meed-logo

line1 line2 line3
SIGN IN / REGISTER

Completing infrastructure ahead of time

10 December 2024

 

In late December 2023, Bahrain opened the Al-Fateh Highway project to traffic five months ahead of schedule. The highway connects key areas in Bahrain, including Manama, Mina Salman, Sitra, Muharraq, Bahrain Bay and Juffair, and opening the scheme promptly has significantly improved traffic in one of the most congested areas of the country.

“The secret to success was implementing the project in stages, combined with excellent traffic management,” says Minister of Works Ibrahim Bin Hassan Al-Hawaj. 

The successful completion of the Al-Fateh Highway project comes at an important time for Bahrain, as it continues to upgrade its road network. 

“The lessons we learned from Al-Fateh Highway are being utilised on other projects. We are working on the Muharraq Ring Road project, and that is also going to be open for traffic well ahead of time,” says Al-Hawaj.

Like Al-Fateh Highway, the Muharraq Ring Road project connects key commercial and residential areas in Bahrain, including North Muharraq, Diyar Al-Muharraq and Dilmunia.

Multifaceted approach

These projects are part of Bahrain’s comprehensive approach to alleviating road traffic.

“In 2016, we launched a study that identified projects that could help ease congestion. It proposed a multifaceted approach that covers many things, including public transport and an intelligent transport system, which introduces automation,” explains Al-Hawaj. 

“We have not implemented everything in the study, but we are working through it gradually with the Traffic Council, headed by his excellency the minister of interior, and including the Ministry of Works, Ministry of Transportation and Ministry of Housing & Urban Planning. We have regular meetings to identify challenges and then put forward suitable projects to solve them,” says Al-Hawaj. 

The Ministry of Works is responsible for maintaining, improving and expanding the road network. Its projects are split into four categories. 

The first two categories are the major projects. The first is building new roads, while the second is improving the existing road network, either by widening roads or upgrading intersections. 

Then there are the other two categories. These are maintaining the existing road network – which is a challenging task with existing traffic – and a fourth category that is known as ‘quick wins’. These small, tactical-level projects can be completed quickly to ease specific traffic black spots. 

“We have about 60 projects under implementation, valued at BD172m ($456.2m), and among these are 14 strategic projects that amount to BD117m,” says Al-Hawaj.

Upcoming schemes

The pipeline of projects under execution will soon be expanded with the addition of a fourth crossing connecting Busaiteen with Bahrain Bay. The Bahrain Tender Board opened prices for the contract to build the signature bridge crossing in late November. 

“The fourth crossing project is going to start in 2025,” says Al-Hawaj.

Looking further ahead, more road contracts will be awarded. “There are more than BD200m of future projects approved, and they will go to tender in the coming two years,” says Al-Hawaj.

There are more than BD200m of future projects approved, and they will go to tender in the coming two years

One of the roads that suffers from high traffic volumes is Sheikh Jaber Ahmed Al-Sabah Highway, from Umm Al-Hassam to the Alba intersection. 

“This is our biggest project in the future. There will be four lanes in each direction, and all the intersections will be free-flowing traffic either by underpass or flyovers. We will get rid of all the traffic lights,” says Al-Hawaj. 

The project will move into the construction phase next year with preparation works. 

“One of the main lessons from the Al-Fateh Highway project is to free the construction zone from any services before construction starts. It will take some time to redirect the existing utilities, and then we will immediately go into construction,” says Al-Hawaj.

Another upcoming major scheme is the Bahrain Northern Link Road (BNLR) project that will run along the northern coast of Manama from the Bahrain Bay area in the east to Madinat Salman in the west. Initial estimates suggest that the scheme, which will have sections onshore and offshore, could cost BD500m to deliver. 

Together with the fourth crossing project and the Northern Muharraq Ring Road, the BNLR scheme will create a new road corridor along the northern edge of Bahrain. 

Unlike other road projects in Bahrain, the BNLR will be delivered as a public-private partnership project. Dar Al-Handasah was selected for the project’s feasibility study in 2022. 

Away from roads, another major area of responsibility for the Ministry of Works is sanitation. At present, 86% of premises in Bahrain are connected to the sanitation network and sewage treatment plants (STPs), and there are plans to connect the remaining 14%.

