Cedmagazine july 2016 edition by Construction and Engineering Magazine

JULY 2016

N1000.00

Incorporating OIL AND GAS REPORT

HOUSING Fashola unveiled FG Affordable Housing Strategy

ENGR. GEORGE CHUKWULEWA OKOROMA, FNSE CHAIRMAN, GAMBETA GROUPE

THE COMMITTED PROFESSIONAL www.natafamdavidconsulting.com

Nigeriaâ&#x20AC;&#x2122; No. 1 Development Professional Journal

THE INTEGRITY DRIVEN ENGR. GEORGE OKOROMA, FNSE, CHAIRMAN GAMBETA GROUPE HAS CONSISTENTLY DEMONSTRATED HIS COMMITMENT TO THE PROFESSION BY BUILDING CAPACITY AND STRONG ENTERPRISES

To a Worthy Professional The Management and Staff of

GAMBETA GROUPE LIMITED, felicitate with our able Chairman/Managing Director,

ENGR. GEORGE C. OKOROMA, FNSE, FNICE, FNIHE, JP as he celebrate his

61st Birth Birthday day

274

Sir, we celebrate your commitment, Integrity, Capacity building and professionalism in the field of engineering in Nigeria. As you are a year older, our prayer is God almighty will continue to bless and uphold you with greater wisdom, strength and good health. CONGRATULATIONS! C TIO TR U

IN N & ENG

EERING

ST DI GE

C ED

CO NS

rp or Inc o

a ting

R I N TE

O NAL NAT I

& GAS OI L

R RE P O

h 2 4t

ary Annivers

Hip! Hip!! Hip!!! Hurray

CHAIRMAN/M.D, GAMBETA GROUPE LIMITED

Signed:

Management

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4 | CED Magazine June 2014

Century 21 www.cedmagazineng.com Systems Comm. Ltd.

4, Graceland Avenue (Tombia Road Ext.), GRA Phase 1, Port Harcourt, Rivers State Phone: +234 (0) 8446 2223, 084 485 014 E-mail: info@gambetagroupe.com Website: www.gambetagroupe.com

Gambeta Group of Companies (Engineering & Technical Consulting Services) ...edged in excellence!

THE EVERGREEN PROFESSIONALS

with the following awards; Distinguished Active Service Award by NSE Port Harcourt in 2002, Distinguished Service Award by Nigerian Institution of Civil Engineers (NICE) 2003, Award of Excellence by Nigerian Institution of Civil Engineers PH Chapter (NICE) 2008, Merit Service Award by NSE Port Harcourt Limited 2010. Engr. George C. Okoroma has contributed in no small major to human capacity development by way of engaging and training young Engineers in his consulting and construction outfits (Gapec Consultants Limited & Gambeta

Nigeria Limited). He has also provided Industrial Training opportunities for many engineering undergraduates, under the Industrial Work Experience Scheme for students from RSUST, UNIPORT, BORI POLYTECH and indeed students from other tertiary institutions across Nigeria. These companies train an average of five (5) university students on this scheme annually. He has also contributed in no small measure to the development and sustainability of the local communities in Rivers State by establishing a hotel of international standard (Royal Fortress

Hotels Limited), located at Omoku in Rivers State, which has created job opportunities for teaming job seekers within the local communities. Engr. G. C. Okoroma has traveled wide across different part of the world for businesses oppor tunity and for international conferences. The conference attended include; UBE France Trade Mission - Paris, France 2007 & 2008, SubContractors Conference Birmingham, UK 2008, Offshore Technology Conference (OTC) Houston Texas, USA 2008, Offshore Europe - Abedeen UK 2009, Ube France/Pollutec Horizons Trade Mission- Paris, France 2009, Gama Conference (For Consulting Engineers) Mombasa, Kenya 2010, FIDIC Conference (Inter. Consulting Engineers) - New Delhi, India 2010, GAMA Conference (For Consulting Engineers) Livingstone, Zambia 2012. Others include Offshore Technology Conference (OTC) Houston Texas, USA 2013, FIDIC Centenary Conference (Consulting Engineers) -Barcelona, Spain 2013, FIDIC Conference (Inter. Consulting Engineers) - Dubai, UAE 2015. Engr. George C. Okoroma is happily married to Mrs. Ngozi George Okoroma a social worker with Rivers state civil service and they are blessed with seven children. We at CED Magazine congratulate you for the laudable contribution to the built environment industry in Nigeria as you are one of the Nigeria's Evergreen Built Environment Professionals. Congratulation!

THE COMMITTED PROFESSIONAL The Integrity driven Engr. George Okoroma, FNSE, Cghairman Gambetta Groupe has consistently demontrated his commitment to the Engineering Profession by building capacity and strong enterprises

ENVIRONMENT RAVAGE WOODLAND

BOOSTING BUSINESS Tanzania-Zambia road to boost business opportunities

As I continue to listen to these invisible voices, I want to assure those our brothers and sisters who lost their lives in trying to leave Africa because of the hardship at home that things will change in the future. I can see a future where the standard of living in Africa will be such that people from other continents will be struggling to come into Africa. I commend the efforts made by many African leaders. I commend President Muhammadu Buhari for his keen interest in using science, technology and innovation for national development. I also commend President John Mahama for the work he is doing in Ghana.

FOCUS ON VALUE ADDITION

Mallam Abdullahi Muhammadu Sani is a professional of International repute with in-depth knowledge of a wide variety of aspect in relation to local and international assets and real property market

19 MAKING THE BIG DIFFERENCE

FOR THE RECORD enough for our needs as well as export the surplus to other nations. This way we can create enough jobs and wealth, fight poverty such that no African will be willing to sacrifice his or her life in an attempt to escape from the excruciating hardship at home. Until this is done, we cannot expect to get the respect of the rest of the world. We must never forget that respect is earned. Genuine respect can only come with achievement, when it is earned.

THE EVERGREEN PROFESSIONALS

play. I also strongly believe that what Japan did for many Asians, Nigeria can do the same for many Africans. Nigeria, with the largest population and the strongest economy in Africa, is gradually moving from a resource-based economy to a knowledgebased, innovation-driven economy. The succulent fruits of science, technology and innovation are being effectively deployed to achieve this desirable transformation needed to guarantee a diversified economy, capable of promoting sustainable growth. A strong Nigerian economy will help her play a catalytic role in the transformation of Africa, to enable the Continent attain the greatness she deserves. Nigeria cannot do it alone. We must work together. Nigeria, Ghana and other Africans working together through the effective utilization of science, technology and innovation will make Africa truly great for the happiness of Africans and the peace and prosperity of the world. Quess Muraina I thank you so much. May God bless Africa and the World.Aderemi K. FNIQS, MRICS, RQS Principal Partner

Engr. Ibe Christian Ahamefula, CEng, MIMechE, M.Sc. (Cranfield), MASHRAE, FNSE, is the Managing Director/CEO, Modutrol Nigeria Limited; Managing Partner of Krinoll & Partners Limited, a firm of Consultants with emphasis in building services engineering and management services since 1995

Stricken trees provide clues about how America will adapt to global warming-but little hope that it can be averted

AFRICA RISING Construction of new hotels in Africa surges

SAFE WATER AFRICA

Leaders to ensure availability of safe water in Africa by 2030

Engr. CEDIbe PROPERTY

Mallam Sani

I believe that in building a New Africa, Nigeria has an important role to 46 | www.cedmagazineng.com July 2016

www.cedmagazineng.com July2016 | 3

THE EVERGREEN PROFESSIONALS

EDITORIAL BOARD Kenneth Odusola-Stevenson Publisher/Managing Editor Onii Nwangwu-Stevenson Founding Editor-In-Chief

THE KING IN 2040 The EIA looked into its crystal ball and saw oil and gas will still be king in 2040

BUSINESS DEVELOPMENT & MARKETING Kunle Odusola-Stevenson Executive Director, Business Dev., Strategy/Project Bayo Adebayo-Egbayelo Head, Special Projects

RUSSIAN UPSCALE Russian oil exports set for record as Europe competition grows

38 DANEGELD IN THE DELTA INFRASTRUCTURE

MARKETING & BUSINESS DEVELOPMENT Festus Njiwe Oseji, Assistant Manager Marketing & Business Development

Nigeria's turbulent oilfields cannot be pacified by bribing rebels

24 NEXT DECADE’S OIL

Chevron deadline nears for $40-billion bet on next decade's oil

ENERGY 32 AFRICA’S POWER CHALLENGE Saudi Arabia, South Africa lead power generation construction in MEA

21 CED PROPERTY DEVELOPING STORY: HOUSING FINDING WAYS

MARKETING & BUSINESS DEVELOPMENT Nelson Tuedor, SNR Marketing & Business Dev. Executive Grace Bassey-Chukwuneye Marketing & Business Dev. Executive Markson Musa Marketing & Business Dev. Executive Olawale Oriyomi Marketing & Business Dev. Executive Oluwatoyin Ayeni, Marketing & Business Dev. Executive EDITORIAL/BRAND DEVE Afam Odusola-Stevenson Brand Development & Strategy Steve Onyebuchi Wilson Reporter/Researcher Ruth Amadi Special Correspondent

FG Partners Private Developers to Reduce Housing Deficit in Nigeria while looking to strengthen the mortgage policy

36 INDUSTRY REPORT

CAN WE TRANSFORM THE BUILT ENVIRONMENT BY 2030

ADMINISTRATIVE/BUSINESS SUPPORT Chinonye Ikebaku, IT/ICT Executive Susan Nwosu, HR/Accounts Tammy Renee Gabriel, Special Assistant to CEO Hope Nwaodor Secretary Ajoke Adeleye Admin/Office Assistant PRODUCTION/STUDIO Muyiwa Idowu, SNR Camera/Photography Fatai Obanoyen, Camera Operation Gafar Sokunbo, Visual Editor Felix Ojajuni, Transportation ISSN116-074

40 FOR THE RECORD TECHNOLOGY IS THE KEY TO AFRICAN DEVELOPMENT Full text of the Nigeria’s Minister of Science and Technology, Dr. Ogbonnaya Onu, FNSE at the Technology event in Ghana 4 | www.cedmagazineng.com July 2016

The 2020 Districts initiative: American cities have a new tool for the large-scale implementation of energy efficient strategies and technologies.

39 INNOVATION

4 MEGATRENDS TRANSFORMING THE CONSTRUCTION INDUSTRY

A Century 21 Systems Comm. Ltd Publication Editorial/Advertising Office 14, Shofidiya Close, Off Ilesanmi Street, Masha, Surulere, Lagos, Nigeria Tel: 234 1 774 3404 Mobile: 234 805 5243 516 E-mail: cedmagazine@gmail.com www.cedmagazineng.com © Copyright All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any means, electronics, mechanical, photocopying, recording or otherwise without the approval of acknowledgement of the publisher.

- Elelewo Road, Mbiama - Yenegoa Road, and Ahoada - Degema Road etc). The jobs carried out include cutting out failed section of road surface and base course and fill same with correct material and seal up with appropriate surface material (surface dressing or asphalt). As managing director/Chief Executive Officer of Gambeta Nigeria Limited (Builders, Civil Engineers & Contactors) to date, his duty include execution of various projects for major oil companies (EPNL, NAOC, NNPC, SPDC, etc.) in Rivers, Bayelsa and Akwa Ibom States such as roads, landing jetties, location platforms, flow station structures, cellar pit, helipad construction, reclamation of waste pits and so many community projects and buildings, construction of township roads and drainages. And as principal Partner//Chief Executive Officer of Gapec Consultants Limited to date; a Consulting Engineers & Project Managers dedicated to Designs of Engineering infrastructural facilities (Buildings, Roads, Bridges, Warehouses, Onshore/Offshore Oil and Gas facilities etc). The firm is a Consultant to TOTAL E & P, NDDC etc. The firm is also a registered member of Association of Consulting Engineers (ACEN), COREN, GAMA and FIDIC etc. Engr. George C. Okoroma and his experienced team of Engineers and Project Managers have designed, just to mention but a few outstanding projects in the country. They include Obagi-Obite-

Ogbogu Link Road in OML 58 for Total E & P Nigeria Limited, E g i Yo u t h Development Centre Project, Egi Women Development Centre Project, Elele Youth Development Centre Project all in OML 58 for Total E & P, Various Community Projects; Link and Internal Roads, Internet Centre Blocks, Science Blocks, Technical Workshops, Housing Estates, Dormitories, Classroom Blocks for Total E & P in OML 58 and 100 Communities, Oboama-Egbele Umuhu-Mgbhiri-Ulakwo Road in Imo State. Others include Afia Nsit-Ikot Abasi Ufat-Ikot Mbang Road and Bridge in Akwa Ibom State, Elelenwo Internal Roads in Rivers State, Omoku Integrated Central Drainage and Roads in Rivers State. Engr. G. C. Okoroma is a prominent and active member and fellow of various professional associations in Nigeria and abroad which includes, Fellow Nigerian Society of Engineers (FNSE), Fellow Nigerian Institution of Civil Engineers (FNICE), Fellow Nigerian Institution of Highway Engineers (FNIHE), Member Council for Regulation of Engineers Nigeria (COREN), Member Association of Consulting Engineers Nigeria (ACEN), Member Nigerian Institute of Management (Chartered) (MNIM), Member Institute of Management Consultants (MIMC), Member Institute of Appraisal & Cost Engineers (MA&CE), Member Institute of Safety Professionals (MNISP), Member

American Society of Civil Engineers (A.M.ASCE), Member Institution of Diagnostic Engineers UK (MIDiagE). His wealth of experience and contribution to the engineering profession in particular and the built environment industry generally has not gone unnoticed. In the area of service to the profession he was Chairman Building Committee NSE Port Harcourt Branch, 2002-2006, Member Engineering Week Committee NSE Port Harcourt Branch, 2003-2006, Board Member NSE Port Harcourt Limited (An NSE Port Harcourt Branch Company) 2004-2006, Patron Civil Engineering Students Association, (CIVESA - RSUST-PH), Chairman International Tours & Industrial Relations Committee, NSE Port Harcourt 20072009, Member Port Harcourt Chamber Of Commerce, Industry, Mines & Agriculture (PHCCEMA), Member Greater Port Harcourt Development Committee, Rivers State 2007-2009, Member Greater Port Harcourt City Master Plan Presentation Planning Committee, Council Member Association Of Consulting Engineers Nigeria (ACEN) 2009-2012 & 2014-2016, Pioneer Chairman Nigerian Society Of Engineers, Omoku Branch 2012-2015, Member Governing Council Federal College Of Education (Technical) Omoku 2013-2015. In terms of awards and recognitions, he has received several awards which include; Distinguished Service Award by the Civil Engineering Student Association (CIVESA), RSUST PHC, Distinguished Service Award NSE Port Harcourt branch 2003, Meritorious Service Award NSE Port Harcourt branch 2004, Meritorious Service Award Nigerian Institution of Civil Engineers (NICE) 2004, Distinguished Service Award by the Commandant Nigerian Navy Sec. Sch. B o r i k i r i Po r t H a r c o u r t 2 0 0 5 , Distinguished Service Award NSE Port Harcourt branch in 2007, Justice of The Peace (JP) by Rivers State Ministry of Justice 2010, Distinguished Service Award by Association for Consulting Engineering Nigeria (ACEN) 2013. Also in 2013, he was inducted into the Nigeria's Construction Industry Hall of Fame, an industry recognized event organized by Construction and Engineering Digest (CED) Magazine. His firm Gambeta Nigeria Limited one of the companies has also been honored

www.cedmagazineng.com July 2016 | 45

THE EVERGREEN PROFESSIONALS

ENGR. GEORGE CHUKWULEWA OKOROMA, FNSE, FNICE, FNIHE, MIDIAGE, MASCE, MNIM, JP

PROFILE At the helm of affairs at GAMBETA GROUPE as the group managing director, Engr. George Chukwulewa Okoroma, a professional par - excellence, a philanthropist and a leader who believes that integrity, honesty and professionalism remains the core value for professional practice in Nigeria. His mission for the industry has never being in doubt as his focus remains to bridge the gap between local companies, best practices and excellence, in Engineering and other essential services, for a sustainable national development. Engr. George Chukwulewa Okoroma, an indigene of Omoku, in Rivers state was born on 4th July 1955. On graduation as a Civil Engineer in 1981, he started his working career with various construction companies as Project Engineer and rose to the position of a project manager with Gokon Nigeria Limited from 1983 to 1989, thereafter he took up the management of a group of civil engineering companies called Gambeta Groupe; which he is a Co-founder/Chief Executive Officer. With the vision to become the best and biggest Engineering/Oil & Gas support brand in Africa before 2020. Engr. Okoroma, with Gambeta Groupe the umbrella name of the companies which comprises of Gambeta Nigeria Limited, (a Builders, Civil Engineers & Contactors), Gapec Consultants Limited, (Consulting Engineers & Project Managers), Chilewa I nve s t m e n t s L i m i t e d , (Transport/Logistics & Contract Staff Management Services), Chukchi Oil & Gas Limited, (Oil & Gas Process Engineering, Facilities Modification and Construction and Feed Engineering), other member companies of the group include Royal Fortress Hotels Limited, a hotel of international standard located at 44 | www.cedmagazineng.com July 2016

Omoku in the oil & gas rich Orashi region in Rivers state, remains focused, making sure the standard of the organizations are to reckon with in various sector of the economy in Nigeria. For his academic pursuit, Engr. George C. Okoroma attended People State School Omoku, Sancta Maria High School Omoku and College of Science & Technology, Now Rivers State University of Science and Technology (RSUST), Port Harcourt, Rivers State. Later he proceeded to the University Paul Sabatier, Toulouse, France. His academic qualifications and grades include the following; West African School Certificate (WASCE) - Distinction 1975, Ordinary Diploma in Technology (ODT) Civil Engineering - 1978, Bachelor of Technolog y (B. Tech), Civil Engineering - 1981 and Certified Staadpro Engineer by REI Bentley Systems (UK)

