KEC unit signs SAR 149M contracts for first phase of IWD project

Logo of Knowledge Economic City (KEC) 

Knowledge Economic City (KEC) said its subsidiary, Al Gharra International Co., signed two contracts today, Nov. 4, valued at SAR 149 million for the first phase of the Islamic World District (IWD) project.

In a statement to Tadawul, the company said the first contract was signed with Alghanim International Co. for the execution and completion of all structural and embedded mechanical, electrical, and plumbing (MEP) works for cluster 1 of phase 1, in line with approved designs, agreed specifications, and regulatory requirements.

The contract is valued at SAR 84.9 million, excluding VAT, and covers the construction of a built-up area of 86,000 square meters (sqm) for over 1,000 hotel units.

The second contract was signed with China Gezhouba Group Corp. (CGGC) for the execution and completion of all structural and embedded MEP works for cluster 2 of phase 1, in line with approved designs, specifications, and regulatory requirements.

The contract is valued at SAR 64 million, excluding VAT, covering 62,000 sqm for the development of over 770 hotel units.

The first contract has a duration of 20 months, while the second spans 18 months, the statement added.

Contractor payments will be made in installments based on monthly progress reports, spreading the financial impact of cash outflows over the project’s construction period.

The IWD project is strategically located at the intersection of King Abdulaziz and Prince Nayef main roads in the southeastern part of Knowledge Economic City.

The company has allocated approximately 900,000 sqm for development, designed in accordance with the Transit-Oriented Development (TOD) concept.

The site is about 100 meters from the Haramain High-Speed Railway Station and is directly connected via the Madinah Gate Project.