Qatar awards $2.7bn of road projects

13 January 2014

Seven contracts awarded for a series of road projects in Qatar

Qatar’s Public Works Authority (Ashghal) has awarded seven contracts worth a total of QR10.1bn ($2.7bn) for a series of road projects across the country.

Three of the contracts were awarded under the authority’s Expressway Programme. The largest is a QR3.4bn contract awarded to the joint-venture of Turkish firms Dogus Holdings and Onur Construction to upgrade the section of Al-Rayyan Road that stretches from west of the Olympic Roundabout to the west of the New Al-Rayyan Roundabout. The total length of the improvement scheme is approximately 5.3 kilometres and involves the construction of four lanes in each direction, separated by a central median in addition to 5.4km of side roads. The project will start in the first quarter of 2014, and is due to be completed by the first quarter of 2017.

A second contract worth QR1bn was awarded to a joint-venture of Qatari firms Six Construct Qatar and Boom Construction Company to upgrade Al-Rayyan Road from west of New Al-Rayyan Roundabout to east of Bani Hajer Roundabout. The road’s length is 2.9km, with four lanes in each direction separated by a central median, in addition to 2km of side roads. The project will also start this quarter and is due to be completed by the third quarter of 2016.

A third contract, worth QR3.2bn, was awarded to a joint-venture of Cyprus-based J&P (Joannou & Paraskevaides) Overseas and Greece’s J&P Avax for the design and construction of the first phase of the New Orbital Highway.

The project includes about 45km of road network and represents 25 per cent of the 180km-long orbital road scheme. The project is located to the southwest of Doha and provides a new dual carriageway connecting the New Doha Port and Al-Wakrah bypass with the other phases of the New Orbital Highway, as well as the construction of a road linking Mesaieed to the East/West Corridor.

The project also includes four grade-separated interchanges. On completion, the New Orbital Highway project between Al-Khor and Mesaieed will provide an orbital road around Doha, and will create a truck route between Mesaieed Industrial City and Ras Laffan Industrial City, reducing heavy vehicle movements through the city.

In June 2013, Ashghal awarded 10 design and construction contracts worth QR7.2bn under its Expressway Programme. Ashghal said that under the seven-year programme it plans to launch 30 major road projects delivering more than 900km of new roads.

The other four contracts signed this week by Ashghal were awarded under its Roads & Infrastructure Projects in Local Areas Programme.

The largest of these contracts, worth QR1.3bn, was awarded to the joint venture of Qatar Trading and Contracting Group and Portugal’s MSF Engenharia for the first package of the Doha Industrial Area project. The aim of the scheme is to upgrade the roads and infrastructure in the Doha Industrial Area in line with future plans, while respecting existing development where possible. The project, which covers 480 hectares with about 38km of roadworks, will start in the first quarter of 2014 and is due to be completed by the third quarter of 2016.

A second contract, worth QR313m, was awarded to a joint-venture of Kuwait’s Combined Group Company for Trading & Contracting (CGC) and Spain’s Sacyr Construction for the first package of the construction of an integrated infrastructure for north and east Al-Kheesa. The contract covers an area of 153 hectares, representing about 11 per cent of the entire development project of the Al-Kheesa area. The contract will serve 654 residential plots and three commercial plots, two schools and nine mosques, in addition to 12 public gardens, three car parks and 20 various buildings. The project will start in the first quarter of 2014 and is due to be completed by the third quarter of 2015.

A third contract, worth QR245m, was awarded to local Gulf Consolidated Contractors to upgrade infrastructure for the Commercial Street in Al-Khor. The project includes upgrading the current road and developing new roads and drainage systems. To ease traffic flow and congestion, the project will provide service roads, parking bays and traffic signal-controlled junctions that will improve commercial and residential access. The project will start in the first quarter of 2014 and is due to be completed by the fourth quarter of 2015.

The final contract, worth QR547m, was awarded for the first package of the construction and development of infrastructure at Rawdat Abal Heeran. The Rawdat Abal Heeran roads and infrastructure project is approximately 760 hectares in size and comprises a large open desert on the western periphery of Doha, north of the Sailiya Road, in Al-Rayyan municipality. Ashghal did not name the company that won this contract.

Last month, Ashghal launched a new contracting strategy for its local roads programmes under which 75 companies have been prequalified to develop more than 200 projects under the programmes within the next five to seven years. 

The aim of the contracting strategy was to establish a core group of companies to carry out work as needed, based on a predetermined set of prices and specifications. The strategy also seeks to enhance the role of Qatari firms by requiring that successful bidders must either be a Qatari-registered company or a joint venture of an international firm with a Qatari partner that owns not less than 50 per cent of the shares of the company. 

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