The UAE’s Baniyas Investment & Development (BID) is preparing to issue tender documents for construction contracts on the estimated AED700m ($191m) third phase of its Bawabat al-Sharq development in Abu Dhabi as the local developer starts to see signs of a market recovery.
“Our first quarter sales for this year are up 30 per cent on last year,” says Wael Tawil, chief executive officer, Baniyas Holding Company. “Banks deposits were greater than loans at the end of last year, and that has reflected positively on the market. Project financing is there and mortgages are available for the right customer.”
The first contract to be tendered will be for the construction of 153 villas. It is expected to cost about AED250m. A second contract worth about AED450m will cover apartment buildings.
Other contracts that will be tendered on the development include a AED150m package to build a school and a AED80m contract for the second phase of the hospital at the development.
The contractor for the first phase of the project was the local Target Engineering Construction Company. For the second phase of the scheme, the contractor is the local Royal International Construction.
The project’s 1 square kilometre masterplan includes a shopping centre, a tennis club, commercial buildings and parking areas. The consultant is France’s Roger Taillibert.
A football stadium is planned next to the development and Abu Dhabi General Services (Musanada) is handling the project on behalf of Baniyas Sports & Cultural Club. Its football team plays in the UAE Football League.
The design is currently being reviewed to make it more cost effective. “We are engineering the stadium so we get the best value from the project,” says Mohamed Khalifa al-Fahed al-Mehairi, chief executive officer, Musanada.
Musanada first tendered the project in late 2009 and had received bids from at least five contractors (MEED 3:12:09).