The Middle East's top construction contracts of June 2019
EXCLUSIVE: Contracts for megaprojects such as Etihad Rail and Saudi Aramco's Marjan and Zuluf oil fields were awarded
June 2019 was a busy month for the Middle East's construction industry, and the trend of local and international contractors – such as the UAE's Arabtec and Ghantoot; China Railway Construction Corp; India's Shapoorji Pallonji; and America's Jacobs and McDermott – snapping up important project deals continued through the first month of summer, when the region also celebrated the last days of the Holy Month of Ramadan and Eid Al-Fitr 2019.
Among the projects for which contracts were awarded in June 2019 included Expo 2020 Dubai's UK Pavilion, Ain Dubai, Etihad Rail, Barakah Nuclear Energy Plant, and Saudi Aramco's Marjan and Zuluf oil fields.
The Middle East's top construction contracts of June 2019 were:
- China's CRCC, UAE's GTGC win $1.2bn Etihad Rail Stage 2 contracts
- Saudi Aramco awards Marjan, Zuluf EPCI contract to McDermott
- Arabtec's Target wins $86m Tecnicas Reunidas deal for Bu Hasa
- Shapoorji Pallonji to build Saadiyat's $410m Qaryat Al Hidd homes
- UAE's Western Bainoona to build Phase 1 of Bahrain's Sheikh Zayed Highway
- Doosan, KHNP, and KPS win Barakah Nuclear Energy Plant contracts
- Sepco picks Jacobs for project at Aramco's Ras Al Khair shipyard
- Wade Adams wins RTA, Nakheel's $13m Al Khail Avenue road contract
- Hyundai E&C awards Ain Dubai EPCI subcontract to France's Poma
- Pico, McLaren to build Expo 2020 Dubai's Hawking-led UK Pavilion
Please note that this list is not a ranking.
1. China's CRCC, UAE's GTGC win $1.2bn Etihad Rail Stage 2 contracts
Etihad Rail approved construction contracts worth $1.2bn (AED4.4b) for civil and track works on Packages B and C within Stage 2 of the 1,200km federal railway network connecting Abu Dhabi and Dubai, as werll as Khalifa Port, Khalifa Industrial City, and Jebel Ali Port, following a board meeting chaired by Etihad Rail’s chairman, HH Sheikh Theyab bin Mohammed bin Zayed Al Nahyan.
Part of a 605km line from Ghuweifat to the Port of Fujairah on the east coast, Etihad Rail's newly awarded Packages B and C respectively span 216km and 94km, and were awarded to China Railway Construction Corporation (CRCC) and Ghantoot Transport and General Contracting Company (GTGC).
2. Saudi Aramco awards Marjan, Zuluf EPCI contract to McDermott
American contractor McDermott won an engineering, procurement, construction, and installation (EPCI) contract worth up to $250m from Saudi Arabia's state-run Saudi Aramco for its offshore Marjan and Zuluf fields.
McDermott's contract includes “the full suite of EPCI services” to relocate the control rooms in Zuluf gas oil separation plant (GOSP) 4 and Marjan GOSP 2 and 3, in addition to the fabrication of boat landings and jacket members, and the upgrade of all control systems as required.
3. Arabtec's Target wins $86m Tecnicas Reunidas deal for Bu Hasa
Target Engineering, a subsidiary of the UAE’s Dubai Financial Market-listed Arabtec Holding, won a $85.7m (AED315m) contract for Abu Dhabi National Oil Company’s (Adnoc) Bu Hasa Integrated Field Development project from Spain’s Tecnicas Reunidas in June 2019.
Target’s contract win extends its scope of work on the Adnoc Onshore project, for which it won a $141.8m (AED521m) deal in November 2018 from the Spanish firm. Consequently, the value of Target’s contract on the Adnoc project has reached $227.6m (AED836m).
