Construction & Real Estate

Oman to build US$1.5bn bridge to turtle island

Oman plans to build a US$1.5 billion bridge to an island turtle habitat off the Gulf Arab state's east coast to boost tourist numbers, a finance ministry official said. The tender process will be open to international bidders and start early next year for the construction of the bridge, said the official, who declined to be identified. The bridge will be built in hopes of luring tourists to Masirah Island to see rare species of turtles like the loggerheads and greenbacks. Masirah Island is home to both species. Other turtles that nest there are the hawksbill and the Oliver Ridley. When finished, the bridge will be about 40 km long and would be among the longest sea bridges in the world.

US$750m Doha airport deal awarded

A US$750 million contract to build Phase Three of Qatar's New Doha International Airport passenger terminal complex has been awarded to a joint venture of Six Construct Qatar and Midmac Contracting Company. Six Construct Qatar is a fully-owned subsidiary of the Besix Group, which is 50 per cent-owned by Orascom Construction Industries (OCI). The joint venture will be responsible for all structural, mechanical and electrical works as well as design coordination for the airport lounge and retail area. The project is scheduled for completion during the fourth quarter of 2012. Six Construct Qatar's 50 per cent stake in the project is worth around US$375 million, OCI said. The Six Construct/Midmac joint venture is also working on a project at the Doha convention Centre and Tower awarded in 2009. Meanwhile, Bauer International Qatar has been awarded the foundation works contract for the airport's passenger rail system station box.

Jordan: A renewed commitment

The commencement of work on Amman’s Bus Rapid Transit (BRT) system in mid-July has come been widely welcomed by Jordan’s construction sector. At a time when contractors in the kingdom have kept busy with public projects due to a dearth of private sector real estate work, the government’s renewed commitment to its development agenda will offer much-needed solace to Jordanian construction companies. The decision of Prime Minister Samir Rifai to lay the foundation stone for the BRT himself illustrates the importance that the government has placed on such infrastructure projects to stimulate the economy and improve the urban environment. The US$170 million project will see the construction of three dedicated bus routes totaling 30 km of new lanes that will crisscross the capital in a bid to ease congestion and pollution. With the population expanding at a rate of 2.2 per cent per year, such measures are seen as essential to sustaining growth and improve living conditions in Amman specifically and Jordan more generally. The BRT is just the latest in a long line of land transport initiatives that are aimed at maintaining the flow of goods and people throughout the country’s major cities and transport corridors. Infrastructure projects like this have largely insulated contractors and construction companies from the worst effects of the slowdown in the national economy and the fallout from a real estate sector. For while the mood in the construction industry has been somber for more than 18 months, the figures have been defying the odds. (Source: OBG)

Gulf trade now worth US$4bn with Turkey

The Gulf countries have emerged as one of Turkey's largest buyers of construction-related materials, accounting for 25 per cent of the country's total building material exports worth nearly US$4 billion last year. And although Turkish construction materials export to these countries fell in 2009, a recovery is expected this year, which will gather momentum in 2011. The construction and engineering companies operating in Turkey and abroad render strong support to the country's building materials industry. This coupled with advanced technology, on-time delivery, quick response, high quality, use of reasonably-priced Turkish labor and international-class production facilities have made Turkish building materials competitive throughout the world, and especially sough-after in the Gulf. The country, which is the world's largest iron and steel bars exporter, saw around US$1.9 billion worth of the products go to the Gulf, accounting for 50 per cent of the total building materials exports to the region. Rebar exports alone account for an export value of US$1.5 billion.

US$43m Bahrain amphitheatre on way

Work on a new BD16.2 million (US$42.97m), state-of-the-art national amphitheatre will be completed by next year, it was announced. Cyprus-based Cybroc Company won the tender to build the project, which will feature a state-of-the-art main auditorium capable of accommodating 1,000 people as well as various multi-purpose halls. The company co-signed a memorandum of understanding for the project with the Works Ministry in Manama. The theatre will be located north of the Bahrain National Museum lake, covering an area of 11,869 sq m, said Works Minister in charge of Electricity and Water Authority (EWA) Fahmi Al Jowder. He said that the project was estimated to be completed by July 2012, in time to mark Manama as the Arab Culture Capital.

