News in brief
01 April 2020
Saipem, AHQ in deal to set up Saudi construction JV
Saipem, a leader in engineering, drilling and construction in the energy and infrastructure sector, has signed an agreement with the Saudi construction firm Abdel Hadi Abdullah Al Qahtani & Sons Company (AHQ) to set up joint venture company in the kingdom.
The Italy-based company says the joint venture will combine its engineering, procurement and construction (EPC) competences and skills with AHQ’s knowledge and experience in logistic, construction and supply chain.
The new company aims to maximise local value creation and become a first-tier player in the execution of onshore construction works as well as of onshore pipeline EPC projects.
On the new venture, Chief Operating Officer (Onshore E&C) Maurizio Coratella says: “Saudi Arabia has been a core market to Saipem from the outset and our ambition is to maintain our EPC leading role in the country. We are committed to establishing this joint venture with AHQ in a bid to harness synergies to support our major client Saudi Aramco.”
“A central feature of the partnership is the possibility to operate in compliance with the requirements of the IKTVA (In-Kingdom Total Value Add) programme launched by Saudi Aramco as an integral part of its contracts to achieve 70 per cent localisation of spending by 2021,” he adds.
L&T unit secures Oman water infrastructure work
Indian engineering and construction company Larsen & Toubro says it has secured a significant order for the design and execution of a water infrastructure project in Oman.
The contract, which is in the range of Rs10 billion to Rs25 billion ($136 million to $341 million), is for enhancing the second phase of Al Dakhiliya Water Transmission System.
A repeat order from the Omani client, it has been secured under international competitive bidding, says the Indian construction conglomerate, which adds that has been awarded to its Water & Effluent Treatment business.
The scope of work includes installation of 173 km of pipelines for water transmission with associated civil works and building of 18 reinforced concrete water storage reservoirs, five pumping stations with associated mechanical, electrical, control and instrumentation works.
A major company engaged in technology, engineering, construction, manufacturing and financial services, L&T operates in more than 30 countries worldwide and boasts over $21 billion in revenue.
Eversendai wins big contracts in Mena region
Malaysian engineering and construction firm Eversendai Corporation says it has secured projects worth RM490.1 million ($116 million) in the Middle East and North Africa (Mena) region.
The newly secured contracts include a facility control centre and an administrative building project for a key metro station in Saudi Arabia, while in Qatar, the group secured deals for two commercial towers in the heart of the Lusail Financial District.
Elsewhere in the region, Eversendai has won the contract to build a 55-storey luxurious commercial tower project in the North African nation of Morocco.
The Malaysian engineering group says its construction order book currently stands at a near all-time high of RM2.69 billion.
“Our entry into North Africa is another testament to sustaining our fundamental values and capitalising on long-established client relationships in delivering projects without compromise. We remain optimistic in the regions where we operate with many new opportunities in the pipeline,” remarks A K Nathan, the Executive Chairman and Group Managing Director.
“Our world-class expertise and our reputation as a world leader in the structural steel business with an excellent track record, has enabled us to take on opportunities to further bolster our business and bring to life the works of engineering marvels,” he adds.
Concordia in Dubai Water Canal cleaning services deal
UAE-based integrated facilities management company Concordia says it has secured the annual cleaning services contract for the 5-km-long Dubai Water Canal.
The project extedns from Sheikh Zayed to the Jumeirah Beach Road, covering across both sides of the canal.
Concordia says it has already begun partial mobilisation of the cleaning services on the site. The contract will be for an initial period of one year during which Concordia will self-deliver the service through its own BICSc certified staff.
On the win, General Manager Sanjay Bhatia says: “Concordia team is excited that it is an open space project adjacent to a water body, that has existing and ongoing construction work happening in real time. This poses a unique challenge to the team at Concordia, which itself has the potential to become a unique project management case study.”
