Big Project ME February 2020

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February 2020

MEConstructionNews.com

THE BUSINESS OF CONSTRUCTION

Waterfront Vision BIG PROJECT ME HEADS TO ABU DHABI TO VISIT AL QANA, THE UAE CAPITAL’S LATEST ENTERTAINMENT AND LEISURE DESTINATION

1

CONTENTS

February 2020

08

16

20

24

34

52

ANALYSIS

FEATURES

INSIGHT

08

The briefing

24

40

Comments

The big picture

Big Project ME speaks to SNC-Lavalin’s senior VP - Resources for MEA and Asia Pacific about the business adapting and evolving in a supremely competitive environment

46

Show Preview

48

Tenders

52

Progress report

Industry experts discuss how technology aids smarter construction and water management in the Middle East

12

Providing a wrap-up of the biggest local, regional and international construction news stories

16

Market report

20

News analysis

ProTenders report looks at Saudi Arabia’s construction market amid billion-dollar contracts expected to be awarded in 2020

Virgin Hyperloop One’s Harj Dhaliwal on how its transportation technology can power an off-grid system in the Middle East

In profile Michael Dunn

34

Project profile Fulfilling a Vision

Big Project ME visits Al Qana, an upcoming waterfront destination located in Abu Dhabi which is set to establish the emirate as a key player for business, lifestyle and entertainment

The industry’s brightest minds share their thoughts on a variety of topics and issues impacting the construction industry

Middle East Energy returns for its 45th edition from 3-5 March 2020 at the Dubai World Trade Centre

Big Project ME, in association with ProTenders, provides the biggest tenders for the month of February 2020

Third phase of the MBR Solar Park will be operational by April 2020, with a 300MW capacity

MEConstructionNews.com | February 2020

2

WELCOME

Introduction

Building for the future

L

ooking around the GCC region, it’s clear to see that there has been an increased focus on creating entertainment and lifestyle destinations, with dozens, if not hundreds, of major projects announced in various countries. Saudi Arabia is a prime example of this shift, with several high-profile projects coming up in the Kingdom, which would have been unthinkable just a few short years ago.

What’s interesting about these types of projects is that they’re indicative of a shift in mentality amongst developers and governments in the region. While the emphasis has previously been on developing retail, residential and commercial projects, it seems like developers have finally realised that people need places to go to that aren’t just shopping malls.

This is why we’re now seeing investment into projects like our cover story this month – Al Qana, which bills itself as Abu Dhabi’s

February 2020 | MEConstructionNews.com

first leisure and entertainment destination.

Offerings include the Middle East’s largest aquarium, a lifestyle and wellness hub, and a virtual reality zone, alongside more traditional offerings such as F&B and the largest stand-alone cinema in the UAE capital.

Given that the MENA region’s population is expected to double in size during the first half of the 21st century, major changes in the population age structure are to be expected. Adolescents and youth populations in almost all countries in the region are expected to increase, which in turn expands the share of the working-age population.

Thus, given the right investments and opportunities, the working-age population will be left with more disposable income, which in turn spurs greater consumption, production and investment. This affords savvy developers and governments a massive opportunity – by creating destinations such as Al Qana, not only will they be diversifying their portfolios and economies, but they’ll also be tapping into a powerful force of change, which will help build a prosperous and stable future.

Gavin Davids

GROUP EDITOR gavin.davids@cpitrademedia.com @MECN_Gavin MEConstructionNews me-construction-news

4

Licensed by Dubai Development Authority

167

February 2020

MEConstructionNews.com

THE BUSINESS OF CONSTRUCTION

Group MANAGING DIRECTOR Raz Islam raz.islam@cpitrademedia.com MANAGING PARTNER Vijaya Cherian vijaya.cherian@cpitrademedia.com

Editorial

Waterfront Vision BIG PROJECT ME HEADS TO ABU DHABI TO VISIT AL QANA, THE UAE CAPITAL’S LATEST ENTERTAINMENT AND LEISURE DESTINATION

ON THE COVER

Big Project ME vists the Al Qana construction site in Abu Dhabi to find out how work is progressing on the UAE capital’s latest entertainment and leisure destination MEConstructionNews.com @meconstructionn MEConstructionNews me-construction-news

GROUP EDITOR Gavin Davids gavin.davids@cpitrademedia.com +971 4 375 5480 JUNIOR REPORTER Angitha Pradeep angitha.pradeep@cpitrademedia.com +971 4 375 5479 SUB EDITOR Aelred Doyle aelred.doyle@cpitrademedia.com

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The publisher of this magazine has made every effort to ensure the content is accurate on the date of publication. The opinions and views expressed in the articles do not necessarily reflect the publisher and editor. The published material, adverts, editorials and all other content are published in good faith. No part of this publication or any part of the contents thereof may be reproduced, stored or transmitted in any form without the permission of the publisher in writing. Publication licensed by Dubai Development Authority to CPI Trade Publishing FZ LLC. Printed by Al Salam Printing Press LLC. CPI Trade Media. PO Box 13700, Dubai, UAE. +971 4 375 5470 cpitrademedia.com © Copyright 2020. All rights reserved.

February 2020 | MEConstructionNews.com

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6

ONLINE

MOST POPULAR

READERS’ COMMENTS

FEATURED

CONSTRUCTION

HOW WE CAN ATTRACT AND RETAIN TALENT WITHIN THE UAE’S CONSTRUCTION MARKET

Work begins on multiple municipal service projects in Bahrain

Anyone in the industry knows that we have a problem with staff retention but I’ve never seen a statistic as stark as four workers are leaving for every one that joins

CONSULTANT

(How we can attract and

Water security and digitisation high on Acciona’s agenda at WFES

retain talent within the UAE’s construction market).

Holding onto our labour isn’t a problem unique

Interview: We need to empower SMC firms, says UAE BIM’s AbouAlfa

to the region. In fact, the western world has a major problem in recruiting young people into construction which is why the migration

CONSTRUCTION

of workers has become

RTA to leverage drones for inspection of Dubai Metro tunnels

a political hot potato in some countries. Clearly the environment here is tough on-site and the salaries relatively inferior to some other regions, but we really need to be upskilling our workforce and supporting them with

MACHINERY

training and better health

Mammoet installs 740t reactor at Sohar refinery

facilities. Offering not just a salary but an opportunity to maximise the potential of everyone on site will benefit your business and could be the start of a mature labour market here which will help the industry

CONSTRUCTION

W Motors begins construction of $100m facility in Dubai Silicon Oasis February 2020 | MEConstructionNews.com

Earthmoving Report: Al-Bahar introduces Caterpillar’s game changers

as a whole in the long term.

Name withheld by request

— Smarter Building Imagine the building of tomorrow shaped by ABB Ability™ technology of today. We are working together to create workplaces where anything is possible. Through intelligent and automatic lighting, air-conditioning, heating and movement detection, we make greater energy efficiency and increased security easier than ever. With digital solutions everything can even be controlled remotely, giving you complete control wherever you are, whenever you need it most.

Discover more at new.abb.com/middle-east

8

THE BRIEFING

Technology

A Smarter Network

MIDDLE EAST

Francois Frigaux, regional director at Sensus, explains the drive behind implementing smart water management in the Middle East and how data and AI will help address the inefficient utilisation of water in the region

A

s cities are becoming more intelligent, there is an increasing trend for comprehensive management of natural resources, and the use of data and artificial intelligence to help the environment has become a cornerstone of digitally enabled cities. However, production of water is a resource-intensive process and any leakages will have a higher net impact on the overall ability to run a smart water network, due to the climatic conditions in the Middle East.

Francois Frigaux, regional director at Sensus, joins Big Project ME to decode smart water management and the challenges facing the water sector today in the Middle East.

“We are seeing a renewed drive for localisation, with governments focused

February 2020 | MEConstructionNews.com

on achieving national visions and the Middle East region shining a spotlight on forward-thinking smart city initiatives.

In the past, outdated infrastructure, inefficient utilisation and resource management have caused problems,” he says. “Today, however, with sustainability being a key pillar of the UAE’s National Agenda 2021, Saudi Arabia’s Vision 2030 and a key priority for other utilities and governments across the GCC, we are seeing greater emphasis being placed on the integration of smart solutions, to guarantee optimal asset utilisation.”

He points out that by providing accurate intelligence collected using next-generation analytics, utilities have been able to achieve improved water consumption measurement, leakage detection, real-time data analytics and better water distribution management.

2030

Sustainability is a key pillar of national agendas, such as Saudi Arabia’s Vision 2030 and the UAE’s National Agenda 2021

9

Accurate data The more accurate the data, the more precise the analysis of the network, and the ability of the network to determine water wastage or leakage.

All-round solutions Employing intelligent solutions in water networks helps reduce energy consumption and costs, contribute to lower emissions, and improve operational efficiencies.

All are key in protecting against potential issues or intervening ahead of time to reduce non-revenue water loss (NRW) and ensure that less water is wasted.

Nonetheless, Frigaux adds that there are several strategies being implemented across the region, with priority being given to the way that water is consumed.

While progress has been made, he says there is still a lot left to do.

“With ageing utility infrastructures as well as inaccurate and inefficient utilisation and resource management continuing to be an issue in some areas, the two main challenges, in my opinion, that need to be addressed are gathering accurate data and getting that data on time,” he explains.

“The more accurate the data, the more precise the analysis of the network and the ability of the network to determine how much water is being lost due to leakages or any other reason that may present itself. Real-time data and intelligence will aid in effectively monitoring water consumption behaviours or discrepancies and fix the issue well in time, ensuring more water is not wasted.”

Soaring NRW rates, the prevalence of contaminants and rising energy costs are other significant challenges. “Smart water solutions – including physical equipment and treatment, wireless network cloud analytics, mobile computing, powerful data modelling and the Internet of Things – offer new ways to address the industry’s challenges and opportunities.”

Frigaux asserts that these are not prototypes being tested in a laboratory but proven solutions that are already delivering dramatic improvements in water productivity, quality and resilience.

“These intelligent solutions reduce energy consumption and costs, contribute to lower emissions, and improve operational efficiencies, all of which can help utilities better afford investments in clean water and wastewater infrastructure.”

To this end, Sensus has launched intelligent solutions that address the water industry’s most persistent problems. Frigaux points out that Cordonel, a product designed by Sensus, has enabled water utility networks to draw on rich real-time data for unprecedented insights into water usage.

Data is the most important factor in addressing effective consumption, distribution and preservation of water, and a smart water network enables utilities to make decisions based on in-depth data collected using advanced analytics” “This will ultimately help users to achieve higher savings through close monitoring of consumption patterns as well as other influencers in the distribution network. These advanced

technologies and expertise enable us to better partner with our customers to address their infrastructure pain points, while enhancing the economics of their water and wastewater operations.

“In recent years, we have seen an increased push by Middle East utilities seeking public-private partnership for a variety of water and power projects, in a bid to cut their capital expenditure. By opening up the market to private stakeholders, the industry will see the benefits of scaling up power desalination plants,” he asserts, adding that this will improve production reliability and bolster competition.

He explains that as demand for water rises in the GCC, regional governments are laying down the foundations to attract the investment needed to meet these requirements.

“In Saudi Arabia, where we’re seeing unprecedented transformation, we’ve been engaging with the Neon project.

Across the GCC, we’re also continuing our work with leading utilities to help make their smart city initiatives a success.”

