The Middle East’s top construction contracts of October 2020

Most sectors are still recovering from the impact of the COVID-19 pandemic, including the construction industry. However, October 2020 bought good times for the region’s built environment, especially for giga projects in the Kingdom of Saudi Arabia.

It was raining contracts in October, some of the projects that stood out with their contract awards were, the 366km2 Qiddiya, AMAALA, MBR Solar Park, Riyadh Airport, Diriyah Gate, among others.

Contractors including SNC-Lavalin’s Atkins, United Engineering Construction Co (UNEC), Galfar Engineering & Contracting, Robt Stone, BESIX, Roadline Company, Hill International, Al Marwan General Contracting Company, Penspen, as well as  ILF Consulting Engineers, secured some of the major contract awards in October 2020.

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

1. SNC-Lavalin’s Atkins wins lead design contract for Six Flags Qiddiya
2. PDO awards $1bn worth contracts to NESR subsidiary, Gulf Energy
3. Schindler wins contract to modernise Riyadh Airport
4. ADNOC awards $324m contracts to optimise onshore field operations
5. Oman’s Madayn awards $6.7m infra contract to Roadline Company
6. UAE’s ILF Consulting Engineers wins Jordan petchem PMC contract
7. BESIX, Jan De Nul win $101m contract for Fujairah port expansion
8. Saudi’s AMAALA awards Tamimi Global design-build contract
9. DGDA appoints UNEC as lead contractor for Samhan Heritage hotel
10. Penspen wins engineering contract for Upper Zakhum in Abu Dhabi

Please note that this list is not a ranking.

1SNC-Lavalin’s Atkins wins lead design contract for Six Flags Qiddiya

SNC-Lavalin’s Atkins business has been awarded the lead design consultant services contract for the Six Flags Qiddiya theme park project – located within Saudi Arabia’s 366km2 Qiddiya gigaproject, the under-construction capital of entertainment, sports, and the arts in kingdom – by Qiddiya Investment Company (QIC).

Under the three-year contract, Atkins, a member of the SNC-Lavalin Group, will provide integrated lead design consultant, construction supervision, and cost management services.

The scope of work includes public realm and necessary infrastructure within the plot area along with validation of the pre-concept design, as well as the development of sustainability and environmental assessment methods, design criteria, and standards of the project.

2. PDO awards $1bn worth contracts to NESR subsidiary, Gulf Energy

NASDAQ-listed National Energy Services Reunited Corp. (NESR) has revealed that its Oman-based subsidiary, Gulf Energy, has secured contracts valued at over $1bn (OMR385m) from Petroleum Development of Oman (PDO).

The contract awards cement NESR position in the Sultanate for the foreseeable future and has opened new growth avenues to expand its product lines over the next decade in Oman and across the Sultanate.

The contracts extensions include cementing, coil tubing and stimulation, fishing and milling, and downhole tools contracts for a period of nine years, in addition to a main term of five years with two possible extensions of two years each. The contracts expire between 2030 and 2032.

Moreover, a new contract for directional drilling and turbine drilling was also awarded for a term of up to six years.

3. Schindler wins contract to modernise Riyadh Airport

Swiss-manufacturer Schindler has been awarded a contract to modernise the Riyadh Airport by carrying out fit out works with the installation of new escalators at Terminals 1 and 2, as well as the Royal Terminal of King Khalid International Airport (KKIA) in Riyadh.

The scope of the project covers provision of a reliable, heavy usage escalator system for the airport that helps transport over 28 million passengers per year. The project, to be completed by 2022, includes 74 escalators of the type Schindler 9300.

4. ADNOC awards $324m contracts to optimise onshore field operations

The Abu Dhabi National Oil Company (ADNOC) has awarded contracts worth $324m (AED1.19bn) to optimise onshore field operations and enhance efficiencies as it continues to invest responsibly to drive smart growth.

ADNOC Onshore, a subsidiary of ADNOC, awarded three contracts which will see the procurement and construction of flowlines and wellhead installations across several onshore oil fields in the emirate of Abu Dhabi.

The contracts also include the engineering, procurement, and construction (EPC) of a new bypass system to provide critical backup for the existing crude receiving stations at the Jebel Dhanna and Fujairah export terminals.

The contracts were awarded to Galfar Engineering and Contracting (WLL – Emirates) and Robt Stone (Middle East LLC).

