Saudi Arabia’s Health Ministry has invited companies to submit bids for two project management contracts for 12 new healthcare projects planned across the kingdom.

The first contract is for the project management of two medical cities, one planned for the northern region of the kingdom and the other planned for the southern region. The submission date for the programme management deal is 12 March.

The estimated SR4bn ($1.1bn) King Faisal Medical City, planned for the southern region, will have a 1,350-bed capacity and the Prince Mohammed bin Abdulaziz Medical City, planned for the northern region, will have a 1,000 beds. In addition to the hospitals, the medical cities will incorporate housing and other facilities for medical staff.

The two medical city schemes are part of the Health Ministry’s plans to spend SR16bn to develop five medical cities in different regions throughout the kingdom. The ministry recently appointed the US-based Vanir Construction Management as the project manager for the estimated $1.2bn King Khaled Medical City planned to be built in Dammam, located in the eastern province.

The second contract that the Health Ministry has put out for tender is for the project management of 10 new hospital projects, which will be located at various locations throughout the kingdom. Firms have until 13 March to submit bids for the programme management deal.

According to the government’s budget report, there are currently 137 hospitals under construction in the kingdom

The medical projects are part of the kingdom’s efforts to improve its provision of healthcare services for its rapidly growing population, which is expected to rise from the current 26.1 million to 29 million by 2015.

In the current budget, the government has set aside $23bn to be spent on health and social affairs for 2012, a 20 per cent increase over the 2011 allocation. According to the government’s budget report, there are currently 137 hospitals under construction in the kingdom.

It is not just Saudi Arabia’s Health Ministry that is planning to build large medical facilities. In August last year, the Interior Ministry received bids for two medical city projects worth an estimated total of SR25bn.

The two medical cities will have the same design and will both include three hospitals and all related medical and residential facilities. The medical facilities will have a total built-up area of about 400,000 sq m.

Each complex will also contain academic and clinical centres, as well as a research centre. The residential villas and apartments will have a total built-up area of about 500,000 sq m. The developments are also planned to have office buildings and service stations. The medical complexes will have about 200,000 sq m of car parking.