Ltd - 2006. He is a certified and registered engineer of the Nigerian Society of Engineers (NSE) and the Council for the Regulation of Engineering in Nigeria (COREN). Engr. George C. Okoroma as an Engineering Student had his Six (6) months Industrial work Experience with Taylor Woodrow (Nig) Limited 1977 (Construction of Science & Engineering blocks of the Rivers State University of Science & Technology Nkpolu Port Harcourt), Zenith Dredging & Civil Engineering Company Limited - 1977 - for a period of six (6) months (Dredging, Sand filling, Sheet Piling and C o n s t r u c t i o n o f Re i n f o r c e d Concrete Retaining Walls and Paving slabs for Onne lighter berth terminal at Onne near Port Harcourt), Regional Works Dept (D.D.E), Tarbe France - 1981, which also lasted for six (6) months (Investigation, estimation, and supervision of Regional Highways Construction in an erosion prone area with special attention on retaining walls and underground water seepage within Tarbe area in south-western region of France). For the compulsory National Youth Service, Engr. George C. Okoroma served briefly in the then Rivers State Directorate of New Town in 1981 and also with Alcan Aluminum Products 1981 - 1982. He served as one of the Aluminum roofing sheet sales representatives at their Port Harcourt Sales office and in-charge of the New Town Projects at Ogbia and other project sites within Rivers State. His working experience over the years cut across several sector of the built environment rising from project engineer/manager 1982 - 1989 for Gokon Nigeria Ltd, where he carried out the Maintenance of all Federal Roads in Rivers State for the Federal Ministry of works from 1982-1986 (Ikwerre - Airport Road, Igwuruta - Chokocho Road, Rumukurushi www.cedmagazineng.com July2016 | 5

FOR THE RECORD

NEWS NOTES

ETHIOPIA ENERGY China to construct mega wind farm in Ethiopia

UGANDA ON THE MOVE

Uganda to sign financing agreement for SGR by October

he Ugandan Government has the projected 16,000 jobs should also be confirmed that by October this year it reserved for Ugandans," a government will have closed the financing official said. The Malaba-Kampala railway line will agreement for the construction of the first phase of the Standard Gauge measure an estimated 273km. The Standard Gauge Railway was Railway (SGR)project. Eng. Kasingye Kyamugambi, the SGR launched on October 2014 when project coordinator confirmed the news President Museveni, President of and said that the first phase which is Rwanda, Mr. Paul Kagame, Mr. Salva Kiir, expected to run from Malaba to Kampala S o u t h S u d a n P r e s i d e n t a n d will cost a whooping US$ 2.3bn and will representatives from Kenya and Burundi met in Uganda. be funded by the China EXIM Bank. "By the end of this financial year- The mega development project is part of 2016/17, we expect to have started the Northern Corridor Integration construction of the first phase. The hope Projects regional initiative that came is that we shall have financial closure of about in order to build up and operate a the US$ 2.3bn with China's EXIM Bank new, state-of-the-art high capacity railway by the end of October 2016," Mr. system jointly among Kenya, Rwanda, Uganda and South Sudan. The proposed Kyamugambi said. regional modern railway line will run The Ugandan from Mombasa through government also signed Nairobi, Kampala and China Habour Engineering Kigali to Juba. Company as a contractor The foremost objective tasked to ensure local content of the railway line is to and companies are included provide a reliable and in the project. efficient railway network "We want to ensure that that will lead to reduced there is at least 40 per cent cost of transportation and local content in the project; logistics by around 15 all suppliers of cement and percent to 20 percent. steel should be local companies and 90 per cent of President Museveni 6 | www.cedmagazineng.com July 2016

Chinese company, Dongfang Electric Corporation Limited (DECL) in conjunction with The Ethiopian Electric Power Utility (EEP) is set to construct a wind farm in Ethiopia. The wind farm will be constructed in Aisha area of Somali Region. The new wind farm which will have has 80 turbines will each have the capacity to generate a whopping 1.5MW. It will be constructed 20km at the DjiboutiEthiopian boarder. On the agreement that was signed by both EEP and DECL, the wind farm is approximated to cost of US$ 257m. But funds for 85 per cent of the project will be secured from the Chinese EXIM bank. However the remaining 15pc will be taken care of by the government. Misikir Negasha, EEP's public relations leader said that the wind farm is expected to be completed in 18 months time. "The project is programmed to be concluded 18 months from the time of commencement and hopes are high that the contracted company can complete it on suitable time," said Mr. Negasha. Growth and Transformation Plan This initiative is part of the second Growth and Transformation Plan (GTPII) of the energy sector. So in this plan the country wants to realize 10,000MW of energy on its national grid. Dongfang Electric Corporation Limited s p e c i a l i z e s i n p owe r e q u i p m e n t manufacturing and international power projects that include. Its projects revolves around thermal, hydro, nuclear, wind, gas turbines and combined cycle power plants. It has so far recorded an annual production capacity of 35,000MW. Moreover, the company worked on the Gilgel Gibe III hydro-power project on the Omo River, Ethiopia in 2010. It has a power output of about 1870 MW. To this end,The Ethiopian Electric Power Utility has a mission of providing sufficient and quality electricity generation, transmission through constant improvement of utility management practices receptive towards the socioeconomic development and environmental protection requirement for the public.

to new technologies leaving behind older ones. New Pan African social media platforms such as Mara Online are emerging to challenge global giants such as twitter, facebook and linkedin. Ushahidi and M-PESA are some of the platforms developed to help improve citizens relationship with their governments as well as transfer money electronically. What has so far been achieved though encouraging, shows that a lot of work is yet to be done. Are we ready? I believe that we are. Africa must exploit the creativity, inventiveness and innovations of Africans. We can no longer pay lip-service to the development of science and technology. We must see it as our future and work very hard to utilize it as an important tool for enduring and sustainable development. The current state of science and technological development is a big challenge as well as a wake-up call for us to rise up and fully embrace science, technology and innovation in biotechnology, chemical technology, food safety and security, artificial intelligence, nanotechnology, space technology, etc. We may not get it right at the beginning but we can get there if we put our mind towards achieving it. We must be ready to make mistakes and accept mistakes as inevitable in the learning process. We must change our thinking to recognize and accept that research and innovation take time. We must be patient to accept this. We must also reward both hard work and achievement. As a people, we need to invest heavily in research and innovation. As of now, we are doing very little in this area. All African nations should reorder their national priorities so that in the next five years, no African nation should be spending less than 1 % of her Gross Domestic Product (GDP) on research and innovation. This percentage should gradually increase with time, such that in the next 25 years no African country will spend less than 3% of her GDP on research and innovation. We should work very hard to commercialise research findings. Ideas are meaningful when converted into goods and services available in the market place for the good of the people. The linkage between research institutes and industry must be strengthened just as that between universities and research institutes. Government, industry, universities and research institutes must work together for the common good. Our research efforts for now should focus on agriculture and energy. Africa must be able to feed herself. Africa should use science and technology to aid food production, storage, safety and preservation. Africa must be secure. Africa must achieve food security. We should also achieve energy security. It is very disturbing that electricity generation in countries, south of the Sahara, excluding South Africa, is estimated to be the same as in Spain. This is not right. Africa should use science and technology to generate enough electricity to light our homes, and power our factories so as to produce the needed goods and services we urgently need. Africa can effectively utilize her unique geography to exploit solar and wind energy. Just early this month in the United Arab Emirate, the Dubai Electricity and Water Authority (DEWA) announced the construction of the largest Concentrated Solar-Power project in the world on a single site which will begin power generation in the next five years. The project is expected to generate 1,000 megawatts by 2030. If Dubai can do this, then Africa can do far more. Generating enough electricity to light our homes, offices, schools and power our factories and laboratories will help the growth of small and medium

enterprises. This will help job and wealth creation as well as reduce poverty in Africa. I specially commend Dr. Akin Adesina, President of African Development Bank for launching the AfDB New Deal on Energy for Africa to achieve universal access to energy in Africa by 2025. We should all work hard to achieve this noble goal. Africa, though the birthplace of man, is today the home of young people. Many countries in Africa have young people, below the age of 20 years, making up half their population. This presents a great opportunity if the energy, creativity and talent of these young people are harnessed through education. Africa must invest in education, first to attain universal access such that no African child will be unable to read and write. Secondly, the education offered to these young people should emphasize science and technology. This way we will produce the best scientists and engineers to help us efficiently harness the abundant resources in the Continent for the happiness of Africans and the peace and prosperity of the world. Let us never forget that in everything we do, we should always look for the best because only the best is good enough for Africa. This will also help Africa to produce Nobel laureates in Physics, Chemistry and Medicine. In order to facilitate African development, we must encourage the exchange of both students and teachers in our schools from one country to another. This will help technological development. We must work tirelessly to reverse the current brain drain in Africa. We must work to retain at home the best brains we have in Africa. We should use appropriate immigration policies to attract to Africa the brightest of the bright minds in other parts of the world. We must work to ensure that African universities rank among the best ten in the world. Excellence must remain the hallmark of our educational system. It is important that Africans should start looking inwards. We should rely more on what we can do for ourselves. We should encourage trade and exchange of goods and services among our nations. We must patronize our locally manufactured goods as a way to encourage the local production of the goods and services we need. This will not only help job and wealth creation as well as poverty reduction but will also help make us self-sufficient. This will help nourish our self-pride and human dignity. We can no longer continue with our current taste for foreign goods that has left us as mere consumers and not producers. We cannot continue to import everything that we need even if they are cheaper. When we do this, we end up exporting jobs to those countries. This creates unemployment problems for us at home. Again how can we learn if we do not even give our people the chance to try? We must never be afraid of failure, because at times it is through failure that new opportunities are created. The way we are going is not good for us. Things must change. We cannot continue in this way. As I continue to stand before you, I clearly see with the hidden eye of my mind those of our brothers and sisters who died in the Mediterranean Sea while seeking a better life as they earnestly plead that we, men and women of this generation must ensure that their death should not be in vain. They wondered what happened to the celebrated vision, uncommon determination and exceptional hard work of the leaders of ancient Africa. They were disappointed in what had happened to the highly acknowledged ingenuity, creativity, inventive and enterprising spirit of our ancestors. They fervently prayed for a future where no African, as a result of unbearable harsh conditions at home, could become so helpless and despondent as to risk his or her life in the face of great danger as has unfortunately continued to happen with those running away to Europe for a better life. They want us to remember them by working hard to build a New Africa where African countries will no longer be mere consumer nations but should look inward and use the huge resources available to produce

Continued on page 46 ? www.cedmagazineng.com July2016 | 43

INDUSTRY REPORT

FOR THE RECORD herself then into the second largest economy and later it is now the third largest economy in the world. The root cause of her spectacular rise was traced to the acquisition of knowledge. Even countries, small in population and land mass, have attained greatness by embracing knowledge. Only few people gave Singapore, one of the smallest countries in the world much chance of survival when she gained independence in 1965. Thirty-five years later, at the end of the 20th century in 2000, the former British colony's trading post became a thriving modern Asian metropolis. Singapore then had the world's number one airline, best airport and busiest port of trade. The people of Singapore then enjoyed the world's fourth highest per capita real income. Today, her gross domestic product (GDP) has continued to grow. Lee Kuan Yew, the acknowledged father of Singapore, in his book: From Third World to First: The Singapore Story; 1965-2000, explained how by integrating technology into the country's businesses, government and homes, he used the power of the internet to position Singapore for survival and success in the internet economy. Being fully aware, that there are two equalizers in life, namely the internet and education, the people of Singapore effectively deployed technology to transform their country from a poor dilapidated colony to a rich, modern and prosperous nation. Political leaders and scholars do know the importance of knowledge in the developmental process. Winston Churchill, one of the greatest Prime Ministers of the United Kingdom, in his broadcast of 1943 remarked that: "the future of the world is to the highly educated races, who alone can handle the scientific apparatus necessary for pre-eminence in peace and survival in war". Also it is remarkable that Israel based her national development plans on the prediction of Charles P. Steinmetz (1865- 1923) that: "there will come an age of independent nations whose frontline of defence will be knowledge". Many developing countries, between the last two decades of the 20th century and the first decade of the 21st century, made remarkable progress in their economic development. Such development was sustained over a long period of time. In every case, technological knowledge was employed to start and in most cases helped quicken the pace of economic growth and development. Notable among such countries, were those with large population such as China, India and Brazil. China, though with a history of great achievements was once a poor country, but recorded an unprecedented high rate of economic growth averaging more than a per capita GDP growth rate of 8 percent over a period of more than three decades, stretching from 1979-2013. Within this period, China, with slightly less than one fifth of the world's population, doubled her economy three times over to become the second largest economy in the world. This spectacular growth has no equal in modern history. China feeds 1.4 billion of her citizens. This is a major achievement. Do we imagine what would have happened to food prices in the world if the rest of the world had to feed 1.4 billion Chinese people? India, with one of the oldest recorded civilizations in the world, entered the 21st century with a population of more than a billion people. She embraced technology and witnessed a high economic growth rate which was sustained for many years. Her achievements 42 | www.cedmagazineng.com July 2016

in so many areas were spectacular. She became a net exporter of food, a very impressive achievement in view of the huge shortage of food which India experienced in her immediate post-independent period. India built a strong industrial base, modernized her military and became both a nuclear and space power. Brazil is the most populous country in Latin America. She is also the industrial giant of the region. By utilizing the enormous power of science and technology in exploiting her abundant natural resources and a huge labour force she, in the 1970s, became the leading industrial power of Latin America. Agricultural production, scientific research, innovation and technological development also improved considerably. By the 1990s, Brazil had one of the world's largest economies. By 2012, she was the world's seventh largest economy. Though Brazil currently experiences enormous challenges, yet her achievements through the effective utilization of science and technology for nation building is impressive. Nations that are anxious to develop have long known that if they desire to modernize and be competitive, the only road to follow is that of knowledge, particularly scientific and technological knowledge. It is important to observe that just as the acquisition of knowledge helped many countries attain very high standards of living, so also its neglect inevitably result in the decline of the influence of those nations. Arnold Toynbee in his monumental work: A Study of History where he studied twenty-one great civilizations and Jim Nelson Black in his book: When Nations Die are both in agreement that intellectual apathy and lack of vision led to the disintegration of the structures that made civilization possible. As I look around, I am convinced that Africa cannot be rich while Africans are poor. Slavery has come and is gone. Colonialism has come and is also gone. Africa politically is independent. Perhaps there is still a very tiny dark spot left. The time to intensify the economic development of Africa is now not tomorrow. Yes, our immediate past was filled with pain and anguish. The time has come for us to move forward, to move ahead. For me, it is forward ever, backward never. We must look to the future with hope, for the future is bright. We have all it takes to succeed. If we expect others to do it for us, we are mistaken. Others can only give us a helping hand. Africans are to develop Africa. There is only one route to take. It worked in ancient times. It also has worked in modern times. Africans should embrace science, technology and innovation as the key instrument for development. The pyramids of Egypt, the blast furnace of Tanzania, the great walls of Zimbabwe, the beautiful artistic work of Ife, Benin and Igbo-Ukwu in Nigeria, the Kente cloth in Ghana are some of the evidence of the technological exploits of ancient Africa. I can see a glorious future for Africa, if we deploy the tools of science, technology and innovation to the development of the Continent. In the 22nd century, just as we have been going to others to learn, the world will come to Africa not only to learn but also to live a good life where peace and prosperity will thrive. We can make the 22nd Century, the African century. We can do it. We should do it. We will do it. I can see a ray of light showing that Africa is gradually embracing science and technology. It is estimated that over 75% of Africans have mobile telephones. Africans are using telephones to leapfrog

CAN WE TRANSFORM THE BUILT ENVIRONMENT BY 2030 The 2020 Districts initiative: American cities have a new tool for the large-scale implementation of energy efficient strategies and technologies.

nergy independence, climate change and community resilience are among important issues that the clean energy revolution aims to resolve through increased uptake of energ y efficient technologies, development of sustainable communities, and strategic operation and maintenance of buildings. American cities are emerging as an integral piece to the sustainability puzzle with major metropolitan areas setting ambitious energy efficiency targets and regulatory requirements, ultimately serving as hubs for strategic solutions and innovation. What is the opportunity for increased sustainability? Domestic buildings account for about $400 billion in national energ y consumption with about 85 percent of the population residing in major cities. The progression of urbanization can take one of two paths - it can place a

greater demand on existing energy systems and infrastructure and contribute to unsustainable behavior, or it can encourage state and local leaders and the building community to think outside the box and develop impactful solutions that will allow for deeper reductions in energy consumption. How are municipalities leading the way? State and local energy efficiency programs and policies are critical to ensuring that revenue conserved through the application of cost-effective energy

Investing in energy efficiency isn't just necessary to develop resilient communities; it also makes good business sense as it creates jobs and strengthens economic competitiveness.

improvements is reallocated to initiatives that will continue to help reduce demand, improve system reliability, reduce dependency on unsustainable resources and provide significant public health and environmental benefits. The industry is responding to the need for transparency in building data to drive environmentally responsible behavior. An example of this is the recent CoStar Group announcement of plans to display building energy efficiency and energy performance information in the CoStar Property database, with future efforts to incorporate energy usage data collected through state and local governments across the country. Investing in energy efficiency isn't just n e c e s s a r y t o d e ve l o p r e s i l i e n t communities; it also makes good business sense . New York City is among the major metropolitan cities working to become more resilient with its Stronger, More Resilient action plan, which incorporates 250 ambitious infrastructure resilience initiatives across a number of categories, including transportation, telecommunications, parks, insurance and buildings. On the opposite coast, San ? www.cedmagazineng.com July 2016| 7

INDUSTRY REPORT

FOR THE RECORD

Francisco has implemented a successful zero-waste program, with 80 percent of all waste being diverted from landfills, and the aim of 100 percent diversion by 2020. To support sustainable cities, a variety of stakeholders have developed programs that provide resources and technical assistance to state and local decision makers as they work towards the advancement of energy efficiency policies and programs incorporating building energy codes, regulations and financing solutions, as well as evaluation, measurement and verification of data. Architecture 2030 and the Department of Energy Architecture 2030 is working to develop and implement strategies to reduce fossil fuel consumption and greenhouse gas (GHG) emissions. It hopes to stimulate the creation of resilient communities. Garnering recognition through the American Institute of Architects (AIA) Kemper Award for catalyzing the architecture community to address climate change through design, the organization has championed the cause of sustainable carbon neutral planning and design in the built environment through various innovative programs, such as its 2030 Districts initiative, which focuses on supporting major metropolitan areas in their sustainability endeavors. 2030 Districts are unique in that each district is comprised of partnerships between private and public entities in designated urban areas across North

America committed to reducing energy and water usage, as well as transport emissions. The concerted effort made by property owners and managers, local governments, business and community stakeholders has resulted in increased instances of benchmarking, development of strategies to renovate hundreds of millions of square feet of existing buildings, and the construction of highperformance properties. Having expanded to include two new cities - San Antonio, Texas and Grand Rapids, Michigan - the 2030 Districts represent nearly 300 million square feet with continued expansion expected in the future. All of the districts are a part of the 2030 District Network, which allows each to leverage data available, best practices and verification methods to monitor progress, ultimately allowing for continued advancement towards Architecture 2030's overall goal of a carbon neutral built environment. In an effort to further expand its support for 2030 Districts, Architecture

The industry is responding to the need for transparency in building data to drive environmentally responsible behavior.

