Related Articles

• 
  Taqa and Ewec sign Dhafra OCGT and grid contracts

  3 April 2025

  Abu Dhabi National Energy Company (Taqa) and state utility and offtaker Emirates Water and Electricity Company (Ewec), have signed a 24-year power-purchase agreement (PPA) to build, own and operate an open-cycle gas turbine (OCGT) project in Abu Dhabi.

  The Al-Dhafra OCGT project will have a capacity of 1,000MW.

  Taqa will own the project 100% and will undertake the operation and maintenance (O&M) of the plant, the firms said in a joint statement issued on 3 April.

  MEED previously reported that the Italian original equipment manufacturer, Ansaldo Energia, will be supplying gas turbines for the project.

  The project's engineering, procurement and construction (EPC) contract is also expected to be formally awarded imminently to a team of South Korean and local contractors, according to industry sources. 

  In addition to the Dhafra OCGT project, Taqa Transmission, previously Transco, agreed to develop advanced power grid infrastructure to integrate the additional generation capacity to new sources of energy demand, enabling access to "reliable power with a low carbon footprint".

  According to Taqa and Ewec, both schemes will support the round-the-clock solar and battery energy storage system (bess) project, which Abu Dhabi Future Energy (Masdar) and Ewec announced in January.

  Related read: Masdar meets renewable’s moonshot challenge

  That project, comprising 5.2GW of solar photovoltaic (PV) plant and 19 gigawatt-hours of bess plant, aims to deliver up to 1GW of "baseload" power from renewable sources "24 hours a day, seven days a week".

  These projects aim to directly advance the UAE National Strategy for Artificial Intelligence 2031, and the UAE Net Zero by 2050 initiative.

  "The collaboration between Ewec, Taqa and Masdar will drive investment of around AED36bn ($9.8bn) in energy supply infrastructure in Abu Dhabi with around 75% of that to be invested in renewable and conventional power generation.

  "The remaining 25% will be invested in grid infrastructure, which will be added to the regulated asset base and will receive the regulated return," the firms said.

  The round-the-clock solar plus bess project is understood to require $6bn in investment, which implies that the BOO contract for the Dhafra OCGT is roughly $1.35bn.

  The advanced grid infrastructure will account for the remaining $2.45bn.

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  Jennifer Aguinaldo
• 
  Wood shares drop after financial warning

  3 April 2025

  Shares in the UK-based engineering company Wood Group dropped by 25% after it announced that accounting issues would delay the publication of its full-year results for 2024.

  The company, which has numerous project contracts around the Middle East and North Africa, said it had identified “material weaknesses and failures” in its financial culture within its projects business unit, following an independent review conducted by financial services company Deloitte.

  Wood said the failures included “inappropriate management pressure and override to maintain previously reported positions”, and led to instances of information withheld from Wood’s auditors.

  It also said there was an inappropriate “over-optimism and/or lack of evidence in respect of accounting judgements”.

  Wood has project contracts in Iraq, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, where the company opened its third office in Sharjah.

  The firm’s regional projects pipeline includes pre-front-end engineering and design (pre-feed) work on Saudi Aramco’s Southern and Northern Areas project in Saudi Arabia.

  It is also working on an integrated feed, detailed design, procurement support, and construction and commissioning assistance for TotalEnergies in Iraq.

  In its latest statement, Wood said: “We are committed to implementing a detailed remediation plan, including necessary follow-on actions from the review, to continue to strengthen the group’s financial culture, governance and controls.

  “This will include actions on culture, controls and organisational structure.”

  As a result of the initial report from Deloitte, Wood said:

  • A number of prior year adjustments are expected to be required for the income statement and balance sheet
  • Issues identified in a limited number of contracts in the Projects Business Unit, particularly in relation to legacy lump-sum turnkey projects
  • Issues with the application of relevant accounting standards, such as holding specific amounts on the projects balance sheet that should have been written off
  • Gaps and deficiencies within the application of controls, which relate to the monitoring and reporting of project positions within the Projects Business Unit
  • No material issues identified in our other business units (Consulting, Operations and Investment Services)

  Extensive work is needed to conclude the audit, according to Wood.

  The company has said that it is now expected to have to delay the publication of its full-year accounts and will not publish them for 2024 by 30 April 2025 as was previously expected.

  It also said that if the publication of its results is delayed, the company’s shares will be suspended from trading from 30 April 2025 as work progresses towards completion of its FY24 accounts.

