Tunnelling projects take the front seat
22 August 2023The economic and energy diversification programmes of countries in the Middle East and North Africa have provided an impetus for physical infrastructure projects such as tunnels, which have become emblematic of the region’s transition towards a more interconnected and sustainable future.
In some cases, tunnelling projects in the region also extend beyond their utilitarian functions – in addition to decongesting cities and improving water networks, they embody diplomatic overtones and regional cooperation.
Some of the biggest tunnelling projects in the Middle East have historically been executed in the GCC, especially in Saudi Arabia and the UAE. These two countries also promise the most robust future project pipelines.
Neom tunnels
In line with its strategy of redefining sustainable urban living, the integration of tunnels is key to shaping the landscape at Neom in Saudi Arabia.
Tunnels are core components of the integrated transportation network at Neom's The Line, Oxagon and Trojena developments.
According to regional projects tracker MEED Projects, about $6.9bn-worth of schemes with tunnel components are at the pre-execution and execution phases at Neom.
Tunnel projects worth over $4.6bn are in the execution phase. These include the backbone infrastructure tunnels for The Line project, which involve constructing two railway tunnels in parallel using the drill-and-blast method, one for passengers and the other for goods.
In June 2022, Neom awarded $2.7bn-worth of main contracts to the joint venture of Shibh al-Jazira Contracting, China State Construction Engineering and FCC Construction for lots two and three of this scheme.
A separate contract worth about $1.8bn was awarded by Neom for lots four and five to a team of Archirodon, Samsung Engineering and Hyundai Engineering.
The pipeline of projects with tunnel components at Neom is worth about $2.3bn. Some of the major upcoming projects include the time-travel tunnel and funicular railway at Trojena and a package of works for the Spine railway network at The Line. The main contract bids for both packages are in the evaluation phase.
Other upcoming projects include the Spine's desert coastal west cut-and-cover tunnels for The Line, which are under design, and packages one and two of the delta junction tunnel at Oxagon. Neom expects to receive the bids for both packages by 27 August.
Dubai Deep Tunnels Portfolio
In Dubai, meanwhile, the Deep Tunnels Portfolio includes a series of interconnected deep sewage tunnels and associated facilities. The project involves the construction of two sets of deep tunnels terminating at two pump stations located at sewerage treatment plants (STPs) in Warsan and Jebel Ali.
A conventional sewage and drainage collection system and STPs will be built in Hatta.
First announced in 2015, the Dubai Deep Tunnels Portfolio project has faced delays over the years. The tender for consultancy services was first issued in 2015 and was awarded the following year to US-headquartered Parsons.
In June 2017, Dubai Municipality appointed Dutch consulting firm KPMG to assist with preparing the project under a public-private partnership (PPP) model instead of the conventional engineering, procurement and construction model.
There was no significant progress on the project after Dubai Municipality conducted a geotechnical investigation in late 2017.
This changed in June of this year, however, when Dubai’s Executive Council approved the project and said it would require an investment of about AED80bn ($22bn).
It added that the project has been designed to serve the needs of the Dubai population for the next 100 years, in alignment with the Dubai Economic Agenda D33 and the Dubai Urban Plan 2040.
In August, Dubai Municipality invited firms to express interest in bidding for the contract to provide project management consultancy services for the scheme. It expects to receive prequalification applications by 25 August.
Jeddah stormwater system
Jeddah Municipality is also taking steps to improve the city’s water infrastructure, and is investing in stormwater drainage and management systems.
The latest project under this programme is the King Abdullah Road-Falasteen Road (Kafa) tunnel, which is being developed in two phases. Phase one involves the construction of two main storage tunnels, one 5.3 kilometres (km) long and the other 3.4km long.
The scope of phase two includes constructing a terminal pumping station, a marine outfall and all necessary online and offline shafts.
In March, Jeddah Municipality invited contractors to prequalify for the contract to build the tunnels. It is understood the client received responses to the request for qualifications in June.
US-based Aecom is the consultant for the project.
Morocco's undersea rail link
In June this year, the Spanish government revived the Morocco-to-Spain undersea rail link project after allocating about $2.5m for a renewed design study.
The project was launched in 2003 but was put on hold after the 2008 financial crisis. It has undergone several rounds of feasibility studies but remains in the study stage after nearly two decades of funding-linked delays.
The plans involve a double-rail track and additional service line stretching 38.5km between Tarifa in Spain and Tangier in Morocco. A 28km section will run under the Mediterranean Sea at a maximum depth of 475 metres.
The maximum depth of the tunnels will be 300 metres. Each single-track tunnel will have an inner diameter of 7.9 metres, while the service gallery will be 6 metres in diameter.
The two countries are developing the project jointly through Morocco’s National Society for Strait of Gibraltar Studies and the Sociedad Espanola de Estudios para the Comunicacion Fija a Traves del Estrecho de Gibraltar.
In 2006, Swiss engineering company Lombardi Engineering was selected to design the tunnel and the preliminary studies for the project were completed two years later.
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
Oman receives Misfah and Duqm applications4 April 2025
-
Trump tariffs hit 13 Mena states4 April 2025
-
Bahrain receives solar IPP consultancy bids4 April 2025
-
First Siemens Energy turbine reaches Qassim 24 April 2025
-
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Oman receives Misfah and Duqm applications Jennifer Aguinaldo
4 April 2025
Oman’s Nama Power & Water Procurement Company (Nama PWP) has received statements of qualifications (SoQs) from 12 firms for a competitive tender to develop a gas-fired independent power producer (IPP) project in the sultanate.
The Misfah and Duqm combined-cycle gas turbine plants will have a capacity of 2,400MW and will be tendered as one contract, a source close to the project previously told MEED.
