Top 10 GCC contract wins - April 2017
A look at some of the biggest deals in the GCC construction industry throughout April 2017
1. SNC-Lavalin wins FEED deal for Saudi Aramco plant
Canadian contractor SNC-Lavalin has been awarded an engineering and project management contract by Saudi Aramco.
The contract has been awarded as part of the Berri Increment Program.
SNC-Lavalin's scope of work includes front-end engineering design (FEED) for a 250 MBCD [thousand barrels of oil per calendar day] gas oil separation plant at the Abu Ali Gas Plant.
The contract also covers facilities at the Khursaniyah Gas Plant, where 40 million barrels per day (MBD) of hydrocarbon condensate will be processed as part of the Berri Increment Program.
Aramco may also use SNC-Lavalin's technical support services for the project's construction phase as part of the contract.
FEED works are expected to commence shortly, and pre-construction stage services are expected to be completed by August 2018.
2. UAE: Emrill wins Dubai Healthcare City FM contract
Dubai Healthcare City (DHCC) has awarded an integrated facilities management (IFM) contract to Emrill.
Under the terms of the deal, the UAE-headquartered facilities management (FM) company will provide housekeeping and technical mechanical, electrical, and plumbing (MEP) services, and preventative maintenance, for DHCC-owned buildings and infrastructure.
The contract, which covers both DHCC free zone areas, will extend until the end of 2019.
Alex Davies, managing director of Emrill’s IFM business, said: “We are delighted to be awarded this prestigious contract with Dubai Healthcare City.
“We are committed to delivering innovative technologies and ideas that extend far beyond the standard FM service.”
3. South Korean firm wins Qatar 2022 design contract
Heerim Architects and Planners Co, a firm headquartered in Seoul, has been awarded the design and engineering services contract for the Fifth Precinct Stadium in Al Thumama, Qatar.
The South Korean firm released the information via a stock exchange statement, saying that it has signed a contract worth $16.2m (KRW18.38bn), according to Zawya.
Quoting the statement filed by the firm with the Korea Exchange, Zawya reported that the contract was awarded by the joint venture (JV) formed by Qatar’s AlJaber Engineering (JEC) and Turkey’s Tekfen Construction.
The JV company is the main contractor for the 40,000-seat stadium, which has a 2020 target completion date and will serve as a venue for FIFA World Cup matches up to the quarter-final stage.
4. India-based Punj Lloyd wins $48m Saudi contract
India-based engineering and construction group Punj Lloyd said it has secured an EPC contract worth $47m from Yanbu Aramco Sinopec Refining Company (Yasref) for its project in Yanbu, Saudi Arabia.
The ‘Clean Fuels Interfacing Facilities Project’ has been awarded to the group's subsidiary, Dayim Punj Lloyd.
The project objective is to interface Yasref with the Aramco Yanbu Refinery to supply low sulphur clean transportation fuel such as diesel and gasoline for domestic distribution, the company stated.
In addition, the pipeline system will also contain provision to transport Yasref refined products to the western regional pipeline hub.
Dayim Punj Lloyd’s scope of work includes construction of two new pipeline systems for diesel and gasoline, a dedicated custody metering system for each refined product, a new analyzer to be installed inside Yanbu Refinery, and a new red/green dye injection for gasoline to be installed in the Yanbu Refinery premises.
5. Oman: $100m deal signed to build beachfront villas
Al Khalili Group and real estate investment experts Tibiaan Properties are collaborating on a project portfolio of $100m in Oman that will include the construction of the luxury beachfront Azaiba project, due for completion later this year.
A Memorandum of Understanding (MoU) was signed between Al Khalili Group and real estate investment experts Tibiaan Properties on the project portfolio which will include high-end residential, commercial and retail components, according to the Muscat Daily.
The project will include 67 villas and private swimming pools to be completed in Phase 1 by October 2017.
Sheikh Qais al Khalili, chairman of Al Khalili Group said: “We are inspired by the tremendous possibilities of this collaboration, our first build to sell venture.
6. Enviroserve signs $32m Dubai Wholesale City deal
Enviroserve UAE, a waste and environmental solutions provider, has signed an agreement with Dubai Wholesale City for the construction of a 2.11ha electronics and specialised waste recycling plant at Dubai Industrial Park, within Dubai Wholesale City.