MEConstructionNews.com | February 2020

10

THE BRIEFING

Cloud Connections MIDDLE EAST

Big Project ME sits down with Sherief Elabd, director of Industry Strategy and Innovation at Oracle Construction and Engineering, to discuss Oracle’s role in boosting digital transformation in the AEC industry

February 2020 | MEConstructionNews.com

O

racle, the international technology corporation, returned to Dubai for the second time in January with its technology-driven event Oracle OpenWorld, focused on sessions led by customers and partners sharing their thoughts and products on leveraging technology for transformational change.

Big Project ME caught up with Sherief Elabd, director of Industry Strategy and Innovation at Oracle Construction and Engineering, to talk about the organisation’s role in cloud technology, the applications of its Innovation Lab, and the region’s maturity level when it comes to adopting emerging technology in the AEC industry.

“We are glad as the Oracle CEGBU to be at this event, because it’s all about

our customers. We are showcasing all the innovations, technologies, use cases and customer stories from across different countries to this part of the world.

Additionally, we are making sure that we have tailored it to the specifics of this region, its regulations, the status quo and the market advancements that we are seeing in the Middle East,” says Elabd.

Across two days, Oracle OpenWorld showcased the possibilities of a datadriven world, from leading cloud technologies to autonomous tech that is fundamentally driving new business models and creating new business value. Elabd explains that besides the annual event, the organisation is committed to its customers through customer engagement and bringing innovation to the AEC industry.

11

Relevant solutions Oracle tries to bring relevant solutions to all stakeholders, so as to inspire them to embrace technology and move forwards.

2018 Year the

Construction and Engineering Innovation Lab opened

“We have a team of expertise across every cycle, from customer engagement and pre-sales to educating clients and making sure that they get the best implementation partner to understand their processes and translate, design and configure their solutions, and postcustomer experience as well. We also try and bring all the relevant solutions to all our stakeholders – be it project owners, contractors, consultants – and that they are inspired to take the lead and move forward into embracing technology, collaboration and user adaption.”

Additionally, the Oracle Construction and Engineering Innovation Lab is an 1,858sqm space that opened in late 2018.

It allows visitors to experience different stages of construction work and test new technologies and training techniques, and provides a simulated job-site encounter.

“We have one central lab to start with, in Chicago, for which we have started phase two of its expansion plan.

Since it’s called the Innovation Lab, we wanted to make sure that the lab is being built using the latest technologies in construction and that it is sustainable.

It’s going to be equipped with 5G network and will be AI-enabled, so it will be a smart innovation lab,” explains Elabd.

“The plan is to have different hubs in different parts of the world responding to market demands; right now we are focusing on Australia and EMEA. Hubs are not much different from labs – labs are bigger and will have a sizeable audience, but both will have the same technologies.

In addition, certain things will be live streamed from the main Innovation Lab to the hub. Otherwise, hubs will have technologies and hardware in place which will showcase all the integrations that we have built into our solutions.”

Elabd further states that the idea is to expand the Oracle partner network for companies that excel and specialise in specific product innovation. “The whole point around embracing innovation in the construction industry is to boost performance, and that includes the performance of workers on-site, to material delivery, to complex projects and just-in-time installation works,” he asserts.

“Another advantage of the Innovation Lab is that we can hear back from our

The whole point around embracing innovation in the construction industry is to boost performance, and that includes the performance of workers on-site, to material delivery, to complex projects and just-in-time installation works” customers and the wider community within Oracle; hence, whenever we spot a new technology that has a new use case, we take it into our R&D and process it. So my advice for companies embarking on the digital transformation journey is to plan for it and spend some time identifying the

stakeholders within the organisation that they can start this journey with.

“For instance, we have a project progress-monitoring application that we have developed with one of our innovation partners, Triax, that automatically collects and transmits location, utilisation and safety data via the cloud network that can be accessed through any smartphone application. Innovations such as these encourage collaboration and integration,” explains Elabd.

He is quick, however, to point out that digital automation is not about selecting the best software available in the market; the key here is people.

Elabd notes that adopters of technology are coming from the private sector rather than the public sector, and that it is project owners that are keen to begin this journey.

“Ten years ago, talking about cloud was not very appealing to our customers, but now we are seeing artificial intelligence and a lot of software and systems using artificial intelligence, which is a really big key in our development of data and analytics, future scheduling and product control solutions,” he concludes.

MEConstructionNews.com | February 2020

12

THE BIG PICTURE

01 NORTH AMERICA

03 UNITED KINGDOM

Eagle LNG to build export facility in Florida

Salboy to deliver $390m mixeduse project

Liquefied natural gas (LNG) supplier Eagle LNG has selected Matrix Service as the EPC contractor for the construction of the Jacksonville LNG Export Facility in Jacksonville, Florida.

Costing $500m, the new LNG export facility will have a production capacity of 1.65m LNG-gallons per day, with 12m LNG-gallons of storage plus marine terminal and truck-loading capabilities.

The new Jacksonville LNG Export Facility will act as a cost-effective proximal LNG source loading LNG onto small oceangoing vessels for export in the Caribbean.

02 SCOTLAND

GE to deliver wind energy to 375,000 homes GE Renewable Energy’s Grid Solutions business has been awarded a multimillion-dollar project for the design, supply, construction and commissioning of onshore and offshore wind substations for the Neart na Gaoithe (NnG) offshore wind farm, 12 miles off the Fife coast in Scotland.

Under the contract, GE is responsible for the turnkey delivery of all infrastructure within the perimeter, including ground works and civil construction.

NnG is expected to be fully operational in 2023, and to offset more than 400,000 tons of CO2 emissions annually.

UK property developer Salboy has formed a joint venture with Ask Real Estate to deliver the $390m Viadux mixed-use project in central Manchester. The scheme involves a 40-storey residential tower and a 14-storey office building that will offer 22,297sqm of grade A commercial space.

The scheme involves working around the existing tram line and grade II listed arches. It is planned to be completed in approximately three years, with work expected to start on-site in spring 2020.

Salboy’s partner construction firm, Domis, will undertake the construction.

04 FRANCE

06 MOROCCO

France’s Expo 2020 Dubai Pavilion makes headway

Imkan reveals $160m project in Morocco

Construction work has been progressing at a fast pace on Expo 2020 Dubai’s France Pavilion, with the team behind said it saying that structural steel erection activities under the first part of the construction work are now completed.

Located within the Mobility District, work on the ‘Light, Enlightenment’themed structure featuring 2,700sqm of solar photovoltaic panels began five months ago, according to the pavilion’s team. Construction activities currently in progress include formwork, rebar and concrete works on the tank walls.

February 2020 | MEConstructionNews.com

05 SWEDEN

Atkins wins $16m project in Sweden Atkins has won a $16m contract covering detailed design and construction support for a 3.1km rail tunnel in Sweden.

The tunnel, part of an expansion to the country’s 300km West Coast Line between Gothenburg and Lund, will run under the coastal town of Varberg.

The expansion of the railway has been underway since 2015, and approximately 85% of the line has been upgraded.

The project is being led by the Swedish Transport Administration and the contractor is the Swiss construction company Implenia. It is expected to be completed in 2025.

Abu Dhabi real estate developer Imkan has launched Le Carrousel, a mixeduse project on the corniche of the coastal city of Rabat in Morocco.

Spanning an area of over 100,000sqm, it will include an outdoor mall with more than 120 shops and restaurants, over 200 residential seaside apartments, a waterfront with 36 promenade shops, a five-star hotel and 12,000sqm of office space.

Le Carrousel is expected to create more than 1,100 jobs once it is fully operational.

The area will also be home to the new fivestar Le Carrousel Hotel, with 123 rooms.

THE BIG PICTURE

13

05

02 03

04

07 06 01 08

09

08 EGYPT

Masdar forms JV for renewable energy projects 07 TUNISIA

Tunisia to start constructing a 120MWp solar plant A consortium led by energy company NAREVA and France’s ENGIE Group has won an international bid for the construction of a 120MWp solar plant in Gafsa, Tunisia. It will be responsible for developing, designing, financing, building, operating and maintaining the PV plant over a period of 20 years.

Tunisia is engaged in an ambitious plan to build new renewable power generation capacity, with an objective to install 3,800MW by 2030, and the Gafsa plant is expected to supply more than 100,000 Tunisian homes with clean energy per year.

The UAE’s Masdar and Egyptian renewable energy provider Infinity Energy have announced the establishment of a joint venture company, Infinity Power, to develop utility-scale solar energy and wind power projects in Egypt and Africa.

The establishment of Infinity Power will catalyse further development in the region.

The European Bank for Reconstruction and Development recently committed to an investment of up to $60m in the form of capital increase in the company, to finance the development, construction and operation of renewable energy projects.

09 ETHIOPIA

Egypt, Ethiopia and Sudan draft dam deal Egypt, Ethiopia and Sudan have reached an initial deal on the filling and operation of what will be Africa’s biggest hydro-electric dam.

Following a meeting in Washington, DC, the three nations have agreed that the mega dam on the River Nile will be filled in stages during the rainy season.

The $4bn Great Renaissance Dam, which Ethiopia began constructing in 2011, is 80% complete.

The final deal is expected to be signed on 28-29 January, when foreign and water ministers from the three countries meet again in the US capital.

MEConstructionNews.com | February 2020

14

THE BIG PICTURE

17

15

10 14 11

12 13

16

10 KUWAIT

12 UNITED ARAB EMIRATES

Kuwait awards $102m contract for Al-Shadadiya Industrial Zone

Abu Dhabi begins infra project’s construction

China State Construction Engineering Corporation Middle East (CSCEC ME) has bagged a $102.3m infrastructure contract for Al-Shadadiya Industrial Zone, awarded by the main contractor of the project, Mushrif Trading & Contracting Co (MTCC). CSCEC ME’s scope of work for the project in Ahmadi Province involves roads, pipeline networks and other facilities. It is the first infrastructure project by the construction firm in Kuwait, and marks its entry to Kuwait’s civil and infrastructure market.

February 2020 | MEConstructionNews.com

11 SAUDI ARABIA

KSA completes first phase of mosque refurbishment programme As part of the first phase of the Mohammed bin Salman Project for Historical Mosques Renovation programme, 30 mosques in 10 regions of Saudi Arabia have been refurbished. The programme is being led by the Kingdom’s Ministry of Culture.

The programme comprises several phases and will ultimately see the renovation of 130 historical mosques across the Kingdom, while the renovation work was carried out by firms experienced and specialised in heritage buildings at a cost of $13.33m.

Construction and design works of an internal roads and infrastructure renovation project valued at $39.4m has begun, with the project being carried out across Madinat Zayed, Baynunah, Sector 18 and Zone MZW by Abu Dhabi General Services Company (Musanada) and Al Dhafra Region Municipality.

The project covers construction of main and secondary internal roads, in addition to other infrastructure services such as construction of a potable water system, sanitation system, stormwater drains, internal road lighting networks, pedestrian sidewalks and parking bays.

18

THE BIG PICTURE

15

14 BAHRAIN

Bahrain to build new $222m exhibition centre 13 OMAN

PDO awards Petrofac $130m EPCM contract Petrofac has secured a $130m (OMR 50.1m) engineering, procurement, construction and management (EPCM) services contract from Oman’s exploration and production firm Petroleum Development Oman (PDO), for the Mabrouk North East Development Project. The contract award falls under a 10-year framework agreement signed between the two companies in 2017, while the project will be carried out in phases.

