Saudi Arabia's Knowledge
Economic City Company (KEC) has signed a partnership agreement with Saudi
Telecom Company (STC) to develop telecommuications infrastructure in the
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
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 realised from subscribers within the KEC
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