Top 10 GCC contract wins - October 2016
Construction Week takes a count of the top construction contracts awarded in the GCC in the month of October
1. Alstom consortium wins Dubai Metro extension deal
The Alstom-led consortium, Expolink, also composed of ACCIONA and Gulermak, has signed a contract with Roads & Transport Authority (RTA) to design and build the extension of Dubai’s Red metro line and upgrade the system of the existing line.
The total value of the project, also called Route 2020, is $2.9bn. Alstom’s share represents 50% of the works, whereas the civil works, led by ACCIONA and Gulermark, represent the other half.
The extended line, which will connect the city to the Expo 2020 site, is expected to start commercial service for the World Expo.
The project involves the construction of a 15km-long line – of which 11.8km of elevated metro line and 3.2km underground metro line - branching off the existing red line at the Nakheel Harbour & Tower station.
The metro extension will have seven stations, including an interchange at Nakheel Harbour and a metro station at the World Expo site.
2. Turkish group wins $276m Duqm port contract in Oman
Serka Taahhut Insaat, the construction unit of Turkish conglomerate Abdali Holding, has been awarded a $276m (OMR107m) contract to build the infrastructure of the commercial quay at the Port of Duqm in Oman.
The scope of work includes the construction of roads and the development of a port operation zone, reported the Oman Observer.
The infrastructure package 2 (IP2) involves the construction of dedicated terminals along the length of the 2.2 km commercial quay that was completed in 2012 as part of the marine infrastructure development of the port.
Significantly, a pair of 1,600m-long container terminals will be created as part of the contract.
3. Saudi Aramco awards Hyundai E&C $727m contract
Hyundai Engineering and Construction (Hyundai E&C) has signed a contract to build a project for Saudi Aramco's Uthmaniyah plant for $727m (SAR2.72bn), the South Korean company said.
Hyundai expects the contract to be completed by November 2019, it said in a statement.
According to Arabian Business, sources told Reuters that Hyundai had won the deal after offering discounts to build the gas treatment facility at Uthmaniyah.
4. Aldar awards $42m Yas Acres contract to Bauer
Aldar Properties has awarded a $42.2m (AED155m) contract to Bauer Geotechnical Specialised Foundation for early construction works on its Yas Acres project.
Construction has now commenced on the $1.63bn (AED6bn) golf and waterfront development, which is located on Abu Dhabi’s Yas Island, according to the UAE-headquartered developer.
Commenting on the project’s progress, Talal Al Dhiyebi, chief development officer of Aldar Properties, said: “We are pleased to be able to award the early works package for Yas Acres within six month of launching our flagship development."
5. Saudi's Sepco awards $608,000 contract to Exova
Saudi Arabia’s Sepco Arabia Company has awarded a $608,000 (SAR2.28m) contract to UK-based testing company, Exova.
Under the terms of the contract, Exova will test and validate materials, and monitor environmental conditions during the construction of the engineering firm’s gas compressor station.
The project falls under Phase 2 of Saudi Arabia’s master gas scheme. The pipeline that will be developed as part of this initiative is expected to boost the country’s capacity by 353.9 million m3 of gas per day.
Exova will carry out materials testing on fresh and hardened concrete, along with soil classification and compaction tests.
6. Thyssenkrupp wins deal for $24bn airport in Turkey
Thyssenkrupp has secured a multimillion-euro contract to deliver 143 passenger boarding bridges (PBBs) for Istanbul New Airport.
The deal, worth a “double-digit million euro amount”, is the largest in the company’s history.
The units will be designed and manufactured using the latest technologies, including the only PBB-specific global norm, EN12312-4, according to the manufacturer.
Once the equipment has been commissioned, Thyssenkrupp will be responsible for all key maintenance tasks, with specialised staff working to ensure the optimal performance of the PBBs.
7. Habtoor Leighton Group awarded $136m Gate Avenue contract
Construction work on the Gate Avenue at DIFC will begin soon, as Habtoor Leighton Group (HLG) was awarded the $136.15m (AED500m) contract.
With Phase 1 is set for completion by the end of 2017, Gate Avenue at DIFC will heighten connectivity of the entire district.
Gate Avenue at DIFC is already worth approximately $122.5m (AED450m) with the existing truck tunnel and master plan infrastructure in place.
Combined with the new contract, this will elevate the full development cost to an estimated $270m (AED1bn), reflecting the size, scope and ambition of this project.
8. Oman's PDO awards $330m contracts to local firms
Petroleum Development Oman (PDO) has awarded three contracts worth $330m to local Omani businesses for work in the north of its operations.
The company said, in a statement, the agreements were further evidence of the success of its in-country value (ICV) strategy to build a thriving small and medium enterprise (SME) sector and retain more of the oil and gas industry’s wealth in Oman.
Under the terms of the deals, earthworks will be carried out by local community contractor Najed al Ahliya at PDO fields at Fahud, Lekhwair and Yibal; and by Sarooj Construction Co at Qarn Alam and Saih Rawl.
Additionally, Rukun Al Yaqeen (RAY) International will conduct electrical work across the entire north of the PDO concession area.
The contracts will run for four years with options to extend into the future.
9. Serco nabs extension on Emaar Downtown Dubai deal
Serco has won an extension on its operation and maintenance (O&M) contract with Emaar.
The international service company has been awarded a three-year extension to manage O&M for the Downtown Dubai Trolley System.
Emaar appointed Serco on the project in August 2014 under an early operator involvement contract to advise the company during the system's design phase.
An initial O&M contract was awarded to Serco in 2015, and has now been extended until 2019.
10. Engie and Saudi Electricity Company ink $1.2bn power plant contract
French utility company Engie has won a contract from Saudi Electricity Company (SEC) to build a 1,504MW power plant at a cost of $1.2bn in the kingdom.
The contract for the Fadhili gas project was awarded by SEC in partnership with national oil giant Saudi Aramco, according to a Reuters report.
Scheduled to be operational by the end of 2019, the Fadhili gas project will be owned 30% by SEC, 30% by Aramco, and 40% by private sector partners.
The plant is part of the Fadhili gas project which is set to become a key component of the kingdom’s master gas system, processing gas from both onshore and offshore fields.