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The Middle East's top construction contracts of January 2020

Contractors including,CSCEC ME, Hassan Allam Holding, L&T, SNC-Lavalin Group, witnessed a successful month in January 2020

The first month of 2020 witnessed major contract wins for many companines in the Middle East [representatiotal]
Pixabay
The first month of 2020 witnessed major contract wins for many companines in the Middle East [representatiotal]

2020 marks the beginning of Expo 2020 Dubai that will open its gates to the world in less than nine months. While for many construction stakeholders it was only the start of the year with on-going construction across various projects in the region, for many contractors January 2020 kick-started with signing of major contracts.

Contractors including, China State Construction Engineering Corporation Middle East (CSCEC ME) to Egypt’s Hassan Allam Holding, India’s Larsen & Toubro (L&T), and Canada’s SNC-Lavalin Group, witnessed a successful month in January 2020, bagging major contracts worth millions of dollars.

Other firms such as Saudi Arabia’s ACWA Power, Belgian contracting heavyweight BESIX, and Petrofac also had a successful month for contract wins.

The Middle East’s top construction contracts of January 2020 were:

1. Petrofac bags $130m EPCM services contract from Oman's PDO
2. CSCEC ME wins $102m & $109m contract from Mushrif Trading & Contracting and SZHP
3. Samana Developers picks Atcon Construction as main contractor for Samana Hills 
4. Saudi's ACWA Power inks deal for 240MW Azerbaijan wind project
5. Egypt’s Hassan Allam wins Cairo Int’l Airport’s travelator contract
6. UK's Sound Energy to build, operate 120km gas pipeline in Morocco
7. L&T wins $122m oil refinery substation contract by KNPC
8. SNC-Lavalin bags FEED contract from ADNOC's Al Dhafra Petroleum
9. BESIX to build, operate Dubai Municipality’s gas-to-energy plant
10. ENGIE, Morocco's NAREVA to build 120MWp solar PV plant in Tunisia

Please note that this list is not a ranking.

1. Petrofac bags $130m EPCM services contract from Oman's PDO

London Stock Exchange-listed (LSE) oilfield services provider Petrofac has secured a $130m (OMR50.1m) engineering, procurement, construction, and management (EPCM) services contract from the Sultanate’s exploration and production firm, Petroleum Development Oman (PDO) for the Mabrouk North East Development Project.

The contract award falls under a 10-year framework agreement signed between the two companies in 2017, Petrofac said in a statement, adding that the project is planned to be carried out in phases.

UK-based firm’s scope of work for the 34-month period includes the development of 16 gas producing wells and production export to the Saih Rawl Central Processing Plant, with the project being integrated with the Mabrouk North East Line Pipe procurement project that was awarded to Petrofac in June 2019.

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2. CSCEC ME wins $102m and $109m contract from Mushrif Trading & Contracting and SZHP

China State Construction Engineering Corporation Middle East (CSCEC ME), the Middle Eastern arm of China’s state-held construction firm has bagged a $102.3m (KWD31m) infrastructure contract for Al-Shadadiya Industrial Zone.

The company said in a statement that the contract was awarded to its Kuwait Representative Office by the main contractor of the project, Mushrif Trading & Contracting Co (MTCC). Scope of work for the project involves roads, pipeline networks, and other facilities.

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In another contract, the UAE’s Sheikh Zayed Housing Programme (SZHP) awarded CSCEC ME a residential compound project contract worth $109m (AED400m) to build 380 villas in the Al Seyouh region of Sharjah.

The project will be adjacent to the recently completed National Housing Project in the area, CSCEC ME confirmed in a statement on its LinkedIn platform.

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3. Samana Developers picks Atcon Construction as main contractor for Samana Hills project

Dubai-based real estate firm Samana Developers has appointed Atcon Construction as the main contractor for the Samana Hills project.

Announced in September 2019, the $27.2m (AED 100m) five-storey Samana Hills residential project is scheduled for handover in Q4 2021.

Located opposite Dubai Hills Estate, the resort-themed Samana Hills will be spread over 100,000 sq ft and house 205 apartments, including studios, one and two bedroom apartments.

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[Image: Samana Developers]

4. Saudi's ACWA Power inks deal for 240MW Azerbaijan wind project

Saudi Arabia-based developer and operator of power generation and water desalination projects ACWA Power has inked an implementation agreement with Azerbaijan’s Ministry of Energy to develop, build, and operate a 240MW wind power project.