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2030 created the 2030 Districts Marketplace, an online resource intended to offer innovative products at belowmarket prices, through the 2030 Districts Network and in partnership with the Department of Energy (DOE, for which I consult). Architecture 2030, DOE and Lawrence Berkeley National Lab also have partnered together to develop a district program geared towards improving energy efficiency in small commercial buildings (office, restaurant and retail), which includes a technical toolkit that provides technical guidance, resources and analysis tools for building owners and operators. Small commercial buildings are identified as properties that are less than 50,000 square feet in size and represent more than half of the entire commercial building stock, making them an ideal vessel to achieving substantial decreases in energy consumption and GHG emissions. The technical toolkit, developed with $2 million in funding through DOE's Commercial Energy Efficiency Solutions 2013 FOA, integrates new and existing tools providing users the ability to analyze and evaluate measures for HVAC equipment, interior equipment, lighting and whole building measures whether individually or in packages. Small commercial building owners in the Seattle and Pittsburgh 2030 Districts have started pilots using the tools to perform energy e f f i c i e n c y r e t r o f i t s, w i t h f u l l dissemination planned for other districts later this year. By Monica Kanojia

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the industrialized countries of the world to run their industries. The emerging economies of the world now depend on Africa to meet some of their increasing requirements of natural resources they need to expand and grow their economies. Africa has some of the best weather in the world. In most parts of Africa, all year round, it is never cold enough for snow to fall. The catastrophic weather conditions that ravage many other continents are rare in Africa. Indeed, many people strongly feel that if there had not been mosquitoes in the past, the demography of Africa would have been different from what we know it today. Also as many other parts of the world are aging, Africa is filled with young people. It is important that we should always remember that Africa had a rich past. Our ancestors were men and women of great vision, creativity, innovation and ingenuity. They mastered their environment and employed science and technology as instruments for development. They studied the stars, irrigated their farms and built a civilization whose impact is still felt today. The mighty pyramids of Egypt, the great walls of Zimbabwe, the beautiful artistic works of Benin, Ife and Igbo-Ukwu of Nigeria, the Kente cloth of Ghana are testimonies of their technological prowess. A recent archeological finding near Lake Turkana in Kenya, has shown that even as far back as 3.3 million years ago our ancestors used stone tools. This again is a clear evidence of their technological prowess. Notwithstanding the glory of our ancient past, the immediate past of Africa had been painful. The African had unfortunately become the face of hunger, disease, Illiteracy, abject poverty, malnutrition, political instability, strife, disorder and the home of refugees and internally displaced persons (IDPs). Fortunately, things have started to improve in the past fifteen years. The roots of democracy have grown deeper in the political soil of Africa. Conflict situations have decreased. Africa has been moving towards universal primary education. Death from malaria, tuberculosis, HIV/ AIDS is on the decline. Some African nations were among the fastest growing economies in the world. Before the recent collapse of commodity prices in the world, Africa's economy was growing faster than those of other regions of the world and at twice the rate of the 1990s. Irrespective of this improvement in the past one and half decades, many problems still remain unsolved. Though poverty has declined in Africa by 40 percent since 1990, yet several millions of Africans live in abject poverty. It is estimated that over 620 million Africans live without access to electricity. Also it is estimated that 600, 000 Africans die each year as a result of household air pollution caused by the use of firewood and charcoal for cooking. Several millions of Africans, particularly those in the rural areas, do not have access to good drinking water, good housing, adequate health care and sanitation. Wealth disparities are on the increase as the gap between the rich and the poor has become wider. Many young people in Africa do not have jobs. The World Bank has estimated that as many as eleven million young people are expected to enter the job market in Africa every year for the next decade. As I stand before you in this beautiful Conference Center, on this sacred soil of Accra, the Capital City of this great nation, my mind is worried and I feel very unhappy as I remember so many young Africans who in the bid to escape from the hardship at home and

in the search of a better life try to cross the Mediterranean Sea. Day after day, week after week and month after month, many of these sons and daughters of Africa die as overcrowded boats capsize, day after day, leaving behind many dead bodies. Even with the news of this tragedy, more people are not deterred and still attempt to cross the Mediterranean Sea in both good and bad weather. This desperation can only be explained by huge excruciating pain in their hearts. The colour of the water of the Mediterranean Sea is gradually changing to red with the blood of these innocent men, women, boys, girls and children running away from a Continent of their birth which they rightly call their home. Africa got to this sad state because Africans forgot those things that made their ancestors great. When Africans decided to take a route different from that of their ancestors, things started falling apart. Knowledge, particularly technological knowledge, no longer played the role that it did in the greatness of their past. It is important to point out that nations, both big and small, know that knowledge is central to development, social progress and human freedom. Such nations invested heavily in the pursuit of knowledge, particularly scientific and technological knowledge. The problems that confront a nation are usually numerous and diverse. However, with hard work and determination, when these problems were subjected under the searchlight of knowledge, solutions were found. It was the renowned Prussian military strategist, Carl Van Clausewitz (1780-1831) who, after studying the numerous problems that confront a people, observed that "all military problems are political, all political problems are economic and all economic problems are scientific and technological". The United States of America which, under 170 years, between 1776 when she became independent and 1945 when the Second World War ended, had become a super power, attached a lot of importance to scientific and technological knowledge. The USA not only had and still remains the largest economy in the world, but also dominated the globe militarily and culturally. Most of the scientific and technological inventions that shaped the 20th century were discovered in the United States. At the beginning of the 20th century in 1903, the mass produced automobile, the full length motion picture and the air plane made their debut in the USA. The spacecraft which landed a man in the moon and safely brought him home, the personal computer with its software and the silicon processor which is its brain, are all American inventions. Even the nuclear bomb, which put a lot of fear into the hearts of men and women all over the world, was also an American invention. The American attitude to knowledge was shaped from the beginning of the republic. Bernard Cohen in his book: Science and the Founding Fathers showed that the founding fathers of the USA were men who were seriously influenced by the science of their days. Three out of them became president. Science influenced their political thoughts both in and out of office. George Washington, the first American president, in his farewell address at the end of his presidency strongly advised his fellow Americans to support "the diffusion of knowledge." The Japanese miracle gripped the world in the second half of the 20th century. Japan which was essentially a developing country by the end of the Second World War in 1945 had, under forty years, transformed

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DEVELOPING STORY

FOR THE RECORD

most people make less than a dollar a day. This is far more than the UN offers other African rebels to disarm. And Nigeria's plan to provide job training for ex-rebels, which has succeeded in other countries, was a shambles. The deal gave the region's many jobless young men an incentive to take up arms, in the hope of being paid to lay them down again.

TECHNOLOGY THE KEY TO AFRICAN DEVELOPMENT Dr. Ogbonnaya Onu

full text of the lecture on Technology the Key to African Development delivered by Dr. Ogbonnaya Onu, minister of Science and Technology, Federal Republic of Nigeria, to mark the 56th anniversary of the State of Ghana as a Republic, on June 30, 2016, at the Accra International Conference Centre (AICC), Ghana. Protocols: I most sincerely thank the Government and the people of Ghana for inviting me to speak on Technology the Key to African Development, as part of the activities to mark the 56th Anniversary of the State of Ghana as a Republic. I bring to you very warm greetings from Nigeria. I also bring greetings from President Muhammadu Buhari, first to his brother President John Dramani Mahama and secondly to the over 26 million Ghanaians as you celebrate the 56th anniversary of your great nation as a Republic. Ghanaians should be proud of themselves because you have achieved a lot within the past 56 years as a Republic.

history has ever attained true greatness without science and technology. President Nkrumah knew then the relevance and the importance of science and technology to nation building. We will continue to celebrate him for his vision, patriotism and the concern he had for the development of Africa. Also another great son of Ghana, the former Secretary General of the United Nations, Kofi Annan, is the Chairman of the Africa Progress Panel (APP), which is working to find lasting solutions to complex problems confronting Africa. The APP is made of ten very distinguished personalities, one of whom is Chief Olusegun Obasanjo, Nigeria's former President.

Africa is indeed a unique Continent destined for greatness. It is the accepted home of the early man and the first known human civilization. It is the second largest Continent with a landmass of 11,668, 545 sq. miles. It is the combined size of Europe with a landmass of 3,979,405 sq. miles; China with a landmass of 3,681,089 sq. miles and the United States of America with a I feel at home any time I am in Ghana. As the Togbe Kwami Vidza I landmass of 3,678,235 sq. miles. Hence Africa can contain within of Kpando Municipal Council, I know that I am one of you. Also in her the whole of Europe, the United States of America that has the the spirit of African brotherhood I regard Ghana as my second largest economy in the world, as well as China which has the second largest economy and yet there will be a surplus landmass of 329, 816 home. sq. miles, which is the size of many smaller countries put together. I am very happy to speak on a very important topic, Technology the Key to African Development in Ghana because I remember vividly Africa has the longest river in the world, River Nile. It also has the the prophetic words from a visionary leader, the First Prime Minister largest non-polar desert, the Sahara Desert. Victoria Falls in as well as the First President of the Republic of Ghana Dr. Kwame Zimbabwe is the longest curtain of water in the world just as the Nkrumah. In the forward to the Seven Year Development Plan 1963 Ngiri-Tumba-Maindombe area in the Democratic Republic of -1970, Osaiyefo Nkrumah wrote "the Plan Provides the Blue Print Congo has become the world's largest wetland of international for the Future Progress and Development of Ghana as a nation. It is importance. Africa has some of the most intelligent, resourceful a program of social and economic development based on the use of and enterprising people in the world. It also has some of the best science and technology to revolutionize our agriculture and industry. soil and is widely acknowledged as the most endowed with numerous natural resources. Africa has established itself as the It is designed to provide the basis not only for our national progress home of gold, diamond as well as many of the most important and prosperity, but also of our ability to contribute to the mineral resources needed for industrialization. There is hardly any advancement of the African Continent." He knew then, as it is true mineral of importance that is not found in commercial quantities in now and will remain so for a long time to come, that no nation in Africa. It was the natural resources from Africa that helped many of

? 40 | www.cedmagazineng.comJuly 2016

pipeline-explosion-niger-delta-

DANEGELD IN THE DELTA

Nigeria's turbulent oilfields cannot be pacified by bribing rebels

THOUSAND years ago an It has also set off global ripples. The English king called Aethelred squeeze on Nigerian oil output is one ("the Unready") used to pay reason why the price of crude has rallied marauding Vikings sacks full of in recent weeks. precious coins not to attack his Intriguingly, for such an influential kingdom. The trouble was, the Vikings group, no one knows who the Niger got a taste for Danegeld, as it was later Delta Avengers are or where they got known, and kept coming back for more. their seed money. There is less mystery King Aethelred learned a harsh lesson: about why they are holding the state to when you reward bad behaviour, you get ransom: because it has worked in the more of it. past. Nigeria's rulers have yet to learn from The Nigerian army never defeated the history. In recent weeks a group of previous group that mounted a serious heavily armed and masked men calling insurgency in the Delta, the Movement themselves the Niger Delta Avengers for the Emancipation of the Niger has caused havoc in the region where Delta. Instead, in 2009, the government Nigeria's oil is pumped. With negotiated an amnesty with the rebels, speedboats and submachine guns rather who laid down their weapons in return than longboats and battle-axes, they are for a monthly stipend of several every bit as fearsome as the Danes of hundred dollars each-in a region where old, and nearly as disruptive. They claim to fight for justice (and a bigger share of oil revenues) for the people of the Niger Delta. By blowing up pipelines they have helped crash oil production from 2.2m barrels per day to 1.5m. This has hobbled the Nig erian economy and gutted the budgetpetrodollars account for nearly all of the country's exports and the vast bulk of government revenues. The Niger Delta Avengers

These Avengers are not superheroes It is unclear how Nigeria's president, Muhammadu Buhari, will tackle the Avengers, or even whether the government is talking to them. However he proceeds, Mr Buhari should not try to buy them off. Rather, he should arrest those who have committed acts of violence or extortion. And he should work to improve the appalling governance in the Delta region, so that locals have less cause to hate the government. Alas, the Nigerian security services are not good at hunting down rebels. As a recent study by the International Crisis Group, a think-tank, points out, the army is overstretched, has a woeful human-rights record and is hollowed out by corruption. Officers sometimes even sell their own side's weapons to insurgents. Urgent reforms are needed to military recruitment, training and procurement. The people of the Niger Delta have genuine grievances. In theory the region gets a generous share of the nation's oil revenues. In practice much of the money is stolen, by federal or local bigwigs, before it reaches schools or clinics. The national budget crisis has made matters worse as many local officials have not been paid for months. Cleaning up this mess will be staggeringly hard, not least because Mr Buhari, a northern Muslim who replaced a president from the THE I Delta, is not popular there. The task will be close to impossible unless it is part of a nationwide push to fight graft. Mr Buhari's anti-corruption zeal seems genuine and he has shown he can make tough decisions. This week, for example, he allowed the Nigerian currency to float. He should be resolute in the Delta, too. www.cedmagazineng.com July 2016 | 9

DEVELOPING STORY

GROWTH STRATEGY World Bank tells Uganda to diversify from oil

he World Bank has advised Uganda to diversify from oil production. In its report the World Bank cautions Uganda against over-reliance on oil. The report is titled "Economic diversification and growth in the era of oil and volatility." It warns the Ugandan government not to abandon other sectors of their economy. This comes at time after Uganda has discovered some commercial quantities of petroleum in 2006 in the Albertine region.However production date has been pushed forward. "Before oil prices started dilapidating heavily in mid 2014, the price of one barrel of oil had drifted around the US$ 100 mark for a number of years and at that level, oil revenue for the government would have been around US$ 2.5bn a year that is between 2017/18 and 2044/45 and assuming an international price of oil of US$50 per barrel, average oil revenue will amount to about US$ 800m a year," stated the report. The World Bank further advised that apart from oil production manufacturing and agricultural sectors could yield bigger and higher investments and this will

diversify the economy in U g a n d a . However, projections of lesser oil revenues and a rising debt burden in the country have led to worries to finance into other ventures. The advice is as a result of anxiety over the momentous growth that has been registered in the services and manufacturing sectors that is however not harmonized by a corresponding increase in high wage jobs in the country. This trend has significantly led to high rates of ignorance and poverty, with many Ugandan citizens being trapped in low wage jobs especially in the agricultural sector. Currently in Uganda according to the World Bank data, coffee and cotton account for about 39 per cent of their exports, and outstanding growth in other export things has contributed to the current 24 per cent share of exports of manufactured products.

President Museveni

construction contract. Amaechi revealed that first segment of the rail line will comprise Port-Harcourt, Calabar, uyo and Aba. However, the first segment of the rail project is expected to be ready within 2 years. Additionally, when completed, the proposed coastal railway line in Nigeria will link all sea ports. The project is also expected to create business hubs meant for commercial activities. According to Amaechi the project contract was to be initially awarded at a cost of US$11.917bn after an acceptable negotiation of cost reduction due to some of the commodities price fall in the world market, the same project will be delivered at a cost of US$11.117bn. However, the Federal Government has assured to implement timely payment of its counterpart funds to the coastal rail project despite scarcity of funds. Nonetheless, the Abuja-Kaduna rail line is currently being test-run. China Civil Engineering Construction Company CCECC was established in 1979 under the endorsement of the State Council of the People's Republic of China. It is one of the pioneers performing international contracting and economic cooperation. The Corporation has progressed from the China Ministry of Railways, Foreign Aid Department into a large-scale stateowned enterprise. It has earned Chinese national Super Grade qualification for project contracting. It is listed among the world's top 100 international contractors by the Engineering News Record "ENR". It expanded from international railway contracting construction contracts to labor ser vices cooperation, civil engineering design & consultancy, real estate development and project contracting. The corporation also trade into the import & export as well.

