KEC Signs Partnership Agreement with STC

Knowledge Economic City Company announces signing a partnership agreement with Saudi Telecom Company (STC) on 16/12/2013G, corresponding to 13/02/1435H, for linking 40 km in the Knowledge Economic City to the fiber technology and establishing the telecommunications infrastructure for the city and developing it by offering the finest communication services and information technology that commensurate with the status of knowledge Economic City and its role in keeping up with the era. It should be noted that there is no direct financial impact of this agreement on the financial statements of Knowledge Economic City Company. This agreement has been built on BOT basis (Build/Operate/Transfer of Ownership) so that STC develops a smart infrastructure network, operates it, and then transfers its ownership by the end of the concession period to Knowledge Economic City Company (KEC) while KEC will be responsible for the implementation of the civil works which will be formulated by a contractor in accordance with the criteria established by STC and under its management and supervision. The period of the contract lasts for fifteen years from the date of signature and the ownership of the project will be transferred thereafter to Knowledge Economic City without charges, while KEC will be receiving a proportion of the income realized from subscribers within the Knowledge Economic City project. This step supports the strategy of Knowledge Economic City which aims to develop and provide world-class smart infrastructure.