As part of the project, Petrofac will provide engineering, procurement and support for construction and commissioning of nine additional wells to improve overall plant production.

A $222m deal has been inked by Bahraini authorities for the construction of a new exhibition centre in Sakhir. The 308,000sqm Bahrain International Exhibition and Convention Centre is to be built on a 1.3m sqm plot and is expected to be handed over midway through 2022.

The new exhibition centre will take shape near the Bahrain International Circuit in Sakhir and will be five times bigger than the current exhibition centre in Sanabis. It will include 10 exhibition halls with a total area of 95,000sqm, along with all the necessary services.

15 AZERBAIJAN

Masdar inks deal to develop 200MW solar project in Azerbaijan Masdar has inked a deal with Azerbaijan’s Ministry of Energy to design, finance, build and operate a 200MW utility-scale solar photovoltaic (PV) project 75km southwest of Baku. The financial close of the project is expected at the end of 2020, with commercial operations expected to kick off in 2022.

The renewable energy project supports Azerbaijan’s goal of producing 30% of its domestic power from renewable energy sources by 2030. The cooperation with Masdar will help to achieve sustainable and clean energy goals.

17 RUSSIA

Russia opens $500m international terminal 16 INDIA

IndoSpace launches three industrial parks across India Indian real estate developer IndoSpace is to build three industrial parks across Becharaji in Gujarat, Anantapur in Andhra Pradesh, and Sohna Taoru in Haryana. The three parks will have a total area of more than 480,000sqm, as part of IndoSpace’s longterm goal of having 11m sqm of modern logistics infrastructure across India.

IndoSpace Industrial and Logistics Park Becharaji will be spread over 160,000sqm, IndoSpace Industrial Park Anantapur will offer facilities spread over 120,000sqm, and IndoSpace Logistics Park Taoru will be spread over 200,000sqm.

Moscow’s Sheremetyevo Airport opened the first phase of its newest international terminal in January 2020. Terminal C, the airport’s fifth terminal, covers 127,000sqm and has an annual capacity of 20m passengers. With the opening of Terminal C, Sheremetyevo’s maximum capacity will reach 80m passengers per year.

The new terminal’s construction cost more than $500m, said Alexander Ponomarenko, chairman of the airport’s board of directors. Phase Two of Terminal C, which will serve 10m passengers annually, is expected to be completed after 2026.

18 AUSTRALIA

Iberdrola aids Australia’s $345m wind project Spanish utility Iberdrola SA will be DP Energy’s partner in a 320MW hybrid wind and solar project in Australia that is planned to enter construction in the middle of 2020. This is Iberdrola’s first investment in Australia.

Called the Port Augusta Renewable Energy Park (PAREP), the hybrid power complex near Port Augusta in southern Australia will be able to generate around 900GWh of electricity per year. While the total approved capacity of the project is up to 375MW, DP Energy expects the constructed capacity to be around 320MW.

MEConstructionNews.com | February 2020

16

MARKET REPORT

Industry outlook

KSA Market Report and Analysis

SAUDI ARABIA

ProTenders report looks at the construction market in the Kingdom of Saudi Arabia

M

ore than 5,300 active construction projects are currently ongoing in Saudi Arabia at a value of $3.4bn, and the Kingdom’s construction market is expected to register a compound annual growth of 6% between

February 2020 | MEConstructionNews.com

2019 and 2024, a ProTenders analysis has found. The report adds that it expects to see $84bn worth of contracts awarded in the Kingdom in Q1 2020, with infrastructure leading the other sectors. The biggest contract awards expected during the quarter include a $705m contract by Saline Water Conversion Corporation for a 600,000m3 per day desalination plant and a power plant in Shoaiba.

A $2bn award by Public Investment Fund for Neom Residential Development and a $110m deal awarded to National Contracting Company Limited to build a 380KW overhead transmission lines and substation in Alaflaj from the Saudi Electricity Company are two other major contracts to be awarded.

According to ProTenders data, the infrastructure sector is the largest contributor to the construction sector expansion, with 1,905 active projects valued at $1.691 trillion.

The urban sector is the second largest contributor with 3,188 projects worth $1.376 trillion, followed by oil & gas with 207 projects valued at $295 billion.

Some of the other major infrastructure and urban construction projects in Saudi Arabia include the King Salman Park Infrastructure Work ($2 billion), the Riyadh King Salman Air Base Facilities ($2.5 billion), the Mall of Saudi (Phase 1) ($1 billion), the Al Rayis Development ($2.5 billion), Wadi Makkah ($1.1 billion), and Neom Bay, which is valued at $2 billion.

MARKET REPORT

VALUE OF PROJECTS

BY STATUS ($BN)

ONGOING PROJECTS

BY SECTOR ($BN) Infrastructure

Design

Planning

3,364.3 Total

UPCOMING PROJECTS

BY SECTOR ($BN)

Urban Buildings

1,200.0

280.0

235.3

17

1,100.0

Infrastructure

Urban Buildings

491.9

276.5

2,488.9 Total

874.9 Total

Oil & Gas

Oil & Gas

Tender

360.0

Under Construction

2,489.0

188.9

107.0

The infrastructure sector is the largest contributor to the construction sector expansion, with 1,905 active projects valued at $1.691 trillion�

60

40

100

30

20 Saudi Bin Ladin Group

Saudi Electricity Company

SNC Lavalin Group

200

Saudi Consolidated Engineering Company

60

AECOM

90

WS Atkins

300

WSP

80

Dar Al Handasah Consultants (Shair and Partners)

120

Saudi Arabia Ministry of Housing

400

High Commission for the Development of Arriyadh

100

King Abdullah City of Atomic and Renewable Energy

150

Saudi Aramco

500

Technip

TOP 5 CONTRACTORS

BY VALUE ($BN)

Larsen & Toubro

TOP 5 CONSULTANTS

BY VALUE ($BN)

Saipem S.p.A.

TOP 5 DEVELOPERS

BY VALUE ($BN)

CONSTRUCTION CONTRACT AWARD FORECAST Q1 2020 ($BN) Urban Buildings

26.0

Infrastructure

Oil & Gas

60

50

40

30

20

6.0

10

Source: ProTenders

52.0

MEConstructionNews.com | February 2020

20

ANALYSIS

Infrastructure

Speeding Forwards

UNITED ARAB EMIRATES

Big Project ME speaks to Harj Dhaliwal, managing director – Middle East and India for Virgin Hyperloop One, about how the transportation technology can unlock the potential of the Middle East

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n January, Virgin Hyperloop One (VHO), an American transportation technology company, created a stir in local and international media when it announced that its system can be powered completely off-grid in the Middle East, with zero direct emissions. In a statement made ahead of the World Future Energy Summit and during its participation at Abu Dhabi Sustainability Week, the company said that it was possible to leverage solar panels that would cover the tube, to power a zeroemission network that is energyneutral and completely unplugged from the grid in the Middle East.

With cities around the world feeling the impact of climate change,

February 2020 | MEConstructionNews.com

viable solutions are needed, with transportation one of the major areas that need to be addressed. Despite the urgency, little progress has been made since the introduction of railway and commercial travel, the company says.

It explains that VHO is committed to a “massive leap forward” which will offset the impact of vehicle, train and air travel in a manner that no current technology can achieve, with the company highlighting that per passenger, the hyperloop is vastly more efficient than conventional means of transport.

Furthermore, VHO’s clean energy solution is in line with the UAE’s Federal Energy Strategy 2050, supporting its goals to increase the contribution of clean energy in the total

Viable solution With cities around the world feeling the impact of climate change, viable solutions for transport are necessary.

10 Hyperloop

is 10 times more efficient than flying

ANALYSIS

energy mix from 25% to 50% by 2050. It will also reduce the carbon footprint of power generation by 70%, thus saving as much as $190.5bn by 2050, adds Harj Dhaliwal, managing director – Middle East and India, Virgin Hyperloop One. “The reality is that hyperloop will be the most energy-efficient form of mass transit in the world,” he tells Big Project ME. “For instance, we estimate that per passenger, hyperloop is almost four times more energyefficient than Amtrak, up to 50% more energy-efficient than high-speed rail and up to 10 times more energyefficient than flying. Combining an ultra-efficient electric motor, magnetic levitation, in a depressurised low-drag environment, our system is five to ten times more energy-efficient than an airplane and can go faster than high-speed rail using less energy.

“When we add the fact that our system will be on-demand, direct to destination, and will be using big data from smart city environments and predictive algorithms to forecast in real time the demand needs and match the deployment of vehicles accordingly, this makes the system highly efficient from both an energy use and operational cost point of view.

There will be no more running underutilised systems during off-peak.”

Dhaliwal explains that hyperloop’s efficiency advantage increases at higher speeds, relative to other high-speed ground transportation technologies.

Citing the Chuo Shinkansen – a Japanese maglev line currently under construction between Tokyo and Nagoya – he says its peak speed of 500km/h is only about half that of the hyperloop, but it consumes approximately 33% more energy.

“In fact, we believe that the hyperloop infrastructure can also support the creation of renewable energy by integrating solar panel technology across the system.

Depending on climate, the integration of solar energy could generate twothirds of a route’s projected energy needs. In the sunshine-drenched Middle East, our system could be fully off the grid. Evidence abounds that the Middle East will likely be

among the regions most significantly impacted by climate change around the globe. Establishing hyperloop – a 100% electric, zero-emission infrastructure project – at one of the true nexuses of climate change serves as a reminder that amidst all the talk of crisis, solutions are still possible.”

While the hyperloop will fall in line with the UAE’s Federal Energy Strategy 2050, that is not the only way VHO intends to contribute to the growth and prosperity of the UAE, with Dhaliwal identifying several sectors and applications for the transport system to make its mark.

“At our office in the UAE, we are building the future today, working closely with our partners at DP World and our chairman Sultan Ahmed Bin Sulayem to bring the promise of hyperloop to the region and to the world. With DP World’s proven track

100% Hyperloop

is 100% electric and zeroemission technology

Building the future Hyperloop is working with DP World to develop and accelerate the introduction of hyperloop in the region.

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record as a leading enabler of global trade, as well as HE Sultan Ahmed Bin Sulayem’s influence in the region, VHO is poised to accelerate our technology and engineering development, identify and consolidate business opportunities, and continue to lead as the undeniable hyperloop category leader.

“Imagine if all the Gulf cities are less than an hour away from each other, powered by zero-emission transport that is completely unplugged from the grid. That means commuting between Abu Dhabi and Riyadh in just 48 minutes. A hyperloop in the region could move close to 45m passengers per year, leveraging solar panels that cover the tube.

“The potential is enormous for the entire GCC to lead the world in hyperloop manufacturing, investment and job creation,” Dhaliwal states emphatically.

MEConstructionNews.com | February 2020

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ANALYSIS

Establishing hyperloop – a 100% electric, zero-emission infrastructure project – at one of the true nexuses of climate change serves as a reminder that amidst all the talk of crisis, solutions are still possible” “Hyperloop is more than just going from A to B exceptionally quickly and efficiently. It will unlock enormous economic, social and human potential by fundamentally altering the

barriers of distance and time. We’re committed to the region, and we’re not just talking, we’re delivering.”

