Dubai to award $1.4bn worth of road building contracts

30 May 2008
Deals follow award of emirate’s largest ever road deal to Al-Naboodah.

Dubai’s Roads & Transport Authority (RTA) is set to award AED5bn ($1.4bn) worth of road contracts in the coming months.

The authority recently awarded two packages totalling more than AED2.4bn, including a AED1.85bn contract for phase four of the parallel roads scheme.

The local Al-Naboodah Contracting won the latter two-year contract, which is the largest highway contract ever awarded by the authority.

The project involves the construction of two roads through Dubai Industrial Area and Jebel Ali Free Zone South, between Sheikh Zayed and Emirates roads.The work includes upgrading existing roads and building two intersections across the Jebel Ali-Lehbab road.

Al-Naboodah is already working on phase 3b of the parallel roads. US-based Parsons International is the consultant for the entire scheme.

The second award went to the local Emirates Road Contracting (ERC) for the AED574m Al-Khail road improvement contract. The work involves increasing the number of lanes on the highway in the Al-Quoz and Al-Barsha areas.

The RTA is now evaluating bids for five further major road schemes. In the largest of the schemes, South Korea’s Sung Won Corporation is the low bidder with a price of AED1.7bn for phase 2a of the parallel roads.

The scheme involves the construction of roads, intersections, bridges and underpasses through the Business Bay development, and the Dubai creek extension. The other bidders are Italy’s Salini Costruttori, at AED1.98bn, and ERC, at AED2bn.

In the second new project, China State is the low bidder for the next phase of the project to widen Emirates road, with a price of AED938m.

The contract involves increasing the number of lanes on Emirates road to accommodate more traffic between Arabian Ranches and the Al-Khail road junction. The other bidders are Japan’s Taisei Corporation and ERC.

Salini is the low bidder with a price of AED790m for the contract to build the bridges that will take Sheikh Zayed road over the planned creek extension.

The two-and-a-half-year contract involves the construction of two bridges with seven lanes in each direction. Each will be approximately 610 metres long and 36 metres wide, with 8.5 metres of clearance from the water below.

The other bidders are China State and the local/Belgian Bel Hasa Six Construct. The joint venture of Parsons and the UK’s Halcrow is the consultant.

Salini is already working on the nearby Ras al-Khor crossing, which involves the upgrade of the first interchange - also known as Defense roundabout. The local Wade Adams Contracting is the low bidder with a price of AED707m for a package on the seventh creek crossing.

The scheme involves roadworks in Bur Dubai that will connect with the proposed seventh creek crossing near the Sheraton hotel.

The other bidders are the local/UK Dutco Balfour Beatty with a price of AED717m, and the local/Cypriot National Wheel J&P at AED730m. The US’ Parsons is the consultant.

Finally, ERC also submitted a low bid of AED692m for road works in the Rashidiya park area. The other bidders are Salini at AED731m and China State at AED760m. Again, Parsons is the consultant.

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