Nesma Infrastructure & Technology Projects

Nesma Infrastructure & Technology (NIT) has three projects to announce. Two of the projects provide crucial electric infrastructure to facilitate the Kingdom’s 2030 development goals. The third is a critical security contract for NEOM.

Farasan Island Electric

NIT’s proven track record with infrastructure has garnered the company another contract with the Saudi Electricity Company. This SAR 300 million contract is to build a state-of-the-art 132 kV power transfer station on Farasan Island, providing a transformative advancement for the island’s power capabilities to enable future growth and grid stability. Farasan Island is located in the Red Sea off the southern coast of Saudi Arabia.

Aseer 2nd Industrial City

NIT was represented by Chairman Fouad Alsherebi at the launch of the Aseer province’s 2nd Industrial City. The event was organized by Modon under the patronage of HRH Prince Turki bin Talal Al Saud, Governor of Aseer, and was attended by HE Minister of Industry & Mineral Resources Bandar Alkhorayef. At the event, Chairman Alsherebi signed an infrastructure contract with Modon, the Saudi Authority for Industrial Cities & Technology Zones. NIT’s 30-month contract, worth SAR 125 million, is to construct a substation that will be located in Abha and support the 2nd Industrial City.

NEOM Security

NIT has a contract with NEOM to operate and maintain all of the area security systems. The company will also supply spare parts as needed. Valued at around SAR 50 million, this three-year, renewable contract was signed in August 2023. The contract will create numerous Saudi jobs for engineers, contract managers, project managers and others to maintain the security systems including radar, digital networks, CCTV, firewalls and more.

Nesma United Industries Completes Sindalah Golf Course Contract

In October 2023, Nesma United Industries (NUI) completed a SAR 18 million, 13-month contract for the operation and maintenance of the award-winning, 18-hole Sindalah Island Golf Course, a course which the company constructed itself in 2021-2022. The scope of work for this project was executed by NUI’s Landscaping Division and entailed the provision of water for the golf course, in addition to maintenance of the irrigation and drainage system, fairways, pathways and landscaping. In order to provide irrigation water, the company had to haul it from the mainland to supply the irrigation tanks.

Spacemaker Wins Red Sea Projects

Spacemaker, a subsidiary of Nesma United Industries, has won contracts to install bathroom pods at luxury villas located on Shura Island, part of the Red Sea development project. The Shura Island Program 4 Golf Estate will be fashioned with an 18-hole golf course, practice facilities and clubhouse. Integrated into the design are 75 villas with luxury amenities. Spacemaker will supply high-end bathroom units for each villa, a total of 400 pods, with marble and other high-quality finishes along with the associated  mechanical, electrical and plumbing (MEP) work. The SAR 61.8M project is due in April 2024. Spacemaker will install similar bathroom pods for Hotel Central 3 (The Reef), an exclusive hotel and spa on Shura Island with 150 guest accommodations ranging from rooms, to suites, to villas each with a view over the swimming lagoon or the beach. This SAR 49.4M contract due in June 2024, calls for an additional 204 Spacemaker bathroom pods with high-end finishes along with the MEP work.

Nesma Infrastructure &Technology Wins NEOM Project

Nesma Infrastructure & Technology signed a contract with NEOM valued at around SAR 50 million to install Sindalah’s public safety systems. The scope of work covers the design, supply, installation, operation and maintenance of comprehensive security systems, including CCTV cameras, radar and more. Delivery of the project is anticipated for June 2024. Billed on its website as “a place where enhanced nature meets responsible design, advanced technology and inspirational architecture,” Sindalah is set to be a luxury island resort destination with golfing, wellness spas, yachting and exclusive retail.

Nesma Water & Energy Delivers Al Zaidi Project

The Nesma Water and Energy Al Zaidi Water Network project was completed and closed in October, 2023. The scope of work was to deliver two 50,000 m3 carbon steel tanks, excavate and backfill 190,000 m3, complete 59,000 meters of pipe work, apply asphalt on a guard house building, relocate existing services and more. Upon delivery of the project, National Water Company praised its high quality.   

Nesma Co. and CJ Logistics Sign MOU, Eyeing Middle Eastern Expansion

Nesma Co. and CJ Logistics have announced the signing of a memorandum of understanding (MOU). Signed at CJ Logistic’s headquarters in Seoul's Jongno district, the agreement will see both companies actively exploring joint business opportunities and prioritizing each other in the pursuit of new ventures in Saudi Arabia.

CJ Logistics is currently establishing a Global Distribution Center in the Middle East, expected to be operational next year, to manage international shipments for the online retailer iHerb. Kang Byung-koo, the head of CJ Logistics’ Global Business Division, expressed optimism about the partnership, saying that through cooperation with Nesma Co., they aim to expand their influence in the Middle Eastern logistics market.

Nesma Renewables Consortium Wins Al Henakiyah Project

The PPA is for the Al Henakiyah project and will buy electricity at the competitive price of 0.0168420 USD p/kwh (6.31575 halalas). At a capacity of 1100 MW, this solar PV plant can power over 190,000 residential units annually.
The project is part of the National Renewable Energy program, an important component of Vision 2030 aiming to have renewable energy make up 50% of the country’s power mix, support a sustainable economy and reduce carbon dioxide emissions.

NIT Wins Multiple SEC Projects

On November 2nd, 2023, Nesma Infrastructure and Technology (NIT) signed a major strategic package with the Saudi Electricity Company (SEC) valued at over SAR 1.3 billion to construct and deliver 16 high-voltage transmission substations to support the ongoing rapid development in the eastern region of the Kingdom.

