International Consortia Submit Bids For Mafraq - Ghweifat Highway PPP Project

The Department of Transport (DoT) in Abu Dhabi announced today that it has received bids from three international consortia competing for the 25 year concession to upgrade, finance, operate and maintain the Mafraq - Ghweifat Highway.

The Highway, which stretches 327 km from Mafraq to the border at Ghweifat, provides the only access to the Western Region, including the industrial centre of Ruwais and several important tourist destinations.

The project is the first transport-related public private partnership (PPP) project to be undertaken in the GCC. It will see the highway widened to four lanes in each direction (three in the less-trafficked portions near Ghweifat) and upgraded to meet world’s best standards in highway design, safety, communications and services to users.

Once completed, the winning consortium will be responsible for maintaining and operating the upgraded highway while meeting stringent performance standards relating to safety, availability and quality for a period of 25 years.

Payment to the Consortium will be via a series of equal payments spread over 25 years. These ongoing payments will be subject to deductions for failure to meet the prescribed performance standards and will ensure the consortium remains accountable for the operational performance of the road over the 25 year period.

This PPP payment method differs significantly from the more traditional approach where the contractor is paid in full as construction is completed, and has little or no involvement or accountability for the operational performance of the road over the long term.

International Search

The Department of Transport carried out an extensive international search to identify the world’s best companies in the fields of infrastructure financing, design, construction and operations to deliver the project.

From this search ten international Consortia, or groups of companies, were invited to submit statements of their qualifications. Following a detailed and extensive evaluation a shorter list of consortia was identified as having the strongest financial and technical delivery qualifications and invited to submit detailed proposals for the project.

The following are the three consortia to submit proposals for the project:

IRTIBAAT Consortium – comprising global banking, financial, advisory, investment and funds management services firm Macquarie Capital Group; equity participants Abu Dhabi Commercial Bank and Construtora Norberto Odebrecht; construction firms N.V. Besix and Al Jaber Transport & General Contracting LLC; Transfield Services International Pty Ltd, provider of operations maintenance and asset management services; and design consultants Mouchel Middle East.

Mafraq Motorway Group – comprising European construction group, Strabag SE; UAE civil engineering and building contractors, Saif Bin Darwish; Construction group Joannou & Paraskevaides Ltd; Concession Operations, J&P AVAX SA; and Egis Projects SA.

MTD-CSCEC Consortium – comprising international infrastructure developer and civil contractor, MTD Group; China State Engineering Construction Company; UAE contractor, Ghantoot Transport.

“The project has attracted substantial international interest – the companies competing to deliver the project are among the largest and best in their field. The project also requires significant input from local companies, who will work closely with the international firms and benefit from the transfer of international best practice.” Said Eng. Faisal Al Suwaidi, General Director of Main Roads for the Department of Transport in Abu Dhabi.

“Each of the three Consortia brings with it the international best-practice, local know-how and financial strength to provide a world-class Highway which will create a new standard in regional transport infrastructure - reducing accidents and improving travel reliability on this critical link to the Western Region. This approach illustrates our Department’s vision of creating a world-class, sustainable transport network incorporating the latest technologies and techniques,” Eng. Al Suwaidi added.
 

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