Saudi Arabia's Knowledge Economic City Company (KEC) signed three agreements with China Gezhouba Group International Engineering Company (CGGC) to execute the works of the projects related to the framework agreement signed last June.
The company listed on Tadawul stock market said in a disclosure published that the cost of the three agreements is estimated at $970 million.
The agreements were signed within the third forum of the Belt and Road Initiative (BRI) in Beijing, China.
China's Deputy Prime Minister He Lifeng attended the signing ceremony, demonstrating Beijing's desire to highlight the role of Chinese companies in implementing major global projects.
The new agreements determine the estimated project cost, payment schedule, and cost settlement mechanism, provided the final contract cost will be determined later and agreed upon.
According to the Knowledge Economic City Company, al-Alya Project will be the project's general contractor, including construction material supply services.
It has an initial cost of SR1.5 billion, designed on 269,000 sqm area with 400,000 sqm as GFA provides a hotel with 120 room keys and around 1,500 residential apartments.
Phase I of the Islamic World District Project (IWD) is estimated at SR1.5 billion. It is planned to occupy the largest plot in the south area of KEC with 900,000 sqm and connected to the Haramain High-Speed Train Station in Madinah.
The first phase also includes a multi-use destination with a chain of hotels providing about 5,061 hotel units, 743 residential apartments, a market, a service area, and support elements.
The project aims to contribute to bridging the gap for hotel room keys in Madinah as part of Vision 2030, aiming to increase visitors to 30 million annually.
The project will provide around 14,000 hotel room keys, 1,800 residential apartments, retail areas, and other components upon completion.
KEC explained that there would be no financial impact of the first agreement, and it would be determined according to the subsequent detailed contracts and the nature of the cooperation related to that project.