One example of this commitment is a development partnership with Saudi Arabia’s Economic City Authority (ECA), which is a study to build the world’s longest test and certification hyperloop track, as well as a research and development centre and hyperloop manufacturing facility, north of Jeddah. The study on the Centre of Excellence found that if approved, it will create more than 124,000 high-tech local jobs, while also supporting the Kingdom’s technology sector and driving approximately $4bn in GDP growth by 2030.

This partnership is an example of the close cooperation between governments in the Middle East and VHO. With some of the biggest hurdles facing the integration of the hyperloop system coming from the regulatory side, it is essential that government and tech work together to achieve their aims.

“As the leader in the industry, governments are looking to us as a trusted partner to advise on this technology sector and recommend a new set of global standards. We are encouraged by the support we are seeing at the local and federal level around the world to support the hyperloop certification, based on the fundamentals of safe operating that are already standard practice,” he says, adding

February 2020 | MEConstructionNews.com

Walking the walk Harj Dhaliwal says VHO is committed to delivering hyperloop to the Middle East.

Trusted partner VHO is working closely with regional governments to develop new regulations and standards.

$4bn Hyperloop’s development partnership with ECA will drive $4bn in GDP growth by 2030 in KSA

that federal stakeholders must create an environment that promotes the development of hyperloop technology – not just for Virgin Hyperloop One, but for all players at the table.

“We are here today because we are open to having this dialogue.

The advancement of hyperloop – from testing to certification to manufacturing and beyond – is poised to have a huge economic and social impact. We need the formal support from lawmakers to make this real and harness the pivotal moment.”

Given the rise of drone technology and the increasing use of autonomous vehicles, Dhaliwal points out that cities are already becoming used to exploring these challenges, and that governments building these cities of the future understand that new technologies do not necessarily fit into existing processes.

“We think that the big lesson here is that it is critical to work with government entities early on to find a path forward that ensures safety, while allowing innovation to move forward.

We are committed to establishing an internationally accepted transportation system, although we understand that regulations may look different in each country.” He concludes by asserting that the company’s ability to meet the goal of having passengers ride the hyperloop in years, not decades, depends on how fast those regulatory and statutory processes move.

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IN PROFILE

Michael Dunn

Mandate for Change BIG PROJECT ME SPEAKS TO MICHAEL DUNN, SNC-LAVALIN SENIOR VICE PRESIDENT – RESOURCES FOR MIDDLE EAST, AFRICA AND ASIA PACIFIC, TO FIND OUT HOW THE BUSINESS IS ADAPTING AND EVOLVING IN A SUPREMELY COMPETITIVE ENVIRONMENT

| MEConstructionNews.com November2020 February 2019| MEConstructionNews.com

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IN PROFILE

n October 2019, SNC-Lavalin, a Canadian-based global, fully-integrated professional services and project management company, announced that it had made a significant new appointment to its Resources senior leadership team, with Michael Dunn taking on the role of senior vice president – Resources, Middle East, Africa and Asia Pacific. Having only joined the company in May 2019 as managing director – Resources, Arabian Gulf countries, this promotion saw Dunn take on a much wider role, leading oil & gas and mining and metallurgy activities in the APAC regions.

With this appointment, SNC-Lavalin hopes to strengthen its capabilities and market offerings by bringing in a wealth of experience and regional industry knowledge, thanks to Dunn’s 20 years of experience in operations and management, building businesses and delivering projects in the oil & gas, mining and metallurgy sectors in the UK, the Middle East and Australia.

Furthermore, with 10 years of extensive experience in the GCC under his belt, Dunn will also be able to play a key role in repositioning the company’s service offering and leverage its existing capabilities, while delivering on its growth plans in the region, the company says.

Having been in the role for a few months now, Michael Dunn sits down with Big Project ME for an exclusive first interview in his new role, discussing not only his mandate from the company’s senior leadership, but also his own ambitions and plans for the Resources business.

“When I was appointed as senior vice president for APAC, my key focus was to understand what the challenges are, and what needs to be done in the Gulf and the wider region.

It was a very clear mandate (from his superiors) – unfortunately our lump sum turnkey business was not performing well, and as a result of that, we needed to de-risk the business.

“We needed to actually look at the business, we needed to look at the customer base we had, and we needed to look at the markets. SNCLavalin operates in four sectors – Resources, Engineering, Design

February 2020 | MEConstructionNews.com

11,000

Staff numbers in the region for Resources business Strategic markets Dunn’s mandate has been to focus on strategic markets in the Gulf region and integrate service offerings.

and Project Management (EDPM), which is under the Atkins, Atkins Acuity and Faithful+Gould brands, and Nuclear and Infrastructure.

“To try and put the Resources section of the business into context, roughly speaking there are 16,000 people in the Resources division globally – 11,000 of those people are here in the Middle East and Africa region. However, there are 14,000 SNC-Lavalin employees in the region, while overall there are 50,000 employees globally. So my role is to come into this region, look at the customer base (specifically the resources sector). What we needed

Number of long-term, turnkey projects that SNCLavalin is running down and finishing

So my role is to come into this region, look at the customer base (specifically the resources sector).

What we needed to do initially was essentially to focus on strategic markets within the Gulf region and integrate our service offerings within these markets”

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to do initially was essentially to focus on strategic markets within the Gulf region and integrate our service offerings within these markets,” he explains.

Expanding on this, Dunn says his first task was to identify the offices within the organisation that needed to be consolidated into the regional management structure.

The second was to look at the sub-regions in the Resources business – starting with the APAC region, and particularly Saudi Arabia, in itself a large market for the group. The decision was made to divide the region into manageable sectors, with the Gulf as one sub-region and southern Africa as another, while Saudi Arabia has been maintained as its own business sector.

One of the advantages Dunn has in his new role is that he has key senior leadership figures working alongside him at SNCLavalin’s headquarters in the UAE. Having this support network in close proximity is something he holds in high value.

“Craig Muir joined the company in April 2019 as the president for Resources globally – he is based in the UAE. Recently we’ve also appointed Matthew Bishop as managing director, Gulf for Resources. Since the Middle East is a key growth market for Resources, the centre of the management structure is based in the UAE, with offices and a local presence across the region,” Dunn explains.

“With a management structure and dedicated expertise that has a deep knowledge of the region and of clients’

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The digital era is here and has been for quite some time.

It’s just that service providers haven’t embraced it as much as other industries.

We have the three segments, and the digital offerings will go across all those phases” needs, the business is well positioned to leverage its existing capabilities and grow our end-to-end engineering and consultancy, project delivery and asset management services under Resources.”

This move towards restructuring regional operations comes as part of a wider push from headquarters in Canada, where the global leadership has made significant decisions over the last year. As Dunn explains, these decisions could have potentially huge ramifications for the company.

“My mandate was not only to put the structure in place and understand the business, but more importantly to de-risk the business. Our businesses

have not performed well, and in the middle of last year SNC-Lavalin president and CEO Ian L Edwards made a strategic decision to diversify – move away from the businesses that were bringing in unpredictable outcomes.

“We have got 12 long-term turnkey projects that we are managing to run down and finish. Those projects will mostly be completed by the end of 2021, while two of those projects are estimated to be fully completed by 2024. We needed to move towards an area where we have strengths.

“If you look at our DNA, we have been operating in this region for 50 years and SNC-Lavalin has been a

February 2020 | MEConstructionNews.com

Predictable services SNC-Lavalin will move away from projects with unpredictable performance and focus on predictable services.

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Omanis at the Commissioning Training Academy

household name for the last 100-plus years. In this region, we have been very successful in the past in the engineering and consultancy space. We needed to move back into a much more predictable space with our customers by moving away from big lump sum billion-dollar projects, moving away from unpredictable performance to more predictable services.”

Given the company’s acquisitions in recent years, this shift in strategy is clear. The focus on the three key business lines – engineering and consultancy, project delivery services and asset management – has meant that the acquisitions of companies like Kentz, Atkins and Faithful+Gould will allow SNC-Lavalin to keep project delivery right at the centre of its core offering – which is to offer end-toend services to its customers.

“If you look at the financial performance of 2019 compared to 2018 – the full-year results for 2019 are expected in Q1 2020 – the biggest single thing I see is the $2.4bn of debt that has come out, relative to the previous year. Although the top-line and more importantly the bottom-line numbers for 2018 were not reflective of previous years, the debt reduction was really significant.

“Two-thirds of the business was a traditional business, one-third was in revenue, one-third in lump sum turnkey contracts; so the de-risk

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IN PROFILE

was to take a third of the business out and finish it, and the two-thirds where we were actually seeing good performances, we continue to make it the core of our business.

“The issue we had in 2018 with the financial results was that the underlying business actually performed well, but the one-third in the lump sum turnkey contracts impacted our financial results. This is why we had the change in 2019, with the business repositioning to focus on our core strengths.”

For 2020, Dunn explains that the strategy is clear. Having established a customer base in the region over the last 50 years, SNC-Lavalin plans to be more targeted in where its services are offered – to be very geography-specific, country-specific and customer-specific, as Dunn puts it. “We are being very specific about where we know and believe that we have the strongest relationships and capabilities. That’s where we’ll target our services.”

Another area of focus for the group is its digital offerings,

2020

SNCLavalin’s strategy for 2020 is to focus on its strongest relationships and capabilities

Fully committed Despite intergovernmental relations being strained, SNC-Lavalin remains committed to its KSA projects.

February 2020 | MEConstructionNews.com

which Dunn says will go across all three key business lines.

“The digital era is here and has been here for quite some time. It’s just that service providers haven’t possibly embraced it as much as other industries. We have the three segments that we go after, and the digital offerings will go across all those phases.

“For example, last year we were awarded a contract by Al Yasat Petroleum, a joint venture between Abu Dhabi National Oil Company (ADNOC) and China National Petroleum Corporation (CNPC), to provide general engineering, project management and technical support services. As part of this agreement, we are also providing our digital expertise to help Al Yasat in their ambition digital transformation plan, using the latest technologies. By combining our traditional engineering expertise with digital solutions tailored to our clients’ needs, we have a unique offering to position our business in the market.

“Traditionally, technology providers

We have been very successful in the past in the engineering and consultancy space.

We needed to move back into a much more predictable space with our customers by moving away from big lump sum billiondollar projects, moving away from unpredictable performance to more predictable services”

IN PROFILE

offer clients various solutions that do not necessarily meet their projects’ needs. As an engineering company with digital capabilities, we take a different approach by understanding their digital requirements and project challenges, and then offering innovative engineering solutions that utilise digital technologies to address these challenges in an efficient way.

“For example, SNC-Lavalin used virtual reality to enhance the traditional design review on a gas processing facility for one of our clients in the Middle East. As part of the initial engineering review, nine operations and maintenance staff members used VR to scrutinise the plant design by applying their knowledge and onground experience of what works best in an operating gas-processing plant.

The operators identified 32 actionable improvements or defects in the approved design, representing potential savings of more than $2.5m,” he relates.

Looking at the immediate region,

Customer base Dunn plans to leverage SNC-Lavalin’s existing customer base and target the countries and markets where the group is strongest.

Dunn returns to Saudi Arabia, pointing out that the recent IPO by Saudi Aramco has opened up opportunities outside of the firm’s traditional sectors.

While he’s quick to acknowledge that inter-governmental relations

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between Canada and Saudi Arabia will continue to have an impact on SNC-Lavalin’s near-term prospects in the Kingdom, he also asserts that the group’s current projects will continue to proceed, and that it remains fully committed to supporting all existing clients’ ongoing projects through its 7,000 employees in the Kingdom, 10% of whom are Saudi nationals.

