The construction work on a major shipyard on Saudi Arabia's eastern coast is under way with dredging and associated activities in progress, a partner in the venture has said.
In an update, the joint venture (JV) partner Lamprell said all conditions needed for the JV company, International Maritime Industries Company (IMI), to formally commence business have been completed.
An important condition was the entry by IMI into the loan agreement with the government lender, the Saudi Industrial Development Fund, it said.
The SIDF agreed in principle last year to provide SR3.75 billion ($1 billion) in financing for the project, said a Zawya report.
IMI is a partnership between the UAE-based Lamprell, oil giant Saudi Aramco, National Shipping Company of Saudi Arabia (Bahri) and South Korea's Hyundai Heavy Industries Company.
The 4.3-sq-km shipyard will be located at Ras Al Khair and is expected to cost $5.3 billion. - TradeArabia News Service