Saudi oil giant Aramco has signed an agreement with a private real estate developer, East West for Real Estate Development Company, for the construction of six residential compounds along the 1,200-km-long East-West pipeline.
 
The project will be a public-private partnership and is being developed on a build, own, operate and transfer (BOOT) model.
 
East West for Real Estate Development is a special purpose vehicle set up by leading Saudi real estate group Asyad along with Lamar Holding and the Wisayah Investment Company.
 
Aramco said these compounds will be complete and comprehensive stand-alone towns that will house 1,700 of their employees.
 
The scope of work includes development of residential buildings, life support and recreational facilities and full utility services over a 770,000 sq m area. Construction is scheduled to be completed by the second quarter of 2024.
 
This approach confirms Aramco’s interest in working with key public and private partnership developers, in line with Saudi Vision 2030.
 
As per the contract, the East West for Real Estate Development Company will be the builder, owner and operator of the six residential compounds, which it will finally transfer to Aramco after a 23-year long tenure.
 
The PPP approach confirms Aramco’s interest in working with the key private player in the development sector, in line with Saudi Vision 2030, said a top official.
 
The agreement is another customary investment in employee welfare, remarked Abdulaziz M. Al Gudaimi, senior vice president of Corporate Development.
 
"Approximately 1,700 employees across six pump stations anxiously await the successful completion of this project," stated Al Gudaimi.
 
"The appreciation goes to all those who participated in this undertaking for their hard work and dedication, including the bid review team, and our partners, Asyad and Lamar, for the exemplary collaborative effort," he added.
 
Asyad Group Vice Chairman Faisal Alsayed said the agreement was a very exciting project for his company. "We are honored and proud that our consortium has been selected by Aramco amid a tough competition," Alsayed said.
 
"Through Saudi Vision 2030, we believe that our consortium has the experience, scale, and capacity to deliver the project on time with the highest quality possible in construction, operation, and maintenance through the project life span," he added.
 
Lamar Holding Vice President Hani Abdulhadi said the ambitious new project would ensure that Aramco had a world-class asset.
 
"It will be delivered in partnership with the private sector to provide Aramco’s personnel with state-of-the-art facilities for many years to come," observed Abdulhadi.
 
"It demonstrates Aramco’s commitment as a world-class employer and innovator, and we are honored to be partnering with them on this long-term project. We are fully committed to this new era of growth for the private sector," he added.-TradeArabia News Service

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