NIGERIAâ&#x20AC;&#x2122;S MOVING TRAIN

China to construct the Lagos-Calabar coastal railway line in Nigeria

igeria and China have concluded a contract ag reement wor th US$11.117bn for the construction of the Lagos-Calabar coastal railway line in Nigeria. Transport Minister Rotimi 10 | www.cedmagazineng.com July 2016

INNOVATIOJN

In association with Strategy + Buisness

Chibuike Amaechi signed the agreement on behalf of the Federal Government. China Civil Engineering Construction Company (CCECC) has been awarded the Lagos-Calabar coastal railway line

Coastal railway line in Nigeria

THE COURAGE TO CHANGE BEFORE YOU HAVE IT

n January, GE announced plans to move its headquarters from Fairfield, Conn., to Boston. The move to the Seaport District, the city's innovation hub, is symbolic of the digital transfor mation the 123-year-old company has undertaken. Central to GE's transformation plan is the decision to integrate its software unit, global IT and commercial software teams, and cybersecurity capabilities into a new digital business unit. GE's goal is to make its industrial products "smart": Connected to the company's ecosystem of apps, these machines will communicate automatically when they need maintenance, thus eliminating downtime and lapses in productivity. With this move - arguably GE's most ambitious undertaking since its Edison Engineering Development Program the company is aiming to become the dominant player in the industrial Internet of Things. GE is not the only company with an ambitious transformation agenda. GM, with its research in driverless cars and US$500 million investment in Lyft, is moving into the rapidly changing ridesharing industry. The companies understand that customer expectations are changing dramatically. GE sees that with machines getting smarter, customers are looking for greater productivity, while GM sees that with the advent of driverless cars and ride-sharing services, people are becoming more interested in transportation and less in car ownership. In this sense, GE and GM resemble the visionary self-made billionaires my colleague Mitch Cohen and I analyzed for The Self-Made Billionaire Effect: How Extreme Producers Create Massive Value (Penguin, 2014). We interviewed 16 of them in person, including Jeffrey Lurie, film producer and owner of the Philadelphia Eagles; Glen Taylor, founder of Taylor Corporation, one of the largest printing and electronics companies in the U.S.;

a n d J o e Mansueto, founder of Morningstar. When asked how they came up with the ideas for their blockbuster p r o d u c t s o r John Sviokla services, nearly all of the billionaires said they knew what their customers were going to want long before the customers themselves. They had what we call "empathetic imagination": They understood on a very practical level how technological, social, and market changes would affect customer needs, and they had the imagination to envision the products or services that would meet them. This ability to predict the next big thing is characteristic of the most successful entrepreneurs, regardless of industry. Lurie, an avid sports fan, recognized in the early 1990s that with the advent of cable TV, football games were likely to become the next great TV entertainment. "Nobody really saw the fact that the NFL was producing hit television shows that were starting to dwarf anything that Hollywood was p r o d u c i n g. . . . [ W i t h c a b l e ] t h e d i s t r i b u t i o n o f t h i s wa s j u s t beginningâ&#x20AC;Ś. I felt there was going to be a significant paradigm shift." A similar story can be told about Taylor. While working at a local printing shop, he saw that wedding invitations were the company's sole source of profit, and could be the source of a burgeoning business. Taylor asked his friends what they wanted in wedding stationery. "They said, 'I want stationery that matches my dress.' Or, 'I want

GE and GM resemble visionary self-made billionaires.

something pretty on it other than just two rings intertwined,'" he recalled. "So I went out and developed those products that the bride said she wanted." Mansueto likewise had an innate sense for what people would want. As a mutual fund investor in the early 1980s, he used to read the quarterly prospectuses published by investment firms. Poring over them one day, Mansueto realized it would be incredibly useful to have all the information about similar funds in one publication, along with a quick assessment that compared them. "Gee, this could be a business," he thought. The GE and GM senior executives taking their companies down new paths are also empathetically imaginative. They, however, face a challenge that the billionaires we studied weren't up against. Whereas entrepreneurs like Lurie, Taylor, and Mansueto designed their businesses from scratch, established companies like GE and GM have to take an entrenched business model and transform it. That requires wholesale reinvention, which is one of the greatest business challenges there is. It's difficult not just because it requires major changes to practically every aspect of the organization - it also means placing a bet on customer preferences that are far from certain. And it means choosing to undertake an tremendously costly venture, before a crisis makes it necessary. In short, it takes courage, which I believe is the hallmark of great leadership. What gives the GEs and GMs of the world the courage to reinvent themselves? The answer is complicated, but one thing is clear. They do it because they have a relative view of risk, like the entrepreneurs we analyzed. Case, Lurie, and Taylor all believed that what they stood to gain - an enormous untapped market - far outweighed what they stood to lose. So, as you search for the next big opportunity, it's worth asking not only what it is, but whether you have the courage to seize it. John Sviokla is the head of Global Thought Leadership at PwC (PricewaterhouseCoopers LLP), where he also works with clients on strategy and innovation. In addition, he leads the Exchange, the firm's think tank. www.cedmagazineng.com July 2016 | 39

DEVELOPING STORY

CLIMATE CHANGE

West. "I'm just upset my grandkids are not going to see what I saw: beautiful forests in the West," says Mike Wheelock, a veteran woodsman with Republican bumper-stickers on his truck, whose company helped extinguish the Stouts Creek fire. What could avert that decline? Plainly, nothing will, unless global warming is halted or slowed. Mr Obama said as much in his speech at Yosemite, in which he sought to channel the reverence many Americans feel for their national parks into concern for the climate that governs them: "Rising temperatures could mean no more glaciers at Glacier National Park." To that end, he also invoked two architects of America's publicly owned forests, Theodore Roosevelt, the founder of 150 of the 154 national forests, and his inspiration, John Muir: "We've got to summon that same vision for the future." Bug in the system It is not hard to guess what Roosevelt would have done about carbon emissions. A believer in enterprise, and the government's duty to regulate it, he would have taxed them: "In this great work [of environmental protection]," he declared in 1910, as the vast fires of that year were raging, "the national government must bear a most important part." The fact that, a century later, America may elect as president a man who claims to believe global warming is a hoax invented by the Chinese looks like a setback not merely for democracy, but for human evolution.

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Foiled by Donald Trump's cynical party, Mr Obama has done less to cut emissions than he would have liked. Yet, closer to the woods, there is progress. After decades of conflict-which peaked in the 1990s, when a row between loggers and greens over an endangered owl led to violence, a shutdown in logging across the West and the near-collapse of the USFS-many former foes now collaborate to manage forests better. Since 2009, when Congress passed legislation to encourage such partnerships, over a score have been formed between businessmen, greens, politicians and federal agencies to oversee thousands of acres of public forests. One result has been a hardening acceptance of the need to thin them, including by controlled burning. Separately, over the past 15 years or so, similar partnerships have been formed in many cities to improve management of their forested watersheds. The best, for example in Denver, Flagstaff and Santa Fe, include provisions for downstream water-users to help pay for forest management. "It turns out that bringing people together to reach a consensus on what is to be done to manage a landscape really works," says Tom Tidwell, chief of the USFS. The watershed of Ashland, a former mill-town in southern Oregon, which was in the thick of the owl crisis, provides a good illustration. "For two decades we couldn't move in these forests without being sued," says Donna Mickley, the

local USFS ranger. The result, in 2010, was a forest management agreement between the forest service, the city government and two NGOs, the Nature Conservancy and Lomakatsi Restoration Project. This looks like a watershed for the Ashland watershed. The foresters and greens work together to survey, thin and improve the forest; the city has introduced a water tax-equivalent to $1.50 on each household bill-to help pay for the work. Locally based, broadly supported and businesslike, the scheme provides a model for managing climate change that is well-suited to American pragmatism and civic traditions. A big question is whether such progress can help build a consensus for more serious emissions-cutting. Bipartisan support for the new forest collaborations is encouraging. "It doesn't seem to make a difference what party the local official is from," says Mr Tidwell. Yet there is a long way to go. Indeed, the lack of much public disquiet over the arboreal havoc out West is striking. "The American, the daily witness of such wonders, does not see anything astonishing in all this," wrote Alexis de Tocqueville, marvelling at the new continent's vast forests and their rapid clearance. "This incredible destruction, this even more surprising growth, seem to him the usual progress of things in the world." That was in 1831; it is largely true today Culled from The Economist

Stay ahead with Africa’s most respected business magazine Inside Business Africa keeps you upto date and weel informed www.insidebusinessafricang.com

AFRICA RISING Construction of new hotels in Africa surges

BOOSTING BUSINESS

Tanzania-Zambia road to boost business opportunities

he Tanzanian government is set to construct a 50km road that will act as a highway linking Tanzania to Zambia. The Tanzania-Zambia road is expected to boost business opportunities between the two countries. Deputy Minister for Works, Transport and Communication, Eng. Edwin Ngonyani said that the construction of the Tanzania-Zambia road will be of tarmac level and cost US$ 5.3m. "The road will cost a whopping US$ 5.3m and will be developed to enhance business oppor tunities between Tanzania and Zambia," said Eng. Ngonyani. Further, he pointed out that the tenders and the feasibility study for the intended projects commenced in July 2014. It was sealed in January 2015. He added that in this financial year 2016/17, the government has set aside the stated amount for the construction to begin. The 50km Matai-Kasesya road is set to boost trade between Eastern and Southern Africa. This is because Zambia is the second largest producer of copper African. Consequently, it heavily relies on the road transport for shipping exports and mine inputs overseas through eight neighboring countries. The road network of Zambia is also used heavily by neighboring countries to reach different

ports in Africa. Additionally, there is a 112km road from Sumbawanga-Matai-kasanga port road which is at a tarmac level and is currently 53 per cent complete, whereas 56kms are already constructed but at gravel level. American Millennium Challenge The road which is part of a 342 km Tunduma Sumbawanga Matai Kasesya road is currently undergoing a huge upgrading. Funds emanate from the American Millennium Challenge Account in conjunction with the Tanzanian government. However, the upgrading works will briefly entail the construction of a two lane trunk road with service roads in built up areas and safety barriers at specific high fills and bends.

President jakaya-Kikwete of tanzania

he number new hotels in Africa is increasing significantly the annual W Hospitality Group Hotel Chain Development Pipeline Survey has revealed. The Pipeline survey further states that the number of hotel rooms planned for construction in 2016 in Africa has soared to 64,000 in 365 hotels; this shows an increase by 30% than development activity last year and more than double the development pipeline in 2009. This is especially noted in major countries like Kenya, Angola, Nigeria and Egypt which have really begun to pick up. The cause of a surge in the number of new hotels in Africa is majorly due to the strong growth in the sub-Saharan Africa which was up 42.1% in 2015 and is significantly outstripping Nor th Africa which accomplished only a modest 7.5% pipeline increase this year. Also, in the latest rankings by country recorded Angola, listed among the top 10 for the first time pushing Egypt out of second place, due to a major contract that was signed by AccorHotels. "For business, trade and capital investment, Africa remains as an attractive proposition which continues to lead for demand for accommodation and other hospitality services," Matthew Weihs, the Managing Director of conference organizer for Bench Events said. In Kenya for example, City Lodge Hotels pointed out that it was yet to construct a 169 hotel room in Nairobi which is projected to be operational in the second quarter of next year. Upcoming hotels in Nairobi also includes Tune hotel. The Financial Director of the hotelier, Mr. Andrew Widegger confirmed the reports and said that construction of the group's hotels in Dar es Salaam, Maputo, and Windhoek was expected to commence this year during the current quarter. Their primary client is the business traveler. W Hospitality Group is the Proud Winners of the Ai Tourism Investor Award, "Tourism Investment Advisor of the Year” www.cedmagazineng.com July 2016 | 11

CLIMATE CHANGE

DEVELOPING STORY

BREXIT FALLOUT

Kenya Pipeline banks on Eurobond amid brexit fears

enya Pipeline banks on Eurobond to fund pipelines construction even as economists cautioned that sustained turbulence in foreign money markets following theUK surprise vote to exist the European Union could increase the price of bonds. The state owned firm is exploring the possibility of issuing a Eurobond. This it believes, will help fund the construction of both internal and external crude oil pipelines. The state-owned corporation is sourcing for more capital to finance the implementation of a number of mega projects, mainly in transportation and storage of crude oil. "We are going to look for capital to finance these projects. It is more than likely that we are going to resort to the capital markets but the reality is that will need to go to external sources. It will definitely be an external financing. The concept is there but it needs to be done systematically, otherwise it could be disastrous. We have to look at the timing," KPC chairman John Ngumi said. "This is something that we shall start looking at in the next financial year (2016/2017)," added Mr Ngumi.

It is still unclear on how much the corporation will be sourcing from foreign lenders. However, the company's current capital expenditure is approximated at $582.81m. This amount expected to raise after factoring in the costing of the Ethiopian-Kenyan pipeline. Mr. Ngumi said the corporation's revenue is dollar-dominated hence limiting its exposure to currency. He added that under such conditions, the corporation is forced to borrow in dollars. Brexit But there are fears that the Brexit vote will enhance aversion of risk among investors, hence prompting a spike in risk premium on bonds. Daniel Kuyoh, an investment analyst at Alpha Africa asset managers says Eurobonds are mainly issued in dollars. Hence he adds exchange rates are expected to play a big role. According to information from Bloomberg the yield on a 10-year government bond in the US stood at 1.5 per cent last week, Canada (1.12 per cent), UK (0.94 per cent) and Germany (negative 0.11 per cent).

ARRESTING THE DECAY France to upgrade major road and drainage in Ghana

rance have concluded signing of a loan agreement of US$41.6m for the upgrading construction of a major road and drainage in Ghana in Kumasi 12 | www.cedmagazineng.com July 2016

area. In the presence of France Ambassador, Francoise Pujolas, Deputy Finance Minister, Mrs Mona Quartey and

the Deputy Resident Manager for Agence Franรงaise de Development (AFD) Xavier Muron signed the credit facility agreement. The fund will boost finalizing the works undertaken under two projects and is financed by the AFD. The by-pass project includes the construction of the Second Urban Environmental and Sanitation Project (UESP II), the Ofirikrom-Asokwa by pass and Lake Road. On completion the by-pass project is expected to ease traffic congestion, save time for the road users as well as preventing floods around the project area. Additionally, the road and drainage in Ghana will as well contribute to the development of the region. Mrs Quartey assured Mr. Pujolas of Ghana's commitment to maintain a good bilateral cooperation with France. She added that Ghana's President John Dramani Mahama will support efforts to pursue prudent policies that are aimed to stabilize the country's economy as well as increase the country's transformation pace. According to Mr. Pujolas France has committed to support Ghana and offer the country better living standards to Ghanaians through the oriented development projects such as the Kumasi Extension. Agence Franรงaise de Development (AFD) is the main implementing agency for France's official development assistance and the financial institution to developing countries and overseas territories. The institution is France's bilateral development finance mechanism. The institution also plays the role of public industrial and commercial booster with the status of specialized financial institution The AFD Group is composed of a financing arm Proparco that supports the private sector. In French overseas provinces, Proparco, is a shareholder of housing companies and a financial company whereby the Group plays a specific role in this sector. However, AFD is as well responsible for the management of the French Global Environment Facility (French GEF), that co-finances projects that reconcile environment and development.

On a clifftop in the Sierra National Forest, Ray Porter, a USFS ranger, surveys a canyon, containing 30,000 acres of Ponderosa pine forest, that narrowly escaped last year's mega-fire. But it has not been spared. Six months ago the canyon was green with streaks of rusty brown, denoting where ailing trees had succumbed to mountain bark beetles. A critter that feasts on the inner bark of conifers, it seeks out trees which, because droughtstressed, are losing their ability to repel pests. Having established a beachhead in one, the gregarious Coleoptera releases pheromones to attract a swarm of reinforcements, which usually kills the tree. There is now hardly a dot of green visible in the canyon: almost the entire forest appears dead and brown. "If this is not the worst outbreak in America," says Mr Porter, "I'd hate to see worse." Beetlemania It is unexceptional. Since the 1990s, when such die-offs became more frequent, 42m acres of North American pine forest are estimated to have succumbed to barkbeetles, and the blight is growing. Aerial surveys of the Sierra Nevada show telltale rusty streaks seeping north like poison. Even species rarely affected by beetles, such as whitebark pine, are dying. In the boreal forest spruce-beetle populations are also rocketing; in the southern pinyon pine forests a hungry bug called pinyon ips, not formerly known to kill trees, is killing many. Though relatively unscathed by fire, America's wetter eastern states, where over 80% of the precolonial forest grew,

are also bug-riddled. The hemlock woolly adelgid is ravaging their hemlock forests; a southern pine beetle, migrating northward, has reached New York. The reasons for the surging pestilence are much the same as those for megablazes. Warmer, drier weather, including milder, shorter winters, has caused an explosion in bug populations, as well as in the number of stressed trees they feast on. The tangled state of America's woods is another pro-beetle development, though its effect is more marginal. Wherever beetle populations soar, primary forests, of which the West has most of America's last examples, are also dying. Both problems, fire and pests, are liable to get worse as the climate warms. The USFS expects the area of forest burned to double by the middle of the century. Even so, it predicts that beetles will often kill more trees in a given year than fire. Even if the climate were stable, this onslaught would make it hard for the forests to regenerate. Mega-fires destroy seed stocks and nutrients over a vast area; when a pine forest dies abruptly from pestilence, it is usually replaced by grasses and shrubs which, in the absence of a natural fire cycle, can stop trees growing. Putting out fires Mitigating those effects would require a massive intervention to clear dead trees and plant new ones, which is currently unthinkable. Last year the USFS spent more than half its budget on firefighting, to the detriment of its ongoing effort to thin some 80m acres of dangerously overgrown forest. By 2025, the service estimates that 67% of its budget will be

consumed by fires. Even if the lost forest were replanted much of it would fail: because species distribution is changing as temperatures rise. Broadly speaking, a warmer, drier climate should force trees uphill and to higher latitudes; the Ponderosa pine will climb from the montane to the subalpine zones, displacing or finding refuge among white firs and lodgepole pines. Anticipating this, foresters are replanting trees at the highest elevations of their range. The effect of fire and bug-death has, in this way, created opportunity for a massive experiment in tree migration and regrowth.

