The Red Sea Development Company awards contract for employee accommodation at Coastal Village


Saudi company awarded contract for the design and build of 40 employee apartment buildings

Riyadh: The Red Sea Development Company (TRSDC), the developer behind the world’s most ambitious regenerative tourism project, has awarded one of its largest value contracts to date for the engineering, procurement and construction of an additional 40 apartment buildings at The Red Sea Project’s Coastal Village community. 

After a competitive tendering process, the contract was awarded to Saudi firm AlKifah Contracting Company, showcasing TRSDC’s commitment to supporting local businesses and strengthening the Saudi economy. 

“People are at the heart of this project and the Coastal Village will become the central hub for employees to live, work and relax. Designed around the latest concepts in co-working and community living, it will become a vibrant neighbourhood for residents, plus their family members and visitors,” said John Pagano, CEO of TRSDC.

The 40 apartment buildings will consist of 40 blocks of single and double occupancy units, located at the destination’s Coastal Village, a new town which will eventually become home to the 14,000 employees set to operate the destination when it opens its doors by the end of 2022. 

AlKifah will use precast concrete panels, prepared at a new dedicated precast manufacturing facility being built in the project area. This will help localize jobs and greatly reduce the site’s carbon footprint by avoiding approximately 10 million kilometers of transportation, which will save 10,000 tons of CO2.   

“The beauty of this agreement,” added Pagano, “is that all 40 of the residential apartment buildings will utilise elements of off-site manufacturing and prefabrication techniques. These approaches enhance efficiency, quality and safety, while reducing the number of construction workers needed on-site to minimize our environmental footprint during construction.”

In addition to manufacturing off-site, TRSDC uses eco-friendly, sustainable ‘green’ concrete on-site in order to minimize emissions throughout the construction process.

“These apartment buildings will combine an eco-friendly design with a high-quality finish, supporting The Red Sea Project’s ambition to become a premier tourist destination, which will have a net-conservation benefit on the natural environment,” said Eng. Osama AlAfaleq, Chairman of  AlKifah Contracting Company.

“With the destination set to begin welcoming guests in less than two years, the efficient delivery of these units is key to guaranteeing that comfortable homes are available to the employees needed to operate the destination. Our approach to using off-site manufacturing will ensure we meet the tight timelines ahead of us.”

The 1.5 million m² Coastal Village area includes management offices, villas, townhouses and apartments, and a 144-room hotel. Envisaged as a vibrant community and set in a prime location on the waterfront, it will offer a range of amenities like hospitals and schools, and leisure facilities including fitness centers, beach clubs and dining outlets. 

Delivering quality homes and a community of this caliber, rich with activities and facilities, is central to TRSDC’s corporate social responsibility efforts. This development exceeds the typical standards of design, construction and ultimately the lifestyle provided to the employees of such a destination.

In a bid to further minimize our environmental footprint at the site, the Coastal Village housing will initially be utilized to house the workers building the destination. This eliminates the need to build extra accommodation for these workers which would later have to be demolished, adding another layer of efficiency to the plans.

Significant progress has already been made at the Coastal Village, all of which meets TRSDC’s stringent environmental standards. The first 10 residential buildings and the construction of a new corporate office building are nearing completion.

These first elements of the community are set to open by the end of the first quarter of 2021, and will be home to TRSDC staff overseeing the construction of the destination, closely followed by the management hotel which will welcome it’s first guests in the second quarter.

The Red Sea Project also recently celebrated the significant milestone of signing more than 500 contracts to date, worth over SAR 12 billion and with winning bidders spanning 24 countries. Over 70 percent of the total value of construction contracts have been awarded to Saudi firms, further highlighting TRSDC’s commitment to strengthening the local economy.

In November, TRSDC awarded its highest-value contract to date to a consortium led by ACWA Power to design, build, operate and transfer The Red Sea Project’s utilities infrastructure. The PPP agreement will deliver 100 percent renewable energy for the first phase of the project and includes the construction of the world’s largest battery storage farm.

Work is on track to welcome the first guests by end of 2022, when the international airport and first four hotels will open. The remaining 12 hotels in Phase One will open in 2023, delivering a total of 3,000 rooms across five islands and two inland resorts.

About The Red Sea Development Company:

The Red Sea Development Company is a closed joint-stock company wholly owned by the Public Investment Fund (PIF) of Saudi Arabia. TRSDC was established to drive the development of The Red Sea Project, a luxury regenerative tourism destination that will set new standards in regenerative development and position Saudi Arabia on the global tourism map.

The project will be developed over 28,000 km2 of pristine lands and waters along Saudi Arabia’s west coast and includes a vast archipelago of more than 90 islands. The destination also features mountain canyons, dormant volcanoes, and ancient cultural and heritage sites. The destination will include hotels, residential properties, leisure, commercial and entertainment amenities, as well as supporting infrastructure that emphasizes renewable energy and water conservation and re-use.

Activity for the first phase of development, which focuses on enabling the infrastructure to support future work, is well underway. A marine infrastructure contract awarded in July 2019 includes the construction of a 3.3 km crossing to Shurayrah (the main hub) and development has begun at the Coastal Village, which will be home to around 14,000 people who will work at the destination.