Saudi inks road contracts worth US$507m

Oil-rich Saudi Arabia signed two contracts worth SAR1.9bn (US$507m) to construct new roads, bridges and tunnels in Makkah, it has been reported. Prince Khaled Al-Faisal, governor of Makkah Province, signed the contracts with Saudi Binladen Group, which has been given 36 months to complete the projects, reported Saudi Gazette. The first contract concentrates on the remaining parts of the city\'s second ring road, while the second contract focuses on the third phase of the third ring road in the holy city. For the second ring road project, new bridges will be extended and erected in different districts within the city. According to the newspaper, the total cost of the project is SAR460m and the compensation for homeowners of 1038 properties that will be demolished will amount to SAR8bn. For the third ring project, bridges and tunnels will also be constructed in various areas, totaling up to a cost of SAR1.5bn, while the compensation for 830 demolished properties is set at SAR3.2bn. Prince Khalid confirmed that all projects in the 10-year plan for developing the region, which was announced four years ago, are still on track. By / Arabian Business