MEED Middle East Economic Digest articles from April 2009

MEED Middle East Economic Digest archives from April 2009

Irrigation pumping stations.(EGYPT)
April 3, 2009... Turnkey supply and erection of two irrigation pumping stations.

Effluent water treatment unit.(IRAQ)
April 3, 2009... Provision of an effluent water treatment unit for a crude oil treatment centre.

Oil processing plants.(IRAQ)
April 3, 2009... Construction of two oil processing plants to handle 50,000 barrels a day of oil.

Well drilling.(IRAQ)
April 3, 2009... Drilling of 45 oil wells.

3G mobile licence.(JORDAN)
April 3, 2009... Provision of a licence for use of radio spectrum frequencies for 3G mobile communications.

Entry/exit border centre.(KUWAIT)
April 3, 2009... Design, construction, completion and maintenance of an entry/exit border centre.

Wastewater consultancy services.(LEBANON)
April 3, 2009... Consultancy services for sewage network systems and wastewater schemes.

Seismic survey services.(LIBYA)
April 3, 2009... Provision of 2D offshore seismic data acquisition and onboard processing services.

Industrial estate expansion.(OMAN)
April 3, 2009... Expansion of an industrial estate.

Road construction.(OMAN)
April 3, 2009... Construction of a coastal road.

Package treatment plants.(QATAR)
April 3, 2009... Supply of temporary treatment plants.

Coast guard stations.(QATAR)
April 3, 2009... Construction and maintenance of coast guard stations at Ras Abrouq.

Offshore jack-up accommodation rig/barge.(QATAR)
April 3, 2009... Provision of a jack-up accommodation rig/barge for offshore operations.

Community site development works.(SAUDI ARABIA)
April 3, 2009... Primary community site development works including roads, stormwater drainage, water distribution, treated sewage effluent and irrigation systems, power and telecommunications.

Railway turnouts and wooden sleepers.(SYRIA)
April 3, 2009... Supply of 175 railway turnouts and wooden sleepers.

Iraq signs refinery deal with Foster Wheeler.(Brief article)
April 3, 2009... [ILLUSTRATION OMITTED] Iraq has formally signed a $128m design deal with the US' Foster Wheeler for a 300,000-barrel-a-day oil refinery at Nasiriyah in the south of the country. Once Foster Wheeler has completed the front-end engineering...

Arinc secures Iraq helicopter deal.(Contract awards)
April 3, 2009... The US' Aeronautical Radio Incorporated (Arinc) has won the $80.6m contract to procure and deliver 22 helicopters to Iraq by August 2010.

Saipem wins $400m Egyptian rig contract.(Contract awards)
April 3, 2009... Italian energy contractor Saipem has won a $400m contract to charter an offshore drilling rig in Egypt until the fourth quarter of 2014.

Aristocrat Star awards Dubai work to Powerline.(Contract awards)
April 3, 2009... Aristocrat Star Investments has awarded Thailand's Powerline Group an AED600m construction contract at Dubai Investments Park.

Terna wins wind farm project.(Contract awards)
April 3, 2009... Amman has selected Greek firms Terna Energy and Vector Aeolian Parks, and the local Enara Energy Investments, to build a wind farm at Al-Kamshah.

Events.(Brief article)(Calendar)
April 3, 2009... Abu Dhabi Projects 2009 24-26 May Sheraton Hotel, Abu Dhabi, UAE www.meed.com/events/abudhabiprojects The event will provide detailed information on key projects in Abu Dhabi. The three-day event offers information on current...

Reform delays harm economy.(ALGERIA)
April 3, 2009... The ageing president has retained economic power in the state's hands The question is how hard the establishment will resist changes [ILLUSTRATION OMITTED] Even a land mine was not enough to stop Abdelaziz Bouteflika from seeing...

Cities should be planned wisely.(Brief article)
April 3, 2009... The pace of economic growth has resulted in plans being overlooked in favour of rapid construction The year 2030 will mark a major milestone for the Middle East's capital cities. If all goes according to plan, Abu Dhabi, Baghdad, Doha and...

Dubai must wait for next boom.(UAE)(Brief article)
April 3, 2009... Projects will need to be redesigned to meet more cautious post-credit crunch investor requirements Even by Dubai standards, the projects that the city launched in late 2004 were gargantuan. Official budgets were never released, but...

