Middle East
Mecca, Saudi Arabia signs $1.5 billion transportation PPP project contract
Seetao 2026-11-12 16:31
  • The project will improve the transportation organization and personnel evacuation capabilities for the Mecca pilgrimage
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On November 12, 2026, the Comprehensive Transportation Center under the Royal Commission of Mecca and the Holy Land signed a public-private partnership agreement for the Wasel Al Haram project with a related consortium, with a total amount of 5.664 billion Saudi riyals, approximately 1.51 billion US dollars. At the time when the agreement was signed, the number of pilgrims and deputy pilgrims continued to increase, putting greater pressure on transportation organizations in the center of Mecca and around the Grand Mosque. As a result, the project entered the implementation track.

Full financing of social capital

The project adopts a PPP model fully financed by social capital, divided into three investment packages with an expected investment period of 7 to 10 years. Package 1 and Package 3 were won by a consortium consisting of Saudi Arabia's Alqaid company, Spain's Moventis company, and Waskita, while Package 2 was won by the Mawgif consortium. The government does not directly bear the construction funds, but introduces private investors and professional transportation operators through long-term franchise arrangements, and hands over the responsibility of construction, operation, and maintenance to social capital.

Seven corridors and nineteen stations

According to the plan, Wasel Al Haram will construct 19 comprehensive transportation stations and supporting parking facilities along 7 transportation corridors leading to the center of Mecca, covering a total area of approximately 3.1 million square meters. The station layout takes into account the large-scale flow of people during the peak pilgrimage period and daily public transportation services, while the parking facilities provide nodes for private cars to transfer to public transportation. After the completion of the project, the transportation hub, parking facilities, and transportation corridors around the center of Mecca and the Grand Mosque will form a network covering the main passenger flow directions. Keywords: Middle East News Network, Transportation Hub, Infrastructure

New model of integrated construction and operation

The project combines transportation infrastructure construction, public transportation services, and long-term operation management to promote the transformation of urban transportation facilities from a single project construction to an integrated investment, construction, and operation model. For Mecca, this mode not only solves the problem of construction funds, but also brings the operation efficiency into the project's full cycle assessment, which urges investors to consider the later maintenance and passenger flow organization from the design stage. With the signing of the agreement, the three investment packages will gradually enter the design and construction preparation stage.Editor/Gao Xue

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