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Qatar to reschedule 15 pct of designed projects -sources

* Estimated $140-200 bln of projects in a pipeline

* World Cup projects to be prioritised over others

* Stadiums to cost $4 bln some-more than planned

* Logistical, cost issues might check other projects

* Analyst says cost could surpass bill by $80 bln

By Praveen Menon

DOHA, Mar 20 (Reuters) – Qatar is approaching to reschedule
about 15 percent of a designed building projects for coming
years and go over budget, amid a pull to finish preparations
for a 2022 World Cup soccer tournament, sources informed with
government process said.

After it won a right to horde a World Cup in 2010, the
tiny nation, with a race of about 2.1 million, announced
plans for a raft of projects that would renovate it over the
following 15 years. They embody a new airport, roads, port
facilities, railways, stadiums and other infrastructure.

The supervision has not expelled a comprehensive, detailed
schedule of a construction plans, yet analysts guess they
will cost between $140 billion and $200 billion by the
early 2020s, paid for with a country’s immeasurable healthy gas
wealth. This is approaching to yield a excavation to a foreign
construction firms that will do most of a work.

But so far, agreement awards and work on many projects have
been slower to get started than a business village expected,
apparently given of official and formulation problems. If
they are not rubbed carefully, a projects could destabilise
Qatar’s tiny economy, formulating bottlenecks and pushing up

A supervision source, disappearing to be named underneath briefing
rules, concurred that Qatar faced pressures in pushing
through a projects and would have to delayed some, yet he
stressed that construction privately for a World Cup would
take priority and be finished on time.

“About 15 percent of a projects will be rescheduled,” the
government source told Reuters.

“All projects compared directly with hosting a World Cup
cannot be rescheduled given they have to finish by 2022. But
there are others that can be moved.” The source did not give

Qatari officials have declined to plead changes to the
construction report publicly. Earlier this week, a central
bank administrator pronounced a supervision was approaching to pointer contracts
for construction projects value as most as $50 billion this
year, yet he did not elaborate.

Yasser al-Mulla, plan manager during Al-Rayyan Precinct for
the Supreme Committee for Delivery and Legacy, that is handling
construction of contest venues, pronounced this week that all World
Cup projects were on lane to be finished on time.


A change in Qatar’s care might be partly obliged for
a slower gait of construction. Last June, Sheikh Tamim bin Hamad
al-Thani, 33, took over from his father as emir.

He has transposed some comparison mercantile officials and in a
policy debate final November, pronounced he was quite penetrating to
prevent high acceleration and corruption. Those functions could be
helped by implementing projects during a some-more totalled gait than the
original plans.

Another cause is a perfect problem of convention enough
construction workers, materials and apparatus from around the
world. Qatar, a world’s largest exporter of liquefied natural
gas, needs an additional 400,000 workers for a subsequent proviso of
development, a supervision source said.

Qatar is approaching to face augmenting foe for regional
construction resources in a subsequent few years from Saudi Arabia,
which is accelerating a housing construction programme, and the
United Arab Emirates, where Dubai is scheming to horde a 2020
World Expo.

By loitering some projects, Qatar can safeguard that a own
banks and companies have a ability to hoop a incomparable share
of a contracts, tying a border to that it needs to rely
on bigger unfamiliar firms.

A third cause appears to be cost. Qatar does not seem to
face any problem financing a projects; a government’s
budget over-abundance was $27.3 billion, or a outrageous 14.2 percent of
gross domestic product, in a mercantile year to final March.

Nevertheless, negligence some projects might save money, if it
allows resources to be used some-more efficiently.

“The final output might never be done open and will be
handled by a government,” Anthony Holmes, executive of the
London-based Institute for Infrastructure Studies, pronounced during a
conference in Doha on Wednesday.

“But, if a opening conforms to tellurian norms, a final
cost might surpass a strange bill by $80 billion or around 50
percent of one year’s GDP,” pronounced Holmes, who has advised
companies on World Cup-related projects.

Qatar’s work costs will substantially arise given of publicity
about deaths of migrant construction workers building World Cup
infrastructure, a International Monetary Fund pronounced in a report
this month.

Britain’s Guardian journal reported in Sep that
dozens of Nepali workers had died during a summer in Qatar and
that labourers were not given adequate food and water. Qatar
denied a Guardian’s findings, yet a IMF pronounced a issue
“could impact a accessibility and cost of employing new workers in
the future”.

Qatar appears prepared to compensate what it takes to safeguard that the
World Cup stadiums and other directly associated projects are
completed on time, however.

Mulla during a Supreme Committee for Delivery and Legacy said
10 tenders would be released this year for a stadiums’ project
managers and pattern consultants.

“We are in a modernized stages of pattern work for six
stadiums and this year we will see 5 stadiums start a early
works on foundations and construction,” he pronounced during a conference
organised by business information organisation MEED.

Mulla pronounced Doha now approaching to spend $4 billion some-more than
originally designed on building stadiums and associated sporting
infrastructure. He did not yield reasons, give sum of the
additional spending or contend how large a strange bill was.

(Additional stating by Amena Bakr; Editing by Andrew Torchia)

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