OCI unit wins $552m Saudi stadium deal
Cairo, September 19, 2011
A unit of Egypt's Orascom Construction Industries (OCI) won a 2.07 billion Saudi riyal ($552 million) contract to design and build a major sports stadium in Saudi Arabia's Jeddah, a source close to the deal said on Monday.
The contract for a 60,000-seat stadium at the King Abdullah Sports City was awarded to Six Construct -- which is fully owned by Besix Group, itself a 50-50 joint venture between OCI and Belgian construction group Besix -- in partnership with Al-Muhaidib Contracting Company.
The source told Reuters that Six Construct with local company Al-Muhaidib had bid for the project against at least five other groups, confirming a report carried by the London-based Meed.
The King Abdullah Sports City is planned to cover an area of 9 sq km, north of Jeddah.
Oil firm Saudi Aramco was given the task of developing the scheme on behalf of the government in 2009. It has since tendered road building and enabling works for the project.
OCI, Egypt's biggest listed firm, posted a 15 percent rise in second-quarter net profit and has said it expected construction orders to grow this year as governments in the Middle East try to create jobs by boosting infrastructure spending. -Reuters