Abu Dhabi restructures Khalifa Port infrastructure contract

05 May 2010

Al-Habtoor Leighton is now pricing a design and build contract

Abu Dhabi Ports Company (ADPC) has restructured the AED1.4bn ($381m) infrastructure contract at Khalifa Port and Industrial Zone (KPIZ) it awarded to the local/Australian Al-Habtoor Leighton Group in July 2009.

According to sources working on the project, the client decided to restructure the deal because of major reductions to the scope of work.

The contract, which was awarded as a traditional lump-sum contract, has now been changed to design and build, and Al-Habtoor Leighton will submit fresh prices for the work. “It is design and build now. New prices are going in, they will be substantially lower than the original contract value because the scope has been reduced,” says one source.

The original contract involved the construction of the onshore port facilities and includes the construction of 47 buildings, the largest being the central facilities building, which is more than 300 metres in length and five floors high.

The works were originally due for completion by September 2011 (MEED 25:3:09).

UK-based Mouchel is the consultant.

Abu Dhabi Ports Company is also tendering four other infrastructure contracts at KPIZ.

It also recently awarded a AED300m power transmission contract to India’s Larsen & Toubro in late April this year (MEED 28:4:10).

The first phase of the port, which is being built offshore, will open in 2012, with capacity for 2 million 20-foot equivalent units (TEUs) and 6 million tonnes of general cargo. A consortium of Archirodon Construction, Boskalis Westminster Middle East, and Hyundai Engineering & Construction was awarded the AED5.5bn contract to build the port in 2007.

Four subsequent phases will result in capacity rising to 22 million TEUs and 35 million tonnes of cargo by 2028.

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