Saudi Arabia receives bids for security network packages

28 April 2014

Local and Cyprus-based contractors submit low bids for six construction packages on King Abdullah Programme

Cyprus-based Joannou & Paraskevaides (J&P) and the local El-Seif Engineering Contracting have submitted the low bids for six packages on phase 2d of the Saudi Interior Ministry’s multibillion-dollar King Abdullah Programme (KAP) security compounds network scheme.

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 ($267m) 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 that was 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.

In February, the Interior Ministry received bids for phase 2e of the KAP programme. J&P submitted the low bid for five packages, while Beijing Emirates offered the lowest prices for the remaining three contracts. Each package is estimated to be worth between SR500m and SR1bn.

In December, El-Seif Engineering Contracting won an estimated SR2.5bn deal to build phase 2a of the security compounds network programme.

The security compounds will be used to house, educate and train members of the kingdom’s public security, civil defence, police, passports division, and special security and investigative forces. The facilities have been designed to include schools, mosques, theatres, civilian dormitories, military barracks, administrative buildings, training facilities and units for recreation and entertainment.

The KAP programme will cover the construction, operation and maintenance of 28 types of facilities at more than 50 locations. In total, the ministry is expected to spend more than $13bn across the five phases of the project.

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