Infrastructure Middle East May 2014

ISSUE 004 | MAY 2014

ANALYSIS

SPOTLIGHT

China hard landing A slowing dragon could spell trouble for the GCC

Future power Rental power leaders analyse market prospects

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CONSTRUCTION

TRANSPORT

Kuwait’s main artery The transformation of Jamal Abdul Nasser Street

The great metro rush Saudi Arabia and Qatar go all out for the metro

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THE WAY FORWARD

DISTRICT COOLING IS ONLY HALF-WAY THROUGH TO ESTABLISHING ITSELF AS A FULL-FLEDGED UTILITY

PUBLICATION LICENSED BY IMPZ

PLUS OUR TOP 10 QATAR INFRASTRUCTURE PROJECTS

At the 2014 Construction Machinery Show we sold 70 units and 100 more units are under discussion. We have delivered a positive message to our existing clients, our competitors, and grabbed new clients.

I think gaining such an appreciation from all members in the construction equipment sector is a great honour and will encourage us to work very hard to keep the same level of style, image, and standards.”

This year the CM Show team delivered an exhibition Saudi deserves. For years, we have seen a vision in this Show and this year the vision was achieved. We wanted quality traffic and we saw equipment and company owners; and we were able to offer some promotions to entice sales.

I saw an increase in our sales immediately.

Our principles, Doosan and Everdigm, really enjoyed themselves. We anticipate the upcoming years to be even better.”

The Construction Machinery Show was perfect from an awareness point of view.

We explained Roots Group Arabia’s capability of covering the construction industry with all of its needs and requirements. The attendance was good especially during weekdays and towards the end of the exhibition. See you next year.”

Al-Qahtani & Sons Khaled El Shatoury, Managing Director

Saudi Diesel Equipment Ahmed Alkooheji, Marketing Manager

Roots Group Arabia Abdulaziz Felemban, Brand Manager

Co-located with

Raz Islam Publishing Director raz.islam@cpimediagroup.com Mobile: +971 50 451 8213

Michael Stansfield Commercial Director michael.stansfield@cpimediagroup.com Mobile: +971 55 150 3849

CONTENTS

004 May 2014 30

COVER STORY

REGULARS

Cooling conundrum

04 Regional update

While everyone agrees that District Cooling (DC) has tremendous potential in the region, the sector is yet to establish itself as a critical utility infrastructure Report by Anoop K Menon

26

TOP 10 FEATURE

Qatar Infrastructure projects Qatar is planning to spend nearly US$205 bn on infrastructure between 2013 and 2018 as it gears up to host the 2022 FIFA World Cup. Infrastructure ME brings you a slice of the action

Oman’s Liwa Plastics Project; Saudi Aramco’s shale gas plans & more

08 In focus Making UAE’s skies safer; GPCA’s SQAS programme; GE’s bid for Alstom

19 Analysis Impact of a Chinese slowdown on the GCC

23 Infrastructure tenders 54 Executive Insight EPC opportunities in solar industry

58 Infra Insight Encouraging science among students

59 Events 60 Infrastructure milestone This month: Jebel Ali Port

INDUSTRY SECTORS CONSTRUCTION

34 Building Kuwait’s main artery

FREE ZONES

50 All inclusive growth

One of the country’s most important roadways, Jamal Abdul Nasser Street is being expanded into a massive project worth more than $800 m

Peter Fort, CEO of Ras Al Khaimah Free Trade Zone Authority tells Infrastructure ME how the free zone’s cost effectiveness is paying dividends

Report by Shruthi Saraf

Report by Shruthi Saraf

CONSTRUCTION

TRANSPORT

38 The Master Builder

Sir John Armitt, the man behind the London Olympic Games on the lessons that Qatar and Dubai must pay heed to

52 The great metro rush

Report by Gavin Davids

Forget the GCC Rail – it’s the Metro that has the GCC in its thrall as we bring you the latest developments from Qatar and Saudi Arabia where projects are already underway

SPOTLIGHT

HEALTHCARE

46 Future power

Infrastructure ME speaks to leading power rental companies in the region to assess their short-to-medium term capabilities for meeting the ever growing demand for power

56 Growth in double digits

The GCC is poised for a huge surge in healthcare consumption driven by robust population growth, rising income levels and government-led investments in hospitals May 2014

INFRASTRUCTURE MIDDLE EAST

01

INTRODUCTION

Links that bind tage 1 of the UAE’s national rail network is expected to start operations any time, with trial runs already underway on the 264 km railway line from Ruwais to Shah. Top officials of Etihad Rail have stated in recent industry forums that design and build contracts for Stage 2, which will extend the rail line to Dubai, Oman and Saudi Arabia are getting finalised. A pan-UAE rail network that will transport freight (and eventually passengers) could become a reality by 2018 as promised.

Dubai winning the Expo2020 is seen as an achievement that ignited national pride and brought the seven emirates of the UAE closer.

Last month, Mubadala Development Company of Abu Dhabi and the Investment Corporation of Dubai announced the official incorporation of Emirates Global Aluminium (EGA), created by integrating their respective aluminium interests in Emal and Dubal respectively. There is also a talk of merging the stock exchanges of Dubai and Abu Dhabi.

Whether it is Dubai’s ENOC making investments in oil storage facilities in Fujairah or Abu Dhabi building desalination plants to meet the water and power needs of the Northern Emirates or the Emirates National Grid (which has been overshadowed by the GCC Grid), it is clear that development of inter-emirate infrastructure boosts economic bonds and eases their integration with the global economy.

UAE needs to build quality infrastructure to keep its economy competitive, and national infrastructure projects such as Etihad Rail have a crucial role to play in this regard. Such developments also provide pathways for federal authorities to push ahead with key policy initiatives necessary to take the country ahead.

China has used large infrastructure projects such as super highways and high-speed rail networks not only to make an international statement about its status as a global power, but more importantly, to distribute the wealth created in its coastal belt to other parts of the country. Ambitious pan-UAE initiatives such asEtihad Rail, Expo 2020 or even the creation of EGA should be seen as steps that not only strengthen the process of national integration but also project UAE’s arrival on the global stage.

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Anoop Menon Editor Infrastructure Middle East anoop.menon@cpimediagroup.com

GROUP GROUP CHAIRMAN AND FOUNDER DOMINIC DE SOUSA GROUP CEO NADEEM HOOD GROUP COO GINA O’HARA PUBLISHING DIRECTOR RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 EDITORIAL DIRECTOR VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5713 EDITORIAL EDITOR ANOOP K MENON anoop.menon@cpimediagroup.com +971 4 375 5473 ASSISTANT EDITOR SHRUTHI SARAF shruthi.saraf@cpimediagroup.com +971 4 375 5715 CONTRIBUTING EDITOR ASHISH SARAF ashish.saraf@cpimediagroup.com +971 4 375 5495 ADVERTISING COMMERCIAL DIRECTOR JUDE SLANN jude.slann@cpimediagroup.com +971 4 433 2857 SENIOR SALES MANAGER JUNAID RAFIQUE junaid.rafique@cpimediagroup.com +971 4 375 5716 SALES MANAGER SANDRA SPENCER sandra.spencer@cpimediagroup.com +971 4 375 5473 MARKETING MARKETING MANAGER LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498 MARKETING ASSISTANT BARBARA PANKASZ barbara.pankasz@cpimediagroup.com +971 4 375 5499 DESIGN ART DIRECTOR SIMON COBON SENIOR DESIGNER MARLOU DELABEN CIRCULATION AND PRODUCTION CIRCULATION AND DISTRIBUTION MANAGER ROCHELLE ALMEIDA rochelle.almeida@cpimediagroup.com +971 4 368 1670 DATABASE AND CIRCULATION MANAGER RAJEESH M rajeesh.nair@cpimediagroup.com +971 4 440 9147 PRODUCTION MANAGER JAMES P THARIAN james.tharian@cpimediagroup.com +971 4 440 9146 DIGITAL DIGITAL SERVICE MANAGER TRISTAN TROY MAAGMA Published by

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REGIONAL UPDATE

and Emirates Aluminium (EMAL), whose combined annual production currently accounts for 50% of the total primary aluminium produced within the GCC region.

UAE The Abu Dhabi Executive Council has approved several infrastructure and service projects worth US$10.16 bn to enhance the emirate’s development and economic growth.

These projects will be implemented this year as part of five-year allocations of approximately $80.89 bn.

This year’s allocations include $3.46 bn for housing and social facilities, $3.24 bn for government management, $680 m for health care projects, $650 m for education, $4.76 bn for water and electricity and $154 m for food commodities.

Mubadala Development Company of Abu Dhabi and

Mega pact UAE leaders at the initial signing ceremony of EGA held last June

Investment Corporation of Dubai have officially incorporated Emirates Global Aluminium (EGA) created by integrating their respective aluminium interests.

The jointly-owned, Abu Dhabi based aluminium giant

will be managed by a board of directors that will be chaired

by HE Khaldoon Khalifa Al Mubarak, while HE Saeed Mohammed Ahmed Al Tayer will become its vice-chair.

EGA’s core operating entities are Dubai Aluminium (DUBAL)

received a $6.3 m investment from a New York-based asset manager to fund its Oman expansion.

Savannah said it will kick off a fast paced exploration programme in May with a view to begin drilling in the second half of 2014.

Oman The $3.6 bn Liwa Plastics Project (LPP) is expected to stay on schedule with Oman Oil Refineries and Petroleum Industries Company (ORPIC) awarding the Project Management Company (PMC) and the Front End Engineering and Design (FEED) contracts.

The former was picked up

by New Delhi-based Engineers India (EIL) and the latter by the Chicago Bridge & Iron Company (CB & I) operating out of The Hague, Netherlands.

The plant will be established in Sohar Industrial Port Area, adjacent to ORPIC’s refinery and petrochemical plants and is scheduled for completion in 2018. It will enable ORPIC to produce polypropylene and, for

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Bahra cables is in the process of opening its office in Dubai to improve its sales and marketing activities in the country. It has leased an office at the Emirates Financial Towers with an official inauguration scheduled for mid-May. “Our medium voltage products have been approved by DEWA and ADWEA and we are expecting more business from UAE. We are doing quite well in Saudi Arabia and other Gulf regions,” said Mazen Kassmy, Export Manager at Bahra Cables. He added that Iraq is another major market, where the company has signed three contracts in high voltage business.

Copper legacy Sohar region has been mining copper since the Bronze Age

the first time, polyethylene, the plastic most in demand globally.

Savannah Resources is all set to start drilling for copper in Oman after acquiring the mining interests of international May 2014

mineral exploration firm Gentor Resources.

Savannah is set to acquire Gentor Resources’ interests in block 5 and block 6 that cover 870 sq km of a highly prospective copper-rich belt in Oman.

Recently, Savannah Resources

Petroleum Development Oman (PDO) has awarded an Engineering and Procurement (EP) contract worth more than $1 bn to Petrofac to provide services for its Rabab Harweel Integrated Project (RHIP).

RHIP, located in the Harweel Cluster of fields in the south of Oman, will deliver peak export of 4.9 MMs m3/day of sweet gas and 9,700 m3/day of condensate in addition to 16 MMsm3/day of high pressure sour injection.

Petrofac is expected to focus on delivery by accessing the local supply chain and recruitment of local resources.

REGIONAL UPDATE

Qatar Qatar has announced a budget of $62 bn for the FY 20142015, up 3.5% from last year.

