Contract awards 5 January 2011

Biggest contract: $150m

Awarded to the local Arabtec Construction to build two residential towers in Abu Dhabi

$477m: Value of major contract awards

7: Number of contracts awarded

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The decision by Kuwait Municipality to scrap the $77bn Silk City scheme, and to redraw the development plan for Kuwait’s northern region, led to a sharp fall in MEED’s Gulf Projects index in the first week of the new year.

The total value of major projects planned or under way in the Gulf on the 5 January was $2.72 trillion, a fall of 3.6 per cent on the previous week, according to the index.

The decline was largely the result of a 4.8 per cent fall in the total value of projects planned or under way in the GCC, which accounts for 76 per cent of the Gulf market.

The fall is the result of the Madinat al-Hareer (City of Silk) scheme being put on hold pending a review. Canada’s Malone Given Parsons, with local firm Gulf Consult, has been commissioned to review and redesign the masterplan for the City of Silk over the next 12 months. The development is estimated to be worth more than $77bn by MEED Projects.

Upcoming tender deadlines
  Client Contract Submission date
Kuwait Kuwait University College of Science and Faculty Club 11 Jan
UAE Globalfoundries Abu Dhabi microchip plant 16 Jan
Iraq Electricity Ministry Four independent power plans 18 Jan
Oman Transport & Communications Ministry In-flight catering facilities 31 Jan
Saudi Arabia Saudi Electricity Company Qurayyah independent power project 28 Feb
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Saudi Arabia had a 1 per cent decline in the total value of projects planned or under way, with a $7bn multipurpose scheme in Riyadh being put on hold. However, the Kingdom also saw the launch of a new $340m water transmission pipeline project.

In Bahrain, a marginal increase resulted from the revival of Crown Dilum Development’s $50m Marina Reef project.

Project updates 5 January 2011
  Project Name Project Status
Iraq Wasit Power Plant Construction
Saudi Arabia Jubail Metal Alkyls Plant Construction
Kuwait Dancing Towers On hold
UAE Ruwais Sulphur Handling Terminal Expansion – Phase IV Construction
Saudi Arabia Yanbu Aromatics Complex Construction
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Overall, the region saw the launch of nine new projects worth a combined total of $3.4bn, as well as the revival of three projects, in total worth an estimated $335m. This was offset to a large extent by the completion of 13 projects worth an estimated $2.7bn.

The overall projects market is down by 1.9 per cent on the previous year, with the GCC’s project market recording a year-on-year fall of 9.1 per cent.