Europeans win crushed stone contract

16 November 2001

A joint venture of Italy's Grandi Lavori Fincosit (GLF)and Ballast Ham Dredgingof the Netherlands has been awarded the engineering, procurement, installation and construction (EPIC) contract on the crushed stone import facilities project at Mesaieed. Valued at QR 240 million ($65.9 million), the package is due to be completed in late September 2003. It is GLF's second major win at Mesaieed this year and is the first contract won by the recently merged dredging divisions of Ballast Nedamand the HBG group. The client is Qatar Petroleum(QP- MEED 19:10:01; 27:7:01).

The contract involves dredging and onshore reclamation works, shore protection using rock revetments, and the construction of berthing, handling and storage facilities. Some 7 million cubic metres of material will be dredged from the harbour basin, which will be used to reclaim two new land areas. Two quay walls, of 470 metres and 150 metres in length, will also be built.

Ballast Ham Dredging has a 40 per cent share in the joint venture and will undertake the dredging and reclamation works. Its portion of the contract is worth about Eur 30 million ($26.4 million). GLF's local subsidiary, Grandi Lavori Middle East, will undertake the civil and maritime works.

About seven companies submitted bids in the summer for the contract. Other bidders included Athens-based Consolidated Contractors International Company (CCC), with Belgium's Six Construct; South Korea's Samsung Engineering, with Turkey's STFAand the US' Great Lakes Dredge & Dock Company; Geneva-registered Archirodon Construction (Overseas), with Royal Boskalis Westminsterof the Netherlands; China Harbour Engineering Company; and Denmark's E Pihl & Soen.

A second contract is pending on the project, covering the construction of roads and bridges serving the facility. Bids were submitted in early October for the estimated $25 million package.

The project forms part of QP's plans to develop Mesaieed port. In April, GLF was awarded an EPIC contract for a new multiproducts berth in a deal valued at QR 40 million-50 million ($11 million-13.7 million - MEED 1:6:01).

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