China’s Top starts $400m Aramco housing construction

12 September 2024

Top International Engineering Corporation, the international entity of China’s Shaanxi Construction Corporation, has started the engineering, procurement and construction (EPC) works on the SR1.5bn ($400m) Saudi Aramco staff accommodation across the remote sites of Haradh and Wudayhi.

Senior executives from the developer team that won the contract, which comprises local companies Lamar Holding and Asyad Group, and Top broke ground on the project on 11 September, less than two months after the project reached financial close.

 A special project vehicle, First Developers Real Estate Development Company, has been formed to implement the Haradh and Wudayhi housing public-private partnership (PPP) project.

According to Hani Abdulhadi, Lamar Holding's managing director, Top’s proven ability to deliver complex infrastructure projects on a global scale makes them the “perfect partner for this ambitious development”.

The project’s total built-up area will exceed 140,000 square metres, making it one of the largest staff housing developments in the region.

The complexes are expected to house up to 2,800 employees across 11 residential buildings. There are also 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 includes the construction of a sewage treatment plant operations building and the installation of chiller plants, according to regional projects tracker MEED Projects.

Aramco first tendered the Haradh and Wudayhi PPP contract in 2019, before retendering it in 2022.

Saudi Aramco received three bids for the retendered contract on 25 August 2022. The other two bidding teams were led by Al-Rajhi Development Company and Yamama, both based in Saudi Arabia.

MEED previously reported that local lenders led by Riyad Bank had agreed to provide debt for the project.

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

Aramco is procuring two other housing PPP schemes. 

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

In January 2023, a team led by Lamar Holding is understood to have won the contract to develop Aramco's staff accommodation located on Abu Ali Island. The project is expected to house 700 employees and is valued at an estimated $250m.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12508651/main.jpg
Jennifer Aguinaldo
Related Articles