Saudi Arabia receives bids for first package of ministries complex

20 May 2014

Ministries development will cover a total area of 5 million square metres

Saudi Arabia’s Finance Ministry has received bids for the first major package on the planned Governmental Authorities Complex in Riyadh.

The ministry received bids from 11 groups for the infrastructure package for the complex, which will cover a total area of 5 million square metres and is located on the site next to the Princess Noura University on the outskirts of Riyadh. The Finance Ministry will develop the infrastructure, then hand over plots of land to ministries to develop headquarters and other associated facilities at the site.

The initial infrastructure package will cover roads, utilities and associated networks.

The lowest bid of SR1.9bn ($506m) was submitted by the local Al-Fouzan Trading & General Construction Company. This was almost 21 per cent lower than the SR2.4bn price submitted by the second-lowest bidder, a consortium consisting of the local Haif Contracting, Turkey’s Kalyon and the UAE/Australian contractor Habtoor Leighton.

The local Al-Swailem submitted the third-lowest price of SR2.5bn, which was followed by a SR2.64bn bid from the local Azmeel Contracting.

The other bidders and prices are:

  • Yuksel (Turkey)/ Al-Bawani (local) – SR2.65bn
  • Al-Rashid Trading & Contracting Company (local) – SR2.66bn
  • Saudi Binladin Group – SR2.7bn
  • Al-Yamama Trading & Contracting (local) – SR2.92bn
  • Shibh al-Jazira Engineering (local) – SR2.99bn
  • Al-Mabani General Contractors (local) – SR3bn
  • Al-Muhaidib Contracting (local) –SR3.9bn

The complex is the latest of several major governmental construction projects currently planned or under execution in the kingdom.

Saudi Arabia’s Defence Ministry has invited contractors to submit prices to build the first phase of its planned Military Medical City, also located near Princess Noura University, with bids due in June. The first phase of the hospital will contain 1,500 beds, as well as laboratories, warehouses and administrative buildings. The construction contract will include providing infrastructure and utilities.

In late April, the Interior Ministry received bids for the latest package on its multibillion-dollar King Abdullah Programme (KAP) security compounds network scheme.

Cyprus-based Joannou & Paraskevaides (J&P) and the local El-Seif Engineering Contracting submitted the low bids for six packages on phase 2d of the KAP programme..

J&P submitted the lowest price for four of the packages, with El-Seif submitting the lowest bid for the remaining two contracts.

For packages 2, 3, 4 and 5, J&P submitted the lowest prices, ranging from SR1bn to SR1.6bn. For package 1, El-Seif submitted a price of SR2.2bn, while for package 6, the contractor submitted the lowest bid of SR3.5bn.

Phase 2d of the KAP programme will involve the development of security complexes at different locations in the kingdom, which will include administration buildings, headquarters, housing units and infrastructure. The packages were formerly part of the contract awarded to the local Saudi Oger in 2011 for the second phase of the scheme. The ministry cancelled Oger’s deal in 2012 for undisclosed reasons and has retendered the second phase in several separate packages.

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