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QATAR
 PROJECTS
 2014

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QATAR PROJECTS 2014 - www.meed.com
Qatar Projects 2014

                                                                    CONTENTS
                                                                     3  Qatar projects market overview
                                                                     8  Map of Qatar
                                                                     10 Public Works Authority (Ashghal)
                                                                     12 Qatari Diar
                                                                     14 Qatar Rail
                                                                     16 Barwa
                                                                     18 Qatar Petroleum
                                                                     22 NDIA Steering Committee
                                                                     24 RasGas
                                                                     25 Qatar General Electricity & Water Corporation
                                                                        (Kahramaa)
                                                                     26 Qatar Foundation
                                                                     27 New Port Project Steering Committee
                                                                     29 Contractors

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                                                                   Editorial Director
                                                                   Richard Thompson +971 (0)4 433 1426
                                                                   richard.thompson@
                                                                   Editor (MEED magazine)
                                                                   Elizabeth Bains +971 (0)4 433 1423

                                                                                                                        opens in Qatar market
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                                                                   Sub Editor
                                                                   Ananda Shakespeare +971 (0)4 433 1422
                                                                   ananda.shakespeare@
                                                                   Sub Editor
                                                                   Sneha Abraham +971 (0)4 433 2807                                For Qatar’s project market, the outlook     $9.8bn of contracts in 2009 and $11.4bn in
                                                                   sneha.abraham@
                                                                   Art Editor                                                      from now to 2020 is extremely strong.       2010, as the international construction down-
                                                                   Martin Staniszewski +971 (0)4 375 7988
                                                                   martin.staniszewski@                                            Although much of this has been attrib-      turn slowed progress. But in 2011, awards
                                                                   Contributors
                                                                   Bernadette Ballantyne, Nancy el-Khoury,              uted to its successful bid to stage the Fifa 2022      jumped to $16bn and remained at this level in
                                                                   Jeff Florian, Marianne Makdisi, Peter Salisbury
                                                                                                                        football World Cup, the reality is that the projects   2012 before climbing another 21 per cent in
                                                                   ADVERTISEMENT SALES
                                                                   Sales Support and Europe Enquiries                   planned and under way are more about meeting           2013 to $19.4bn.
                                                                   Monica D’Souza +971 (0)4 390 0698
                                                                   Monica.dsouza@                                       the country’s National Vision 2030 than hosting           One of the most important pieces of infrastruc-
                                                                   Saudi Arabia Enquiries
                                                                   Ali Jaber +966 (0)1 479 7692/                        the international sporting event. However, the com-    ture for the World Cup is the Doha metro project,
                                                                   +971 (0)50 455 9153
                                                                   ali.jaber@                                           bination of these two drivers leads to an active       which will transport fans attending the 64
                                                                   CUSTOMER SERVICES                                    projects market estimated by regional projects         matches. Unlike other metro projects, which have
                                                                   Retention and Client Relations Manager
                                                                   Mariam Mahmood +971 (0)4 375 5606                    tracker MEED Projects to be worth $285bn.              tended to be constructed line-by-line, Qatar is
                                                                   mariam.mahmood@
                                                                                                                           “Qatar is undertaking a number of meg-              seeking to build three lines of its network simulta-
                                                                   MEED SUBSCRIPTION SERVICES
                                                                   Tel +44 (0)1858 438 837                              aprojects in order to accomplish its National          neously in order to ensure that by 2019 it has
                                                                   Fax +44 (0)1858 461 739
                                                                   meed@subscription.co.uk                              Vision 2030,” said Abdullah bin Abdulaziz Turki al-    111km and 37 stations in place, including the
                                                                   TOP RIGHT GROUP HEAD OFFICE                          Subaie, managing director of Qatar Rail, speaking      Education City station, which will link with the new
                                                                   The Prow, 1 Wilder Walk,
                                                                   London W1B 5AP, UK                                   at a press briefing on the progress of the rail        national rail line. A further 152km of lines are set
                                                                   Tel +44 (0)20 7715 6000                              projects in mid-December. “Significant invest-         to follow with a further 56 stations by 2026, in
                                                                   For a full list of reader services, editorial and
                                                                   advertising contacts visit www.meed.com              ments have gone into Qatar’s transportation and        accordance with the Vision 2030.
                                                                                                                        shipping infrastructure, including the construction       This project alone was responsible for almost
COVER: LIAM O’FARRELL/ILLUSTRATION WEB. PHOTOGRAPH: SHUTTERSTOCK

