Saudi Arabia’s Knowledge Economic City Company (KEC) has signed a partnership agreement with Saudi Telecom Company (STC) to develop telecommuications infrastructure in the Madinah city.STC will link around 40km of land to fiber optic communication services and information technology.
KEC said in a bourse statement that the agreement has not impacted on the financial position of the city.The deal runs on a BOT basis (Build/Operate/Transfer of Ownership) so that STC develops a smart infrastructure network, operates it, and then transfers its ownership by the end of the concession period to KEC.
KEC will be responsible for the implementation of the civil works which will be formulated by a contractor in accordance with the criteria established by STC and under its management and supervision.
The contract lasts for 15 years from the date of signature and the ownership of the project will be transferred thereafter to KEC without charges, while KEC will be receiving a proportion of the income realized from subscribers within the KEC project.
The $7bn KEC was launched by King Abdullah bin AbdulAziz in June 2006 and is the third of six economic cities announced by Amr Dabbagh, Governor of the Saudi Arabian General Investment Authority.
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