“The biggest thing with Saudi Aramco and SABIC is that it has opened new opportunities for us in the Resources business, outside of the traditional oil & gas, which is the refining space. In addition, our engineering, design and project management business is experiencing good growth and a pipeline of opportunities relating to Saudi Vision 2030’s programme of reform and infrastructure development.”

Oman is another market of considerable interest, Dunn says, highlighting SNC-Lavalin’s successful and long-lasting relationship with

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IN PROFILE

As an engineering company with digital capabilities, we take a different approach by understanding their digital requirements and project challenges, and then offering innovative engineering solutions” PDO, which has seen the company implement a customised technical training programme that helps train and develop local Omanis to perform completions, commissioning and start-up activities independently, using specialised local vendor support where possible so as to maximise PDO’s in-country value strategy, which aims to secure sustainable technical and commercial benefits for the sultanate. To date, more than 200 Omanis have joined the Commissioning Training Academy, which is expected to train a total of 250 locals by the programme completion date in 2022.

“Oman provides a stable environment which will be very conducive to business.

It was a net importer of gas through the Dolphin Pipeline. It has substantially increased its gas production now, and I see an opportunity in the market, where SNCLavalin can play a key role in supporting the increase in gas production,” he says.

“Oman’s demand for gas is very high, and as the population continues to grow and its infrastructure continue to develop, and as major projects really start to come onstream. Oman is a key market for us, and we see strategic growth opportunities for our business there.”

In conclusion, two other markets that Dunn believes will be vital for the future success of the business are the UAE and Kuwait. With oil companies like

February 2020 | MEConstructionNews.com

Key role SNC-Lavalin will look to work with governments in the region and play a key role in improving efficiencies and performance.

ADNOC investing in diversification, he believes the company can not only offer services on particular projects, but also expand its services across the UAE. “Another key growth market for us is Kuwait. We have got three contracts in Kuwait today, but the key contract is with KIPIC. That is an operations and maintenance contract and it is about nationalisation – training the local workforce. Kuwait is a country where you have an increasingly young population that will lead the socio-economic growth for the future. We are well positioned with exciting relationships that we have to support in order to building local capabilities in the country.”

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PROJECT PROFILE

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Al Qana CLIENT: Al Barakah International Investment MAIN CONTRACTOR: International Construction Contracting Company PROJECT PLOT AREA: 145,961sqm PROJECT BUILT-UP AREA: 125,000sqm DATE OF COMPLETION: Q4 2020

Fulfilling a Vision

BIG PROJECT ME VISITS AL QANA, AN UPCOMING WATERFRONT DESTINATION SET TO PLAY A KEY ROLE IN ESTABLISHING ABU DHABI AS ONE OF THE WORLD’S MOST POPULAR DESTINATIONS FOR BUSINESS, LIFESTYLE AND ENTERTAINMENT

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PROJECT PROFILE

l Qana is a destination that will play a key role in supporting the government to realise its vision of enhancing Abu Dhabi’s status as one of the world’s most popular destinations for business, lifestyle and entertainment.”

These were the words of Fouad Mashal, CEO of Al Barakah International Investment, when Big Project ME interviewed him last year about the developer’s flagship project, Al Qana. Scheduled to open in the fourth quarter of 2020, the developer says the project is on track to be completed and operational by then.

However, as the quote above indicates, this is no ordinary project.

There is a considerable amount riding on the success of this upcoming tourist destination. With work in full swing, Big Project ME was invited by the developer to get an exclusive, first-hand look at the progress

Construction on track All 11 blocks are 100% under construction, with the progress of the project on track to meet its Q4 2020 deadline, the developer says.

2.4km Total length of Al Qana project

being made on-site, and to learn how the project team is working together to deliver this challenging and high-profile destination.

“This is one of the much-anticipated touristic landmarks in the capital,” says Fouad Mashal during an interview after the site tour. “The project features seven key districts with 11 buildings spanning over a distance of 2.4km of scenic and picturesque waterfront walkways. Al Qana will provide visitors with state-of-the-art-facilities from waterside eateries, the world’s first CinemaCity Max theatre, the Middle East’s largest aquarium, a first-ofits-kind lifestyle wellness hub, and

in a first to the UAE, VR and esports gaming, among other attractions.

“Abu Dhabi has been putting a lot of effort over the past few years to become one of the most liveable cities in the world and the ultimate destination for entertainment. Al Qana was designed to reinforce the capital’s vision by bringing new spaces that encourage social interactions and will be positioned prominently in the social fabric of the capital,” he adds.

Building the entire project as the main contractor is International Construction Contracting Company, a subsidiary of Al Barakah Holding, the parent company of the developer.

Having worked on several large-scale projects, the contractor offers a range of services and expertise, including general contracting and maintenance, design and build of commercial and residential complexes, and manufacturing and installation of light and heavy steel structures. All of these capabilities were heavily utilised in the construction of the buildings for the Al Qana project, Mashal states.

Looking at construction progress, the developer says all 11 blocks are already 100% under construction, while the National Aquarium building is itself 70% complete and ahead of schedule.

With the fourth-quarter deadline looming this year, the project team is confident of being on track to deliver and open the project on schedule.

Abu Dhabi has been putting a lot of effort over the past few years to become one of the most liveable cities in the world and the ultimate destination for entertainment.

Al Qana was designed to reinforce the capital’s vision” | MEConstructionNews.com | MEConstructionNews.com September February 2020 2019

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In order to meet the world-class standards required, we are collaborating with the best-inclass partners who are bringing their international experience, which also helps in creating a new benchmark in the market” However, given the scale of the project – spread over 1.2km on each side – several challenges were encountered over the course of construction. The main one came during the shoring, which took almost a full year, the developer says.

Another ongoing challenge is that the construction team has to make sure that every element of the project is up to the standards required to meet the high expectations generated for this one-of-a-kind project in Abu Dhabi.

“Due to the fact that it’s the first project of its kind in Abu Dhabi, if not the UAE, we set up high expectations to bring Al Qana to life. In order to meet

50%

Of leasable space will be for entertainment High expectations The size, scale and visibility of the project mean that every element of the project has to be up to the highest standards.

the world-class standards required, we are collaborating with the best-inclass partners who are bringing their international experience, which also helps in creating a new benchmark in the market,” the developer says.

With the developer and contractor related through the holding company, the pre-existing relationship between the two has helped encourage a seamless approach towards coordinating the different aspects of the development plans and construction activities on the site.

“Thanks to our inter-group connectivity, our communication activities are well established into

a series of steering teams that encourage a unified approach to deliver a world-class project. Most importantly, the CEO and owner is permanently at site to spearhead the plans and activities. This has brought efficiency in the decisionmaking to keep our programme on track,” the company explains.

This coordination also extends towards working with the government authorities, with the developer explaining that the project team works closely with Abu Dhabi Municipality.

Meetings are held on a weekly basis, thereby establishing a smooth transitional communication and file

MEConstructionNews.com | February 2020

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PROJECT PROFILE

exchange. In fact, the municipality has been equally keen to support progress on the project and help the team deliver an outstanding social dining and entertainment destination that will measure up against any in the region.

Another example of the project’s commitment to achieving high standards has been in its on-site health and safety policies, with the Al Qana team telling Big Project ME that there are stringent HSE policies in place to prevent occupational incidents, injuries and harm to people. These are in addition to other protocols that are in place to protect the surroundings.

Aquatic attraction The centrepiece of Al Qana’s attractions is the largest aquarium in the Middle East.

70%

Percentage completion rate for the National Aquarium

“We are committed to providing a safe environment at all times, and we do so by holding awareness and training sessions for visitors and staff alike, as well as implementing strict prevention protocols,” the developer outlines.

“The site adheres to applicable local laws and applies internationally accepted HSE practice procedures that aim to spread awareness related to site HSE issues. To ensure our frequent compliance, we regularly go through internal and extra audits to confirm our adherence to our own HSE management system,” the project team says.

One of the most visually striking aspects of the entire project is the distinctive design of the buildings.

As the team explains, the promenade lining the canal was inspired by the jagged lines of Abu Dhabi’s salt flats.

This element of the project was designed in a particular manner to achieve a longer, more dynamic and vibrant pedestrian area, the team says.

“Each district of the development is designed to portray its own unique architectural language, which portrays a different design story for each building. The façade cladding material we are using was developed

Al Qana’s features were carefully selected to encourage social interaction, provide a healthy, balanced lifestyle and contribute to the happiness of residents and visitors. This is a key aspect of the development” February 2020 | MEConstructionNews.com

PROJECT PROFILE

Combined with all the other elements and attractions of the project, these important links between the two sides of the project provide visitors with a singular experience, one that measures up to any regional attraction.

“Abu Dhabi will soon welcome a major landmark that is purely dedicated to leisure and entertainment – people will come to have fun there,” says Fouad Mashal as the interview wraps up. “We are introducing a new exciting concept that will create a vibrant ecosystem for Abu Dhabi. Al Qana’s features were carefully selected to encourage social interaction, provide

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specifically for Al Qana in order to fit the vision of the project.”

Spaces between the buildings were formed and designed as open piazzas with distinctive design inspirations. These spaces thus create an enjoyable gathering space for social interaction, all with different ambiences and themes for visitors to enjoy. Furthermore, both sides of the project are connected via built-in pedestrian bridges that cross the canal.

This provides easy access on foot for visitors, while also allowing them to enjoy the open space with the canal flowing under them.

11

Total number of buildings

Singular experience The attractions at Al Qana will provide visitors with a singular experience, as evidenced by the huge underwater tunnel in the aquarium.

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a healthy, balanced lifestyle and contribute to the happiness of residents and visitors. This is a key aspect of the development, as happiness and well-being ranking are rising in importance as measures of Abu Dhabi’s health, prosperity and success.

“This is the first-of-its-kind destination in the region, with more than 50% of leasable space dedicated to entertainment. The exceptional scale of the project, its functional diversity and distinctive architectural design will have an impact on the future social and architectural developments in Abu Dhabi,” he concludes proudly.

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SUMMERTOWN INTERIORS

Commercial Fit-out 2020: The Trends to Watch

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n a more complex and digitally connected world, companies are being forced to listen to the needs of their employees and adapt their workspaces to remain competitive. Smarter, sustainable environments, efficient technology and wellness measures have fast become critical components of growth – all of which are majorly influencing today’s workplace fit-outs.

SUSTAINABILITY The most popular and industry-dominating trend this year is sustainability. Being more sustainable has become a major issue for our society, and the fit-out industry has experienced increased pressure to implement environmentally responsible practices. We define a sustainable office fit-out as one that focuses on protecting the environment by using green building materials, managing resource consumption and reducing harmful emissions.

In the UAE, it is promising to see the continuous increase in companies investing in more sustainable interiors, guided by certifications such as LEED (Leadership in Energy and Environmental Design), the most widely used green building rating system in the world.

SMART SPACES: DYNAMIC, SCALABLE AND FLEXIBLE Work environments are shifting towards building a space that offers the perfect balance between collaboration and privacy. Designers, architects and workspace experts have started to introduce these principles into their projects, to increase user satisfaction and productivity.

Employees want to have more control over February 2020 | MEConstructionNews.com

the space they occupy, which is why different types of spaces continue to evolve – communal, co-working open areas, private offices, privacy cubicles, meeting rooms, areas for rest and so on.

