Parsons Awarded $53M 3-Year Contract For Roads Program In Riyadh, Saudi Arabia

Rhea-AI Summary

Parsons (NYSE:PSN) has secured a $53 million, three-year contract from the Royal Commission for Riyadh City (RCRC) in Saudi Arabia for program management office services on its Main and Ring Roads Program. The project encompasses approximately 500km of new and improved road corridor works in Riyadh.

As the PMO, Parsons will oversee management and control of construction activities. The program aims to improve city mobility, address congestion, and support infrastructure needs for upcoming global events like Expo 2030 and FIFA World Cup 2034. The new road network will reduce traffic time and enhance city connectivity.

Parsons has collaborated with RCRC for over a decade on various projects, including Riyadh's transportation masterplan and the King Abdulaziz Project for Riyadh Public Transport. The company currently manages more than 50 active projects in Saudi Arabia with a regional team exceeding 6,500 employees.

Positive

• Secured new $53 million contract for three years
• Large-scale project covering 500km of road development
• Strategic positioning for major upcoming events (Expo 2030, FIFA 2034)
• Established presence with over 50 active projects in Saudi Arabia
• Large regional workforce of 6,500 employees

Negative

• None.

Insights

Financial Analyst

The $53 million contract win strengthens Parsons' already robust presence in Saudi Arabia, where they currently manage over 50 active projects. While the contract value represents less than 0.5% of Parsons' annual revenue, its strategic importance lies in deepening ties with Saudi Arabia's Vision 2030 initiatives. The three-year timeline provides steady revenue visibility and positions Parsons favorably for future infrastructure projects in the region, particularly with upcoming mega-events like Expo 2030 and FIFA World Cup 2034. The company's long-standing relationship with RCRC and proven track record in the region enhances the probability of securing additional contracts. Infrastructure development in Saudi Arabia remains a key growth driver and this contract reinforces Parsons' competitive position in the market.

Infrastructure Development Expert

This contract marks a significant infrastructure development initiative, encompassing 500km of road network improvements in Riyadh, Saudi Arabia's largest city. The project's scope aligns with critical urban mobility needs and upcoming major events. The PMO role gives Parsons comprehensive oversight of construction activities, demonstrating their technical capability in managing complex infrastructure projects. Their decade-long experience with RCRC and successful delivery of the Riyadh Metro project positions them well for effective execution. The project's focus on reducing traffic congestion and improving connectivity will be important for Riyadh's growing population and economic development. The integration with existing transport infrastructure showcases a holistic approach to urban mobility solutions.

CHANTILLY, Va., Dec. 09, 2024 (GLOBE NEWSWIRE) -- Parsons Corporation (NYSE:PSN) announced today that the company has been awarded a $53 million, three-year contract by the Royal Commission for Riyadh City (RCRC) in Saudi Arabia for program management office (PMO) services on its Main and Ring Roads Program.

“We are proud to call the RCRC a long-standing client of ours and are honored to be working on the Main and Ring Roads Program alongside them,” said Martin Boson, Senior Vice President and General Manager of Parsons' Saudi Arabian operations. “With Riyadh being the most populated city in Saudi Arabia, the Program plays a fundamental role in facilitating the smooth mobility of people and vehicles within the city in the safest and most efficient way possible.”

Under the contract, Parsons will be the PMO for all new major road development programs in Riyadh, providing overall management and control of construction activities. The program includes approximately 500km (about 310 miles) of new and improved road corridor works. Key objectives of the program are to keep the city moving during construction and also to meet the requirements associated with the growth plans for the City of Riyadh, including tackling congestion and hosting global events such as the Expo 2030 and FIFA World Cup 2034. Upon completion, the new road network will reduce hours lost in traffic, leading to improved average trip durations and enhanced connectivity across the city.

RCRC is responsible for delivering several megaprojects in Riyadh which are being developed by government agencies who have been tasked with realizing the country’s Vision 2030 programs.

Parsons has been working with RCRC for over a decade on projects including the city transportation masterplan for Riyadh and has provided program and construction management services for the King Abdulaziz Project for Riyadh Public Transport, with the Riyadh Metro as the centerpiece along with a new bus network. The Main and Ring Roads Program will provide a critical interfacing layer within this transformational, multi-modal system.

Parsons has been a trusted partner in delivering critical infrastructure in Europe and the Middle East for over 65 years and currently has more than 50 active projects in Saudi Arabia.

With a regional team of more than 6,500 employees, Parsons brings deep domain expertise across urban and destination development, transport infrastructure and smart mobility, industrial and commercial development, asset management, sustainability, and resilience in the Kingdom.

About Parsons

Parsons (NYSE: PSN) is a leading disruptive technology provider in the national security and global infrastructure markets, with capabilities across cyber and intelligence, space and missile defense, transportation, environmental remediation, urban development, and critical infrastructure protection. Please visit Parsons.com and follow us on LinkedIn and Facebook to learn how we’re making an impact.

To join Parsons in creating the future of the Middle East, visit parsons.com/mea

Media Contact:
Lara Masri
+971 4 4029767
Lara.Masri@parsons.com

Investor Relations Contact:
Dave Spille
+ 1 703.775.6191
Dave.Spille@parsons.com

FAQ

What is the value and duration of Parsons' (PSN) new contract in Riyadh?

Parsons (PSN) has been awarded a $53 million contract for a three-year duration by the Royal Commission for Riyadh City.

How many kilometers of road work will Parsons (PSN) manage in Riyadh?

Parsons will manage approximately 500km (about 310 miles) of new and improved road corridor works in Riyadh.

What major events will the Parsons (PSN) road program support in Riyadh?

The road program will support infrastructure needs for Expo 2030 and FIFA World Cup 2034 in Riyadh.

How many active projects does Parsons (PSN) currently have in Saudi Arabia?

Parsons currently has more than 50 active projects in Saudi Arabia.