PROJECTS: Dubai hotel project contract award likely in Q1 2021

Project would be located on an island off the Dubai coast

  
Image used for illustrative purpose. Workers stand on a metal scaffolding, placed on the wall of a hotel ahead of preparations for the new tourism season in Athens's Syntagma square March 8, 2015. Investors are expected to pump more money into buying, converting or building hotels in 2015 than in any year since the start of the global financial crisis, with a focus on budget and 'buzz'. REUTERS/Kostas Tsironis

Image used for illustrative purpose. Workers stand on a metal scaffolding, placed on the wall of a hotel ahead of preparations for the new tourism season in Athens's Syntagma square March 8, 2015. Investors are expected to pump more money into buying, converting or building hotels in 2015 than in any year since the start of the global financial crisis, with a focus on budget and 'buzz'. REUTERS/Kostas Tsironis

REUTERS/Kostas Tsironis

Dubai-based Wasl Hospitality and Leisure, a subsidiary of Wasl Asset Management Group, is expected to award the main construction contract for its MGM Resort, Bellagio and Aria Hotel near Burj Al Arab, Dubai, by mid of first quarter 2021, according to a source close to the project.

"The developer has invited the main construction contractors to submit commercial bids by 20 December 2020. The tender for the main contract work was issued on 10 July with the technical bid submission scheduled on 7 September 2020," the source told Zawya Projects.

The project would be located on The Island, a 26-acre man-made island off the Umm Suqeim coast, according to past media reports.

The source said the main contract is expected to be awarded by the third week of February 2021, and project completion is scheduled for first quarter of 2024.

MGM Hospitality, a wholly owned subsidiary of MGM Resorts International, had announced the signing of a management agreement for the project in March 2017.

The source estimated the total project cost at around $500 million.

The bidders for the main contract include ALEC Engineering & Contracting, Arabian Construction Company, ASGC Construction, Belhasa Six Construct and China State Construction Engineering Corporation (Middle East), officials from these companies confirmed with Zawya Projects.

The scope of work involves the construction of a beachfront hotel with 1,400 rooms and apartments, 10 villas, a theatre, retail shops, museums, a beach club and food and beverage facilities, the source said.

Brewer Smith Brewer Gulf is providing the lead, consultancy, executive architecture and construction supervision services for the project, according to the firm's website.

Bauer International is the piling and foundation contractor for the project, a second source confirmed.

(Reporting by Senthil Palanisamy; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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