The budget is based on an oil price of $65 per barrel.

“The budget has allocated enough funds for investments in the health and education sectors as well as for the execution of mega infrastructure and transport projects such as the rail projects related to the preparation for hosting the 2022 World Cup,” said Qatari Finance Minister Ali Sharif Al Emadi. He added that $24 bn has been allocated for key projects.

Allocations for health, education, infrastructure and transport rose by 54% in the 2014-2015 budget, compared to 48% in the last fiscal year. In the health sector, funds have

New hub A Qatar Airways flight was the first to officially land on HIA’s East

been allocated to complete the Sidra Medical and Research Centre and expand facilities at Hamad General Hospital.

In education sector, funds have been allocated for expanding Qatar Foundation for Education, Science and Community Development

and Qatar University.

Six years behind schedule, Qatar’s new Hamad International Airport (HIA), a key part of the country’s plans to become a regional aviation hub, opened to passenger

traffic last month. The airport is operated by Qatar Airways.

Initially, 10 budget carriers have started operating out of the airport while other airlines including Qatar Airways will start services from HIA from May 27.

The $15.5 bn HIA was supposed to be completed in 2009, but missed several opening deadlines since then. In January this year, the authorities said the project would be accelerated to integrate all construction phases to complete the airport in a shortened time.

HIA and Airport City (together comprising the New Doha International Airport project) span 29 sq km, 60% on land reclaimed from the Arabian Gulf. The project includes 100 buildings of various uses. The Passenger Terminal features a massive internal area of 600,000 sqm and has three concourses

REGIONAL UPDATE

Water Treatment Plant project was named Bahrain’s Sustainable Project of the Year. The project is part of the company’s environmental strategic plan which will provide secondary treatment to the refinery’s waste water.

Bahrain Bahrain is keen to build affordable housing projects in cooperation with Chinese construction companies.

Minister of Housing, Bassem bin Yacoub Al-Hammer made the remarks during a meeting with a Chinese delegation headed

by Vice Minister of Commerce Li Jinzao, in the presence of Bahrain’s Ambassador to China Dr Anwar Yusuf.

The minister highlighted Bahrain’s two-pronged housing plan which includes the construction of new cities as well as increasing the number of residential units and blocks in all five governorates.

The Ministry of Works’ North Manama Causeway project and

North Manama Causeway The project consists mainly of flyovers and roads

Bahrain Petroleum Company’s (BAPCO) Install Refinery Waste Water Treatment Plant project were named national winners of the MEED Quality Awards for Projects 2014.

The North Manama Causeway project, submitted by Hyder

Consulting Middle East, won the Transport Project of the Year award. The project includes a 2.4 km-long, 100m-wide reclaimed causeway, two marine bridge crossings and a separate loopshaped flyover.

Bapco’s Install Refinery Waste

under way to hold bids for the Saudi–Egyptian electricity grid project, with the aim being to hold the bids by December.” The project’s estimated cost of $1.6 bn project will be split equally between Saudi Arabia and Egypt.

Saudi Arabia Saudi Arabia’s Public Investment Fund will provide $2 bn in financing for a phosphate project planned

by Saudi Arabian Mining Company (Maaden), Saudi Basic Industries Corp (SABIC) and Mosaic.

The 17-year loan will be repaid in twice yearly instalments after a five-year grace period. The Waad al-Shamal project, in the far north of Saudi Arabia, will involve total investment of around $9 bn for a phosphate mine, several major processing facilities, smaller downstream factories and a residential area. In December, Maaden said it had secured $4.2 bn in financing commitments from banks. Production is expected to commence in 2016.

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BT partners with Viva to build a global IP exchange interoperability hub in Bahrain.

As per the agreement, a Global IP Exchange (GIPX) interoperability hub will be built in Bahrain.

The hub is targeted to be launched in the first quarter of 2015. BT IP Exchange is an interoperability service that enables fixed, mobile, legacy and next-generation networks to interconnect in a way that minimises the cost and technical burden of protocol conversion.

The Empty Quarter Saudi Aramco has made shale appraisals in the deep desert

However, the company reported a 48% drop in net profit for the first quarter of this year, blaming it on depressed metal and commodity prices.

Tenders for subcontractors involved in the Saudi-Egyptian May 2014

electricity grid project is expected to be announced later this year, said Gaber El Desouky, president of Egypt’s state-owned electricity company.

Speaking to Asharq Al-Awsat, Desouky said: “Preparations are

Saudi Aramco is planning to produce 200 m cubic feet per day of shale gas (equivalent to 5.7 MMs m3/day) by 2018, which will be used to produce gas to power Maaden’s phosphate project and power plant.

Last year, CEO Khalid Al Falih said the company was ready to commit gas for the development of a 1,000 MW power plant, which will feed a phosphate mining project that Maaden is developing for the Waad al Shamal Mining City. Saudi Aramco has already made appraisals in the northwest area, the Eastern Province.

REGIONAL UPDATE

it has also bagged an MEP deal worth $16 m for a healthcare facility in Shuwaikh and two commercial developments in Al-Qebla. All the projects are slated to be delivered in 2015.

Kuwait Kentz Corporation has been awarded a five-year cost reimbursable contract by Fluor Kuwait Company, with an estimated value of $125 m.

Under the terms of the contract, Kentz will supply multi-discipline technical and supervisory personnel on a reimbursable basis to meet Fluor’s supplementary manpower requirements on Fluor’s project management contract for Kuwait Oil Company.

Tush Doshi, Group President, Engineering and Projects business unit for Kentz said “We are very pleased to have been awarded this major contract . Our focus on client delivery continues to see long-term benefits for the Group and we are delighted to

Spanish skils Kuwait, Spain sign transportation infrastructure deal

be continuing our long standing relationship with Fluor in Kuwait, a region where we have served the needs of capital projects since the early 1980s.”

Drake and Scull Kuwait, a subsidiary of Drake & Scull

International (DSI), has bagged three major projects worth $35 m in Kuwait.

It has won a major engineering contract worth $18.51 m for Sheikh Jaber Al Ahmad Cultural Centre in Kuwait City. The company further revealed that

Kuwait and Spain have signed a Memorandum of Understanding (MoU) to bolster cooperation in the field of transportation infrastructure.

The MoU was signed by Minister of Public Works and Minister of Electricity and Water Abdulaziz Al-Ibrahim and Spanish Minister of Public Works and Transportation Ana Pastor Julian.

According to MIT Review, six of the world’s top ten transportation concession companies are based in Spain. Consortiums led by Spanish companies have won contracts for the Doha Metro as well as Riyadh Metro.

IN FOCUS

AIR TRAFFIC

Making UAE’s skies safer The UAE is the only GCC country to be granted full membership in European Union’s Safety Assessment of Foreign Aircraft programme. By Anoop K Menon nited Arab Emirates (UAE) has become the first non-European state to be granted full membership in European Union’s Safety Assessment of Foreign Aircraft (SAFA). The agreement was finalised last month during the visit of European Aviation Safety Agency’s (EASA) Executive Director, Patrick Kym to the UAE. The UAE is the first member from the Gulf Cooperation Council (GCC) region and the second non-EU member after Morocco to be made a full member of SAFA. HE Saif Mohammed Al Suwaidi, Director General of the General Civil Aviation Authority (GCAA) said: “Over the past years several far-reaching initiatives were taken which helped in the transformation of the UAE aviation sector and in the establishment of a robust and coherent safety oversight system in a very short time span.

“The GCAA, in cooperation with its strategic partners and in particular EASA, has built an efficient and safe air transport system to support the economic growth of the UAE and improving the quality of life and safety of UAE citizens.”

Ismail Mohammed Al Balooshi, Assistant Director-General, Aviation Safety Affairs said the EU SAFA programme will help UAE address future aviation challenges. Last year, the UAE saw 784,000 aircraft movements. While the country has a robust system in place to control the safety of its national carriers, foreign carriers that use UAE airports and airspace are the responsibility of their respective nations.

“We felt there was a need to establish means of controlling risks imposed by the foreign operators,” said Al Balooshi. “Risk is inherent to aviation but our role is to maintain safety at an acceptable level while fostering the industry’s growth. We wanted access into an existing system which has vast resources

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Dubai Airport Admission into SAFA is another milestone in GCAA’s quest for safer air transport in the UAE

and experience and SAFA fulfils that criteria admirably. Its existing database holds more than 100,000 reports; moreover, they add 10,000 reports annually to their database.”

Al Balooshi said that the EU system will meet GCAA’s need for quantitative measures.

“The more data that you have, your ability to target inspections is much better. But they have also worked with us to ensure that quality of the data is also good,” he added.

MORE INSPECTIONS ON ANVIL

As part of the membership, GCAA is expected to increase the number of inspections it carries out to 300 a year. The authority will conduct random ramp inspections of foreign aircraft coming into the UAE. The results go into a database which will also be accessible to the EU. At the moment, UAE has 10 inspectors focussing only on foreign operators. Both UAE and EU will only be sharing data with each other’s foreign operators. However, there won’t be a blanket adoption of each other’s blacklists.

“Our lists may converge because we are using the same platform. However, we will

only use SAFA as a tool in our decisionmaking process,” assured Al Suwaidi.

Sultan Mohamed Al Zara, Director of Foreign Operators Department, GCAA pointed out that the programme doesn’t add new or additional standards; rather, what it does add is a new tool to GCAA’s toolkit to measure compliance with international standards that are applicable to all operators, local and foreign. “In the short duration we became part of the programme, our interactions with the operators have been positive because they know the information collected will reflect on their image outside the UAE. They have also moved quickly to close the findings that were raised,” he said.

“Operators need to understand is that what happens here will not stay here but will be shared with the wider community,” said Al Balooshi.

“Access to the SAFA platform will enable us to analyse trends in terms of specific operators, violations, type of airplanes and even countries.”

Currently, there are 500 operators in the UAE, domestic and foreign.

They will be subject to GCAA’s updated inspection and data sharing regime.

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IN FOCUS

SUPPLY CHAIN

Greener logistics GPCA drives sustainability and efficiency in the petrochemical supply chain with the launch of the Gulf SQAS programme he petrochemical industry in the region has been making an effort to transform its businesses to be greener and on its part, the Gulf Petrochemicals & Chemicals Association (GPCA) has been introducing a number of sustainability initiatives.

One such strategy, which primarily extends the Responsible Care Programme, GPCA has launched a three-year assessment programme across the GCC region that is expected to promote supply chain efficiency, flexibility and transparency in the petrochemical and chemical industry.

The Gulf Sustainability and Quality Assessment System (SQAS) will be a uniform, independent and standardised programme for petrochemical logistics service providers that will enable companies to track and monitor progress in their environment, health, safety, security and quality (EHSS&Q) processes, helping them to identify and improve weak areas in the supply chain and develop costefficient practices that shorten lead times and are environmentally sustainable. Reports

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generated from the assessment will assist petrochemical and chemical companies in evaluating their service providers.

“The Gulf SQAS programme will measure the EHSS&Q standards of all the logistics service providers in the six GCC countries,” said Alan Izzard, Director of GPCA’s SQAS programme. “Certified independent assessors will evaluate a variety of technical aspects related to chemical and petrochemical warehousing, road and future rail transport and associated chemical cleaning stations, which are crucial elements of a product supply chain.”

