Saudi Arabia’s Ministry of Transport and Logistic Services is expected to release the tenders for Jeddah - Makkah and Jeddah-Jazan highway projects under the Public-Private Partnership (PPP) model by the first quarter of 2024, a source aware of the developments told Zawya Projects.

In April, Zawya Projects had reported that the Ministry intended to procure Operation & Maintenance (O&M) services in addition to developing and operating Motorway Service Areas (MSA) for the Jeddah-Makkah highway.

“The tender for the design-build-operate services contract is expected to be announced by January 2024,” the source told Zawya Projects.

He said the contract duration is expected to be 10 years. 
The overall project completion and commissioning scheduled for the first quarter 2026, a second source told Zawya Projects, adding that his estimate of the project cost is $50 million.

Jeddah-Jazan Highway, which will extend for 570-kilometres, includes conversion of existing 280km two-lane stretch into three lanes.

The source said the contract is likely to be issued by the end of first quarter of 2024, noting that the build-operate-transfer contract includes a construction period of four years and operations and maintenance period of 26 years.

The overall project completion and commissioning scheduled for the first quarter 2028, the second source said, adding that his estimate of the project cost is $320 million.

In April, Zawya Projects had reported that Saudi Arabia plans to tender four highway PPP projects.

(Reporting by Senthil Palanisamy; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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