Nama PWP invited interested firms to submit their prequalification applications for the project in January, with a deadline of 13 March.
The utility developers that submitted their SoQs include:
- Acwa Power (Saudi Arabia)
- Korea Western Power Company (Kowepo, South Korea)
- Marubeni Corporation (Japan)
- Nebras Power (Qatar)
- Alghanim International (Kuwait)
- Etihad Water & Electricity (UAE)
- Reliance Power (India)
- Samsung C&T Corporation (South Korea)
- Sembcorp Utilities (Singapore)
- Shenzhen Energy Group Company (China)
- Sumitomo Corporation (Japan)
- Al-Jomaih Energy & Water (Saudi Arabia)
In December, the project client invited companies to express interest in the project, which will be implemented on a build, own and operate (BOO) basis.
At the time, Nama PWP said it expected to issue the tender in the first quarter of 2025 and award the BOO contract by Q4.
The company also said it expects early power in Q2 2028 and full commercial operation in Q2 2029.
US/India-based Synergy Consulting is the client’s financial adviser.
The new project represents a u-turn on a previous announcement that Oman would not build any new gas-fired power generation plants, which local media reported in 2022.
In May last year, Nama PWP announced the award of renewed contracts for four gas-fired independent power and water projects (IWPPs) in the sultanate.
The agreements collectively secured over 1,500MW of electricity and 200,000 cubic metres a day of desalinated water for up to nine years.
https://image.digitalinsightresearch.in/uploads/NewsArticle/13616470/main.jpg -
Trump tariffs hit 13 Mena states Jennifer Aguinaldo
4 April 2025
Over a dozen Middle East and North Africa (Mena) countries will face US President Donald Trump's reciprocal tariffs – at rates varying between 10% and 41% – from 5 April.
Trump announced an executive order on 2 April regarding “regulating imports with a reciprocal tariff to rectify trade practices that contribute to large and persistent annual US goods trade deficits”.
Six of these countries – Egypt, Kuwait, Morocco, Qatar, Saudi Arabia and the UAE – face 10% tariffs, which is the minimum rate, or universal tariff, imposed on US trading partners.
Goods from Syria and Iraq face the highest tariff rates of 41% and 39%, followed by Libya and Algeria, which each face tariffs of 31% and 30%, respectively.
The executive order imposes 28% tariffs on goods originating from Tunisia, 20% from Jordan and 17% from Israel.
The impact of the new tariffs on regional businesses is less clear compared to their effect on US consumers, who will have to bear the brunt of increased prices of imported products.
US media outlets report that goods included in the reciprocal tariff regime include electronics, automobiles, clothing and shoes, wine and spirits, furniture, coffee and chocolates.
Dubai-based global ports operator DP World said that businesses will face significant adjustments in response to the tariffs, according to a report by the UAE’s The National.
“With tariffs increasingly shaping policy, we recognise that businesses are facing significant adjustments. As supply chains realign, new manufacturing and trading hubs may emerge in response to shifting cost structures and market access considerations,” DP World said.
The firm added that it is working closely “with our customers to navigate these complexities – helping them maintain continuity, find efficiencies and build resilience in an evolving global landscape”.
Photo credit: Pixabay, for illustrative purposes only
https://image.digitalinsightresearch.in/uploads/NewsArticle/13616433/main.jpg -
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) will procure the solar IPP project in the Belaj Al-Jazaer area of the kingdom’s Southern Governorate.
According to an industry source, the planned solar IPP will have a capacity of between 160MW and 200MW.
As with 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 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 a thermal independent water and power project and an independent water project.
https://image.digitalinsightresearch.in/uploads/NewsArticle/13616351/main.jpg -
First Siemens Energy turbine reaches Qassim 2 Jennifer Aguinaldo
4 April 2025
The first combined-cycle gas turbine (CCGT) has arrived at the Qassim 2 independent power producer (IPP) project site in Saudi Arabia.
According to one of the project owners, France’s EDF, its arrival marks a key milestone in the construction of the 1,800MW “decarbonised combined-cycle gas turbine project with provision for carbon capture, utilisation and storage”.
EDF Renewables Middle East said in a social media post that the turbine was made in Saudi Arabia, where the next two turbines are also being manufactured.
Germany’s Siemens Energy confirmed winning the contract, worth $1.5bn, to supply gas turbines and other equipment to Qassim 2 and 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 in July 2024 on the contract to develop and operate the Taiba 2 and Qassim 2 IPPs.
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.
Subsequently, an engineering, procurement and construction (EPC) team led by China Energy International Group was appointed.
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 the Taiba 2 and Qassim 2 power plants will initially be connected to the grid in simple-cycle mode in 2026 and permanently operated as combined-cycle power plants a year later.
The new plants are expected to save up to 60% of carbon dioxide (CO2) emissions compared with oil-fuelled 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
https://image.digitalinsightresearch.in/uploads/NewsArticle/13616061/main.gif -
Tadweer and Tribe seek nod for $1.5bn Australia project Jennifer Aguinaldo
4 April 2025
The first project to emerge from the Comprehensive Economic Partnership Agreement (Cepa) signed between the UAE and Australia in November 2024 is progressing well.
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.
Parkes Energy Recovery comprises Tribe, Tadweer, Australian waste solutions firm HiQ and Kanadevia Inova.
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 major benefits to Australian businesses. These include the elimination of tariffs on over 99% of exports from Australia to the UAE by value and 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, the minerals sector, food and agriculture, and infrastructure development.
https://image.digitalinsightresearch.in/uploads/NewsArticle/13613963/main.jpg