  Commenting on its engagement with lenders, Wood said: “We remain in constructive dialogue with the group’s lenders regarding refinancing options and will engage with lenders in respect of the timing of our FY24 accounts, including putting in place appropriate pre-emptive waivers under our committed debt facilities.”

  Last month, Wood said it had extended the deadline for talks regarding a possible takeover by Dubai-based Dar Al-Handasah Consultants Shair & Partners Holdings (Sidara).

  The new deadline was set for 17 April.

  In its latest statement, Wood said that it remains in discussions with Sidara about a possible cash offer for “the entire issued and to be issued share capital of the company”.

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• 
  Bahrain to tender Sitra IWPP by summer

  3 April 2025

  

   

  Bahrain’s Electricity & Water Authority (EWA) is expected to issue the request for proposals for a contract to develop and operate the state’s fourth independent water and power project (IWPP) by the summer.

  The Sitra IWPP comprises a combined-cycle gas turbine (CCGT) plant that is expected to have a production capacity of about 1,200MW of electricity. The project’s seawater reverse osmosis (SWRO) desalination facility will have a production capacity of 30 million imperial gallons a day (MIGD) of potable water.

  According to a source familiar with the project, the client is expected to tender the contract to develop the Sitra IWPP by July, two months later than initially planned.

  The EWA received statements of qualifications (SOQs) from interested firms in December 2024.

  The nine companies that submitted SOQs were:

  • Al-Jomaih Energy & Water Company (Saudi Arabia)
  • Gulf Investment Corporation (Kuwait)
  • China Machinery Engineering Corporation (China)
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Acwa Power (Saudi Arabia)
  • Jera (Japan)
  • Abu Dhabi National Energy Company (Taqa, UAE)
  • Alghanim International General Trading & Contracting Company (foreign branch, Kuwait)
  • Sumitomo Corporation (Japan)

  The prequalification process for bidders is understood to have been completed.

  Sources tell MEED it is safe to assume that "most, if not all" of the companies that submitted SOQs received a notice of prequalification and are expected to advance to the bidding stage. 

  The integrated plant will replace the previously planned Al-Dur 3 IWPP. 

  It will be developed on a brownfield site and strategically located in Sitra “to ensure resource efficiency and service delivery”. It is expected to be fully operational by the second quarter of 2029.

  The state utility is procuring Bahrain’s first independent water project in Al-Hidd, along with the Sitra IWPP.

  The Al-Hidd SWRO plant is expected to have a production capacity of about 60 MIGD of potable water.

  The two build, own and operate (BOO) projects will be procured under a public-private partnership framework for 20-25 years.

  Sixty representatives from utility developers and contracting firms attended a market-sounding event in Manama on 21 October for the two separate utility BOO projects.

  The EWA’s transaction advisory team for both schemes comprises KPMG Fakhro as the financial consultant, WSP Parsons Brinckerhoff as the technical consultant and Trowers & Hamlins as the legal consultant.

  Bahrain’s first three IWPPs are Al-Dur 1, Al-Hidd and Al-Dur 2.

  MEED understands that the EWA’s Sitra IWPP will likely be Bahrain’s last CCGT plant project. Solar power is expected to account for all future electricity generation capacity.

  Bahrain aims to reach net-zero carbon emissions by 2060.

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  Jennifer Aguinaldo
• 
  Iraq breaks ground on waste-to-energy project

  3 April 2025

  Iraq broke ground on its first waste-to-energy project in the capital, Baghdad, in March.

  According to local media reports, the estimated $500m project will have a design capacity of 3,000 tonnes a day (t/d).

  It will feature three incineration lines and a 100MW steam turbine generator set.

  On completion, the facility will generate 780,000 megawatt-hours (MWh) of electricity a year.

  Prime Minister Mohammed Shia Al-Sudani witnessed the project’s ground-breaking ceremony, along with Eric Zhan, CEO of Shanghai-headquartered SUS International, reportedly one of the world’s “largest providers of waste incineration equipment and technology”.

  Haider Mohammed Makkiya, chairman of the National Investment Commission (NIC); Ziyad Ali Fadel, minister of electricity; Abdul Alawi, governor of Baghdad; Ammar Mosa, mayor of Baghdad; and representatives of Chinese-funded enterprises in Iraq attended the ceremony.

  Al-Sudani commended the officials for launching the waste-to-energy project, which is part of the government’s plans to transition to clean and renewable energy.

  Iraq’s Council of Ministers approved the WTE power generation project in Nahrawan, Baghdad, and the award of the project to SUS Environment, in February.

  The project covers a two-year construction period and a 25-year investment period.

  The cabinet also authorised the NIC to issue the investment licence and sign the contract with SUS Environment.

