Saudi Tabreed Consolidates its Leadership Position through 10-Year Contract Extension with KAFD

Saudi Tabreed, an industry frontrunner providing district cooling services has solidified its standing through the successful negotiation of a ten-year contract extension for the operation and maintenance of two district cooling plants in the prestigious King Abdullah Financial District (KAFD). The plants, collectively boasting a total capacity of 100,000 TR (tonnes of refrigeration), will be responsible for serving the entire KAFD facilities, spanning an impressive 3.2 million square meters.

Saudi Tabreed Consolidates its Leadership Position through 10-Year Contract Extension with KAFD
20   Mar  2024

With a rich portfolio of successful collaborations with major strategic entities across the Kingdom, Saudi Tabreed has been instrumental in the development of critical infrastructure, including the Aramco Dhahran district cooling plant, the Jabal Omar district cooling plant in the city of Makkah, and the district cooling plant serving the Red Sea Global project and King Salman Park in Riyadh. Such key projects attest to the company’s pivotal role in advancing the nation's aspirations.

Through the recent contract extension, Saudi Tabreed reaffirms its commitment to delivering reliable and sustainable cooling solutions to KAFD, supporting its mission to become a world-class financial hub and lifestyle destination that contributes to the growth and diversification of the local economy while providing a vibrant experience in the heart of Riyadh.

The signing ceremony, attended by the senior leadership of both Saudi Tabreed and King Abdullah Financial District, marks a significant milestone in the collaboration between the two entities. Under the terms of the newly extended, decade-long contract, a wide spectrum of cutting-edge solutions is delineated, concerning the optimal design, construction, operation, and maintenance of the district cooling plants. The extension further highlights KAFD's trust in Saudi Tabreed's excellent record of delivering reliable and innovative district cooling services that consistently meet its customers' expectations.

Commenting on the continued partnership, Suliman Al Khliwi, Managing Director of Saudi Tabreed, expressed his enthusiasm, stating, "We look forward to our continued collaboration with the King Abdullah Financial District. With state-of-the-art district cooling plants under our portfolio, our high-quality O&M services ensure that the KAFD plants are well-kept and capable of meeting the specific cooling demands of the district, minimizing downtime and disruptions. The contract renewal reiterates our position as a reliable provider of innovative district cooling solutions to large-scale projects in the Kingdom. The extended collaboration accelerates our progress towards expanding our portfolio growth to reach a capacity of 1 million TR per day. It also enhances our support of global sustainability efforts, including the United Nations’ Sustainable Development Goals."

By ensuring uninterrupted district cooling services to KAFD's large-scale developments, the renewed collaboration aims to further enhance energy efficiency, reduce environmental impact, and optimize comfort for the district’s occupants across all of the sectors, including residential, retail, entertainment, and hospitality. These outcomes are consistent with the objectives of both Saudi Tabreed and KAFD’s goals to offer premium infrastructure and sustainable smart city solutions.

Gautam Sashittal, the CEO of KAFD DMC, emphasized the significance of the partnership, stating, “Riyadh stands among the world's hottest cities, with temperatures often surpassing 50 degrees Celsius in summer. ACs generate about 4% of global greenhouse gas emissions, twice as much as the entire aviation industry, which will ironically account for as much as a 0.5 degree Celsius rise in global temperatures by the end of the century. As a cornerstone initiative of Saudi Vision 2030, KAFD was built to embody the core values of enhancing quality of life and fostering sustainable development. Today, KAFD is the largest LEED-certified mixed-use business district in the world, with over 40 LEED-certifying buildings. This partnership with Saudi Tabreed extends our commitment to these core values and our pursuit of an eco-conscious district. We are confident that the district cooling facilities with Saudi Tabreed’ s world class operation and maintenance will create a more comfortable and eco-friendly experience for all who live and work in KAFD.”

The contract extension not only reinforces Saudi Tabreed's preeminent position as a key provider of district cooling services in Saudi Arabia, but also underscores its significant contributions to national and regional environmental goals. Its continued dedication to delivering innovative, efficient, and sustainable cooling solutions directly supports the Saudi Vision 2030 and the country’s pledge to reach net-zero greenhouse gas (GHG) emissions by 2060.