Two contractors bid low for Saudi security network packages

05 March 2014

Firms from Cyprus and the UAE submit low bids for eight construction packages

Cyprus-based Joannou & Paraskevaides (J&P) and the UAE-based Beijing Emirates have bid low for eight packages on phase 2e of the Saudi Interior Ministry’s multibillion-dollar King Abdullah Programme (KAP) security compounds network scheme.

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 ($133m-$267m).

The ministry received bids from seven contractors on 27 February. The other bidders include:

  • Al-Rashid Trading & Contracting Company (local)
  • Al-Muhaidib Contracting (local)
  • El-Seif Engineering Contracting (local)
  • Al-Latifia Trading & Contracting (local)
  • Al-Fozan Group (local)

The work will involve building several administration and training buildings at various sites.

The Interior Ministry has also invited contractors to submit bids for the contract to build phase 2d of the security compounds network programme.

Firms have been invited to submit bids by 26 March for the construction package, which will involve the development of security complexes at different locations in the kingdom, including 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 KAP scheme. The ministry cancelled Oger’s contract in 2012 for undisclosed reasons and has retendered the second phase in several separate packages.

In December, El-Seif Engineering Contracting Company 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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