The Ministry of Land, Infrastructure, and Transport to Dispatch Bidding Support Team to UAE from April 16-19
Operating as a national “One Team” system… Entering full-scale bidding competition after passing prequalification in February
The government is dispatching a bidding support team to the United Arab Emirates (UAE) to compete for a $13.6 billion project to construct a high-speed railway connecting Abu Dhabi and Dubai, capable of reaching speeds of 350km/h.
The Ministry of Land, Infrastructure, and Transport announced on April 16 that a bidding support team led by Minister Park Sang-woo would be sent to the UAE for four days, starting April 16, to actively pursue bidding activities for infrastructure projects such as high-speed railways, airports, and renewable energy.
According to the Ministry, the UAE’s bidding amount in the first quarter of this year was $2.4 billion, a more than six-fold increase from the same period last year. The Middle East region is a core market, accounting for about half of all overseas construction bids. Within this region, the UAE ranks second after Saudi Arabia, with a cumulative bidding amount reaching $86.9 billion since the first contract in 1974.
The bidding support team plans to meet with Suhail Mohamed Al Mazrouei, the UAE Minister of Energy and Infrastructure, on April 18 to discuss cooperation measures involving railway and energy infrastructure. The UAE government is promoting the construction of a 350km/h high-speed railway between Abu Dhabi and Dubai as key national infrastructure with a budget of $13.9 billion.
The Ministry is operating the “National One Team” system in collaboration with public organizations and private companies like the Korea Rail Network Authority, KORAIL, Hyundai Rotem, and POSCO E&C. The Korean government entered the main bidding competition after passing the prequalification for the UAE’s high-speed railway systems and vehicles in February.
The government aims to compete with other countries by showcasing excellent technology, cost-competitiveness, and an integrated solution providing services from project management to maintenance. Additionally, they plan to highlight the economic viability of the Korean high-speed rail model, referencing recent successful exports of high-speed railway vehicles to Uzbekistan and a metro project of significant scale to Morocco.
The bidding support team will also discuss cooperation plans in the renewable energy sectors such as solar and hydrogen, and support bids for chemical and power plant projects. The UAE is pursuing projects amounting to hundreds of billions of dollars, including oil storage facilities, battery energy storage systems (BESS), and combined cycle power plants.
Based on the visit of UAE President Mohammed bin Zayed Al Nahyan to Korea last year and a memorandum of understanding (MOU) for joint market entry in third countries, the government will negotiate infrastructure development plans in regions requiring post-conflict reconstruction or those with high growth potential, utilizing Korean technology.
On April 17, the government will meet with Ahmed bin Saeed Al Maktoum, a member of the Dubai royal family and chairman of the Emirates Group, who also serves as the director of Dubai Civil Aviation Authority.
The agenda includes supporting bids for the $32 billion “Al Maktoum International Airport Expansion Project” and discussing aviation cooperation plans between the two countries. The Al Maktoum International Airport project is a national project led by the Dubai Civil Aviation Authority to transfer the functions of the overcrowded Dubai International Airport.
The government plans to actively highlight Korea’s experience in achieving rapid growth at Incheon International Airport and the successful completion of the expansion of its second passenger terminal, integrating advanced information technology (IT). The Ministry of Land, Infrastructure, and Transport stated that the Dubai Civil Aviation Authority expressed its welcome for the participation of Korean companies in the bidding competition.
Minister Park Sang-woo stated, “We will expand overseas construction bids, which have been focused on chemical and power plants, to high-speed railways, airports, and renewable energy sectors to prepare for the post-oil era and achieve the bidding target of $50 billion by 2025 ahead of schedule.”
Sejong = Reporter Kang Seung-gu kang@dt.co.kr