The NEOM Workers Accommodation Project is a housing development programme planned in Saudi Arabia to support workforce accommodation associated with the NEOM development. NEOM has issued a request for proposals (RFP) for the second phase of the programme, which will involve the development of additional worker housing under a public-private partnership structure similar to the initial phase. The bid submission deadline has been set for 5 February.
The second phase of the community village scheme is planned to include the construction of up to 20 residential clusters designed for workforce accommodation. Each cluster is expected to provide approximately 10,000 accommodation units. Individual community villages are estimated to carry development costs in the range of $400 million to $450 million, placing the potential total value of the wider workers accommodation programme at more than $8 billion.
Other Projects
Other than the NEOM houusing accommodation PPP, the Qiddiya city staff accommodation project is also taking shape. State-owned Qiddiya Investment Company (QIC) received bids for the 105,000 sq. m+ contract for the Qiddiya City staff accommodation project. Its scope entails the construction of staff units within the rapidly growing city. The tender was issued in October last year. QIC is accelerating plans to develop additional assets at Qiddiya City. For instance, QIC has started the main construction works on its performing arts center at Qiddiya Entertainment City.
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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