13 May 2010
The total Abu Dhabi palace project is worth Dh6 billion.

Around six companies have submitted their final bids for the estimated Dh2 billion main contract on the Presidential Palace project in Abu Dhabi, according to industry sources who preferred to remain anonymous.

"The bids are submitted and closed on the marine package, which stands at a value of around Dh200 million. The main contract is around Dh2bn and was closed on May 2," a source told Emirates Business. "The total project is valued at Dh6bn and will consist of four packages."

The current list of local and international contractors on the main contract include Saudi Oger, Six Construct with Arabtec, Al Habtoor with Murray & Roberts and Fibrex, Saudi Bin Laden and Alec with ACC. According to sources, currently Alec is bidding alone on the marine works package while Al Habtoor has partnered with Murray & Roberts.

The new complex will be built between the existing presidential palace and the Emirates Palace Hotel. It will have a total built-up area of about 220,000 square metres. The existing palace is used by the Federal Government to host cabinet meetings and other government functions.

Few months ago, an industry source had told the paper that the closing date for bids on the main building package for the Presidential Palace project in Abu Dhabi was extended to March 31 from the February 21 date, while the marine package (MA1) was extended to April 4.

The earlier prequalified contractors' list comprised the local Alec; the local/UK Al-Futtaim Carillion; Athens-based Consolidated Contractors Company; Turkey's Nurol Group; South Korea's Samsung Corporation; Oger Abu Dhabi, the local affiliate of Saudi Oger; and Saudi Binladin Group, according to a Meed report.

A number of joint venture bidders were also invited at that time and the list included the local/Australian Al-Habtoor Leighton Group with South Africa's Murray & Roberts Contractors (Middle East); a joint venture of Brazil's Odebrecht with the local/Lebanese Arabian Construction Company (ACC); and a joint venture of the local/Belgian Six Construct Abu Dhabi and the local Arabtec Construction.

US-based RW Armstrong is the project manager. The architect is the local Ewan Architectural & Engineering Consultancy while UK-based WSP is the engineering firm. The cost consultant is Bahrain-based Haj Gulf.

On September 28, the Executive Council of the Presidential Palace Project (ECPPP) at Ras El-Akhdar in Abu Dhabi had invited specialised general contractors to submit their applications for the project.

Asked on the phenomenon of a spate of tender dates being extended in Abu Dhabi, another contractor said: "If the bid time is short and construction companies don't have time to price for these complex projects, then the bid dates are extended" .

By Sona Nambiar

© Emirates Business 24/7 2010