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$5bn Asir-Jizan Highway Construction Attracts Three Bidding Groups for Landmark Saudi PPP

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Asir-Jizan highway construction

Asir-Jizan highway construction has entered a decisive procurement stage after three consortiums submitted bids for Saudi Arabia’s estimated $5 billion transport project. The highway will strengthen regional connectivity between the Asir highlands and the Red Sea coast through Jizan. Moreover, the scheme will become one of the kingdom’s largest road public-private partnerships, supporting economic diversification, logistics efficiency and tourism under Vision 2030.

Saudi Arabia’s Roads General Authority, the National Centre for Privatization & PPP and the Aseer Development Authority are leading the procurement process. The project follows a design, build, finance, operate and maintain model under a 30-year concession. Consequently, private investors will assume long-term responsibility for delivering and operating the strategic corridor.

The procurement marks another milestone for Saudi Arabia’s expanding infrastructure pipeline. Furthermore, the highway ranks among four flagship road concessions planned to attract private capital into the country’s transport sector.

Asir-Jizan highway construction advances with competitive bidding

The latest tender attracted three bidding groups after earlier shortlisted teams underwent changes before submission. Several previously qualified partners withdrew, leaving a competitive field of international and regional contractors and investors.

The bidding consortiums include:

Earlier qualification rounds also included additional consortiums. However, some partners exited before the final bidding phase because of strategic decisions.

The highway will stretch approximately 136 kilometres from Al-Farah in the Asir region to the Red Sea through Jizan. Once complete, it will feature three lanes in each direction, improving mobility across southwestern Saudi Arabia.

Engineers will also construct six major intersections, 57 bridges extending about 18 kilometres, and 11 tunnels spanning approximately 9 kilometres. These structures will overcome the mountainous terrain while improving safety and travel reliability.

Asir-Jizan highway construction supports Saudi Vision 2030

The project carries strategic importance beyond transport improvements. It will create a faster connection between inland communities and Red Sea economic zones while supporting tourism, trade and freight movement.

Additionally, the highway aligns with Saudi Arabia’s strategy to increase private-sector participation in infrastructure delivery. The kingdom continues expanding public-private partnerships across transport, aviation, utilities and social infrastructure.

Improved connectivity could also unlock investment opportunities across the Asir region, which Saudi Arabia is positioning as a major tourism destination. Better road infrastructure will reduce travel times while supporting commercial development and logistics operations.

The concession structure further encourages lifecycle asset management. Instead of focusing only on construction, the successful consortium will maintain and operate the highway throughout the concession period. This approach aims to improve service quality while reducing long-term public expenditure.

Industry observers expect the client to evaluate technical and financial proposals before selecting the preferred bidder. After financial close, construction activities will begin according to the agreed implementation programme.

The project also demonstrates Saudi Arabia’s growing confidence in using private finance to deliver complex transport infrastructure. Consequently, it may establish a benchmark for future highway concessions across the Gulf region.

The project’s emphasis on improving regional mobility reflects a wider infrastructure trend across the Gulf, similar to the infrastructure projects in Al Kharaitiyat and Izghawa in Qatar, where new road and utility networks are being developed to support urban growth and enhance transport connectivity.

Asir-Jizan highway construction

Also read: $5bn Asir–Jazan Road Project: Chinese Consortium Secures Major Saudi Arabia Construction Contract

Project fact sheet

Name: Asir-Jizan Highway Project

Value: Approximately $5 billion (SR20 billion)

Location: Asir Region to Jizan, Saudi Arabia

Project length: Approximately 136km

Road configuration: Three lanes in each direction

Major structures: Six intersections

Bridges: 57 bridges with a combined length of about 18km

Tunnels: 11 tunnels with a combined length of about 9km

Procurement model: Design, Build, Finance, Operate and Maintain (DBFOM)

Concession period: 30 years

Project purpose: Improve regional connectivity, logistics efficiency, tourism access and economic development

Procurement status: Three consortiums have submitted bids for evaluation

Client agencies: Roads General Authority, National Centre for Privatization & PPP and Aseer Development Authority

Strategic program: Saudi Vision 2030 transport and PPP initiative

Project team

Project owner: Government of Saudi Arabia

Lead authority: Roads General Authority (RGA)

PPP authority: National Centre for Privatisation & PPP (NCP)

Regional authority: Aseer Development Authority (ASDA)

Bidder Groups

  • Shaanxi Construction Engineering, Safari, Lamar Holding
  • Makyol, Shibh Aljazira Contracting, Tamasuk
  • China Harbour Engineering Company (CHEC), Vision Invest

Contract model: Public-Private Partnership (PPP) under a DBFOM concession

Current phase: Bid evaluation before preferred bidder selection

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