The programme will lead to an efficient and integrated system for logistics companies, according to Izzard, driving consistent alignment with the advancements in the petrochemical and chemical industries worldwide. It will also ensure that international benchmarks are established outside the manufacturing facilities.

The Gulf SQAS programme will extend the chemical industry’s Responsible Care initiative beyond the fences of the petrochemical plants. Responsible Care is a set of standards for environmental, health, safety and security for the chemical industry. The

GPCA introduced region specific guidelines for Responsible Care in 2009, which are aligned with initiatives from United Nations Environment Programme, United Nations Development Programme and the International Council of Chemical Association (ICCA).

“The Gulf SQAS programme is a natural step forward in our drive towards making the region’s petrochemical industry efficient, safe and successful,” said Dr Abdulwahab Al Sadoun, Secretary-General of the GPCA. “The initiative demonstrates that sustainability cannot be exercised in isolation, and needs to be undertaken in a holistic and integrated manner.”

According to the GPCA, the programme has the support of the region’s major petrochemical companies.

“To date, 29 of the region’s main players, accounting for 87% of the total regional production volume, signed a declaration of support for this program” said Dr.Sadoun. “It is testimony of how the industry is evolving with a vision to adopt long term perspectives.”

SQAS was first initiated by Cefic, the European Chemical Industry Council and sister organisation of the GPCA.

“Certified independent assessors will evaluate a variety of technical aspects related to chemical and petrochemical warehousing, road and future rail transport” ALAN IZZARD, DIRECTOR OF GPCA’S SQAS PROGRAMME

Making the petrochemical supply chain sustainable The Gulf SQAS programme will also lead to an efficient and integrated system for logistics companies

May 2014

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IN FOCUS

CABLES

Ducab reports 22% revenue growth The company’s expanded product range now includes 60-year-life nuclear power cables, aluminium and rubber cables

Ducab’s Chairman, Eng. Jamal Salem Al Dhaheri The cable major is quietly filling the gaps in its product portfolio

ucab, one of Middle East’s leading manufacturer of cables and cabling products, has announced its annual results for 2013. Building on strong demand locally and abroad, Ducab sales revenues have grown to US$1.36 bn (AED 5 bn), marking an increase of 22% over 2012 sales. Growth was across the board as cable sales touched $790 m (up 14%), sales of Rod and wires from Ducab’s Copper Rod Plant touched $570 m (up 34%), and Ducab High Voltage (DHV) cable sales reached $33.22 m (up 660%).

Ducab’s Chairman, Eng. Jamal Salem Al Dhaheri, said: “The positive results achieved by the company over the last year is testament to the strong leadership, the innovative culture, and the ability to identify and move towards market trends. As an entirely UAEowned company, we find many parallels with

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the growth and success of our nation, and remain committed to representing the UAE as we grow.”

The company recently completed its first overseas acquisition with the purchase of AEI Cables of the UK in March 2014. AEI is a specialist producer of mainly rubber cables for niche market sectors such as defence, transport and fire protection. AEI has in-house

Key 2013 Projects • • • • • •

ENEC’s Barakah nuclear facility, UAE Masdar’s Shams 1 CSP, Abu Dhabi Mohammed Bin Rashid Al Maktoum Solar Park Takreer Dubai Airport EMAL expansion

compounding expertise and manufacturing capability, and is certified to work with bluechip customers such as British Aerospace and the London Underground.

Al Dhaheri added: “Our growth continues as we expand into new product areas, new geographies, and even new industry sectors.

Our dynamism is the foundation for our strategy, and we will continue to explore growth avenues to ensure the best for our employees, stakeholders, and the community within which we operate.”

The company is actively growing its product range with new offerings in 60-yearlife nuclear power cables, aluminium cables, rubber cables, along with relevant components and accessories.

Last year, Senaat and Ducab announced the formation of a joint venture company to collaborate on a project to build a 50,000 tonnes per annum aluminium rod mill. The new entity, ‘Ducab Aluminium’ will manufacture Electrical Conductive (EC) grade and aluminium alloy rods, wires, and bare overhead conductors.

Liquid aluminium will be supplied from the EMAL smelter in Taweelah, Abu Dhabi. The total cost of the project is expected to be in the region of $60 m.

Ducab has already made significant inroads into the Far East, the subcontinent, Africa, and Europe. Of these, Africa and Europe appear to hold the most promise, especially in infrastructure development, construction, oil exploration, and industrial development activity.

Ducab is an active member of the broader community and works with the Civil Defence authorities to enhance awareness of electrical fire safety. Ducab is also represented at Emirates Authority for Standardisation and Metrology (ESMA) to standardise specifications and quality of low-voltage cables used in the UAE. As a partner in the Government’s ‘Absher’ initiative, UAE nationals represent 33% of senior management and 20% of all staff.

IN FOCUS

CONSOLIDATION

GE bids for Alstom’s energy business If the proposed acquisition of its energy activities by GE goes through, Alstom hopes to reinvent itself as a standalone leader in the rail industry lstom has received a binding offer from General Electric (GE) to acquire its energy business. The scope of the transaction includes the thermal power, renewable power and grid sectors, as well as corporate and shared services. With 65,000 employees, these businesses registered $20.62 bn in sales in the fiscal year 2012-13. The proposed price is a fixed price representing an equity value of $17.2 bn and an enterprise value of $16 bn.

Should this offer be approved and completed, Alstom would refocus on its transport activities, where it is one of the global leaders. Alstom would use the sale proceeds to strengthen its transport business and give it the means of an ambitious development, pay down its debt and return cash to its shareholders.

Alstom’s roots in the transport business go back 100 years with Alstom Transport being involved in rail transport equipment, systems, services and signalling for urban, suburban, regional, main line and freight transportation.

The Alstom board of directors has positively received GE’s offer and has appointed a committee of independent directors led by Jean-Martin Folz to review the transaction

by June 2, 2014 taking into consideration all stakeholders interests including the French state. Patrick Kron and the committee will liaise with the representatives of the French State to consider their views.

Should the Board conclude in favour of the sale, Alstom will consult its employees’ representative bodies before entering into a definitive agreement with GE. Completion of the transaction would be subject to merger control and other regulatory clearances. In accordance with the AFEP-Medef code, the final approval of the transaction will be submitted to the shareholders. Bouygues, a 29% shareholder of Alstom, has committed not to sell

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Rescue act Patrick Kron, Chairman and CEO of Alstom

ALSTOM-GE synergies • In thermal power, Alstom and GE have complementary offerings in steam turbines and gas turbines technology.

Alstom will add balance of plant and turnkey capabilities to enhance the combined entity’s power offerings • In wind power, Alstom is small in onshore wind with a competitive offering in offshore wind while GE is focused on onshore wind • In hydro power, Alstom is a prominent global player while GE is not present • In service, Alstom’s comprehensive product portfolio matches the global presence of GE • In Grid, Alstom and GE are complementary in the products and solutions they offer and in their geographic focus

its shares until this approval and has indicated that it will support the recommendation of the Alstom Board of Directors.

In the context of this binding offer, Alstom may not solicit offers from third parties for the acquisition of all or part of its energy business.

It has however reserved the right to respond to unsolicited offers for its entire energy business and engage in discussions with bidders demonstrating a serious interest that could lead to a superior offer for Alstom. If, after having recommended GE’s offer, following its review, the Board of directors were to support another transaction, Alstom would owe GE a break-up fee equal to 1.5% of the purchase price.

The Board also reviewed a declaration of interest received from Siemens, regarding an alternative transaction. Siemens will have a fair access to information needed to make, should it decide to do so, a binding offer.

Patrick Kron, Chairman and CEO of Alstom, said: “The combination of the very complementary Energy businesses of Alstom and GE would create a more competitive entity to better service customer needs. Alstom’s employees would join a well-known, major global player, with the means to invest in people and technology to support worldwide energy customers over the long term.”

“The proposed transaction would allow Alstom to develop its Transport business as a standalone company, with a strong balance sheet to capitalise on opportunities in the dynamic rail transport market.”

Headquartered in St Ouen, the transport business generated $7.7 bn of sales in fiscal year 2012-13, is present in 60 countries and has 27,000 employees including 9,000 in France.

Henri Poupart-Lafarge, President of Alstom Transport said: “Thanks to its recognised technological leadership, global industrial footprint combined with a robust balance sheet, Alstom Transport would be ideally placed to capture growth opportunities in this dynamic market.”

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IN FOCUS

DESALINATION

An unorthodox approach The ‘Open Innovation’ competition launched by Saudi Aramco and GE is a global search for novel ideas that reduce desalination costs. By Anoop K Menon s the most strategic and critical issue facing the region and world today, sea water desalination merits global brainstorming of sorts to resolve its fundamental challenges. That belief led Nabil Al Khowaiter, Aramco Entrepreneurship Centre’s Director of Special Projects to team up with GE to launch an open innovation challenge to find renewable energy solutions for seawater desalination.

The emphasis on energy takes into account the fact that energy consumption can account for up to 70% of the desalination costs. The global production of desalinated water uses approximately 75.2 terawatt-hours of electricity per year, enough to power nearly seven million homes.

“Saudi Arabia, for example, uses the equivalent of 1.5 m barrels of oil per day to desalinate sea water,” said Al Khowaiter.

“This will not stop growing unless we find new ways to desalinate sea water.

We hope to change the paradigm through this international competition.”

The goal of this open competition is to solicit ideas from all over the world from the widest possible range of innovators, whether scientists, engineers, entrepreneurs or students that will lower the cost of desalination using renewable energy processes or new materials.

“The reason we wanted to make it an open innovation is because we don’t have a monopoly over knowledge or research,” said Al Khowaiter.

“With GE’s extensive experience with ecomagination contests, we thought they would be the ideal partner to launch this challenge.”

GE has enjoyed a successful track record in harnessing open innovation to solve technical challenges. The four preceding competitions focussed on the smart grid, breast cancer, traumatic brain injury diagnosis and more recently, improving the production of aircraft engine bracket using 3D printing.

“The notion that companies and

A

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INFRASTRUCTURE MIDDLE EAST

May 2014

Major alliance Both Saudi Aramco and GE will invest in short-listed technologies that show potential

corporations can solve technology challenges in silos or within their own walls is changing,” said Rania Rostom, Chief Innovation and Communications Officer for GE for Middle East, North Africa and Turkey.

“What is different and special this time is that we are solving together with one of our key global customers a major global challenge.”

MORE THAN THE PRIZE

The $200,000 challenge will be awarded to four winners at a prize of $50,000 each, and further investments towards commercialisation of the best ideas amongst all submissions will be considered.

Al Khowaiter pointed out that the main benefit for participants is not really the prize, but the opportunity to get investments from Saudi Aramco and GE. He continued: “The prize money could be useful for students or independent researchers.

However, we will invest in promising technologies not just the winning projects.

We are not going to dismiss anything because even fringe ideas have changed history.”

Aramco Entrepreneurship Centre and GE are assembling a group of international technical experts to evaluate the submissions. The competition also lays down specific parameters to make comparisons across different innovations easier. Successful technologies must: • Exceed current desalination benchmarks: >Cost ≤ $0.50/m3 >Meet WHO standards for potable water • Be implementable and economically viable in arid regions • Energy inputs from external sources into the process would be valued at $0.15/kWh • If net energy is generated by the process, it may be credited against overall process costs at $0.15/kWh. Interestingly, one aspect of the contest is integrating desalination with processes like mineral recovery to lower desalination costs.

