The local Red Sea Housing Services Company has signed a SR109m ($29m) deal with Maaden Infrastructure Company to build a senior executives housing camp at the King Abdullah Project for the development of Waad al-Shamal.

Under the contract, Red Sea Housing will construct housing to accommodate 400 executives and provide all required services for tenants, such as catering, fresh water, electricity, wastewater treatment, cleaning, indoor and outdoor recreation facilities, as well as all necessary operations and maintenance through the duration of the deal, which expires in April 2017.

The scheme will be executed in several phases starting from January 2014, and will be partially handed over starting from April 2014. The construction of these facilities is scheduled for full completion and handing over by July 2014. The project will be financed through Red Sea Housing’s internal cash flow, in addition to credit facility lines and banking loans that will be arranged locally. The financial impact of this scheme will be reflected on the firm’s financial results in the first quarter of 2014.

In January this year, the company was awarded a $60m contract by South Korea’s GS Engineering & Construction (GS E&C) to build labour accommodation for staff working on the PetroRabigh expansion.

The firm will build housing compounds that will accommodate almost 9,000 employees working for GS E&C on the PetroRabigh refinery scheme. GS E&C will lease the accommodation for 30 months and Red Sea Housing will also provide electricity supply, maintenance services, recreational facilities and mosques. The first phase of construction is expected to start in the fourth quarter of 2013 and the facility is expected to be operational in the second quarter of 2014.