5. Oman’s Madayn awards $6.7m infra contract to Roadline Company

The Public Establishment for Industrial Estates (Madayn) in Oman has awarded two contracts worth $6.7m (OMR2.6m) to Roadline Company to provide infrastructure, support, and necessary services to the Samail Industrial City.

The agreement signed with Roadline Company pertains to designing and implementing a dual-lane road spanning 1.3km from Al Dasur bridge intersection to the main entrance of Samail Industrial City, in addition to another dual-lane road linking the city with Al Sharqiyah Expressway.

It also includes building box culverts for rainwater drainage and lighting along the road, in addition to designing and developing an 11km-long sewage pipe linking Phase 1 and 2 of Samail Industrial City.

6. UAE’s ILF Consulting Engineers wins Jordan petchem PMC contract

UAE-based ILF Consulting Engineers has been awarded a key project management consultancy (PMC) services contract for new ammonia tanks by KEMAPCO Arab Fertilizers and Chemicals Industries Company in Jordan.

ILF has been commissioned with the project management, conceptual or tender design for the EPC contract, as well as construction and commissioning supervision.

KEMAPCO’s facilities currently have a production capacity of 175 Kt of potassium nitrate (NOP) fertiliser and nitric acid per year, which covers approximately 8% of the total global NOP demand.

7. BESIX, Jan De Nul win $101m contract for Fujairah port expansion

BESIX Group, a Belgian contractor, 50% of which is owned by Egypt’s Orascom Construction, has secured a $101m (AED371m) design-and-build contract alongside Luxembourg-headquartered Jan De Nul Group to deliver the expansion of the Port of Fujairah (PoF) in Dibba.

Six Construct, a part of BESIX Group in the Middle East, will work on the Dibba Bulk Handling Terminal Project along with Jan De Nul, with works set to be carried out over 19 months.

The PoF is one of the world’s key oil storage centres and the second-largest ship-bunkering hub in the world. The expansion plans come in line with its strategy to increase the port’s bulk handling capacity and operational efficiency, as well as improve the quality of its service.

The design-and-build contract comprises dredging the navigation channel and port basin, reclamation and shore protection, additionally constructing breakwaters, a 765m-long quay wall, foundations for ship loader rails, port infrastructure, and creating utilities and aids for navigation.

8. Saudi’s AMAALA awards Tamimi Global design-build contract

Saudi Arabia’s 3,800km2 AMAALA gigaproject — the ultra-luxury destination located along Saudi Arabia’s north western coast which is led by the Crown Prince HRH Mohammed bin Salman bin Abdulaziz Al Saud’s sovereign Public Investment Fund (PIF) — has awarded Tamimi Global Co. Ltd. (TAFGA) the design and build contract for the construction of the first stage of the AMAALA Construction Village.

The contract also includes the second and third stages of civil and infrastructure works for the village. Each stage will address the needs of 5,184 future residents at AMAALA, and upon completion will cater to a total occupancy of 15,552 residents.

The accommodations will also be home to a full range of community facilities catering to the diverse needs of on-site staff, AMAALA confirmed.

9. DGDA appoints UNEC as lead contractor for Samhan Heritage hotel

Saudi Arabia’s Diriyah Gate Development Authority (DGDA), which is overseeing the $17.1bn Diriyah Gate gigaproject, has appointed United Engineering Construction Co (UNEC) to lead construction on the five-star Samhan Heritage Hotel, located in the city of Diriyah within the province of Riyadh.

The Samhan Heritage Hotel is the first of several luxury hotels in the recently announced Diriyah development, a 7km2 cultural and lifestyle tourism destination which is an integral part of the delivery of Saudi Arabia’s Vision 2030.

Samhan Heritage Hotel will be nestled amongst the natural beauty of the Samhan district and the Wadi Hanifah, only minutes from the At-Turaif UNESCO World Heritage site.

10. Penspen wins engineering contract for Upper Zakhum in Abu Dhabi

London-headquartered engineering and project management service provider Penspen has been awarded a detailed engineering contract for crude receiving facilities at Jebel Dhana by EPC contractor Target Engineering Construction Company, a wholly owned subsidiary of Arabtec, which recently announced going into liquidation.

