The local Nesma Electric has been awarded a contract to build a new electrical substation at the Jeddah Gate development in the western city of Jeddah.

The local contractor was awarded the contract to build the 100kV substation by the UAE’s Emaar Middle East, which is client for the real estate scheme. The substation will be located near Jeddah airport, which is currently being expanded.

The contract is the latest of a number of transmission and distribution deals that have been awarded recently as the kingdom upgrades its electrical infrastructure to cope with increasing demand.

In July, the local Alfanar Construction signed contracts worth SR1.5bn ($400m) for three transmission and distribution (T&D) contracts in the kingdom.

The largest contract was the SR716m T&D deal from the Saudi Water Conversion Corporation (SWCC) to build three substations for the 3,100MW Yanbu 3 power plant. The substations will supply power from the plant to SWCC pumping stations.