Qatari Diar, CPC settle Chelsea Barracks row

Qatari Diar, the property arm of Qatar's sovereign wealth fund, has settled with UK developer CPC Group in their dispute over a failed scheme, the companies said in late July. Qatari Diar bowed out of its plans after Prince Charles, heir to Queen Elizabeth and longstanding critic of modern architecture, wrote privately to Qatari Prime Minister Sheikh Hamad bin Jassim al-Thani last year to protest about the Chelsea Barracks project's "brutalist" contemporary design. London's High Court said last month that Qatari Diar, which is linked to the Qatari royal family, broke a clause in an agreement with CPC Group when it then shelved its proposals, and a CPC lawyer had said CPC would seek costs for the breach of contract at a future hearing. "CPC Group and Qatari Diar are pleased to announce that they have agreed a settlement of the dispute between them arising from the proposed development of the former Chelsea Barracks site," the companies said in a joint statement. "As a result, the litigation between them has been discontinued," the companies said. "CPC and Candy & Candy will no longer have any interest in, or involvement with, the former Chelsea Barracks site, which is owned entirely by Qatari Diar." They said the rest of the terms of the settlement were confidential.

Oman: 40 international firms bidding for US$194m Salalah Port contract

More than 40 international and local construction firms are preparing to bid for a contract to build a major General Cargo and Liquid Terminal at the Port of Salalah, according to Omani local media. Bids for the prestigious contract, estimated to cost US$194.78 million close on August 23, 2010. When completed in the year 2012, Salalah Port will boast a world-class General Cargo Terminal, complementing its hugely successful Container Terminal. Also as part of the project, a dedicated Liquid Terminal will be built to handle petrochemicals and other liquid products shipped into and out of the Salalah Free Zone located next door. A contract for the project is due to be awarded in the fourth quarter of this year, with a 16-month timeframe stipulated for its completion. Burgeoning exports of limestone, gypsum, cement, plastics, resin, wheat and other bulk commodities, coupled with the rising trans-shipment of humanitarian relief cargo and other goods, have made the expansion of the General Cargo Terminal (GCT) imperative to the goal of keeping the Port of Salalah competitive and attractive to international shippers.

Kuwait: Cargo construction

Kuwait occupies a strategic location at the head of the Gulf, in close proximity to the large and expanding markets of Saudi Arabia, Iraq and Iran. Over the years, the country has developed a strong reputation in the logistics sector, built on the performance of its leading companies in the sector. At present, however, its two main ports face issues with congestion and are in need of expansion should the country wish to become a leader in an increasingly competitive regional port landscape. A recent World Bank report ranked Kuwait 36th out of 155 countries in terms of the movement of goods and services. While scoring relatively high on road infrastructure (30th), its overall ranking was dragged down by a lower ranking on the quality of its ports (69th). Kuwait’s two main ports of Shuwaiba and Shuwaikh, with a combined capacity of 1.2 million twenty-foot equivalent units (TEUs), are both facing capacity limits, with shipping companies and export manufacturers located in industrial zones nearby complaining of delays and inefficiencies. Hamad Al Terkait, the president and CEO of EQUATE Petrochemical Company, recently told OBG, “Shuaiba is today overcrowded and everyone is vying for access to its limited port facilities. Access to the sea is crucial for the expansion of our industry.” Average clearance for a shipment at both ports is estimated to take three days, compared to only one day in Dubai. Furthermore, the ports are relatively shallow, which means larger ships travelling with cargo originating in or destined for Kuwait must dock in Dubai and then send the cargo via land, or vice-versa. Besides the need to serve the domestic market, Kuwait is aware of its potential to serve as a gateway for its northern neighbor, Iraq. With major reconstruction efforts and projected double-digit economic growth on the back of its underexploited hydrocarbon reserves, Iraq stands to emerge as the region’s prominent logistics growth destination in coming years. Kuwait is particularly well placed in that it already has extensive logistics experience serving the Iraqi market. This has mainly taken the form of defense contracts with US and coalition forces, which have used Kuwait as a base for military operations. Partly as a result of these contracts, and the consequent revenue and experience they have provided, Kuwait now possesses a handful of leading international logistics companies such as Agility (formerly known as PWC Logistics), KGL Holding and Mubarrad Transport. All three firms have undertaken expansion or acquisition deals and have won projects in major markets across the region. While Kuwait has undeniable competitive advantages when it comes to serving the Iraqi market, it will need to move quickly to put the infrastructure in place to make the most of them. (Source: OBG)

India's DLF to buy out Dubai World unit in JV

Indian real estate firm DLF is buying out the stake held by a property unit of debt-laden Dubai World in an equal joint venture in India for about 2 billion rupees (US$43m), the Economic Times reported in late July. A unit of DLF will buy the stake owned by Limitless Group, part of Dubai World, in Bidadi Knowledge City in southern Karnataka state, the newspaper said, citing a person with direct knowledge of the transaction. Dubai World is currently restructuring $23.5 billion in debt. Limitless said in April 2009 that it was reviewing a $12 billion residential and commercial project in India because authorities there had not bought the required land. India's DLF and Limitless won the contract to build the Bidadi development on the outskirts of Bangalore in October 2007.