Bids invited for Makkah city’s transit-oriented development project in KSA

Prequalification bids have reportedly been invited for the development of Makkah city’s transit-oriented development in the Kingdom of Saudi Arabia (KSA). The bids were invited by the Western Asia country’s State Properties General Authority (SPGA).

Formerly known as the State Property Department, SPGA, exploits, invests, utilizes, operates, and maintains government real estate assets. Moreover, the authority proposes draft regulations related to its mandate and amends existing ones, in addition to setting rules and regulations.

The Makkah city’s transit-oriented development project’s submission deadline is 13 April 2023. However, the request for proposal is expected to be issued by 22 December 2022. Thereafter, the project aims to achieve commercial close by June 2023, an official statement from the State Properties General Authority noted.

An overview of Makkah city’s transit-oriented development

The major transit-oriented (TOD) project’s location will be in the Al Hajlah district within Makkah city. This site is approximately 300 meters from the Grand Mosque, adjacent to the Makkah Clock Tower. The land provided for the development will be on a lease basis for a 25-year period.

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Makkah city’s transit-oriented development site will span a total area of 167,000 square meters with a built-up area of about 254,258 square meters. The planned mixed-use project will include a range of retail outlets as well as a bus station. It will also include 400 hotel properties that will be a 400-key establishment.

The private sector will bear the responsibility for the development, design as well as operation of the project.

Cost, funding, and the project team

The Makkah city’s transit-oriented development project’s development will be in cooperation with the Royal Commission for Makkah alongside AL-Masha’ir Holy. 

At an estimate, the project’s total cost ranges between $399 million to $532 million. Currently, the project’s financial and lead advisor for the project is PwC. While the project’s technical advisers are SALFO Engineering and Management.