Abu Dhabi's utilities sector looks set to power growth within the construction industry, as the emirate in the UAE presses ahead with four independent water and power projects (IWPPs).

Abu Dhabi is expected to shortly select a bidder for its third IWPP at Shuweihat, while its latest IWPP offering is for the expansion and privatisation of its power station at Umm Al Nar.

The emirate's construction sector has been hit by a paucity of projects over the past few years but there have been signs of improvement with the launch of works on the Abu Dhabi Trade Centre, the newly-awarded Takreer/Atheer headquarters and Khalifa Park. Work is also set to resume on the Grand Mosque project and the ongoing Abu Dhabi Airport expansion is expected to gain considerable impetus when tenders are announced possibly later this year for its unusual terminal.

Plans have also been announced for an estimated Dh1 billion ($273 million) convention centre and Abu Dhabi World Trade Centre.

Another growth sector has been the development of shopping malls to cater to the requirements of the emirate. At least two malls opened to the public this year. In addition, a large number of commercial buildings are under construction, including the prestigious National Bank of Abu Dhabi (NBAD) headquarters, which will be the emirate's tallest tower when it reaches completion by mid-2002 (see page 62). Vying for this position is the Abu Dhabi Investment Authority Tower (Adia Tower), work on which has just started.

According to a recent study by Abu Dhabi Municipality and Town Planning Department, residential and commercial projects and as well as infrastructure and roads will take up 47 per cent of Abu Dhabi emirate's land area by 2010.

The study was prepared by the Planning Department to assess future developments and projected population growth. To cope with the increasing number of people on the mainland, the Planning Department has begun a wide-ranging land development programme. The department will also take the opportunity to use nearby islands, such as Saadiyat for future infrastructure needs.

Meanwhile, work on Abu Dhabi's major petrochemical complex, which was a source of considerable sustenance for the construction sector, is in the final stages of completion.

Water & electricity

The Abu Dhabi Water and Electricity Authority (Adwea) has invited bids from selected international banks, engineering consultants and legal firms for advisory roles on the fourth IWPP. The project will involve the acquisition of the existing Umm Al Nar station, located east of Abu Dhabi city, and expanding it on a build-own-operate (BOO) basis to about 1,750 MW and 150 million gallons per day (gpd) by 2006.

The Umm Al Nar project will be implemented along the lines of the Taweelah A-1, Abu Dhabi's second IWPP. A key part of the advisory roles will be to determine what assets will be maintained and rehabilitated at the existing complex and which will be decommissioned. The developer is expected to acquire existing new assets at the complex. These include desalination units nine and 10, commissioned by France's Sidem last year, and the 62.5 million gpd of new desalination capacity currently under construction by South Korea's Doosan Engineering & Construction Company (formerly known as Hanjung).

In addition, the developer will take over some older units, which will remain in operation until 2006, when the new capacity is planned to come on stream.

The Umm Al Nar complex has been developed in phases since the mid-1970s. As from January 1999, it has been operated by the Adwea wholly-owned subsidiary Umm Al Nar Power Company, which looks after generating capacity of 1,148 MW and 92 million gpd.

The greenfield Shuweihat project, expected to cost around Dh6 billion, will comprise a natural gas-fired power generation and desalination facility to be built at the Shuweihat/Jebel Dhana site, 250 km west of Abu Dhabi city.

The project will add some 1,500 MW of electricity generating capacity and some 100 million gallons per day of desalination capacity, providing roughly a quarter of the electricity and water needs of Abu Dhabi. Commercial operation of the first power unit is projected for spring 2003, and full commercial operation is envisaged before summer 2004.

Selection of a bidder for the Shuweihat project is imminent, with the three finalists comprising a group led by the US' CMS Energy and including the UK's International Power, a joint alliance of Tractabel with Japan's Mitsui and Company and Tokyo Electric Power Company (Tepco) and AES Corporation of the US which bid alone.

