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  Bahrain receives solar IPP consultancy bids Jennifer Aguinaldo

  4 April 2025

  Three firms have submitted proposals for a consultancy services contract for a new solar independent power project (IPP) in Bahrain.

  Bahrain’s Electricity & Water Authority (EWA) plans to procure the solar IPP project located at Belaj Al-Jazaer area in the kingdom's Southern Governorate.

  According to an industry source, the planned solar IPP will have a capacity of between 160MW and 200MW.

  As in most IPPs, a financial adviser will lead the project's consultancy services team.

  KPMG Fakhro, a subsidiary of the UK-based consultancy services firm, submitted the lowest bid of BD506,000 ($1.3m). 

  Deloitte & Touche Middle East offered BD589,480 for the contract, while EY Middle East offered BD770,510.

  In January, EWA received proposals from 10 firms for a contract to establish a 44MW solar power plant at the University of Bahrain premises.

  The project will be implemented on a turnkey basis, which includes engineering, designing, manufacturing, installing and commissioning the project. The proposed project is expected to generate approximately 75 gigawatt-hours of electricity annually.

  The construction of solar power plants supports Bahrain’s 2060 net-zero carbon emissions target.

  In July last year, EWA received a single bid for a contract to design and build solar power stations in the Al-Dur area in the kingdom’s Southern Governorate. The project is expected to have a capacity of between 90MW and 100MW.

  In August 2023, EWA awarded Deft Contractors a contract to build, own, operate and maintain grid-tied solar photovoltaic (PV) power panels with a minimum capacity of 72MW in Sakhir in the south of the kingdom.

  EWA also recently prequalified bidders for one thermal independent water and power project and an independent water project. 

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  Jennifer Aguinaldo
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  First Siemens Energy turbine reaches Qassim 2 Jennifer Aguinaldo

  4 April 2025

  The first combined-cycle gas turbine (CCGT) has arrived at the Qasssim 2 independent power producer (IPP) project site in Saudi Arabia.

  According to one of the project owners, France's EDF, the first turbine has arrived at their Qassim 2 CCGT site in Saudi Arabia, marking a key milestone in the construction of the 1,800MW "decarbonised combined-cycle gas turbine project with provision for carbon capture, utilisation and storage".

  The first and the next two turbines to power the Qassim 2 CCGT plant are understood to be made in Saudi Arabia, EDF Renewables Middle East said in a social media post.

  Germany's Siemens Energy confirmed winning the contract, worth a total of $1.5bn, to supply gas turbines and other equipment to the Qassim 2, as well as another CCGT plant, Taiba 2, in June 2024. 

  Siemens Energy´s HL-class gas turbines, in combination with steam turbines and generators, will generate approximately 2,000MW of electricity at each site.

  A utility developer team led by the local Al-Jomaih Energy & Water Company (Jenwa) reached financial close for the contract to develop and operate the Taiba 2 and Qassim 2 IPPs in July 2024.

  The developer team, which includes EDF and the local Buhur for Investment, signed a 25-year power-purchase agreement with the principal buyer, Saudi Power Procurement Company (SPPC), for the projects in November 2023.

  The team subsequently appointed an EPC team, led by China Energy International Group, to work on the project.

  The EPC contractor awarded the contract to supply the project with gas turbines and other related equipment to Siemens Energy.

  Siemens Energy said last year that  Taiba 2 and Qassim 2 power plants will be initially connected to the grid in simple cycle mode in 2026 and will be permanently operated as a combined cycle power plant one year later.

  The new plants are expected to save up to 60% of carbon dioxide (CO2) emissions compared with oil-fueled power plants.

  They will also be compatible with Saudi Arabia's energy strategy, which calls for the construction of CO2 capture and storage facilities in the medium term, to enable a carbon-neutral energy supply.

  Photo credit: EDF Renewables Middle East

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  Jennifer Aguinaldo
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  Saudi Arabia launches Landbridge design tender Edward James

  4 April 2025

  Saudi Arabia Railways (SAR) has issued a tender for the lead design consultancy services contract on its long-planned Saudi Landbridge railway network.

  Interested companies have until 15 May to bid for the work, which covers the concept design and options for the preliminary and Issued for Construction (IFC) design stages on the 1,000 kilometre (km)-plus network.

  The estimated $7bn project comprises more than 1,500km of new track. The core component is a 900km new railway between Riyadh and Jeddah providing direct freight access to the capital from King Abdullah Port on the Red Sea.

