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• 
  Saudi Arabia foregoes April nuclear deadline

  2 May 2024

  

   

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  The 30 April bid deadline for nuclear technology providers to submit bids for a contract to build Saudi Arabia’s Duwaiheen nuclear power plant project has passed without any clear indication of a new tender closing date, according to two sources familiar with the project.

  “The understanding is that the tendering process requires a level of [political] stability in the region. This seems like an automatic postponement for the project tendering process,” one of the sources said.

  Companies that have been invited and are expected to bid for the contract include:

  • China National Nuclear Corporation (CNNC, China)
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Rosatom (Russia) 
  • EDF Group (France)

  The project is in the so-called bid invitation specification stage, and there are no direct negotiations between the client and the potential bidders at this stage, MEED reported in July 2023.

  Saudi Arabia plans to build a large-scale nuclear power plant facility as part of its energy diversification agenda. 

  However, the ongoing conflict between Israel, Gaza and other neighbouring countries appears to be a major contributing factor in the extended procurement timeline of the Duwaiheen nuclear plant project.

  In October, an industry source said the ongoing conflict in Gaza is not likely to help advance negotiations between the countries with a key stake in the project.

  It is understood that Riyadh is using its nuclear power plant project, along with its plan to enrich uranium sources as part of its industrial strategy, as a bargaining chip with the US government. The White House is pushing for the normalisation of relations between Israel and Saudi Arabia and opposed to uranium enrichment.

  A month before the latest conflict between Israel and Hamas started, it was reported that senior Palestinian officials were in Riyadh for talks with senior Saudi and US officials.

  According to a BBC report in September 2023, the Palestinians were negotiating for hundreds of millions of dollars and more control of land in the occupied West Bank in the event of a three-way deal between Israel, Saudi Arabia and the US.

  On 14 October, Saudi Arabia suspended the talks on potentially normalising ties with Israel, which it never officially recognised as an independent state.

  Consultants

  Duwaiheen Nuclear Energy Company received three bids for the project management consultancy package for the nuclear plant project last year.

  MEED understands the following companies submitted proposals for the contract:

  • Atkins (UK/Canada)
  • Worley (Australia)
  • Assystems (France)

  Two of the three bidders have had previous engagements with the Saudi nuclear energy project. 

  2.8GW project

  The Duwaiheen nuclear power plant is expected to be procured using a traditional design-and-build model. 

  In September 2016, MEED reported that Saudi Arabia was carrying out technical and economic feasibility studies for the first reactors, and was also looking at possible locations for the kingdom’s first nuclear project, a 2.8GW facility.

  A site at Khor Duwaiheen, on the coast near the UAE and Qatari borders, was subsequently chosen for the first project.

  In March 2022, Saudi Arabia announced the establishment of a holding company – understood to be the Duwaiheen Nuclear Energy Company – to develop nuclear power projects in the country to produce electricity, desalinate seawater and support thermal energy applications.

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  MEED's April 2024 special report on Saudi Arabia includes:

  > GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
  > BANKING: Saudi lenders gear up for corporate growth
  > UPSTREAM: Aramco spending drawdown to jolt oil projects
  > DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector
  > POWER: Riyadh to sustain power spending
  > WATER: Growth inevitable for the Saudi water sector
  > CONSTRUCTION: Saudi gigaprojects propel construction sector
  > TRANSPORT: Saudi Arabia’s transport sector offers prospects

  https://image.digitalinsightresearch.in/uploads/NewsArticle/11729932/main3634.jpg

  Jennifer Aguinaldo
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  Saudi Arabia enjoys growth conditions

  1 May 2024

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  Sources: IMF (April 2024), MEED Projects, MEED

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  MEED's April 2024 special report on Saudi Arabia includes:

  > GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
  > BANKING: Saudi lenders gear up for corporate growth
  > UPSTREAM: Aramco spending drawdown to jolt oil projects
  > DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector
  > POWER: Riyadh to sustain power spending
  > WATER: Growth inevitable for the Saudi water sector
  > CONSTRUCTION: Saudi gigaprojects propel construction sector
  > TRANSPORT: Saudi Arabia’s transport sector offers prospects

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  MEED Editorial
• 
  Developer appoints Luce Palm Jumeirah contractor

  1 May 2024

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  Taraf Properties, the real estate division of UAE-based investment group Yas Holding, has appointed Al Ashram Contracting as the main contractor to build the Luce Residences project in Dubai.

  Located on the east crescent of Palm Jumeirah, the beachfront development is a nine-storey residential building comprising 38 two-, three- and four-bedroom units.

  Local enabling contractor APCC Building Contracting won the enabling works contract for the Luce Residences in July last year.

  The piling works began in August last year. Abu Dhabi-based MZ Architects is the project consultant, and the project is scheduled to be completed by January 2026.

  Dubai real estate developments dominate the UAE’s construction market, with schemes worth over $323bn in execution or the planning phase.

  Growing demand for property in Dubai, combined with a resilient economy, has brought optimism to the emirate’s real estate market.

  As the market develops further, a broader range of opportunities is expected to emerge for both local and international contractors.

