Contracts worth just KWD0.6bn ($2bn) were awarded in Q2 2017, according to MEED Projects, half the 2016 quarterly average.
However, NBK expects implementation to improve in the remainder of the year as more delayed projects move ahead. H2 2017 could see as much as KWD3.5bn ($11.6bn) in new contracts, the report said.
Award activity in Q2 2017 was dominated by the power and transport sectors. According to MEED, the Ministry of Electricity and Water (MEW) awarded the largest contract in the GCC to Alghanim International in June 2017. The project, worth KWD176mn, is for the third phase of the Subiya combined-cycle gas turbine project.
Other major awards during the quarter included three road projects by the Ministry of Public Works (MPW). These were the Northern Regional Road (KWD92.8mn), the South Surra Road upgrade (KWD85.2mn), and the road linking Mina Abdulla and Wafra (KWD84.9mn).
Some delays in the bidding process have affected the construction, transport, power, and oil sectors, the report said.
Close to KWD2.4bn worth of the contracts expected to be awarded in Q2 2017 were postponed. This included 14 contracts worth a total of KWD808mn in the construction sector, eight contracts for KWD850mn in the transport sector, nine contracts valued at KWD456mn in the power sector, and four contracts totaling KWD230mn in the oil sector.
Only one contract was awarded in the construction sector in Q2 2017, though KWD1.7bn in contracts are in the bidding process.
In Q2 2017, Mabanee awarded Phase 4B of The Avenues at KWD63.7mn to the Ahmadiah Contracting & Trading Company.
Meanwhile, the KWD363mn contract for the Jahra Ministries Complex was delayed but could happen later in the year; the project would be the largest award in the sector in 2017.
According to MEED Projects, MPW may change the location of the project to South Al-Mutlaa, but there hasn’t been any official confirmation of this yet.
The Amiri Diwan tendered the new Palace of Justice building for bidding at an expected cost of KWD303mn. The project, to be executed on behalf of the Ministry of Justice, is expected to be the world’s tallest and largest judicial building.
Mohammed Abdulmohsin Al-Kharafi & Sons is the lowest bidder at KWD288mn, and bids are under evaluation.