Riyadh – Mubasher: Two major South Korean building companies, including Daewoo Engineering & Construction Co., said Thursday that they will join a large-scale new town construction project in Saudi Arabia, according to Yonhap News Agency.
Daewoo E&C and Hanwha Engineering & Construction Corp. signed on Thursday a memorandum of understanding with the Saudi Arabian government in Seoul, under which they will join a consortium to build a new town on a 38-square-kilometer land site.
The town will be located 14 kilometers east of King Khalid International Airport in Riyadh. The consortium they will join is led by a local builder named SAPAC.
The tentative deal also calls for the Korean builders to construct 100,000 houses including apartments, town houses and villas there, along with other infrastructure, over the next decade.
The Riyadh government-led construction project is estimated at US$18 billion to $20 billion, which would be the largest overseas project that South Korean builders have ever joined.
Contract terms and other details will be determined when a final deal is signed in October, they explained.
