US$2 billion construction contract awarded
11 July 2024
A SAR 7.8 billion (US$2 billion) joint venture contract has been awarded to Diriyah Company, El Seif Engineering Contracting Co. Ltd (ESEC) and China State Construction Engineering Corporation Limited (CSCEC) for the creation of a major new mixed-use district in Saudi Arabia to build advanced educational institutions, cultural venues, modern offices, and a luxury hotel.
Diriyah Company, El Seif Engineering Contracting Co. and China State Construction Engineering Corporation Limited signing the contract
Construction work is set to commence from Q3 2024 for what will be a major flagship project within the Diriyah development area. Diriyah is located on the northwestern outskirts of the Saudi capital, Riyadh and was the original home of the Saudi royal family.
Contracts for the work on the Northern District Construction Contract have been officially signed between Ahmed Al Bassam, CEO of El Seif Engineering Contracting, Chuanhai Wei, CEO of China State Construction Engineering Corporation Limited KSA Branch, and Diriyah Company Group CEO Jerry Inzerillo.
The contract is one of the largest that has been awarded in Saudi Arabia in 2024.
Diriyah Company Group CEO Jerry Inzerillo said, “This represents a major step in our accelerating development strategy and commitment to making Diriyah a place for the world to be able to learn, absorb culture, and experience a vibrant and welcoming visitor destination.”
The contract is also the first major implementation of Diriyah Company’s new delivery partnership procurement strategy. The company says the approach fosters a collaborative environment among Diriyah and its main contractors, SMEs, manufacturers, and suppliers, ensuring efficient and effective project execution.
The ESEC and CSCEC joint venture is the latest project the two companies have been awarded by Diriyah, with major infrastructure work already commencing on the development site. This includes building road tunnels and the world’s largest ever single concrete pour of 6,100 cubic meters as part of construction foundation work. This relates to an earlier SAR 6.65 billion (US$$1.8 billion) contract awarded in June 2021.
“The agreement with CSCEC is a further example of the ever-closer economic ties and constructive business partnerships that are being built between Saudi Arabia and China,” added Inzerillo.
