Dubai awards contract for canal project

27 March 2014

Joint venture of Parsons/Halcrow to supervise construction of Dubai Water Canal Project

Dubai’s Roads & Transport Authority (RTA) has awarded a contract to a joint venture of US-based Parsons International and the UK’s Halcrow to supervise construction of the Dubai Water Canal Project.

The partnership’s initial scope of work – awarded in December 2006 – was for design, and it has now been awarded the next phase of the project.

The new scope of work includes elevating three major roads in Dubai, relocating utilities, and constructing the 2.8-kilometre-long Dubai Water Canal. The project is split into three construction contracts, and Parsons is responsible for construction supervision of the first two packages related to the roads and bridges, while Halcrow will be responsible for the third package of canal excavation and marine works. The first phase of the project includes elevating Sheikh Zayed Road (six lanes in each direction) and relocating utilities using micro tunneling to facilitate the canal construction.

MEED reported that the RTA had received bids on 25 March from contractors for the contract to build the second phase of infrastructure for the Dubai Water Canal project.

Contractors submitted two offers: one was with seven years of financing; the other for a construction-only contract.

The lowest bidder for the contract with seven years of financing was the local/Australian Habtoor Leighton Group(HLG) with a price of AED487m ($133m). The low bid was about 6 per cent lower than the second-lowest price of AED516m, submitted by Beijing-based China State Construction Engineering Corporation.

The other bidders were a joint venture of the local Al-Naboodah Contracting Company and the Saudi Binladin Group (SBG) with a price of AED526m; the local/Belgian Bel Hasa Six Construct with AED529m, a joint venture of the local Wade Adams Contracting and the local/UK Dutco Balfour Beatty (DBB) with AED574m, and Turkey’s Gunal with a bid of AED642m.

The low bidder for the construction-only contract was China State with a price of AED384m, which is about 5 per cent lower than the second-lowest bid submitted by India’s Afcons. Afcons did not submit an offer with financing.

The other bidders were HLG at AED418m, Wade Adams/DBB at AED434m, Gunal at AED450m, Al-Naboodah/SBG at AED463m, and Bel Hasa Six Construct at AED487m.

The contract involves the construction of two separate bridges for Al-Wasl and Jumeirah Beach roads. The Jumeirah Beach Road bridge will be 220 metres long and 26 metres wide with three lanes of traffic in each direction. The bridge on Al-Wasl Road will be 530 metres long and 19 metres wide with two lanes of traffic in each direction. It will also have a 900-metre-long direction ramp connecting to the bridge.

The RTA has also invited contractors to bid by 30 April for a contract to complete the third phase of the Dubai Water Canal project.

The contract involves the excavation and other marine works for the project, which is also known as the creek extension. The new section of waterway will run from the already extended creek at Business Bay, under Sheikh Zayed Road, Al-Wasl Road and Jumeirah Beach Road in the Al-Safa area.

In October 2013, Gunal was awarded a contract that involves building a 16-lane bridge that will take traffic on Sheikh Zayed Road across the proposed Dubai Water Canal project that involves taking Dubai creek from the Business Bay area to the Gulf. The contractor is providing funding for the works.

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