                                                                   ALL IMAGES, UNLESS OTHERWISE STATED, ARE SUPPLIED
                                                                   BY THE RESPECTIVE ARCHITECTURAL AGENCIES.            of the New Doha International airport [now Hamad       half of all contract awards made in 2013 as
                                                                                                                        International], the New Doha Port and several          Qatar Rail announced that five major packages
                                                                                                                        megacities such as Lusail and Msheireb. Addition-      worth $8bn had been let. The structure of the
                                                                                                                        ally, the railway network project, estimated at        successful consortiums is indicative of the
                                                                   All rights reserved © 2014 MEED Media FZ LLC,        $35bn, entails plans to extend shipping railways       approach being taken by government bodies,
                                                                   An EMAP Service – part of Top Right Group
                                                                   Printed by Headley Brothers Ltd, UK
                                                                                                                        by 325 kilometres, and to connect Qatar’s rail net-    who are by far the most active clients in Qatar.
                                                                   Registered as a newspaper with the Post Office       works to those of other GCC countries.”                All of the groupings involve local companies and
                                                                   ISSN 0047-7238
                                                                                                                           Although all of these projects were planned or      Qatar Rail made it clear from the start that inter-
                                                                                                                        under way before the December 2010 announce-           national contractors would have to partner with
                                                                                                                        ment that Qatar would be the first Middle East         domestic firms. At the start of the process,
                                                                                                                        country to host the world’s biggest sporting           more than 100 companies attempted to pre-
                                                                                                                        event, there is no doubt that the World Cup win        qualify for the scheme and, by the time the bids
                                                                                                                        has accelerated development plans. Until the           were submitted, 18 consortiums had responded
                                                                                                                        Fifa announcement, Qatar had only awarded              to the tender.

                                                                   www.meed.com                                                                                                                       Qatar Projects 2014 | MEED | 3
Qatar Projects 2014

    In addition to the $8bn in rail contracts signed     Qatar contract awards                                       plastics. The two major packages for the $6.4bn
last year, the Public Works Authority (Ashghal)                                                                      project are set to be released early this year.
                                                          ($bn)
also awarded two more contracts on the Doha                                                                             Doha is also investing in its power and water net-
                                                     3000030
Expressway megaproject, and followed this with                                                                       works to support future growth. As with its road
a third major award in the first quarter of 2014. 2500025                                                            infrastructure, Qatar has taken a cautious
The schemes, which add up to almost $2bn, are                                                                        approach to this in the past, which has enabled it
part of the $12.7bn Expressway Programme,            2000020                                                         to enjoy a power capacity surplus with a reserve
which began in late 2010 and is scheduled for                                                                        margin of about 40 per cent. This means it has
completion in 2017. Consisting of 35 major           1500015                                                         been able to sell electricity through an interconnec-
projects, the programme stems from the Qatar                                                                         tor to other GCC states. With demand rising at
                                                     1000010
Transport Masterplan developed by the Ministry                                                                       10-12 per cent a year, however, Kahramaa’s techni-
for Municipality & Urban Planning (MMUP) and is 5000 5                                                               cal director Ahmed al-Naser told MEED in Novem-
designed to support and stimulate growth –                                                                           ber that the country plans to install a further
again to support the National Vision 2030.               0 0 4                                                       2,000MW of capacity and 110 million gallons a
                                                                  0      05 006 007 008 009 010 011 012 013
    In a farsighted move, MMUP has opted to                    20     20    2   2   2   2   2   2     2      2       day (MIGD) of desalinated water production over
                                                          Source: MEED Projects
design the road network assuming Qatar will                                                                          the next five years.
develop all potentially habitable areas, and is                                                                         From a major projects perspective, this means a
therefore creating a road infrastructure capable of      Qatar awards by sector, 2013                                new independent water and power project is a pri-
supporting a potential population of 3.8 million by               Power 3
                                                                                                                     ority and is one of the $37bn of schemes currently
                                                                                                  Gas 2
2030. Qatar’s current population is about 2 mil-                                                        Water 1
                                                                                                                     in the bidding phase in Qatar. Six developers have
                                                            Industrial 3
lion. This also involves upgrading and rebuilding                                                                    been prequalified for the $3bn plant, known as
the smaller local roads as part of the Local Roads         Oil                                                       Facility D, which will produce 2,400MW of power
& Drainage Programme (LRDP); a further $413m                                8                                        and 130MIGD of water. An award will be made in
in contracts were awarded on this part of the pro-                                                                   2014, with first power online by the end of 2016.