TECHNOLOGY AND INNOVATION Technology is a vital component of a productive workplace, but it is more than just providing constant online connectivity to business software, files and the internet.

Cleverly integrating the latest technologies into an office fit-out can make employees feel more creative, productive and engaged.

Technology can make a fit-out more efficient by assessing how teams make use of space in real time. By providing accurate data on how people are interacting with each other and with the space, fit-out contractors and designers can increase spatial efficiency at the same time as employee comfort and satisfaction. For example, automatic sensors can control lighting and A/C for a more comfortable environment, and provide information on water and energy consumption.

HUMAN WELLNESS, WELL-BEING AND HEALTH Investing in the workspace is no longer considered an extra cost, but a productivity investment that enhances an organisation’s overall success. Companies both small and large are starting to understand the importance of investing in creating healthier and sustainable working environments that focus on improving employees’ physical health and mental well-being. We truly believe that sustainable fit-out has a direct, immediate and measurable impact on employees. By paying more attention to the quality of lighting, indoor air, sound level and visual design in the office, companies are now understanding the role that the physical environment plays in promoting well-being at work.

At Summertown Interiors, we believe that making spaces which foster employee health and wellness should always be a priority – and that by creating more sustainable workplaces, we in turn contribute to the bigger, global environment conversation. We look forward to undertaking an array of interesting projects that we have in the pipeline for 2020.

Marcos Bish is Managing Director at Summertown Interiors.

STEVE COCKERELL BENTLEY SYSTEMS

BIM Advancements Making a Difference in Rail and Transit

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s I prepare once more to join Bentley Systems’ Dubai team at Middle East Rail 2020 next month, I read with interest the January edition of Big Project ME, which featured an interview with Ahmed AbouAlfa, founder of the UAE BIM Association. In an article titled ‘Creating a BIM Mandate’, AbouAlfa spoke of how organisations are working to “empower digitisation of construction and assets in the UAE and the Middle East”.

His words about organisations “going digital” with strategies that build digital competencies and capabilities to accelerate project delivery and improve asset performance resonated with me. They made me recall my last visit to Dubai back in September, when I spoke about what is fast becoming the most talkedabout topic among rail owner operators, consultants and contractors: digital twins.

REALISING THE POTENTIAL FOR DIGITAL TWINS IN RAIL Digital twins are taking centre stage because of their promise to leverage innovation to improve design, enhance collaboration and increase asset reliability. However, rail is a very traditional and safety-sensitive industry, and with the backdrop of owner-operators and project delivery firms needing to work within tighter budgets and shorter deadlines, and with increased legislation, change can be slow and challenging.

While the risks associated with changing a tried-and-true formula weigh heavily on

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the minds of those responsible, the upside is that the highly complex nature of rail networks and systems allows the opportunity to innovate and leverage technology to change the way rail networks do business.

Many owner-operators around the world have recognised the potential for digital twins in their work and have begun to explore the opportunities for applying big data analytics, artificial intelligence (AI) and machine learning (ML) throughout the design, construction, operation and maintenance of rail and transit networks.

WHAT IS A DIGITAL TWIN? A digital twin is a digital representation of a physical asset, process or system, as well as the engineering information that allows us to understand and model its performance.

Plainly stated, a digital twin is a highly detailed digital model that is the counterpart (or twin) of a physical asset. That asset might be anything from a ticket machine or escalator in a station, through track and the switches and crossings within it, to related infrastructure such as overpasses or overhead line structures, right up to and including an entire city.

Connected devices and sensors on the physical asset collect data that might relate to condition or performance that can be mapped onto the digital twin, to understand not only how the physical asset is performing in the real world, but also, through analysis or simulation, how it might perform in the future or with a different set of parameters.

WHY ARE DIGITAL TWINS IMPORTANT? Digital twin technology has existed in industries such as manufacturing for many years, driving

Digital twins are taking centre stage because of their promise to leverage innovation to improve design, visually enhance collaboration and increase asset reliability and performance”

lean processes, improving performance, and predicting and highlighting components at risk of failure. Additionally, digital twin technology ensures that the lessons learned contribute to design enhancement and are applied to future products and systems. The relevance and influence of digital twins, which span the entire asset lifecycle, are significant when applied to rail infrastructure.

During the planning, design and construction of a new railway or major upgrade, project digital twins can enable the optimisation of design in line with operational requirements and reduce the risk of delayed or non-conforming construction through simulation. Project digital twins can also improve logistics and communication within the supply chain, which can help maintain the schedule and budget.

During operations, performance digital twins become the most valuable. Owner-operators gain insight when inputs from Internet of Things (IoT) connected devices, including drones that deliver continuous surveys to provide realtime tracking of asset changes in real-world conditions, add to the digital representation.

This transparency helps owner-operators prioritise and improve maintenance or upgrades.

Consequently, the most significant value a rail or transit system can achieve is through the successful implementation of digital twin technology. By using digital twins to plan, design and build the network, and using the digital twin during operations, a rail or transit owner-operator can improve the performance and reliability of the system.

With the application of AI and ML, analytics visibility gained from big data can provide insights and immersive digital operations to enhance the effectiveness of operations and maintenance. In this instance, access to performance digital twins might enable staff to anticipate and avoid issues before they arise, or improve reaction times to system failures, for reduced downtime.

With the application of drones, robots and AI-based computer vision, automating inspection tasks via a digital twin expert – along with leveraging the value of specialists – enables remote inspections, increases productivity and reduces the risk of exposing team members to dangerous environments.

Steve Cockerell is Industry Marketing Director – Rail at Bentley Systems.

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DUNCAN MACPHERSON TELFORD OFFSHORE

Better Accommodation is Crucial to the Well-being of Offshore Workers

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ffshore work is inevitably challenging for all those involved. It requires long periods away from home, often in remote locations, with unfamiliar surroundings and in variable weather conditions. Despite the many coworkers, it can often feel like a lonely place.

The pressures associated with offshore work can take a toll on individuals, and while the industry may have made great progress in eliminating obvious physical risk, HSE incidents often stem from human error, which can be caused in part by the emotional state of the workers involved.

Among the emotional pressures offshore workers face are isolation from family and friends, work pressures, and potential difficulties making the transition back to everyday life.

As operators start to recognise the issues offshore workers face in terms of these issues, it is important that they do not overlook the quality of the workers’ physical environment, particularly accommodation. Offshore accommodation should provide workers with a secure working environment offering comfort and flexibility, while remaining functional, meeting health, safety and environmental (HSE) standards, and operating within budget.

Worker comfort and safety must never come ahead of budget restraints. We are seeing operators invest heavily not only in schemes MEConstructionNews.com | February 2020

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to support workers, but in accommodation vessels designed to meet the international standard for their class, aiming to ensure personnel are comfortable and secure while away from their family and loved ones. We have seen a rise in demand for our fleet of DP3 accommodations, designed and developed with a focus on spacious cabins with private bathrooms. The importance of a personal space for rest and rejuvenation has been recognised as key to worker welfare and well-being.

Isolation is also a leading cause of distress, and maintaining connectivity with friends and family is key. Reliable internet connectivity allows personnel to stay in contact with families and friends, and the availability of satellite television services enables offshore workers to stay fully up to date with what is happening in the outside world. By staying connected to the real world and their families, we believe the readjustment to onshore life can be made smoother.

A standard offering on DP3 vessels now includes offices, conference rooms, recreation rooms, cinemas, fitness areas, internet cafés, satellite TV and a fully equipped hospital with a qualified doctor. These are key to adhering to security, health, safety and environmental standards and supporting highly skilled crew in performing at their best.

Our advanced dynamic positioning systems achieve one of the highest gangway connectivity rates in the business, in excess of 95%. Our 24/7 connections to floating production storage and offloading (FPSO) and fixed production platforms, plus hydraulic heave-compensated gangways, ensure workers have a safe passage to work every day.

Overcrowding is known to heighten the adverse effects of other stressors and is linked with aggression, which can lead to a reduced tolerance of existing crew for newly onboarded crew members. The effects can be mitigated by using flexible portable accommodation blocks (PABs), allowing capacity to be increased from 470 to 675 people while ensuring comfort and high standards are maintained.

There are, of course, many parts to the offshore mental health puzzle. Shift patterns, access to professional counselors and working culture are all critical issues that must be addressed by the industry. We believe, however, that quality of accommodation is a factor that should not be overlooked.

Duncan MacPherson is Chief Operating Officer at Telford Offshore Ltd. February 2020 | MEConstructionNews.com

AMALDEEP PRADEEP ALLEGION

Mobile and Cloud Architecture Shaping Physical Access Solutions

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ccording to the International Data Corporation’s (IDC) Worldwide Semiannual Public Cloud Services Spending Guide, global spending on public cloud services and infrastructure in general is expected to reach $210bn in 2019, an increase of 23.8% over 2018. In an increasingly digital age, there is a growing need to protect a facility physically and electronically, paired with the benefits that cloud-based solutions offer.

Here are some of the advantages offered by mobile and cloud-based access solutions: COMPLETE CONTROL OF FACILITIES Cloud-based access control systems can be centrally managed and can monitor access control rights and permissions far more quickly and conveniently than traditional systems, even across multiple locations. A facilities manager with a smartphone is literally able to carry the access control system with him wherever he goes. Similarly, staff members can gain access using their smartphone access control app, eliminating the need for keys or cards. Authorised users can manage access from anywhere, including a lockdown feature, receive alerts and act immediately in the event of an incident or emergency. Access rights can be updated or revoked instantaneously.

INTEGRATED USER EXPERIENCE A mobile device is essentially a powerful computer and a sophisticated graphical user

interface (GUI) that can be carried wherever one goes. Allowing mobile devices to connect to security products means that we can tap into that capability – users can program devices, store a credential or assign access rights to others through their mobile device.

Cloud connectivity is a further enabler, allowing this functionality remotely.

MONITOR LIVE STREAM VIDEO Cloud-based access control offers a great level of security. To take this one notch higher, video surveillance can be integrated with cloud access control. One can monitor live-stream videos from any device and at any time during the day. In other words, security needs can be addressed in real time.

RETURN ON INVESTMENT Cost is often a barrier for businesses considering a cloud-based access control system. However, moving to a cloudbased access control system results in a reduction in capital expenditure and a shift to operating expenses. Other positive cost factors include a reduction in hardware costs, as there is no longer any need for on-site servers or appliances. Set-up and system management is straightforward, with minimal use of time and resources.

Alternately, users can opt to lease equipment from an authorised reseller rather than purchase their own, thereby avoiding

Cloud-based access control systems can be centrally managed and can monitor access control rights and permissions far more quickly and conveniently than traditional systems, even across multiple locations. A facilities manager with a smartphone is literally able to carry the access control system with him wherever he goes”

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capital expenditure costs in favour of modest ongoing operational costs. Cloud-based systems also permit remote operation of doors, so there are no costs associated with hiring additional security staff for additional doors.

SCALABILITY AND FLEXIBILITY A huge advantage of mobile and cloudbased access controls is the fact that they offer unlimited scalability. Businesses can start small and easily add new doors, offices and users at any time. These systems also cater to additional use in some unusual but highly beneficial scenarios.

For example, parking gate users and pharmacists in a hospital requiring access to drug cabinets can be allowed access to their respective spaces, while others are not. This means there are huge scalability options, enabling a building to grow with its access control system, without presenting any additional security issues.

Additionally, mobile and cloud-based access control is flexible, making it ideal for growing businesses with fluctuating workforces.

