Construction Business News ME - April 2015 issue

APRIL 2015

THE DEFINITIVE GUIDE TO THE REGION'S CONSTRUCTION PROFESSIONALS

Hill International’s regional president for the Middle East, Mohammed Al Rais, talks about project management in the region and its way forward

Strategising Growth

Transport infrastructure development is worth billions in every country of the GCC Understanding building information modelling, experts say, is key to expanding its use in the region Upgrading district cooling systems with the use of tri-generation which could help curb energy use by 75%

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Drake & Scull is an industry leader, with a proven history of delivering more than 700 projects through its General Contracting, Engineering, Rail, Oil & Gas, Water and Wastewater Treatment and Infrastructure development business streamlines across the region.

www.drakescull.com

contents 8 news 18 analysis

The effect of Shams Dubai on solar power providers in the emirate and possible opportunities for contractors and consultants

24

30 in the field

SDIC showcases innovative designs, landscapes and architecture at the upcoming Hidd Al Saadiyat project

34 comment

Andrew Sibley writes about indoor air quality and its importance in building design and functionality

36 sustainability

CEO of DC PRO Engineering speaks about upgrading the district cooling systems with trigeneration and the use of renewables

“At the end of the day, the client and the project is the target, and achieving quality on the project is the most important thing for us” Mohammed al Rais

ABOVE: HOW THE DUBAI SEVEN-STAR HOTEL WORKS

9

cover story

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Strategising Growth Hill International’s regional president for the Middle East talks about the project management sector in the region and its way forward

24 SPECIAL FEATURE Construction Business News ME looks into the regional trends for developing transport networks, including ports and airports construction business news me APRIL 2015 3

CONTENTS

48 Managing Director Walid Zok walid@bncpublishing.net Director Rabih Najm rabih@bncpublishing.net Director Wissam Younane wissam@bncpublishing.net Group Publishing Director Diarmuid O'Malley dom@bncpublishing.net Features Editor Lorraine Bangera lorraine@bncpublishing.net

40 q&a

Business Development Director Rabih Naderi rabih.naderi@bncpublishing.net

Faizal E. Kottikollon, Chairman of KEF Holding on why offsite construction is the future

44 project review

Sales Manager Elly Shirkhan elly@bncpublishing.net

This month we look at Alila Jabal Akhdar, recently awarded as the first LEED certified project in Oman

48 architecture

Construction Business News ME analyses the use of BIM in the region and why is it taking so long to be embraced by the industry

52 construction machinery

India’s latest “world truck” enters the Middle Eastern market

54 comment

Craig Gibson writes about how the regional construction industry often relies on the idea that gooD faith will protect it from a contractual deviance

56 event preview

This month we feature the longest running exhibition in the uae –Middle East Electricity

60 save the date 62 editor's pick

Marketing Executive Mark Anthony Monzon

18

c o n t ribu t o rs Stuart Matthews

Marlow McGuinness Ltd

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Opinions expressed are solely those of the contributors.

Construction Business News ME and all subsidiary publications in the MENA region are officially licensed exclusively to BNC Publishing in the MENA region by Construction Business News ME. No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher.

Printed by International Printing Press www.ippuae.com

4 construction business news me APRIL 2015

b

Porto Arabia Towers Doha, Qatar

Mall of Qatar Doha, Qatar

Viva Bahriya Towers Doha, Qatar

Qatar National Museum Doha, Qatar

If you can imagine it, we can manage it.

Hill International The Global Leader in Managing Construction Risk

www.hillintl.com 1.800.283.4088 www.hillintl.com Dubai Office: 971 4 227 0078 Doha Office: 974 4 435 8381 Corporate HQ: 800 283 4088

Š2014 Hill International, Inc.

For nearly four decades, owners and developers in the Middle East have turned to Hill International to manage their construction projects and programs throughout the region. Hill is proud to have helped our clients turn their most challenging visions into realities. We have participated in over 10,000 projects with a total construction value in excess of $500 billion, managing all phases of the construction process from concept through completion.

Hill is also the leading construction claims firm in the world, having helped resolve problems on some of the most complex projects throughout the Middle East and around the world. To minimize risk and maximize results on your next project, turn to Hill International

editor's note Enabling efficiency in the Middle East This month Construction Business News ME concentrates on ways to derive the most efficient solutions. Efficiency is a word used to describe a performance done in the best possible manner with the least waste of time and effort. In construction, as the industry progresses day by day, there are over a hundred ways to be more efficient.

Our cover story follows Hill International’s new regional president for the Middle East, Mohammed Al Rais. The regional manager talks about the project management sector and how it could move forward in the region. He talks about how knowledge transfer is key, training is unavoidable and how “giving back” leads to success.

We also speak with industry experts to crack the code about why the adoption of building information modelling (BIM) in the region is dawdling compared to the UK and the US. Experts emphasise that understanding BIM is the first step, which is why this month we’ve looked into what BIM really is and how applying it could change the way buildings function forever.

We also analyse the new solar initiative in the UAE, Shams Dubai, and how it will change the way firms work, now that renewables are officially on the table. We look

6 construction business news me APRIL 2015

at upcoming opportunities for contractors and consultants as the emirate will provide a new electricity feed-in tariff structure.

Our special feature covers transport infrastructure, which is key to building an efficient urban space. A report released by Timetric suggests that an estimated US$300 billion will be spent in transport in the GCC over the next five years. The investment will surely derive opportunities for construction contractors and those in the project management and consultancy areas.

Keeping efficiency in mind, we also have a look at new trends to watch out for such as offsite construction. Working through offsite construction, not only requires less manpower but also takes almost half the time to complete any building project.

We also observe the adoption of LEED certification by US Green Building Council in GCC countries. Our site visits cover projects including Oman’s first LEED certified building, Alila Jabal Akhdar Resort and SDIC’s Hidd Al Saadiyaat.

Finally, we discern the use of tri-generation with renewable sources for cooling is much more efficient compared to district cooling which according to the CEO of DC Pro Engineering is “outdated.”

IN PROCESS

NEWS

Nakheel delivers new villas at JVC

Nakheel Jumeirah Village Circle Villas

Last month, Nakheel delivered 90 new villas at the Jumeirah Village Circle (JVC) in Dubai. The sell-out JVC villas project launched in December 2013 sold for a combined value of AED275 million. It consists of homes built in

a circular pattern at the heart of Nakheel’s JVC master community. The villas are 3,655 square feet each consisting of four bedrooms with an extensive indoor and outdoor living space, including an expansive roof terrace. Other

Nakheel-constructed developments at JVC include 615 villas and townhouses, which were delivered in 2013, and the upcoming one million square feet Circle Mall, a new retail, dining and entertainment hub due for completion in 2017.

Hansgrohe showcases new products at ISH 2015 Hansgrohe, a German bathroom specialist, showcased its latest range for kitchens and washbasin, Axor Citterio E and Axor Starck V at the ISH show organised by Messe Frankfurt this March.

Axor Citterio E washbasin mixer

“Our innovations for bathrooms and kitchens give our customers genuine added value,” said Richard Grohe, Deputy CEO of Hansgrohe SE. “After all, they make everyday life in kitchens and bathrooms easier and enable us to use water more efficiently. They intensify the water experience and provide completely new solutions in the field of shower design.”

The Axor Citterio E is developed by the designer brand of Hansgrohe SE in collaboration with Antonio Citterio. The Axor Starck V has a glass mixer featuring a visible water vortex and is more of a fountain than a faucet.

8 construction business news me APRIL 2015

Model of Town Square

Nshama launches Zahra Townhouses Nshama launched Zahra Townhouses, a residential community, in its flagship project, Town Square, in Dubai this March. Town Square is spread over 750 acres, with a central space spread out as far as 16 football fields.

The Zahra Townhouses are the first residential phase in Town Square, and offer 3 to 4 bedroom houses. Nshama has joined hands with three lead-

ing financial institutions – Noor Bank, First Gulf Bank, ADIB – for home finance services.

Town Square will feature over 3,000 townhouses and 18,000 apartments as well as substantial retail, hospitality and commercial space.

With a total area of 31 million square feet, it will have a high land-to-building ratio, thus opening up more spaces for a greener community.

Oil price fluctuations to impact global real estate According to Tasweek Real Estate Development & Marketing based in Abu Dhabi, there could be shifts in regional and global real estate activities as the oil price shifts, in the past six months barrel rates have been their lowest since the 2007-2008 financial crisis.

After observing changes in the investor’s options, Tasweek says that main markets should prepare to adjust to the effects on property prices particularly the shifts in the housing and commercial sections.

Masood Al Awar, CEO of Tasweek, said: “While price drops in oil and variations in currency rates are triggering a real estate frenzy in many parts of the world, key markets could face a reverse slump in business.

The best strategy is to anticipate unfavourable market changes and broaden horizons especially towards high-potential regions and plan to adopt new smart products and services that can match and sustain market growth.”

Masood Al Awar, CEO of Tasweek

HLS and DSE work together on Jewel of the Creek

Upcoming canal at Falcon Island

China Harbour wins contract for marine works The marine and infrastructure works for AED1 billion Falcon Island development at Al Hamra Village in Ras Al Khaimah has been awarded to China Harbour Engineering Company under the AED 150 million contract. The China Harbour Engineering Company will be responsible for landscaping private and public beaches, and power, sewage, and road networks. The work would also include a built central canal which will split the island into two. The marine features are said to be the main attraction of the island. The existing beaches at Al Hamra Village will also be enhanced as part of the contract.

HLS and DSE work together on Jewel of the Creek Habtoor Leighton Specon and Drake & Scull Engineering have announced their agreement to jointly deliver the AED395 million MEP contract on the Jewel of the Creek Package 8 complex.

HLS has been nominated

by Dubai International Real Estate (DIRE) as the MEP contractor of the project.

The package forms a significant part of the AED 4 billion Jewel of the Creek project being developed by Dubai International Real Estate.

Construction work on Jewel of the Creek Package 8, a mixed-used development designed by Kling Consult

and Kieferle & Partner Joint Venture, has commenced and completion is targeted for Q2, 2017.

Jewel of the Creek

construction business news me APRIL 2015 9

NEWS

Upward projection L

ast year, RAK Ceramics’ profits have risen by 14.1%, sharply at 338.3 million in 2014 over 281.7 million in the previous year. The growth is a result of a new dividend policy adopted by the board of directors, who are now committed to return capital to shareholders. This sustainable policy aims at a pay-out ratio of at least 60% of consolidated net income subject to consideration of the business outlook, capital requirements for growth opportunities, expansion plans, optimal leverage levels and healthy cash reserve in addition to regulatory approvals.