                                                                               %
gramme in 2013. The LRDP began in 2012 and                                                                              On the water side, the most important project
involved five major consultants acting as pro-                                                                       under way in Qatar is the water security mega res-
                                                                                               56
gramme managers for five packages of works con-                           27                                         ervoirs project, which involves delivering enough
taining 204 separate projects. Construction on                                                                       storage capacity to hold 7 days’ worth of water.
this five-year investment plan is set to peak in                                                                     Under the scheme, five new reservoirs and pump-
2016 when it is estimated that 167 projects will                                                         Transport   ing stations will be built at Duhail, Umm Qarn,
be under way.                                                                                                        Mesaimeer, south Doha and Muathier, as well as
                                                           Construction
    Given the scale of the road network investment,                                                                  further reservoirs at existing stations. The total
                                                          Source: MEED Projects
it is not surprising to hear that Ashghal has more                                                                   project value is QR3.2bn ($884m) and the capac-
than 200 projects in the bidding phase and, from a                                                                   ity will be 561 million gallons. Contracts for
volume of projects perspective, is the most active                                                                   400km of pipelines and five pumping stations to
client in Qatar. However, by value, clients such as
                                                            MEED CONFERENCE                                          connect them to the water treatment and supply
                                                          Qatar Projects 2014
Qatar Petroleum (QP), Qatar Rail, Qatar General                                                                      network are currently out to tender, with awards
                                                          17-19 March 2014
Electricity & Water Corporation (Kahramaa) and                                                                       expected during the first half of 2014.
                                                          Grand Hyatt, Doha
Qatar Petrochemical Company (Qapco) are also                                                                            Looking ahead to projects likely to begin con-
                                                          Qatar’s major investment in capital expenditure
expected to feature heavily in 2014. A total of                                                                      struction in 2015, Qatar has $15.5bn of
                                                          projects offers immense potential, especially for
$37bn of schemes are currently out to tender, the                                                                    schemes in the prequalification phase and a fur-
                                                          those who build, develop and service the trans-
largest of which are two massive petrochemical                                                                       ther $35bn in design. These include the $12bn
                                                          port, real estate, and upstream and downstream
projects that will support the National Vision 2030                                                                  Sharq Crossing, which will run across Doha Bay
                                                          energy sectors. MEED’s Qatar Projects 2014 is
by diversifying economic growth and maximising                                                                       linking the cultural district of Katara and West Bay
                                                          the number one platform for those serious about
the potential benefits of the country’s gas                                                                          with the new airport to the south. A final design
                                                          winning business in Qatar.
reserves. For the petrochemicals sector, this                                                                        for the crossing has been a long time coming,
                                                               Secure your place in the Qatar projects mar-
means upping its production from 9 million tonnes                                                                    with earlier designs dismissed by the former emir
                                                          ket and stay updated on the big-ticket projects.
a year (t/y) to 23 million t/y by 2020.                                                                              Sheikh Hamad bin Khalifa al-Thani, who wanted
                                                          Visit www.qatarprojectsconference.com for
    To meet this goal, QP and Qapco have joined                                                                      something special. The latest iteration, which
                                                          more details.
forces to develop a 1.4-million-t/y ethane cracker                                                                   was announced by Ashghal in December 2013, is
at Ras Laffan. The complex will produce                                                                              certainly that – with three iconic bridges linked by
850,000 t/y of high-density polyethylene,               tract award is scheduled for August 2014, with               subsea tunnels creating the appearance of a fly-
430,000 t/y of low-density polyethylene,                start-up in 2018.                                            ing fish as the bridges leap out from the water.
760,000 t/y of polypropylene and 83,000 t/y of             At the same time, QP is working with the UK/                 Prequalification for the design and build con-
butadiene. The project manager for the scheme           Dutch Shell Group to develop a second major pet-             tracts is set to start at the end of February with
is the US’ Bechtel and four consortiums are             rochemicals complex known as the Al-Karaana                  tendering later in 2014. MEED understands that
understood to have submitted preliminary techni- project. The mixed-feed cracker will use ethane                     there will be between four and seven packages
cal submissions. Detailed submissions are due           and propane to produce 1.1 million t/y of ethylene           covering the three bridges, which vary between
in March and commercial bids in April. The con-         and 170,000 t/y of propane, along with other                 600m and 1.3km, and the tunnel sections.

