Middle East contracts awarded: March 2014

17 April 2014

Over $12bn of contracts awarded in March in the Middle East

Qatar dominated the contract awards in March, as the Gulf peninsula state starts moving forward on the $70bn of new infrastructure it said it would build ahead of it hosting football’s Fifa World Cup in 2022.

The biggest contract is for the construction of the underground sections of the Gold Line of the Doha Metro network. In mid-March Qatar Railways Company (Qatar Rail) has selected the consortium of Greece’s Aktor, Turkey’s Yapi Merkezi, STFA also of Turkey, India’s Larsen & Toubro and the local AlJaber Engineering for the estimated QR12bn ($3.3bn) contract.

The tender has been a long drawn out process. In late February, Qatar issued conditional letters of award to the Aktor-led group and the consortium of Germany’s Hochtief, the local Al-Jaber Trading, Athens-based Consolidated Contractors Company (CCC), the local Marbu Contracting Company and the local/German Lusail Hochtief.

The letters were issued to give contractors a final chance to submit their best commercial offers.

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Middle East contracts March 2014

Firms submitted fresh prices at the end of 2013. Bids were originally submitted in early 2013, but after several months of evaluating bids, Qatar Rail decided to seek revised prices after it reduced the scope of some parts of the Doha metro scheme, including the Gold Line. The change was made so the company could concentrate on the key elements of the network it needs in place for the 2022 Fifa World Cup. Despite the reduction in scope, the Gold Line is the largest construction contract to be tendered for Doha Metro.

Qatar has also been appointing contractors to work on its road network. The Public Works Authority (Ashghal) has awarded two design and construction contracts worth a total of $2.86bn for the second phase of the New Orbital Highway and Truck Route project under its Expressway Programme.

The larger contract, valued at $1.7bn, was awarded to the joint venture of Habtoor Leighton Group and Aljaber Engineering for the design and construction of Mesaieed to Salwa Road. The project will provide an orbital route of about five lanes and two separated truck lanes in each direction, also with the provision of two future lanes.

The other contract, valued at $1.15bn, was awarded to a joint venture of the local QDVC and Bin Omran for the design and construction of the route from Salwa Road to North Relief Road. The project entails five lanes and two truck lanes in each direction, with the provision of two future lanes.

The New Orbital Highway and Truck Route is one of the largest projects being delivered through Ashghal’s Expressway Programme, which will link the Mesaieed area to Al-Khor and Ras Laffan Industrial City.

The project is considered to be a vital addition to the roads network of Qatar as it will form a free-flowing traffic route connecting Qatar’s northern and southern regions without the need to travel through Doha city. This will divert traffic outside the city, particularly trucks, and better manage heavy vehicles movement throughout the city providing greater journey choice.

The Orbital Highway Project and Truck Route will encompass the design and construction of approximately 200 kilometres of dual carriageway including 22 major intersections of bridges and tunnels. Major infrastructure improvements will be implemented as part of the project, including a storm water drainage network, treated sewage effluent networks, electrical and telecommunication networks, street lighting and substations.

The only other deal valued at more than $1bn during March was secured by UK-based Petrofac for the engineering and procurement (EP) services on its Rabab Harweel Integrated Project (RHIP) in the south of Oman.

The four-and-a-half-year deal, which was awarded by Petroleum Development Oman (PDO), will also see Petrofac working on the scheme’s construction and start-up phases.

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