The power purchase agreement (PPA) for the project covers a period of 20 years on a build-own-operate (BOO) basis, and aims to diversify Azerbaijan’s energy mix by leveraging the country’s renewable energy resources.

The project is one of two independent power projects in Azerbaijan, which is looking to move away from its dependence on oil and gas.

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5. Egypt’s Hassan Allam wins Cairo Int’l Airport’s travelator contract

Egypt-based engineering, procurement, and construction (EPC) firm Hassan Allam Construction (HAC) has won a contract for the construction of Cairo International Airport’s travelator that will link Terminal Building 2 with a multi-storey garage building.

With the construction of the travelator, passengers and visitors will be able to access the airport’s busiest terminal building easily, the company said in a statement.

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6. UK's Sound Energy to build, operate 120km gas pipeline in Morocco

London Stock Exchange-listed (LSE) upstream gas company Sound Energy has secured environmental impact assessment (EIA) approval from the Ministry of Energy, Mines, and Environment in Morocco  to build and operate a 120-kilometre and 20-inch Tendrara Gas Export Pipeline (TGEP) in the North African country.

The gas pipeline will connect the proposed gas treatment plant and compression station to the Gazoduc Maghreb Europe pipeline (GME). The TGEP will cross the Matarka Commune province of Figuig and Merija Commune province of Jerada to reach the delivery point of the GME.

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7. L&T wins $122m oil refinery substation contract by KNPC

Kuwait National Petroleum Corporation (KNPC), the national oil refining company of Kuwait, has reportedly awarded a contract to Indian engineering firm Larsen & Toubro (L&T) to replace a number of substations at Kuwait’s Al-Ahmadi oil refinery.

According to Thomson Reuters, who cited Arabic newspaper Alaba, the substations contract will be worth $122m and is part of Kuwait’s multi-billion dollar ‘clean fuel project’, which will comprise expanding its refining output. The contract works will include replacing the old substations at the refinery, the report stated.

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[Image: ADNOC]

8. SNC-Lavalin bags FEED contract from ADNOC's Al Dhafra Petroleum

Toronto Stock Exchange-listed (TSE) engineering, procurement, and construction (EPC) firm SNC-Lavalin Group has secured a front-end engineering and design (FEED) services contract from Al Dhafra Petroleum, as the contract comes in line with the firm’s decision to exit lump-sum turnkey construction contracting and focus on its engineering services business.

Al Dhafra Petroleum is an Emirati-South Korean joint venture (JV) between Abu Dhabi National Oil Company (ADNOC) with Korea National Oil Corporation (KNOC) and Seoul-headquartered GS Energy that was established in 2014.

The JV, in which ADNOC owns 60%, — with remaining 40% secured by the South Korean firms — supports its goal is to tap hydrocarbon resources in the emirate and drive a more profitable upstream business in line with its 2030 Smart Growth Strategy.

As part of the nine-month agreement, the Canadian contractor will provide FEED services for Phase 2 of the Haliba field that is located in Al Dhafra Petroleum’s concession area.

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9. BESIX to build, operate Dubai Municipality’s gas-to-energy plant

Belgian contracting heavyweight BESIX, has won a contract from Dubai Municipality (DM) to build and operate landfill gas-to-energy facility for 16.5 years at Al Qusais, with the project being a part of Dubai Municipality Strategic Plan for integrated waste management.

BESIX will capture the gas from the Al Qusais landfill and treat it to produce electricity. As part of the project, methane, which is produced by the decomposition of organic fractions, will be recovered preventing it from being released in the environment.

Once completed, the facilities will comprise a network of 22 to 24-kilometre-long pipes. It will also treat up to 9,000m³ of landfill gas per hour. The facilities will have a production capacity of 12MW.

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10. ENGIE, Morocco's NAREVA to build 120MWp solar PV plant in Tunisia

Euronext-listed French electric utility company, ENGIE and Morocco-based NAREVA have won the bi to construct the Gafsa photovoltaic (PV) power plant in Tunisia, with the international tender for the project being launched by the Tunisian Ministry of Mines and Energy and STEG (Société Tunisienne de l’Electricité et du Gaz”).

The French-Moroccan consortium will develop, design, finance, and build the project, as well as operate and maintain (O&M) the 120MWp Gafsa plant over a period of 20 years from commissioning.

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