  This is in line with GlobalData’s forecast, which expects the UAE construction sector’s output to grow by 4% in real terms in 2024 and 4.2% in 2025, supported by developments in infrastructure, energy and utilities, and residential construction projects.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/11728542/main.jpg

  Yasir Iqbal
• 
  Bids submitted for Sabic hydrogen project

  1 May 2024

  

   

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  Bids have been submitted for a low-carbon hydrogen project that Saudi Basic Industries Corporation (Sabic) is due to develop in the industrial city of Ras Al Khair in Saudi Arabia’s Eastern Province.

  The project, known as the San VI Low-Carbon Hydrogen Complex, is estimated to be worth $300m.

  Bids for the project were submitted ahead of the deadline of 31 March 2024, according to information first obtained by MEED Projects.

  The following companies are understood to have submitted bids:

  • Larsen & Toubro (India)
  • JGC Corporation (Japan)
  • Samsung Engineering (South Korea)
  • Hyundai E&C (South Korea)
  • Toyo Engineering Corporation (Japan)

  When it was originally tendered in October last year, the project’s bid submission deadline was set for the end of December 2023.

  Sabic is also developing a second low-carbon hydrogen project, which is currently in the study phase.

  This project, known as the Horizon II Low-Carbon Hydrogen Complex, is also estimated to have a value of $300m.

  The scope of both projects is expected to include:

  • Construction of processing units
  • Construction of storage facilities
  • Construction of distribution units
  • Installation of hydrogen compressors
  • Construction of associated facilities

  The main contract tender for the Horizon II Low-Carbon Hydrogen Complex is anticipated to be issued by 2025.

  National oil company Saudi Aramco owns a 70% stake in Sabic.

  In October last year, Ashraf Al Ghazzawi, executive vice-president of strategy and corporate development at Aramco, said the company aims to produce 2 million tonnes of low-carbon hydrogen by 2030.

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  MEED's April 2024 special report on Saudi Arabia includes:

  > GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
  > BANKING: Saudi lenders gear up for corporate growth
  > UPSTREAM: Aramco spending drawdown to jolt oil projects
  > DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector
  > POWER: Riyadh to sustain power spending
  > WATER: Growth inevitable for the Saudi water sector
  > CONSTRUCTION: Saudi gigaprojects propel construction sector
  > TRANSPORT: Saudi Arabia’s transport sector offers prospects

  https://image.digitalinsightresearch.in/uploads/NewsArticle/11728618/main.gif

  Wil Crisp
• 
  Abu Dhabi to award Mid Island Parkway packages

  1 May 2024

  

   

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  Abu Dhabi's Department of Municipality & Transport is preparing to award the contracts for three packages for phase one of the Mid Island Parkway Project (MIPP), as part of the Plan Capital urban evolution programme.

  "The project is in the final stages of negotiation and the three packages of the first phase are expected to be awarded soon," sources close to the project told MEED.

  Phase one will start at the existing Saadiyat Interchange that will connect E12 to the MIPP and end with the recently constructed Um-Yifeenah Highway. 

  It comprises a dual main road with a total length of 8 kilometres, including four traffic lanes in each direction, two interchanges, a tunnel and associated infrastructure works. 

  MIPP phase one is further divided into packages 1A, 1B and 1C, which are being tendered separately.

  Package 1A 

  Package 1A includes a link between the existing Saadiyat Interchange and Saadiyat Island, which ends at the start of the tunnel in Section 1B.

  The scope of work includes an interface with Saadiyat Interchange and existing and ongoing projects, including Saadiyat Lagoons, Saadiyat Reserves, American Community School and New York University, as well as the installation of street lighting works, a stormwater drainage system and pump stations.

  Package 1B

  Package 1B entails the construction of a cut-and-cover tunnel to cross the Khor Laffan Channel, which is the area between the Saadiyat and Um-Yifeenah islands. The 900-metre to 1-kilometre-long tunnel will be constructed on a design-and-build basis and will tie into packages 1A and 1C. 

  Package 1C

  Package 1C covers the construction works on the Um-Yifeenah Island side. The scope of work includes the construction of bridges and underpasses, highways and utility networks.

  The project ownership has been transferred from Aldar Properties to the Department of Municipalities & Transport.

  Previously, it was transferred from Abu Dhabi General Services Company (Musanada) to Aldar Properties, and the project was included in the Abu Dhabi Investment Office's public-private partnership project pipeline.

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  MEED's May 2024 special report on the UAE includes:

  > COMMENT: Non-oil activity underpins UAE economy
  > GVT & ECONOMY: Non-oil activity underpins UAE economy
  > BANKING: UAE banks seize the moment
  > UPSTREAM: Adnoc oil and gas project spending sees steep uptick
  > DOWNSTREAM: UAE builds its downstream and chemical sectors
  > POWER: UAE marks successful power project deliveries
  > WATER: Dubai tunnels project dominates UAE pipeline
  > DUBAI CONSTRUCTION: Dubai real estate boosts construction sector
  > ABU DHABI CONSTRUCTION: Abu Dhabi makes major construction investments

  https://image.digitalinsightresearch.in/uploads/NewsArticle/11728488/main.jpg

  Yasir Iqbal