Abdallah Massaad, CEO of RAK Ceramics, said: “Our financial performance in 2014 confirms the success of our re-focused strategy and ‘Value Creation Plan’. As we continue to invest in our ‘core-business’ activities across core markets, we expect to strengthen our ability to expand our customer base, significantly improve profitability and increase returns for our shareholders. We have started seeing the benefits of 10 construction business news me APRIL 2015

RAK Ceramics predicts a strong year ahead with a net profit of AED 281.7 million in 2014

the ‘non-core business’ divestments and we have set a proactive strategy to strengthen our distribution network and energise our B2B sales, they currently contribute 35 – 40 % of our top line and we want to grow this to over 50%.”

Key highlights for the period • Overall revenue in 2014 decreased by 6.4% to AED 3.28 billion.

• ‘Core revenues’ decreased by 1.9% to AED 2.8 billion and ‘non-core revenues’ decreased by 26.3% to AED 482.5 million in line with the strategy to scale down contracting operations.

• Consolidated gross margin was 25.9% for 2014 • Gross Profit decreased by 10% to AED 809 million due to the performance of China, Sudan and Iran.

Abdallah Massaad, CEO of RAK Ceramics

• Finance Expenditure (excluding forex), decreased by 24.5% to AED 67.9 million.

Wessal Capital's Casa-Port project

Restoration works at Casablanca Last month, Morocco began the US$30 million regeneration of its historic Old Medina in Casablanca. The project is part of Wessal Capital’s $570 million Casa-Port project to help restore the city. The restoration of Old Medina is the second phase of the project, with

work on the port redevelopment starting mid-March. When completed, Wessal's Casa-Port will offer tourist-friendly infrastructure, including the development of the city’s first marina, an upgraded port, and new commercial and cultural spaces. The public-private partner-

MADE IN UAE

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ship is due for completion in five years.

The project reflects His Majesty the King Mohammed VI’s personal interest in the social and economic development of Casablanca, as well as the improvement of the standard of living of the city’s inhabitants.

MANUFACTURING QUALITY DOORS, KITCHENS & INTERIOR FIT-OUT

NEWS

CH2M Hill showcases work at ME Rail “The projects currently under construction will add an approximate 30,000km of rail across the Arab World, that's nearly five times the length of The Great Wall of China," said Mark Loader, CH2M HILL's Global Rail

Director. He also said that the Middle East is one of the fastest growing rail markets in the world. CH2M Hill presented its urban metros, freight railways and high speed rail systems at this year’s Middle East Rail. The

exhibition also showcased the company's technical depth, global perspective, local understanding, and delivery expertise through a 360° visualisation of iconic infrastructure projects from around the world.

Nakheel Jumeirah Village Circle Villas

Project Qatar 2014

Project Qatar 2015 to feature over 30 pavillions This year marks the 12 th edition of Project Qatar, held from May 4 to 7 at the Qatar National Convention Centre (QNCC). Well ahead of the 2014's exhibition, 19 pavilions have already been confirmed, with 34 previously participating countries returning to this year’s exhibition.

Firas Bin Abdul Aziz Aba Al-Khail, 12 construction business news me APRIL 2015

Marketing and Corporate Communications Director at the Saudi Export Development Authority (SEDA) , confirmed that authority’s participation in the event, highlighting how solid and big the GCC market is for Saudi building and construction products.

The Saudi Pavilion will see 46 participating national factories.

Middle East Covering to organise 3-day design school The Middle East Covering exhibition, held in May 1821 will feature the Surface Design School. Sponsored

by Interface Europe, Karelia and Woodfloors, the three-day Surface Design School will provide an educational platform allowing interior designers, architects, retailers, flooring experts and contractors to get the most up-to-date information on surface solutions and techniques.

Regional and internationally-renowned experts will share their insights and facilitate the exchange of ideas on surface covering, interior design and new industry trends.

Marble entrance of Emirates Palace

Stone products to be showcased this May GCC projects account for more than a fifth of the global natural stone market, with US$5 billion out of the total of $24 billion globally. Stone products account for approximately 15% of the total value of a construction project. Mark Goodchild, Event Director of Middle East Stone said it is the perfect time to launch a show dedicated to the stone industry. The event, ME Stone, will run from the May 18 to 21 at the Dubai World

Trade Centre this year. He said: “The growing number of people wanting to live, work and visit the UAE, Qatar and Saudi Arabia, has been a huge driver for the construction industry’s robust performance. There will be hundreds of hotels, new residential buildings and commercial spaces to be built over the next few years. As such, the massive demand for natural and artificial stones cannot be ignored.”

GE launches new programmes in KSA GE announced a US$100 million investment in new programmes in KSA that will help create jobs in advanced manufacturing and software analytics. The new research and manufacturing programmes are set to improve energy efficiency and sustainability efforts of the country. The programmes include a 'Hot & Harsh' global research & development programme,

which will study the effect of high temperature, dust, corrosion, erosion, duty cycle, and fuel harshness which have a critical impact on the reliability and efficiency of power plants.

This R&D programme will design gas turbine and auxiliaries components for testing at a simulated 'hot and harsh' environment at GE Manufacturing Technology Center.

Dragon City, Bahrain

Majority of retail space leased at Dragon City Real estate consultancy, Cluttons, announced this March that Dragon City, the new 115,000 square metre mall under construction in Bahrain, has already pre-let more than 60% of space. Appointed

by Chinamex, Chinese trading company, Cluttons is the

official leasing agent of the multi-million dollar retail project. The mall design is infused with Chinese architectural and cultural aspects and will incorporate 750 retail store units with 4,500 square metres designated for warehouse space.

construction business news me APRIL 2015 13

COVER STORY

Strategising

Growth Hill International’s regional president for the Middle East Mohammed Al Rais talks to Aby Sam Thomas about the project management sector in the region, and its way forward in what is now a booming construction market

14 construction business news me APRIL 2015

With more than 35 years of experience in the management of construction projects around the world, Mohammed Al Rais looks to be extremely well placed in his role as regional president for the Middle East for the New York Stock Exchange-listed construction consultancy, Hill International. Al Rais was appointed to this position in January this year (he was earlier the Senior Vice President and Managing Director for the firm), and to say that he has a lot on his plate right now might be a bit of an understatement, given the dynamics of the region he oversees.

“The Middle East is the biggest region for Hill International, both numbers-wise and revenue-wise,” Al Rais explains. “We are doing something in the region of, I think, 62 projects today, with value worth about US$82 billion of construction costs.” Given the amount of work the company is dealing with right now, it should then come as no surprise that Hill International has been on a recruitment spree of sorts as well — Al Rais says the company has been hiring an average of 70 people per month for the region, with the total number of employees it has in the Arabian Peninsula reaching 1800 now.

Now, if Hill International’s regional staff numbers sound impressive, wait till you hear about the projects it has under its belt — the company’s current portfolio includes several prestigious undertakings like the Midfield Terminal Complex at the Abu Dhabi International Airport in the UAE, the expansion and modernisation of the Salalah and Muscat airports in Oman, the 57-acre Jabal Omar development in Saudi Arabia, the Doha Metro Green Line in Qatar and a lot, lot more. In addition, Hill International is also enjoying renewals and repeat projects from many of its existing customers – for instance, in February this year, the company announced that it had received three new project management and site supervision contracts from the Civil Projects Division of one of its long-term clients, Abu Dhabi National Oil Company, which were estimated to be worth a total of $25 million. As far as Al Rais is concerned, such happenings are indicative of Hill International’s expertise in the sector: “I think that is the evidence of the success of our services, the quality of services we provide, and so on, where people come and keep us onboard for longer and longer.”

When asked about the reasons why Hill International has been able to succeed in the market, Al Rais pointed to the singular focus the company had on the field of project management, and as a result,

construction business news me APRIL 2015 15

COVER STORY Analysis

Nakheel Jumeirah Village Circle Villas

Mohammed Al Rais, Regional President for the Middle East, Hill International

its particular expertise in that field. “At the end of the day, we are specialised in project and construction management, because we have the systems, we have done our own procedures, we have done our own QA/QCs, and so on — so we have all our processes in place,” he explains. “The people we put in at the start of a project — they bring in the system, the Hill processes, and then explain these to the consultants or contractors, who are then expected to follow [the procedures]. Because standardisation for us is critical — so everybody understands how to talk to everybody else, who’s responsible for what, and so on, and that will basically delete a lot of the ambiguity that normally takes place in projects. This is one of the differences that we bring in- we have those [systems] in place, and we make them work for the project, but based on the client.

And I think this is why we have been so successful in this area to this level.”

Al Rais also noted that having had a presence in the Arab world for over 25 years is also a significant advantage for Hill International when it comes to 16 construction business news me APRIL 2015

“People cannot expect to come from the West or the Far East and expect the Middle East to behave like they do – it’s the reverse that is actually expected.” winning — and retaining — projects in the region. “We understand the culture in this market,” Al Rais says. “I think that is critical. People cannot expect to come from the West or the Far East and expect the Middle East to behave like they do- it’s the reverse that is actually expected. You’re coming here to do business, so you need to understand the locality, the culture, so on and so forth — and we do, big time.” In addition, Al Rais also drew attention to the way Hill International actually did business with clients in the Middle East. “Although we are a public company on the

Palm Jumeirah

Projects Overview A few of Hill International’s past and current projects in the Middle East: • Sheikh Zayed Bin Sultan Al Nahyan Mosque, Abu Dhabi, UAE • The Palm Jumeirah, Dubai, UAE • Jabal Omar Development, Makkah, Saudi Arabia • Pearl Qatar Development • Bahrain International Airport • Abu Dhabi International Airport Midfield Terminal Complex, UAE • Muscat International Airport, Oman • Salalah Airport, Oman • Mall of Qatar • Riyadh Metro, Saudi Arabia • Doha Metro Green Line, Qatar

Abu Dhabi International Airport

Source: www.hillintl.com

Sheikh Zayed Mosque

NYSE, we have a very simplistic format of moving,” he explains. “So decisions are made very quickly, because of the amount of authority and responsibility we have and send down the line. This quick response [format] that we have set up [in the company], and given to all of our clients makes a huge difference, because people expect swift answers in this market.”

Al Rais is also extremely keen on en-

couraging the understanding of project management in the region, and increasing local participation in the field. Hill International, for its part, has launched training programmes in Saudi Arabia and Oman, and Al Rais reports that the resounding interest these initiatives have seen have spurred the company to increase its offerings in this particular area. “Knowledge transfer is critical — but it’s not just hiring people for the sake of meeting quotas,” he says. “It’s an issue of training people… Project management firms in the area are not giving back to their localities as much as they should. I think there should be a lot more done, us included. We should give back more to the areas we are working in — this is income, this is revenue, and I think we should give some of this back to the local people through training, education, bringing people on board… We’ve started this in Saudi Arabia, we’re starting it now in Muscat — but I think we are lagging behind, and we need to do a lot more. Having said that, I think we’re doing a lot more than a lot of others.”