But it may not be a predictable, or happy, transition. Whether a species can migrate may depend as much on factors such as soil type, distance from a seed source, the pace at which it reaches reproductive maturity and the vulnerability of higherelevation vegetation to infiltration as on temperature alone. The rate of warming will be even more important. It took the Ponderosa pine 11,000 years to migrate from New Mexico to Wyoming after the most recent Ice Age: it will not keep stride with rapid warming. A study of USFS data suggests nearly 60% of tree species are experiencing range contraction at both their northern and southern boundaries. Only 20% are making the predicted northward shift. So forest ecosystems will not migrate wholesale-Birnam Wood-to-Dunsinanestyle-but in disordered versions of their current states. Climate envelope modelling suggests high-elevation species, such as whitebark pine and Rocky Mountain fir, could be pushed to the brink. The losses will be partially offset by new growth: America's forests will be vast and productive for a long time yet. As its snows melt and permafrost thaws, the Arctic is getting greener, so Alaska should grow more and bigger trees. In the eastern states, where trees have been creeping back ever since the more fertile Midwest was opened to the plough in the mid-19th century, their recovery will continue. Overall, however, they will be younger and more fragile, a probable cause of warming, not a means to prevent it, and perhaps less extensive, especially out ? www.cedmagazineng.com July 2016 | 37

CLIMATE CHANGE HABITAT 111 ENERGY

denser, in part owing to a reduction in logging, which makes them a significant carbon sink. They suck in greenhouse g ases equivalent to around 13% of what America emits by burning fossil fuels. Yet the USFS predicts that within a c o u p l e o f d e c a d e s, because of slowing growth and climaterelated blights, the forests will become an emissions source. That would have a commensurate impact on the climate; it would also be grim for America, whose long disdain for one of its g reatest bounties, the forests on which its economy was built, is belatedly yielding to smarter, more collaborative sorts of forest management. In much of the West fire is an important part of the natural system. The trees have evolved with it; slice through a 2,000year-old giant sequoia, if you must, in one of the scattered groves of the Sierra Nevada where the world's biggest tree is found, and its stump-rings would show burn-marks every 10-35 years. At such intervals, wildfires expunge disease, remove leaf litter and thin the understorey, creating space for new growth. They also moderate their own system, by preventing a build-up of fuel that can turn a restorative scorching into an inferno. Many plants are adapted to survive and take advantage of frequent burns. The sequoia's thick bark makes it almost fireproof; it releases its cones in response to the heat of a wildfire and without this it may not reproduce. Much of the West is still parched. This is largely a result of the combined effects of La NiĂąa-a cyclical series of weather events that produces drier conditions in the southern forests of the West-and man-made warming. Climate change is estimated to have made California's drought 15-20% more severe; in Alaska, where the average winter temperature has risen by over 3Â°C in the past six decades36 | www.cedmagazineng.com July 2016

over twice the average for the rest of America-its impact is greater. By accelerating the melting of winter snow, for example, in Alaska and the mountains of the West-the Rockies, Cascades, Sierra Nevada-hotter temperatures have made the fire season longer. Since 1970 the average duration has increased from 50 to around 125 days; in Alaska, which had its second-biggest year for fires on record in 2015, some of last year's blazes are still alight. Mismanagement is also fuelling the flames. Ever since 3m acres of Idaho, Montana and Washington went up in smoke in 1910, the government has suppressed fire zealously. It was said that any new blaze must be extinguished by 10am the next day. This has stopped some sequoias from reproducing for decades. It also removed the self-moderating effect of frequent fire from a landscape prone to burn. Logging, followed by dense modern tree-planting, reinforced the effect.

Where most western woods were once dominated by wellspaced large trees, they are now a tangle of smaller specimens, fighting over too little water, atop rising mounds of brush. Guy Fawkes could not have arranged things better. The firesuppression effort is still zealous. It has to be, loose zoning laws having encouraged construction of many houses in the inferno zone. As a result the number of wildfires is falling: from 250,000 in 1981 to 68,000 last year. But when a fire gets going, it can easily turn catastrophic. The Stouts Creek fire was started on a searing late-July day by a spark from a mower. Within minutes it e n t e r e d t h e surrounding forest, where it vaulted the tangled understorey to the upper branches, becoming a high-severity crown fire-the sort that leaves little but dead animals behind. The heat of the blaze created its own weather system: an anvil-topped pyrocumulus cloud rode the flames, shooting incendiary bolts of lightning into the nearby forest. At its height the fire devoured 1,000 acres an hour; it burned for a month. That was a modest blaze by recent standards: a proliferation of mega-fires, which consume over 100,000 acres, is another feature of the new fire regime. Over the past decade there have been on average 10 megafires a year. Last year there were 15, including one in the Sierra Nevada that consumed over 150,000 acres, turned the sky over the Central Valley brown and occupied 4,000 firefighters. The total cost of such a blaze, including lost timber and the effects of pollution, is huge. A decade-old study of three fires in San Diego County, California, put their cost at $2.45 billion.

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www.cedmagazineng.com March 2016 | 13

COVER INTERVIEW OIL AND GAS REPORT

CLIMATEENERGY CHANGE

drought in California and Oregon that had turned their woods to tinder. Yet it is running at par with the average of the past ten years, which include the five worst years on record. In the year to July 1st, 2.1m acres of America were razed by nearly 26,000 fires; 19 large ones are currently blazing, mainly in the West (see map).

The

RAVAGE WOODLAND

Committed

PROFESSIONAL

THE INTEGRITY DRIVEN ENGR. GEORGE OKOROMA, FNSE, CHAIRMAN GAMBETA GROUPE HAS CONSISTENTLY DEMONSTRATED HIS COMMITMENT TO THE PROFESSION BY BUILDING CAPACITY AND STRONG ENTERPRISES

ngr. George Chukwulewa Okoroma, FNSE, FNICE, FNIHE, JP, Group Managing Director of GAMBETA GROUPE LIMITED, the firm with the vision of pioneering digital engineering in Nigeria. And the mission to bridge the gap between international and domestic companies, for a sustainable national development. By Festus Oseji Engr. George Chukwulewa Okoroma, an indigene of Omoku in Rivers state, is a business tycoon and an engineer by profession. He started his academic pursuit at People State Primary School and Sancta Maria High School, all in Omoku his home town, and got First School Leaving Certificate (FSLC) and WAEC 1975 with distinction respectively. Because of his interest in mathematics and other science subjects, after his secondary education gained admission into the then college of science and technology Rivers state, which is now Rivers State University of Science and Technology (RSUST), Port Harcourt and got Ordinary Diploma in Technology (ODT) Civil Engineering 1978. Later he 14 | www.cedmagazineng.com July 2016

proceeded to University Paul Sabatier, Toulouse, France to further his studies under the bureau of external educational aids, which was introduced during the time of Obasanjo's military administration. He had to study French for six months before proceeding to obtain his Bachelor of Technology (B. Tech) in civil engineering in 1981. In 2006, he was Certified a Staadpro Engineer by REI Bentley Systems (UK) Ltd. He is a certified and registered engineer of the Nigerian Society of Engineers (NSE) and the Council for the Regulation of Engineering in Nigeria (COREN). He is also a member of Institute of Diagnostics Engineers UK (MIDiagE). Engr. George Chukwulewa Okoroma FNSE, FNICE, FNIHE, JP, sits at the helm of a group of companies that has interests in Engineering & Technical Consulting Services, Construction, Fabrication, Oil & Gas Installations, Logistics, Manpower Development, Hospitality, Real Estate, and Digital Technologies. In this exclusive interview he bears his mind on his professional practice over the years and the need for all engineers to embrace technologies and collaboration in all facet of engineering practice.

Stricken trees provide clues about how America will adapt to global warming-but little hope that it can be averted

T WAS the dead animals his team found upsetting, says Steve Lydick, surveying, from a high ridge in the western Cascade range, the burnt, blackened valley below. Dotted with charred boles, like used matchsticks protruding from the cracked, depleted soil, its sides drop to a stream from which the Stouts Creek fire, which consumed 25,000 acres of mixed conifer forest in southern Oregon last August, took its name. As the inferno roared through the valley, coyotes, bears, deer and rodents of all kinds rushed for the water. It fell to Mr Lydick's colleagues in the Bureau of Land Management, a federal agency that manages almost a quarter of a billion acres in America's 12 western states, to dispose of their remains. "Some found it pretty distressing," he says. It is a grisly image: ash-black water running through singed carcasses. It also seems paradoxically suggestive of how much harder it is to be moved, in any comparable way, by the vaster devastation taking place in America's forests, owing to fire, pestilence and drought. All are indicators of a warming climate, to which decades of human intervention have made the forests-the fourth most expansive of any country-especially susceptible. These blights are therefore growing, especially in the semi-arid West. Among the biggest tracts of public land in America, the western forests have

for over a century inspired conflict between ranchers and rangers; loggers and greens; the federal government and some of those who hate it most. As a result they have helped shaped America's environmental politics. Hence Barack Obama chose Yosemite National Park, in California, to issue his latest exhortation against climate change last month. A heavenly place, symbolic of the country ("It's almost like the spirit of America itself is right here," the president enthused), Yosemite has all three problems; in 2013 it was scorched by California's third-biggest wildfire ever, which consumed over a quarter of a million acres in all. Politicised, documented and culturally sensitive, the ravaging of America's forests is an important gauge of man's ability to mitigate and adapt to the warming he has caused. The scale of the tree loss is staggering. Last year over 10m of America's 766m acres of forest were consumed by wildfires, sparked by lawn mowers, campers or lightning (see chart). This was the biggest area burned since 1960, when records began, despite a firefighting effort that involved over 30,000 people and cost the federal government over $2 billion. This year's fire season was expected to be less severe, winter rain and snow having taken the edge off a four-year

The growth of wildfires is a worldwide problem, with even bigger burns elsewhere. Siberia, Tasmania, Canada and Indonesia have seen record-breaking fires in recent years. According to Greenpeace, fire consumed over 7m acres of Russian forest in the year to May 23rd (the Kremlin offers much lower figures). The area of Canadian forest burning each year has roughly doubled since the 1970s; a wildfire near Fort McMurray, in Alberta, which started in May, has turned 1.5m acres of forest and 2,400 buildings to ash. Now heading north through Saskatchewan, the fire is reckoned to be Canada's costliest natural disaster. The devastation wreaked in American forests by insects is less headlinegrabbing, but ecologically as dramatic. Last month the United States Forest Service (USFS), another of the federal agencies that together manage nearly half the land in western states, said that, since October, it had recorded 26m trees killed by the mutually-reinforcing effects of bugs and drought in the southern part of California's Sierra Nevada range alone. That suggested 66m trees had died there since 2010. Such destruction, caused partly by warming, will itself cause more warming. Many American forests are growing

? www.cedmagazineng.com July 2016 | 35

TECHNOLOGY

WHY A CEOâ&#x20AC;&#x2122;s DIGITAL IQ MATTERS

ou don't have to be a technology company - or a technologist - to be concerned about the impact and rise of digital business. Whether they are implementing a proactive strategy or responding to external disruptions, companies today find themselves at different stages of digital transformations. And this poses a new challenge to leaders. Developing and executing a digital strategy is too important to delegate or outsource. Indeed, according to the 2015 Global Digital IQ survey, the vast majority of chief executive officers - 76 percent - believe they are a champion for the use of, and investment in, digital technologies. Even more telling is the significant uptick in this support - as reported by those directly under the CEO - that we've seen over the last two years. In 2013, only 57 percent of executives surveyed said their CEO championed digital. In 2014, that number spiked to 71 percent, and it rose again to 73 percent in 2015. The 2015 Global Digital IQ survey, which draws on the insights of nearly 2,000 global business and technology executives from 51 countries, helps explain why CEOs are often behaving as if they are chief digital officers. And it's not simply matter of bosses wanting to appear au courant with the latest trends. Rather, getting intimately involved with digital strategy is now an integral component of every CEO's job.

technology and thinking now permeates every business function, including supply chain management, h u m a n r e s o u r c e s , Juan Pujadas financing, and sales and marketing. Moreover, the findings from the report also show that 69 percent of respondents report that business and digital strategy are shared enterprise-wide at their companies. And nearly one-third of respondents said their companies are investing more than 15 percent of revenue into technology investments that span all areas of the business, not just IT. So it behooves the executive who is the ultimate manager of all those functions to be focused on the comprehensive digital impact. Second, digital investments can be vital levers for improving performance. Based on our research, it's clear that those companies that excel in their digital strategy, innovation, and execution - that is, they're more skilled at turning data into insight, are more proactive in cybersecurity, and are more consistent in measuring outcomes from digital investment - are twice as likely to achieve rapid revenue and profit growth. The report shows that 76 percent of companies make

Here's why. First, while technology investments are generally rising (and hence merit a CEO's attention), they are also being applied throughout all areas of the business. In fact, the report shows that the majority of technology spending (68 percent) is now coming from budgets outside of IT, a significant increase from 47 percent in 2014. In other words, digital investments are no longer the province of procurement or a chief investment officer. Digital 34 | www.cedmagazineng.com July 2016

COVER INTERVIEW ENERGY

In association with Strategy + Buisness

The majority of technology spending (68 percent) is now coming from budgets outside of IT, a significant increase from 47 percent in 2014.

investments primarily for competitive advantage and 54 percent of CEOs admitted that they invest in technology to grow revenue or increase profits. If CEOs are to be evaluated, judged, and compensated based on the performance of their operations, they need to be conversant with the tools and tactics that can mean the difference between success and failure. Third, by virtue of their positions, CEOs have the unique ability - and imperative - to take the broader view, looking ahead to the future, laterally to competitors, and across industry borders to potential disruptors. Our research suggests that executives are often too focused on the power of digital in delivering short-term growth when they also need to consider the overall disruption that digital will bring internally to their companies and to their industries. And the Digital IQ survey revealed that CEOs had a much better comprehension of the disruptive threat and opportunity associated with digital than the rest of the C-suite: 16 percent of CEOs expect digital investments to disrupt their own or other industries, or to combat new industry entrants, compared with an average 5 percent for other senior executives. If they are to thrive in a digital world, organizations must understand the importance of collecting and analyzing data, improving efficiency through the use of digital technologies, and transforming organizational culture. The person who sits at the top of the corporate ladder must be the chief champion of such efforts. And implementing a true digital transformation isn't easy. It requires immense forethought, the courage to challenge deep-rooted beliefs, and the ability to follow up and execute. Digital transformation is comprehensive. It's not just a matter of transforming part of the business; it's about transforming the entire business. And who else but the CEO should be leading that charge? Juan Pujadas is vice chairman and global leader of advisory services for PwC. Based in New York, he is a partner with PwC US.

ENGR. GEORGE OKOROMA, FNSE

? www.cedmagazineng.com July 2016 | 15

ENERGY

COVER OIL ANDINTERVIEW GAS REPORT

As an entrepreneur and engineer, I have used my wide knowledge and exposure to contribute to the growth of the society. Passion and excellence remains my drive in this profession and my advice is that all upcoming engineers should imbibe the same attribute because what you do today will outlive you and there is need to leave a legacy for the built environment. Speak on your professional experience After graduation in 1981, I spent about four months in France and came back home, but before I travelled to France, as an Engineering Student I had my Six (6) months industrial work experience with Taylor Woodrow (Nig) Limited - 1977. While on the job, I gained experience from the construction of science & engineering blocks at the Rivers State University of Science & Technology. I also worked with Zenith Dredging & Civil Engineering Company Limited in 1977. There, I was involved in dredging, sand filling, sheet piling and construction of reinforced concrete retaining walls and paving slabs for Onne lighter berth terminal at Onne near Port Harcourt. While in France, I worked for six (6) months with the Regional Works Dept (D.D.E), Tarbe, France in 1981. I was privileged to participate in the investigation, estimation, and supervision of regional highways construction in an erosion prone area with special attention on retaining walls and underground water seepage within Tarbe area in southwestern region of France. During my National Youth Service NYSC, I was privileged to serve briefly in the then Rivers State Directorate of New Town in 1981. Our main area of activity, then, was the d e ve l opment of new town proje cts in the then old R ive rs State (now Rivers and Bayelsa States). I also wo r ked with First Alu minium Products Com pany Limited (then ALC AN Aluminium Prod ucts). I was involved in t h e d e s i g n , produc t i o n

ENGR. GEORGE OKOROMA, FNSE

and installation of all forms of long-span roofing sheets, cladding and flashings for industrial, commercial and residential developments for the entire Eastern Region from our base in Port Harcourt. My working experience over the years as a qualified civil engineer cut across several sectors of the built environment, which started when I joined Gokon Nigeria Limited. And between 1982 and 1989, I rose from the post of a project engineer to a project manager. While at Gokon Nigeria Limited, I was involved in highways construction and repair for the federal ministry of works. We carried out the maintenance of federal roads for the Federal Ministry of works from 1982 to 1986. We were also involved in so many road design and construction projects. The job exposed me to almost all the technical requirement in road design and construction. By 1986-1989, I started thinking about becoming an entrepreneur with the experience I had gathered working as a project manager. Around that time, the project director and the co-founders had issues. He left the company and I had to assume his role which gave me the opportunity to learn how to run a construction business. So, by 1989 I started thinking of setting up my own firm because I already had an idea about what it takes to establish a company. Gambeta Nigeria Limited began operation in 1989, and we started by providing engineering services to the oil and gas companies operating in the south-south region. I didn't stop there, we ventured into logistics and manpower development under the umbrella of Chilewa Investments Limited to support the growing need for heavy duty equipment and light vehicles leasing to the Oil & Gas Companies. We are licenced by the Federal Ministry of Labour and Productivity as recruiters of labour in Nigeria. My third venture started when we approached some companies for jobs, and during the discussion we discovered that they needed construction firms to work in some of the community base projects. As part of their corporate social responsibility they were planning to build schools, hospitals, development centers etc. However, the community members wanted to do some of the jobs by themselves despite not being qualified. We saw the need to assist them in building these facilities by playing the role of a project consultant. We did consulting services for them by contributing our professional knowledge to help them in actualizing the objectives of the oil companies. That was how Gapec Consultants Limited came into existence. We have gone beyond that and have rendered consultancy services to various agencies in Nigeria such as NNDC, TOTAL E&P, Greater Port Harcourt Development Authority, Federal College of Education Technical Omoku, FMWR just to mention a

A coal power plant in South Africa.

