Fast-track jobs left on the shelf

Contractors have been put off bidding for power and desalination plant projects because of the massive cost involved as well as the pressure to complete construction within tight time-frames.

Contractors have been put off bidding for power and desalination plant projects because of the massive cost involved as well as the pressure to complete construction within tight time-frames.

According to Sayeed Mohammed Al Tayer, managing director and CEO, Dubai Electricity and Water Authority (Dewa), the size of its M-Station power project, recently won by South Korea's Doosan Heavy Industries, had to be reduced from 2,000mW to 1,200mW, and split over two phases in order to attract more bidders.

"The plant will still produce 2,000mW, but this will now be done over a two-phase construction period," he said.

 

"After we only attracted one bidder [Doosan] for the project last year, before re-tendering we found out from contractors that this was because the plant size was too big. It was also because most contractors are busy; so time is a problem, as are the financial risks associated with such a project."

Dewa plans to invest US $13.6 billion (AED50 billion) on power, sewerage and desalination plants between now and 2010.

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