and the UAE’s Drake & Scull International was awarded the estimated $720m contract to build phase three of the development. The third phase will involve the construction of four hotel towers. Two of the towers will house a five-star Hilton hotel and the other two towers will contain a three-star Double Tree by Hilton hotel.

Hill also received a contract extension for engineering services at Muscat International airport and the Salalah aiport in Oman in early November. The deal was originally awarded in 2012. Awarded by the Transport & Communications Ministry and the Public Authority for Civil Aviation, the one-year extension has an estimated value of about RO30.1m ($78.2m).

Hill was originally awarded a three-year RO41.8m ($108.5m) contract to oversee the development of the airports in 2012.

The expansion of Muscat International, the largest airport in Oman, includes a new terminal that will have a capacity of 12 million passengers annually. The expansion of Salalah Airport, the second-largest airport in Oman, involves upgrading it from primarily a domestic airport to make it more suitable for international travellers, including building a new runway long enough to handle the A380 Airbus, and a new terminal that will improve the airport’s capacity to 1 million passengers annually.

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