In a statement, Penspen said that the scope of work includes the development of facilities for unloading the Upper Zakhum (UZ) field and non-system (NS) crudes at Jebel Dhana from tankers.

The company will implement the work using the existing single point mooring (SPM-2), subsea pipeline, onshore pipeline, and gravity pipeline to the three large tanks already in place.



Saudi’s ‘Sakani’ launches ‘Elite’ project in Dammam with 869 units

The Saudi Arabia Ministry of Housing’s ‘Sakani’ programme has launched its “Elite” residential project north of the King Fahd suburb in Dammam, providing homes to Saudi citizens that can be booked electronically through the Sakani website, the Sakani mobile application, or by visiting the sales centre at the project’s headquarters.

The “Elite” project is an under-construction housing project in the kingdom’s eastern region that is being implemented as part of a public-private-partnership (PPP).

The project covers an area of approximately 500,000m2, and will include 869 villas in different models, which range in areas from 227m2 to 763m2 per unit, with prices starting from $205,000 (SAR769,000) that can be paid in monthly installments.

The Eastern Region is witnessing the implementation of 27 housing projects in partnership with real estate developers, providing more than 20,000 housing units, distributed in a number of governorates of the region with multiple designs and models, including apartments, townhouses, and villas at reasonable prices.

Saudi Arabia’s Ministry of Housing aims to increase residential ownership among its citizens to 70% by 2030. More than 58 housing projects at various stages of construction are being developed in various regions of the kingdom.

The programme provides Saudi nationals with access to residential plots, self-construction residential housing, prefabricated housing units, and under construction housing units, among other options.

The Sakani’s digital platforms provide details of the location, features, and prices of the residential units available for immediate and electronic reservation

The programme also offers Saudi citizens who own land the possibility of obtaining a 100% profit-backed real estate loan to build their own homes. It enables Saudi citizens to receive building permits within six months, start constructing within a year, and complete construction of their homes within three years, according to the state-run Saudi Press Agency.

During 2020, the Sakani programme aims to serve more than 300,000 families through various housing solutions, by enabling more than 130,000 families to move into new homes, offering Saudi families more than 90,000 plots of residential land, and constructing more than 100,000 housing units in partnership with real estate developers.


Saudi Ministry inks deal to boost investment in waste management

Saudi Arabia’s Ministry of Investment has inked a cooperation agreement with the kingdom’s National Centre for Waste Management to boost investment prospects in the waste management sector.

The agreement was signed in the presence of the Minister of Investment, HE Eng Khalid bin Abdulaziz Al-Falih, and the Minister of Environment, Water, and Agriculture, Eng Abdul Rahman bin Abdul Mohsen Al-Fadhli.

Preliminary estimates indicate that more than 53 million tonnes of waste are produced in the kingdom annually, including municipal solid waste, demolition, and construction waste, medical and industrial waste, and others, which reveals the size of the large investment opportunities that this sector promises.

In addition, the large population growth rates in the kingdom; the industrial and urban boom in all cities and regions; and the rising standards of living and increased spending power in the kingdom is expected to lead to a significant increase in the production of waste.

The Minister of Investment stressed that signing the agreement is the first step towards cooperation, and pointed out that collaborative work will help transform the challenges in the industry into investment opportunities and enhance the country’s development.

Al-Falih pointed out that the Ministry of Investment will work to strengthen the strategic partnership with the National Centre for Waste Management through this agreement to coordinate and unify efforts, find solutions to the challenges facing investment in this sector, and improve the investment environment in it in order to contribute to the recycling industry and waste management programmes.

The Minister of Environment, Water, and Agriculture explained that the signing of this agreement will contribute to achieving the strategic objectives of the waste management sector in the kingdom; activating the principle of circular investment in waste facilities management; establishing the integration work between all relevant sectors; and building capabilities for the growth of information in this field.

Saudi Arabia has carried out a number of structural reforms in the Saudi economy, and launched a group of emerging sectors, including the waste management sector that aims at integrated economic and environmental sustainability, by increasing the efficiency of waste management, establishing comprehensive recycling projects, and reducing all types of waste pollution.

According to the state-run Saudi Press Agency, the National Centre for Waste Management aims to manage, regulate, and monitor the waste management sector in the kingdom, in addition to stimulating investment in the sector and improving its quality by setting standards, controls, and technical requirements for integrated waste management activities.


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