AWCS told that $1.3bn marine works contract at new Fao port to be tendered by July; awarded by year-end

The annual MEED Arabian World Construction Summit (AWCS) was told this morning that the $1.3bn contract to deliver the marine works component of the first phase of Iraq’s new Grand Fao Port which is now under bid should be confirmed by the end of 2014.

“We are evaluating prequalification documents from about 18 consortia,” Grand Fao Port Project director Asaad Rashid told the AWCS. “We shall issue the shortlist for the project by the end of May or early June. We shall sign the contract by the end of this year.”

The first phase, which is due to be completed in 2018, calls for a port with capacity to handle 2m twenty-foot-equivalent-unit (TEU) containers plus general cargo. The marine works contract is the largest contract in the port’s first phase. The marine works contract will involve delivering all the land-side facilities the port needs.

Rashid told the AWCS that the port’s ultimate capacity is 20m TEU. It will make it the most important gateway for seaborne imports into Iraq and regional markets.

Rashid said that two construction contracts have been placed.

  • The 8km eastern breakwater which is being built in a $280m design and build (D&B) contract by Greece’s Archirodon. The 18-month contract is due to be completed this summer.
  • The 16km western breakwater. South Korea’s Daewoo E&C won the $700 D&B contract at the end of 2013.

The final two elements of the port’s first phase are:

  • landside facilities including the railway line, roads, utilities and other units. Companies interested in bidding for this contract are being prequalified.
  • The concession to operate the port.

The Iraqi government is pressing ahead rapidly with the Grand Fao Port as a way of dealing with chronic congestion in Iraq’s Gulf ports.

The Grand Fao Port is being developed at the entrance to the Shatt al-Arab waterway and opposite Boubiyan Port in Kuwait. Boubiyan Port’s first phase is being completed. Its ultimate capacity will be 3.5m TEUs.

The annual AWCS is organised by MEED to develop solutions to the challenge of delivering more than 100 megaprojects worth a total of $1tn in the Gulf region by 2025. More than 300 delegates, guests and speakers attended the event.

The supporters of the AWCS 2014

  • HSBC and CPC are strategic event partners.
  • Hyder and Six Construct are Gold partners.
  • Agis, Mashreq and Projacs are Silver sponsors and Deloitte is Knowledge Partner.
  • EC Harris Built Asset Consultancy is Lunch Sponsor on day one and Bentley is CEO Forum sponsor.
  • Aksa, Drake & Scull, Hill International and Zurich are Conference Sponsors.

For full coverage of the AWCS 2014, see www.meed.com.