Consultant dearth threatens Jeddah airport progress

08 December 2006
Uncertainty surrounds the redevelopment of King Abdulaziz International Airport in Jeddah after only one firm submitted proposals for the contract to provide project and construction management (PCM) services. The scheme is seen as vital for increasing business traffic to the Red Sea and the holy cities of Mecca and Medina (MEED 22:9:06).

'They will find it very difficult to move ahead with just one bidder,' says one of the consultants that declined to submit proposals. 'Heads will roll on this.' Beirut-based Dar al-Handasah (Shair & Partners) was the sole bidder.

The PCM contract has been plagued with problems over the last 18 months. A team of the US' Bechtel and the local Dar al-Riyadh had originally been awarded the contract. However, following the establishment of the General Aviation Civil Authority (GACA), the award was annulled. The contract was subsequently retendered with eight groups invited, although the bid deadline has been pushed back several times.

'The contractual terms have scared them off,' says another consultant. 'There were no force majeure clauses, there were no guarantees and there was too much liability put on the project manager.'

It is unclear how GACA will now proceed. Local tendering regulations stipulate that at least three companies must participate in tenders, although it could request a presidential decree allowing it to proceed. Sources at GACA declined to comment, but confirmed that consultants had been requested to reveal reasons for declining to bid.

The scope of works on the five-year contract includes drawing up a comprehensive 30-year development masterplan. The expansion is valued at SR 4,000 million ($1,067 million).

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