Knowledge Economic City Inks $960M Agreement with Gezhouba
The Saudi Knowledge Economic City (KEC) Company signed three framework agreements with China Gezhouba International Engineering Group (CGGC), with a total value of 3.6 billion riyals ($960 million) making CGGC responsible for the engineering, supply and implementation stages of some of its projects.
The agreements were signed during the third forum of the Belt and Road Initiative held in China. The Knowledge Economic City signed primitive framework agreements with Gezhouba about this initiative last June.
Breakdown of Three Agreements
The Knowledge Economic is currently implementing a group of projects in Medina.
The company said that the first agreement relates to the Al-Alya mixed-use project, which covers the residential, hospitality, retail and education sectors. The Chinese company will act as the general contractor for the project at a value of 1.5 billion riyals.
The second and third agreements relate to implementing the first phase and establishing the infrastructure of the mixed-use Islamic World Avenue project, which includes residential, hotel and tourism projects, at a value of 2.1 billion riyals.
The Knowledge Economic City told the Saudi Stock Exchange on Wednesday that the new agreements specified the initial estimated costs, financial payments to the contractor and the payment mechanism. The final agreement will be reached after some steps, including detailed designs, materials and proposed equipment.
What is Knowledge Economic City?
It is noteworthy that the Knowledge Economic City Company was established as a Saudi joint stock company with a capital of 3.4 billion riyals. IT was launched by King Abdullah bin Abdulaziz in 2006.
The company develops real estates and economic cities including infrastructure, telecommunication networks, power plants, water treatment plants.
Its project covers an impressive area of 8.6 million square meters within the boundaries of Al Haram Al Madani and within Medina.
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