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The Knowledge Economic City Announces the Signing of a Contract with a Consortium of Three Companies – “City Cool”, Johnson Controls Arabia and “ADC Energy Systems” to Build a Central Cooling Plant for the Knowledge Economic City
4310
KEC
1.17
%
1445/07/05 17/01/2024 08:01:13
| Element List | Explanation |
|---|---|
| Introduction | The Knowledge Economic City “the Company” announces the signing of a contract through its subsidiary “Makarem Almaarifa Hospitality Ltd” with a consortium of three companies – “City Cool”, Johnson Controls Arabia (JCA), and “ADC Energy Systems” to build a chilled water District Cooling plant for (the Company) in Al-Madinah Al-Munawwrah. |
| Date of Announcement of the Award | 2024-01-16 Corresponding to 1445-07-04 |
| Contract Subject Matter | The contract will lead to the building of a plant of 21,000 tons of refrigeration over two phases at the Madinah Hub area, “Multaka Almadinah,” to provide cooling services to the mall, the Hilton tower, and the branded residence tower. The consortium of the three companies will provide their services based on a Build, Own, Operate, and Transfer (BOOT) arrangement, where Johnson Controls Arabia will supply YORK Chillers, ADC Energy Systems will perform the engineering, the procurement, and the construction of the District Cooling Plant. Additionally, City Cool will perform the operation, maintenance, and facility management for 25 years from the operating date with the aim of sustainability and energy efficiency as part of the alignment with the objectives of the Knowledge Economic City. |
| The Entity with Which the Contract was Signed | a Consortium of Three Companies – “City Cool”, Johnson Controls Arabia and “ADC Energy Systems” |
| Date of Signing the Contract | 2024-01-16 Corresponding to 1445-07-04 |
| Contract Value | A Build, Own, Operate, and Transfer (BOOT) contract, hence no capital expenditure to be borne by the Company or its subsidiary in the interim period. However, the company will make monthly payments to the consortium to cover the cost of cooling, provided that the ownership of the plant will be transferred to the Company’s subsidiary “Makarem Al-Maarifa Hospitality Ltd,” by the end of the contract period of 25 years from the operating date. |
| Contract Details | A Build, Own, Operate, and Transfer (BOOT) contract for 25 years starting from the operating date of the cooling plant. |
| Contract Duration | 25 years from the operating date of the cooling plant. |
| Financial Impact and the Relevant Period | -No financial impact on the Company’s financial statements currently. -The cooling plant’s ownership will be transferred to the Company’s subsidiary after 25 years from the operating date. |
| Related Parties | Mr. Saleh Mohammad Binladen sits on the Board of Directors of the Knowledge Economic City Company and the Board of Directors of one of the three consortium companies; “Johnson Controls Arabia.” Accordingly, this contract is being dealt with per the related regulations (Indirect Interest). |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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