Knowledge Economic City unit pens SAR 91M deal

Knowledge Economic City (KEC) stated that its subsidiary, Algharraa International Real Estate Development Co. Ltd., signed a SAR 90.99 million contract (excluding VAT) with SALCO Saudi Contracting Co.

The deal aims to execute infrastructure works for the southeastern zone of Knowledge Economic City.

The company said in a statement to Tadawul that the contract covers general site works, grading, excavation and backfilling, and construction of roads and sidewalks. The work scope also includes potable water, sewage, stormwater drainage, irrigation and firefighting networks, electrical works, street lighting, ICT infrastructure, and district cooling networks, in accordance with the approved designs and technical specifications.

The contract has a duration of 24 months. Payments will be made in installments based on monthly progress certificates reflecting actual completion rates.

The financial impact will be reflected in the company's cash flows during the execution period, while contract costs will be capitalized as part of the project's development cost in accordance with International Financial Reporting Standards (IFRS) and the company's applicable accounting policies.

KEC noted that there are no related parties involved in the contract, adding that the agreement forms part of its strategy to complete the infrastructure development of its land portfolio, attract investments, and pave the way for future development projects.