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Addendum Announcement from Knowledge Economic City In Regard to the Infrastructure Work Contract of Al-Alyaa Suburb Project Signed with Musaad Al-Mutairi and Partner Company

KEC 4310 31.16% 16.50 3.92
Element List Explanation
Introduction The Knowledge Economic City Co “Company” has announced on Tadawul on 30th June 2021 the signing of the Infrastructure Work Contract of Al-Alyaa Suburb Project which comes as part of the ambitious development plan includes anchor projects that launched under the patronage of His Royal Highness Prince Faisal bin Salman bin Abdulaziz Al Saud, Governor of Al-Madinah Al-Munawwarah in April 2021, the Company would like to announce some developments related to the infra contract as follow:
Date of Posting the Previous Announcement of Development on Tadawul's Website 2021-06-30 Corresponding to 1442-11-20
Hyperlink to the Previous Announcement Click Here
Change on the Development As it has been mentioned in the previous announcement that the duration of the contract execution will be (12) month period from July 2021, the “Company” would like to announce the End of December 2022 as a new date to conclude all works and handover the site to the “Company”

It is also expected to reduce the contract original cost of SAR 34,860,765 to SR31,800,986 i.e. a reduction of SR3,059,778 resulted from value engineering process and redesigning the electrical networks.

Financial Impact on the change No financial impact currently on the delay of work execution finalization.
Additional Information The delay in project completion does not affect the future planned development on the project site according to the Company business plan.

The delay in project conclusion is due to the contractor’s delay in starting the implementation work, in addition to the delay faced by the contractor in getting approvals on some materials from the competent regulatory authorities and other shortage in required manpower by the contractor.

As announcemed before the The Northern Suburb Project (Al-Alyaa) aims to complement the development of the northern area overlooking the 40 meters wide Safwan Street. The project area is 269,000 square meters divided into plots of different sizes meant to offer buildings with 6 stories specially designed to respond to the new urban trend in Madinah “Humanization of Cities", providing green areas and pedestrian paths in order to create an attractive quality lifestyle. The area of the landscaping and pathways is 72,000 square meters with the length of the green project's main path 1,100 meters long with width ranges between 16 to 82 meters. The land plots have been designed in a series of corridors and wide roads, with a park in the middle spanning approximately 60,000 square meters, separating the movement of cars and pedestrian; organizing the traffic in the places designated to encourage walking, as well as allowing full access for people of determination. Attention to relevant details in planning the development of the sidewalks, their lighting and landscaping has been taken care off.

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