MEED reported that Doha is to issue fresh tenders for the first part of the phase-3 of the USD 11 billion New Doha International Airport project by the start of July, having cancelled the original tender in March in a bid to cut costs.
Tenders were originally issued in January for the contract but the tender was withdrawn when the client, the New Doha International Airport Steering Committee, decided to retender it as a fixed price contract once the design has been completed.
Scope of airport project
USD 11billion Total cost of NDIA
USD 3 billion Cost of NDIA phase 1
590,000 sq m Built-up area of phase 1
127,000 sq m Built-up area of phase 3a
22 sq km NDIA site area
24 million Opening day capacity
50 million Total capacity on completion
NDIA=New Doha International Airport
The previous tender asked bidders to provide estimates for work on the contract based on preliminary design information. The decision was made to capitalize on the fall in raw material and commodity costs in the Gulf.
Since 2006, most contractors have enjoyed full order books and it was difficult for clients to attract serious interest from construction companies in their projects. The economic downturn and the slowdown in the project sector means that contractors and suppliers are now searching for new work, which should mean better prices for clients.
One Doha based industry source said that "The changing market conditions mean that there should be some economies by adopting this approach. The decision is not expected to affect the completion date of the project. At least 4 contracting groups will be invited to bid for the contract. The companies are the JV of the local Midmac Contracting Company and Belgium's 6 Construct; Hyundai Engineering & Construction Company and Samsung Corporation, both South Korean; and the joint venture of Qatari Diar Investment Company and France's Vinci Construction Grands Projets.
Phase-3a involves the construction of a section of the passenger terminal known as the north node. It will be a five level structure with a total floor area of 127,000 square meters. The ground level will accommodate flight transfer passengers, the first level departures and the second arrivals. The third and fourth levels will comprise a 100 room hotel.
The airport's steering committee gave the scheme's engineering, procurement and construction management contractor US based Bechtel, notice to precede on phase 3a of the airport in September 2006. The project has suffered from delays due to the client making changes to the layout of the airport, which have required additional time to design and construct.
The first two phases of the airport project are set to open in 2011, up to 2 years later than originally planned. The USD 3 billion, phase-1 was originally scheduled for completion in late 2009, with the phase-2 scheduled to finish in 2010. An award is also expected soon for the contract to build three central utility plants.
The bidders include the Saudi-based Arabian Bemco Contracting Company, Kuwait's Kharafi National and Malaysia's Muhibbah Engineering. Sky Oryx, a consortium comprising Japan's Taisei Corporation and Turkey's TAV, is the main contractor for the passenger terminal.
(Sourced from MEED)