  NIC, in coordination with the Municipality of Baghdad, the Electricity Ministry and the Environment Ministry, received proposals for the contract between August and September last year, as MEED reported.

  The Baghdad Municipality will provide 3,000 t/d of municipal solid waste, finalise the land allocation and sign the contract within six months, the Prime Minister’s office said in early February.

  The energy purchase fee will be based on committee recommendations, covering landfill costs and environmental and public health requirements.

  It added: “Payment will be managed by the ministries of health, electricity and environment and the Baghdad Municipality for a maximum production of 100MW, with further negotiations required if production exceeds this limit.

  “Based on Cabinet Decision No. 24305 of 2024, the Ministry of Electricity is obligated to purchase the energy produced from the project. The Ministry of Finance will provide the necessary funding, and the Ministry of Electricity is authorised to sign the power-purchase agreement.”

  During the tendering proceedings, the NIC specified that power generation “from mixed solid waste must be with high-efficiency and at least fourth-generation grate incineration technology with an electrical power generation efficiency higher than 30% and a landfill rate less than 5%”.

  The project will be developed using a design-build-own-operate model.

  The NIC invited investors and developers to qualify for the WTE scheme in August 2022.

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  Jennifer Aguinaldo
• 
  Traffic drives construction underground

  3 April 2025

  

   

  On 14 February, Dubai construction was thrust again onto the global stage when Elon Musk, the world’s richest man, announced plans to explore the development of an underground Dubai Loop transportation system, along the lines of the Las Vegas Convention Centre Loop project in the US.

  Dubai has typically made headlines globally by constructing the world’s tallest towers. As the city becomes increasingly congested on the surface, it is taking some of its largest construction projects underground.

  With Musk’s backing, the Dubai Loop scheme is the most high-profile tunnelling project launched to date. It involves carving a futuristic transport system underneath Dubai. The initial phase of the project is currently being studied by Dubai’s Roads & Transport Authority (RTA) in partnership with The Boring Company, which is owned by Musk. It will cover 17 kilometres (km) and have 11 stations, with the capacity to transport over 20,000 passengers an hour.

  The project highlights the importance of expanding underground infrastructure in the Middle East region. This is mostly necessitated by the pressure that rapidly growing cities have put on existing transport and utility networks, particularly in major urban centres such as Dubai, Riyadh and Doha.

  Underground opportunities

  Projects that involve tunnelling, such as metro rail systems, underground highways and pedestrian walkways, are deemed key enablers in reducing congestion and optimising land use.

  The recently completed metro systems in Riyadh and Doha are examples of how underground rail networks can facilitate efficient urban mobility, and more such schemes are planned. 

  Without these subterranean projects, cities risk being stuck in a permanent state of gridlock, with longer commute times and decreased productivity. At the same time, tunnelling allows urban planners to integrate sustainable transport solutions, as well as large-scale utilities networks, without disturbing existing cityscapes, thereby enhancing connectivity and economic growth.

  These developments signal a major shift in engineering priorities, with regional governments investing in underground transport, sewerage and metro extensions to accommodate their growing populations and infrastructure needs.

  While the tower crane-dotted skylines of urban centres in the GCC attract attention, delivering major projects underground is an equally impressive engineering feat. Tunnelling under busy cities requires advanced excavation techniques, careful planning and coordination to avoid disruptions.

  More tunnelling work is expected as Dubai takes another significant step forward in tackling its ongoing traffic problems [with] a new metro link

  UAE tunnelling projects

  Tunnelling work forms a significant portion of the Dubai Metro Blue Line extension. Awarded in December for AED20.5bn ($5.5bn), the project includes 15.5km of underground track and five subterranean stations. When operational in 2029, the Blue Line will significantly expand Dubai’s metro capacity, linking major residential and commercial hubs.

  More tunnelling work is expected as Dubai takes another significant step forward in tackling its ongoing traffic problems by starting the procurement process for its next metro link: the Gold Line.

  Although the technical details of the project have yet to be revealed, it is expected that tunnels will form a major component of the scheme given that the new line will run through busy urban areas where there is little space to build overground. 

  The Gold Line will start at Al-Ghubaiba in Bur Dubai. It will run parallel to – and alleviate pressure on – the existing Red Line, before heading inland to Business Bay, Meydan, Global Village and residential developments in Dubailand.

  As a first step, the RTA has sent a request for proposals to companies for the lead consultancy role on the multibillion-dollar project.