At the same time, the construction sector in the region is booming, and the sheer deluge of projects being announced (and already being worked on) here has caused Hill International to also consider alliances with fellow companies in the project management field to take on this load. “Projects are becoming much bigger, much more complex,” Al Rais says. “There is so much going on that you will reach a stage where [for] certain projects, you’ll have to partner with reputables. So what we do is we actually seek these relationships with companies similar to us, if not better than us — because, at the end of the day, the project is the most important thing, and if we can achieve a relationship with other consultants that allows us to actually provide the service with the support of others, then we shall — we don’t shy away from that. We don’t have a problem with that. At the end of the day, the client and the project is the target, and achieving quality on the project is the most important thing for us.” construction business news me APRIL 2015 17

ANALYSIS

Brig Bright futurefutu for solar providers for pro A new electricity feed-in tariff structure in Dubai has signalled changes to the way that firms may power their business premises, with renewable energy sources now a viable option. Alison Luke examines how the Shams Dubai initiative will affect solar power providers in the Emirate and asks what opportunities may arise for contractors and consultants?

18 construction business news me APRIL 2015

ght ure solar T oviders he potential for solar power application in Dubai has risen dramatically following the implementation of a new initiative by Dubai Electricity and Water Authority (DEWA).

Announced in mid-March, the Shams Dubai initiative will regulate the generation of solar energy in individual buildings and enable their connection to the DEWA grid.

In essence, the initiative encourages businesses and consumers to install photovoltaic (PV) panels on their premises to generate electrical power for their use onsite, then ‘sell’ any excess power back to the grid. This offers two positive outcomes: a shift from demand on electricity produced by traditional energy resources; and financial savings for the

participating end-users.

“DEWA is introducing a net-metering legislation, which has two parts,” explains Erik Voldner, executive director of operations at PV system integrator Enviromena. “The first part will allow users to feed electricity into the DEWA grid; the second will credit the end-user with energy, so it essentially allows them to reduce electricity bills.”

The move aims to increase the use of renewable energy resources and diversify the energy supply chain in the emirate. This follows the targets of Dubai Plan 2021 and the Dubai Integrated Energy Strategy 2030 to raise renewable energy use in the emirate’s energy mix to 7% by 2020 and 15% by 2030. But how will the initiative operate in practice and how will it affect the current MEP providers?

PV application Although improved technology and a significant drop in the cost of PV panels are making such systems financially viable, they may not be cost-effective for all projects. This will be reflected in the initial implementation of Shams Dubai.

One of the main factors to consider is the available space for the panels on a project. Brian Dryburgh of MEP consultancy Black & White Engineering explains: “To make any significant impact on your bills, you need a relatively big area to install panels, so large industrial units or warehouse roofs immediately spring to mind as being the most feasible buildings to accommodate large areas of panels.”

Thus, the legislation may not affect skyscraper design in the short-term due to the smaller roof space available, for construction business news me APRIL 2015 19

ANALYSIS Analysis Panorama1 Top: Enviromena - ADDC oura Parking Left: Enviromena – Mam raam 5 - solar field helicopter view Below: Enerwhere - Rem Nakheel Jumeirah Village Circle Villas Enerwhere - Remraam 5 -

solar field helicopter view

ing

Enviromena – Mamoura Park

example. Plus, the largely expatriate nature of Dubai’s population may have an effect on the initial uptake from the domestic market, with new, large-scale developments expected as more likely to include the scheme rather than individual end-users. “[Shams Dubai] has been set up so that it is open for everyone, but those that will gain the greatest economic benefits will be the large power users such as industrial sites, malls and schools,” agrees Voldner. “The economics [of an individual project] will depend on a lot of factors such as the size of

“A PV system] typically costs AED5000/kW, so if you have a 500kW system it will cost AED2.5 million to install and produce about 800,000kW/ yr, so can save around AED350-400,000/yr.”

– Daniel Zywietz

20 construction business news me APRIL 2015

plant needed, but the first people to use PV will be the large electricity users,” Voldner predicts.

“We expect a lot of interest from the free zones, where a lot of roofs are large and south-facing,” adds Daniel Zywietz, CEO of solar power provider Enerwhere. “[We will] market initially at this industrial sector because the economics work out. The economics of installing a small villa system are not there, at least not for those looking for a fast investment return,” states Zywietz.

Getting ready for installation With the expected surge in applications for PV installations, a large market of work is set to emerge. But which firms can undertake this work and what qualifications are required?

With a limited number of specialist solar firms in the emirate, one of the obvious answers to this is the MEP professionals. “There certainly appear to be diversification opportunities for MEP engineers towards the specialisation in the field where the solar panels are contained upon the building,” says Dryburgh.

“The design and feasibility of solar panels is not as overly complex as to merit separate specialist consultants,” he says. “Many MEP consultants and/or architects, I'm sure, are capable of ensuring that the necessary requirements are included in the building design, but I certainly would expect to see manufacturers and specialist installers involved in the final design and installation,” he stresses.

In order for a firm to design or install PV systems under Shams Dubai they must meet a number of criteria. Firstly, firms must be enrolled with DEWA as an electrical consultant or contractor, having qualified to hold the relevant trade licences. These firms must also employ a certain number of employees that have been certified as ‘solar PV experts’

by DEWA. To gain ‘expert’ status, individuals must hold a degree in electrical or electrical and electronics engineering and have relevant professional experience. In addition, all of these individuals must also have completed the DEWA Solar PV Certification Training Session.

“The first certification training took place in March and the first systems are expected to be connected in the next month or two,” says Zywietz.

02 - 04 March 201 5

ANALYSIS

“DEWA has qualified the first round of suppliers and is in the process of qualifying consultants and contractors,” adds Voldner. “A lot of firms are interested in completing the training courses and we expect this to grow each time that there is an opportunity.”

The initial training courses have been provided free of charge and are being sought by MEP contractors seeking to diversify their trade, as well as existing solar integrators.

“The programme is open to everyone as long as they meet the qualification criteria,” explains Voldner. “This will generate a lot of interest from three main areas: existing pv installers in the Emirates; PV installers from overseas; and local companies [such as MEP contractors] moving into the solar industry,” he predicts.

In addition to the installation of the systems, a further market will be system maintenance and many within the industry expect this to be the main area targeted by traditional electrical and MEP contractors, at least in the short-term.

Maintenance costs of PV systems are also minimal, with no moving parts in the panels and improved technology meaning there is no dramatic drop in power supply even in a sandstorm. “It is a proven technology and proven in the region, so any concerns over climactic conditions or dust are manageable

“This will change the market from one with little installed capacity to being one of the main regional leaders in PV electricity supply.”

– Erik Voldner

Enviromena senior management team, Eric Voldner is on the lhs with blue tie

22 construction business news me APRIL 2015

and predictable,” assures Voldner. A scheduled weekly or fortnightly cleaning programme should be applied in addition to regular plant checks, providing a long-term work opportunity for DEWAapproved contractors.

Cost issues Current costs of both PV technology and grid electricity make this an optimal time for applying solar power. “[Solar power] is a reliable electrical source with decreasing costs: the capital costs of PV panels dropped by 80% over the past 5-6 years, so costs are now in competition with other electrical sources,” says Voldner. “This is why DEWA has introduced a net metering scheme now; it is the right time from both technology and cost points of view.”

In general, the larger the PV system installed, the lower the payback period.

For optimal payback, systems should be designed to cut into the red tariff usage of end-users, which is currently 44.5fils per kWh. “At that price a solar system can have a payback period of seven to eight years,” says Zywietz. “[A PV system] typically costs AED5000 per kW, so if you have a 500kW system it will cost AED2.5 million to install and produce about 800,000kW per yr, so can save around AED350-400,000 per yr,” explains Zywietz. “A payback of six to seven years is possible on this depending on a number of factors including the orientation of the roof, but consumers must also account for maintenance costs [when calculating payback],” he stresses.

DEWA will charge a one-off fee of AED1,500 for each grid-connected

Enerwhere - SAV Phase 2 setup 1

renewable generator as part of the connection process. Further equipment costs are possible for installations of 400kW and above to ensure the proper integration of the renewable generator into the DEWA distribution network.

Two meters will be needed - a bidirectional smart meter that measures the electricity exported to and imported from grid will be installed free by

DEWA; the second meter, which will measure the electricity generated by the PV system, forms part of the one-off connection fees.

Long-term market outlook The Shams Dubai initiative will undoubtedly play a major role in Dubai’s future energy use. The government wants to expand the use of solar energy

and to do that alone by solar fields would require a lot of space that could be used for other developments, hence it appears to be a wise decision to offer this solution. “[Shams Dubai] is part of the integrated plan to increase the renewable energy capacity of Dubai,” reports Voldner. “This will change the market from one with little installed capacity to being one of the main regional leaders in PV electricity supply,” Voldner predicts.

The first project to be announced under the initiative is the installation of PVs at Al Maktoum International Airport in collaboration with Dubai Airports to supply 30kW of electricity to the site.

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construction business news me APRIL 2015 23

Transport infrastructure development is worth billions in every country of the GCC.

mo Stuart Matthews writes

24 construction business news me APRIL 2015

View over the bridges at Dubai Internet City

ove

construction business news me APRIL 2015 25

SPECIAL FEATURE

T

ransport infrastructure is at the heart of any urban development, with mobility of goods, services and people essential to oil the wheels of the economy. It’s no surprise then that the last decade has seen the nations that make up the GCC invest billions in building a transport network that rivals any in the world.

Figures for the combined value of investment still to come are hard to pin down, but regardless of their variety they all have size in common. A report released late last year by Timetric, a research analyst, suggested the GCC is likely to invest US$121.3 billion in boosting its land transport infrastructure alone.

Those with a head for numbers can add to this figures for airport developments around the Middle East –something research firm Ventures estimates at $300 billion worth of spending over the next five years –all aimed at accommodating GCC passenger numbers which are expected to reach almost 4 billion by 2017.

View over the bridges at Dubai Internet City

Monorail station on a man-made island Palm Jumeirah in Dubai

26 construction business news me APRIL 2015

With this money set to go into transport infrastructure, opportunities for construction contractors and those in the project management and consultancy areas are likely to continue. Investing in projects of this scale is not without risk, but in some local markets this risk shows signs of declining.

In its most recent update to its Construction Risk Index, a global ranking of 50 key construction markets, Timetric noted that the UAE had improved in its overall risk profile, despite the decline in oil prices, thanks to what the analysts described as ‘fiscal buffers’ supporting non-oil growth, while efforts at economic diversification in the country continue.