“A few scientists in Europe have claimed that they can extract many valuable minerals from sea water which would make the water free as the value of these minerals would be very high,” said Al Khowaiter.

Switchgear Hanging Sign-3000x1250mm_OL.pdf

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Aegis Aegis • 12kV, 17.5kV and 24kV ratings • 12kV, 17.5kV and 24kV ratings • Vacuum circuit breaker enclosed in SF6 insulated tank for extra protection • Vacuum circuit breaker enclosed in SF6 insulated tank for extra protection • Easy integration with SCADA network for remote operation and control • Easy integration with SCADA network for remote operation and control • Intuitive single line mimic diagram for simple and safe operation • Intuitive single line mimic diagram for simple and safe operation • Suitable for indoor and outdoor applications • Suitable for indoor and outdoor applications • Various protection options (TLF, relays) to suit various customer needs • Various protection options (TLF, relays) to suit various customer needs • Low roof height designed for kiosks and mini substations • Low roof height designed for kiosks and mini substations

Sabre Sabre • Up to 24kV and 630Amps ratings • Up to 24kV and 630Amps ratings • Non extensible, extensible and modular range • Non extensible, extensible and modular range • Switching functions enclosed in a SF6 gas insulated steel tank, sealed for life • Switching functions enclosed in a SF6 gas insulated steel tank, sealed for life • Intuitive single line mimic diagram for simple and safe operation • Intuitive single line mimic diagram for simple and safe operation • Integrated earth and test facility for easy and safe cable test without removing cable connections • Integrated earth and test facility for easy and safe cable test without removing cable connections • Choice of TLF (time limit fuses) or self/auxiliary powered relay protection • Choice of TLF (time limit fuses) or self/auxiliary powered relay protection

Rapier Rapier AX AX

• 12 kV (15.5 kV) / 24 / 36 kV options • 12 kV (15.5 kV) / 24 / 36 kV options • Silicon Insulators • Silicon Insulators • Compact / robust • Compact / robust • Lightweight, universal base design for all voltages • Lightweight, universal base design for all voltages • Suitable for single cross arm mounting (preferred) and also ESI standard mounting and customer specific arrangements • Suitable for single cross arm mounting (preferred) and also ESI standard mounting and customer specific arrangements • Can be mounted horizontally (and vertically), pole top mounted or underslung • Can be mounted horizontally (and vertically), pole top mounted or underslung • Dependent Manual (DM) and Independent Manual Spring (IMS) assisted hookstick mechanism, and down pole handle • Dependent Manual (DM) and Independent Manual Spring (IMS) assisted hookstick mechanism, and down pole handle variants variants • Self latching Interlocking shoot bolt • Self latching Interlocking shoot bolt • Safety Lock cover (optional) • Safety Lock cover (optional) • AX can be provided with full remote control for automation (AX-A) or the automation can be retrofitted at a later date • AX can be provided with full remote control for automation (AX-A) or the automation can be retrofitted at a later date • Fully Certified • Fully Certified • Ice tested • Ice tested

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ANALYSIS

OIL & GAS

China lands hard on the GCC The economic slowdown in China could cause short-to-medium growth pangs for the region’s oil-exporters By Anoop K Menon

he growing risk of a hard landing for China’s economy would result in global growth weakening by an average of 0.4 percentage point annually over 2015-17, according to a scenario developed by economists at IHS. IHS economists discussed this scenario during the IHS Forum in Dubai last month.

The scenario assumes that the prospect of China’s GDP growth slowing substantially is high if the asset bubbles that have been building in the country finally burst.

“By connecting the dots using our extensive global economic modelling resources, it is apparent that if China sneezes, the rest of the world catches a cold, and for some countries that could develop into economic pneumonia,” said IHS Chief Economist Nariman Behravesh. “While the largest impact would be felt in Asia among China’s

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nearest trading neighbours, no country or region would escape fully unscathed.”

According to a recent World Bank report, China currently accounts for 14.9% share of global GDP. Financial Times economics editor Chris Giles wrote that China will likely replace US as the world’s largest economy this year, sooner than anticipated.

A one in three probability of Chinese hard landing – under IHS Global Link Modeltranslates into by 0.1 percentage point in world GDP growth in 2014 and a 0.5 percentage point in both 2015 and 2016. By the end of 2016, the level of world GDP is 1.2% lower than had China not experienced a hard landing.

The IHS scenario assumes a severe tightening of credit conditions following the crash of the housing market and default by major real estate developers, and also assumes a drop in confidence by domestic and international investors. This is followed by cutbacks in fixed investment and consumption, a slowing of real exports of goods and services,

and a significant erosion in domestic demand, causing China to experience deflation in 2015.

Rather than holding near 7.5% as expected, China’s real GDP growth downshifts to 6.6% this year and 4.8% in 2015, before gradually reviving.

MIDDLE EAST IMPACT OF CHINA SLOWDOWN

“A China hard landing would mean the Middle East would experience weaker exports, lower tourism and business activity, and probably a resurgence of risk aversion by global companies due to this new deterioration of the global economic situation, just at the moment when they thought the situation was finally improving,” said Behravesh.

“In an even weaker growth scenario than we’ve outlined, if China’s economy slowed to three to four per cent, then oil prices might fall to perhaps $50-60 per barrel,” he added.

“A hard landing in China would mean real GDP will be slower in the Middle East in the short run, but IHS does not expect the slowdown to have major long term

“It is apparent that if China sneezes, the rest of the world catches a cold, and for some countries, that could develop into economic pneumonia” IHS CHIEF ECONOMIST NARIMAN BEHRAVESH May 2014

INFRASTRUCTURE MIDDLE EAST

19

ANALYSIS

consequences on growth in the Middle East.

The growth slowdown would be a few decimal points, with the real GDP level in Saudi Arabia down by one per cent in 2018, for example.”

If the oil prices were to go to $80 per barrel and stay there, the capital expenditure of GCC countries, their expansion will likely be impacted.

“One has to factor in the responses of the government, the oil majors; there could be short term pain perhaps for a year or so,” said Behravesh.

Although a China hard landing would have direct implications on oil prices and exports to China, the implications on growth in other countries and regions, particularly in Europe, are also significant. Slower growth globally means weaker energy demand globally. Also, a China slowdown would have consequences on the future choices of financial investors. Lastly, tighter monetary conditions are expected in several emerging markets, such as Turkey, which have close ties with Middle East countries.

But the Gulf region can take some comfort from the fact that the global economy is improving, led by the pick-up of growth in advanced economies. IHS President and Chief Executive Officer Scott Key said: “This is good news for the region because it is happening at a time when a number of emerging markets have disappointed on the growth front. For example, Brazil is expected to grow less than 2.2% this year while Russia could slip into recession.”

“Despite the political troubles, the Middle East & Africa region as a whole is the third fastest growing region in the world.

Saudi Arabia and the UAE are growing at an average of 4-4.5% over the next five years, which is well above global average.”

IN NUMBERS

4.8%

China’s 2015 projected real GDP growth

$50-60

Per barrel price of oil if Chinese growth slow to 3-4% be 0.8% lower by 2018, due to the spill-over effects of lower revenue from oil exports.

However, with Chinese investment fuelling much of Africa’s growth, there are legitimate concerns about how a Chinese hard landing will affect the continent.

Behravesh said: “Barring countries like South Africa, Nigeria, most of Africa is vulnerable to a slowdown in China because they lack the financial resources of GCC countries.

Assuming that the China hard landing will last one or two years, companies targeting Africa with a long term vision needn’t be worried.”

By comparison, the impact of a Chinese hard landing is more subdued in North America, and Central and Southern Europe.

First, China’s demand for imports falls as economic activity slows. Imports of non-agricultural commodities, energy, and manufactured goods—and the countries exporting those goods and products to

China—suffer significant setbacks. That includes Chile and Malaysia, exporters of raw materials to China, and South Korea and Japan, as well as most of the European countries leading the continent’s growth— Germany, the United Kingdom, Slovakia, and several Scandinavian countries—all of whom are big exporters of manufactured products and equipment to China.

Second, as China’s economy slows, so too does global demand for commodities. Prices for several commodities fall. Comparing the scenario with the IHS baseline forecast, aluminium prices are 2.1% lower in 2014 and 13.5% lower in 2015; copper prices are 2.2% lower in 2014, but 16.8% lower in 2015; and iron ore is expected to be 7.4% lower in 2014 and 29.7% lower in 2015. Prices for cotton, coffee, and, to a lesser extent, wheat are also affected.

Lastly, global exchange rates would also be affected. Because several emerging markets are highly dependent on China for capital inflows to finance their current account and help finance their debt, slower growth in China causes financial investors to back away from riskier markets, which puts pressure on exchange rates and causes many countries to raise interest rates to prevent further capital outflows.

When these three factors are combined, the net result is a weaker growth path worldwide over the next three to four years, and heightened risks in several areas of the globe.

SCENARIOS FOR SPECIFIC MARKETS

The IHS scenario also examines ways in which an economic slowdown in China affects specific markets of the global economy.

Japan’s real GDP would be 1.1% lower by 2018, while Australia’s and Indonesia’s real GDP would be down 2.2% and 1.8%, respectively. But other regions would not be immune, such as Latin America, Africa, and the Middle East, where many countries are key suppliers of agricultural, industrial, and energy commodities to China. For example, real GDP in Saudi Arabia would

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INFRASTRUCTURE MIDDLE EAST

May 2014

Scenario builders IHS President and CEO Scott Key and Chief Economist Nariman Behravesh at the conference

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To learn how to reduce energy costs, visit: www.bentley.com/Reduce-Energy © 2014 Bentley Systems, Incorporated. Bentley and the “B” Bentley logo are either registered or unregistered trademarks or service marks of Bentley Systems, Incorporated or one of its direct or indirect wholly owned subsidiaries.