  The UAE’s Etihad Rail also began a study of the tunnels required for the high-speed railway line connecting Abu Dhabi and Dubai in January. The survey works are ongoing on the Jaddaf and Dusup tunnels that will serve the high-speed rail link. Initial plans for the project include tunnelling works totalling 31km.

  Another major tunnelling project in the UAE is the $22bn Dubai Strategic Sewerage Tunnels scheme. The client, Dubai Municipality, is preparing to tender its first packages, which include deep tunnels that will stretch 42km in Jebel Ali and 16km in Warsan.

  The project will be delivered under a public-private partnership model, with international consortiums competing for contracts. Once completed, these tunnels will replace the traditional wastewater network, reducing energy consumption and enhancing long-term sustainability.

  Saudi schemes

  In Saudi Arabia, Riyadh is preparing to expand its metro network with the addition of a Line 7 and an extension to the existing Line 2.

  The total length of Line 7 will be about 65km, of which 47km will be underground. The line will have 19 stations, 14 of which will be underground.

  The project involves constructing a metro line linking the Qiddiya entertainment city development, King Abdullah International Gardens, King Salman Park, Misk City and Diriyah Gate. 

  In March, the Royal Commission for Riyadh City (RCRC) gave consortiums until 15 June to submit their bids for a design-and-build contract for the construction of Line 7.

  The planned Line 2 extension is 8.4km long, of which 7.1km is underground, and three out of its five stations will be built underground. The RCRC is expected to award the construction contract this year.

  In January, the kingdom also completed the phased roll-out of the Riyadh Metro network. The current network comprises six lines spanning about 176km, of which 74km is constructed underground.

  These numbers indicate that over 42% of the overall network is underground, highlighting the growing importance of tunnels in the kingdom’s plans to improve infrastructure in its most densely populated cities.

  Tunnelling works are also a key component of the plans to improve the stormwater drainage system in Jeddah, where the municipality is preparing for the construction of the King Abdullah Road-Falasteen Road tunnel.

  The three-year scheme involves constructing 5.3km of tunnels with an internal diameter of 7.2 metres using tunnel boring machines (TBMs) and another 3.4km of tunnels with a diameter of 3.5 metres driven by pipe jacking or TBMs.

  At the kingdom’s Neom gigaproject, city planners are looking to find solutions to many of the problems faced in existing cities and, as a result, tunnels and large-scale underground utilities corridors are being built at the beginning of the project. For example, the development’s Delta Junction tunnels will serve as a railway junction connecting the Spine infrastructure corridor with the Neom Connector rail link to the Oxagon industrial zone. 

  The project involves 26.5km of tunnelling work that will be split into a north and a south lot. The construction works are expected to begin this year as the client is evaluating the revised proposals submitted by firms in November last year.

  Kuwait Metro will feature extensive tunnelling … ensuring minimal disruption to existing roads while integrating with future transport networks

  Further tunnel projects

  Beyond the Gulf, Egypt has a long history of tunnelling projects, as it has had to deal with crippling congestion and urban overcrowding for decades. In the 1980s, work was completed on two major projects that involved tunnelling: the first phase of the Cairo Metro system and the Greater Cairo wastewater project, which involved the construction of sewage tunnels on the east and west banks of the Nile. 

  Today, Cairo’s tunnelling projects include the Cairo Metro Line 4 project. Spanning 42km with 39 stations, it involves over 20km of tunnels.

  Meanwhile, in Morocco, national railway operator L’Office National des Chemins de Fer (ONCF) is constructing a tunnel project in Rabat.

  In February, ONCF announced a 3.3km tunnel to be constructed under the Bou Regreg river at an estimated cost of MD1.4bn ($140m). The tunnel will connect the Sale and Agdal stations in an effort to alleviate traffic.

  Similarly, the long-awaited Kuwait Metro will feature extensive tunnelling to navigate the dense urban fabric of Kuwait City, ensuring minimal disruption to existing roads while integrating with future transport networks. 

  Qatar’s expansion of Doha Metro, meanwhile, requires additional underground infrastructure to connect developing areas and support the country’s vision for a comprehensive public transport system. 

  Mecca Metro, already serving millions of pilgrims, is also set for further expansion, likely involving significant tunnelling to facilitate smoother access to holy sites while overcoming geographic constraints. 

  In Oman, the Muscat Metro project is likewise expected to link key districts while preserving the city’s landscape and avoiding disruptions to arterial roads by introducing underground sections. 

  All of these projects show that tunnels will play an important role in the region’s future as it strives to create cities with more efficient and environmentally sustainable transit and utilities systems. 

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  Yasir Iqbal