KEC pens SAR 503M contract with China’s Gezhouba for contracting work

Logo of Knowledge Economic City Co.

Knowledge Economic City (KEC) signed, on Dec. 22, a contract with China Gezhouba Group International Engineering Co. (CGGC) worth SAR 503 million, excluding value added taxes (VAT).

The contract covers the implementation of all contracting works for a group of seven residential towers, representing an addition to the current under construction units, as part of the first phase of Al-Alya Project.

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In a statement to Tadawul, the company said that the agreement includes the construction, electromechanical and finishing works for a group of seven towers providing residential apartments of various sizes as part of Al-Alya mixed-use Project. This new contract will add to the current work of the current group of buildings being constructed.

The contractor’s dues will be paid in installments per monthly payment certificate based on work progress. Accordingly, the financial impact is represented in the cash outflow for the amount payable to the contractor over a period of 30 months.

Al -Alya will deliver nearly 2,000 residential units including 1,000 residential apartments, 430 hotel apartments, 430 serviced apartments and 70 villas (mansions) on a total land area of 270,000 sqm.

It also includes office buildings, commercial areas, a mosque and health clubs distributed within the project, and includes a nursery and the Hayat Center Hotel with 148 hotel rooms. One of the most important components of the project is the central park, which has an area of more than 40,000 sqm, in addition to other open areas, bringing their total to about 70,000 sqm, which enhances the quality of life, the statement added.

Meanwhile, the company noted that 396 residential apartments are currently being implemented through the contractor, Elkhereiji Commerce and Contracting Co., which have been made available for sale through the off-plan sales under the supervision of the Economic Cities and Special Zones Authority (ECZA).

No related parties are included in the deal, KEC said.

According to data compiled by Argaam, KEC signed in June 2023 a framework agreement with CGGC to support the development of the Saudi-listed company’s projects.

three preliminary agreements with China Gezhouba Group International Engineering Co. to finalize the contracting works of the projects related to the framework agreement signed in June 2023.