Turkish contractor Bulgu Construction & Trading is expected to win an estimated SR164m ($44m) contract to build 166 new villas at the Haii al-Nakheel neighbourhood in the Al-Sinaiyah district of Yanbu City.

The Royal Commission for Jubail & Yanbu issued the tender for the fourth phase in late-April this year, as part of a government initiative to increase affordable housing in the industrial city.

The commission will hold a pre-bid meeting on 21 June with bids closing on 25 July. Completion of the project is planned for the second quarter of 2012.    

“The fourth phase is just a continuation of the previous two phases. Bulgu was the low bidder on [phase two and three] and is already on the ground and mobilised. I’m not sure anyone else could make a more competitive case to win [phase four],” says a source close to the project.        

The contract includes architectural, structural, telecommunications, safety, power, lighting, mechanical, electrical and plumbing services for 166 public housing villas. The contractor will also be responsible for grading and clearing the site, building sewage and drainage systems, the construction of boundary walls and gates, landscaping, soil treatment and external lighting.

If it is awarded the contract, it would be Bulgu’s third win in less than a year. Bulgu was awarded the contract for the SR175m second phase in May 2009 and the SR273m third phase in January this year. Both phases have been allowed 24 months for completion.

Phase two included the procurement and construction of 173 villas in the Al-Oypun neighbourhood of the Al-Sinaiyah district of Yanbu City. The third phase included procurement and construction of a further 280 villas in the Al-Oyoun and Al-Nakheel neighbourhoods.