  Other key sections include upgrading of the existing Riyadh-Dammam line, a bypass around the capital, and a link between King Abdullah Port and Yanbu.

  The Saudi Landbridge is one of the Kingdom’s most anticipated project programmes. Plans to develop it were first announced in 2004, but put on hold in 2010 before being revived a year later, with rights of way issues, route alignment, and its high cost being key stumbling blocks.

  More recently, the project has been under negotiation between Saudi Arabia and China-backed investors keen to develop it on a public-private-partnership (PPP) basis. However, the launch of a design tender directly by SAR suggests that Riyadh is looking at other options to develop it alongside the Chinese proposal.

   

  In December 2023, MEED reported that a team of US-based Hill International, Italy’s Italferr and Spain’s Sener had been awarded the contract to provide project management services for the project programme.

   

  If it proceeds, the Landbridge will be one of the largest railway projects ever undertaken in the Middle East, and one of the biggest globally. Based on typical design timeframes, tenders for construction are likely to be ready by mid-2026, although the question on how it will financed will need to be answered before it can proceed to the next step.

   

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  Edward James
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  Tadweer and Tribe seek nod for $1.5bn Australia project Jennifer Aguinaldo

  4 April 2025

  The first project emerging from the Comprehensive Economic Partnership Agreement (Cepa) signed between the UAE and Australia in November 2024 is making good progress. 

  The Parkes Energy Recovery (PER) project will convert waste to electricity to power homes, businesses and industries across New South Wales (NSW) on Australia's east coast.

  According to Fahad Obaid Al-Taffaq, UAE Ambassador to Australia, Parkes Energy Recovery, led by Australia-headquartered Tribe Infrastructure Group and Abu Dhabi's Tadweer Group, is kicking off its consultation process to engage with stakeholders and secure approvals for the $1.5bn energy-from-waste facility.

  "This project, a key development after signing the UAE-Australia Cepa, will power 80,000 homes, create jobs, and foster long-term, sustainable growth," Al-Taffaq said in a social media post in March.

  The proposed facility will divert an estimated 600,000 tonnes of waste annually from landfill and generate at least 60MW of energy.

  The anticipated capital investment of $1.5bn makes the project the "largest single investment in the history of Parkes", the Parkes Shire Council website said in March.

  MEED understands that councillors and the council’s Executive Management Team met with representatives from Parkes Energy Recovery on 18 March to discuss the proposed project.

  The project is expected to tap "proven technology" from Zurich-headquartered Kanadevia Inova, formerly Hitachi Zosen Inova, to turn waste into electricity.

  Tribe, Tadweer, Australian waste solutions firm HiQ and Kanadevia Inova comprise Parkes Energy Recovery.

  The Regional Growth NSW Development Corporation (RGDC) selected the team following a "market process to identify a developer, which included scrutinising the consortium and the technology offered".

  The Parkes Shire Council said in March that the consortium "will now begin the process of wide community engagement and the planning and environmental approvals process for the facility that it will design, fund, own and operate on land leased from RGDC".

  The process will include rigorous planning and environmental approvals with the NSW Environment Protection Authority (EPA) and the Department of Planning, Housing and Infrastructure (DPHI).

  Cepa objectives

  According to a legal note by UK-based law firm Watson, Farley & Williams (WFW), the Cepa free trade agreement offers Australian business major benefits that include elimination of tariffs on over 99% of exports from Australia to the UAE by value, as well as guaranteed market access in over 120 service sectors and subsectors.

  WFW also notes that Australia and the UAE have agreed on five memoranda of understanding highlighting sectors that the two countries intend to work on to facilitate and enhance their investment relationship. These are green and renewable energy, data centres and artificial intelligence (AI) projects, minerals sector; food and agriculture, and infrastructure development.

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  Jennifer Aguinaldo
• 
  Region’s hotel projects pipeline balloons John Bambridge

  4 April 2025

  

   

  This package also includes: Beaches and luxury drive regional tourism

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  Despite a somewhat lackluster 2024 performance in the region for hospitality-linked project award activity, Middle East and North Africa (Mena) contractors are eyeing more than $60bn in projects in design and bid that are set to proceed to market in the near future.

  Last year, project awards in the Mena region’s hospitality-linked construction segment declined slightly to $6.2bn, falling below the contract award values in both 2022 and 2023, while remaining above that of the three preceding years and the average for the past five years.

