Al Habtor-Specon managing director Thrasos Thrasyvoulou.
Dubai-based MEP contractor Al Habtoor-Specon LLC has clinched a Memorandum of Understanding (MoU) with Vinci Energies of France to tender as a consortium for a US $800 million (QR3 billion) project to build 40 electrical sub-stations in Qatar as part of that country’s ambitious upgrade of its electricity transmission and distribution network.
The company is hoping to clinch a similar alliance with another suitable player in order to be able to take advantage of a similar upgrade earmarked for Abu Dhabi, said managing director Thrasos Thrasyvoulou.
“It is definitely in our plans to enter into a similar alliance in terms of power transmission and sub-station work in Abu Dhabi,” he revealed.
The specialist MEP contractor is part of the Al Habtoor Engineering group, in which Leighton Holdings acquired a 45% stake in 2007. Thrasyvoulou says the MoU with Vinci Energies is the first fruit of a strategic decision to diversify the MEP contractor’s activities into the medium and high-voltage electrical work.
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“This is a niche market segment, but a potentially lucrative one due to the infrastructure expansion projects across the region, particularly in terms of electricity transmission and distribution. We have a strong in-house engineering capability in this regard, plus the competition is less, and the labour content is that much less as well. So it stands to play a major role in the volume of business for the overall group,” predicted Thrasyvoulou.
The MoU is the outcome of a two-month long negotiation process, with an official ceremony to be held in Qatar at the end of July, which will be attended by local authorities as well as delegations from Al Habtoor-Specon and Vinci Energies respectively.
“Our understanding with the energy and power division of this giant group, which ranks as one of the biggest construction conglomerates in the world, was due largely to our extensive experience in the field to date,” comments Thrasyvoulou.
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