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Qatar to spend $20bn on roads in five years

Qatar to spend $20bn on roads in five years
Qatar has allocated $20bn that will be spent over the next five years to upgrade the country’s road network, says a new report. Of these, roads planned or projects underway in the country total $18bn, Commercialbank Capital said in its first report on “Qatar Construction Sector”.

The total planned or projects underway in the GCC countries are valued at about $128bn. In the GCC region, Qatar was the “most active” roads market in 2011 with the Public Works Authority (Ashghal) awarding $2.3bn worth of contracts last year, the report said. Ashghal’s plan to build some 136km of new roads in Qatar by 2014 will provide significant opportunities to local and foreign contractors and material suppliers, it felt.

“The investment in Qatar’s road sector is set to continue with Ashghal planning new roads in the country. We believe the execution of new roads will be important to reduce traffic congestion,” said Commercialbank Capital. The major upgrades in roads infrastructure were undertaken even before the country won the bid to host the FIFA World Cup 2022. Strong economic growth in the past few years has led to a rapid increase in population, resulting in “significant congestion” in Doha. The development of the roads network is essential for the overall infrastructure development of the country. The preparation for the World Cup 2022 will also speed up the process of construction of roads to ensure decrease in traffic congestion, an increase in regional accessibility and minimise the environmental impact of the transportation network.

Qatar is likely to see the announcement of $7.8bn worth of projects over the next two years, the report said. The country is expected to finish its planned roads network by 2016-end, well ahead of the FIFA World Cup 2022. According to Commercialbank Capital estimates, the total size of the road and bridges market in Qatar will be $26.5bn at the end of 2020. “We believe new projects will be announced in line with the rising population as well as the trend to own cars in the region resulting in further upgrades in the country’s infrastructure,” said Commercialbank Capital. The government’s $20bn plan includes investments in improving its sewage networks. Projects worth $362mn have been awarded in 2011 for improving sewage networks around Doha.

The Doha North Sewerage Treatment and Associated Works Project is a $2.2bn four-part expansion. The improvement in sewerage networks at the Doha North Project is important as it is likely to witness increase in flows.

Doha North will witness projects such as Lusail, the Pearl and Gharaffa, West Bay, as well as alleviate some of the pressure placed on the existing Doha West Sewerage Treatment Works (STW).

Three major road projects that are underway further substantiate the five-year plan to upgrade the road network of the country, the report said.

The Doha Expressway, under construction, is valued at $2bn. The Dukhan Highway, also under construction, has been valued at $275mn and the largest proposed project the Lusail Highway that is being tendered has been valued at a significant $687mn.
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