The scope of work for these fast-track contracts includes the engineering, procurement, construction, testing & commissioning and energization of the transmission substations along with their connection to the Saudi Arabian national grid, with an approximate delivery of 16 months.The substations will be built on a lump sum turnkey basis under the Network Reinforcement Program for Big Cities to benefit existing cities in the eastern region and facilitate their future growth.

NIT & RMS Consulting

Nesma Infrastructure & Technology Secures Strategic Contracts

Nesma Infrastructure & Technology (NIT) has won two additional contracts with the Saudi Electricity Company valued at over SAR 210 million to support the expansion of Makkah’s housing projects and to establish a link in the north of the Al Madinah Al-Munawwarah Province.

The scope of work on this lump sum turnkey project includes the engineering, procurement, construction, testing and commissioning of the transmission substation along with its connection to the national electrical grid through an underground cable. The project is to be delivered in approximately 16 months.

Nesma Security to Protect New Aseer Project

The latest contract for Nesma Security is to provide security at the AlWadi project in the Abha Valley, one of Saudi Arabia’s newest giga-projects. The two-year contract will employ 70 Saudi security guards. AlWadi, the flagship project born from the Kingdom’s Aseer Development strategy in the “Arabian Highlands,” is expected to contribute over SAR 19 billion to the economy and create thousands of Saudi jobs. Informed by the local architectural style and cultural heritage, the development aligns with Saudi Arabia’s National Tourism Strategy and will feature luxury hotels, modern housing options, waterfront parks and entertainment all with a focus on sustainability.

Modern Bus Launches Makkah Services

The Makkah Bus project, being fulfilled by Modern Bus, has conducted a successful trial period which began in 2022 and concluded this month. During the trial period, 100 million riders benefited from the new, modern bus service which runs throughout Makkah with over 400 buses, along 12 routes and 438 bus stops. Beginning November 1st, 2023, under the slogan, “Together on the Path,” Modern Bus is launching its regular service in Makkah with affordable tickets costing four riyals at the regular price and special priced tickets available for various customer groups. Tickets can be purchased through the app, on the website, or from ticket vending machines available throughout the city.

Namma Cargo Announces Project Groundbreaking

Namma Cargo announced the groundbreaking of the SAR 200M iHerb Distribution Center project which it won in partnership with CJ Logistics. Construction is expected to be completed by March 2024, with a soft opening planned for May 2024. Located near King Khaled Internat’l Airport in Riyadh, the project consists of a 29,880 m2 lot to support 15,682 m2 of construction consisting of a main building, utility building and guard house. The team at Namma Cargo have expressed their appreciation for CJ Logistics along with their subsidiary CJ ICM and gratitude for support from the Matarat team and project lead GACA. The project is an important link in the Kingdom’s goal to be a leader in advanced supply chain logistics.

New SEC Contracts for Nesma Infrastructure & Technology

Nesma Infrastructure & Technology (NIT) has won additional projects with the Saudi Electricity Co. to design, build and commission two transmission substations along with the corresponding overhead transmission lines and connection to the grid. The projects, worth around SAR 800M, have a 20-month delivery schedule. The projects are located in a mountainous region of NEOM called Trojena which is anticipated to be a world-class destination offering the Gulf’s only outdoor skiing venue in addition to year-round adventure sports, activities, shopping, dining and entertainment. Trojena’s altitude ranges between 1500 and 2600 meters offering a cooler climate year round. Trojena is part of the Kingdom’s push to create distinctive tourist destinations and international scientific hubs.

Nesma Renewable Energy Consortium Successfully Bids Mega Solar Project

Nesma Renewable Energy has achieved a new milestone by successfully bidding, as part of a consortium with EDF Renewables and Abu Dhabi Future Energy Co. (Masdar), in the fourth round of the Ministry of Energy’s renewable energy procurement program. The Nesma-EDF Renewables-Masdar consortium has been announced as the first-place bidder for the 1.1 GW Al Henakiyah solar PV project. The request for proposals came from the Saudi Power Procurement Co. (SPPC) which is the principal buyer for all power generated from independent power producers (IPPs) in the Kingdom of Saudi Arabia.

This photovoltaic project will be constructed in Al Henakiyah, in the Al Madinah Province and has a project value exceeding SAR three billion. The consortium is now entering the financial close phase, following which the two-year construction phase will commence. The solar plant will be operated by the consortium under a 25-year power purchase agreement with SPPC. This project is part of the key Vision 2030 goal to have 50% of the Kingdom’s energy demand met by renewable energy.

Play Cinema Sets the Stage

Play Cinema is setting the stage to open multiple cinemas throughout the Kingdom. Most recently, the company has signed a memorandum of understanding with Kinan International Real Estate Development Co. to operate 12 cinema auditoriums in Al Dana Mall, Yanbu and Al Alia Mall, Madinah under a 20-year contract. The cinemas will cover a total of 6,000 square meters. An additional six venues have already been secured in various locations, each with five or six auditoriums in a cinema of approximately 2500 square meters. The first Play Cinema, which will have five screens, is expected to open in early 2024 at Amwaj Mall in Al Khobar.

NIT Awarded Multiple Substation Contracts

On July 20, 2023, Nesma Infrastructure & Technology (NIT) signed with the Saudi Electricity Company (SEC) several strategic contracts, valued at over SAR one billion, to support various Vision 2030 development projects across the Kingdom including the Diriyah Development, Riyadh Development and the Holy Mosque in Madinah.

The scope of work of the contracts covers the engineering, procurement, construction, testing, commissioning and energization of a high-voltage transmission substation including underground cable works along with the connection to the Saudi national grid.

These lump sum turnkey contracts have an approximate delivery schedule of 16 - 18 months.

ln line with Vision 2030, these contracts aim to increase the SEC’s grid network capacity across the Kingdom in order to enhance the public’s
quality of life.