AFRICA’S POWER CHALLENGE Saudi Arabia, South Africa lead power generation construction in MEA

ccording to the new report from Timetric's Construction Intelligence Center (CIC), the total value of the power generation construction projects pipeline in the Middle East and Africa stands at US$876.6 billion, with Saudi Arabia and South Africa accounting for the largest shares, with project pipelines valued at US$275.5 billion and US$167.4 billion, respectively. Based on the projects tracked by the CIC, the nuclear sector has the highest value pipeline, at US$367.5 billion, with Saudi Arabia taking US$211 billion of this value. Gas power generation is in second place with a value of US$149.4 billion. Renewables are beginning to make inroads in terms of being alternatives to fossil fuel investment, with solar power projects having a combined value of US$126.5 billion, ahead of hydroelectric with US$46.1

billion and wind with US$20.1 billion. Saudi Arabia leads in the nuclear, gas and oil sectors, and is one of the three countries in the region, together with Iraq and Zimbabwe, investing in the oil sector. As both Saudi Arabia and Iraq are major oil producers, this fuel is a crucial part of the country's power generation strategy. South Africa has the highest

investment in coal power generation, followed by Egypt, and is historically dependent on the fuel as a main producer of coal. Egypt has no history of coal power generation but plans to have 15% of its power generation supplied by this fuel by 2030, although still dependent on imported coal. Meanwhile, Nigeria surpasses other countries in the solar power sector, with projects valued at US$39.5 billion. It is to a large extent due to the Nigerian government investing substantially in the sector to connect its population to a power source. Neil Martin, Manager at Timetric's CIC comments: "Although the countries in the Middle East and Africa are beginning to invest in renewable fuel, with countries such as Nigeria leading in solar energy, Kenya with geothermal and Ethiopia with hydroelectric, nuclear power generation remains a significant part of the strategy for Saudi Arabia, South Africa, Iran and the UAE. Gas, oil and coal power continues to play a significant role in the power strategy for most of the countries studied as ongoing power demands from growing populations and increased industrialization drive investment in these sectors."

MARCH 2016

FOR SAFER

HIGHWAYS

N1000.00

Incorporating OIL AND GAS REPORT

Engr. Dr. Isa U. Emoabino, Chairman, Nigerian Institution of Highway Engineers is forging ahead to position the practice to ensure safer Highways - led member of the body to AG-Dangote Construction

Take the lead in c-business SMART CITIES A global initiative to encourage world’s cities to became “Smart” has been hailed by built environment professionals, and are united on the need for Nigeria to start focusing on buildin g smart cities

www.cedmagazineng.com

Nigeria’s No. 1 Development Professional Journal

? 16 | www.cedmagazine.com July 2016

www.cedmagazine.com July 2016 | 33

ENGINEERING A & A

WATER

Continued from page 31

SAFE WATER AFRICA

Leaders to ensure availability of safe water in Africa by 2030

s the sixth edition of the African Ministries Council on Water and Sanitation (AMCIOW) meeting draws nearer, African leaders have been advised to put in more efforts to ensure the continent achieves access to universal safe water in Africa by 2030. The historic conference to chat the way forward of achieving full accessibility to clean water and basic sanitation is scheduled to take place in Dar es Salaam next week. Mr Ibrahim Kabole, the Water Aid Country Director, while addressing reporters in Dar es Salaam yesterday on the significance of the upcoming meeting, said African leaders need to put in more effort to ensure the problem of availability of clean water is done away within the continent. "Our African leaders should undertake important measures in making water, sanitation and hygiene play an important role in economic development of the continent," said Mr Kabole. According to available statistical data, out of the 1.2 billion people that live in Africa, 695 million people, over half of the population, live without basic sanitation and 395 million lack clean water.

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High population Statistical figures are expected to be worse if urgent remedies will not be taken because come the year 2030 African's population will be around 2.2 billion. In Tanzania alone, 27 per cent of the population lack access to safe water, 66 per cent have no access to basic sanitation and hygiene and over 33 per cent of the health centres lack access to safe water and sanitation facilities. He said lack of safe water in Africa in health facilities puts patients at high risks of communicable diseases especially women and children hence leading to death of children and compromising the country's future. H e h owe ve r, c o m m e n d e d t h e government of Tanzania for efforts to ensure that the people of Tanzania get clean and safe water. "Water Aid is calling for a roadmap that will result in reaching everyone everywhere in Africa with safe water, improved sanitation and hygiene by 2030, in line with Sustainable Development Goals' he said. He said he is of belief that the country can do more to achieve universal access by the year 2030. He called on all African governments to and all stakeholders to seize the moment and achieve water security for the poorest population

conditions. The depraved weather conditions greatly affected the gas supply as the defective turret has not been working for some time now. The defective turret controls the anchoring system of the vessel. According to Alfred Ogbamey, Ghana Gas Communications Manager, the company is currently receiving 46.7 million scf of wet gas from their upstream suppliers. The company then supplies 46 million scf of lean gas to the company's main downstream off-taker. The supply from Ghana gas is based on the availability and nominations for the period However, the Jubilee partners have indicated that they will spend more than US$345mto repair the turret on the FPSO vessel by 2017. The turret has immensely forced the partners to cut down gas production from the Jubilee fields. Ghana's energy generation is most likely to be affected due to shortage of light crude oil for the plants at Aboadze. Nonetheless, the current stock is said to have reached the minimum level and is yet to be restocked. The inadequate supply of the light crude oil has led to the loss of 230MW of power from the Aboadze thermal power enclave. Power blackouts in Ghana Additionally, plants that ran on both light crude oil and gas are facing the risk of being shut down due to the limited fuel. According to the sector engineers the situation may result to more power blackouts in Ghana. VRA is currently unable to generate power from some of its turbines including those of the AMERI Plant that ran solely on gas. However, the Ministry of Power and VRA are set to meet on the issue. From the beginning of February this year unpredictability of gas supply had been a challenge given that Tullow field developed engineering and mechanical challenges with its turret bearing. Power blackouts in Ghana reached its peak in 2015 when Ghana's largest opposition group held a protest against what they called the worst blackouts in a decade.

COVER INTERVIEW

few. Today, we are a registered company authorised to practice engineering by the council for regulation of engineering in Nigeria (COREN), Nigerian Society of Engineers (NSE) and Association for Consulting Engineering in Nigeria (ACEN), which are the highest registration bodies for engineers and engineering practice in Nigeria. Being a construction company, we started thinking about another area of business that will add value to our clients whose expatriate find it difficult to travel from Lagos and Port Harcourt where their head offices are located to the rigs that are in the Niger delta region. The business that came to my mind was hospitality, and my friend a French man encouraged me into this venture. Royal Fortress Hotels Limited came on stream providing oil servicing firms who send their workers to do some jobs in the region with accommodation. We are planning to expand to another location in Nigeria. We have taken steps to encourage the production and refining of crude oil in Nigeria by setting up ChukChi Oil & Gas Limited, which at present provide services in Oil & Gas facilities, engineering, procurement, installation and construction and hope in the nearest future to participate in crude oil refining process. Burnsley technologies is our newest venture providing innovative technologies to support the engineering and construction industry. As an entrepreneur and engineer, I have used my wide knowledge and exposure to contribute to the growth of the society. Passion and excellence remains my drive in this profession and my advice is that all upcoming engineers should imbibe the same attribute because what you do today will outlive you and there is need to leave a legacy for the built environment. Can you speak on digital engineering, and the future for Gambeta? The growing use of technology in the engineering and construction industry is very imperative, and this is driven by tougher market conditions and demand from clients for better value, reduced cost and more innovation. Innovative technologies are currently being used to mitigate the risk involved in complex engineering projects. These technologies are often referred to as digital engineering, a combination of Building Information Management (the creation, collation and exchange of shared 3D models of the infrastructure's architecture, structure, and associated services) and Virtual Design and Construction (modelling software and techniques to design and evaluate possible constr uction processes). These technologies enable project teams to visualize and understand how to better undertake complicated tasks. Engineers can integrate data about a potential

design, construction and function of an infrastructure to see the most efficient methods of delivery and operation. We are also developing sensors in partnership with some international firms that'll be used for preventative maintenance. This enables engineering firms to detect signs of trouble before they develop into full-blown problems. For example, contractors can embed sensors in wet concrete, where they send real-time data about the rate at which it is curing to a bespoke app. The data collected allows the contractor to optimize the curing time and take corrective action if sub-optimal conditions are detected. In the near future, real-time data about an infrastructure will be collected during the operational phase and used to optimize its performance. This data will then be combined with existing monitoring systems such as SCADA (Supervisory Control and Data Acquisition) and BMS (Building Management Systems). One simple application in West Africa would be to monitor the use of federal and state highways. This will enable the Federal ministries to better anticipate the development of defects - pot holes, fretting and cracking. Detecting these defects early will reduce the need for costly and time consuming road resurfacing works. These digital technologies are bringing smart cities closer to reality. Therefore, we should anticipate a fundamen tal change in how people move and intera ct with their surroundings. We are internally disrupting our businesses and rethinking our business model. Gambeta is positioning itself to gain a competitive advantage against international contractors. Achieving this will require more collaboration with indig enous domestic contractors within the nation.

ENGR. GEORGE OKOROMA, FNSE www.cedmagazineng.com July 2016 | 17

GREEN BUILDING

THE EVERGREEN PROFESSIONALS OIL AND GAS REPORT

MAKING THE BIG DIFFERENCE

into many projects: Design and Supervision of Mechanical Services of Engr. Ibe Christian Ahamefula, CEng, MIMechE, M.Sc. (Cranfield), MASHRAE, University of Lagos Conference Centre FNSE, is the Managing Director/CEO, Modutrol Nigeria Limited; Managing Partner of Complex; Kano International Airport Terminal Building; New Diplomatic Krinoll & Partners Limited, a firm of Consultants with emphasis in building services Suites, River Basin development Authority engineering and management services since 1995 Guest House Complex, Abuja; Study and ngr. Ibe Christian Ahamefula, a Design of Rural Water Scheme for professional with strong E b o n y i N o r t h ; Re - d e s i g n a n d commitment to the profession was Supervision of Mechanical Services for born December 24, 1946, he hails the Imo State House of Assembly; New from Nguru Nwenkwo, Aboh Mbaise Imo State Government House Complex, LGA, Imo State. His academic pursuit Owerri; Mechanical Ser vices started at St. Patrick's College, Ikot Ansa, Consultancy for Abuja National Stadium Calabar (1960 - 1964), then Yaba College Complex; Games Village; Engineering of Technology, Lagos (1965 - 1967) and Services Design of New Lokogoma (1970 - 1972) before he proceeded to District, Abuja. Cranefield University, Cranefield, Engr. Ibe, has also contributed Bedford UK, 1975 - 1977. immensely to the profession, he was Engr. Ibe is a Chartered Engineer, Chief Inspector, COREN Engineering UK; Member, Institution of Mechanical Regulations & Monitoring (ERM), Imo Engineer, UK; Member, American State; Member, Nigerian Society of Society of Heating, Refrigeration and Engineers Committee on Blueprint for Air Conditioning Engineers; Fellow, Sustainable Energy in Nigeria. He has Nigerian Society of Engineers, FNSE also played prominent roles to other 1996; Registered Engineer with Council Institutions, as a sport's man, he was for the Regulation of Engineering in Chairman, Owerri Sports Club, 1991 Nigeria (COREN). 1993; currently, Patron of the Club; His professional experience cuts President, Nguru League, 1996 - 2006; across many areas. He was an Assistant ENGR. CHRISTIAN IBE, FNSE Chairman, St. Patrick's College, Ikot Te c h n i c a l O f f i c e r , E l e c t r i c a l Ansa, Calabar Alumni Association, Inspectorate Division, Federal Ministry of Mines and Power, Owerri Branch 2001 - 2008. He was also a former Council Member, Lagos and Enugu, 1967 - 1970. In 1972, he was the Assistant Governing Council, Federal Neuro-Psychiatric Hospital, Kaduna, Manager and Shift Engineer, Nigerian Breweries Limited, 2004 - 2005. Iganmu, Lagos. He was a Design Engineer, later, Branch His meritorious service to the engineering profession in particular Manager (East) SCOA EQUIP 1972 - 1975. He became a and indeed the built environment in general, has not gone unnoticed. Lecturer Grade 1 in Institute of Management and Technology Various honours and recognitions he has received include: Federal (IMT) Enugu, 1977 - 1978 in the Department of Mechanical Government Scholarship, 1970 - 1972; Dean's Honour's List, 1972; Engineering; he rose to a Senior Lecturer, Federal polytechnic, East Central State Scholarship, 1975 - 1977; Science Research Nekede, Owerri, Department of Mechanical Engineering, 1978 Council (SRC) Grant in the United Kingdom, 1977. - 1981. He became Principal Lecturer and Head of Engr. Ibe has written various articles for presentation at both local Department, 1981 - 1984, later, Chief Lecturer and Director, and international Conferences and has also published several School of Engineering Technology, 1984 - 1986 and 1986 - textbooks either as an Author or Co-author. Some of these 1994, he was Reader in Mechanical Engineering and voluntary publications are "Prospects for the Conservation of Energy in retired from public service in 1994. Nigeria" and "Energy Resources Utilization in Nigeria"; Alternative Engr. Ibe is the Managing Director/CEO, Modutrol Nigeria Energy Sources and Prospects for Nigeria, the Nigeria National Limited; Managing Partner of Krinoll & Partners Limited, a Paper he presented at the United Nations Energy Conference held in firm of Consultants with emphasis in building services Kampala, Uganda, 1982; "Air Conditioning System Design and engineering and management services since 1995 till date. As Energy Consumption in Buildings"; Energy Efficiency in Nigerian Chief Executive, he is responsible for all aspects of the Building Design and Construction" Blue Ocean Magazine, 2011; consultancy practice, actively involved in technical capacity "Principles of Tropical Air Conditioning"; A 350 page textbook for building, planning, monitoring and evaluation of projects in Design Engineers; Applied Thermodynamics for Engineering dispersed locations in Nigeria. Technologist". Engr. Ibe Christian Ahamefula is a season and battle tested Engr. Ibe Christian, is a sportsman to the core, he enjoys Lawn professional who has made a solid mark in engineering practice Tennis, Soccer and also reading and watching athletics. He is married and project management in the energy sector, transportation, to Olive Chinna Ibe (nee Ukaga), a retired banking Executive and water resource development, and services to the public power blessed with seven children. sector with over 44 years of experience. We at CED Magazine celebrate you as one of the selected Due to his outstanding contributions to the overall Nigeria's Evergreen Built Environment Professionals. development of the built environment, he has involved himself Congratulations!

18 | www.cedmagazineng.com July 2016

GREEN VILLAGE AFRICA

Swisatec adds more centres to first green village in Africa

wisatec, architects and project managers of Blue Rock Village- the first green village in Africa, recently announced a new multi million-rand addition to the village, the Santa Luzia Lifestyle centre and the 5-star Blue Rock Hotel and Conferencing centre. Both new additions add more value to the the first green village in Africa and bring more anticipation, an exclusive lifestyle and embrace the LIVE-WORKPLAY Blue Rock Village ethos. "The Santa Luzia Lifestyle Centre will be a multi - functional centre boasting 14 000sqm floor space, 7 story building, 600 metres long, with 10 000sqm exhibition street designed for hosting conferences, exhibition, interactive events such as local produce markets, product launches, and concerts or music festivals. Situated in the heart of the Helderberg area, Cape Town, "The Santa Luzia Lifestyle centre will be a vibrant hub of Cape life where sophistication and chic collide with history and tradition. Its universal appeal makes it one of Cape Town's foremost attractions for both locals and international visitors. The centre will be home to boutique shops, doctors centre, clinics, professional office space, and gastronomies" said Mr Reichmuth director of Swisatec and owner of Blue Rock Village. The various hubs located in the centre include The Dollar House which is the

financial hub of the Lifestyle centre offering high-end office space to law firms, financial institutions such as banks, consultants, and other financial professions. Staying true to the LIVEWORK-PLAY Blue Rock Village ethos the Lifestyle is expected to have a Wellness, Spar and Sports centre; the "beauty farm" will offer an array of therapeutic centres, gym facilities, sauna's, health bars/ shops, steam room, roman bath, thermal pool, medical spa, dance and yoga studios, spinning, Pilates classes and more. Linked to the Santa Luzia Lifestyle

centre is the multi-million-rand 5-star Blue Rock Hotel and Conferencing centre. The Blue Rock Hotel will provide world class facilities in a calm and relaxed environment. The hotel and conferencing centre is envisioned to have -+150 luxury rooms, 30 condominiums, conference capacity for over 500 delegates, high-end restaurants, a bar and lounge areas, one situated near a pool deck and one on the ground floor overlooking the famous crystal clear Blue Rock Lake, the biggest outdoor pool in South Africa. The conferencing centre is expected to host similar events as Cape Town CTICC, and Sandton Convention Centre. The hotel will cater to both business and leisure travellers, being in close proximity to the Cape Town International Airport, a mere 30 minutes away to Cape Town CBD, the village is directly accessible through the N2. What makes Blue Rock Village more special is the ideal location, the village is surrounded by award winning wine farms, sandy beaches of Gordons Bay, Strand, and False Bay with more than 20 famous golf ranges in close proximity to the village. Construction of the Santa Luzia Lifestyle centre is envisioned to begin in 2017 with phase one; Giovanni Luxury Terraced Apartments to be officially on sale at the end of July 2016.

