Six of the best: Top GCC road projects

Salam Street is one of several high value road development projects underway in the GCC.

RELATED ARTICLES: RTA allocates US $2 billion for projects; Bids in for Abu Dhabi road job; KSA to spend US $3.17bn on roads in 2010; Abu Dhabi releases Musaffah roads tender

Private developers may be having their difficulties, but oil-rich governments in the region continue to spend heavily on construction projects. Thanks to new urban development and rampant growth in car usage, roadbuilding is one area where they are focusing their efforts right now.

Saudi Arabia allocated US $3.17 billion in its 2010 budget for construction of 6400 kilometres of roads. Last year, the country allocated SR 11.5 billion (US $3.06 billion) for road construction.

In Dubai, where many freehold residential projects remain in limbo, the powerful Road & Transport Authority has allocated US $2 billion for project development in 2010. The money will cover around 129 jobs, 13 of which will be new.

While it may not be glamorous, roadbuilding is big business and there are opportunities galore for contractors and suppliers focused on the sector. Here, we look at six of the GCC’s most valuable road construction projects.

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1. Mafraq-Ghweifat Highway (UAE Western Region)

Client: Abu Dhabi Department of Transport

Estimated value: US $2.7 billion

Description: The Department of Transport is offering a 25 year concession to upgrade, operate and maintain the Mafraq-Ghweifat Highway. The project will see the highway widened to four lanes in each direction (three around Ghweifat) and upgraded to meet international standards in design and safety.

The road, which stretches 327 km from Mafraq to the border at Ghweifat, provides the only access route to the Western Region, including the industrial centre of Ruwais and several tourist destinations.

Payment to the winning consortium will be made via a series of equal payments spread over the 25 year period. These ongoing payments will be subject to deductions for failure to meet the prescribed performance standards and will ensure the consortium remains accountable for the operational performance of the road over the 25 year period.

In early February (2010), the Department of Transport (DoT) in Abu Dhabi received bids from three international consortia competing for the 25 year concession to upgrade, operate and maintain the motorway. Amongst the three that made bids were Irtibaat, including Abu Dhabi Commercial Bank; Construtora Norberto Odebrecht; Besix, Al Jaber, Mouchel Middle East and others; Mafraq Motorway Group, including Strabag SE; Saif Bin Darwish; Joannou & Paraskevaides, Egis Projects and others; and MTD-CSCEC Consortium, including MTD Group; China State Engineering Construction Company and Ghantoot Transport.

Schedule: Widening and surface improvement work is due to begin this year and end in 2014.

Next: Salam Street & Mina Road