NEOM has issued the request for proposals (RFP) for the Saudi Arabia Housing Accommodation project. The tender is for the contract to develop the second wave of its housing deals for worker accommodation. The project is to be enacted on a public-private partnership basis as it was on its first project. The client company has announced that the bid submission deadline is 5th February. The second wave of the community village scheme will entail the construction of up to 20 villas. Each of these villas will encompass about 10,000 accommodation units. The budget of each community village could be $400-450 million. This means that the overall budget for the Saudi Arabia Workers Accommodation project could be worth over $8 billion.
The Scope of NEOM’s Saudi Arabia Housing Accommodation Project
NEOM intends to complete the Workers Accommodation project in Saudi Arabia in the first and second waves. The company finalized the first wave of its housing project for its community village PPP in June, last year. The first wave of the project cost $5.6bn for its completion. The second wave is expected to contain more housing units hence the $8bn budget set out for it. The proffered bidders for the first phase of its residential communities included a number of locally based companies. This included locals Alfanar Global Development and Nesma Hold Company as one of the preferred contractors. It also included Al Majal Al Arabi Group Company as well as Tamasuk. The scope of the first phase of the project also included building ten more communities across Neom. This would add the capacity for 95,000 more occupants once the project’s first phase is completed.
The Aim of the Accommodation Project
NEOM seeks to ensure that it constructs affordable and conducive community housing units for its workers through the Saudi Arabia Housing Accommodation Project. It has selected some of the leading companies in Saudi Arabia as partners in delivering and operating temporary communities. The Saudi Arabia Workers Accommodation PPP project seeks to provide world-leading services and infrastructure. The newly formed partnerships mark an important milestone for the region. It is a testament to the capabilities of our team and partners who rapidly achieved financial close on a record amount. In addition to essential services, communities will also include a wide range of lifestyle facilities. This includes multi-purpose sports fields, cricket ovals, tennis courts, volleyball courts, and even basketball courts.
The Contractors Involved in the Saudi Arabia Housing Accommodation Project
UK-headquartered consultancy Deloitte and US firm AECOM are advising the client on the Saudi Arabia Workers Accommodation housing PPP transactions. NEOM seeks to add to the list various local-based and international companies to the second wave of the project. Once the project is completed, it will be essential to provide housing to NEOM’s workforce which is ever-growing in numbers. The rapid development of NEOM’s initiatives that support Vision 2030 is in line with the mission for the sustainable development of the Kingdom. The second phase of the Saudi Arabia Workers Accommodation PPP project will be critical in ensuring housing sustainability in Saudi Arabia.
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