ACCESS CONTROL DATA Many businesses are required to submit access logs regularly, which contain data about the number of people entering and exiting the building. Intelligent access control, such as cloud-based systems, can track a host of useful metrics, all with the potential to improve both security and processes in general.

Take the healthcare sector as an example.

Most healthcare environments are designed to house open-plan areas, but all contain offlimits areas that house confidential medical records, equipment and pharmaceuticals.

Some of these areas, such as medicine cabinets, require stringent security.

By collecting data on medicine cabinet access, a facility can detect any instances of declined access or wrongful access (such as unusual after-hours activity). This information can then be used as the rationale for changing or revoking access rights, adding an extra layer of security where most needed.

Cloud-based access control means one can log into a web portal from anywhere, download relevant data and analyse it for insights, to generate hassle-free reporting of access control systems. Reports can be provided on a regularly scheduled or on-demand basis.

Amaldeep Pradeep is Electronics Sales Leader – MEIA at Allegion.

JESÚS SANCHO ACCIONA MIDDLE EAST

ACCIONA 100% EcoPowered: Dakar Challenge

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even years ago, nobody would have imagined a 100% electric rally car competing in the most difficult and tough race in the world, the Dakar rally. It has been a long and hard road to get where we are today, but the result has been worth it.

The ACCIONA 100% EcoPowered has broken several records. It was the first 100% electric rally car to win a Dakar rally and the first to compete in a rally on all five continents, setting this record in the Abu Dhabi Baja last November when it became the first electric rally car to participate in a Middle East rally.

When we faced this great project, we found three major challenges on our road to Dakar.

TECHNOLOGICAL CHALLENGE One of these challenges was the technological one: to develop the entire vehicle in order to be capable of finishing the Dakar. When you are running on an electric powertrain, you have to understand all the complications, especially in terms of range and batteries.

It is quite complex to fit all the consumptions and range requirements that the rally stages demand. Moreover, all the technical and safety regulations must be applied as well to the electric powertrain used for the Dakar rally.

All these restrictions made us spend years to develop the whole ACCIONA 100% EcoPowered.

LOGISTICAL CHALLENGE Once the vehicle was built, another great challenge rose: logistics. This was one of the most important parts of the project, since a range of 200-350km was needed, depending on the terrain. Every day, the team behind the ACCIONA 100% EcoPowered had to be

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prepared to attend the car during the entire race, as they were obliged to recharge batteries in the middle of the desert, which entailed moving chargers, and moving all the team in order to be in place on time. This prompted us to coordinate every detail precisely.

SPORTING CHALLENGE From the very first moment, the team behind the ACCIONA 100% EcoPowered had to prepare documents for regulation. We also had to create the category to be allowed to compete. This is the custom today for the Dakar rally or any world championship.

In addition, more complications were added to the sports challenge: the number of driving hours, all the physical preparation of the driver and co-driver, the navigation and the technical tasks done by the team to meet the challenge.

Our intention with this sustainable challenge is none other than to launch a global message: the viability of clean energies versus polluting fuels, even in the most hostile environments and situations.

The ACCIONA 100% EcoPowered is the perfect example of this: • 3 Dakar rallies: the first zero-emission car to have finished the Dakar • 2 Morocco rallies: the first zero-emission car to participate in a world rally championship • 1 Italian Baja: the first zero-emission car to complete a rally on European soil • 1 Finke Desert Race: the first zeroemission car to race in Australia • 1 Abu Dhabi Baja • Navigation and driving of a zero-emission car • Unique project in motor world history With this challenge, we are once again showing our commitment to the planet and all its inhabitants.

We know that climate change is a reality, and as an organisation we actively fight global warming and strive to help create a more sustainable world.

When we decided to pursue this challenge, people told us it would be impossible. We had to adapt, but through teamwork, resilience and perseverance, we overcame the impossible.

This race was in alignment with our mission of creating sustainable and innovative solutions.

Our next step with this amazing challenge is to bring the ACCIONA 100% EcoPowered to the next Dakar rally in Saudi Arabia and continue demonstrating the viability of clean energy.

Jesús Sancho is Managing Director at ACCIONA Middle East.

MEConstructionNews.com | February 2020

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ADVERTORIAL

Pinsent Masons

Efficient resolution of construction disputes MIDDLE EAST

Jed Savager, partner, and Angus Frean, senior associate, Pinsent Masons, consider some ideas for dispute resolution

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rbitration remains the preferred forum for finally resolving construction disputes in the region, though both in the region and internationally there are concerns that the process could be more efficient and cost-effective.

This has been the focus of a recent arbitration survey on how efficiencies might be driven in international construction disputes, undertaken by Pinsent Masons in partnership with Queen Mary University of London.

Drawing on feedback from users of construction arbitration both in the Middle East and internationally, one of the key messages from

respondents to the survey was that the effectiveness of pre-arbitral decisions depends on the ability to enforce these on an interim basis, so as to foster a ‘pay now, argue later’ approach to disputes.

Given the predominance of FIDIC in the Middle East, the most common forms of pre-arbitral decision in the region are Engineer’s decisions (FIDIC ‘87) and decisions of Dispute Adjudication Boards / DABs (FIDIC ‘99).

Under both FIDIC ‘87 and ‘99, the parties are required to promptly comply with decisions, i.e. they are “binding” unless and until revised in arbitration. If neither party issues a notice of dissatisfaction, they are “final and binding”.

In the event of non-compliance, and to drive efficiency in the arbitral process, the party seeking to enforce the decision might well consider applying to the Tribunal for an interim award pending its decision on the substance of the dispute, to apply pressure consistent with the ‘pay now argue later’ philosophy.

Until the introduction of the new Federal Arbitration Law in the UAE in June 2018, there was considerable uncertainty as to whether tribunals had the power to issue interim awards and the extent to which these would be recognised

or enforced by the courts. However, this has been clarified by the new law, which now expressly gives the Arbitral Tribunals power to issue interim awards and for the courts to enforce them.

This is a welcome step towards a ‘pay now argue later’ approach and one that will improve efficiency in arbitration.

A word of caution in relation to FIDIC ‘99, however, is that the Singapore Court has previously cast doubt as to whether FIDIC ‘99 permits the Tribunal to enforce pro tem DAB decisions which are binding but which have not become final and binding. That position has

One of the key messages from respondents to the survey was that the effectiveness of pre-arbitral decisions depends on the ability to enforce these on an interim basis”

been clarified in the 2017 FIDIC contracts, which now make clear that the Tribunal may enforce compliance with decisions that have either become binding or that have become final and binding.

In terms of drafting and negotiating contracts, it would be worth seeking to reflect that wording in contracts based on FIDIC ‘99, to reduce the opportunity for argument later and to provide the best prospects of enforcing compliance with decisions, using the express powers now afforded to arbitrators to issue interim awards under the new law.

In short, the introduction of the power to introduce interim and partial awards under the new Federal Arbitration Law now provides the option to enforce binding decisions (even if disagreed with) on an interim basis to obtain early receipt of funds, a strategy which may also encourage early settlement of disputes and avoid the time and expense of pursuing the arbitration to a final award – and is certainly something that should be borne in mind by parties when formulating their strategy for the resolution of disputes.

For further information, visit www.pinsentmasons.com

MEConstructionNews.com | February 2020

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SHOW PREVIEW

Middle East Energy

Middle East Energy to Shape the Future MIDDLE EAST

Middle East Energy (formerly Middle East Electricity) will return for a 45th edition from 3-5 March, 2020, after undergoing an energetic transformation that will keep the global energy platform at the forefront

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ith demand for digitised and renewable energy solutions now at unprecedented levels, the three-day show will

bring together the leading lights of the industry, from energy ministers and utilities decisionmakers to innovative start-ups and future technology providers, at Dubai World Trade Centre.

The event, organised

by Informa Markets, will once again connect major industry players through power networking and multisector growth opportunities.

Mirroring the evolving demands of the worldwide energy industry, Middle East Energy 2020 will host new zones, including a customised Digitalisation Zone highlighting the latest technologies in digital transformation, and an expanded Renewables area.

The event will continue to expand upon its long-held role of being a new technological springboard, a comprehensive B2B meeting ground and an educational and knowledge sharing platform for one of the fastest evolving industries.

As a driving force for the industry agenda, Middle East Energy has assembled a

February 2020 | MEConstructionNews.com

high-powered advisory board comprising 21 industry experts, which has identified key content themes that will form the basis of the 2020 Conference Programme, the strategic conference series which runs alongside the main exhibition.

Middle East Energy 2020 will host new zones, including a customised Digitalisation Zone highlighting the latest technologies in digital transformation, and an expanded Renewables area”

The conference will feature a high-calibre line-up of 150plus speakers who will provide critical insights and discuss the future ahead, in the presence of utility providers, governments, procurement, project managers and contractors.

Under an overarching theme ‘Energy in Transition, connecting the world: Demand, Digitalisation, Diversification’, the Advisory Board has set five content streams over three days of in-depth discussions, which will explore: Policy v Technology; Decarbonisation & SDGs; Power of Digital – How to create value; Effective Renewables Integration; and New Business Models.

Held under the patronage of HH Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai, and hosted by the UAE Ministry of Energy, Middle East Energy will take place 3-5 March, 2020 at Dubai World Trade Centre.

For more information, visit www.middleeast-energy.com

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TENDERS

Middle East tenders UAE RESIDENTIAL

Azizi Victoria (Phase 1) BUDGET $500 million CLIENT Azizi Developments TERRITORY Dubai, UAE DESCRIPTION The project’s scope of work consists of 47 residential buildings including integrated retail spaces, greenery and transit access located at Mohammed Bin Rashid City, District 7, Meydan, Dubai. The project also includes BBQ area, parking facilities, development of landscape and associated facilities.

PROJECT START 2017 - 2024 HOSPITALITY & RESIDENTIAL

Al Marjan Island The Address Hotel & Residences BUDGET $505 million CLIENT Emaar Properties TERRITORY Ras Al Khaimah, UAE DESCRIPTION The project’s scope of work consists of a hotel and residential building located at Al Marjan Island, Ras Al Khaimah.

The Address Al Marjan Island hotel will include 249 rooms and suites, while Address Residences Al Marjan Island will include 234 luxury apartments. The project will offer several restaurant concepts including the restaurant at the Address for all-day dining, meeting

and banquet space, fitness centre, a business lounge, car parking space, landscaping works, commercial units, retail area, and other wellness amenities and associated facilities.

PROJECT START 2017 - 2022

10,737sqm. In the Gehry design, four storeys of central core galleries are laid out around a courtyard.

These will be more classical and contemporary galleries. Two more rings of galleries span out from the core. The third ring is for larger galleries, built more like raw industrial space with exposed lighting and systems.

PROJECT START 2006 - 2023

HOSPITALITY

Dubai Lighthouse BUDGET $300 million CLIENT Meraas Holding TERRITORY Dubai, UAE DESCRIPTION The project’s scope of work consists of a unique architectural icon located in the coastal area between Jumeirah Beach Residence and Palm Jumeirah, Dubai. The project featuring a luxury hotel, the 135-metre-high Dubai Lighthouse, will have an observation deck that offers 360-degree views. It will also feature a 13,935.45 metre cruise liner terminal capable of handling 6,000 passengers, as well as entertainment and retail space, a yacht club, shopping mall, hotels, and residences.