Sumitomo will be given time.(Ras al-Zour power project)(Water & Electricity Company)(Brief article)
April 3, 2009... [ILLUSTRATION OMITTED] The consortium has $2.5bn in funding agreed, which would be hard for a rival bidder to replace When a consortium led by Japan's Sumitomo Corporation was named preferred bidder on the $5.5bn Ras al-Zour power...

Nuclear power is self-sufficiency.(JORDAN)(Brief article)
April 3, 2009... Atomic energy will play a huge role in meeting the country's growing electricity demand Jordan relies almost entirely on imports from its neighbours for its energy needs. Today, 80 per cent of the country's power generation is fuelled by...

Sumitomo seeks partner for Ras al-Zour: consortium hopes deal with power company will protect its position as preferred bidder on the project.(POWER: SAUDI ARABIA)
April 3, 2009... Japan's Sumitomo Corporation has approached several power companies to replace Malaysia's Malakoff International on the $5.5bn Ras al-Zour power project, so it can continue as preferred bidder on the scheme. Sumitomo has spoken to the UK's...

State energy firm to spend $82bn on boosting capacity: Kuwait Petroleum Corporation sets out investment plans for next five years.(ENERGY: KUWAIT)
April 3, 2009... Kuwait Petroleum Corporation (KPC) plans to invest KD24bn ($82.5bn) over the next five years on developing its upstream and downstream capacity. The company will spend KD11.2bn on upstream projects, KD12bn on downstream infrastructure,...

Work begins on airport masterplan.(TRANSPORT: IRAQ)(Brief article)
April 3, 2009... The Baghdad Mayoralty and Iraq's Transport Ministry will begin drafting a formal masterplan in the summer for the $50bn redevelopment of the area around Baghdad international airport. The project is seen as critical for the city's long-term...

State backs power investment company: Water & Electricity Holding Company will invest in the kingdom's independent water and power projects.(POWER: SAUDI ARABIA)
April 3, 2009... Riyadh has approved the creation of a state-owned enterprise to invest in power generation projects in the kingdom. The Water & Electricity Holding Company (WEHC), which will be wholly owned by the Public Investment Fund (PIF), will take...

Banks seek government support to plug funding gap.(BANKING & FINANCE: SAUDI ARABIA)(Brief article)
April 3, 2009... Saudi banks are in tales with Riyadh over securing long-term deposits from government ministries to help fill a funding gap that is preventing them from financing the kingdom's vital infrastructure projects. The lack of long-term deposits...

Arabian Canal construction hits delays: Developer Limitless reschedules programme after Roads & Transport Authority terminates design contract.(CONSTRUCTION: UAE)
April 3, 2009... A major contract on Dubai's AED40bn ($10.1bn) Arabian Canal project has been terminated, causing significant delays to the scheme, which will not open in time for its original completion date of 2012. Dubai's Roads & Transport Authority...

Ministry to issue tenders for $3.7bn Subiya causeway.(CONSTRUCTION: KUWAIT)(Brief article)
April 3, 2009... Kuwait plans to tender for the contract to build the KD1bn ($3.7bn) Subiya causeway by the end of this year. The Public Works Ministry will award the contract on a design-and-build basis. The consultant, Denmark's Cowi, is finishing a...

Qatar to enter talks over gas facilities upgrade project: discussions to take place on $1bn combined contract for Dukhan and Mesaieed.(ENERGY: QATAR)
April 3, 2009... Qatar Petroleum (QP) will hold talks with five contracting groups to improve its domestic gas facilities by combining two construction contracts worth an estimated $1bn in total, at Mesaieed and Dukhan industrial cities. The state-run firm...

Ministry considers private sector.(WATER: KUWAIT)(Brief article)
April 3, 2009... Kuwait's Public Works Ministry is considering developing the Umm al-Hayman wastewater treatment plant as a build-operate-transfer scheme. "There is some thought of doing it with the private sector," says Khaled al-Khizi, assistant...

National Bank confident state will withstand downturn: Kuwait can draw on $500bn in assets to rescue economy, says chief economist.(ECONOMY: KUWAIT)
April 3, 2009... Kuwait is well placed to withstand the global economic crisis, according to Randa Azar-Khoury, chief economist of National Bank of Kuwait. The country's public and private bodies hold more than $500bn in assets and finds that could be used...