Abu Dhabi has already awarded contracts for two IWPPs. A Franco-Belgian consortium of TotalFinaElf and Tractebel last July signed a $1.5 billion contract with Adwea to add 500-700 MW to Taweelah A-1's current capacity of 225 MW and more than double its water desalination capacity from 29 million gallons per day (mgpd) to 82 mgpd. The project is scheduled to be completed by mid-2003.

The consortium will hold 40 per cent in a new utility company which will implement the build-own-operate project, with Adwea picking up the remaining 60 per cent.

In 1998, CMS Energy won the contract for the Taweelah A2 power plant, the emirate's first IWPP.

For the first two IWPPs, Taweelah A-2 and A-1, Adwea's advisory team was made up of Germany's Fichtner (technical), Credit Suisse First Boston (financial) and White & Case (international legal), with Al-Tamimi & Company and Simmons & Simmons acting as local legal advisers. For the Shuweihat IWPP, the advisers are Germany's Lahmeyer International (technical), Deutsche Bank (financial), White & Case and Simmons & Simmons.

Airports

Abu Dhabi International Airport, with its $600 million expansion programme under way, is on course to become a major aviation hub in the region. New facilities and refurbishment will help the airport cope with its annual growth rate of 12 per cent in passenger traffic and 15 per cent in cargo throughput.

The centrepiece of the expansion is a futuristic new satellite terminal, which will have 4,000 sq m of duty-free retail space. The terminal will be made of titanium to ensure its lightweight, making it the first of its kind in the world. Tender documents for the project are expected to be issued later this year.

The airport will also feature what is expected to be the Middle East's first rapid transit shuttle system linking the existing satellite terminal to the new building. France's Aeroports de Paris has the Dh31.3 million contract to design and supervise construction of the new satellite terminal while Halcrow International has the contract to design a 4,100-m second parallel runway. Completion of the terminal and runway is expected by end-2004.

In addition, work is expected to begin on 18 new aircraft stands, new passenger lounges, a 200- room airport hotel complete with a nine-hole golf course and upgrading and extension of facilities at the existing airport hotel. The UK's Shankland & Cox is the design consultant for the golf course and the hotel.

The refurbishment of the Abu Dhabi airport is nearly complete and work is under way on the first phase of a new Dh35 million cargo terminal. Worth Dh17 million, the first phase includes construction of a freight storage building providing 8,500 sq m space on the ground floor and 1,500 sq m on the mezzanine level. The new facility is designed to supplement the existing cargo freight capacity to meet increasing demand.

Abu Dhabi Department of Civil Aviation has recently awarded Raytheon Company a Dh110 million contract to supply and install air traffic control systems at Abu Dhabi and Al Ain international airports.

The Al Ain airport is being renovated and expanded at a cost of Dh70 million. The project has four major components: a new cargo terminal, catering complex, centre for ground services equipment, and expansion and renovation of the present terminal.

The new catering building will cover 2,600 sq m while the new cargo complex will cover 3,887 sq m. The passenger terminal will spread over 10,050 sq m.

The expansion, expected to be completed in 2003, will double the facilities and enable the airport to handle 50 per cent more traffic.

A new automated baggage claim area will be installed, replacing the present manual system. Three new lounges, including a VIP lounge, will be built in the terminal. The duty-free area will be increased by 50 per cent and will be moved to the ground floor.

Meanwhile, plans are in hand to expand Abu Dhabi International Airport's City Terminal order to handle more travellers. The terminal, which opened in mid-1999 and serves 12 airlines, has so far handled 25,000 passengers.

Grand Mosque

The Italian joint venture of Impregilo-Rizzani de Eccher is set to restart work soon on the Grand Mosque project in Abu Dhabi, after reaching an agreement with the client, Abu Dhabi's Works Department. The Italian group was awarded in 1996 the Dh1.463 billion ($398 million) contract to build the Shaikh Zayed bin Sultan II Mosque between the Mussafah and airport roads.

