Bidding starts for Arabian Canal phase 2 contracts

By Tom Arnold  www.arabianbusiness.com

Excavation work on the first phase of the $11 billion Arabian Canal has started, with the bidding process for phase two of the scheme now underway, the director of the project has confirmed.

Tristar Transport & Contracting is carrying out the excavation of part of the 75km long canal, including removing more than 200 million cubic metres of earth to be re-used to create new landscapes, including valleys and hills up to 70 metres high.

The Abu Dhabi-based contractor has begun earthworks on the site in the area where the canal gates will be in the north-western part of the scheme after developer Limitless awarded it the contract for phase one of the project, which stretches 9km, two weeks ago.

Starting from Dubai waterfront, the canal runs 25km inland past the new international airport at Dubai World Central before returning to the sea close to Dubai Marina.

Ian Raine, project director, Arabian Canal, said a list of between 8 and 10 possible contractors had been compiled for phase two, which covers the construction, excavation and grading for a further 9km length of the canal.

“The key milestone for us is getting the construction underway and that’s now happened,” he told Arabian Business.

“We have started to invite bidders and sent out letters inviting a number of companies to bid for phase two and expect to make an award for that contract by the end of this year but it depends on final discussions and negotiations.”

Construction of phase one and two are both scheduled to take three years.

Raine said the first contracts would be in place by the middle of next year for the infrastructure works for the project including the utilities, roads and bridges.

Raine said Limitless was about to start the masterplanning for phase three and would invite bids for the 6km stretch before the end of the year for a contract involving earthworks and grading.

Phase four is at the concept masterplan stage, with a detailed masterplan being produced early next year, he said.

Firms awarded contracts for phases three and four will be from the list of contractors who have already pre-qualified for the project bidding process.

Limitless is also master planning a $50 billion, 14,000 hectare waterfront city for 2.5 million people, to be built along the 30 kilometre inland stretch of the canal.

Phase one of the development covers 2,200 hectares and will accommodate 600,000 people.

Raine said Limitless will be building around 25 to 30 percent of the overall development, with the remainder of the land sold to other developers.

The sale of the development land will be sold in stages over a period of several months, starting from the next few weeks, he said.