Backed by the Swiss Government Export Finance Agency, the $32.6m (AED120m) project represents one of the largest foreign direct investments in the field of environmental management in the UAE.
The facility will serve as the region’s largest centre of expertise for electronic waste management in the Middle East.
The first plant-of-its-kind plant will recycle the entire range of end-of-life electrical and electronic equipment ranging from consumer and industrial to commercial and military appliances, such as air conditioners, batteries, IT equipment, household appliances, military avionics, and mobile phones.
In addition, it will recycle specialised waste material, such as aerosol cans and lightbulbs, to become the only dedicated refrigerant reclaim facility in the UAE.
7. Saudi-Korean JV signed for $50m chemical plant
A new joint venture has been signed between Saudi and Korean firms to establish a $50m manufacturing plant in PlasChem Park in the kingdom’s Jubail Industrial City 2.
The JV was agreed between Maydan Industry for Industrial Development & Investments Co., Ahmad Kassim Al-Amoudi Group Co. Ltd., and the South Korean technology company SFC to establish Surfactant Detergent Company Ltd. (SDC), according to the Saudi Gazette.
The new facility will produce a range of surfactants, which are specialty chemicals used in the production of detergents and other applications.
Chairman of Maydan Industry, Abdulrahman Al-Swailem, said “This new venture is inspired by the Kingdom’s Vision 2030 which seeks to diversify the economy. The planned manufacturing facility is expected to be 40,000 metric tons with an approximate capital expenditure of SR189m ($50m).”
The JV follows a long-term supply agreement for Ethylene Oxide (EO) and Propylene Oxide (PO) signed previously between Sadara and the SDC partners.
8. Imdaad and Emarat ink waste collection contract
Imdaad has entered into a three-year-agreement with Emarat, a suppliers of petroleum products in the UAE, to deliver sustainable and integrated general waste collection services.
The scope of the contract includes Emarat’s 47 stations, atrium building, head office, central workshop, and staff accommodation.
Mahmood Rasheed, chief operating officer at Imdaad, said: “We look forward to working with oil industry giant Emarat, whose commitment to its customers, society, and the environment we fully applaud and share.
“Our is another opportunity to showcase our capability to deliver facilities management (FM) services according to the unique and challenging demands of this sector.”
9. Salini Impregilo JV signs $255m Saudi desal deal
A joint venture between a division of Italy’s Salini Impregilo and Spain’s Abengoa has signed a $225m agreement with ACWA Power for the development of a desalination plant in Shuaiba, Saudi Arabia.
The Salini unit, Fisia Italimpianti, and Abenoga will design and build the plant for ACWA Power on behalf of the Saline Water Conversion Corporation, the Saudi state-owned water utility company.
Located in the Shuaiba area on the western coast of Saudi Arabia, the plant will use reverse osmosis technology to deliver up to 250,000m3 of water per day, and supply potable water to more than one million residents in the cities of Mecca, Jeddah and Taif.
The joint venture has signed a ‘limited notice to proceed’ agreement for the preparatory work, and expects to sign the ‘full notice to proceed’ by July 27. The plant handover is scheduled for May 2019.
This order confirms Fisia Italimpianti as one of the world’s leading builders of large desalination plants, with a combined built and projected capacity of more than four million cubic metres per day across both thermal and reverse osmosis.
10. Salini wins $300m refurb contract for Riyadh icon
Salini Impregilo has won a $300m contract from Al Khozama Management Company to refurbish the Al Faisaliah Mall, which is part of the Al Faisaliah Centre with its iconic skyscraper in central Riyadh.
The Al Faisaliah District Redevelopment Project includes a $53m refurbishment of the Al Faisaliah Mall, as well as demolishing the adjacent Seyahiah buildings to make way for the construction of an extension to the existing retail complex.
The mall will be remodelled and upgraded section by section to ensure that it remains open throughout the period of the work, which is expected to be completed in 16 months. The entire project, including the extension, will be finished in three years.
The contract is part of $1.81bn worth of projects already awarded to Salini Impregilo this year, and announced with the publication of the Group’s preliminary 2016 results.
Salini Impregilo has been involved on a number of projects in Saudi Arabia, including on Line 3, the longest line at 42km, of the Riyadh Metro. The contractor completed the tunnel excavation work for this line in January.