The Italian joint venture has mobilized more than 500 workers and a tender has also been issued for the completion of the main structure works. The 18-month contract is estimated to be worth Dh170 million ($46.3 million).

The original, 42-month contract called for the construction of a mosque on a 50,000-sq m area as well as extensive landscaping works. The mosque was designed to have four minarets, each 115 m high, and a prayer hall large enough to accommodate 7,000 worshippers. The decoration was to be in white marble, adorned with a series of mosaics.

Two further developments were planned at the grand mosque site. The first involved the construction of parking areas and the creation of gardens to surround the mosque. The final phase covered the construction of an Islamic centre opposite the mosque. The consultant on the project is Tractebel Al Khaleej, the Abu Dhabi-based affiliate of Belgium's Tractebel.

Hotels & leisure facities

Consultants have been appointed for Abu Dhabi convention centre which will be built to host the GCC Summit in 2004. The project entails the construction of a convention centre, six royal suites for heads of state, ministerial suites and a 400-room hotel. Tenders for the first of 14 packages for the project are expected to be announced shortly. The US' Turner International has been appointed project manager and the UK's WAT&G is the architect.

As part of a multi-faceted programme to attract tourists to the emirate and provide residents with more recreational facilities, work is expected to begin in the next few months on holiday chalets and a major hotel on the Sammaliah Island, northeast of Abu Dhabi City.

The plan has been approved and the project will commence as soon as the designing stage is completed, according to the Emirates Heritage Club, which supervises the island.

The project is part of a Dh400 million masterplan to redevelop Sammaliah Island and is being carried out by the Public Works Department. According to the redevelopment plan, the island will comprise a scientific research centre, laboratories, an animal park, a camel racetrack, a village that can be reached only by foot and a sailing centre.

Rotana Hotels, Suites and Resorts is investing a total of Dh500 million on two major extension projects and the completion of a third property. On completion of the extensions at the Abu Dhabi Grand and Beach Rotana Hotel and the completion of the new Al Maha Rotana Suites, the group is expected to have 30 per cent of the five-star rooms in Abu Dhabi.

The Beach Rotana Hotel is being expanded at a cost of Dh250 million. Some 190 new sea-facing rooms, together with five new executive floors and three presidential suites will be completed in the next 15 months. The work, being carried out as part of the Abu Dhabi Trade Centre (see Commercial buildings), will also see the addition of a new 1,400 sq m grand ballroom with a capacity for 2,000 guests, and seven new meeting rooms.

The Dh120 million expansion of the Abu Dhabi Grand involves a new five-storey block which will raise the number of hotel rooms from 197 to 305.

The expansion will also create a food and beverage area with underground parking and a ballroom for 500. The new Dh120 million Al Maha Rotana Suites will have 290 suites and serviced apartments, meeting rooms and restaurants when it is completed by mid-2002.

Another major resort is the Dh330 million ($89.85 million) Al Raha Hotel and Beach Resort which is being built 15 km from the city centre and opposite the Khalifa City. Last December, the first tender package was awarded to Abu Dhabi's Al Jaber Contracting for the construction of 28 two, three- and four-bedroom chalets. Two of the royal chalets will be built on artificial islands.

The project will include a five-star hotel which will have 90 guest rooms, six diplomatic suites and five royal suites, and a 38,000 sq m shopping mall. Tenders for the hotel components are expected to be issued this month. Revised bids will also be invited for the mall.

Earlier this year, the Sheraton Abu Dhabi Resort and Towers reopened after a major Dh30 million renovation. The expansion covered 12,000 sq m.

The second phase of the renovation programme covers the ballroom, lobby and mezzanine floor, and the refurbishment of 155 guest rooms. This is expected to be complete by year-end.

The third and final stage will start in early 2002 and cover the restaurants and the remaining 100 guest rooms. All food and beverage outlets will have a sea view.