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TAKING DESIGN TO THE NEXT LEVEL

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STAR DESIGNERS USE THE TOOLS

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BIM IS MORE THAN PRETTY PICTURES

taKIng desIgn to the next level star desIgners use the tools

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the colour of bIM Is green bIM WIll use less, Waste less and pollute less

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BIM WILL USE LESS, WASTE LESS AND POLLUTE LESS

BRINGING IN A TROJAN HORSE

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A TALE OF TWO HANDSHAKES

SOFTWARE AND PROFESSIONALS MUST WORK TOGETHER

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THE OWNERSHIP SPAGHETTI

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WE WILL NEED NEW CONTRACTS

the oWnershIp spaghettI We WIll need neW contracts

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THE DNA OF FUTURE CONSTRUCTION

BIM WILL BECOME THE PLATFORM FOR THE WHOLE INDUSTRY

the dna of future constructIon bIM WIll becoMe the platforM for the Whole Industry

http://www.wspgroup.com/en/wsp-group-bim/BIM-home-wsp/ For more information about how we can add value to your project, please contact:

For more information about how we canBIM addLead) value to your project, please contact: Gerry McFadden (Middle East Gerrygerry.mcfadden@wspgroup.ae McFadden (Middle East BIM Lead) gerry.mcfadden@wspgroup.ae

MIDDLE EAST INFRASTRUCTURE TENDERS

Infrastructure Tenders Our monthly analysis of new tenders and key projects across the region

RABIGH CEMENT PLANT EXPANSION PROJECT

BAHRAIN - SAUDI ARABIA RAILWAY LINE PROJECT

RATQA FIELD HEAVY OIL PRODUCTION FACILITIES

SOHAR PETROCHEMICALS COMPLEX PROJECT

BUDGET: $7,000,000,000

BUDGET: $5,000,000,000

BUDGET: $4,300,000,000

BUDGET: 3,600,000,000

Territory: Saudi Arabia Client Name: Arabian Cement Company (ACC) Description: Engineering, Procurement and Construction (EPC) contract for the expansion of an existing cement plant Period: 2017 Status: New Tender

Territory: Bahrain Client Name: Government of Bahrain Description: Construction of a 90-kilometre-long railway line linking Bahrain and Saudi Arabia Period: 2018 Status: New Tender

Territory: Kuwait Client Name: Kuwait Oil Company Description: : Engineering, Procurement and Construction (EPC) contract to build new heavy oil production facilities Period: 2017 Status: New Tender

Territory: Oman Client Name: Oman Refineries & Petroleum Industries Company Description: Engineering, Procurement and Construction (EPC) contract to build a Petrochemicals Complex Period: 2018 Status: Current Project

May 2014

INFRASTRUCTURE MIDDLE EAST

23

MIDDLE EAST INFRASTRUCTURE TENDERS

Top Tenders UAE AL AIN ROYAL HOSPITAL PROJECT Project Number: WPR160-U Client Name: Department of Municipal Affairs - Al Ain Municipality Address: Jimi District, Al Ain Postal/Zip Code: 1003 Phone: (+971-3) 712 8000 Fax: (+971-3) 712 8001 Email: info@am.ae Website: www.am.abudhabi.ae Description: Construction of a hospital with capacity of 75 beds Budget: $3 m Status: Current Project Tender Categories: Medical & Healthcare, Construction & Contracting

Jordan MINIMALLY INVASIVE SURGICAL CENTRE PROJECT - MARSA ZAYED DEVELOPMENT (PHASE 2)

Dhabi-based Al Maabar Status: New Tender Tender Categories: Construction & Contracting, Medical & Healthcare

Qatar MEGA RESERVOIRS CORRIDOR -MAIN 2 PACKAGES A&B Project Number: GTC/599/2013-Q Client Name: Qatar General Electricity & Water Corporation (Kahramaa) Address: Corniche Street, Number 61, Sheraton Roundabout, Dafna Area, Doha Postal/Zip Code: 41 Phone: (+974) 4484 5484 Fax: (+974) 4484 5496 Email: contactus@km.com.qa Website: www.kahramaa.com.qa Description: Construction of 149.9 km pipelines for mega reservoirs corridor-Main 2. There will be two separate packages for material supply construction, testing and

Project Number: WPR172-J Client Name: Al Maabar Abdoun Real Estate Development Company Address: Al Maabar Jordan International Investments Bldg., Capital Governorate, Amman 11185 Postal/Zip Code: (85087 Phone: (+962-2) 406 7777 Fax: (+962-2) 642 8424 Email: info@almaabar.com Website: www.almaabar.com Description: Construction of a Minimally Invasive Surgical (MIS) Centre as as part of the second phase of Marsa Zayed, a mixed use development being developed in Aqaba by Abu

24

INFRASTRUCTURE MIDDLE EAST

May 2014

commissioning of water mains and fibre optic cable ducts within the Southern length of the Qatar National Utility Corridor from PRPS 3 (Rawdat Rashid) to connections to the existing mains from Ras Abu Fontas.

Bids are currently under evaluation.

Construction contract for the all packages are expected to be awarded and construction of the pipelines is expected to start in May 2014 Status: Current Project Tender Categories: Water Works

MEGA RESERVOIRS CORRIDOR -MAIN 1 Project Number: GTC/600/2013-Q Client Name: Kahramaa Address: Corniche Street, Number 61, Sheraton Roundabout, Dafna Area, Doha Postal/Zip Code: 41 Phone: (+974) 4484 5484 Fax: (+974) 4484 5496 Email: contactus@km.com.qa Website: www.kahramaa.com.qa Description: Construction of 181.2 km pipelines for mega reservoirs corridor-Main 1. Scope of work involves three separate packages for material supply, construction, testing and commissioning of water mains and fibre optic cable ducts within the Northern length of the

Qatar National Utility Corridor from Umm Birks to Rawdat Rashed Status: Current Project Tender Categories: Water Works

DOHA FESTIVAL CITY DEVELOPMENT PROJECT Project Number: MPP2455-Q Client Name: Al-Futtaim Group Real Estate (Dubai) Address: Dubai Festival City, UAE Postal/Zip Code: 159 Phone: (+971-4) 213 6213 Fax: (+971-4) 211 9299 Email: realestate@alfuttaim.ae Website: www.afrealestate.com Description: Development of Doha Festival City comprising a retail centre, an entertainment park, two hotels and an auto park made up of car showrooms. The multi-use scheme is located 15 km north of downtown Doha on Al Shamal Road, one of the main arterial routes to the city centre.and covers a total area of 433,847 sqm. A Joint venture of UAE’s Gulf Contracting Company and local ALEC has been awarded the main construction contract worth $1.6 bn for development Status: Current Project Tender Categories: Leisure & Entertainment, Hotels Construction & Contracting

MIDDLE EAST INFRASTRUCTURE TENDERS

Iraq WATER PUMP STATION PROJECT MISSAN OIL FIELD

Project Number: SPR2588-Q Territory: Qatar Client Name: ASHGHAL Address: Al Faisal Tower, Al Corniche Street, Dafna Postal/Zip Code: 22188 Phone: (+974) 4495 0077 Fax: (+974) 4495 0777 Email: contracts@ashghal.gov.qa Website: www.ashghal.gov.qa Description: Construction of 11-kmlong Wakrah Bypass comprising 10 lanes and four future lane sections with additional collectors/distributor roads, frontage roads and ramps.

The project forms Package 10 of the Doha Expressway. India’s Larsen & Toubro has been awarded the main construction contract on this project Budget: $600,000,000 Period: 2016 Status: Current Project Main Consultant: Al Baha Engineering Consultants (Dubai) Design Consultant: Al Baha Engineering Consultants (Dubai) Main Contractor: Naresco Contracting (Dubai) Tender Categories: Public Transportation Projects

Roads, Bridges & Infrastructure

PRODUCED IN ASSOCIATION WITH BIG PROJECT MIDDLE EAST AND MIDDLE EAST TENDERS M MIDDLE EAST

DOHA EXPRESSWAY - PACKAGE 10

Project Number: MPP2912-IQ Client Name: China National Offshore Oil Corp (CNOOC) Iraq Address: Buzurgan Camp, Missan Phone: (+964-7800) 953 165 Email: info@cnoociraq.com Website: www.ptb.gov.kw Description: Construction of a water pump station at the an oil field in the Missan oil-field complex in Southern Iraq. The field is being developed by CNOOC in alliance with state-run Turkish Petroleum Corporation Status: New Tender Tender Categories: Power & Alternative Energy, Water Works

Territory: Manama, Bahrain Client Name: Naseej (Bahrain) Address: 46th Floor, East Tower, Bahrain Financial Harbour Postal/Zip Code: 1383 Phone: (+973) 1655 7999 Fax: (+973) 1655 7990 Website: www.naseejproperties.com Description: Construction of (32) villas on an overall plot size of 17,000 sqm Status: New Tender Main Consultant: Mohammed Salahuddin Consulting Engineering Bureau - MSCEB (Bahrain) Design Consultant: Mohammed Salahuddin Consulting Engineering Bureau - MSCEB (Bahrain) Tender Categories: Construction & Contracting Tender Products: Villas Construction

Egypt

Bahrain

SOUTH WEST MELEIHA ONSHORE BLOCK EXPLORATION PROJECT BLOCK 14

YASMEENAT SAAR VILLAS PROJECT Project Number: WPR104-B

Project Number: ZPR1272-E Client Name: Egyptian General Petroleum Corporation (EGPC) Address: EGPC Bldg., Palestine Street, 4th Sector, New Maadi Area, Cairo 11472 Postal/Zip Code: 2130 Phone: (+20-2) 2703 1438 Fax: (+20-2) 2703 1457 Email: info@egpc.com.eg Website: www.egpc.com.eg Description: Build, Own, Operate (BOO) contract for the exploration of a 2,058 sq km onshore block including eight wells Period: 2016 Status: New Tender Hotel Consultant: Faisal Al-Ansari Contracting (Saudi Arabia) Tender Categories: Gas Processing & Distribution, Oilfields & Refineries

May 2014

INFRASTRUCTURE MIDDLE EAST

25

TEN QATAR INFRASTRUCTURE PROJECTS

QATAR PROJECTS Qatar is planning to spend nearly US$205 bn on infrastructure between 2013 and 2018 as it builds towards the hosting of the 2022 FIFA World Cup. Infrastructure ME brings you a slice of the action

26

INFRASTRUCTURE MIDDLE EAST

May 2014

WATER SECURITY MEGA RESERVOIRS

Owner: Kahramaa Budget: $3 bn Progress: Invitation to bid This is the world’s largest and first-of-its-kind project where 20 man-made reservoirs will provide seven days’ potable water storage in combination with existing and future secondary reservoirs. Last month, Kahramaa launched a tender for the construction of five primary reservoir and pumping station packages as part of the project. Local and international contractors are required to submit their proposals by June 5, 2014.

The five projects, valued at nearly $884 m, are expected to be finished by the end of 2017. The reservoirs and pipeline network, with associated pumping stations, will provide up to 17 m m3 of strategic potable water storage. Kahramaa hasn’t ruled out a cost overrun from the initial estimates as the project boom in Qatar is driving up the cost of construction materials.

TEN QATAR INFRASTRUCTURE PROJECTS

NEW ORBITAL HIGHWAY AND TRUCK ROUTE

QATAR LONG DISTANCE RAILWAY NETWORK

AL SEJEEL PETROCHEMICAL COMPLEX

Owner: Public Works Authority (Ashghal) Budget: Approx. $4 bn Progress: Contracts awarded

Owner: Qatar Rail Budget: TBA Progress: Pre-qualification of contractors - Phase 1

Owner: Qatar Petroleum Budget: $5.5 bn Progress: Front-End Engineering and Design

One of the largest projects under Ashghal’s Expressway Programme, this project links Qatar’s Northern and Southern regions bypassing Doha City. The 200 km circumferential highway and truck route has 22 major intersections, bridges and tunnels. The project will be delivered in phases up to 2017.

Last month, Qatar awarded two of its largest ever road contracts as part of this project. The $1.7 bn Package 3, a 56 km stretch connecting the Mesaieed industrial area and New Port Projects to Salwa Road, with five interchanges, went to HLG-Al Jaber Engineering. QDVC-Bin Omran bagged the $1.2 bn Package 2, connecting Salwa Road to North Relief Road. This 41 km section includes eight interchanges. Both packages provide for two separated truck lanes in each direction.

This project will provide freight and passenger services within Qatar with connections to Saudi Arabia and Bahrain.

The 510 km network, which includes six freight facilities, a depot, and seven passenger stations, will be integrated with the Doha Metro and the GCC Rail network.

The project will be executed over four phases, with the final phase being completed by 2030. The design consultancy contract was awarded to the Parsons-Systra joint venture.

Phase 1 construction contract will be opened to pre-qualified contractors for bids in late August 2014. It comprises of 143 km of railway track with 35 turnouts (main tracks), one station, three freight yards, one intermodal yard, 26 bridges and 59 culverts.

