Photo: Makkah Bus stop at Jabal Omar / Wikimedia Commons
Makkah is handing one of its biggest transport jobs to private companies. They will build and run the stations, car parks and bus corridors that take visitors to and from the Grand Mosque.
The General Transport Center, the executive arm of the Royal Commission for Makkah City and Holy Sites, signed agreements worth 5.66 billion Riyal ($1.5 billion) on Sunday for the Wasel Al-Haram project. The deals were signed at the opening of the sixth Hajj Conference and Exhibition in Jeddah, the Saudi Press Agency reported.
It comes as Saudi Arabia pushes private money into public infrastructure to ease the load on the state budget.
Three packages
A consortium of Saudi Alqaid, Spanish bus operator Moventis and Indonesian state contractor Waskita won the first and third packages. A consortium led by parking operator Mawgif won the second.
What gets built
Wasel Al-Haram covers 19 stations and car parks along seven corridors, spread over 3.1 million sq m, and a fleet of 3,200 buses. The system is designed to carry 205 million passengers a year.
Who pays
All three packages are public-private partnerships financed entirely by the private partners, over an investment period of seven to 10 years.
The project is expected to add 11 billion to 12 billion Riyal to the economy and create up to 3,000 jobs.
Why it matters
The deal sets off a long chain of work. Stations, parking structures, depots and fuelling or charging points all need building, and thousands of buses need buying and maintaining.
Contractors and suppliers will be dealing with the three consortia rather than the government.
More at the same event
The Ministry of Hajj and Umrah also signed a memorandum with Saudia to set up and run a pilgrim travel station in Makkah, one of eight agreements signed at the opening.
