New port in project pledge to local firms

By Santhosh V Perumal/Business ReporterThe new QR27bn port at Mesaieed, whose first phase is slated to become operational by first quarter of 2016 and final phase by 2030, will allocate more than 50% of the projects to local companies, a move that is expected to give much fillip to the domestic private sector.“We are well on track (of becoming operational by 2016),” Abdul Aziz al-Naimi, head of the Steering Committee, told reporters after being briefed about the 26.5sq km project, which includes a new port, a new base for the Qatar Emiri Naval Forces and the Qatar Economic Zone 3.Expressing the hope that the first phase of container terminal with a capacity of 2mn TEU (20ft equivalent unit) to be operationalised by the first quarter of 2016, Nabeel Mohamed al-Buenain, project executive director, New Port Project (NPP), said 10% of the total works had been completed and its main contractor China Harbour Engineering had completed 38% of excavation.“If there are any delays from the contractors/subcontractors, we have the mechanism to ensure the recovery,” he said.This assumes significance in the backdrop that the New Doha International Airport inauguration had to be put off due to delays from one of its contractors.“The port project has a budget of QR27bn, of which more than 50% will go to  local companies,” al-Buenain stressed.So far 18 projects worth QR9bn have been tendered,  of which 50% have been awarded to local companies. Al-Buenain said the policy had been to promote local companies and  this “will not change.”Any subcontractor also had to be a local company, he said, adding that it would ensure smaller local companies also got a fair treatment at par with larger ones.The NPP expects to invite tender for eight projects this year, including that for general port equipment, access bridge, security facilities, infrastructure and utility buildings, port administration and government offices infrastructure and buildings, port marine services area infrastructure and coast guard terminals.The NPP tender committee, he said, was committed to working with the most suitably qualified companies while also creating opportunity for local businesses.For a local company to qualify, the NPP has set specific criteria such as acceptable cash flow, experience, equipment, skills and staff competency, he said.Local companies can also participate in a joint venture, provided the Qatari company has at least 51% stake in the venture.A project can have foreign contractor/subcontractor, provided there are no substitutes for them in the local market but if the NPP finds it otherwise, whoever is responsible for engaging overseas entities will be liable to pay liquidated damages, he cautioned.After completing the first phase, al-Buenain said the second container terminal with a capacity of 2mn TEUs was expected to be operational by 2022 and another 2mn TEU terminal would come up by 2030. In all, the port will have 6mn TEU capacity.