Johnson Controls Arabia (JCA), has announced its awarding, being a part of the Consortium of JCA, City Cool & ADC, by one of the subsidiaries of Knowledge Economic City (KEC), a Saudi Arabian listed joint stock company, of a BOOT Project to build, own, operate and transfer a district chilled water cooling plant with Knowledge Economic City (KEC), a Saudi Arabian joint stock company, whereas, the Consortium will offer Cooling as a Service (CaaS) under this prestigious project, which involves to the city’s districts, addressing modern cooling challenges sustainably and efficiently.
Johnson Controls Arabia is a leading provider of smart and sustainable energy efficiency and building management solutions, City Cool is a specialized district cooling company, and ADC Energy Systems is a leading engineering, procurement, and construction (EPC) contractor.
The contract, which was signed on January 16, 2024, is based on a build, own, operate, and transfer (BOOT) model, meaning that no capital expenditure will be borne by KEC or its subsidiary, Makarem Almaarifa Hospitality Ltd., in the interim period. KEC will make monthly payments to the consortium to cover the cost of cooling, until the ownership of the plant is transferred to Makarem Almaarifa by the end of the contract period of 25 years from the operating date.
The plant, which will have a capacity of 21,000 tons of refrigeration over two phases, will be located at Al Madinah Hub area, Multaka Al Madinah, and will provide cooling services to the mall, the Hilton tower, and the branded residence tower. The plant will also align with the objectives of KEC, which aims to create a knowledge-based economy and a sustainable urban development in Madinah.
Ahmed Singer, General Counsel, Legal & Compliance of Johnson Controls Arabia, expressed his delight at the new partnership, saying: “I was honoured to be a part of the long-term constructive negotiations that took place till concluding such complex deal with Knowledge Economic City, City Cool, and ADC Energy Systems to build a state-of-the-art district cooling plant in Madinah. This project reflects JCA’s commitment to the Saudi market and our support for the country’s Vision 2030 plan, which aims to diversify the economy and enhance the quality of life. As the General Counsel of Johnson Controls Arabia, With more than 15 years of experience in Projects and Corporate fields, Ahmed is honoured to lead the legal and compliance team from Jeddah, KSA that manages the legal and compliance affairs of JCA’s Region in Saudi Arabia, Egypt, Lebanon, Bahrain, and Yemen and looking forward to contributing to the success of this project and other future endeavors.”