This year has been cited as a period of further substantial growth for the Qatar construction projects market due to planned infrastructure spending by the Qatari government. It is also a key phase because the country is undertaking a number of mega-projects in order to realise its National Vision 2030 as well as preparations for the FIFA 2022 World Cup. Alongside that, there has been a diversification of Qatari investment at home and more significantly abroad, factors that can undoubtedly underpin confidence in the construction sector and its continued expansion. Further, this year will also see the upgrading of Qatar by the International equity index compiler S&P Dow Jones Indices to emerging markets status in September. These factors, along with Qatar's leading position in global LNG supplies sustaining planned government expenditure, mean that the Qatar projects market is looking very strong for several more years. In this key phase of the country's infrastructure progress, Qatar Construction Review looks at international expertise from Germany and Italy in key infrastructure projects.
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Last week saw the Qatar General and Water Corporation (KAHRAMAA) award German electronic engineering multinational Siemens a significant contract to further develop the country's power supply system. In an agreement worth $253 million, Siemens will deliver gas-insulated switchgears for the first phase of the expansion project, which also involves the construction of nine turnkey substations in the region. The project is scheduled to be completed within the next 26 months. Mr Bernhard Fonseka, CEO of Siemens WLL Qatar stated, "Siemens has been a long-standing partner to KAHRAMAA and this contract strengthens our cooperation further". He went on to note that, "This project will contribute to improving the power infrastructure in and around Doha, helping the government meet its requirements for achieving its National Vision 2030."
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Siemens has been constructing turnkey substations in Qatar since 2005 and has almost 2,000 high-voltage GIS bays installed in the country. Moreover, the company has been operating throughout the Middle East for many years, providing their infrastructure expertise in eco-friendly power generation and water purification plants to government and commercial organisations. Siemens has contributed to economic development in the region and has enhanced quality of life, winning a raft of international industry awards for their work in the region. Indeed they are Europe's largest engineering company and aside from automaton, the conglomerate operates in the sectors of industry, energy, transportation and healthcare.
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Almost half of all contracts awarded in 2013 involved the Doha Metro project (almost $8bn alone), with contractor expertise recruited from leading multinationals in joint ventures to meet government requirements.
International contractors should also look to partner with local companies and make consideration for this in tendering and proposals.
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Once again however, German expertise was on hand as the Infrastructure & Cities division of Siemens returned to the tram market with the Avenio 100 percent low-floor tram and next year should be completing an 11.5 km catenary-free tramway in Doha. That contract is reportedly in excess of 100 million euros and was awarded by the Qatar Foundation. The project is part of the plans to transform Qatar into a knowledge-based society, and involves the supply of signalling and communication systems, electrification and provision of depot equipment and nineteen Avenio trams. This project and the development of Doha's power supply by Siemens, underline the importance of worldwide expertise for the overall success Qatar's construction plans.
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The capabilities of another German multinational – Herrenknecht will also be instrumental in the construction of Doha's metro system after having been awarded a contract by the Qatar Railways company (Qatar Rail). World leading experts in infrastructure tunnelling, the company will be providing 15 high-tech tunnel boring machines to Qatar Rail and their joint venture partners QDVC, GS Engineering & Construction and Al Darwish Engineering.
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Last month a Qatari delegation led by HE Jassim Saif Ahmed Al Sulaiti, Minister of Transport visited the Herrenknecht plant in Schwanau to see the first tunnel boring machine for the Doha metro project accompanied by the former German Chancellor Dr. h.c. Gerhard Schröder. | ||||
HE Minister Jassim Saif Ahmed Al Sulaiti underlined the huge significance of this project for Doha and Qatar, "Qatar holds its hopes and aspirations for the future in accordance with the Qatar National Vision 2030. One of the most important elements in fulfilling this vision is the infrastructure of the country itself. As such, we have allocated tremendous resources and a generous budget for upgrading Qatar's infrastructure, to which Qatar Rail's Doha Metro project is also included". Engineer Abdulla Abdulaziz Turki Al Subaie, Managing Director of Qatar Rail was very confident "in Herrenknecht's abilities to deliver exceptional quality products", adding that their attention to detail was why they had been awarded the tunnel boring machines contract.
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The Doha metro project is a vital part of Qatar's infrastructure plans for the World Cup. Fans will use it to travel between the 64 matches. Different to most metro projects, usually constructed line-by-line, Qatar is planning to build three lines of its network concurrently in order to guarantee that by 2019 it has 111km and 37 stations ready, including the Education City station, which will connect with the new national rail line. Another 152km of lines are set to follow with a further 56 stations by 2026, in line with the Vision 2030. Project Qatar is always very well represented internationally, however this year one of the largest delegations is from Italy – one hundred companies from there alone. The Italian Chamber of Commerce has been very proactive in seeking opportunities for Italian firms. The country's largest construction company is also involved in the Doha metro project. Qatar Rail awarded the Salini Impregilo Group a contract valued at €1,803 million to work on the Red Line North. They are a world leading contractor with over 80% of the company's revenues coming from abroad. Their part in the Doha Metro project is scheduled for completion over 60 months and involves the excavation of two parallel tunnels, one in each direction, almost 11.6 km long with an internal diameter of approximately 6.17 m. There is no doubt that international expertise will deliver a state of the art metro system to Qatar, and certainly there will be new global entrant into this exciting market. Construction companies in Qatar have already began laying the foundations.
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Wednesday, 25 June 2014
The necessity for multinational construction expertise in Qatar
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