Meed | Neom awards estimated $1bn Oxagon port contract

Neom awards estimated $1bn Oxagon port contract

24 June 2024

Saudi Arabia’s Neom has awarded an estimated SR4bn ($1bn) design-and-build contract to deliver infrastructure and building works for Terminal 1 of the port at the Oxagon industrial city development.

The contract was awarded to a joint venture of local firm El-Seif Engineering Contracting, Egyptian contractor Hassan Allam Construction and Beijing-headquartered China Harbour Engineering Company.

The scope of the package includes the development of a flexible quay, the construction of several new buildings and infrastructure works.

Contractors will be required to appoint a consultant for design execution.

Jacobs is the lead design consultant for the port project.

"The original SR12bn ($3.24bn) project went through several phases of de-scoping, where the client focussed on bringing efficiency and speeding up the delivery of the most critical elements of the project," sources familiar with the scheme told MEED.

In January, MEED exclusively reported that the contract award for the project was expected in the second quarter of this year.

The packages are the latest to be tendered for the port. In October, Neom selected the joint venture of Belgium’s Deme and Greece’s Archirodon for the estimated $1bn contract to complete the next phase of the Duba port expansion at Oxagon.

The second phase follows the award of a contract to deliver the first phase of the port expansion. A team of Boskalis, Besix and the local Modern Building Leaders was awarded that contract, with an estimated value of SR3bn ($800m), in mid-January.

Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud launched Oxagon in late 2021. It will include onshore elements as well as floating structures offshore. Construction works on the 48-square-kilometre, eight-sided industrial city have already started.

An expanded Duba port is a critical component of Oxagon and the broader Neom development, as it will allow greater volumes of materials to be imported for the project.

With an expected investment value of $500bn, Neom is the world’s largest construction programme.

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Yasir Iqbal