When Dubai published its 2015 budget the figures showed that while infrastructure spending would slow compared to 2014, it still counted for some 13% of the emirate’s total expected outlay. Across the UAE public transport programmes have continued to attract investment. This shift has developed, not least because it had to. Abu Dhabi’s Department of Transport (DoT) estimated that by 2015, the annual cost of

time spent in congested traffic would be about $680m, rising to $1.6 billion by 2030.

While major roadwork programmes had eased access into and out of the capital, the relief would be temporary if other solutions weren’t put in place, and population and vehicle numbers just kept growing. DoT has a stated target of getting 33% of all trips taken in the city to be conducted via public transport.

The development of multimodal transportation is a pattern repeated around the region, where road and bridge building is combining with primarily rail options to ease congestion in increasingly crowded cities.

“We saw some positive momentum towards the launching of the rail network creation activities in our region in 2014,” says Khaldoun Al Tabari, CEO and vice-chairman of Drake & Scull International (DSI), speaking on the sidelines of the Middle East Rail Summit.

“Regional governments have recognised that rising populations have exerted pressure on existing road infrastructure, and only a dedicated rail and metro network can ensure swift and efficient transport of people and goods.

“According to an Ashurst study in November 2014, the GCC Rail alone is expected to span 2100km in length, with the UAE and KSA constituting the bulk of the rail network. However, the recent uncertainty regarding the 2018 launch target for the ambitious GCC rail has tempered the regional industry’s expectations to realistic levels.”

Tabari points to examples of potential development around the region such as Saudi Arabia, where the Saudi Railways Commission is developing the $5.3 billion Saudi Railway Company Line, the Landbridge project, the $7 billion Haramain High Speed Rail and the $15 billion Makkah Mass Rail Transit project, among others. In Qatar estimates of the spend on the Qatar Integrated Rail programme are in region of $40 billion, with the Doha Metro being a crucial component in the country’s hosting of the 2022 FIFA World Cup. Massive programmes such as this could develop into a peak for regional construction between now and 2019, according to consultants EC Harris. In it’s Middle East Major Construction Programmes report, it estimated that 1.2 million additional labourers will be needed to deliver the 117 major programmes it identified from 2014 to 2019. These major programmes - anything worth more than $1 billion will also need 135,000 professional staff at peak. Some 22% of these programmes

HOT SPOTS Riyadh, Riyadh Metro With a total project budget of some $22.5 billion the Riyadh Metro drew global attention when the contract awards were first announced back in 2013. With the projects six lines split into three packages, three separate consortia all won work, spreading the risk for the project’s developers. The BACS consortium led by Bechtel and including Almabani General Contractors, Consolidated Contractors Company and Siemens is to design and build lines 1 and 2, totalling 63·3 km. The ArRiyadh New Mobility consortium won the design and build of Line 3, the longest at 40·7 km. The FAST consortium led by Spanish construction group FCC and including Samsung C&T, Alstom, Strukton, Freyssinet Saudi Arabia, Typsa and Setec is to build lines 4, 5 and 6 covering a total of 64.6km. As work on the project progresses, smaller specialist packages continue to be awarded.

Abu Dhabi, Midfield Terminal Building It was one of the UAE’s most anticipated contract awards. Thirteen contractors across four consortia were in the running but it was the ArabtecTAV-CCC partnership that was to emerge the winner, signing a $2.94 billion deal to build the Midfield Terminal Building at Abu Dhabi Airport.

Since the signing progress has been scrupulously documented, with the building due to be ready for airline operations in July 2017. The landmark project is progressing on schedule, according to Abu Dhabi Airports, a public joint-stock company, wholly owned by the Abu Dhabi Government, with five airports under its control.

Doha, New Port Project Just south of Doha, the Qatari capital’s new $7.4 billion port project, one of the largest greenfield port projects in the world, is being dug, walled, levelled and prepared for operation. The new port, which is to include a new base for the Qatar Emiri Naval Forces and the Qatar Economic Zone 3, will span 26.5 km2 and is expected to be complete in 2016. With seven major contractors undertaking construction work on site, and a workforce knocking around 9,000 people the most recent milestone was the flooding of the port basin. Approximately 76 million m³ of water is required to fill both the port basin and access channel, all of which was scheduled for completion by the end of March 2015.

A major contract award is expected in the second quarter of 2015, with work on the construction of all the buildings for the naval base up for grabs, a total of some 225 buildings.

Muscat, Al Batinah Expressway Credited with having one of the most transparent tender processes in the region Oman has some $56 billion worth of infrastructure projects planned between now and 2017, including the high profile Al Batinah Expressway. The ambitious roading project is split into 11 separate packages, with six already awarded. Packages 7 to 10 are currently under offer with up to a dozen different contractors in the running for the main construction work. The Al Batinah Expressway will stretch over 265km and has been estimated at $2.6 billion.

When finally complete it will provide a direct link between Oman’s capital, Muscat, and the emerging Sohar Port and industrial area near the UAE border. construction business news me APRIL 2015 27

SPECIAL FEATURE

“Regional governments have recognised that rising populations have exerted pressure on existing road infrastructure, and only a dedicated rail and metro network can ensure swift and efficient transport of people and goods.”

Riyadh Metro

– Khaldoun Al Tabari, CEO & Vice Chairman of DSI fall into the transport sector and again, metro and rail programmes are the leading area identified.

With these pressures come risks. For instance, EC Harris suggests that securing a suitably skilled workforce to build and then test the rail network in Qatar is seen as a major challenge to delivering on the country’s $36 billion rail plans. Other risks around the region include the return of inflation as procurement for the projects starts to heat up.

This may translate into some welcome news for the region’s construction suppliers, who are starting to see some of these major programmes reach mobilisation stage.

“At the moment Qatar is very active in the transport sector, in terms of bridge works and freeway construction, with the added opportunities rising out of the Doha Metro project coming on stream as well, in terms of mobilisation,” says Paul Williams, divisional operations director, for RMD Kwikform, a formwork company.

“Equally in Saudi Arabia we have a lot of involvement in bridge and airport projects, but the bigger prospect looking forward and including recently secured work is on the Riyadh Metro. That’s a massive project and we’re hopeful for much more work on it yet.”

The company also has formwork in place on the Abu Dhabi’s Midfield Terminal Building project as well as a number of recently secured bridge work contracts in Dubai, which Williams describes as an ‘improving market’ for RMD Kwikform.

With nearly half of the company’s revenues in the region coming from transport-related work, the business works hard to deliver on its projects.

“The Riyadh Metro is such a huge development we established an independent team to track the work, so that an extra resource added to run a project of that size,” explains Williams.

Williams says that this is something the company does on the larger projects it services, which also bring with them a need for ideas and innovation.

“They require innovation in the design process and the equipment we use and supply to these jobs,” he says. “This is both for efficiency and getting the right end result in terms of concrete finish, programme times and safety.”

It will take many providers throughout the construction supply chain, who can deploy similar levels of skill and resource, to complete the region’s transport projects to schedule. Those that can manage it, may find it a lucrative line of business.

A Road in the Omani mountains

A tunnel on Kalba - Sharjah highway, UAE

Riyadh-Mecca highway in Saudi Arabia 28 construction business news me APRIL 2015

IN THE FIELD

e h t g n o l A Along the

t s a o coast c Saadiyat Development and Investment Company showcases innovative designs, landscapes and architecture at the upcoming Hidd Al Saadiyat development Mock villa at Hidd Al Saadiyat

Aerial view of the construction at Hidd Al Saadiyat

L

ast month, Saadiyat Development and Investment Company (SDIC) showcased its first villas at the Hidd Al Saadiyat development, a 1.5 million square metres of natural waterfront land on the north-east part of the Island.

The Abu Dhabi-based real estate development started infrastructure work on Hidd Al Saadiyat in October 2012 and the construction of the villas for the community in July of 2013, the first villas are now available for viewing by its clients and potential buyers. The community is also covered with seven kilometres of beaches on Saadiyat Island.

The villas combine contemporary, Mediterranean and modern Arabic architecture designed to complement the spectacular beachfront location and surrounding landscapes.

The area will be inhabited by 4,000 people with 453 villas and 15 low-rise

apartment buildings. The estimated demographics of the residents would be 60% local Emiratis and 40% expats.

Mahmoud Dandashi, Commercial Director at SDIC says: “The management highly appreciates the support of Abu Dhabi Urban Planning Council, Abu Dhabi Municipality and all government authorities in turning this vision into a reality. Project success is the result of SDIC’s pursuit for service excellence with a mission to deliver the most healthy and sustainable lifestyle, in line with Abu Dhabi’s 2030 plan.”

The private beach is conveniently accessible from all areas throughout the development and will be reachable through a three-minute walk from any villa in the community. The coastal dune habitat adds value to the entire project with a potential turtle-nesting area. The island is organically developed with vegetation that is native to the area,

LANDSCAPE • The landscape includes interconnected park spaces featuring fitness trails, cycle and walking paths, children’s play areas, open lawn spaces and shaded seating areas.

• Key aspects of the open space have been designed for water conservation, planting design species selection, material selections for solar reflection (SRI values), shading of walkways, seating areas and children’s play areas.

• 90% plant species that are native and adaptive, drought or saline tolerant species

construction business news me APRIL 2015 31

In The Field

Miniature mock-up community of Hidd Al Saadiyat

requiring minimal water and is aligned with the overall natural system management of the development.

The villas and low rise residential buildings are designed to respond and adapt to climatic conditions, utilising active and passive design principles, thus minimising the need for cooling and reducing energy demands. In addition the lighting of the buildings, streets and public areas will feature control mechanisms that minimise overall light spill and limit impact on the natural beachfront. The project was awarded the Estidama Pearl 2 rating for compliance with Abu Dhabi’s sustainability standards for new projects.

Dandashi says: "Achieving the Estidama rating is particularly special to us as it adds to our value and validates our sustainability credentials."

Craig Slingerland, Project Director at SDIC, says that the systems installed in the villas are smart systems, which adjust temperatures, fan speed, etc. via Ipads. “It also tells you your consumption enabling you as a customer to be more aware of your usage.”

This March, SDIC has successfully managed the complete 78% of the infrastructure and 40% of the villa construction. The construction is still in progress and the project is due for completion at the end of 2016.

32 construction business news me APRIL 2015

“Achieving the Estidama rating is particularly special to us as it adds to our value and validates our sustainability credentials.”

– Mahmoud Dandashi, Commercial Director at SDIC

The villas include a home automation system from UT Technology to provide potential residents with the experience and convenience to manage and control the different automation systems at home from a variety of interfaces. UT Technology home automation fulfills the Estidama initiative of supporting the Abu Dhabi Urban Planning vision 2030 for energy efficiency and green buildings.

The home automation includes a lighting, community portal, audio, curtains, re-

porting and security, energy consumption, video, unified billion integration, climate, and real time monitoring.

The buildings are designed specifically to respond to climatic conditions and minimise energy demand for cooling.