Qatargas to pay for time spent on bids.(ENERGY: QATAR)(Brief article)
April 3, 2009... Qatar Liquefied Gas Company (Qatargas) will guarantee payments for preparatory work undertaken by prequalified contractors on its $1.2bn plateau maintenance project, in an unusual move for the state's energy sector. Qatargas has told...

Amman receives bids for nuclear study: six firms are competing for site study contract for facility to be built 9 kilometres east of Aqaba.(POWER: JORDAN)
April 3, 2009... Jordan is moving ahead with plans to build its first nuclear power plant after receiving bids for a site study Jordan Atomic Energy Commission (JAEC) has received six bids. The plant will be located nine kilometres east of Aqaba. The...

Losing firms expect bidding for Iraqi fields to be reopened.(ENERGY: IRAQ)(Brief article)
April 3, 2009... The oil majors that failed to pre-qualify In the second bid round for fields in Iraq are confident that the government will Invite more firms to bid, in an effort to increase competition and achieve better terms. Iraq's Petroleum Contracts...

Legal battle moves to UK's upper house.(Brief article)
April 3, 2009... The ongoing legal battle between Palestinian businessman Munib Masri and two divisions of the Atheus-registered Consolidated Contractors Company (CCC) will move to the UK's House of Lords in May, the country's highest court. At a Law Lords...

Rabigh consortium close to securing project financing: Acwa Power and Kepco expect to conclude talks with banks in mid-April.(Korea Electric Power Corp.)
April 3, 2009... The consortium running the $2.5bn Rabigh independent power project (IPP) expects to finish its negotiations with international and local banks over financing for the scheme by the middle of April. Sources close to the consortium, which is...

Dolphin to retender pipeline contract: concerns over Russian contractor's ability to meet deadlines prompt firm to invite new bids.(ENERGY: UAE)
April 3, 2009... Abu Dhabi-headquartered Dolphin Energy has invited contractors to bid for a retendered $418m pipeline construction contract that it first awarded in 2008, according to sources at construction firms in the UAE. Moscow-based Stroytransgaz won...

Ministry reopens competition for Jaber al-Ahmed hospital.(Brief article)
April 3, 2009... Kuwait's Ministry of Public Works (MPW) is to retender the main construction contract on the Jaber al-Ahmed al-Sabah hospital project, one of Kuwait's largest ever building projects, at the beginning of April. "We expect to retender the...

Al-Shaheen refinery work to be broken into smaller deals: Qatar Petroleum seeks to lower risk and attract more competitively priced bids.(ENERGY: QATAR)
April 3, 2009... Qatar Petroleum (QP) is to break up the construction packages for the $10bn Al-Shaheen refinery into smaller sections in an attempt to spread the project risk between several contractors and receive more competitively priced bids. The...

Palestinian economy set to contract.(ECONOMY: GAZA & WEST BANK)(Brief article)
April 3, 2009... The economy of the West Bank and Gaza will contract by 3.6 per cent this year, according to the Palestinian National Authority's official statistics agency The annual forecast from the Palestinian Central Bureau of Statistics (PCBS) says...

Security key to economic success: if President Abdelaziz Bouteflika wins a third term, restoring the confidence of investors will be a priority.(ALGERIA)
April 3, 2009... Security is a key issue for Abdelaziz Bouteflika as he seeks a third term as president of Algeria in elections to be held on 9 April. There is little doubt that Bouteflika will win the ballot. He was able to force through a change in the...

Americana group: the Kuwait-based firm aims to build on its base as the leading food company in the Middle East.(FOOD)(Company overview)
April 3, 2009... COMPANY SNAPSHOT Date established 1964 Main business sectors Food retail, marketing and manufacturing Main business regions Kuwait, Egypt and worldwide Chief executive officer Marzouk al-Kharafi STRUCTURE ...

Gulf investors target Africa: Middle East firms are seeking opportunities in sectors including construction, telecoms and agriculture.(INVESTMENT)
April 3, 2009... GCC In January this year, one of Dubai's largest conglomerates, Dubai World, announced $16bn worth of investments in Nigeria's energy sector. The mega-deal, focused on the development of oil and gas reserves, is a firm statement of intent...

Tourism sector bounces back: the number of visitors to Beirut is increasing following the signing of the Doha Agreement in May 2008.(LEBANON)
April 3, 2009... A new sense of confidence is emerging among Lebanon's tour operators on the back of solid performance in the opening months of the year. This comes after nine months of relative calm, following political tensions in the summer of 2008. ...

