DSI secures its second major KSA contract worth AED 460 million

Over AED 2 billion worth of projects won to date in 2010

[Dubai, 7 July, 2010]  Drake & Scull International PJSC (DSI), a regional leader delivering integrated engineering capabilities, has been awarded an AED 460 million contract for the complete Mechanical, Electrical and Plumbing (MEP) works for the iconic Information Technology and Communications Centre (ITCC) project in Riyadh.

DSI will be undertaking this project in a joint-venture with Al Zamil Group, one of the largest conglomerates in the Kingdom of Saudi Arabia.

The contract was awarded by Rayadah Investment Company, the investment arm of the Saudi government’s Public Pensions Agency (PPA).

“The dynamics of the Saudi market are different from the other GCC markets in which we have been operating; we had to ensure that we adapted our practices to meet the strict requirements of the Kingdom’s construction industry, which can be very challenging,” said Khaldoun Tabari, DSI CEO, “Following the recent win of DAMAC Jawharah Tower for SR 450 million and now the ITCC project, we can proceed in the knowledge that our efforts in the Kingdom are starting to pay off and we are on the right track for further development within KSA.”

ITCC is the Kingdom’s first “Smart City” which when completed will offer widespread broadband services, the latest in voice and video communication platforms and high-level data security and will operate on a huge optic-fibre cable network designed to give the fastest speeds and accommodate next generation technologies for years to come.

The AED 6 billion overall project will span over an area of 776,000m² and will include four 20-storey towers, two business technology incubator buildings, a sports club, a clinic, a hotel, a convention centre, a technical college and government service buildings.

MEP work on the project has already begun and will be completed in 24 months. This will include the supply, installation, testing and commissioning of: air conditioning, ventilation, plumbing and drainage, automatic fire fighting, transformers, cabling, small power & lighting systems, busbar risers, earthing & lightning protection, digital interactive TV system, CCTV and access control system.

Along with the main contractors that are working on the project, DSI will work to achieve the basic Leadership in Energy and Environmental Design (LEED) certification through the use of grey water recycling, low energy lighting, low energy air conditioning and, most importantly, reduction in solar gain.

“Winning the contract for the ITCC project has been a positive step for us on a number of levels,” Tabari continued, “First, it validates our position as one of the top MEP players in the construction industry in the Middle East; secondly, it facilitates our regional growth plans and third, it contributes to our growing backlog which will have a positive effect on our future revenue.”

Also in line with the company’s growth strategy, DSI recently established Drake & Scull Construction KSA to manage and overlook all of its civil contracting activities in the Kingdom.  Earlier this week it was announced that DSC KSA was awarded its first project in Saudi Arabia, the SR 450 million Jawharah Tower in Jeddah. With a sound track record in the field of MEP contracting already underway, the formation of DSC KSA will allow DSI to demonstrate the integrated capacities of its business streams and form a stronger presence in the market.

“We have already shown that DSI has both the capabilities and the resources to undertake projects of such a high caliber, which is reflected through our current position in the market,” concluded Tabari, “This latest contract win not only strengthens our portfolio and financial standing, but opens up future opportunities for the company as a whole to contribute to the development of major projects across the country, as planned by the government of Saudi Arabia”.

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About Drake & Scull International PJSC

Drake & Scull International PJSC (DSI) is a regional market leader delivering world class quality projects in the Middle East and North Africa through integrated design, engineering and construction disciplines of Mechanical, Electrical and Plumbing (MEP), Civil Contracting, and Water, Power and Infrastructure, through Innovation, People and Passion.  DSI established its first office in the region in Abu Dhabi in 1966, and it has since expanded its operations to include offices in Dubai, Jordan, Libya, Thailand and Oman with projects in Bahrain, UAE, Saudi Arabia, Sudan, Thailand and Oman.

In 2009, DSI PJSC expanded its operations by acquiring two companies, in line with the company’s growth strategy: ‘Passavant-Roediger’, a German global developer of wastewater, water and sludge treatment technologies with a presence in 13 countries across Europe, MENA and Asia with over 5,000 installations, and Kuwait-based ‘Drake & Scull International for Electrical Contracting’ (DSK), a prominent player in Mechanical, Electrical & Plumbing contracting in Kuwait.

In 2010, the DSI PJSC expansion efforts continued with the establishment of two new business subsidiaries: ‘Drake & Scull Water and Power L.L.C’ (DSWP), which was established to manage and control all existing and new Water Power and Infrastructure projects across the MENA region, and ‘Drake & Scull Construction L.L.C’ (DSC), which was established to manage and control the regional civil contracting expansion in addition to the existing operations in Dubai and Abu Dhabi.  In April 2010, DSI PJSC announced the acquisition of “Drake & Scull International Qatar L.L.C” (DSQ) a reputable MEP company based in Qatar, which further fuelled the company’s horizontal expansion plans allowing it to diversify into new markets and increase its market share in the region.