PROJECT START 2017 - 2022 CULTURAL

Guggenheim Museum BUDGET $800 million

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CLIENT Abu Dhabi Tourism & Culture Authority TERRITORY Abu Dhabi, UAE DESCRIPTION The project’s scope of work consists of a museum located at Saadiyat Island, Abu Dhabi. The project is a 30,000sqm planned museum located at Saadiyat Island Cultural District, Abu Dhabi. The museum will have 13,000sqm of gallery space, 18,000sqm of exhibition space and a 350-seat theatre, a library, a research centre, and food and beverage, conservation laboratory, and retail outlets. The project also includes permanent collection galleries: 9,474sqm, special exhibition galleries: 3,395sqm, education centre: 513sqm, theatre: 513sqm, retail: 1,500sqm, visitor service areas, gardens and terraces: 3,868sqm, back of the house:

SAUDI ARABIA INFRASTRUCTURE

Shuqaiq Desalination Plant (Phase 4) BUDGET $505 million CLIENT Saline Water Conversion Corporation TERRITORY Jizan, Saudi Arabia DESCRIPTION The project’s scope of work involves the construction of a 400,000 cubic metres per day desalination plant located at Jizan, Saudi Arabia. The project includes power plant, sea water intake system, installation of pumps, installation of pressure exchanges, installation of membranes and associated facilities.

PROJECT START 2017 - 2023 OIL & GAS

Hawiyah Gas Reservoir Storage Plant BUDGET $505 million CLIENT Saudi Aramco TERRITORY Hawiyah, Saudi Arabia DESCRIPTION The project’s scope of work involves the construction of an underground sales gas storage facility with a storage capacity of 1,500 million standard cubic feet per day (MMSCFD)

MEConstructionNews.com | February 2020

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TENDERS

located at Hawiyah, Makkah, Saudi Arabia. The project also involves the construction of caverns, storage tanks, pumping stations, drilling of wells, installation of safety and security systems, and associated facilities. The project is planned to be expanded up to 2,000 MMSCFD. It also includes 52972000082.25 gas (cubic feet).

PROJECT START 2018-2023 INFRASTRUCTURE

Shoaiba Desalination Plant (Phase 5) BUDGET $705 million CLIENT Saline Water Conversion Corporation TERRITORY Shoaiba, Saudi Arabia DESCRIPTION The project’s scope of work involves the construction of a desalination plant located at Shoaiba, Jazan area, Saudi Arabia.

The project work includes 600,000 cubic metres per day desalination plant, power plant, seawater intake system, installation of pumps, pressure exchanges, membranes, and associated facilities.

PROJECT START 2018-2022 INFRASTRUCTURE

Jubail 3B Independent Water Plant (IWP)

PROJECT START 2019 - 2024

OMAN INDUSTRIAL

Duqm Cement Plant BUDGET $510 million CLIENT Raysut Cement Company TERRITORY Al Wusta, Oman DESCRIPTION The project’s scope of work involves the construction of a cement manufacturing plant with a capacity of 2,600,000 tonnes per year DRI located at Duqm Special Economic Zone, Al Wusta, Oman.

This project includes 2 silos with a capacity of 5,000 metric tons each and all associated facilities like kiln, rotary dryer and bagging unit.

The project also includes a clinker plant, a grinding unit, a warehouse, an administrative building, a parking facility, a storage space, installation of equipment, a safety and security system, and material handling facilities.

PROJECT START 2009-2002 INFRASTRUCTURE

Sohar Industrial Free Zone BUDGET $2 billion

BUDGET $705 million CLIENT Saudi Water Partnership Company TERRITORY Jubail, Saudi Arabia DESCRIPTION The project’s scope of work involves the construction of a 600,000 cubic metres per day seawater reverse osmosis plant located at Jubail, Saudi Arabia. The project work includes seawater intake system, installation of pumps, pressure exchangers and membranes.

February 2020 | MEConstructionNews.com

CLIENT Sohar Port & Free Zone TERRITORY Al Batinah, Oman DESCRIPTION The project’s scope of work involves the development of a 45 million sqm economic free zone at Sohar Industrial Port, Sohar, Al Batinah, Oman. The project includes one phase which includes the development of 5 million sqm.

The project will cover and spread over an area of 4,500 hectares of land and will be developed in strategic phases. Phase 1 includes industrial buildings, 20 hectares education buildings, 121.42 hectares trading & logistics, 68 hectares light manufacturing, 7 hectares cement grinding unit, 17.50 hectares aluminium facility, 20 hectares ceramic tiles and 26 hectares petrochemicals facility.

Phase 2 includes social amenities, entrance complex on an area of

11.40 hectares of land, mosque over an area of 5 hectares of land and two control facility centres on 11.4 hectares of land. Phase 3 includes landscape greens, 14 hectares wadi channel with green, wide peripheral buffer on 1.50 hectares of land and internal roads on 63.48 hectares of land. Phase 4 includes 7.33 hectares truck terminal facility building, 4 hectares electric substation, 4 hectares elevated service reservoir and associated facilities.

PROJECT START 2008-2025 HOSPITALITY & RESIDENTIAL

Al Nakheel Integrated Tourism Complex BUDGET $805 million CLIENT Nakheel PJSC TERRITORY Al Rumais, Oman DESCRIPTION The project’s scope of work consists of a tourism complex comprising three (4and 5-star) international hotels, 259 villas, 55 townhouses, 266 apartments, serviced apartments, 476 units building, a lagoon promenade and a traditional mixed-use souk, a shopping mall, an aqua park, and a school located at Abu Nakheel coast in Al Rumais, Barka, Oman. The project covers 500,000 square metres of leasehold land, with 833 metres of waterfront overlooking the Sea of Oman. The project features a man-made crystal lagoon.

PROJECT START 2016 - 2026 INFRASTRUCTURE

Duqm Dual Carriageway Road & Bridges (NR 32) BUDGET $470 million CLIENT Duqm Special Economic Zone Authority (SEZAD)

TENDERS

TERRITORY Al Wusta, Oman DESCRIPTION The project’s scope of work involves the construction of dual carriageway roads and bridges for National Road (NR) number 32 located at Duqm, Al Wusta, Oman. The project also includes service roads, roundabouts, tie-in roads to existing or ongoing construction roads, culvert crossings, utilities, street lighting, drainage structures, and ancillary works. The project will consist of a total of 51km.

PROJECT START 2017-2023

BAHRAIN RESIDENTIAL

Sarat Residential Housing BUDGET $400 million CLIENT Diyar Al Muharraq TERRITORY Diyar Al Muharraq, Bahrain DESCRIPTION The project’s scope of work consists of a residential housing project located at Diyar Al Muharraq, Bahrain.

Sarat District is a community of residential homes designed around landscaped gardens that is financially priced to comfortably cater to the middle class.

PROJECT START 2010-2022 OIL & GAS

Bahrain Non Associated Gas Compression Facilities BUDGET $360 million CLIENT Tatweer Petroleum TERRITORY Bahrain DESCRIPTION The project’s scope of work involves the construction of non-associated gas compression

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built-in fibre optic cable (25km), three 3-core, 66 kilovolt XLPE underground cables on mainland Bahrain (5km), three 3-core, 66 kilovolt, XLPE underground cables on Hawar Island (5km), switchgear, installation of reactors, an auxiliary power supply system and control and protection systems.

PROJECT START 2018-2022

KUWAIT facilities (NCF), installation of a gas lift, gas injection unit located in Bahrain. As per the new gas management strategy and since most of the associated gas/residue gas will be utilised for gas lift, the burden on the Khuff reservoir is increased to compensate and make up. Nevertheless, the revised oil depletion strategy requires an increased gas injection at reservoirs to improve oil recovery. Hence, it has been decided to install NCF as a long-term solution to meet the NAG demand for Maudded Gas Injection (MGI) and sales gas.

PROJECT START 2019-2022 EDUCATION

Ahlia University Campus BUDGET $110 million CLIENT Ahlia University TERRITORY Al Madina Al Shamaliya, Bahrain DESCRIPTION The project’s scope of work consists of a university campus located at Al Madina Al Shamaliya, Bahrain. The new campus will accommodate up to 10,000 students and comprises an educational institute, academic spaces, recreational and sports facilities, green space, library,

food court, parking, installation of safety and security system and student residences.

PROJECT START 2016-2022 INFRASTRUCTURE

Hawar Island 66KV Submarine & Underground Cable Works BUDGET $125 million CLIENT Bahrain Electricity & Water Authority TERRITORY Hawar Island, Bahrain DESCRIPTION The project’s scope of work involves the installation of 66 kilovolt submarine and underground cable works for electricity supply Hawar Island in Bahrain. The project also includes installation of three 3-core, 66 XLPE submarine cable with

RESIDENTIAL

Sabah Al Ahmed Township Residential Complex BUDGET $270 million CLIENT Public Authority for Housing Welfare TERRITORY Kuwait City, Kuwait DESCRIPTION The project’s scope of work consists of a residential complex located at East Sabah Al Ahmed, Kuwait City, Kuwait. The project also includes 597 houses, public buildings, roads, infrastructure works and parking facilities.

PROJECT START 2019-2024 INFRASTRUCTURE

Road Network at Kuwait International Airport BUDGET $205 million CLIENT Kuwait Ministry of Public Works TERRITORY Kuwait City, Kuwait DESCRIPTION The project’s scope of work consists of road works that will link at Magwa Road, Kuwait City with the passenger terminal under construction at the Kuwait International Airport.

PROJECT START 2016-2022

MEConstructionNews.com | February 2020

52

PROGRESS REPORT

Final update

800MW third phase of MBR Solar Park to be operational by April 2020 Current work focusing on operational preparations to evaluate readiness of substation

T

he 800MW third phase of the Mohammed bin Rashid Al Maktoum Solar Park will be operational by April 2020, the managing director and CEO of Dubai Electricity and Water Authority (DEWA) has announced. Speaking during a site visit to the facility, Saeed Mohammed Al Tayer said that it will be the largest single-site solar park in the world,

based on an independent power producer (IPP) model. The park has a planned capacity of 5,000MW in 2030, with investments of $13.6bn.

During the site visit, Al Tayer was briefed by Fawaz Al Muharrami, CEO of Shua’a Energy 2, on the construction progress of the third stage. He explained that it would be operational in April with a 300MW capacity, using photovoltaic technology across the solar farms.

Work is currently focusing on operational preparations to evaluate the readiness of the substation.

Once primary tests are complete, the substation will undergo pilot operational tests.

DEWA is building the 800MW photovoltaic third phase of the solar park in three stages, a statement said.

It is being developed in partnership with a consortium led by Abu Dhabi

February 2020 | MEConstructionNews.com

$13.6bn Total investment in MBR Solar Park

Future Energy Company, Masdar and EDF Group, through its subsidiary EDG Energies Nouvelles. The 200MW first stage was operational in May 2018, while the 300MW second stage was operational in August 2018.

The solar power projects currently operational in the park have a capacity of 713MW, with a planned capacity of 1,013MW by April 2020. DEWA is currently implementing four more projects with a capacity of 2,150MW at the solar park, bringing the total capacity of the current five phases announced to 2,863MW. Furthermore, the authority intends to reach 5,000MW by 2030, to achieve the objectives of the Dubai Clean Energy Strategy 2050 – to produce 75% of Dubai’s total power output from clean energy and make Dubai the city with the lowest carbon footprint in the world by 2050.

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