Major projects.(Plan Abu Dhabi 2030)(Brief article)
April 3, 2009... [ILLUSTRATION OMITTED] Long-term residents of Abu Dhabi often recount the story to newcomers of how the city was, until the mid-1960s, little more than a mud fort and a single street. The vision of UAE founding president Sheikh Zayed bin...

A model of sustainability: with a focus on sensible design and planning, the development of the UAE capital city is an example for other governments in the region.(ABU DHABI)
April 3, 2009... Ever since planners in Abu Dhabi set about transforming the city from a small, dusty town to a major business centre in the 1970s, sensible design has been a key element of the plans. The city was developed on a basic, wide grid system,...

Putting Baghdad back together: the masterplan for the development of the Iraqi capital is due for completion this year, with the aim of uniting communities that have been divided by war.
April 3, 2009... Baghdad's first modern masterplan makes for poignant reading. Launched in 1966 by Polish group Pole Service, the plan was intended to form a strategy for the city's expansion through to 1990. The study emphasised that the plan should be...

Planning for a growing population: the Arriyadh Development Authority has completed a masterplan for two new cities on the outskirts of the capital to cope with the expected rise in the kingdom's population over the next 50 years.(RIYADH)
April 3, 2009... Riyadh's first venture into masterplanning took place in 1968 with Greek consulting firm Doxiadis Associates, 36 years after the kingdom was established in 1932. The Saudi capital is one of the fastest-growing cities in the Middle East,...

Controlling the pace of change: the Urban Planning & Development Authority is drawing up a masterplan for Qatar to ensure planned infrastructure projects are compatible and able to move ahead on time.(DOHA)
April 3, 2009... With a booming economy and a population that is forecast to more than double from 400,000 to about I million within two decades, Doha is in the middle of a period of momentous growth. This in turn is radically transforming the capital, with new...

Building a modern capital: a series of major mixed-use projects and infrastructure developments are transforming Algiers after years of civil war and underinvestment.(ALGIERS)
April 3, 2009... Although Algeria was a province of the Ottoman Empire for 300 years, its capital city bears the unmistakable stamp of the French colonial rule that was in place between 1830 and 1962. Lined with grand white buildings with windows and balconies...

Egypt inward investment: six key figures leading Egypt's drive to attract foreign direct investment.
April 3, 2009... Mahmoud Mohieldin POSITION Minister of Investment BIOGRAPHY Mahmoud Mohieldin was appointed Minister of investment at the newly formed Investment Ministry, which was established with a mandate to reform the investment environment in...

Steel pipelines.(EGYPT)
April 10, 2009... Supply of steel pipelines as part of a connection project for a natural gas company.

Water treatment plant.(IRAN)
April 10, 2009... Prequalification for the design, build and operation of a water treatment plant.

Urban rail transport system.(IRAN)
April 10, 2009... Completion, on an engineering, procurement and construction basis, of the third line of an urban rail transport system.

Wastewater treatment plant.(JORDAN)
April 10, 2009... Rebidding for the construction of the Zarka Central industrial wastewater treatment plant.

Booster station construction.(KUWAIT)
April 10, 2009... Construction of a new booster station and development and improvement of another booster station in the north for an oil company.

Hospital construction and operation.(KUWAIT)
April 10, 2009... Construction, completion, furnishing, operation and maintenance of a hospital.

Road construction and sanitary services.(KUWAIT)
April 10, 2009... Construction, completion and maintenance of roads, overhead passages, sanitary, rainwater sewage and other services.

Water treatment.(LIBYA)
April 10, 2009... Remedial treatment of water for fire-fighting and cathodic protection wells.

Public park.(OMAN)
April 10, 2009... Construction of a public park for the Regional Municipalities & Water Resources Ministry.

Work on substations.(OMAN)
April 10, 2009... Carrying out four separate primary substation construction projects for an electricity distribution company.

Roadworks.(OMAN)
April 10, 2009... Carrying out four separate projects for the reconstruction, rehabilitation and maintenance of roads.

Clinics.(SAUDI ARABIA)
April 10, 2009... Construction of new clinics in the Jubail Industrial City.

Heavy oil study/treatment.(SYRIA)
April 10, 2009... Provision of a study and/or carrying out the treatment of heavy oil.