The mega-petrochemical complex, scheduled for completion in 2018, will feature one of the world’s largest mixed-feed steam crackers, and is designed to produce 2.2 m MTPA of polymers, including PE and PP resins. The Front-End Engineering and Design (FEED) contract was awarded to Tecnimont last year, marking the firm progression of the project. This followed the signing of technology selection agreement and Project Management Contract (PMC) in the early part of the year. The project is a key component of Qatar’s plans to ramp up its petrochemical output to 23 m MTPA by 2020. Qatar Petroleum (QP) and Qatar Petrochemical Company (QAPCO) own 80% and 20% equity interest in the project respectively.

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TEN QATAR INFRASTRUCTURE PROJECTS

EAST WEST CORRIDOR EXPRESSWAY

STADIUM INFRASTRUCTURE PROJECTS

Owner: Ashgal Budget: $1.7 bn Owner: Supreme Committee Progress: Under construction for Delivery and Legacy Budget: Approx. $95 bn Progress: Slow The construction of the East West Corridor expressway project in south Doha started last month. It will provide strategic links with the southern part of the city and connect the New Orbital Highway to the Hamad International Airport. Comprising approximately 22 km of a new dual carriageway, the corridor will feature five lanes in each direction. Interfaces with metro rail will be accommodated in the project to allow long distance rail corridor.

To expedite the project, construction work is taking place simultaneously at both ends. Joannou & Paraskevaides (Overseas)/J&P –Avax (JV) and China Harbour Engineering Company are the contractors entrusted with the construction. The project’s expected completion date is fourth quarter of 2017.

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Qatar announced in March that it is scaling back the number of world cup stadiums planned from 12 to eight. So far, only construction of the 40,000 seater Al Wakrah stadium and redevelopment of Al Rayyan Stadium (from existing 22,000 seats to 40,000 seats) have been awarded. Work on the former has already started while work on the latter is set to start later this year.

In March, a high-profile contest to design the 80,000-seater Lusail Iconic Stadium was scrapped, even though the scheme had attracted bids from several major international architects. The stadium, located north of Doha is the proposed venue for the 2022 FIFA World Cup tournament’s opening and final games.

LAFFAN CONDENSATE REFINERY PROJECT PHASE 2

Owner: Qatar Petroleum Budget: $1.51 bn Progress: Construction to commence soon The foundation stone for the project was laid by the Emir of Qatar HH Sheikh Tamim bin Hamad Al Thani. The project will effectively double the condensate refining capacity of the Laffan Refinery to 300,000 bbl/day, making Qatar the largest condensate producer with the largest refining capacity in the world.

Phase 2 is being executed as a joint venture between Qatar Petroleum, Total, Idemitsu, Cosmo, Marubeni and Mitsui.

The construction works are scheduled to be completed by the third quarter of 2016. The Engineering, Procurement and Construction (EPC) contract was awarded last year to a consortium comprising Japan’s Chiyoda Corp and Taiwan’s CTCI Corporation.

TEN QATAR INFRASTRUCTURE PROJECTS

FACILITY D IWPP PLANT

Owner: Kahramaa Budget: $3 bn Progress: Invitation to bid Facility D is a new Independent Water & Power Plant (IWPP) which will produce 2,400 MW of power and 545,520 m3/day of water.

The facility will feature both thermal and membrane desalination.

According to Global Water Intelligence (GWI), it will be the first privately financed power and water project in Qatar to involve outside developers since the Ras Laffan C plant, which reached financial close in 2009.

The highest number of pre-qualified bidders are from Japan comprising Marubeni, Mitsubishi, Mitsui and Sumitomo. The shortlist also includes France’s EDF and France/UK’s GDF Suez Energy International. The deadline for the award of the main contract has been extended. The project ‘s completion is slated for April 2018.

RAS ABU FONTAS (RAF) A2 SEAWATER DESALINATION PLANT

Owner: Qatar Electricity & Water Company (QEWC) Budget: $5 bn Progress: EPC awarded The 160,000 m³/day desalination plant, based on multi-stage flash technology, will supply its water to Kahramaa under a 25-year Water Purchase Agreement. The project, which will deliver its first water in June 2015, will enable Kahramaa to meet its water grid requirements next year. The EPC contract has been awarded to a consortium led by Japan’s Mitsubishi Corporation and the Toyo Thai Corporation Public Company.

This is also the first Independent Water Project (IWP) in Qatar to be funded entirely by domestic lenders.

RAF A2 project is a significant step forward for Qatar as it will ensure that the country maintains a surplus capacity pending the launch of Facility D IWPP.

SHARQ CROSSING

Owner: Ashgha Budget: TBA Progress: Expression of interest for prequalification Qatar’s Public Works Authority (Ashghal) has started the initial groundwork for launching the 12 km Sharq Crossing, described as one of the most technologically advanced infrastructure programmes in the country.

Comprising three iconic bridges linked with two immersed tunnels and a marine tunnel interchange spanning Doha Bay, the project will connect Hamad International Airport with the city’s cultural district of Katara in the north and the downtown central business district of West Bay. Work on the project is expected to commence in 2015 and complete by 2021.

The concept designs of the Sharq Crossing, designed by world renowned architect, engineer and artist Santiago Calatrava, were unveiled in December 2013.

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COVER STORY

DISTRICT COOLING

Cooling conundrum District cooling, despite obvious benefits, is yet to establish itself as a critical utility infrastructure in the region.

By Anoop K Menon hen it comes to district cooling in the region, the ‘for’ arguments are compelling.

Air conditioning accounts for about 70% of the GCC’s total power consumption due to the region’s high temperatures and desert climate. District cooling systems promise to cut energy usage by 40-45% compared to traditional air conditioning systems with . Moreover, being centralised, district cooling results in lower capital and operating costs, thus reducing air-conditioning set-up and energy costs per building.

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According to Sarfraz Dairkee, General Manager, Corporate Development & Engineering, MAHY Khoory & Co, the concept of district cooling is an offshoot of the district heating model, the common principle being the transfer of heating/ cooling energy from a central source of generation to the remote point of use through a pipeline network grid. In case of the latter, the heating energy had to be dissipated to the environment as waste until it was started to be utilised to provide heating in the cold neighbourhood.

The real benefit from district cooling is the fact one can match the chillers, run them wherever they run most efficiently, and get

efficiency benefits. There is also the advantage of economies of scale from having larger plants, bigger diversity factors and cross savings.

According to a Booz & Company analysis, by 2030, consistent use of district cooling in the region could lead to a reduction of 20 GW in new power capacity requirements, a reduction in the GCC’s power plant energy consumption equivalent to 200,000 barrels of oil per day and a region-wide decrease of 31 m tonnes per year in CO2 emissions. On the other hand, if heavy reliance on conventional cooling technologies is maintained, by 2030, the GCC will have to invest approximately $100 bn for new cooling capacity and over $120 bn for new power capacity.

COVER STORY

STILL GROUNDED

“District cooling plants happen to be one of the best Coefficient of Performance (COP) HVAC systems with very small carbon footprint” MASOOD RAZA, GENERAL MANAGER, JUMBO ENGINEERING

The bottom line is that district cooling systems create scale for more robust power and water conservation technologies, while mitigating peak demand on the power grid, enhancing sustainable solutions, and generating space and capital savings for end users. Thanks to its relatively recent adoption of the technology, the GCC is in an enviable position where district cooling can be seamlessly integrated into the real estate projects, unlike North America and Europe where the technology has to be added to existing projects.

Yet, developers and tenants aren’t exactly queuing up outside the doors of district cooling utilities in the region clamouring to be connected. For one, contrary to its promise, district cooling has turned out to be more expensive than traditional air-conditioning.

“District cooling plants happen to be one of the best Coefficient of Performance (COP) HVAC systems with very small carbon footprint,” says Masood Raza, General Manager, Jumbo Engineering.

“However, during the implementation of various schemes critical elements were overlooked as construction was rushed affair thanks to the bigger is better syndrome.”

Overcapacity on the supply side and overestimation on the demand side resulted in the building up of huge capacities without demand. Designers failed to take full advantage of the fact that with a bigger plant which serves ten or 12 buildings, they could apply bigger diversity factors on the basis that not everyone is going to use their air conditioning at the same time. The fixed cost, called capacity charge (a significant component being the financing cost for larger than required district cooling system) was a major contributor to the high cost of the system, ultimately leading to customer dissatisfaction. The higher electricity charges also contributed to the higher consumption costs.

The fact that district cooling plants were built over capacity meant they weren’t being operated the way should – where each chiller runs at a load which matches its most efficient time of use. As a result, efficiency suffered.

Lack of sub metering meant that end consumers weren’t paying for what they were actually consuming which left them feeling that they were unfairly charged. The basis for billing was a slab rate or common meter metering the whole building. As a result,

district cooling achieved the opposite of what it set out to do – people had little incentive to conserve while tenant and landlords started to quarrel on who pays for what.

Imran Ali, General Manager – GCC, Argonaut prefers to describe district cooling as the ‘organic AC’ alternative to conventional AC. He says: “It is very obvious that to buy one AC unit (window/split) and install it within a premises is a cheaper and easy solution but to go for a district cooling you need a CHW network within and around the building with other control devices like CCU, FCU, Thermostat, BTU meters, ETS room, SCADA/ BMS system. However, the end result is a more sustainable, durable, clean and modernised solution as a substitute for ugly, un-healthy and environmentally risky AC installations.”

Dairkee provides a different take on the issue. He points out that in the case of district heating, the cost of transferring the heating was marginal as the CAPEX and OPEX is mainly the cost of transporting the almost free/ low cost energy. As against this, in district cooling, the cooling generated as well as the transportation need investment.

“The perceived advantage in case of district cooling is the economy of scale, which is not as significant as in case of district heating,” explains Dairkee. “Therefore, the advantage of better economy of scale and better efficiency of central cooling has to be carefully balanced with significant transportation and precise controls in order to achieve competitive edge with respect to onsite cooling systems.

“However, due to highly transient demand pattern, there is a need for tremendous coordination and highly integrated operation. But the long process chain makes it highly vulnerable to losing the gains of centralised cooling.”

A key technical challenge for district cooling, according to Ali, is restrictions on the reticulation system (Chilled Water Network) because it clashes with other service providers’ networks. Hence, these networks has to be very well coordinated and planned accordingly. Being a high TDS water zone, scale deposits tend to build up faster.

CUSTOMER IS KING

For district cooling to get greater acceptance, it is important to address in a structured manner all the issues that increase the dissatisfaction of the end user. Raza suggests financing May 2014

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COVER STORY

charges could be reduced both through smaller capacities and transparent charges.

“Piping could be included by the developer as infrastructure cost,” he says. “The plant cost also can be shared with the developer/ owner.”

As the developer must provide airconditioning for the building, if the district cooling cost is being passed on to the owners over the life time of the building, he must be shown the savings he is getting during the signing of the deal.

Raza also suggests a onetime collection of HVAC cost at the time of property handover, which will be reasonable and more or less close to the alternative HVAC costs for the building.

Government support in terms of off-peak differential rates and a differential rate for the district cooling plants should also be considered.

He continued: “What is needed is increased awareness of all the advantages through sustained efforts by the district cooling fraternity. Detailed case studies should be carried out to highlight the stated technical benefits and brought into the public domain. The technical advantages have to make commercial sense to the end user for the establishment of district cooling business as a green solution.”