Work has started on the Dh230 million Khalifa Park project. Situated in the Old Airport area on Al Qarm Corniche, the park will be the first of its kind in the Middle East. The project will be completed by July 2003, according to Abu Dhabi Municipality, which is executing the project.

Spread over an area of 430,000 sq m, the park will house a marine history museum, several public gardens, oasis, a mosque, a huge open theatre and a festival stand. The park will be located on the eastern coast, which is a fairly low-lying area and supports mangrove growth. When completed the park will provide a variety of attractions, boulevards, mangrove-laden beaches, shaded promenades and spacious flowerbeds.

Also planned is an artificial coast to be used as a dockyard for traditional shipbuilding.

The park will be able to accommodate 10,000 people. The theme garden will include a replica of the famous Al Hamra Palace in Spain, highlighting Islamic architecture. A festival stand will comprise two huge separate halls linked by a glass bridge over a water channel. The theatre will have capacity for 10,000 people.

According to Abu Dhabi Municipality and Town Planning Department, the project is part of a municipality plan to increase landscaping and provide more recreational facilities in the capital.

Foton is launching two new Foton Worlds, one each at Marina Mall in Abu Dhabi and in Al Ain's Al Jimi Mall, at a total cost of Dh80 million. These edutainment facilities will be ready soon.

The new Dh45 million Foton World in Marina Mall will cover 4,515 sq m and is being themed as Seaworld. Foton World Marina Mall will have a Wonderhall interactive scientific centre, a Starlab planetarium astrology base, a children's care facility and play space and hospitality and party rooms.

Commercial buildings

Work on the NBAD headquarters is well in progress, the building having reached half its eventual height. The 173-m building, being built by Al Habtoor Engineering and Murray and Roberts Joint venture, is expected to be the emirate's tallest tower when completed by mid-2002.

Another skyscraper vying for the "tallest tower" status is the 38-storey Adia towers, work on which has just been launched. The Abu Dhabi Investment Authority, ADIA, has awarded a Dh477.1 million contract to South Korea's Samsung Engineering Corporation for the construction of its new headquarters. The twin-towers building, which will be located close to the British Embassy, has been designed by internationally KPF to reach a height of 194 m.

Work is under way on Phase Two of the Abu Dhabi Trade Centre development which involves the construction of four towers on top of a shopping mall which was completed late last year.

The UAE-based Arabian Construction Company (ACC) has a contract worth an estimated Dh350 million ($95.37 million) to carry out the second phase.

Two 14-storey towers will house offices while a third tower of 13 storeys will contain furnished apartments. The fourth tower, also 13 storeys high, will be an extension to the neighbouring Beach Rotana Hotel.

ACC will also build a car-park and a lobby which will connect the new hotel tower to the existing hotel. Work is scheduled for completion by next April.

The first phase comprising the shopping mall cost Dh500 million. Canada's Cansult is the consultant to the project.

Meanwhile, Addar Real Estate Services, the first institutional real estate developer in Abu Dhabi, will develop the Abu Dhabi World Trade Centre in partnership with the General Exhibitions Corporation and other institutional investors.

The first phase of the Abu Dhabi World Trade Centre will cost more than Dh400 million and involves the development of a 100,000 sq m mixed-use space, including offices serviced apartments and a 5,000 sq m retail and entertainment complex.

Al Habtoor Engineering and Murray and Roberts Joint venture has recently won an estimated Dh252.9 million ($68.9 million) contract for the construction of the new joint headquarters for Abu Dhabi Oil Refining Company (Takreer) and Abu Dhabi Gas Processing Company (Atheer).

The new headquarters is to be built on top of the existing car-park at the Zadco/Gasco complex. It involves the construction of two 29-storey office towers, four additional levels of parking, a new pump room and underground water storage tank, and a new building to house transformers, generators and switchgear.