4. Shapoorji Pallonji to build Saadiyat's $410m Qaryat Al Hidd homes
Saadiyat Development and Investment Company awarded a construction contract for the 16ha Qaryat Al Hidd homes, worth $410m (AED1.53bn), in Abu Dhabi to India-headquartered and Dubai-based Shapoorji Pallonji Middle East, which is led by managing director and chief executive officer, Mohandass Saini.
The project team also includes Drees & Sommer for value engineering, technical project management, cost control, and quality management; lead design consultant, B+H Architects Corp; and construction supervision consultant, Khatib & Alami.
5. UAE's Western Bainoona to build Phase 1 of Bahrain's Sheikh Zayed Highway
Bahrain’s Ministry of Works, Municipal Affairs, and Urban Planning, along with UAE-based Western Bainoona Group, launched Phase 1 of the $62m (BHD23.4m) Sheikh Zayed Highway extension project in the kingdom this June.
The project was launched following an agreement signing ceremony between Bahrain's Minister of Works, Municipal Affairs, and Urban Planning, Issam bin Abdullah Khalaf and representatives of the UAE firm, as well as the UAE Ambassador to Bahrain, Sheikh Sultan bin Hamdan bin Zayed Al Nahyan.
6. Doosan, KHNP, and KPS win Barakah Nuclear Energy Plant contracts
Nawah Energy Company – a subsidiary created by Emirates Nuclear Energy Corporation (Enec) and Korea Electric Power Corporation (Kepco) to operate and maintain Barakah Nuclear Energy Plant – signed a long-term maintenance services agreement with Korea Hydro & Nuclear Power (KHNP), alongside Kepco Plant Service & Engineering (KPS).
In June 2019, Nawah also signed a maintenance service agreement with Doosan Heavy Industries & Construction (DHIC), a subsidiary of South Korea's Changwon-headquartered Doosan Group, for the under-construction megaproject in Abu Dhabi that is now more than 93% complete.
7. Sepco picks Jacobs for project at Aramco's Ras Al Khair shipyard
American engineering company Jacobs was selected by Saudi Arabia's Sepco to deliver engineering services for Packages 4, 5, and 6 of Saudi Aramco-held King Salman International Complex for Maritime Industries and Services in Ras Al Khair.
The shipyard complex covers an area of 4.3km2, and will be the “largest in the region” when complete, Jacobs said in a statement last month.
8. Wade Adams wins RTA, Nakheel's $13m Al Khail Avenue road contract
Dubai real estate developer Nakheel awarded Wade Adams Contracting a deal to build $13m (AED114m) of roads and bridges that will become a direct route to Jumeirah Village Circle’s new retail, dining, and entertainment development, Al Khail Avenue.
Wade Adams' work will begin immediately and is due to complete in 2020.
9. Hyundai E&C awards Ain Dubai EPCI subcontract to France's Poma
French ropeway transportation company Poma Group won a 'large' engineering, procurement, construction, and installation (EPCI) subcontract from South Korea's Hyundai Engineering & Construction for Ain Dubai, the world's tallest observation wheel at 250m that will open on Meraas's Bluewaters Island in time for Expo 2020 Dubai, which kicks off on 20 October.
In a statement released in early-June 2019, Poma said the subcontract included the delivery of 48 high-tech capsules for Ain Dubai, adding that project management, engineering, and procurement work for its contract had commenced.
10. Pico, McLaren to build Expo 2020 Dubai's Hawking-led UK Pavilion
Ground has broken on the Stephen Hawking-inspired UK Pavilion of Expo 2020 Dubai, located in the Opportunity District of the next World Expo’s 4.38km2 site, with the Es Devlin-designed structure to be built by McLaren Construction and Pico.
UK companies have won a significant proportion of contracts related to the design, build, and delivery of Expo 2020 Dubai, such as Hampshire-based Serco Group, which received a contract extension earlier this year to maintain and operate the Dubai Metro – the main method of transportation for visitors to the expo site.