STP capacity is also increasing. The capacity of Bahrain’s largest plant at Tubli is being doubled, and there is an expansion under way for the STP at Muharraq. The Sitra STP is also being upgraded, using technology from UK company Bluewater, which allows for capacity to increase without adding to the footprint of the site. 

A greenfield project is also planned. “We have a new plant coming soon at Khalifa City,” says Al-Hawaj. 

“We are finalising the drawings, and a tender is expected to be issued in the first quarter of 2025. We will start with 20,000 cubic metres a day, but the ultimate capacity will be 40,000 cubic metres a day.” 

https://image.digitalinsightresearch.in/uploads/NewsArticle/13100800/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Adnoc-Covestro deal decision due in May

    2 April 2025

    EU antitrust regulators are expected to decide by 12 May whether to clear or extend the review of Abu Dhabi National Oil Company's (Adnoc) €15.9bn ($17.1bn) takeover of German chemicals producer Covestro.

    The 27-country EU competition enforcer can either clear the deal with or without conditions, or open a four-month investigation after its preliminary review, a Reuters report said, citing a filing on the European Commission's website.

    It was reported in October last year that Adnoc International, the overseas business arm of Adnoc Group, had signed an investment agreement Covestro in which it made a takeover offer of €14.7bn.

    Adnoc International said at the time that it will launch a voluntary public takeover of €62 ($69) a share, which implies an equity value for Covestro of about €11.7bn and represents a premium of about 54% to Covestro’s closing price on 19 June, the day before the first media coverage regarding a potential transaction.

    Leverkusen-headquartered Covestro’s supervisory and management boards supported the takeover offer.

    In addition, Adnoc International will subscribe to a 10% non-preemptive capital increase of €1.17bn in Covestro at the closing of the transaction.

    The offer will be subject to a minimum acceptance level of 50% plus one share and customary closing conditions, including merger control, foreign investment control and EU foreign subsidies clearances, the companies said.

    The agreement between Adnoc International and Covestro, which runs until the end of 2028, contains several obligations on the part of the Abu Dhabi energy producer, including maintaining Covestro’s existing business activities, corporate governance and organisational business structure.

    Adnoc approached Covestro about a potential takeover in September 2023, but initial advances were rejected, leading the Abu Dhabi state enterprise to raise the value of its offer.

    Adnoc’s initial approaches included a takeover price of €55 and then €57 a share, Bloomberg News reported at the time.

    Covestro’s expertise lies in chemicals recycling, which is key for the future of the energy industry and a target area for Adnoc.

    Russia's invasion of Ukraine in 2022 slashed deliveries of natural gas to Germany, resulting in a crisis that gripped the German chemicals industry, which accounts for about 5% of the country’s GDP.

    Precedent

    In September, the European Commission approved the takeover of the telecommunications assets of Czech investment group PPF by UAE telecoms group e&.

    Sovereign wealth fund Emirates Investment Authority holds a 60% stake in e&. The commission's review concluded that the “subsidies received by e& did not lead to actual or potential negative effects on competition in the acquisition process”.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13602719/main.jpg
    Jennifer Aguinaldo
  • Edgnex acquires Nordic data centre developer

    2 April 2025

    Register for MEED’s 14-day trial access 

    Edgnex, a subsidiary of Dubai-based property developer Damac, has acquired Helsinki-headquartered data centre-focused real estate developer Hyperco as part of its European expansion strategy.

    Damac announced the acquisition on 31 March.

    Hyperco operates data centres in Finland and Sweden, "leveraging the region’s renewable energy sources, mature digital ecosystem and high connectivity", local media reports said.

    Hyperco's three co-founders and existing team will continue to lead operations through the next phase of growth, according to a statement by the company.

    Hussain Sajwani, founder of Damac Group, said his firm plans to "build a significant future capacity in the Nordics and establish a strong foothold in the market".

    Edgnex’s recent European activities include a €150m ($161.9m) joint venture in Greece with Public Power Corporation to develop a 12.5MW facility, expandable to 25MW, and a €400m commitment to build a 40MW data centre in Madrid, Spain.

    In January, Sajwani pledged $20bn to develop data centres in the US.

    Sajwani and then US President-Elect Donald Trump announced the plan on 7 January in Florida, a day after the US Congress certified Trump as the winner of the 2024 presidential election.

    The project’s initial phase covers establishing data centres in Texas, Arizona, Oklahoma, Louisiana, Ohio, Illinois, Michigan and Indiana.