4 | MEED | Qatar Projects 2014                                                                                                                          www.meed.com
Qatar Projects 2014

ORGANISATIONAL STRUCTURE OF QATAR’S PUBLIC SECTOR INSTITUTIONS

                                                                                                                                     The Emir

   Supreme            Supreme         Qatar Central       Supreme           State Audit            Public                                                             Supreme          Supreme           Supreme           General Sec-
   Council for       Council for         Bank             Council for         Bureau            Prosecution                                                           Education        Council for       Council of         retariat for
    Defence         Family Affairs                        Economic                                                                                                     Council        information         Health           Development
                                                         Affairs and                                                                                                                  & Communi-                             Planning
                                                                                                                                 Prime Minister
                                                            Qatar                                                                                                                        cation
                                                                                                                               Council of Ministers
                                                         Investment                                                                                                                   Technology
                                                           Authority

                                                                                      Qatar Statistics                         General Secretariat                                                                   Qatar Media
                                                                                                                                                                         Qatar News Agency
                                                                                         Authority                               of the Council of                                                                   Corporation
                                                                                                                                     Ministries
                             Institute of Adminis-                                                                             (Minister of State for
                             trative Development                                                                                  Cabinet Affairs)

      Ministry of Culture,                                                                                                                                     Ministry of Foreign                             Qatar Development
                                                      Ministry of Labour                                     Ministry of Interior
       Arts & Heritage                                                                                                                                               Affairs                                          Fund

                               Ministry of Social                            Ministry of Energy &                                    Ministry of Business                               Ministry of Economy
                                    Affairs                                        Industry                                                & Trade                                           & Finance

                                                                                 Qatar Gener-                                                                              General
                                                                                                                                  General            General                                   Qatar             Qatar
                                                                                 al Electricity                                                                          Retirement &
                                                                                                                                Authority for      Authority for                             Financial         Financial
                                                                                 & Water Cor-                                                                              Pension
                                                                                                                                  Tourism          Civil Aviation                             Centre           Markets
                                                                                   poration                                                                                Authority

                                  Ministry of
                                                                                                                                     Ministry of Business                               Ministry of Economy
                                Endowments &                                  Ministry of Justice
                                                                                                                                           & Trade                                           & Finance
                                Islamic Affairs

                                   General                                 Legal &            Intellectual
                                 Authority for                             Judicial             Property                                 Public Works                                         Recycle
                                   Minors                                  Studies             Protection                                  Authority                                          Centre
   Source: National                Affairs                                 Centre                Centre
   Development Strategy

