Construction on the first phase of the Doha Metro cannot be completed under the existing transport blockade imposed by Saudi Arabia and other states on Qatar, according to contractors involved in the project.

While there are enough building materials in stock to allow construction work on the Doha Metro to proceed over the next few weeks, an extended blockade could mean contractors will run out of materials within weeks.

“We will potentially be forced to take on all types of liabilities… including missing the agreed project delivery date with the client and the unfulfilled lump sum contracts with sub-contractors that are based in Saudi Arabia, UAE or even Qatar,” one of the contractors tells MEED.

If the blockade continues, one option the contractors could take is to quickly negotiate new contracts with materials suppliers from Turkey, India or Iran, which will entail additional costs that neither they nor the client, Qatar railways Company (Qatar Rail), would be willing to absorb.

It appears that the only option that contractors would prefer to focus on in order to meet their obligations is the quick resolution of the ongoing diplomatic dispute. “So far there is no viable plan B,” another source tells MEED.

Qatar Rail recently released the tender for the extension of the Doha Metro Green line and expects to receive proposals from bidders by 1 October.

Groups that are understood to be planning to bid for the contract include the team comprising Greece’s Aktor, Turkey’s Yapi Merkezi and STFA, India’s Larsen & Toubro and local AlJaber Engineering, as well as a team that includes Italy’s Salini Impregilo among others.

It is unclear how the blockade, and its impact on Qatar’s fiscal standing, will affect the procurement timeline for the package.

Qatar Rail awarded contracts worth in excess of QR60bn ($16.5bn) to nine joint ventures between 2013 and 2015.

The first phase of the Doha Metro is expected to be completed by 2019, three years prior to the country hosting the 2022 Fifa World Cup.

 

Doha Metro contracts under execution

Section

Project management and consultancy

Contractor

Contract value ($m)

Award year

Expected completion

Red Line North

At grade and elevated

 

Jacobs Engineering

Rizzani de Eccher (Italy) / Lotte E&C (South Korea) / Redco International (local)

609

2014

2017

 

Underground

Impregilo (Italy) / SK Engineering & Construction (South Korea) / Galfar Al Misnad Engineering & Contracting (local)

2,323

2013

2018

Red Line South

At grade and elevated

Jacobs Engineering

FCC (Spain) / Archirodon (Greece) / Yuksel Construction (Turkey) / Petroserv (local)

654

2014

2017

Underground

QDVC (France/local) / GS Engineering & Construction (South Korea) / Al Darwish Engineering (local)

2,048

2013

2018

Green Line

   

Porr (Austria) / Saudi Binladin Group (KSA) / HBK Contracting (local)

244

2014

2018

At grade and elevated

2,468

2013

2018

Gold Line

At grade and elevated

To be tendered in phase 2

Underground

Louis Berger / Egis Rail

Aktor (Greece) / Yapi Merkezi (Turkey) / STFA (Turkey) / Larsen & Toubro (India) / AlJaber Engineering (local)

3,300

2014

2018

Other contracts

Msheireb station

Louis Berger / Egis Rail

Samsung C&T (South Korea) / OHL (Spain) / Qatar Building Company (local)*

1,400

2013

2018

Education City station

Shadow operator (metro and Lusail Light Rail)

 

Serco (UK)

16

2013

2016

Systems, Rolling Stock and Track Work (Manufacture, supply and installation)

 

Mitsubishi Heavy Industries (Japan) / Mitsubishi Corporation (Japan) / Hitachi (Japan) / Kinki Sharyo (Japan) / Thales (France)

3,250

2015

2019

Systems, Rolling Stock and Track Work (System maintenance Phase 1)

 

Mitsubishi Heavy Industries / Mitsubishi Corporation / Hitachi / Kinki Sharyo / Thales

877

2018

2038

Shadow operator (Long Distance Freight & Passenger

 

DB International

7

2015

2015

Sources: MEED, MEED Projects, Qatar Rail *Contract was terminated in 2016; remaining work has been awarded to CCC