  Also positively, the awards value for 2024 was commensurate with the value of projects in the bidding phase this time last year, when $1.3bn-worth of projects had been awarded and $5.2bn-worth of projects were in the bidding phase. This indicates that projects in the segment are delivering and not stalling.

  Top projects

  Saudi Arabia dominated the overall project activity in the segment with a total contract award value of $4.4bn. This was followed by the UAE at $1bn and a handful of other countries with a combined $700m in value – making for a significantly skewed project activity landscape.

  The largest single project to be awarded was the $762m Keturah Creekside Resort, a Ritz-Carlton Residences scheme in Dubai that is being developed by the local Mag Property Development. The main contract was awarded to Cecep Techand Middle East, a Dubai-based contracting subsidiary of a Chinese state-owned enterprise that is generally better known for its involvement in utility projects.

  The next largest award was for the $508m Six Senses Falcon’s Nest Hotel in the Wadi Safar area of Saudi Arabia’s Diriyah gigaproject. This contract was awarded by Diriyah Company to a joint venture (JV) of Qatar’s UCC Holding and local construction group Al-Bawani. 

  Diriyah Company also let the contracts for four other hotels at Wadi Safar – Aman, Chedi, Faena and Oberoi-branded properties worth a combined $826m – to the same JV. 

  Three further Diriyah projects worth a combined $519m were awarded for the building of a Capella hotel, a Raffles hotel and a Ritz-Carlton Residences to a variety of other contractors.

  Significant gigaproject-linked contract awards were also made on the Amaala development within Red Sea Global’s project portfolio, and for a hotel complex at Qiddiya, the Riyadh-adjacent entertainment city. 

  The largest contract awarded in a third country was a $125m Avani-Tivoli hotel and residences project in Bahrain let to local contractor Cebarco by Bahrain Real Estate Investment Company (Edamah) as part of the Bilaj Al-Jazayer development.

  Project pipeline

  Looking ahead in 2025, there are $8.6bn-worth of projects in the bidding phase, with $3.9bn at the prequalification stage, $2.2bn in bid submission and $2.5bn in bid evaluation. If all of this value is awarded as expected, alongside the $410m in awards so far this year, then 2025 could turn out to be the best year for hotel project activity since 2015.

  There is also a much larger groundswell of projects in the design phase. This time last year, the value of projects in design was $15bn, but that value has swollen by 270% to $56bn in the past 12 months, led by Egypt’s launch of South Med, a 2,300-hectare tourism masterplan valued at $21bn. 

  Launched by Talaat Moustafa Group, the South Med project is situated 165 kilometres (km) to the west of Alexandria on Egypt’s northern Mediterranean coastline and 60km east of Ras El-Hekma, an area earmarked for development by Abu Dhabi following a $24bn deal for the land rights.

  Between the two masterplans, Egypt’s northern coast promises to generate a significant amount of construction work in the years to come, and developments in the area are also accelerating as the stretch of coastline grows in significance as a source of interest for investors. Local developer Sodic, which in 2021 become a subsidiary of UAE developer Aldar, launched its own plans in September to deliver a $500m Nobu hotel and residences complex just east of the Ras El-Hekma area.

  In Saudi Arabia, which accounts for $41.6bn or 50% of the hospitality project pipeline in the Mena region – including $24.4bn-worth of projects in design – the pending work is led in value terms by the $7bn in-design second phase of the Red Sea Project. There are also four packages of work worth a combined $3bn in design for the towers and podiums of the Mukaab project – the cubic centrepiece of the New Murabba development in Riyadh. Meanwhile, a further $3.8bn of projects are in design or bid – split $1.8bn and $2bn, respectively – at the Rua Al-Madinah development.

  The next-largest areas of pending hospitality projects in the region are in the UAE and Oman. The UAE’s pipeline is led by Emaar’s $1.5bn Dubai Creek Harbour Tower and a $1.3bn JW Marriott Resort & Residences planned by private developer Wow Resorts for Al-Marjan Island in Ras Al-Khaimah. In Oman, the projects are led by the $500m third phase of the tourism ministry’s Yenkit Hills development and a $500m Trump resort being developed by Omran, the UAE’s Dar Al-Arkan and the US’ Trump Organisation.

  If even a small fraction of the $56bn of hospitality-linked projects in the design phase in the region proceeds to execution in 2025, it could swell the awards total to record levels. After a somewhat sluggish performance in Q1, awards activity could pick up markedly from Q2 onwards, given the $2.5bn in projects that are already in bid evaluation and are set for imminent award.

  Beaches and luxury drive regional tourism

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  John Bambridge