Dubai’s Roads & Transport Authority (RTA) has awarded a AED384m ($104.5m) contract to Beijing-based China State Construction Engineering Corporation for phase two of the Dubai Water Canal Project.

The second phase of the 3-kilometre-long canal project linking Dubai creek with the Arabian Gulf includes the construction of bridges across Al-Wasl and Jumeirah Beach Roads above the Dubai Water Canal enabling the passage of 8.5-metre-high yachts. It also includes the construction of a bridge leading to the proposed peninsula to the south of Jumeirah Park.

Work on the project is expected to be completed in the fourth quarter of 2016.

In March, MEED reported the RTA had received bids on 25 March from contractors for the contract to build the second phase of infrastructure for the project. Firms submitted two offers: one was with seven years of financing; the other for a construction-only contract.

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

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 China State Construction Engineering Corporation.

Also in March, the RTA awarded a contract to a joint venture of US-based Parsons International and the UK’s Halcrow to supervise construction of the project. The scope of work includes elevating Sheikh Zayed, Al-Wasl and Jumeirah Beach roads in Dubai, relocating utilities and constructing the canal.

The project is split into three construction contracts. 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 tunnelling to facilitate the canal construction.

The RTA 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, Al-Wasl and Jumeirah Beach roads 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.