The contract is scheduled to take 28 months. The consultant is the UK's WS Atkins International. The US' DMJM International is the project manager.

The venture is also building a Dh51 million commercial building. The project comprises 18 storeys with three basements. The company's scope of work includes completion of structural and architectural works for a total covered area of 24,000 sq m, including diaphragm walls and secant piling. Work is expected to completed in January next year.

Earlier this year, the joint venture completed work on the Dh255 million Marina Mall. The project is spread over 117,000 sq m area and comprises basement, ground and two levels. The project also boasts what is believed to be the Middle East's largest screen (21x9 m) at its nine-screen cineplex.

Tenders are under evaluation for the construction of a headquarters for Al Wathba National Insurance Company on Najda Street. Estimated to be worth Dh40 million, the project includes 16 typical floors, two penthouses, two basement levels, and a ground a mezzanine level.

The newly-opened Dh500 million Abu Dhabi Mall plans to expand retail and parking areas following demand for retail space. With 95 per cent of available space already taken, the entire leasable space is expected to be filled by September.

Located in the Tourist Club area, the mall, covering 200,000 sq m, comprises three levels of shopping and entertainment, with the top level reserved for a leisure complex and food-court.

The mall offers two levels of underground parking apart from a covered parking at ground level and can accommodate up to 3000 cars.

The Meena Retail Park, based on the western style "out-of-town" retail park, is now receiving the final touches. The project near Mina Port offers a leasable space of 45,000 sq m.

The Dh45 million Al Jimi Shopping Centre, offering 46,000 sq m space, was opened in Al Ain earlier this year.

Oil & gas

Abu Dhabi Polymers Company (Borouge) expects to start up its new ethylene and polyethylene (PE) plants at Ruwais shortly. The 600,000 tpy ethylene plant is to be launched first followed by the 450,000 tpy PE plant.

Abu Dhabi Polymers is a 60:40 joint venture between UAE's state-owned Abu Dhabi National Oil Company (Adnoc) and Scandinavia's Borealis.

Abu Dhabi Oil Refining Company (Takreer) is building a 300,000 tonnes per year (tpy) lube base oil refinery at Ruwais. Parsons Corporation of the US is the project management consultant on the development which is targeted for completion in 2005.

Earlier this year the Abu Dhabi Oil Company (Adoc) completed construction of a pipeline network to transport gas flared at the company's Mubarraz oil field. Adoc is also completing its wastewater disposal project.

Adoc, the first Japanese oil company in Abu Dhabi, has been tackling environmental protection through a series of projects which include sour gas injection, zero gas flaring and waste water disposal.

Meanwhile, the full flow of 500 million standard cubic feet per day (scfd) of natural gas from Abu Dhabi to Dubai began recently. Natural gas is being supplied from Maqta near Abu Dhabi to Jebel Ali in Dubai through a 48-inch, 112-km pipeline installed at a cost of $90 million.

Eventually, Abu Dhabi Gas Company (Atheer) will supply gas to Mussafah for the Abu Dhabi Industrial Zone and to Shuweihat later. No date has been set.

Production has recently started at Abu Dhabi's Onshore Gas Development (OGD) Phase 2, although full production at all three units has yet to be attained. The commissioning of the project will enhance the total gas processing capacity of Atheer to 3,000 million cfpd. The OGD Phase-2 was launched in 1997.

Among the principal objectives of Atheer is the development of natural gas resources in Abu Dhabi to secure additional supplies of natural gas for future domestic demand, particularly for electricity and water desalination plants and chemical industries, in addition to injection into oil reservoirs to promote oil production.

In addition, the $3.5 billion Dolphin project promoted by the UAE Offsets Group will bring 2 billion cu ft per day of Qatari natural gas to the UAE via a 350-km subsea pipeline starting from 2005. About 1 to 1.5 billion cu ft per day of gas will be consumed by the Al Taweelah power project.

Other projects