Ali points out that in Abu Dhabi, Estidama is actively pushing for green parameters like R134a refrigerant which has zero

“It is very much possible to reuse the waste steam generated by district cooling” IMRAN ALI, GENERAL MANAGER – GCC, ARGONAUT ozone depletion, 70dBA noise level within residential compounds and containment of any hazardous gaseous leakage. He says: “These are the most active elements that help promote district cooling plants. Also, the eKW/TR or COP/EER levels are increased, which help to reduce energy consumption and increase more green communities.”

Meanwhile, will the sector’s issues with overcapacity become a thing of the past? Ali believes that the mind set of contractors, consultants, owners and design engineers will never let them calculate the exact or near exact building loads. He feels that the tendency to design district cooling plants with 20% to 40% diversity factor means over capacity will always be an issue.

He continues: “Let’s presume that a perfectly calculated plant has been designed and built but somehow the master developer has got

DISTRICT COOLING MARKET VALUE, BY COUNTRY, 2013-2018 (KRT) COUNTRY

2013

2018

CAGR%(2013-2018)

Saudi Arabia

1,250

4,696

30.3

UAE

2,798

4,441

8.4

Kuwait

158

382

19.4

Qatar

213

456

16.4

Oman

59

360

43.1

Bahrain

50

265

28.4

TOTAL

4,528

10,600

18.0

DISTRICT COOLING MARKET VALUE, BY EQUIPMENT, 2013-2018 (KRT) TYPE

2013

2018

CAGR % (2013-2018)

Spot Coolers

435

869

14.9

Air Conditioners

598

1,177

14.5

Chillers

1,331

3,392

20.6

Air Handlers

408

1,018

20.1

Cooling Towers

1,014

2,459

19.4

Heat Exchangers

498

1,283

20.8

Other

245

403

10.5

TOTAL

4,528

10,600

18.5

SOURCE: IMRAN ALI, ARGONAUT

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some issues i.e. unable to sell/rent out units, occupancy levels are low, financial hiccups to complete the multiple phases. All these usual known factors will turn a perfectly sized district cooling into an oversized capacity plant.”

Raza adds that capacities available in existing plants in the large developments are still quite high.

Despite misgivings about district cooling, the long term prognosis is in its favour.

“With the renewed focus on green building regulations, the high COP district cooling plants are a major contributor to efficient use of resources,” says Raza. “Technological advances can be used to further lower the carbon footprint of the HVAC systems.”

“It is impossible to reuse waste energy of conventional AC units but it is very much possible to reuse the waste steam generated by district cooling,” says Ali. “Moreover, the cooling tower water can be recycled and reused.”

IN THE LONG RUN

In terms of market play, the UAE has and continues to set the trend in the regional district cooling market. Ali believes that factoring in the planned development by local government/authorities and Expo 2020 projects, the UAE market will continue to grow. His research points a significant Year on Year growth (20%) within chillers, cooling towers, air handlers and heat exchangers (that reflect the district cooling market) while air conditioners and spot coolers are expected to grow only by 15% annually.

Already, the second generation of district cooling projects in the UAE are looking to incorporate proper sub-metering with contracts being looked at more vigorously in terms of who pays for what and how the charges add up, making them a lot more transparent. Capacities are being scrutinised more closely and decentralised district cooling, where a single plant, instead of serving 50 odd buildings would serve eight to nine buildings is meriting serious attention as these can be managed more effectively and are easier on operations and maintenance.

Raza says: “I must point out that the district cooling business in the US is strong despite the lower air conditioning loads. However, the GCC must look inward to find means of establishing the business with full potential benefits being realised for the all stake holders.

All the benefits are real and still hold good.”

CONSTRUCTION

ROADS

Building Kuwait’s main artery One of the country’s most important roadways, the Jamal Abdul Nasser Street is being expanded in a massive project worth more than $800 m

By Shruthi Saraf

narguably, one of Kuwait’s most important projects is the Jamal Abdul Nasser Street Development Project which is a strategic venture currently being undertaken by the Ministry of Public Works of Kuwait as part of the state’s ongoing plans to further enhance the existing infrastructure and transportation network. It aims to transform the existing Jamal Abdul Nasser Street into an internationally standardised, multi-leveled expressway extending from the Jahra Gate to Grenada area in the western region of Kuwait.

Louis Berger and Pace have been undertaking the design, construction and

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supervision of the project, which costs $862 m (KD 242.4 m). Other than the highway, the scope includes upgrading and reconstruction of the existing service roads to provide additional traffic lanes with enhanced new or relocated utilities infrastructure. This project falls in line with Kuwait’s Vision 2030 development plan to transform roads and motorway network in the state.

The project’s key objective is to increase the Jamal Abdul Nasser Highway capacity, thereby minimising traffic congestions and reducing accidents, and meet future traffic demands. This will in turn segregate bypass traffic and local traffic flow via multi-leveled highways while improving road facilities, services and safety standards. The upgraded

highway will link existing establishments - such as Kuwait University and University of Applied Sciences, The Shuweikh Medical Zone, The Court of Audit, the Department of Energy, and the Kuwait Ports Corporation. The project is also interconnected within a network of newly developed highways, such as the Jahra Highway, Jaber Causeway and Doha link.

“These networks serve the city and are recognised as the primary, internationally standardised routes to reach the newly developed projects which are the Silk City and Mubarak Al-Kabeer Seaport,” says Mahnoud Ramadan, who oversees the project as its project engineer.

The elevated viaduct of Jamal Abdul Nasser Street is approximately 7.2 km long and consists

CONSTRUCTION

Big innovation The project uses overhead launching gantries for precast segmental erection

“Attempting this in such a busy metropolis like Kuwait City, along with the fact that it is upgrading an existing busy road; requires very intricate methods of construction that do not impede or disrupt the traffic flow or impact public environment dynamics�

MAHNOUD RAMADAN, PROJECT ENGINEER

of six to eight lanes with access ramps that are one or two lanes. The link road viaducts are of precast segmental construction with four to six lanes. The project also includes constructing a 716 m long section of depressed road which will have two roundabout bridges to service the local traffic. New grade service roads, generally two to three lanes, will be located either alongside or underneath the elevated main-line roadway. A total of four interchanges and nine roundabouts will be constructed as part of the project.

Nasser Road project comprises of five phases of work that are being undertaken simultaneously. The first phase starts from the Airport road roundabout until the First Ring Road (Al Salam Palace). Phase 2 is from

Sabah Hospital road roundabout up till Grenada area toward Jahra City. The Phase 3 extends from Al-Razi Hospital interchange to Ghazali roundabout while Phase 4 extends from Ghazali roundabout to the Airport road roundabout. Lastly, Phase 5 encompasses the Ghazali Interchange with Jamal Abdul Nasser.

According to Ramadan, planning in terms of phases helps to plan traffic detours which facilitate traffic flow in congested areas along with aiding relocation of services as per the technical specifications. Other reasons for phasing are the need to complete the first phase at an early stage and also the nature of segmental erection is such that it requires commencing the work from one end of the project and proceed in a linear sequence.

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CONSTRUCTION

“At a stage of being almost halfway near to completion, project works are advancing concurrently on construction sites along the project line as well as offsite in the project’s pre-cast yard segment. The structural works - materialising in the construction of the elevated highway elements including bridge segments, foundations (piles and pile caps), piers and diaphragms – are in steady progress,” saysRamadan. He adds that nearly 2,022 production piles have been bored and tested in all phases of the project, entrenched under 140 pile caps. More than 1,245 additional piles have been completed for the construction of the underpass as are four partial slabs. Also, 124 piers have been erected with a total of 51 diaphragms.

Moreover, 2,954 segments have been cast in the yard with 680 segments erected via the launching gantry forming 29 complete spans which equates to 58 complete decks in both directions. “As for road works and relocation and protection of utilities, 24 traffic detours have been opened so far alongside Jamal Abdul Nasser’s original road,” says Ramadan.

CHALLENGES IN EXECUTION

The structural elements of the project, in addition to the heavy utility works, are said to be constructed amid great challenges including restricted work areas and coordination with different parties. In many ways, this will be the first project in Kuwait to illustrate its ability and enhancement to progress, to deliver large - scale global projects.

“This comes by managing the risks and challenges to a successful conclusion. The nature of these large - scale projects requires continuous coordination with the concerned authorities during implementation to meet the demands of work progress in order to realise the completion date,” says Ramadan.

This is because in addition to transforming the Jamal Abdul Nasser into a unified highway, the project plans also include the renovation of a number of utilities and drainage structures along the length of the project route, which will require relocation,

Intricate methods The project makes innovative and extensive use of precast technology

protection, and refurbishment. Renovations include relocation of water lines, sewage system, telephone services, gas lines and voltage.

“The management of the project requires a set of internal procedures, which detail the processes of obtaining the necessary approvals from each authority to enable the proposed road project to be completed on time. Frequent follow ups are made with all parties involved to ensure most efficient

“In addition to transforming the Jamal Abdul Nasser into a unified highway, the project plans also include the renovation of a number of utilities and drainage structures along the length of the project route” MAHNOUD RAMADAN, PROJECT ENGINEER

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document control management,” he adds.

Undertaking the project in a fully populated and busy urban area with limited work areas requires intricate and faultless planning to avoid logistical issues. Procedure for importing equipment, machinery and materials require early planning and coordination with several parties in order to meet the construction schedules, according to Boudastour, while extreme weather conditions relatively affect concrete casting operations and on-site productivity.

STRUCTURAL PROGRESS

The project, in both its design and construction, is said to stand as an engineering marvel in which its caliber is measured with the advanced and large-scaled structural propositions

CONSTRUCTION

up on a remote area of Doha, capable of accommodating large-scale pre-casting machinery such as mold production frames, heavy gantries, water tanks, storage and curing chambers.

The works commence in the steel reinforcement cutting zone, where the steel bars are cut and shaped to form the segment frame reinforcement. A total of 11 overhead electrically operated cranes lift the frameworks to the segment mold machines in order to complete the casting and prestressing process. A total of four gantry cranes are set up and functional in the precast yard with which the complete segments are moved to curing then storage for site use.

SAFETY AND ENVIRONMENT

Quick construction Precast segments can be delivered along completed stretches of viaducts

employed, ranking the project as one of the largest multi-level road projects in the world.

Ramadan says: “Attempting this in such a busy metropolis like Kuwait city, along with the fact that it is upgrading an existing busy road; requires very intricate methods of construction that do not impede or disrupt the traffic flow or impact public environment dynamics.

Its engineering, and complicacy of location, required the utilisation of the latest innovations in bridge constructions, which is the precast segmental erection using overhead launching gantries.”

However, precast segmental construction provides the designer with solutions to road-rail bridge challenges and the ability to exceed project requirements with the needs of the owner. It also provides speed of

production both in casting of the segments and erection. Other benefits include the ability to construct in a congested environment as precast segments can be delivered along completed stretches of viaducts.

“The overhead launching girder was imported especially for this project and it weighs about 900 tonnes and is about 110 metres in length. It is capable of lifting a bridge segment that weighs up to 140 tonnes. So far two launching girders have been assembled which completes each deck span of segments. Bridge segments of one span are lifted, stressed and using epoxy, glued together to form a complete deck. This allows speedier erection of bridge segments, easy geometry control and employing a smaller crew size for operation,” he says.