In addition, majority of buildings align north-west to south-east to accommodate local climatic conditions.

The construction includes optimal opportunities for water, energy and solid waste reduction for buildings along with the use of efficient fixtures and fittings. SDIC has also made a provision to use solar energy for hot water in the entire development.

Apart from the villas, the area is being designed and landscaped to prioritise pedestrian and bicycle connectivity, and walkability through linear parks. The public areas are provided with shading through shading structures. “Even the walk to the beach is convenient and accessible”, says Dandashi. The natural systems management of landscape design is done through relevant plant selection, avoidance of pesticide use and efficient irrigation systems to ultimately reduce water demand for irrigation.

Even the use of native vegetation was appropriately executed to reduce water use. The community will also include a solid waste management strategy included in its infrastructure that includes provision for recycling facilities.

COMMENT

Breaking the cycle of poor indoor quality

W

orking in an enclosed space without any fresh air for up to eight hours or more, may sound like a nightmare, but for many white collar workers, it’s simply a typical day at the office.

The American Society of Heating, Refrigerating, and Air Conditioning Engineers recommends that office building ventilation systems pump in 20 cubic feet of fresh air per minute per person, but in reality, a mere five cubic feet is the average.

A report from the World Health Organisation (WHO) stated that a total of 3.3 million people died globally in 2012 from

While air pollution and ozone layer depletion are being tackled at the highest levels of government, the issue of indoor air pollution is still languishing behind the times when it comes to office and building design and functionality.

Andrew Sibley writes

indoor air pollution, and with the majority of us spending 90% of our time inside – especially in the Middle East region – the ergonomics of our environment are vital for our personal wellbeing.

According to the US’ Environmental Protection Agency, the number of ‘sick building syndrome’ cases being reported is on the increase, with one in every four buildings officially classified as unhealthy. The resulting knock-on effect of employees suffering buildingrelated illnesses, costs companies and economies, billions each year in lost productivity. In fact researchers found the financial benefits of improving office climates (e.g. less absence due to illness) can be 8 to 17 times

greater than the costs of making those improvements.

A study authored by William Fisk of California’s Lawrence Berkeley National Laboratory, revealed that improved indoor air quality can actually boost productivity, with a half-percent increase to 5% resulting in estimated savings of US$20-200 billion per year in the US, and this is why we specifically engineered the patented Desso AirMaster carpet range.

Investment into R&D is non-negotiable when it comes to developing products that we are confident will deliver on quality - both in terms of customer satisfaction and, ultimately, positive long term health implications.

The consequences of our unassuaged fondness for a hi-tech, high-rise 21st century way of life mean that sick building syndrome is not set to change anytime sooner, but with sustainable floor to ceiling solutions becoming ever more readily available, The Office saga may just have a happy – and healthy - ending.

Andrew Sibley is the Regional Managing Director of Emerging Markets at Desso. His all-encompassing role ensures continuity of delivering quality products with health, wellness and wellbeing at the forefront of his vision.

Desso’s AirMaster carpet business news me APRIL 2015 34 construction

seabury report

THE NEW GATEWAY TO THE GULF

SUSTAINABILITY

Centrifugal water cooled chillers used for district cooling

G

eorge Berbari started his journey in 1995 with a natural gas fed district cooling scheme in Zayed Military City, Abu Dhabi. Having set up this one-of-a-kind system in the Middle East, he jokingly calls himself the “Godfather” of the district cooling in-

dustry. District cooling is the centralised production and distribution of cooling energy, where chilled water is delivered via pipelines to office, industrial and residential buildings to cool the indoor air of the buildings within a district.

According to Berbari, district cooling systems reduces power consumption by

George Berbari, Chief Executive Officer of DC Pro Engineering 36 construction business news me APRIL 2015

around 40% as compared to traditional and predominantly used air conditioning systems. Currently almost 20% of cooling is provided by district cooling and this is set to increase by 20 to 40% by 2030. That being said, Berbari states that district cooling faces the danger of stagnation as its technology is advancing at a much slower rate than other heating, ventilation and air conditioning (HVAC) applications. He says: “The district cooling industry uses a 10 year old technology with the only advancement coming from chiller manufacturers improving their efficiency.

The industry has recently responded to the customer complaints and reduced the district cooling fees to maximise profits and increasing number of customers. Berbari says: “There is nothing wrong with that, but I think district cooling needs to evolve into an industry that embraces the future

As the use of air conditioning continues to rise in the region, the power demand also is increases astronomically. At this point sustainable solutions are not only a wise choice, but imperative. District cooling, a wise choice, might be gaining popularity at this point, but CEO of DC Pro Engineering, George Berbari, says it is not enough. He speaks with Lorraine Bangera about upgrading the system with tri-generation and using renewables as better source in order to save exhaustible fuels like oil and gas

COOLING

eFFECT and offers a serious solution to global warming at competitive rates that the customer can afford.”

He says that as the GCC in particular is showing a big increase in power, the industry needs to pick up the pace and come up with better solutions.

Tri-generation or Combined Cooling, Heat & Power (CCHP), a process

that is slowly gaining recognition in the industry, provides 45% electricity efficiency and 87% total efficiency.

This will provide a 30% reduction in primary energy sources and much more if renewables are integrated. The solution, he says, is a synchronisation of district cooling tri-generation with renewable energy sources which

can result in 75% savings in primary energy as compared to electric powered district cooling. “Already, district cooling systems offer a 40% saving on power consumption compared to aircooled systems. The synchronisation can increase that.”

Tri-generation in district cooling synchronised with renewable energy has construction business news me APRIL 2015 37

SUSTAINABILITY

Combined cycle power plant

already captured the attention of intellectuals. He says that while tri-generation comprises of less than 2% of all district cooling plants, it is a growing trend with interest from governments to integrate renewables.

"The system curbs the exorbitant use of oil and gas for internal power generation, which has been increasing at around 7% annually," he says.

Berbari states that the industry needs to be cautious. If it does not develop and include renewable energy such as solar or deep geothermal on one side, and conserve primary energy sources such as natural gas or petroleum on another, traditional district cooling systems may become obsolete.

“Currently the UAE has committed to have 7% of renewable energy by 2020. This is indeed a step in the right direction for tri-generation systems.”

A model example of a tri-generation system using renewables would be the district cooling plant that DC Pro Engineering designed for the Research Council Innovation Park in Oman. The project synchronises local produced power with 1 MW photovoltaic and with the national electric grid to save 75% of primary energy.

According to Berbari while trigeneration is an obvious solution, 38 construction business news me APRIL 2015

affordability is one of the key challenges, the traditional air cooling equipment that dominates the market place are quite inefficient but affordable, hence they are the systems of choice. “Which is why basic district cooling can still claim to be sustainable as people are using systems that are even more outdated.

He says that the systems used are designed in the 1960s, with customers including some of the major international companies. “This is probably because we are not liable to anyone in the region, there is no regulation that has been passed to make things more sustainable yet.

“If we keep going at this rate we will end up losing 50% and eventually 100% of our gas and oil production internally.”

“It is simple, half of the electricity produced in this region is done for air conditioning which increases to 70% of electricity produced during peak summer. District cooling, which is an outdated system, can help by reducing said production by 30%. But today we have a way through tri-generation and the use of renewables which can help reduce the consumption by 75%. It’s just a matter of time before the right choice is made.”

5 million tonnes of district cooling systems have been installed over the past 15 years in the GCC region

GCC’s cooling demand exceeded 45 million refrigeration tons, with district cooling contributing 6% of the entire region and more than 20% in Dubai

Cooling demand is expected to increase by 5 to 7% every year

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Q&A

Design to build

KEF Holding plans to boost its operations with its expertise in offsite construction technology. The company is offering design, engineering, manufacturing, and assembling as one holistic service. Chairman of KEF holding, Faizal E. Kottikollon, tells Lorraine Bangera why offsite construction is the future Could you tell us more about the KEF Industrial Park?

Last year, KEF Holding launched the KEF Industrial Park, which is India’s only offsite construction facility. The 42-acre park will manufacture building components such as columns, beams, hollow core slabs, wall panels, staircases, windows, doors, bathroom units and façades. The facility will help cut construction tenure and costs by almost 50% and 30% respectively.

How is offsite construction different from traditional construction methods?

In a normal construction project everything is done on the ground, in offsite construction most of the work (around 90%) is done in the factory. It is quite 40 construction business news me APRIL 2015

simple, we call it ‘design, manufacture and assemble.’

Is offsite construction popular in the Middle East?

The UAE needs to increase its use of offsite construction, it is used here but only partly. The real value comes in when the entire project is completely planned, designed, and manufactured offsite. The whole concept has yet to take shape in Dubai, even though there are some projects where we are enabling full integration. Full integration includes spaces such as kitchen and bathrooms being constructed in the factory and then transported to the construction site. Currently we are designing a 100 bed hospital in

Dubai which is constructed completely offsite, and it will be commissioned in July next year. Since we started this method of construction, we have noticed a positive response from the market in the region. Our current backlog is upto US$300 million.

What are some of the benefits of offsite construction?

Firstly, offsite construction literally takes half the time a regular construction will take. For example, we can do a 200 bed hospital which usually takes three to four years in just 12 months.

We pre-design it and all the major construction is done precisely in the factory. Otherwise on the site there would be too much work and way too

R&D block at KEF Industrial Park, Krishnagiri, Tamil Nadu

is reduced costs. If you can finish a project in a year, which would usually take three years to complete, you’re cutting down cost considerably. Also the faster the project is complete the sooner you can generate revenue. So instead of waiting for three years, you could get the revenue from the second year onwards. This makes the business more viable.

What are some of the key challenges faced during offsite construction?

One of the main challenges at the moment is finding skilled labour. At KEF, we have people from Ireland and Scotland training people in India and though we have less people, they are very highly skilled. I think the lack of knowledge and training employees are the key challenges.

Aerial view of KEF Industrial Park at Krishnagiri, India

many corrections which could slow down the process. In a normal project there are way too many subcontractors and other parties that the project is reliant on.

In offsite construction, everything falls in place in the factory under one roof and is assembled at the site.

In this region particularly, with the exorbitant rate of construction and tight deadlines to deliver, this would be an optimal solution.

Even the challenge of managing a large number of unskilled labour is is resolved, as offsite construction is done in factories by robotics.

Taking the first two advantages i.e. less time and manpower, we could derive to the third advantage that

“Offsite construction literally takes half the time a regular construction will take.”

Faizal E. Kottikollon, Chairman of KEF Holding

Do you use building information modelling (BIM) solutions?

We can only work with BIM. All our work, even with mechanical, plumbing and electrical is always created on BIM. Once created it is transferred to the factory. We have over 150 people trained to use BIM that are all based in our Bangalore branch in India.

What are your plans for the Middle East?

