HLG wins water infrastructure deal in Qatar

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Al Habtoor Leighton GroupAl Habtoor Leighton Group (HLG)(HLG) has been awarded a QR750 million (Dh756m) water infrastructure project to connect two Qatari communities, according to a statement on its website.

The water infrastructure project is due to start in August 2009 and will be completed by 2012.

The project, awarded to HLGHLG by Qatar General Electricity and Water CorporationQatar General Electricity and Water Corporation, will include the development of new and independent water infrastructure facilities in the Duhail and Umm Qarn communities. Al Habtoor Leighton will construct a total of six concrete reservoirs, a pump house, and associated buildings, road works and landscaping for the Duhail Water Station project.

The scope of works also includes the installation of a 15.9-kilometre water distribution pipeline.

The scope of works for the Umm Qarn Water Station project includes the construction of three concrete reservoirs, a pump house, associated buildings and road works and landscaping. A 700-metre water distribution pipeline will also be installed as part of the project.

Al Habtoor Leighton GroupAl Habtoor Leighton Group Managing Director David Savage said the award of the water infrastructure project reflected Al Habtoor Leighton Group'sAl Habtoor Leighton Group's commitment to Qatar. "We are very pleased to be awarded this project in what is a very important market for us," he said. "We currently have a number of projects in Qatar that are progressing quite well and this further builds on our reputation and presence in the Gulf region." Umm Qarn is located midway between Doha and Al Khor and the Duhail project site is located on the outskirts of Doha.

Leighton wraps up phase I of Mangrove project
Leighton International has completed demobilisation from the Eastern Mangrove project in Abu Dhabi even as Nasa Multiplex has started work on the construction of the second phase of the realty project.

A spokesperson for Leighton yesterday told Emirates Business that the demobilisation procedure was completed on August 31.

"We started the process a few months ago after we neared completion of the first phase of the construction work on the project," said the spokesperson.

Leighton was initially awarded the main contract for the development following a joint venture with Abu Dhabi's Tourism Development and Investment CompanyTourism Development and Investment Company. TDIC-Leighton Contracting was formed in December 2007 to undertake various contracts for TDICTDIC developments.

However, following the end of the joint venture, TDICTDIC renegotiated the project and awarded it to Nasa Multiplex.

"We were awarded the contract for the first phase and we have completed it successfully. The second phase contract has been awarded to Nasa Multiplex," said the spokesperson for Leighton International.

The first phase of the construction work involved enabling works and has been completed.

The TDICTDIC's Eastern Mangrove project will involve the construction of a 223 hotel rooms, 221 luxury apartments, including three-bedroom and marina apartments.

Among the leisure facilities are marina services, quaside promenade, signature spa, retail, dining and entertainment outlets.

A source from Leighton had earlier told this newspaper that it was made to submit three different bids before the project was retendered. Leighton submitted the initial bid early last year for Dh1.8 billion on a cost plus basis. In August 2008, TDICTDIC then asked the contractor to rework on the contract and submit a lump sum bid, which it did for Dh1.6bn.

In December 2008 the contractor was again asked to revise its bid, which it did for Dh1.2bn.

Meanwhile, according to another official almost 90 per cent of mid and senior level officials have been sent on long leave.

"The visas are, however, not being cancelled. People have gone on leave and are told to return only when new contracts are awarded," said the official.

In April, Al Habtoor Leighton had to 'withdraw' from a Dubai Airport construction project and said in a statement the withdrawal came after Al Habtoor Leighton and the project's other partners could not agree on contract terms.

The joint venture, which was to build the Dubai Airport Concourse 3 project, comprised Al Habtoor Leighton with a 40 per cent stake, South Africa's Murray & Roberts with 40 per cent and Japans Takenaka with 20 per cent. However, the three latest contracts are set to boost the company's prospects in the region.

"We were awarded two projects in Abu Dhabi. We secured an Dh1.4bn project at Khalifa Port, and we are part of a joint venture that will build the Dh1.8bn St Regis Hotel and Residences project on Saadiyat Island," said Al Habtoor Leighton GroupAl Habtoor Leighton Group Managing Director David Savage.

"Al Habtoor Leighton GroupAl Habtoor Leighton Group remains well positioned to take advantage of the ongoing opportunities in the Middle East, which remains a strong and solid market for us."

By Joseph George

© Emirates Business 24/7 2009