
The Arriyadh Development Authority (ADA) is set to award the SR2bn ($533m) contract for road tunnels under an airbase in Riyadh by April.
The local Almabani General Contractors submitted the lowest bid for the road expansion project in late November 2008, beating bids from four other firms. An award was expected in early January, with mobilisation work to start immediately.
However, Almabani and the ADA have remained in negotiations as the client is believed to be willing to pay only half the fees.
A source at Almabani confirms the talks are ongoing, but is confident they will be concluded by April.
Other local firms that submitted bids for the original contract include Shibh al-Jazira Contracting Company, Saudi Oger and Saudi Binladin Group. China Harbour Engineering Company also submitted a bid.
The original project scope covered the construction of three tunnels with a combined length of 3.3 kilometres, beneath Riyadh Air Base in the centre of the capital (MEED 1:2:09).
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