Our next factory is going to be in the UAE, and we are planning to launch it next year. From the UAE, we plan to spread to the rest of the Middle East countries and North Africa, we are especially looking into Qatar and Saudi Arabia.

The advantage of doing business in Dubai particularly is the supportive government and how easy it is to attract talent from across the globe to come here. construction business news me APRIL 2015 41

PROJECT REVIEW

Total conservation S

ettled 2,000 metres above sea level in the western part of Al Hajar Mountains, Alila Jabal Akhda resort aims to be a hotspot for high-end tourists in the Gulf region. The resort has won many accolades since it first opened in May last year. Jabal Akhdar which translates to ‘The Green Mountain,’ is said to be one of the most scenic regions in the Sultanate of Oman. The resort, developed by Oman Tourism Development Company SAOC (Omran), is the first to acquire the international Leadership in Energy & Environmental Design (LEED) certification and represents a milestone achievement for the development of infrastructure in Oman. Omran is responsible for Oman’s rapidly growing tourism sector and focuses on major tourism, heritage, urban and mixed-use projects.

Eng. Wael Al Lawati, CEO of Omran says that the vision of sustainability for Alila Jabal Akhdar goes beyond the architectural design and construction phase, it also reflects the guiding principles of Omran, as well as the day to day operation and management of the resort which is centered on the principles of sustainability and environmental safety.

44 construction business news me APRIL 2015

Alila Jabal Akhdar has been awarded LEED Silver Certification in the Building Design and Construction rating system for New Construction by the U.S. Green Building Council (USGBC), making it the first LEED certified project in the Sultanate of Oman. Lorraine Bangera speaks with construction manager on the project, Ammar Al Kharusi, about its development and achievement

Alila Jabal Akhdar amid Al Hajar Mountain

Ammar Al Kharusi, Construction Manager for Alila Jabal Akhdar

Mark Edleson, President of Alila Hotels & Resorts admits he is proud to be partnering with Omran in this “meaningful quest.” He highlights the company’s vision to integrate natural conservation, community and commerce. He says: “Our green efforts extend to and beyond the operational aspects so that we can make a positive impact on the community – economically, socially and culturally.”

Ammar Al Kharusi. Construction Manager for Alila Jabal Akhdar, emphasises the importance of being LEED certified.

He says that apart from being recognised as a worldwide achievement for green building standard, the nature of the award ensures that projects awarded contribute to conserving scarce resources, promoting the health of occupants and workers and protecting the surrounding environment. Al Kharusi is also a LEED Accredited Professional certified by the US Green Building Council.

Richard Fedrizzi, CEO and Founding Chairman of U.S. Green Building Council, sincerely hopes that Alila Jabal Akhdar’s new green credentials will raise awareness of the importance of sustainable development. He says: “We hope it will

LEED certification Leadership in Energy and Environmental Design certification is recognised across the globe as the premier mark of achievement in green building. To receive the LEED certification, building projects require multiple energy saving and environmental criteria to be met including; sustainable sites, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, and innovation in design.

construction business news me APRIL 2015 45

PROJECT REVIEW

“Our green efforts extend to and beyond the operational aspects so that we can make a positive impact on the community - economically, socially and culturally” Mark Edleson, President of Alila Hotels & Resorts

Alila Jabal Akhdar resort

serve as a model for environmental standards for construction in the Middle East.”

Al Kharusi says that it is essential to concentrate on the environmental impact of all new projects as the tourism and hospitality sectors in Oman grows rapidly.

He says: “Development must take into account the environment, flora and fauna, and the benefits for the local community.”

Focussed on maximising the use of local materials during construction and minimising energy usage in the long run, the project incorporates many elements to promote sustainability.

During construction particularly, the project had a strict policy of pollution and waste reduction. There was an emphasis on segregating and recycling construction waste in order

46 construction business news me APRIL 2015

to minimise the amount of material sent to landfill. The choice of materials in the building was carefully considered to maximise recycled content, ensuring that the VOC content is kept at minimum.

According to the Al Kharusi, all materials used in the construction of the resort were sourced from within an 800km radius of the site. The building façade which is 12,800 square metres, was constructed using natural Jabal Akhdar stone extracted from the site itself.

The cement, steel, and aggregate were extracted locally or sourced through local distributors.

Moreover the use of alternative transportation was encouraged by providing bicycle storage, and low-emission vehicles were provided for movement within the resort.

Some environment friendly elements of Alila Jabal Akhdar include: •Innovative water treatment facilities for irrigation •Solar panels that provides up to 60% of the energy •Energy saving lighting and thermal control systems •Policy of pollution prevention during construction •Recycling scheme for the re-use of building materials

Other measures included the storm water runoff which was controlled to avoid erosion and sedimentation. He says: “These water saving measures were introduced by using an onsite STP to cater for most of the irrigation requirements and low flow fixtures were installed to reduce up to 30% of water consumption.”

Currently, the resort contains an efficient heating and cooling through the utilisation of VRF (Variable Refrigerant Flow) technology that ensures the cycle occurs only when it is needed. Al Kharusi says: “This approach, combined with the controllability of the thermal and lighting system, renewable energy (photovoltaic cells) for the hot water supply and high performance insulation result in a significant reduction in the energy performance baseline.”

In terms of maintenance, he says there is no difference in maintaining buildings with and without sustainable credentials. As with any building, a well-trained facilities management team is essential to reduce maintenance issues and complications. construction business news me APRIL 2015 47

ARCHITECTURE

Processing the right solution Building information modelling (BIM) solutions has been in the market for more than a decade but the transition to BIM has been taking longer than expected. Experts say this is probably because of the lack of knowledge in the market about what BIM really is.

Lorraine Bangera writes

48 construction business news me APRIL 2015

“The region is at the present time very much on the radar of global practices.”

L

et’s get one thing straight, BIM is not something to get done with and checked off. It’s a process. Peter Gertler, Consulting Director at Autodesk, explains it well when he says it’s like the accounts department in an organisation that is carried out through the whole lifecycle of a company. BIM solutions can be used from the conception of the building, all the way through construction and operations to the demolition.

Basically BIM is a management system that helps you design, build, and operate a project. Director of Infrastructure Owners at Bentley Systems Europe B.V, Chris Palfreyman, says that it is a process by which an organisation could enrich information through a particular lifecycle of an asset. “So instead of drafting a design and trying to recreate it, we progressively increase the value of the information as we go through the process.”

Heart of Sharjah

In a typical process before BIM was introduced, preliminary designs would be shared through paper. As the designs were handed over to the next stage, the person in charge would have to interpret it, which was time-consuming.

Palfreyman says that it wasn’t a good handover between the various stages of a project. “BIM eliminates all those handover issues, making it easier to transfer information from one person to the other.”

It increases efficiency, reduces mistakes, and gives the person who comes in much later in the process better information.

Currently the common technology used is AutoCAD, which has been used since the 1980s. Professor Alex Albani, Associate Professor of Architecture at American University of Dubai, says: “When AutoCAD was introduced, it brought about some efficiency. It was faster to use AutoCAD and you could

share information in a much more articulate way.”

At the time the transition from paper to AutoCAD was rather smooth, but now the transition from AutoCAD to BIM (which was introduced in 1998), is taking a lot of time. The transition is necessary as even though AutoCAD brought higher efficiency, it is still rather “abstract,” whereas BIM is “integrated.”

He says: “I constantly remind my students that this period will go down construction business news me APRIL 2015 49

ARCHITECTURE

“People say they are going to ‘BIM-ify’ your building without actually explaining the benefits or the process of BIM. So even though there is a lot of talk about BIM, there is no real understanding of what it entails.”

– Adrian Jarvis

50 construction business news me APRIL 2015

in history as the time the transition from AutoCAD to BIM took place. We are still going through the transition and not everybody is on board yet.”

The professor calls BIM a powerful tool. He says the process is exemplarily efficient. For example he says that, when you make a change on the system, this change is automatically carried through without any manual effort. In AutoCAD on the other hand, if someone updates a window, they have to make changes manually on every window that is cross-referenced.

Even though BIM is used extensively in the UK and the US, it hasn’t been picked up as much in the Middle East.

Marek Suchocki, Infrastructure Sales Development at Autodesk, says, “This region is beginning its journey with BIM in terms of knowledge and understanding, so there is a lot of talk about it.”

Gertler says that there are signs that BIM is being adopted gradually in this region. He says, “It is being used extensively in the engineering and design community but the construction business owners are slower to adopt because it will significantly change their organisation.”

He calls this region unique, observing the sheer magnitude of the projects delivered here along with the “aggressive”

schedules under which they have to be completed. “BIM is definitely a solution to meet these challenges.”

“The transition is possible”, says Palfreyman. “People here are willing and well prepared to learn from other parts of the world.”

Though the diversity in this region does pose a challenge to enable the use of BIM solutions widely. He says that the market here is extremely diverse, people who handle the projects come from all over the world. They come from different cultures, different backgrounds, and different levels of experience. “So you have a sort of melting pot of skills, disciplines, and cultures.”

Suchocki also agrees that diversity could be a barrier. He explains, “The diversified workforce come from Europe, US and Asia. They work as professional consultants, in managerial positions and in the workforce. Compared to western countries where the education levels among professionals are similar, here it is quite different. Here there is a cultural imbalance, which is not a problem but it is different. So you can’t just transfer what is done in the UK here.”

Palfreyman says that this barrier must be spotted earlier on, and dealt with immediately. He says that the most effective way to solve this problem

would be putting in place training programmes and knowledge transfer programmes, so that everyone gets up to the same level.

He says: "It could be as simple as making a person experienced in using BIM work with someone who has less experience.”

Apart from the diversity of the workforce in the Middle East, another point to consider would be how new the market really is compared to the UK and the US, where construction has been ongoing for centuries. Gertler admits that the UK and the US are probably the more mature markets in terms of the use of BIM solutions. However, he says that these markets have their own issues of dealing with aging infrastructure and legacies. Whereas in the Middle East, there is no burden of dealing with a 100 year old legacy. In fact, he says that the rate of adoption is much faster in this region compared to the West as there a lot more emerging companies here.

Mature markets like the US and the UK have passed BIM mandates that seem to help in accelerating the adoption of BIM solutions. But experts don’t believe that mandating BIM solutions in this region is the right approach.

Palfreyman says, that there are examples of countries where governments have imposed BIM, and there are examples where governments have recommended BIM as best practice.

The reaction to mandating and recommending are very different depending on the experience the region has with BIM. “For example,” he says. “In an organisation, if a management team makes BIM a mandate without telling the company what it’s all about—it is going to meet with resistance.

“We should consider the people first, the process second and then the technology that makes the process possible.

Where we sit now is probably too early to say which approach is right. But what I can say is doing something is better than doing nothing for sure.”

