In a bid to meet the rising demand for water in Al-Ain, and the water and power needs of the northern emirates, the United Arab Emirates’ (UAE) offset program office has recently awarded a $120 million tender to a German-Emirati consortium for installing a water pipeline, which will carry fresh water from Fujairah desalination, power plant and pipeline project.
The consortium was set up by the Emirates Al-Jaber Energy Services Company and the German Technip Company, according to Al-Hayat daily. The consortium will extend a 185-kilometer water pipeline to Al-Ain city and a 16-kilometer water pipeline to Zeid city. The consortium was also contracted to provide and install water storage and pumping facilities.
The Al-Jaber/Technip proposal outbid three other joint ventures: South Korea's Doosan Heavy Industries & Construction company, formerly know as Hanjung, the local Pan Arab Enterprises for Pipeline Construction with India's Larsen & Toubro, and Athens-based Consolidated Contractors International company (CCC) with Saipem and Snamprogetti, both of Italy, according to the official Emirates news agency, WAM.
Set up in 1992, the UAE's Offsets Group (UOG) required defense contractors with contracts worth more than $10 million to establish joint venture projects, with local business partners that, yield profits equivalent to 60 percent of their contract value usually within seven years.
To date, more than 30 projects have been launched, including, inter alia, a hospital, an imaging and geological information facility, a leasing company, a cooling system manufacturing company, an aquiculture enterprise, Berlitz Abu Dhabi a language instruction center, and a firefighting equipment production facility. — (MENA Report)
© 2001 Mena Report (www.menareport.com)
