Jeddah Tower Construction Delayed Due to Contractor Problems

Jeddah Tower Construction Delayed Due to Contractor Problems

Jeddah Economic Company, a real estate developers, attributed construction delays for the 1Km-high Jeddah Tower to funding issues with the contractor Saudi Binladin Group, reported The National.

The Jeddah Tower Project –formerly known as Kingdom Tower– originally expected to be completed in 2018, will be delivered 12 months behind schedule, said Hisham Jomah, Chief Development Officer of the Jeddah Economic Company, told the publication. 

“Basically, it was a financial problem […] until we secured a loan from the bank to make sure that the cash flow for the contractor is more stable for the time schedule,” Jomah was quoted saying by Arabian Business.

Riyadh’s Alinma Bank has agreed to fund the Jeddah Tower site with SAR 8.4 billion ($2.24 billion) so construction can be resumed, reported Construction Week Online.

Following the fatal Mecca crane crash last year, Saudi Binladin Group has been struggling financially with hundreds of staff haven’t received a few months wages and 55,000 people were let go.

The work in the Jeddah Tower never completely stopped, but came to a very slow pace for a period of time of three to four month, said Jomah to The National.

Jeddah Economic Company will attempt to ramp up the construction work where a floor of the tower can be completed every five days, where currently a floor is  completed between six and eight days.

The Jeddah Tower construction team has completed the podium structure and the reached the 40th vertical floor. The tower will have 252 floors and will be a solid concrete building upon its completion.

Jeddah Tower is set to be the world’s tallest building. It will contain enough steel to build eight Eiffel Towers and enough concrete for six Hoover Dams.

Binladin Group is a shareholder in Jeddah Economic Company, with a 16.66 % share in the company.

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