Regardless of government regulation, the demand for BIM solutions in the Middle East is definitely growing.

Prof. Albani says that this growth is more prominent amongst construction

Chris Palfreyman

Adrian Jarvis

Prof. Alex Albani

Peter Gertler

companies than architects.

“The benefits in terms of efficiency and cost are key reasons.”

“Eventually everyone will have to work in the BIM format, especially now after the UAE mandate as well as some other countries mandating BIM policies like the UK.” The mandate in the UAE was announced last year by the Dubai Municipality. The mandate enforces the use of BIM for architectural and MEP works for all buildings 40 stories or higher, facilities or buildings that are 300,000 square feet or larger, all hospitals, universities and other similar specialised buildings, and all buildings that are being delivered by or through an international party.

Prof. Albani says, “In the UAE, the mandate is for everybody, everyone involved in building a building.”

Though BIM is talked about in the region and is gaining popularity at a rapid pace, one of the main problems that needs to be addressed immediately is the lack of knowledge about what BIM really is. Adrian Jarvis, General Manager at FSI, says, “BIM is misunderstood to be just one piece of technology. It is actually a collaboration between various technologies through a project’s lifecycle.”

He says that the key issue faced in this region is the awareness level of the professionals. “People say they are going to ‘BIM-ify’ your building without actually explaining the benefits or the process of BIM. So even though there is a lot of talk about BIM, there is no real understanding of what it entails.”

Palfreyman says that the biggest barrier is not working out what BIM means to you. “If you don’t consider the process before you plan to implement BIM, what you probably would do is create your own barrier.”

He says that first they should understand what BIM really is and then how it applies to them. “This is like taking the crawl, walk, run approach. Everyone needs to crawl before they can walk and eventually run.

“In regards to BIM, I think it is understanding the process before going out and buying it. The intelligent technology choices would come out of understanding the process.” construction business news me APRIL 2015 51

CONSTRUCTION MACHINERY

World truck enters GCC market T

Indian motor company breaks into the region with a brand new design and advanced technology that competes with global standards

ata Motors, one of India’s largest automobile manufacturer, launched two new next-generation heavy duty trucks in Dubai in March this year. The manufacturer along with UAE dealer-partners, United Diesel and Dalma motors launched the Prima range of commercial vehicles including the Prima 4438S (4X2) tractor head and the Prima 4038K (6X4) Construction tipper.

The Tata Prima range claims superior technology, optimum power, fuel

The Tata Prima Construction Tipper

52 construction business news me APRIL 2015

efficiency and safety. RT Wasan, Head of International Business of Commercial Vehicle Business Unit at Tata Motors, says: “We observed specific regions separately, to see what the requirements and operations of these regions are and thus provide optimal solutions through our trucks.”

He explains that these trucks are specifically designed for the Middle East, the tonnage capacity of the truck is much heavier in the UAE compared to other markets. “This is because there are less

restrictions in UAE regarding heavy overloads compared to other countries such as South Africa. Thus the Prima is designed for South Africa is very different from the Prima designed for the UAE here.”

Apart from the mechanics of the vehicle, the range also focuses on driver comfort. The cockpit is both functional and visually ergonomic with a separation in terms of the working and living area.

Wasan says, “We have consciously considered the ergonomics, not just for the driver but also for co-driver.

A driver spends his life inside the truck—more than 70% of his time is spent in it. Hence it must be designed for optimal comfort.”

Ravindra Pisharody, Executive Director of Commercial Vehicles Business Unit at Tata Motors, says, “The new range of commercial vehicles by Tata Motors is shaped by technology, know-how and expertise from across the globe.” It is built with technical inputs from across the world; with an Italian cab design, American and European engine technology, gearbox expertise from Germany, chassis frame know-how from Mexico, sheet metal dies from Japan and Korea, and Swedish precision on a robotic weld line, hence branding itself as a “world truck”.

20th-21st April 2015, Dubai

Leaders in Architecture Events Series International Speakers CHRIS JOHNSON RIBA, ARB-Managing Principal, Gensler

MOHAMED AL ASSAM Executive Chairman, Dewan Architects

SIMON MOON CEO, Atkins Middle East

HARRY DOWNIE CEO, RMJM International

STEPHEN JOHNSON President, Cannon Design International

CHARLES DALLUGE President, DLR Group

LEONARD CASTRO Senior Vice President, Business Leader - Buildings, Stantec

IAN APSLEY Main Board Director, Broadway Malyan

STEPHEN REDFERN President, Kuryłowicz & Associates

SHAWN BASLER Principal and Executive Director, Perkins Eastman

JAMIL JADALLAH MD and Principal, National Engineering Bureau

MICHAEL FOWLER Managing Director Middle East, Aedas

STEVEN CHARLTON Prinicipal Managing Director, Perkins+Will MENA

BRIAN JOHNSON Principal and Managing Partner, Godwin Austen Johnson

MUFADHAL ABBAS SHKARA Senior Vice President & Board Member, Zuhair Fayez Partnership

DANIEL HAJJAR Senior Vice President and Managing Principal, HOK

RALF STEINHAUER VP Hospitality MENA, RSP Architects

SIMON THOMAS Vice President, Middle East and North Africa, HKS

STEPHAN FRANTZÉN Group Director, P&T Group

SIMON FRASER MD Middle East and Asia, Hopkins Architects

MARK POWELL KYFFIN Head of Architecture, Abu Dhabi Tourism & Culture Authority

PEDRAM RAD Managing Director, U+A Architects

PROF. SHAMS ELDIEN NAGA Founder, Director, NAGA Architects, Designers & Planners

PHILLIP JONES Principal, Managing Director – Middle East and North Africa, B+H Architects

ELIE GEBRAYEL Chairman/CEO, Erga

NASSER ABULHASSAN Principal, AGi architects

TIM MAKOWER Founder, Makower Architects

.

Leaders in Architecture Events Series Partners

COMMENT

Let’s Be Faithful… ish You may have heard of the legal principle of good faith, which is a Sharia Law principle that is recognised in many legal civil codes across the region. The regional construction industry often relies on the idea that good faith will protect it from a contractual deviance; let’s consider if it can.

Craig Gibson writes

54 construction business news me APRIL 2015

I

f you have worked in a civil code jurisdiction, such as UAE for example, the construction contract is in line with the country’s legal system. However, the parties involved on site conduct their businesses fairly autonomously. The issue we have is understanding how empowering the principle of good faith is in the event of a dispute.

A good place to start is perhaps the condition precedent to many claims under construction contracts in the region: that is the building contractor’s requirement not to arouse contractual time-bar mechanisms.

Time-barring is the rejection of a claim based on the failure to submit a notice of intent to claim, followed by its detailed particulars within a prescribed number of days. The notice serves as the employer’s liability to the contractor; so if you work for a contractor, this notice is your friend.

Each circumstance is different, so the parties and their conduct, the value at stake and the complexity of the claim will have a big say in whether the execution of a time-bar

clause as defence to a claim is considered to uphold the principle of good faith. For example, if a claim based on complex calculations is presented a few days late, and a reasonable valuation could fairly compensate the contractor, it would be difficult to suggest good faith has been honoured by the employer in refusing to consider the contractor’s claim.

Likewise, the employer could not reasonably reject a claim which was not submitted on time, particularly if he was timeously aware of any reason giving rise to a claim and did not suffer any great loss because of it.

Let us consider the Sharia Law informed Egyptian Civil Code as a tool in evaluating the reasonableness of enforcing a time-bar. The Egyptian Civil Code states it is unlawful to exercise a legal right if: (a) the sole aim is to harm an other person, (b) the benefit is disproportionate to the harm caused to the other party, or (c) the benefit is unlawful.

If you are contemplating enforcing a time-bar, or have had a claim reject-

“The notice serves as the employer’s liability to the contractor; so if you work for a contractor, this notice is your friend.” ed on the basis of a time-bar, consider the above as a practical barometer of good faith. This is because in the majority of civil law jurisdictions, the court can, taking stock of the circumstances, engage its own judgement as to whether the contractual mechanism to time-bar a claim has been exercised in good faith, or not.

Ultimately, despite the civil codes requiring good faith, it is very difficult to convince a court or arbitral tribunal that it would be fair to award additional time and/or money to the contractor despite him not complying

with the written terms of the contract.

And that is the kind of complex legal argument one would have to succeed with in order to overcome a time-bar clause on the basis of good faith.

So, back to my comment that the notice is the contractor’s friend: The contract will hold the employer liable to his contractor for claims he can substantiate if presented on time.

But relying on good faith at civil law level is ones last option; best practice is to uphold your side of the contract and not worry about how faithful the other side is. As a contractor, this provides for more time to substantiate your claim, which is much more important. Industry professionals will help guide you with all of the above.

Craig Gibson, MRICS MCIArb MScL LLM Pg. Dip. Law BSc (Hons) – Omnium International. He is dual-qualified in law and quantity surveying. A Chartered Surveyor with experience of ICC and DIFC arbitrations and a passion for simplifying conflict. construction business news me APRIL 2015 55

c i r t c e l E lief e r

EVENT PREVIEW

CBNME takes a look at the longest running exhibition in the UAE and speaks with power industry experts to analyse new technologies and innovations

German and Romanian pavilions at the MEE 2015

56 construction business news me APRIL 2015

Himoinsa and Rolls Royce stands at the MEE 2015

L

Visitors at the MEE 2015 in Dubai World Trade Centre

aunched in 1975 under a tent near Dubai Creek, Middle East Electricity (MEE) is UAE’s longest standing exhibition completing 40 years this year. Currently, the event spreads across 54,000 square metres in the Dubai International Convention and Exhibition Centre. The exhibition and conference ran for three days from March 3.

The show has also grown by 14% in exhibitor numbers, taking the total number to 1,400. Informa Energy Group’s Director Anita Matthews, organiser of the event, reveals the secret behind its success are the “stakeholders.”

She says: “I don’t use the term lightly when I say ‘stakeholders are key’, and one of the main drivers of the event’s success has been maintaining our focus regarding the expectations of our stakeholders.”

With power demand in the Middle East increasing exponentially there are billions of dollars being invested in the sector.

Matthews adds: “The substantial growth across the board in our country pavilions construction business news me APRIL 2015 57

EVENT PREVIEW

Catepillar’s stand at the MEE 2015

is an indication of the lucrative opportunities the region holds for the global energy industry.”

The event encompasses exhibitors from various regions that are segregated through country pavilions. Matthews says: “As well as this significant growth in exhibitor numbers, all of the country pavilions have returned with a bigger presence this year – Saudi Arabia and Turkey being the largest. With support from the Saudi Export Development 58 construction business news me APRIL 2015

Authority, the Saudi pavilion has grown from 252 square metre in 2014 to 780 square metre this year, an astonishing 210% growth. Turkey has witnessed an increase of 78%, going from 987 square metre in 2014 to 1761 square metre.”

