Saudi Arabia launches customs zones PPP

30 June 2022
Project covers land ports in six locations across kingdom

Saudi Arabia’s Zakat, Tax & Customs Authority (Zatca) has given companies until 9 August to respond to its request for qualifications for the customs secured zones public-private partnership (PPP) project it plans to develop in six locations.

The project is being offered by Zatca with the National Centre for Privatisation & PPP (NCP) under a design-build-finance-maintain-transfer contract spanning 20 years, excluding the construction period.

The scope of the request covers the upgrade of secured zone facilities and implementing the new design prototype planned for six land ports in locations including:

  • Al-Batha
  • Al-Durrah
  • Al-Haditha
  • Al-Khafji
  • Al-Wadiah
  • Halat Ammar

The request follows Zatca’s and NCP’s invitation to prequalify for a logistics zone PPP scheme at the Jadidat Arar port near the Saudi-Iraqi border in March.

INSIGHT: Saudi PPP projects to progress in 2022

The Jadidat Arar design-build-finance-operate-transfer contract will span 25 years and include the development of warehouses, light manufacturing units, fuel stations, retail areas, worker accommodation, container freight stations and car and truck parking spaces across a 1 million square-metre area.

Pipeline

Both projects are the latest in a series of Saudi PPP schemes outside the power sector to have advanced in recent months.

Earlier in June, Al-Madina al-Munawarah Development Authority and NCP invited firms to express interest by 19 July for the contract to develop a bus rapid transit network in the city.

In May, Saudi Authority for Industrial Cities & Technology Zone (Modon) and NCP appointed a transaction advisory team for the contract to develop logistics parks in the kingdom’s northern region.

INSIGHT: Saudi privatisation law offers promise

Projects have also advanced in the construction sector. NCP invited expressions of interest in January for the King Faisal and Prince Mohammad bin Abdul Aziz medical cities in Abha and Sakaka respectively, and the Sabic Behavioural Care Specialist Hospital PPP in Riyadh.

Commercial close has also been reached for the estimated $100m hospital PPP project in northwest Saudi Arabia.

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