Middle East Healthcare Co.(Saudi German Hospital)announces approval of awarding of Contracts for the design and construction of Saudi German Hospital Makkah(300 Beds) and Staff Housing in Makkah and Dammam to International Hospital Construction Company (related party)for SAR 600.74 million as follows:
1.The awarding of the contract is approved by the Board of Directors on 07/05/2018.Subject to the approval of the Ordinary General Meeting
2. The total cost of project is SAR.600.74 million.Details are as follows:
A.Hospital in Makkah SAR 388.91 Million.
B.Staff Housing in Makkah SAR.113.73 Million .
C.Dammam Staff Housing SAR 98.10 Million.
3.Company expects to complete the project within 36 months from the date of
award.
4.The project is expected to be financed mainly through bank loans and partly through internal generation by the company.
5.Related parties: International Hospital Construction Company is a related party in which three directors of the company namely Sobhi A Batterjee Khalid A. Batterjee and Sultan Sobhi A Batterjee are shareholders
6.The recommendation was made on an arms length basis following the process of bidding and evaluation. The interested directors stayed away from the discussions on this agenda and abstained from voting for approval.
7.Additional Information: The project is considered to have material positive impact on the revenues and income of Middle East Healthcare Company(Saudi German Hospitals)details of which shall be announced in due course.