She adds: “Three new national pavilions have also been introduced including Egypt, Morocco and Czech Republic, increasing the total country pavilion count to 24.”

Apart from exhibitions, the event also

included conferences running throughout the three days. Co-located with Solar Middle East and Lighting Middle East, the event focussed on a broader energy mix.

The Green Energy Conference, held on the first day of the show, highlighted the why we need sustainable energy solutions urgently and how we could combine traditional and alternative energy sources. These kinds of hybrid systems are the best way to minimise risk and incorporate sustainability.

According to Angus Jackson, Director of Business Development for Planetary Power, hybrid technology bridges the gap between modern and traditional energy sources, producing economical and sustainable technology. The growing importance of hybrid systems in several sectors were highlighted throughout the show.

Among the wide range of exhibitors, Al Futtaim Auto & Machinery Co. (FAMCO), industrial equipment supplier, unveiled new technology in power generators in the region by launching the Himoinsa hybrid generators.

The Himoinsa hybrid generator will be available through official distributor, FAMCO, in UAE, KSA and Qatar.

Guillermo Elum, Sales & Marketing Director at Himoinsa, says: “This region is extremely significant, it is the fastest growing market in the world. We have over a thousands of units working in the Middle East. Our units are the strongest in the construction and telecom industry.”

The hybrid generator saves up to 40% in fuel consumption compared to a standard generator. In comparison to other hybrid generators in the market, this generator consumes 20% less fuel.

It includes variable speed Yanmar engines that are redesigned to operate from 1200 to 3000 rpm. The engine comes with maintenance intervals of 1000 hours i.e. the generator can run effectively, without maintenance, for four months.

Terry McGuire, Regional General Manager at FAMCO International, says: “I am excited about the new hybrid generator. Before the high cost of power generation wasn’t a problem in

this region but as the oil price drops things are different. It is becoming more apparent to use sustainable and energy efficient products to cut costs.”

Caterpillar also launched its largest range of electric power products, the Cat Compact International product line, which will be available across the Middle East. The product line is powered by Cat diesel engines, with the Cat Compact International diesel generator offering a selection of weather-protective and sound-attenuated enclosures. Each enclosure is manufactured with corrosion-resistant galvanised steel components and finished with scratch- and-rust-resistant powder-coated paint, along with highgrade thermoplastic components.

The show also showcased products by Rolls-Royce such as the MTU Onsite Energy and Bergen Engines. The company showcased high and medium speed diesel and gas gensets in the 24 kWe to 9,400 kWe range. MTU Onsite Energy and Bergen Engines are part of Rolls-Royce Power Systems within the Land & Sea division of Rolls-Royce.

Matthias Vogel, Head of Power Generation Business at Rolls-Royce Power Systems, says: “We see great market potential in the Middle East which is why we have now strengthened our on-site presence with a new regional subsidiary based in Dubai.”

MTU Onsite Energy presented its range of highspeed diesel gensets up to 3,250 kWe and gas engine systems up to 2,530 kWe. The stand displayed a diesel genset based on the new generation of MTU Series 2000 engines. Offering common rail technology and delivering up to 1,120 kWe, the new genset is quieter, more efficient and more compact than units previously available.

Its power range is also around 12% greater than that of its predecessor.

CESI, provider of technical consulting and engineering, also participating at the MEE. The company showcased Mannheim Laboratory, which was basically its facilities in Mannheim for independent tests by the National Grid Saudi Arabia and the Saudi Electricity Company (SEC). The new lab is based on world-class technologies for testing

H.E. Eng Abdulla Mohammed Rafia, Assistant Director General at Dubai Municipality, opens the Green Energy Conference Himoinsa hybrid generator

Currently there are 1.3 billion people in the world who do not have access to electricity, 600 million of whom are in Africa.

H.E. Eng Abdulla Mohammed Rafia, AssisDirector General at Dubai Municipality, opens the Green Energy Conference

This year recorded a 40% increase in visitor attendance over the past two years and acquired 21% extra floor space

The growing MENA power industry is forecasted to expand

by US$70.7 billion per year leading up to 2018.

Dubai's renewable energy target which has tripled from 5% to 15% of total share from renewables in the energy mix by 2030.

cables, components and innovative systems for High Voltage Direct Current (HVDC), a strategic asset for long distance energy transmission.

Matteo Codazzi, CESI's CEO, says: "As more and more countries adopt HVDC technology, a technology already utilised among many European transmission operators, we will be able to reduce energy losses and improve interconnectivity within the region."

Recognising the importance of HVDC technology to the region, key entities like the GCC Interconnection Authority and SEC have established a specialised working group that focuses on developments in the GCC. Cummins Power Generation Inc., also launched game-changing QSK95 Series high-horsepower generator set. Rated at up to 3.5 MW, it is Cummins most powerful diesel generator set to date.

In Western Australia, the QSK95 generator set is said to support round-theclock production at Cloudbreak mine, one of the largest iron ore mines in the world. While in the remote township of Turbah, Saudi Arabia, the entire community is benefitting from the additional power and performance provided by the QSK95, which was installed at the existing power plant. It has proven to be the perfect fit alongside the other 71 Cummins Power Generation generator sets at the site, demonstrating impressive fuel consumption, power density, maximum uptime and reduced operation and maintenance costs. construction business news me APRIL 2015 59

SAVE THE DATE

Upcoming events

This month, we pick the latest and most sought-after exhibitions, conferences and seminars coming up in the construction industry Cityscape Abu Dhabi

21 – 23 April 2015 Abu Dhabi National Convention Centre, UAE The event is an annual meeting point for governmental authorities, key investors, developers, consultants, architects, designers and other professionals to drive growth in Abu Dhabi’s real estate market. The event will have over 15,000 participants and is used to reveal Abu Dhabi’s master plans and key developments.

Smart Skyscraper Summit

11 – 12 May 2015 Sofitel Dubai The Palm Resort & Spa, UAE With over 300 senior architects, engineers, policy-makers, developers, contractors and building managers attending from across the GCC, Smart Skyscraper Summit offers a platform for networking and knowledge sharing required for developing world-class skyscrapers in the Middle East. It will also showcase some of the most innovative building technologies, design principles and solutions from around the world and offers high-level networking opportunities.

Cityscape Qatar

11 – 13 May 2015 Doha Exhibition Center, Qatar Like Cityscape Abu Dhabi, Cityscape Qatar is dedicated to the 60 construction business news me APRIL 2015

Dubai World Trade Centre

real estate industry and features the presence of wide variety of products and services. The event includes industrial goods and services, real estate services and solutions, and commercial products and services.

Emirates Green Building Council Awards

13 May 2015 Al Murooj Rotana Hotel in Dubai, UAE Emirates Green Building Council honours excellence in sustainability initiatives by organisations and individuals from across the MENA region at the EGBC 2015 Awards. This year’s awards will highlight the efforts by the different types of buildings and sectors to green their facilities and operations.

FM Expo

18 – 20 May 2015 Dubai World Trade Centre, UAE The FM Expo is co-located with Middle East Waste & Recycling and Commercial Cleaning & Hygiene and Elevators & Access Control. The Expo will unite FM professionals from across the region with suppliers and experts from integrated FM providers, waste management, elevator products and solutions, maintenance and environmental services, to IT solutions and health and safety products.

Middle East Stone

18 – 21 May 2015 Dubai World Trade Centre Middle East Stone will present the largest selection of marble, stone and ceramic products in the region. The technologies will range from machinery to complex processing equipment. The event will serve as a platform to discover products that save money, energy, reduce CO2 emissions and minimise waste.

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EDITOR'S PICK

Smart solutions Dubai Electricity and Water Authority (DEWA) launches the first smart initiative, Shams Dubai, to make solar energy available to all buildings in Dubai

A

t a local press conference on March 15, H.E. Saeed Mohammed Al Tayer, MD & CEO of DEWA announced their first smart initiative, Shams Dubai, to regulate the generation of solar energy in buildings and their connection to DEWA’s grid. The initiative encourages tenants and building owners to install photovoltaic solar panels to generate electricity. While DEWA will connect the system to its network. Any place in Dubai could be connected to the grid, explains Al Tayer.

“Any customer who wishes to be connected to the grid, can.

“The service is available to all devel-

62 construction business news me APRIL 2015

DEWA solar press conference

opers and though it is optional, I think companies should take this initiative as it goes in line with our vision for a clean city.”

He says that initiatives such as Shams Dubai helps establishing a culture of sustainability by encouraging customers to produce clean power.

He adds: “Customers can use the electricity they generate using photovoltaic panels. An offset between exported and imported electricity units is conducted and the customer account is settled based on this offset.”

Earlier last month, DEWA announced the first project under the initiative, in collaboration with Dubai Airports, to supply Dubai World Central - Al Maktoum International

Airport in Jebel Ali with solar energy.

Al Tayer says: “The first step in implementing the initiative was installing photovoltaic panels to produce 30kW of electricity there.”

Shams Dubai has been launched with the full support of the UAE government and private organisations. It is the first smart initiative out of the three launched last year to make Dubai the smartest city in the world in the next three years. DEWA’s second upcoming smart initiative is to install smart meters and networks that contribute to fast-service connection and rationalise energy use. The third initiative will establish the infrastructure to build 100 electric vehicle charging stations, which DEWA calls the Green Charger.

H.E. Saeed Mohammed Al Tayer, MD & CEO of DEWA

Display of historical artifacts inside Dubai Museum

It is, without doubt, one of the harshest environments on earth: the Empty Quarter in the Kingdom of Saudi Arabia – the largest and most barren sand desert in the world, spreading itself over four Arab nations and covering 650,000 km2 which is comparable in size to France. Temperatures range from 50° to -1°C in the course of a single day and the sand and dust are relentless. The nearest city is 1000 kilometres away. So the construction of the road cutting through the desert, linking Saudi Arabia to the Sultanate of Oman, called for an extraordinary solution.

The response: a eet of 95 Volvo machines was assembled. Together, they shifted over 130 million m3 of sand just to build the bridge of the road – an extraordinary feat in such harsh conditions, yet the quality and power of Volvo engineering was up to the challenge. The difculties created by the remote isolation of the worksite were answered with excellent customer support from FAMCO, the authorised Volvo dealer in Saudi Arabia, which included the organisation of mobile 24/7 service workshops that moved forward with the construction operation. Discover a new way. www.emptyquarter.volvoce.com Watch video

Exclusive distributor of Volvo Construction Equipment in the UAE and Saudi Arabia Al-Futtaim Auto & Machinery Co. LLC United Arab Emirates: 800 32626 Saudi Arabia: 800 1244414 e-mail: famco@alfuttaim.ae www.al-futtaim.com

www.famcosaudi.com

www.famcouae.com