Top 10: Biggest contract wins of February 2018
Construction Week counts down the biggest contract awards in the region for the month of February
10. UAE’s ADNOC awards EPC contract for $3.1bn refinery upgrade
Abu Dhabi National Oil Company (ADNOC) awarded an engineering, procurement, and construction (EPC) contract to a joint venture between South Korea’s Samsung Engineering and the Netherlands' CB&I.
The contract is for ADNOC’s $3.1bn (AED11.4bn) Crude Flexibility Project, which aims to introduce crude processing flexibility at its Ruwais oil refinery.
The initiative will reportedly enable ADNOC’s Ruwais Refinery-West complex to process up to 420,000 bpd of Upper Zakum crude, or similar crude types from the market.
This will, in turn, allow it to utilise Murban crude, which commands a higher price on global oil markets, for export sales.
In a statement, the oil company revealed that the planned modifications, scheduled to be completed by the end of 2022, will add an atmospheric residue de-sulphurisation (ARDS) unit to the refinery.
9. Salini Impregilo awarded $1.3bn Saudi Arabia National Guard contract
Italian civil infrastructure giant, Salini Impregilo, was awarded a $1.3bn (SAR4.87bn) contract by Saudi Arabia National Guard.
The project entails the delivery of housing and urban planning services, as well as the construction of 6,000 villas, across a 700ha area to the east of Riyadh (pictured).
A 160km road, in addition to secondary routes and related services, a sewage treatment plant, and above- and below-ground water systems, will also be developed as part of the project.
Salini Impregilo stated that contract works are expected to be completed in five years.
Pietro Salini, chief executive officer of Salini Impregilo, said the contract was "an important milestone" for the company's Middle East growth strategy.
He added: "This project allows us to make use of a summary of what we [will] need in the future to meet the challenges of the infrastructure sector, [which are] urbanisation, transport and urban centre connection, and water management."
8. Saipem scoops $750m EPC contract for Oman refinery project
Oil and gas contractor Saipem announced signing an onshore contract, valued at approximately $750m (OMR288.7m), for the Duqm Refinery project in Oman.
The contract covers engineering, procurement, construction, and commissioning activities under Package 3, for offsite facilities, in the framework of the refinery development, the Italy-headquartered company said in a statement.
The contract was awarded by Duqm Refinery and Petrochemical Industries Company LLC, a joint venture (JV) between the Oman Oil Company (OOC) and Kuwait Petroleum International (KPI).
Once completed, the refinery will have a capacity of around 230,000 barrels per day, Saipem added.
7. DEWA awards $300m contract for H-Station Phase 4
Dubai Electricity and Water Authority (DEWA) awarded a nearly $300m (AED1.1bn) contract for the H-Station Phase 4 construction works at Al Aweer to a Siemens and ELSEWEDY Power consortium.
The power station, which aims to meet the growing demand for electricity in Dubai, will test, supply, and commission three gas turbines with a total capacity of 815 megawatts (MW), according to a statement.
The station will be equipped with the latest control systems and technologies to reduce emissions. The turbines will be completely fuelled by natural gas.
H-Station at Al Aweer has a current total capacity of 1,996MW under climatic conditions and high temperatures of up to 50 degrees Celsius.
6. Damac awards $163m main contract for Aykon City tower
Damac Properties awarded a $163m (AED600m) contract to China State Construction Engineering Corporation (CSCEC) for the construction of a tower at its Aykon City master development.
Located near the Dubai Water Canal, the contract will cover main construction works for the tower, which consists of 53 serviced apartments.
The enabling work for the project is already complete, with main construction work estimated to use more than 11,000 tons of steel and 94,682 metric cubes of concrete.
As per Damac Properties agreement with CSCEC, the main works are expected to begin on 1 March, 2018.
5. MAG LD appoints enabling contractor for $150m project
MAG Lifestyle Development (MAG LD) appointed Dutch Foundation as enabling contractor for its MAG 318 in Dubai’s Business Bay.
Dutch Foundation has received its shoring permit for the $150m (AED550m) project, with mobilisation scheduled to start very soon. MAG 318 is set for a Q4 2019 completion.
The mixed-use development will feature 439 residential units, including studios, one- and two-bedroom apartments with private balconies.
Amenities include a swimming pool, outdoor leisure facilities, a children's area, a social activities centre, a coffee shop, and 1672.2547 of retail space.
Talal Moafaq Al Gaddah, CEO of MAG LD, commented: “We look forward to seeing the project take shape in line with our Q4 2019 completion date.
4. Ghantoot wins $22m contract to build Nakheel's St Regis club
Nakheel awarded a construction contract for The St Regis Beach Club on Palm Jumeirah.
Ghantoot Gulf Contracting has been named to build the facility through a $21.7m (AED79.7m) contract.
The St Regis Beach Club will feature dining options, and an infinity pool that spans almost 100m along Palm Jumeirah's seafront.
Due to open in 2019, the upcoming project is expected to complement The St Regis Dubai – The Palm.
The latter is a 289-key hotel that foorms part of Nakheel's 52-floor Palm Tower, which is also under construction.
3. Arada awards two contracts for Nasma Residences Phase 2
UAE developer Arada awarded main construction contracts for Phase 2 of its Nasma Residences masterplanned community in Sharjah to two companies.
The contracts were awarded to Sharjah-based Intermass Engineering & Contracting and Klampfer Middle East, a joint venture between Basma Group and KBW Investments.
The scope of works include construction of the 184 villas and townhouses that make up Phase 2 of the 464,515m2 project, which is Arada’s first community development.
Mobilisation onsite will begin in February, and handover of units to homeowners is scheduled for the first quarter of 2019.
Launched in March 2017, Nasma Residences sold out the first of the community’s five phases in less than a month, making it the fastest-selling residential real estate project in Sharjah.
In total, the project contains 800 homes, and is scheduled to be completed by the end of 2019.
2. Ghantoot appointed main contractor for Fujairah Beach project
Eagle Hills Abu Dhabi awarded the construction and infrastructure works contract for its Fujairah Beach development to Ghantoot Transport & General Contracting.
The Abu Dhabi-based private real estate investment and development company marked the milestone with an official signing ceremony for the beachside luxury hotel and residential villa development in Fujairah.
Ghantoot will be responsible for the development of the entire 38,258 m2 site, which includes the 167-key Palace Hotel, 80 luxury villas, and the associated infrastructure.
Low Ping, CEO of Eagle Hills, said: “This milestone brings us a step closer to delivering this exciting development to the Emirates of Fujairah. We have already witnessed a huge level of demand coming from investors for the new project.”
The firm has set sights for a 2019 completion.
1. First contracts awarded for Saudi's $500bn Neom city
Contracts for palaces to be built as part of the massive $500bn Neom development in Saudi Arabia have been awarded, sources confirmed in February.
The palaces for the king, crown prince, and other senior royals will be located on the Red Sea coast about 150 kilometres (95 miles) west of the city of Tabuk in the northwest of the country, according to Reuters.
The Saudi government has started awarding contracts for the business zone, with Saudi Binladin Group, the country's biggest construction firm, reportedly commissioned to build one of the palaces, sources said.
Banks have started offering financing facilities to builders of the palaces, but an official cost has yet to be revealed, the report stated.
he palaces will feature modern and traditional Moroccan-style architecture with Islamic designs and colourful ceramic tiles. The complex of palaces will include helipads, a marina and a golf course.
Some companies, including Japan's Softbank, have said they are prepared to invest in NEOM, but major, concrete business investments have not yet been announced.
The government's Center for International Communications and Neom’s management team has not yet officially revealed any further details about the contract awards.