The Asir Gizan Expressway project in Saudi Arabia has entered its final sprint phase. Four international consortia are preparing to submit contract proposals worth approximately 2 billion Saudi riyals, or about 5 billion US dollars, with the bidding deadline set for May 31st. This 136 kilometer highway will become one of the largest highway PPP projects in Saudi Arabia's privatization plan.

China, Turkey, and South Korea divide the bidding seats among the three countries

When the bidding was released in September last year, five groups were shortlisted. The situation has undergone several changes since then. Türkiye IC Ictas and the local Algihaz Holding consortium quit halfway, and Samsung C&T of South Korea also withdrew its bid, and the bidding pool was finally reduced to four.

The four consortia have a clear lineup: Shaanxi Construction Engineering Group collaborates with Saafari and Lamar Holdings, with three companies from China, Saudi Arabia, and the local market respectively; Maqiaor, in collaboration with Hebb Aljazila Contracting Company and Tamasuk, led the way with Erqi Enterprises; China Harbour Engineering Company and VisionEnvest team up to focus on the local market; The fourth team is the most diverse - Alayuni, Limak Holding, Nesma&Partners and Plenary, spanning Saudi Arabia, Türkiye, South Korea and Australia.

This combination reflects the attractiveness of the Saudi infrastructure market. By 2025, the total investment in infrastructure in Saudi Arabia will exceed 150 billion US dollars, with the transportation sector accounting for over 30%. The average return on investment for highway PPP projects will remain stable between 8% and 12%.

136 kilometers through mountains and seas

The route starts from Alfarah in Asir Province and extends all the way to the Red Sea coast via Gizan. Two way six lane road with 6 intersections, 57 bridges with a total length of 18 kilometers, and 11 tunnels with a total length of 9 kilometers, with a bridge tunnel ratio of nearly 20%. This means that there is a bridge or tunnel every 5 kilometers, and the construction difficulty is not small.

During the 30-year franchise period, the DBFOM model is adopted, which includes the design, construction, financing, operation, and maintenance of the entire chain. After completion, the daily average traffic capacity is expected to reach 35000 vehicles, reducing the travel time from Asir to Gizan from the current 2 hours to about 90 minutes, directly connecting the logistics corridor between the southwestern inland of Saudi Arabia and the Red Sea ports. Keywords: Middle East news, transportation infrastructure

This project is one of the four major sections of Saudi Arabia's 2030 Vision Highway Privatization Plan. Four consortia, $5 billion, to be announced on May 31st.Editor/Cheng Liting