    It was previously reported that the Dubai-based property developer plans to develop $1bn-worth of data centres in countries in Europe, Asia, Africa, the Middle East and the Commonwealth of Independent States.

    Edgnex is constructing two data centre facilities in Dammam and Riyadh in Saudi Arabia that will deliver 55MW in 2025. There are also plans for a data centre in Amman, Jordan, and another in Turkiye in partnership with Vodafone.

    In May, Damac announced its entry into the Indonesian market with plans to build a 15MW data centre in Jakarta. The first construction phase for the facility is scheduled to be completed in the fourth quarter of 2025.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13602668/main1456.jpg
    Jennifer Aguinaldo
  • Developers prepare Saudi round six solar IPP bids

    2 April 2025

     

    Register for MEED’s 14-day trial access 

    Prequalified developers are forming teams to bid for the contracts to develop solar farms under the sixth round of Saudi Arabia's National Renewable Energy Programme (NREP).

    MEED understands that bids are due for the four solar photovoltaic (PV) independent power projects (IPPs) by 1 June.

    The four solar IPPs have a combined capacity of 3,000MW.

    A 1,400MW solar PV IPP will be located in Najran, while the smallest – the 400MW Al-Sufun solar IPP – will be in Hail.

    The 600MW Samtah and 600MW Al-Darb solar IPPs will be located in Jizan, a region that has been placed under security-related travel alerts by some countries and international firms.

    Most of the prequalified bidders participated in site visits, which Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), conducted in late January.

    SPPC prequalified 16 companies that can bid as managing and technical members for the solar PV contracts. These are:

    • Abu Dhabi Future Energy Company (Masdar, UAE) 
    • Alfanar Company (local)
    • EDF Renewables (France)
    • Kahrabel (Engie, France)
    • FAS Energy (local)
    • Jinko Power (Hong Kong)
    • Korea Electric Power Corporation (Kepco, South Korea)
    • Marubeni Corporation (Japan)
    • Nesma Renewable Energy (local)
    • SPIC Hunaghe Hydropower Development (China)
    • Sumitomo Corporation (Japan)
    • TotalEnergies Renewables (France)
    • AlJomaih Energy & Water (local)
    • Sembcorp Utilities (Singapore)
    • AlGihaz Holding Company (local)
    • Korea Western Power Company (Kowepo, South Korea)

    The following five companies have been prequalified to bid as managing partners:

    • Jera Nex (Japan)
    • Power Construction Corporation of China (PowerChina)
    • China Power Engineering Consulting Group International Engineering (China)
    • Posco International (South Korea)
    • Saudi Electricity Company (SEC, local)

    Round six of the NREP will have a total combined capacity of 4,500MW, including the 1,500MW Dawadmi wind farm, for which a separate set of bidders has been prequalified.

    SPPC issued the prequalification request for round six of the NREP in September last year and received statements of qualifications from interested developers and developer consortiums the following month.

    SPPC is responsible for the pre-development, tendering and subsequent offtaking of the energy from the projects.

    US/India-based Synergy Consulting is the client's financial adviser for the NREP sixth-round tender. Germany’s Fichtner Consulting and US-headquartered CMS are the technical and legal consultants, respectively.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13602412/main0154.jpg
    Jennifer Aguinaldo
  • Mitsubishi Power confirms Rumah 1 and Nairiyah 1 deal

    2 April 2025

    Register for MEED’s 14-day trial access 

    Mitsubishi Power, part of Japan’s Mitsubishi Heavy Industries, has confirmed it has received two orders to supply six M501JAC gas turbines for the Rumah 1 and Al-Nairiyah 1 power generation projects in Saudi Arabia.

    Rumah 1 is located in the Central Region in Riyadh and is part of the previously planned Riyadh Power Plant 15. Nairiyah 1 is located in the Eastern Region.

    The scope includes the supply of generators and auxiliary equipment, Mitsubishi Power said in a statement.

    MEED exclusively reported that the Japanese original equipment manufacturer had been selected to supply its gas turbines for the independent power project (IPP) in November last year.

    A consortium comprising the local Saudi Electricity Company (SEC) and Acwa Power and South Korea’s Korea Electric Power Corporation (Kepco) won the contract to develop the Rumah 1 and Al-Nairiyah 1 IPP the same month.