   Given all this activity, there will of course be                         TOP CONTRACTORS BY QATAR AWARDS 2013                                                    BIGGEST CLIENTS BY VALUE OF PROJECTS*
challenges to overcome. Contractors gathering                                                                              Value*      Country of                                                                                Value
ahead of the Doha metro awards warned the cli-                                Contractor                                     ($m)      origin                        Client                                                      ($m)
ent that availability of materials was the biggest                            Joannou & Paraskevaides                       1,354      Cyprus                        Qatar Public Works Authority                              49,995
concern. Most of these, including raw materials                               HBK Contracting                             1,287.5      Qatar                         Qatari Diar                                               47,838
for cement and aggregates, must be imported.                                  Saudi Binladin Group                            840      Saudi Arabia                  Qatar Railways Company (Qatar Rail)                       40,200
“The main risk is simply getting the resources                                Porr Group                                      840      Austria                       Barwa Real Estate Company                                 25,899
into Qatar in the right place at the right time in                            Galfar al-Misnad                                839      Qatar                         Qatar Petroleum                                           18,273
the right quantities to do the work,” says the                                Salini-Impregilo                                728      Italy                         New Doha International airport                            17,540
director of a major contractor working on one of                              SK Engineering &                                728      South Korea                   RasGas                                                    11,400
                                                                              Construction                                                                           Qatar General Electricity & Water                          9,776
Qatar’s megaprojects. “Is there enough concrete                               Samsung C&T                                      700      South Korea                  Corporation (Kahramaa)
in Qatar to keep everyone running?”                                           OHL                                              700      Spain                         Qatar Foundation                                             8,689
   Those familiar with Qatar’s projects market will                           Qatar Building Company                           700      Qatar                         New Port Project Steering Committee                          7,400
remember the boom years of 2006-08, when                                     *=Estimated. Note: Contracts won by joint ventures are split equally.
                                                                             Source: MEED Projects                                                                   *=Planned or under way. Source: MEED Projects
ships were at sea for days or even weeks as they
waited to dock with much-needed construction
materials. Aware of the insufficient port capacity,                        try could rise to 18 per cent between 2016 and                                           As the UAE and Saudi Arabia ramp up their spend-
Qatar has been building the New Doha Port at                               2019, adding billions to development costs.                                              ing too, Qatar’s projects market is certainly begin-
Mesaieed. As phase 1 will not be operational                               However, it also states that there is time for                                           ning to feel the heat as it warms up for the World
until 2016, the inflation risk for construction                            steps to be taken to mitigate against this.                                              Cup. “The window of opportunity for engineering
materials remains a concern. In December, cost                                From a professional services perspective, it is                                       companies is now,” says the recruitment director
consultant EC Harris warned that in the worst                              interesting to note that most of the international                                       of an international consultant. That window will
case scenario, construction inflation in the coun-                         consultants working in Qatar are hiring into Doha.                                       remain open until at least 2020.

6 | MEED | Qatar Projects 2014                                                                                                                                                                                       www.meed.com
Qatar
         TURKEY Projects 2014

        SYRIA

                 IRAQ

                        KUWAIT     IRAN
                                                                                                                                             SELECTED QATAR PROJECTS
YPT
                                                                                                                                                     Sites and developments
                                  UAE                                                                                                                1 Barwa Financial District/
                 SAUDI ARABIA           OMAN                                                                                                           Qatar Petroleum District
                                                                                                                                                     2 Lusail City
                                                                                                                                                     3 Education City;
UDAN                                                                                                                                                   Qatar Science &
       ERITREA        YEMEN                                                                                                                            Technology Park
                                                                                                                                                     4 Doha Convention Centre
                                                                                                                                                       & Tower
                                                                                                                                                     5 Hamad International
                                                                                          North Field                                                  airport
                                                                                                                                                     6 Sharq Crossing
                                  Al-Shamal
skar                                                                                                                                                 7 Barwa City
                                                                                                                                                     8 Barwa Village
             Bahra
                  in                                                             9                                                                   9 Barzan gas development
                           Ras Ashairij
N                                                                    11                                                                              10 Al-Sejeel petrochemicals
                                                                                                                                                        complex
                                                                          Ras Laffan                                                                 11 Al-Karaana petrochemicals
                                                                                                                                                        complex
                                                                            10
                                                                                                                                                     12 New Doha Port
                                                                                                                                                     13 Barwa Commercial Avenue
                                                                                                                                                     14 Masaken Musaimeer
                                                                                                                                                     15 New Doha Zoo

                                                                                                    Doha                                             16 Baraha Motor City
                                                                                                                                                     17 Facility D independent
                                                                                                                                                        water and power project
                                                                                                                                                     18 Masaken al-Sailiya
                                                                          Al-Khor
                                                                                                                                                 2

                                                       Umm
                                                       Salal

          Dukhan

                                                                          Doha
                                                  Al-Rayyan
                                                           15
                                                  18
                                                                16               Al-Wakrah                                                       4

                                                                                               3                                                           6
                                                                                                                                        1

                                                                           17

                                                                                     12

                                                          Mesaieed               New                                                                                              5
                                                                                 Doha
                                                                                 Port

                                                                                                                                   13

                  Abu Samrah                                                                                                       7                                8

                                                                                                                                            14

                                                                                                        Major roads                                  Highway/road upgrades
                                                                                                        Land border                                  Sharq Crossing
                                                                                                        Planned metro/rail lines                     World Cup stadium
                                   SAUDI ARABIA

       8 | MEED | Qatar Projects 2014                                                                                                                          www.meed.com
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