By Andy Sambidge
Drake & Scull International wins $69m contract to work on facilities in King Fahad Medical City
Dubai-based Drake & Scull International (DSI) said on Monday it has been awarded a SR261m ($69.5m) contract to work on a pioneering healthcare project in Saudi Arabia.
The contractor said in a statement to the Dubai bourse that it will provide turnkey mechanical, electrical and plumbing solutions for the National Institute of Neurosciences, and the Cancer and Cardiac Centres in King Fahad Medical City, Riyadh.
DSI said it has signed a joint venture agreement with Habtoor Leighton Specon to undertake the works for a total value of SR522m of which its share will be 50 percent.
The new development is considered to be the first hospital in the Gulf region to include a Proton Therapy Centre.
Spanning a total built-up area of 234,000 sq m, the project includes the National Institute of Neurosciences, cancer centre, cardiac centre, laboratories and office building, radiology centre, cardiology centre, and underground car parks.
The facilities are part of the SR2.3bn King Fahad Medical City, which will have a total capacity of 1,095 beds.
Khaldoun Tabari, CEO of DSI, said: “The healthcare sector is very important to DSI and we are proud of our historic work in hospital projects around the world.
"The project award is a major milestone in our extensive healthcare experience in the kingdom. DSI will continue to proactively invest in specialised expertise and cutting-edge technologies to continue to support the development initiatives in KSA and across the region.”
The new medical facility is part of DSI’s growing portfolio of high-profile healthcare projects in Saudi Arabia, which also includes a new healthcare facility in the eastern province of Damman as well as the Tabarjal Hospital, Mina Hospital and Health College, he said.
Last month, Drake & Scull International posted a 47 percent increase in net profit for the first quarter of 2013 compared to the same period last year.
The company reported net profit of AED63m on revenues of AED1.227bn which were 58 percent higher than Q1 2012, saying the company had streamlined its operations to cut costs.
In comparison to Q4 2012, revenues were sustained at the same level whereas the net profit grew by 93 percent, DSI said in a statement.