GHANA POWER CHALLENGE Power blackouts in Ghana to deepen

he Ghana National G a s Company (Ghana Gas) has reduced gas supply to Aboadze power enclave raising fears that Power blackouts in Ghana could further deepen. Gas supply reduction has been linked to the confronting challenges facing the Floating Production Storage and

Offloading (FPSO) vessel. the FPSO Kwame Nkrumah constrained the Jubilee partners to decrease gas supply to Ghana Gas from 87 million standard cubic feet a day (scfd) to 47 million (scf-d). The lead operator in the Jubilee fields, Tullow Oil, says the situation has been mainly accredited to bad weather

Continued on page 32 ? www.cedmagazineng.com July 2016 | 31

ENERGY ENERGY

THE EVERGREEN PROFESSIONALS

BECOMING THE PIONEER World Economic Forum names GlassPoint Solar technology pioneer

lassPoint Solar, the leading supplier of solar to the oil and gas industry, was named as one of the World Economic For um's Technolog y Pioneers, a selection of the world's most innovative companies. GlassPoint was selected by an expert committee for its development of a solar energy solution that delivers low-cost steam used to produce crude oil more sustainably and economically. "It is an honor to be recognized and included alongside some of the most innovative companies in the world. This recognition further substantiates the increasing convergence between traditional and renewable energy. Our solar technology was specifically designed to meet the needs of one of the world's largest consumers of energy-the oil and gas industry itself," said GlassPoint President and Chief Executive Rod MacGregor. "By

integrating alternative energy and traditional energy, the world can benefit from substantial carbon savings while de ploying renewable energ y at

unprecedented scale." The World Economic Forum's Technology Pioneers program was started in 2000 to recognize global companies that can significantly impact business and society through new technologies. GlassPoint was selected from among hundreds of candidates to join a special group of companies with transformative solutions across the IT, health, energy, environment, food and financial services sectors. The company's solar steam generators harness sunlight to produce steam for the process of extracting heavy oil, replacing natural gas typically burned to generate steam. GlassPoint's solar oilfield projects are unlocking a tremendous opportunity to deploy solar energy in the global oil and gas industry. GlassPoint is one of the fastestgrowing solar companies in history. In the past five years, GlassPoint has gone from commissioning the world's first commercial solar enhanced oil recovery (EOR) project to building one of the largest solar projects of any kind. Last year, GlassPoint partnered with Petroleum Development Oman (PDO), the largest producer of oil and gas in Oman, to build Miraah, which will generate in excess of one gigawatt of solar thermal energy. Once complete, Miraah will reduce emissions by 300,000 tons of CO2 each year, the equivalent of removing 63,000 cars from the road. The project will generate 6,000 tons of solar steam each day for oil production, saving 5.6 trillion British Thermal units (BTUs) of natural gas each year. The gas saved can instead be exported as LNG, used for power generation or redirected to the private sector to power new industries and create jobs.

Ron MacGregor, President and CEO of GlassPoint Solar

Keep yourself abreast of development in the built environment

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FOCUS ON VALUE ADDITION Mallam Abdullahi Muhammadu Sani is a professional of International repute with in-depth knowledge of a wide variety of aspect in relation to local and international assets and real property ownership, acquisition, procurement, management, appraisal and disposal.

In 1983, Mallam Sani transferred his allam Abdullahi Muhammadu services to New Nigeria Development Sani is an experienced Company (NNDC) Ltd, a professional Estate development finance institution, Surveyor/Valuer, Property Developer owned by the Ninteen Northern States. and Facility Manager of International In October 1989, Mallam Sani repute with in-depth knowledge of a secured a UNIDO Fellowship wide variety of aspect in relation to programme in Land Management at local and international assets and real the University of Reading, United property ownership, acquisition, Kingdom. He later got admission into procurement, management, appraisal ABU Zaria in 1992 to read for his and disposal. This has of necessity Master's Degree in Business exposed him to a wide range of Administration (MBA) specializing in transnational scenario in the fiancé. Later that year (1992) Mallam specialized areas of land management, Sani voluntarily retired from public leasing, purchasing, proper ty service to join politics. development, acquisition, facility He was elected a member of the management and property valuation. Federal House of Representative Mallam Abdullahi M. Sani was born MALLAM ABDULLAHU MUHHAMAD SANI nd during the third republic. He recently on the 2 day of January 1949 to the family of Later Alhaji Muhammadu Sani of Unguwan Limanci, attended a Real Estate Management course in Finance, Design and Kakihum, Mariga Local Government Area of Kontagora Leadership at Harvard Business School, United State of America. Undoubtedly, Mallam Sani had the benefit of serving in various Emirate. Mallam Sani had his Primary Education at Kakihum Junior Primary School (1957 – 1960) and Kontagora Central positions in the public service and private sector. He is the Primary School (1961 – 1963). Mallam Sani holds a B.Sc (Hon.) founding father, Chairman and Chief Executive of Muhammad Estate Management Degree from Oba Femi Awolowo and Company, a registered Estate Surveying Firm, engaged in University (OAU) Ile-Ife, a Master's Degree in Business Property Acquisition and Development, Estate Valuation, Administration (MBA) at Ahmadu Bello University (ABU) Property Management, Estate Brokerage, Consultancy and Zaria, a Post Graduate Fellowship (Land Management) at Advisory Services. The firm promoted and developed SANAB Reading University UK, Fellow of the Nigerian Institution of Luxury Hotel, an exclusive Eighteen Rooms high end Hotel in Estate Surveyors & Valuers. He is also a member of other Kaduna. The firm was also engaged in a number of Land Acquisition professional bodies among which are Institute of Corporate Executives of Nigeria; International Facilities Management services for commercial, residential and agricultural projects in Association (IFMA) and Kaduna Chamber of Commerce, different parts of the country, especially in the Northern States and Abuja proper ty markets. The fir m has ser ved as Industries, Mines and Agriculture. He was a one-time Head of Real Estate Services Consultants/Advisors to various reputable organizations like the Department of the New Nigeria Development Company Infrastructural Concession and Regulatory Commission (ICRC) (NNDC) Ltd, a Development Finance Institution and a former for an office remodeling project, residential housing joint venture member of National Assembly, House of Representative, in project with Imani & Sons and Shell Trustees in Abuja and the Nigerian National Petroleum Corporation (NNPC), amongst the third Republic. His work experience started when he took appointment as a others. Mallam Sani, an Inductee of The Nigeria’s Construction Land Local Assistant, with Kontagora Local Authority, (1964 – 1965) before proceeding to Bida Teachers College of Industry Hall of Fame served and also currently serving as Board Education for a Grade 11 Teachers Certificate (1966 – 1970). Member/Chairman to profit and non-profit organization like the He became a Primary School Teacher before proceeding to AMSAA Computer Ltd, SANAB (Nig) Ltd, Member Governing Sokoto College of Education (1971 – 1973) for a National Council of the IBB University Lapai, Niger State and the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, where Certificate in Education (NCE). Thereafter he joined the services of the defunct North he served as the First Deputy President of the Chamber amongst Western State government as a College Teacher in others. He is married with children. At his spare time, he engages in Mathematics and Geography before proceeding to the intellectual and political discussions, travelling, networking, Obafemi Awolowo University Ile-Ife (1975 – 1979). He started written and general body exercises. We at Construction and Engineering Digest (CED) Magazine his National Service (NYSC) with Ibadan Polytechnic before congratulate you as one of Nigeria's Built Environment Evergreen his transfer to Niger State Housing Corporation Minna, Niger Professionals. Congratulations! State, under a new NYSC policy for all in-service graduates. www.cedmagazineng.com July 2016 | 19

CED PROPERTY INTERVIEW ENERGY

DEVELOPMENT OIL AND GAS REPORT

4 MEGATRENDS TRANSFORMING THE CONSTRUCTION INDUSTRY developm ent more attractive, affordable , efficient a n d accessible.

fter being rocked by the recession, while harnessing social media and smartphones, everyday Americans are giving up the static suburbs to refocus on progressive yet practical city living. At the same time, cities continue to be the traditional nucleus of emerging economies such as Africa and India. Following both green policies and greener profits, commercial and residential builders in turn must pivot sharply to keep up with internationally increasing pace, priorities and pressure. According to a recent World Economic Forum report, "Shaping the Future of Construction: A Breakthrough in Mindset and Technology," urban centers are growing by 200,000 residents per day. The sustainable development of cities, as they are the anchors of education, innovation, financing and governance, will trickle out into the suburbs and help create a sustainable society. However, according to the report, the Engineering & Construction sector has been relatively slow to adapt to the age of sustainable development. A reluctance to embrace emerging technologies such as drones, VR and 3D printing, along with a painful talent shortage, are contributing to their sluggishness in the face of demands coming from both above and below. The future remains bright, though, as better building materials, intelligent building information management (energy analytics and Big Data) and autonomous equipment (basically, robots) will make sustainable urban 20 | www.cedmagazineng.com July2016

Below are four key trends that a r e affecting the global constructi o n industry of tomorrow: 1. The market While it depends on who you ask in the U.S, it's clear that sustainability is indeed in big demand across the rest of the world. As the bulk of global population growth is increasing in developing countries - which also suffer from poverty and corruption - the demand for sustainable development solutions is out of necessity. According to the report, 65 percent of the construction industry's growth over the next 10 years will be taking place in emerging economies. On the subject of cities, and the high-flying world of international finance, we will need all of $1 trillion in investments annually in order to build and maintain a sustainable global infrastructure. 2. Resilience Natural disasters are up, according to the report - three times as many occurred globally in 2015 than in 1980. Unfortunately, another extreme weather event on the scale of Superstorm Sandy potentially could put New York City underwater. As these effects of climate change become the new normal, the construction industry needs to meet this challenge, given that 30 percent of global greenhouse gas emissions are attributable to buildings according to the report. At the same time, half of all solid waste in the United States is produced by the

construction industry, with little attention paid to the consequences so far. Construction needs to reduce its footprint now. 3. The workforce Social inclusion is one of the four key tenets of sustainable development, which manifests itself in employment, or a lack thereof. Finding talented workers to join the urban construction boom is a major pain point. According to the report, 50 percent of general contractors are concerned about finding experienced crafts workers for their workforce. Furthermore, healthy affordable housing is scarce, as volatile organic compounds are two to five times more likely to be found inside American homes than outside. The talent shortage, combined with a confused infrastructure, means that both the construction industry and its talent are struggling to conveniently access one another. 4. Politics According to the report, $1.2 trillion in infrastructure could be added by 2030 if all countries committed to specific time limits for approvals, and if the construction industry speeds up its slow permit and approval process. The requirements are cur rently too complicated. For example, in India, the report says that 25 procedures are required for a typical warehouse construction permit. Militants kidnapped 18 Turkish construction workers in Baghdad in September. Good governance, another key tenet of sustainable development, is needed now in order to curb the corruption and geopolitical uncertainty that is holding back the construction industry. Construction is clearly at a crossroads. More inclusion, better governance and smarter energy usage are all pillars of sustainable development in general, regardless of industry. Therefore, it should not be a surprise that these issues are also some of the same trends we're seeing unfold in the construction sector, along with other fields such as food. The convergence of emerging technologies and urgent political policies soon likely will provide the spark that this space needs. By Ben Doda

For example, the Technical University of Munich found that trees and green walls can offset higher temperatures resulting from climate change.

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5. Adaptation will transfor m development models We adapt to climate change not for the sake of it, but for some greater goal food security, continued prosperity, livelihood security and so on. It is therefore a means to an end for more holistic, climate-compatible development. The message that we can achieve more if we are cognizant of adaptation in the context of larger development outcomes resounded with practitioners and financers at Adaptation Futures. For example, to mainstream adaptation into national development planning processes, the government of Zambia started tracking finance in the national budget and trained Provincial Planning Units and District Planning Officers to mainstream climate resilience into development planning. This process resulted in 14 district-level roadmaps. Moving forward faster The trends highlighted above are reasons for optimism that climate action is gaining both speed and scale. At the same time, there are many opportunities to move the ball further on adaptation. While adaptation finance has increased in recent years, it's not reaching local levels fast enough, particularly in developing countries at the frontline of climate impacts. Within this context, most sessions highlighted the need to engage the private sector. However, the question of how to most effectively and efficiently do so is still live. Finally, many sessions underlined the importance of breaking down siloes and identifying co-benefits with mitigation for adaptation to reach its fullest potential and contribute to sustainable development goals. Now it's up to the many conference participants to take these ideas and priorities forward to ensure that 2016 truly becomes a year of action on adaptation. By Katerina Elias-... and Ayesha Dinshaw www.cedmagazineng.com July 2016 | 29

OIL AND GAS REPORT REPORT ENVIRONMENT

DEVELOPING STORY Arc. Musa Sada, Minister of Mines & Steel

5 EMERGING TRENDS IN CLIMATE RESILIENCE Capacity to bounce back from environmental, social and political shocks is now a development imperative.

he Paris Agreement adopted at COP21 last year placed unprecedented importance on climate adaptation and resilience. Last week, we started to learn how countries, cities, researchers and others are putting adaptation priorities into practice. The Adaptation Futures conference in Rotterdam, Netherlands, brought together more than 1,700 practitioners and researchers from more than 95 countries - the largest conference on climate adaptation. From the discussions, it's clear that knowledge and expertise on climate adaptation is evolving. We noted five emerging trends: 1. Success means affecting individual lives In her opening keynote, UNFCCC Executive Secretary Christiana Figueres encouraged delegates to think of adaptation as a means for making people's lives better: "Do not hide behind the aggregate, and risk faltering on our responsibility at the individual level. The question that we need to wake up to every morning is: Have we made 28 | www.cedmagazineng.com July 2016

the life of these people any easier and more livable?" Adaptation efforts are only as effective as the impact they have on each person. Interventions around the world are beginning to reflect this, where previously they focused on aggregate impacts of climate change and did not consider the local, individualized analysis. For example, Rio de Janeiro is testing indicators that measure and build resilience at the individual level. The ultimate aim is to identify policies and actions that can help individual persons enhance their capacities to manage climate change and become more resilient. To gain these insights, Rio de Janeiro's resilience team will be measuring individuals' perception of risk, their level of preparedness and their knowledge on risk-reducing habits. 2. Cities are at the forefront Cities are reaching the forefront of both climate impacts and climate action. As populations grow and climate-related natural disasters strain cities, adaptation and resilience need to be integrated into urban development. The question that we need to wake up to every morning is: Have we made the life of these people any easier and more

livable? Some cities are already prioritizing adaptation. New York, London, Durban and scores of other cities have established special task forces and partnerships to tackle climate change at the highest levels of local government. Meanwhile, local councils in Australia have begun integrating climate hazards into local and state legislating to drive bottom-up adaptation. For example, in Pittwater, Australia, permission for development is "only granted once the local council is satisfied that sea level rise, coastal erosion and recession, or change of flooding patterns as a result of climate change have been considered." 3. We need to think big Adaptation is transitioning from small, one-off pilot projects into large scale, sustained programs. It's evolving from an incremental practice to a more systemic one. For example, Rotterdam applied a simple concept of "piggy-backing" to mainstream adaptation and resilience across the city's infrastructure. The city started assessing urban development projects with a climate lens, assigning adaptation mainstreaming managers to them. Adaptation is built-in to urban planning decisions - for example, the city created procedures for when high temperatures affect bridge performance and developed standards for permeable pavement that can accommodate heavy rain and flooding. 4. Nature-based solutions are gaining ground Exper ts promoted nature-based solutions for adaptation to improve the resilience of cities, increase water access, protect natural ecosystems and reduce disaster risks. We adapt to climate change not for the sake of it, but for some greater goal. Natural or "green" infrastructure - such as forests and restored landscapes for water services, and trees, grasses and green roofs for heat stress and flooding can provide cost effective, sustainable solutions that complement traditional built or "grey" infrastructure.

Head of Civil Service of the Federation (HoCSF), Winifred Oyo-Ita Ekanem (left); Minister of Power, Works and Housing, Babatunde Fashola (SAN) (right)and Chairman, Urban Shelter, Aliyu Ibrahim, during the opening session of the affordable housing summit 2016 with the theme Developing a Blueprint for Affordable Housing Delivery in Nigeria organised by the ministry and the German Development Co-operation in Abuja

FINDING A WAY OUT FG Partners Private Developers to Reduce Housing Deficit in Nigeriawhile looking to strengthen the mortgage policy

owards developing a holistic and encompassing blueprint in the delivery of affordable housing to the teeming Nigerian population, the Federal Ministry of Power, Works and Housing has engaged in dialogue with relevant and critical stakeholders in the housing industry in a 2-day Summit aimed at profiling a lasting solution to the housing deficit in the country. The summit is anchored on five key pillars to include: lands; concessions/incentives; housing finance; off-takers strategy and general skills development and technolog y for affordable housing. While delivering his keynote address, the Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN, said the Ministry has reviewed some

methods for the implementation of the National Housing Policy, such as initiatives by the Federal Housing Authority and PPP initiatives, through Development Lease Agreements (DLAs). He however opined that some of the initiatives will be retained with modifications to evolve something new and different in reducing the housing deficit. The Minister reiterated the need to standardized fittings such as doors, windows, tiles, roof boards and other accessories to be locally produced by manufacturers as a way of supporting the local industries, SMEs, and diversify the economy to create jobs opportunities for Nigerians. Fashola appreciated the collaboration of development partners, volunteer

support of the Nigerian consortium of architects and planners and most importantly the professionals in the housing sector of the Ministry of Power, Works and Housing for their resilience in developing a design, planning and costing of housing delivery that will reflect the Nigerian culture. Earlier in his opening remarks, the Minister of State for Power, Works and Housing, Hon. Mustapha Baba Shehuri, represented by the Permanent Secretary (Works and Housing), Engr. Abubakar Magaji, noted that the summit's discussion would be focused on examining the key constrains and challenges militating against the provision of affordable housing in Nigeria, with attempts to proffer a sustainable solution and developing strategic blueprint for affordable housing delivery in Nigeria. According to Shehuri, the summit will also provide a veritable platform and enormous opportunity for private developers and other industry service providers to showcase their capabilities as

