Middle East Healthcare Co. (MEAHCO) has awarded the design and construction contract of Saudi German Hospital Makkah and staff housing in Makkah and Dammam to International Hospital Construction Company (IHCC) for SAR 600.74 million, it said in statement to Tadawul on Tuesday.
The 300-bed hospital in Makkah will cost SAR 388.91 million, while staff housing in Makkah and Dammam will cost SAR 113.73 million and SAR 98.10 million, respectively.
The projects are expected to be completed within 36 months from the date of award and will be funded through bank loans and internal cash flows, the statement said.
Three directors of MEAHCO - Sobhi A. Batterjee, Khalid A. Batterjee and Sultan Sobhi Batterjee - are shareholders in IHCC.
The recommendation was made on an arms length basis following the process of bidding and evaluation, MEAHCO said, adding, “the interested directors stayed away from the discussions on this agenda and abstained from voting for approval”.
The projects will have a material positive impact on the revenues and income, the statement said.
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