Edicomsa to lose out on Bahrain land sale

Le Papillon tower is set to be re-tendered but contractor is kept in the dark

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By  Conrad Egbert Published  October 7, 2006

Spanish construction giant Edicomsa International has lost out on the US $26.5 (BD10 million) contract to build one of the tallest new residential towers in Bahrain, after the development was sold to a new owner. Now the project looks likely to be retendered. It will come as a major blow to the company, which has recently established operations in the kingdom. The contract to build the 30 storey-plus Le Papillon tower was awarded to Edicomsa in February 2006, but the project is soon to be retendered, according to Bahrain-based Reef - Real Estate Finance Company. Reef has acquired the development from special purpose vehicle Le Papillon Promotions. MA Sridhar, chief operating officer, Reef, said: “We have not decided the date of re-tendering as yet but it will be discussed on Sunday and it will most certainly be tendered in the next three months.” But Construction Week has learned that Edicomsa has not officially been told that the contract is likely to be re-tendered. “We still have our agreement in place but we have not had any communications with the old or the new owners and a lot needs to be ironed out. We did the preliminary work but at this point we’re standing back. We need to verify the situation and sit with them and discuss things,” said Jorge Cadiz, executive vice president, Edicomsa International. It is understood that the contractor has already incurred mobilisation costs. “If they want to tender the project we will have to be compensated. They own the project so they can do what they want, of course, but they will have to go the legal way. No decision can be made without our consent as we have a right since the agreement has been signed,” he added. Intec Bahrain is the architect on the project.

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