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Makarem Almaarifa has awarded a contract to a consortium of three companies to build a central cooling plant for its parent company the Knowledge Economic City (KEC) in Madinah, according to a Tadawul regulatory filing yesterday. The contract runs for a period of 25 years from the start of operations.
The details: This is a build, operate, transfer (BOOT) contract where the consortium will transfer the ownership of the subject cooling facility to KEC’s subsidiary at the end of the agreement. The plant will potentially provide 21k tons of refrigeration, to offer cooling services to the mall, the Hilton tower, along with the residence tower at the Madinah hub area.
Who is doing what: The consortium comprises district cooling and utility services provider City Cool, integrated solutions provider Johnson Controls Arabia (JCA), and EPC solutions provider ADC Energy Systems. City Cool will be responsible for operations, maintenance, and facility management, while Johnson Controls will supply York chillers. ADC Energy is the engineering, procurement, and construction contractor for the cooling facility.
KEC will make monthly payments to the consortium to cover the cost of coolingthroughout the duration of the contract and will not bear any capital expenditure. The value of the monthly payments wasn’t disclosed.
