Wedoany.com Report on Mar 10th, Saudi Arabia's NEOM new city development project has recently issued a Request for Proposal (RFP) for the second phase of its worker housing construction plan. This phase will build up to 20 residential clusters specifically designed for the workforce under a public-private partnership (PPP) framework. Each cluster is expected to provide approximately 10,000 accommodation units. The estimated development cost for a single community village ranges between $400 million and $450 million, with the potential total value of the second-phase housing project exceeding $8 billion.
NEOM completed the first wave of its housing construction project last June at a cost of $5.6 billion. This included building ten communities within NEOM, capable of housing 95,000 residents. Bidders for the first wave included local companies such as Alfanar Global Development, Nesma Hold Company, Al Majal Al Arabi Group Company, and Tamasuk. The second phase of housing construction will include more residential units, aiming to provide suitable community housing for NEOM's growing workforce. In addition to basic services, the communities will also feature lifestyle amenities such as multi-purpose sports fields, cricket pitches, tennis courts, volleyball courts, and basketball courts.
Meanwhile, the state-owned Qiddiya Investment Company (QIC) has also received bids for contracts exceeding 105,000 square meters for the Qiddiya City employee housing construction project. The scope includes constructing employee units within this rapidly developing city. The tender was issued last October. QIC is accelerating the development of Qiddiya City assets and has commenced major construction work on the Performing Arts Centre at the Qiddiya entertainment city. UK consultancy Deloitte and US firm AECOM are advising the client on the PPP transaction for the housing construction.
NEOM's rapid development, supporting Saudi Arabia's Vision 2030, aligns with the Kingdom's sustainable development mission. The second phase of the worker housing construction project is crucial for ensuring housing sustainability. The newly formed partnerships demonstrate the team's and partners' ability to swiftly complete financial settlements of record amounts.
