Knowledge Economic City signs contract with alliance of 3 companies to establish a district cooling station with chilled water in Medina

The Knowledge Economic City “the Company” announced on Wednesday 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.

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 Company explained that 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.

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).