Koreans win deal to build $20bn city
01 May 2016
A consortium including Korean group Hanwha Engineering & Construction has won a $20-billion project to build 100,000 homes in Saudi Arabia, said a report.
The contract is the largest ever that a Korean builder has won from a foreign country, said the Korean Herald, citing company officials.
Hanwa joined the other consortium partners – Korea’s Daewoo Engineering & Construction and leading Saudi builder Saudi Pan Kingdom for Trading, Industry & Contracting (Sapac) – to sign the memorandum of understanding (MoU) with the Saudi Arabian Ministry of Housing for the new city development project.
“We will supply 100,000 houses and city infrastructure in Alfursan near the Riyadh International Airport and this will be a landmark deal for Korea’s overseas construction history in terms of the size,” a Hanwha E&C spokesman said.
The project, which will be funded by the Saudi government, is aimed at building a new town named Dahiyat Al-Fursan, 35 km north of the capital city of Riyadh, added the Korean paper Dong-A Ilbo.
A formal contract will be signed in the latter half of the year, and construction will begin towards the end of 2016, the report said.
The Saudi Ministry estimated last year that the kingdom’s lack of housing infrastructure would require three million new homes by 2025, based on the projected growth of the population.
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- Update
