Tabreed's affiliate to develop Dhs549m district cooling project in Saudi Arabia

The approved investment relates to the development and construction of the first two phases of the district cooling plant.

Saudi Tabreed, which is 25% owned by Tabreed, is partnering with the Saudi-based Jabal Omar Development Company ("JODC") to develop the 55,000 RT project. The 20 year Build-Own-Operate-Transfer agreement will be completed by a special purpose vehicle named Central District Cooling Company ("CDCC"). CDCC is 60% owned by Saudi Tabreed and 40% owned by JODC.

Waleed Al Mokarrab Al Muhairi, Chairman of Tabreed, said, "We are delighted to be investing alongside our partners at Saudi Tabreed in such a landmark development in the Kingdom of Saudi Arabia."

"This project marks a major step forward for Tabreed in Saudi Arabia as it underscores the significance we attribute to this market given the growth opportunities present here as a result of the nation's commitment to utilizing energy efficient solutions to meet its increasing cooling demands," he added.

The first two phases of the district cooling project in the Jabal Omar development are expected to be completed in approximately 18 months, and currently have a contracted capacity of 35,900 RT.

Jasim Thabet, Chief Executive Officer of Tabreed, added, "The Jabal Omar project is one of the key infrastructure projects in Saudi Arabia and is intended to cater to Mecca's expanding population."

"As cities in the GCC continue to grow, district cooling's energy and cost efficiencies have proven to be the ideal solution for densely populated areas that have a high demand for year-round air conditioning," he added.

In addition to the Jabal Omar development, Saudi Tabreed is also currently involved in two other major projects in Saudi Arabia. The company is in the final stages of completing the construction of a district cooling plant for ARAMCO that has a design capacity of 32,000 RT on a Build-Own-Operate-Transfer contract for 23 years, and is also now completing the second phase of a district cooling plant in the King Abdullah Financial District (KAFD). Upon completion in 2013, the KAFD plants will have a total capacity of 100,000 RT.