Arriyadh Development Authority (ADA), the executive arm of The High Commission for the Development of Arriyadh, today launched the Naming Rights Program of its Riyadh Public Transit Network, currently under construction.
The program was launched at a press conference in the Diplomatic Quarter of Riyadh.
Out of the 85 stations of the Riyadh Metro system, 15 will be eligible for well-known national and international companies to bid for, out of which only 10 will be awarded naming rights by ADA, a statement said.
This is the first of a series of commercial initiatives launched by Riyadh Metro for the business community. Others to follow soon will include retail space and advertising concessions, as well as opportunities for telecom providers.
“The new Riyadh Public Transit Network is one of the strategic vehicles for the urban and economic development of the city of Riyadh. It is also one of the key enablers to make our capital one of three Saudi cities recognised in the top-ranked 100 cities in the world, as per Vision 2030,” stated Eng Alwalid Alekrish, ADA’s Vice President for Programs and Projects, in his opening remarks.
“The income from the Naming Rights Program and other commercial initiatives will be reinvested in the Riyadh Public Transit Network and will contribute to keep its operational cost down. This is a good example of how commercial initiatives could benefit Saudi society,” he added.
Companies bidding will get a package which includes not only naming rights, but also other benefits such as retail space and advertising locations in the station. Key landmark stations, like Qasr Al Hokm, are out of the scope of the program, to prevent over-commercialisation of the network. Moreover, only companies compatible with Saudi values and culture will be selected by ADA, the statement said.
“The Naming Rights partners will provide vibrant community hubs through their presence. They will be encouraged to provide an enhanced environment for brand experience that would benefit users of the network. Banks and telecom companies are examples of possible partners which will contribute to improve Riyadh residents’ lifestyle,” emphasized Architect Khalid Al-Hazani, Director of Architectural Projects Program and Public Affairs at ADA.
“Naming rights offer branding, marketing and sales opportunities on a scale never seen before in a public transport environment, due to the unique integration of a brand into the station’s signage and touch points. The Riyadh Metro Naming Rights Program will enhance Riyadh´s image as a vibrant, modern and cosmopolitan destination,” he concluded.
High returns on the project
Eng Khalid Al-Hazani said that the tender offers a rare opportunity for major private sector entities to get services, benefits and facilities that will make their brands and products available to all the targeted segments of the project, whether through billboards, advertising, maps, publications is-sued by the project, retail outlets, or the project website and its accounts on social media.
Mechanism of participating in the tender
Eng. Hassan bin Abdulaziz Al Musa, Deputy Director of Transport Planning Department at the Au-thority, gave a brief explanation on the mechanism of participation in the tender for the sale of naming rights of for the stations of Riyadh Metro, in which he pointed out that it will begin today (October 15), through registration on the project website (www.RiyadhMetro.sa
), and obtaining the criteria and rules of bidding. The ADA will then study the information and data of the bidding companies, to classify and qualify them according to the criteria, conditions and controls specified in the program.
He added that the authority will begin to receive quotations from companies starting December 17, 2017 until January 25, 2018, after which the authority will study the offers submitted and then an-nounce the award of the tender to the winning companies.
It is believed that returns achieved by (King Abdul Aziz Project for Riyadh Public Transport - Metro and bus), for the city and its inhabitants, will exceed the provision of public transport for users of service project. It will extent to developing the lifestyle and enhancing its quality, as well as up-grading many sectors of the city, developing their economic structure, improving their investment environment, and boosting the city position as a destination for quality investments.
The project is designed as per high technical specifications, notably the use of automated rail sys-tem (without driver), and the establishment of stations according to modern architectural designs, prepared by a group of leading engineering firms in the world. It is characterised by high standards of amenities and safety systems, the latest information and communication systems, number of restaurants, cafes and shops, as well as train carriages that have been manufactured by three of the largest rail carriages manufacturers in the world.
To register, interested companies should go to the new Riyadh Metro website at riyadhmetro.sa for more details.
“ADA will pre-qualify firms on an ongoing basis and the final date for companies to register is
17 December 2017. ADA will then issue a Request for Proposal (RFP) for all pre-qualified firms, which will cover the full bid terms, and will simultaneously ask for bid submissions. Bids must be returned to ADA no later than 25 January 2018.” said Hasan Almousa, Deputy Director of Transportation Planning at ADA.
“Companies will first need to respond to the RFP and submit their best and final bid. ADA will only consider bids which are compliant within the terms of the process, and which exceed the minimum price for the relevant stations.” he added.
ADA expects to award the naming rights contracts in early 2018.
Source: Trade Arabia