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CED PROPERTY DEVELOPING STORY OIL AND GAS REPORT

Nigerians. The minister s a i d t h e enthronement of best practice would help to reduce corruption, restore i nve s t o r s ' confidence in the housing sector and c r e a t e a n atmosphere of transparency and dependability. He said: "I think that mortgage is Fashola and a participant at the Affordable Housing Fair the best practice and the way to go to reduce corruption well as proposed housing stock, building and to encourage productivity. "I suggest materials and innovative technologies for that our houses must be tied to our stakeholders in the industry. income, which must be tied to our jobs and The Summit was also graced with the I think it is the way to create credit that our presentation of the Head of the Civil housing sector desperately needs. "I do Service of the Federal, Mrs Winifred Oyo- not think that we can seriously talk about Ita, who presented a paper on the Strategic transparency, if a large number of our focus on the off-taker: A Paradigm Shift in people pay a two- year advance housing Affordable Housing Delivery in Nigeria rent when they receive their arrears and; the Minister of Finance, Mrs Kemi monthly. Adeosun who also delivered a paper on the Where will the money come from? "I topic: Linking the Capital Market to am sure there must be other ways in which Access to Finance for Affordable Housing we must create credit because economies Delivery. where people get paid at the end of the There were goodwill messages from Mr. week and able to pay their rent at the end Torsten Schlink, Head of SEDIN of the week; or are paid at the end of the Programme-Ger man Development month and are able to pay their rent at the Cooperation (giz), and CEOs of sponsors end of the month, allow for a much more in the built industry including a cream of beneficial quality of life." panel of discussants. It is expected that at He also expressed confidence that the the end of these brain storming workshop, ministry's collaboration with the German a communiquĂŠ on the blueprint for Development Cooperation, GIZ, and affordable housing delivery in Nigeria will other development partners would, emerge among other key objectives, proffer a clear, sustainable, realistic and strategic Strengthening mortgage policy for blueprint for affordable housing delivery affordable housing in Nigeria. He noted that some anomalies Federal Government has promised to had affected the housing sector over the strengthen the mortgage policy for years, explaining that "if the income Nigerians to access affordable housing, marches your obligation, you pay in reduce corruption and encourage arrears. "No matter how hard we try to productivity in the sector. Minister of build to meet the budget of the Power, Works and Housing, Babatunde demanding public, we must also respond Fashola, who disclosed this at the ongoing to the question of credit for rent. So I say Affordable Housing Summit 2016 in that this mismatch in advance rent and Abuja, stressed the need for stronger arrears of income is one of the reasons mortgage policy, in line with the change many completed houses are empty," promised by President Muhammadu Fashola added. Buhari's administration to pursue i n f r a s t r u c t u r e d e ve l o p m e n t a n d N37bn annually not enough to solve specifically address the housing needs of housing problem 22 | www.cedmagazineng.com July 2016

CED PROPERTY DEVELOPING STORY

The annual budget of N37 billion as passed in the 2016 appropriation cannot enable the country to meet its housing deficit in the nearest future, Mr. Babatunde Fashola, the Minister for Power, Works and Housing, has said. Fashola made the submission while appearing before the House of Representatives Committee on Housing to update lawmakers on the implementation details of the ministry's housing policy. He told the lawmakers the Ministry was made up of professionals of diverse background armed with necessary expertise to come up with a sustainable housing plan that would put the country in a better stead in no distant time. He said, "N37.6 billion won't solve our housing problem; 15 per cent down payment is not enough to stockpile materials for work by the contractors". He urged an increase in the percentage of money for down payment to enable contractors make adequate preparations for project take-off. Fashola also raised the issue of cultural impediments hindering the uniformity design being conceptualised by the Ministry, saying that joining the with the issue of climatic differences in the various geopolitical zones, some cultural beliefs are obstacles to the policy. "We are getting feedback from states where some people don't want toilet within the House. In some places, in-laws don't use the same toilets as their daughter in-laws, apart from having to vary the designs based on climatic conditions prevalent in different places. "Now how do we achieve uniformity of design in situations like these? It's either we change that culture or we build according to the cultures. We have done comparative analysis from other countries, both in Africa and outside the continent," he said. Sani Gidado, Director of Architectural Services in the Ministry, had earlier explained to the lawmakers of the efforts being made by the Ministry to deliver on its mandate based on the budgetary provision available to it in the 2016 fiscal year. Gidado explained that in line with what 37.6 billion approved for the national housing prog ramme can do, his department has set out to formulate designs based on feasibility studies of the Continued on page 27

N37.6 billion won't solve our housing problem; 15 per cent down payment is not enough to stockpile materials for work by the contractors".

different zones of the country bearing in mind the need for durability in design structures. â&#x20AC;&#x153;The programme is set for implementation under the strategies d e ve l o p e d d e s i g n s. S i n c e t h e commencement of the budget, the minister has written 36 letters to the state governors asking for allocation of land for the take-off and so far, 19 states have expressed willingness to key in and 17 are those that have responded with real commitment. "House styles suitable for each geopolitical zones have been designed by inhouse architects of the Ministry. The designs are currently going through analysis and critique of professionals and experts before we roll them out. And the design vary from zone to zone based on the climatic conditions prevalent in each zone vis-a-vis their way of life," he said. Lawmakers at the meeting while querying the Ministry for delaying in coming up with a comprehensive plan and designs that would enable the projects to take off as soon as the budget was passed also alleged incompetence on the part of Ministry officials in doing their jobs. Looking at the documents circulated to members by the Director, Mustapha Dawaki (APC, K ano) committee chairman, in his observation, expressed surprise that the Director has not been

able to come up with designs that can be approved for the projects to commence. He said, "I'm surprised that since January, you have not been able to provide the designs, and now we are in June. Is it that you are not competent or you don't have professionals? "By the time you will bring these designs, probably it would be in September or October, and the year is running out. Why couldn't you get them done before hand so that as soon as the budget is released, you move to site without any delay? I'm just not impressed by this," he fumed. Hon. Janothan Gaza (PDP, Nasarawa) also queried the designs of 1 bedroom apartment buildings bearing in mind the rising population of the country. He said the idea of providing a 1 bedroom house for low income earners lacks wisdom knowing that a single man is bound to get married and produce children, asking further that "where will the man whose income has probably not increased move his expanding family to?" However, this criticism did not go down well with the minister who commended the industry of his officials, insisting that they have done best they can under the circumstance and if presented with adequate fund and flexibility of cultural beliefs, they would do better. "Concerning the issue of competence, I

think we should commend the men and women in the design department for their industry rather than condemnation. And when you look at the budget in the Housing Ministry, it's just N37.6 billion, which is nothing compared to what is actually needed," Fashola stressed, warning that "we must also look at our housing laws so that we don't get knocked down and out of development by our own laws". He also responded to the criticism that the policy of concentrating more units in some states or zones than others would be against the federal character principles as enshrined in the constitution. "I'm not saying things should not go round. But if you watch the migration pattern and incidents around the country, some states have more population and the need for housing than others. And you simply can't say that the state which loses population to migration into other states should get the same number of houses that the ones with higher population should have," he explained. He raised instances of Singapore and the UK whose housing schemes are older in the comity of nations saying that they have only achieved between 50 to 60 per cent accomplishment with mere uniformity of designs as others are accommodated in the rental scheme.

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OIL AND GAS REPORT

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JOINING FORCES

Exxon's ties with Qatar, the world's largest exporter of LNG, include the RasGas partnership,

Exxon said to join forces with Qatar for Mozambique gas assets

xxon Mobil Corp. and Qatar Petroleum have teamed up to look at energy assets in Mozambique, home to some of the biggest natural gas discoveries in a generation, according to four people with knowledge of their plans. The companies are considering buying stakes in gas fields owned by Anadarko Petroleum Corp. and Eni SpA, the people said, asking not to be identified because the matter is confidential. They have a strong relationship and often discuss potential investments, though no final agreement has been reached, the people said. Mozambique's discoveries in the Rovuma basin off its northern coast have attracted oil companies from Europe, the U.S. and China as the southern African country plans one of the world's largest LNG projects. Investment from Exxon and stateowned Qatar Petroleum, which have partnered in joint ventures for at least 15 years, would bring much needed funds for development, not to mention a tax windfall to a nation grappling with a deepening debt crisis. Exxon, Eni and Anadarko declined 26 | www.cedmagazineng.com July 2016

to comment. Qatar Petroleum didn't respond to a call or email. Exxon presence Anadarko operates in Area 1 of the Rovuma basin, while Eni is in Area 4. Both have plans to export the gas as LNG, though neither has reached a final investment decision. Exxon has already established a

presence in Mozambique after winning three offshore exploration licenses in October for blocks to the south of the Anadarko and Eni finds. The U.S. company also has a working interest in Statoil ASA's Block 2 in Tanzania, north of the Rovuma basin. Exxon's ties with Qatar, the world's largest exporter of LNG, include the RasGas partnership, which produces and liquefies gas from Qatar's North field, and the Golden Pass LNG terminal in Texas. Acquiring a share of Anadarko's Area 1 could generate capital gains tax of about $1.3 billion for the Mozambique government, one person said last month, adding that Exxon is also interested in Eni's Area 4. Rome-based Eni said in May that it's in talks to sell a stake in its discovery and expects to decide on its LNG project this year. Should Exxon and Qatar decide to invest, they would potentially accelerate the realization of Mozambique's LNG export ambitions amid a looming credit crunch. The country is struggling to balance its books after $1.4 billion of hidden debt was disclosed in April, prompting the World Bank and other donors to suspend aid.

laims that the oil age is over are greatly exaggerated, according to a new report from the U.S. Energy Infor mation Adminstration (EIA). Three fossil fuels-petroleum, natural gas, and coal-have provided more than 80 per cent of total U.S. energy consumption for more than 100 years. That trend continued in 2015, as fossil fuels made up 81.5 per cent of total U.S. energy consumption. In EIA's Annual Energy Outlook 2016 reference case projections, which reflect current laws and policies, that percentage declines five per cent to 76.6 per cent by 2040. Policy changes or technology breakthroughs that go beyond the trend improvements

included in the reference case could significantly change that projection. In 2015, the renewable share of energy consumption in the United States was its largest since the 1930s at nearly 10 per cent. The greatest growth in renewables over the past decade has been in solar and wind electricity generation. Liquid biofuels have also increased in recent years, contributing to the growing renewable share of total energy consumption. The most significant decline in recent years has been coal: U.S. coal consumption fell 13 per cent in 2015, the highest annual percentage decrease of any fossil fuel in the past 50 years. The only similar declines were in 2009 and 2012, when coal fell 12 per cent

below the level in the previous year. In EIA's reference case projection, petroleum consumption remains similar to current levels through 2040, as fuel economy improvements and other changes in the transportation sector offset growth in population and travel. Coal consumption continues to decline, especially in the electric power sector. Natural gas consumption increases in the industrial sector and the electric power sector. Some electric fuels, such as nuclear and hydroelectric, remain relatively flat in the reference case, with little change in capacity or generation through 2040. Biomass, which includes wood as well as liquid biofuels like ethanol and biodiesel, remain relatively flat, as wood use declines and biofuel use increases slightly. In contrast, wind and solar are among the fastest-growing energy sources in the projection, ultimately surpassing biomass and nuclear, and nearly exceeding coal consumption in the reference case projection by 2040.

Rex Tillerson, chairman and CEO of Exxon Mobil Corporation, ...

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OIL AND GAS REPORT

GAS TO POWER NNPC highlights strategic thrusts for gas to power

NEXT DECADE’S OIL Chevron deadline nears for $40-billion bet on next decade's oil

RUSSIAN UPSCALE Russian oil exports set for record as Europe competition grows

ussian crude exports are on track to set a record this year, which is intensifying competition in Europe as Iran boosts shipments to the region. Exports rose 4.9% to 5.55 MMbpd in the first half of the year from the same period in 2015. Russia's output in June climbed 1.14% from a year earlier to 10.843 MMbpd, with increases every month since July 2014, according to data from the Energy Ministry. "If production remains steady, then it will likely be a record year for exports," said Christopher Haines, head of oil and gas at BMI Research. "This should mean competition is strong, especially with Iran sending more oil into southern Europe." Russia, the world's biggest energy exporter, signaled in April it would boost oil production and shipments after the Organization of Petroleum Exporting Countries failed to adopt a plan to ease a supply glut, in part because Iran didn't want to participate. The Persian Gulf nation has moved quickly to increase output and regain customers in Europe after sanctions on its exports were lifted in January. Russian Urals crude, which is similar to Iran's flagship blend, was the main beneficiary when Iran was barred from selling oil in Europe in 2012 because of its nuclear program. Since sanctions were lifted, Iranian exports have doubled to about 2.1 MMbpd, with shipments to Europe of 445,000 bpd 24

www.cedmagazineng.com July 2016

in May, compared with about 600,000 prior to the imposition of sanctions in mid-2012. "As far as market share wars, everyone's aware of the efforts Middle Eastern producers are putting into expanding their presence in the markets where they haven't typically operated, such as Eastern and Central European refineries," said Artem Konchin, an oil analyst at Otkritie Financial Corp. "The same can be said about Russia's drive to gain a bigger footprint in Asia." Russia is now on track to surpass Energy Minister Alexander Novak's recent estimate of 252 million tons (5.05 MMbpd) of exports and forecasts of as much as 255 million tons Novak's first deputy Aleksey Teksler made in April. Shipments reached a record of 253.9 million tons in 2007, according to Energy Ministry data. Tax incentives have encouraged producers to increase crude output and upgrade refineries. Fuel oil production has been declining since the beginning of the year on the back of higher export duties, falling to 4.29 million tons in May compared with almost 6.1 million tons in January, according to the energy ministry's website. Lower profitability in domestic refining has freed up more crude for export, Ildar Davletshin, an oil analyst at Renaissance Capital, said by email.

he Group Executive Director and Chief Operating Officer, Gas and Power Directorate, NNPC, Mr. Saidu Mohammed, during the recent Nigerian Gas Association Business Forum 2016 in Lagos listed the strategic thrusts for gas being pursued for gas to power, gas-based industrialisation and selective gas export, The Punch reports. Mohammed, who was represented by the Managing Director, Gas and Power Investments, NNPC, Mr. Sam Ndukwe, said major reforms were being pursued to position the sector to meet the strategic thrusts. Highlighting progress on major gas pipeline expansion projects, he said the doubling of the Escravos-Lagos Pipeline System capacity to two billion standard cubic feet per day was expected to be completed by the second half of 2016. He said the strategic East-West (OB3) pipeline, which is under construction, would be completed by the third quarter of 2017. Mohammed added, "Trans Nigeria Gas Pipeline (Ajaokuta-KadunaKano and Calabar-Ajaokuta pipelines) is in advanced planning stage. Front end engineering design has been completed and engineering, procurement and construction will commence before the end of 2016.”

GOING BACK

Nigeria lags behind Africa's top oil exporter as Asians increase demand for Angolan crude

recoil in buying of Nigerian oil as a result of force majeure and uncertainty in the country have led to a firm rise in demand Continued on page 26 ?

hevron Corp. may shortly give a green light to the most expensive oil project in the world this year as the industry digs out from the worst slump in a generation. The company said this week in a presentation on its website that the decision on expanding the Tengiz development in Kazakhstan will be made in mid-2016. Installing 4,500 camp beds for construction crews is done and port dredging 25% complete, it said. The project may cost as much as $40 billion and add crude supply equivalent to that of Libya. The investment was put on hold last year after cost estimates ballooned amid plunging oil prices. In a May interview, Kazakh Energy Minister Kanat Bozumbayev predicted a late-June approval and estimated the cost at $36 billion to $37 billion. Wood Mackenzie Ltd. said it could reach $40 billion. Chevron spokesman Kurt Glaubitz declined to comment on the pace of the Chevron board's deliberations or the projected price tag. “This is very big and very important for Chevron and for Kazakhstan,'' said Matthew Sagers, the Washington-based managing director of Russian and Caspian energy research at consulting firm IHS Inc. "It shows that the situation is now turning in the oil market that people are putting down this kind of money.'' The Tengiz expansion would come after oil explorers around the globe slashed more than $1 trillion in investments to weather a downturn that saw U.S. crude tumble 75% from June 2014 to last February. Hundreds of thousands of

drillers, engineers and geologists were fired and the contagion spread to steel mills, trucking and lodging companies. The project represents a bullish bet that oil demand will continue to grow through the next decade and beyond, according to IHS. For Chevron, the squeeze meant writing off hundreds of millions of barrels of deepwater discoveries in the U.S. Gulf of Mexico and elsewhere. The San Ramon, Californiabased explorer slashed annual spending plans for 2017 and 2018 to between $17 billion and $22 billion each year, a reduction of about 26% from this year. Chevron's 50% ownership interest in Tengiz means it has more at stake than its p a r t n e r s : E x x o n M o b i l C o r p. , Kazmunaigaz National Co. and Lukoil PJSC. The field already accounts for almost one-fifth of Chevron's worldwide oil production. Tengiz Production Tengiz produced about 595,000 bopd last year, according to Tengizchevroil, the partnership that operates the field. The expansion will involve pumping sulfurladen gas back into the rocks to force out an additional 250,000 to 300,000 bopd. "Tengiz has been very lucrative for Chevron for many years,'' said Brian Youngberg, an analyst at Edward Jones & Co. in St. Louis, who has a "buy'' rating on the shares. "It's one of the few projects in that part of the world that worked as

GOING BACK for Angolan oil from major crude buyers China and India for July, a Reuters survey of shipping fixtures and traders showed. India's IOC has booked several grades of Angolan crude for July, including Cabinda and Girassol, as its favoured Nigerian Qua Iboe crude oil was under force majeure when the purchases were made. "People want stable supply. And Angolan crude is in general very reliable …

planned.'' It's also the only major new project Chevron spared from the austerity budget imposed this year to cope with the slump in crude prices and cash flow. The partnership probably will issue bonds or otherwise tap lenders to finance the expansion, Chairman and CEO John Watson told analysts and investors at the company's annual strategy presentation in March. Technically Challenging Discovered in 1979, Tengiz was too technically challenging for Soviet engineers to develop. A blowout in a well called T-37 in June 1985 blazed for more than 400 days before it was extinguished by U.S. well-control experts, according to a history of the field published by Tengizchevroil. Chevron won the rights to develop the field in 1993 after the collapse of the Soviet Union. Tengiz produces a very light form of crude oil, highly prized by refiners because of its high gasoline yield, Sagers of IHS said. The Tengiz expansion probably will begin pumping barrels in 2021 or 2022, said Samuel Lussac, research manager for Caspian upstream oil and gas at Wood Mackenzie in Edinburgh. The combination of new Tengiz supplies and output from the Kashagan project set to come online later this year could boost Kazakhstan's output to more than 2 MMbpd, vaulting it past countries including Norway and Qatar. "This will be like another small producing nation coming online,'' Sagers said. Chevron classifies the Tengiz expansion as one of just 13 major capital projects in the company's portfolio spread across five continents, according to a June 28 presentation published on its website. "Kazakhstan is right at the top for them in the world,'' Youngberg said. there are no fears about force majeure," said Ehsan Ul-Haq, a principal consultant with KBC. China's buying has also skewed toward Angolan grades, though state-backed refining company Unipec and teapot refiners typically process heavier crudes than India. Indonesian buying also returned in force, with Pertamina taking four cargoes, including those booked by Total, Shell and Socar. www.cedmagazineng.com July 2016 | 25