NEOM, a major project development company in Saudi Arabia, has announced another project opportunity. It is reported that Saudi NEOM is preparing to announce an RFP for a $8 billion PPP housing construction project.
This project is the second batch of community development projects in Saudi NEOM, which includes over 20 communities with an average area of 240000 square meters each, accommodating 10000 residential units. The estimated budget for a single community is between $400 million and $450 million, which means the overall project cost will exceed $8 billion.
NEOM Community PPP Project
In June 2023, NEOM finalized the first batch of community development PPP projects. The project is worth approximately 5.6 billion US dollars and was one of the largest residential PPP projects in the world at that time.
The priority bidders for the first phase of the project are all local Saudi companies, including Alfanar Global Development Company, Almutlaq Real Estate Investment Company, Nesma Holdings Company, and Tamasuk.
Tamasuk is a leading diversified infrastructure developer and real estate developer in Saudi Arabia, participating in projects through two independent partners, Al Majal Al Arabi Group Company and Saudi Arabian Trade and Construction Company.
Alfanar is the largest single investor in the project, with an investment of approximately 2.67 billion US dollars. Riyadh Bank, SAB, Alinma Bank and three other commercial banks provide financing.
The first batch of projects involves the construction of 10 communities within the scope of NEOM, including sports and entertainment venues, and the use of self owned solar power generation facilities. The temporary accommodation required during NEOM construction is a modular unit that can be reused after community construction is completed.
The facilities and management contract for this project is for a period of 5 years (excluding the construction period) and will expire in 2030. Deloitte and AECOM provide transaction consulting services for this project.Editor/XingWentao