    The power plants will deliver a combined 3.6GW, accounting for nearly 2.5% of the national grid’s capacity.

    The M501JAC turbines will be assembled at Mitsubishi Power Saudi Arabia’s Dammam factory.

    The 17,730 square-metre facility also provides services for gas turbine components.

    According to Mitsubishi Power, the plant features "a majority of Saudi employees, in line with the firm’s Saudi National programme".

    China’s Sepco 3 and South Korea's Doosan Enerbility will undertake the engineering, procurement and construction (EPC) contract for the projects, as MEED reported.

    The SEC, Acwa Power and Kepco team offered a levelised electricity cost (LCOE) of $cents 4.5859 a kilowatt-hour ($c/kWh) for Rumah 1 and 4.6114 $c/kWh for Al-Nairiyah 1.

    Acwa Power said that the two IPPs will require a combined investment of approximately SR15bn ($4bn). The IPPs are expected to reach commercial operations in Q2 2028. 

    Saudi Power Procurement Company (SPPC) received bids for the contracts for four thermal IPPs – the other two being the similarly configured Rumah 2 and Al-Nairiyah 2 – in August last year.

    The four power generation facilities will be developed using a build, own and operate model over 25 years. 

    SPPC’s transaction advisory team for the Rumah 1 and 2 and Al-Nairiyah 1 and 2 IPP projects comprises US/India-based Synergy Consulting, Germany’s Fichtner and US-headquartered Baker McKenzie. 

    Photo credit: Mitsubishi Power (for illustrative purposes only)

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13599792/main4910.jpg
    Jennifer Aguinaldo
  • Iraq approves two major energy project contracts

    2 April 2025

    Register for MEED’s 14-day trial access 

    Iraq’s Council of Ministers has approved two major energy contracts that form part of the $10bn Gas Growth Integrated Project (GGIP), according to a statement from the prime minister’s office.

    French oil and gas company TotalEnergies and its partners are developing the GGIP.

    TotalEnergies is the main operator of the GGIP. Basra Oil Company (30%) and QatarEnergy (25%) are the other stakeholders.

    One of the two awarded contracts is focused on the development of the Ratawi gas field and the other is focused on the Common Seawater Supply Project (CSSP), which will transport seawater to oil fields for injection to increase production.

    The statement said that Iraq's Council of Ministers had approved the award of tender CSSP-ITT-06 from state-owned Basra Oil Company to China Petroleum Pipeline Engineering Corporation (CPP).

    The contract awarded to CPP is for the pipeline package, which involves the construction of a seawater pipeline.

    MEED reported that CPP was a frontrunner to win the pipeline package in May last year.

    CPP is a subsidiary of China National Petroleum Corporation and the primary builder of pipelines in its home country.

    The pipeline package is one of two major packages in the CSSP. The other major package focuses on developing a water processing facility.

    The pipeline contract awarded to CPP will be executed over 54 months, including 42 months for engineering, procurement and construction and 12 months for operation, maintenance and training.

    The second contract that has been approved is for a planned gas processing plant at the Ratawi gas processing complex project.

    The Ratawi field is also sometimes called the Artawi field.

    This contract has been awarded by Iraq’s state-owned South Gas Company to China Petroleum Engineering & Construction Corporation (CPECC).

    In January, MEED revealed that CPECC had emerged as the frontrunner to win the contract, which is estimated to be worth about $1.7bn.

    When commissioned, the planned facility is expected to process 300 million cubic feet a day of gas. Its capacity is expected to double when a second expansion phase becomes operational in the future.

    The Ratawi gas processing facility project aims to improve Iraq’s electricity supply by capturing gas that would have otherwise been flared at several oil fields, including:

    • Luhais
    • Majnoon
    • Ratawi
    • West Qurna 2
    • Tuba

    Large gas volumes are flared from these oil fields, causing significant environmental damage. Collecting and processing flared gas will generate increased hydrocarbons revenues and reduce ecological damage.

    The gas tapped and processed from the oil fields will then be used to supply power plants, helping to reduce Iraq’s power import bill.

    As well as supplying Iraq’s national gas network to generate electricity, the Ratawi gas processing complex will increase the production of gas products, including liquefied petroleum gas (LPG) and condensates.

    US-based consultant KBR has performed the front-end engineering and design work on the project.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13587414/main3428.jpg
    Wil Crisp