Abu Dhabi: The Department of Transport in Abu Dhabi announced Sunday that it has received bids from three international consortia competing for the 25-year concession to upgrade, finance, operate and maintain the Mafraq-Ghuweifat Highway.
The 327-kilometre highway from Mafraq to the border at Al Ghuweifat, provides the only access to the Western Region, including the industrial centre of Al Ruwais and several important tourist destinations.
The three consortia that have submitted proposals for the project include IRTIBAAT Consortium, the Mafraq Motorway Group and the MTD-CSCEC Consortium.
The project is the first transport-related public private partnership (PPP) project to be undertaken in the Gulf Cooperation Council region.
It will see the highway widened to four lanes in each direction (three in some portions near Al Ghuweifat) and upgraded to meet international 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.
Substantial interest
Eng. Faisal Al Suwaidi, general director of main roads for the Department of Transport in Abu Dhabi, said: "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."
Payment to the consortium will be made via a series of equal installments 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 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.
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 further evaluation, a shorter list of consortia was invited to submit detailed proposals for the project.
