Saudi’s Red Sea and Amaala projects poised to award $2.7bln worth of contracts

Saudi’s Red Sea and Amaala projects poised to award $2.7bln worth of contracts

Last week, Zawya Projects reported that Saudi Arabia’s Public Investment Fund (PIF) has combined the two giga projects, with The Red Sea Development Company (TRSDC) taking over Amaala under a single new entity, which will be soon known as Red Sea Global.

Both projects are part of the Saudi Vision 2030.

From a financing standpoint, the PIF has committed about $15 to $16 billion to The Red Sea Project. In January 2022, TRSDC announced the financial closure of a 14.12 billion riyals ($3.76 billion) loan with four Saudi banks. The financing will be in the form of a term loan facility and a revolving credit facility.

“So, from a financing point of view, we got all the equity that we needed from PIF and we got the cash,” said Pagano, adding that talks about IPO is three to four years away.

“Right now, we need to open and stabilise the first phase to consider an IPO. So, the earliest date would be around 2025 or 2026 but that may not be the only option as there are many different routes that we could consider,” he said.

Meanwhile, the focus is on ensuring tenders and awards stay on track to make sure the project meets construction