Logo of Knowledge Economic City
Knowledge Economic City (KEC) said the deadline for completing all works and handing over the site of Al-Alya residential project, which was set for 12 months starting from July, 2021, was extended to the end of December 2022, according to a bourse statement.
The contract's original cost of SAR 34.86 million is expected to be slashed to SAR 31.80 million, due to the value of the engineering process and the redesigning of electrical networks, KEC added.
There is no financial impact currently on the delay of work finalization. In addition, the postponement of project completion does not affect its future planned development, under the company's business plan, according to the filing.
The company also indicated that the holdup is due to the contractor’s delay in starting work on site, in addition to hinderances in getting approvals on some materials from the competent regulatory authorities and other shortage in required manpower by the contractor.
All obstacles, according to KEC, are now eliminated in preparation of completing the remaining works by year-end.
KEC signed in June 2021 a SAR 34.9 million contract with Mussad Al-Mutairi & Partner Co. for infrastructure works at Al-Alya residential project within KEC, according to Argaam's data.
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