Aramco awards East-West Pipeline compounds contract to special-purpose vehicle

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  • Saudi Aramco has signed a deal for the construction of six residential compounds along the 1,200-km East-West pipeline

  • The contract has been awarded to private real-estate developer East West for Real Estate Development Company

Saudi Aramco, the biggest oil company in the world, has signed a deal for the construction of six residential compounds along the 1,200-km East-West pipeline, said local reports on Monday, June 28.

The contract has been awarded to private real-estate developer East West for Real Estate Development Company, said the reports.

The project is expected to be a public-private partnership, developed on a build, own, operate and transfer model, or BOOT model.

The East West for Real Estate Development is a special-purpose vehicle that has been set up by Saudi real-estate group Asyad, Lamar Holding, and Wisayah Investment Company, said the reports.

It is now in charge of building compounds that are expected to be comprehensive standalone towns, housing 1,700 employees.

The scope of work includes the development of residential buildings, life support and recreational facilities, and full utility services over a 770,000-sq-m area, said the reports.

Construction is scheduled to be completed by the second quarter of 2024, the reports went on to add.

As per the contract, the East West for Real Estate Development Company will be the builder, owner and operator of the six residential compounds, which it will finally transfer to Aramco after a 23-year tenure.

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