Kuwait Oil Company awards contract to Sinopec.(Contract awards)
April 10, 2009... [ILLUSTRATION OMITTED] State-owned Kuwait Oil Company (KOC) has awarded a KD117m ($402m) contract to China Petroleum & Chemical Corporation (Sinopec) for the construction of five oil and gas rigs. The five-year contract is part of Kuwait's...

Pars Petro Zagros wins Iranian rigs deal.(Brief article)
April 10, 2009... Iran's Pars Petro Zagros Engineering & Services has won a two-year contract to manage the drilling and operation of 10 rigs for the Central Iranian Oil Fields Company.

GE Energy signs $200m contract with Emal.(Contract awards)
April 10, 2009... The US' GE Energy has signed a $200m agreement with Abu-Dhabi based Emirates Aluminium (Emal) to provide services for Emal's new aluminium smelter.

Nacap-Suedrohrbau wins Aramco pipeline work.(Contract awards)
April 10, 2009... Saudi Aramco has awarded a deal to Dutch contractor Nacap-Suedrohrbau for a pipeline running from the Ras Tanura refinery to Riyadh via Dhahran and Al-Hasa.

Kharafi National secures Dubai airport deal.(Contract awards)
April 10, 2009... Kuwait's Kharafi National has won the estimated AED1.6bn ($435m) mechanical, electrical and plumbing contract for Concourse 3 at Dubai International airport.

Events.(Brief article)(Calendar)
April 10, 2009... Building Tall 2009 26-28 April The Westin Mina Seyahi, Dubai, UAE www.meed.com/events/buildingtall Despite the challenging economic climate, the world's tall tower projects are pressing forward. The super-tall building projects...

Risk must be acceptable.(IRAQ)(Brief article)
April 10, 2009... [ILLUSTRATION OMITTED] US president Barack Obama made an unannounced visit to Baghdad on 7 April, the day after the Iraqi capital had suffered its worst day of violence for almost two years. Seven car bombings and sporadic street battles...

Growing deficit is necessary.(EGYPT)(Brief article)
April 10, 2009... Reforming a country's economy is understandably easier during economic good times. Egypt's government began a massive economic modernisation programme when Prime Minister Ahmed Nazif was appointed in 2004. The economy enjoyed annual growth of...

Wary lenders will limit bidding pool.(KUWAIT)(Brief article)
April 10, 2009... Kuwaiti lenders and state-run off and gas companies need to find a way to increase bank guarantees to contractors, or the competitiveness of the country's bidding process may be compromised at just the wrong time. A week after Kuwait...

Emirates sets the nuclear standard.(Emirates Nuclear Energy Corporation)(Brief article)
April 10, 2009... [ILLUSTRATION OMITTED] It will be at least another 10 years before the UAE's first nuclear power plant is commissioned, but the formal procurement process for the project has already been launched. The UAE's atomic agency, Emirates...

Project market will find a floor.(UAE)(Brief article)
April 10, 2009... One Dubai Holding subsidiary taking over the management of another subsidiary might not appear to be a huge change, but it is a significant one nonetheless. For the past six months, the real estate project market has been in freefall. The...

Dubai Properties to revive Sama projects: state-backed developer set to merge with sister company after taking over its management.(CONSTRUCTION: UAE)
April 10, 2009... Dubai Properties has taken over the management of Sama Dubai, and plans to reactivate high-profile projects that the latter put on hold late last year. The move is the clearest sign yet that Dubai plans to navigate the downturn by...

Enec prequalifies bidders for nuclear power programme; contract to build UAE's first nuclear power plant to be awarded in fourth quarter.(Emirates Nuclear Energy Corporation)
April 10, 2009... Emirates Nuclear Energy Corporation (Enec), the organisation running the nuclear energy implementation programme for the UAE, has begun prequalifying companies for the project. According to sources close to the scheme, Enec held a...

Saudia opens talks over merger.(TRANSPORT: SAUDI ARABIA)(Brief article)
April 10, 2009... Saudia Arabian Airlines (Saudia) has opened negotiations with local and international groups, with the aim of merging its ground handling business with another company in the sector. However, the national carrier could postpone the...

Aramco pushes ahead with Yanbu; prequalified contractors will be invited to submit bids for construction of the $12bn export refinery by May.(ENERGY: SAUDI ARABIA)
April 10, 2009... State energy company Saudi Aramco and its partner on the delayed $12bn Yanbu export refinery, the US' ConocoPhillips, say contractors will be invited to bid by May for construction contracts on the scheme, after receiving strong...