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A team led by Saudi-headquartered Lamar Holding has reached financial close on the project to develop Saudi Aramco’s staff accommodation on Saudi Arabia’s Abu Ali Island, according to sources close to the project.

The Abu Ali Services Residential Compound public-private partnership (PPP) project is expected to house 500 employees across 260,000 square metres of land.

The contract, which comprises six residential buildings with support facilities, is estimated to be worth SR860m ($229m).

One of the sources said the local Riyad Bank agreed to provide long-term debt to the project.

Debt will account for roughly 80% of the project cost, with the rest accounted for by equity. 

The project is scheduled for completion within 28 months.

US/India-based Synergy Consulting provided financial advisory services to the developer team.

Aramco awarded the contract to develop the Abu Ali housing PPP in early 2023.

The winning consortium contains the local Arabian Castles for General Contracting as the operation and management contractor and China’s Sepco as the engineering, procurement and construction (EPC) contractor. 

Aramco has so far awarded two other housing PPP projects.

In December 2022, a team comprising Lamar Holding and Asyad Group won the contract to develop PPP accommodation complexes at Haradh and Wudayhi in the Eastern Province of Saudi Arabia.

The contract is valued at $450m. The project reached financial close in July this year.

The complexes are expected to house up to 2,800 workers across 11 residential buildings, with two mosques and a clinic, as well as a refurbished recreational facility and an expanded medical facility at each complex.

The scope of the contract also includes the construction of a sewage treatment plant operations building and the installation of chiller plants, according to regional projects tracker MEED Projects.

A team led by El-Seif Engineering & Contracting was awarded the contract to develop and implement the Tanajib housing PPP project in early 2022. The project scope includes the development of 2,500 housing units, in addition to a food court, parking facilities and infrastructure.