A130,000 m2 precast yard has been set

Keeping in mind the safety of construction workers at Kuwait’s landmark infrastructure, multiple mobile clinics are said to have been set up along the project line, while periodic lectures on safety and security is provided to workers.

“We follow strict safety supervision and application of international standards and safety laws which include the use of helmets, jackets and other machine associated safety gear such as harnesses and belts. We also conduct induction programs on personal protective equipment and other specific operation duties training, including those for sub-contractors,” says Ramadan.

The project executives are constantly developing internationally standardised training programs for new engineers, which entails several lectures at the offices of the project on structural works, utility development works and project management, in addition to the practical application through field work at construction sites and the precast yard for bridges segments, he adds.

In terms of sustainability, every construction job taking place on site must be strictly executed according to standards and regulations developed by the Environmental Public Authority (EPA).

“This project requires a certified specialist with the commission to give a monthly report to the EPA on all environmental impacts caused by the project. It will include a log of readings taken through daily visits to determine the air quality, noise pollution, ground water quality, water sanitation, solid waste, and liquid waste.

A mobile laboratory along the project’s line for measuring emissions and toxic readings has also been set up,” says Ramadan.

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CONSTRUCTION

INTERVIEW

The Master Builder Sir John Armitt, the man behind the London Olympic Games tells Gavin Davids that there are lessons for Qatar and Dubai to pay heed to hen you’re the man charged with delivering the stadia and infrastructure for an event as huge as the Olympics, you’d be forgiven for having a few sleepless nights as you juggle dealing with government bureaucrats, construction contractors, consultants and the demands of an expectant public, all while the national press helpfully cover your every move and count down your deadline for you.

However, if you’re Sir John Armitt, that probably wouldn’t affect you in the slightest. Not after you’ve been the chief executive of Network Rail, the owner and operator of Britain’s rail infrastructure. If there’s one thing that’s guaranteed to get any Brit’s hackles up, its delays to their beloved rail systems. So if you can deal with that, you’d be able to deal with anything.

Sir John Armitt is probably the most recognisable and recognised engineer in the UK today, having been knighted for his services to the country in the build up to the London Olympics in 2012. As the chairman of the Olympic Delivery Authority, he was the face of the $8.74 bn construction effort that would deliver the venues, infrastructure and legacy of the London Games.

Amongst his many other roles, he is also the vice-president – International – of the Institution of Civil Engineers, on whose behalf he was recently in Doha, Abu Dhabi and Dubai to deliver a series of lectures entitled: “Developing Modern Infrastructure” It was in this capacity that Big Project ME met him over lunch to hear his thoughts on the build up to the 2022 FIFA World Cup in Qatar and the 2020 World Expo in Dubai.

Over the course of an afternoon, a picture emerges of a deeply intelligent man whose greatest strength is his ability to get people to work together. Proof positive, if the delivery

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of the best Olympics in recent history weren’t enough, that he was the right man for the job.

“Back in 2006, the industry (in the UK) was humming. Everybody had more work than they could cope with,” Sir John says of the time before construction began for the London Games. “For the contractors, it was a case of ‘do I want to take the risk of doing this very high profile contract, where if it goes wrong, I’m not going to want to be there, so I think I’ll stay out of it’.”

“So it was interesting that Sir Robert McAlpine (a leading UK construction and civil engineering company - editor) came forward wanting to do it. If you ask why they wanted to do it, well it’s because they built Wembley and they had this attitude that they wanted to be back at the forefront of major stadiums.”

“They had just finished the Emirates for Arsenal Football Club, which had gone very well and so they were feeling very confident about things. As for us (the Olympic Delivery Authority), at the time, it became quite difficult because there wasn’t that much tension or competition.

So it became a case of ‘how do we get a decent price out of McAlpine?’ They could have said that ‘we’re the only guys in town, we can milk this’. So that’s why we then went into a profit-sharing, target-form of relationship with them,” Sir John relates.

“You’ve got competing departments, competing agencies and competing personalities. Getting all of them to come together and work together as an overseeing body is not easy”

“But by the time it came to the Olympic Village, which was in 2008 or 2009, the market had completely changed. We had six or seven contractors who all wanted to bid for each block. So then it was quite difficult to resist the temptation to say, ‘here’s your lump sum, it’s your responsibility.’ (But I think), the way you start is going to dictate the way you’re going to finish,” he asserts.

“For us, one of the biggest risks was contractors starting and then not being able to complete (their projects) because their business was in financial trouble. So we said, ‘don’t we have a responsibility here to ensure that they don’t get into trouble?’ We did that by paying regularly. By doing that, it helped them run their business. It was in our own self-interest as well. If we paid the contractors regularly then we were managing the risk.”

“The next problem we had was to ensure that the contractors we were paying were passing that benefit to their supply chain. So again, we had to be quite proactive in encouraging people to tell us if they were suffering and be proactive with the main contractors and say, ‘look, this isn’t good enough. We’re helping you out, but we’re all in this together. We’re expecting you to pay your guys on time’.”

So what can Qatar and Dubai learn from his experiences in London? With Qatar planning to spend $140 bn and $200 bn on transport infrastructure and construction projects respectively, there is a huge responsibility to get things right the first time around.

“We’ve had a lot of meetings with the Qataris, explaining what did work and what didn’t work,” Sir John says. “It was the same with the Brazilians, we had endless meetings with the Brazilians about how we organised the games. You can see that at the end of the day, they had their own challenges, their own issues,” he points out.

“All of this starts with the governance. Who makes the decisions, how those decisions

CONSTRUCTION

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CONSTRUCTION

Iconic opportunities Mega events like the FIFA World Cup and the Olympics provides a great opportunity to design and build iconic buildings

are made and very often, and this is in any country, where it can be pretty confusing.

You’ve got competing departments, competing agencies and competing personalities.

Getting all of them to come together and work together as an overseeing body is not easy.”

“The beauty of the Olympics was, in a sense, was that in some ways, it was a crisis. You’ve got an absolutely fixed deadline, there’s no way you can get out of it and the world is watching.

Therefore, you’ve got to perform. All of a sudden, people realise that it’s in their best interests to cooperate rather than fight one another, otherwise they’re all going to suffer the embarrassment of not finishing,” says Sir John, making an extremely valid point.

This then leads to a core component of any construction project in the GCC. Given that most construction crews are made up of people from all over the world, having the right

leadership on-site and in the boardroom can be the difference between success and failure.

When you’re building for a multinational event that will have billions of people paying attention to not only the event itself, but the lead up to it, any sense of disharmony will be pounced upon.

Therefore it’s crucial that the best person for the job, at any level of significant responsibility, is chosen, as the ex-head of the Olympic Delivery Authority explains.

“One of the other challenges on big projects is that I think that sometimes you have to move people out even though they have a fantastic reputation. But if they’re just not gelling with somebody on the client’s side or whatever, then at senior level, people have got to sit down and say, ‘look, this just isn’t working out is it? You’ve got to take your guy out or I’ve got to take my

guy out.’ And that’s the difficult bit, because people don’t like to admit that their person might be the one causing the problem. But you have to recognise that someone can do a great job with a group of people on a different project, and then when you bring them over to a new one, it doesn’t work.”

“It can just be people rubbing each other up the wrong way, and they don’t want to collaborate and before you know it, the whole project is suffering.”

However, he remains confident that both the UAE and Qatar’s construction industries will rise to meet the challenge laid out in front of them, and points out that rather than focusing on the difficulties, they should instead look at the positives that such events offer.

“I think that part of the Games is the opportunity to create these iconic buildings.

Great cities need iconic buildings.”

“The beauty of the Olympics was, in a sense, that in some ways, it was a crisis.

You’ve got an absolutely fixed deadline, there’s no way you can get out of it and the world is watching. Therefore, you’ve got to perform” 40

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ADVERTORIAL

KNAUF ORGANISES FIRST OF ITS KIND CUSTOMER AWARDS NIGHT IN DUBAI Knauf Middle East hosted its first-ever annual customer awards at a gala dinner event, held at the Armani Hotel on February 7, 2014. Senior executives from Knauf’s key customers, distributors and partners across the Middle East and the Indian Subcontinent came together to celebrate the winners mer bin Ahmed, Managing Director, Knauf Middle East & India pointed out that the customer event is a very important milestone in Knauf’s leadership in the drywall market, acknowledging the critical importance of the company’s customers to its ongoing success.

He said: “Working closely with our suppliers, we have made significant progress in key programmes such as supplier performance management, risk management, supplier quality and sustainability over the past year. I would like to take this opportunity to thank them sincerely for their efforts.”

As part of its efforts to recognise and celebrate superior performance, Knauf presented awards across different categories recognising various stakeholders such as dealers, contractors and partners. The awards also acknowledged key employees of Knauf Middle East with ‘special awards’ in recognition of their dedication and commitment to drive collaboration between Knauf and its customers.

A

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EMERGING DEALER OF THE YEAR Al– Yusuf Building Materials, Bahrain Sadeer Trading & Contracting, Kuwait Global Gypsum Industries, Bangalore, India Drywall Qatar, Qatar Modec Building Materials Trading, UAE Mount Décor, Oman BEST SYSTEM SELLER Promer Qatar Contracting Company, Qatar Mainline Building Materials, UAE SUB-CONTRACTOR HERADESIGN 2013 R R India Plasters, Bangalore, India Croatian Technology & Business Association, Qatar AW Rostamani Building Industries, UAE & Oman KNAUF PREMIUM PARTNER 2013 Qatar Gypsum Products Industry (QGIPS), Qatar Gemini Building Materials, UAE & Gemini International, Oman SPECIAL APPRECIATION Late Mrs Kezban Onay, Promer Qatar

SPECIAL RECOGNITION 2013 New BK Super Impex, Nepal Adora Carpet Splendour, India Glory Products, Kolkata, India ASHGAL, Qatar HBK Contracting Company, Qatar SEG Qatar, Qatar FINO International, UAE Al Turki Enterprises, Oman Building Department, Dubai Municipality Dubai Central Laboratory Department, Dubai Municipality EMPLOYEE AWARDS Al Hussain Habeeb Mohammed Fazil Zafar Ghassan Ibrahim Jasper Balajadia Lee Evans Michael Ray Nicolas Neusuess Pravin Guthale Mrs Richelle Tuliao Ms Rodalyn Camayang Mrs Rosalie Lingat

CONSTRUCTION

“I am very proud to win this award as it was unexpected,” said Hassan Abu Gheida, Managing Director, Qatar Gypsum Products Industry (QGIPS), whose company was awarded the Knauf Premium Partner 2013 award.

He continued: “Thanks to the excellent support extended by Knauf for the past 12 years, we have been able to ensure that Knauf is a well-known brand in Qatar and is specified in all the major projects. For 2014, we are planning to further increase our activities and grow the sales. With the technical and commercial support of the Knauf team, we are confident of improving our turnover in Qatar.”

Vineesh Babu of Gemini Building Materials said the Premium Partner Award was a great recognition of the loyalty and hard work demonstrated by his company in growing Knauf ’s business in the UAE and Oman.

He said: “They are the largest gypsumbased building material manufacturer in the world and to be associated with them is a privilege for us. However, Knauf ’s emphasis

on providing support with a human touch ensures that everybody they work with progresses in terms of meeting the market’s as well as Knauf ’s expectations.”

N Srinath of Bangalore-based Global Gypsum Industries, which was bestowed with Emerging Dealer of the Year award said: “This award is very important to us because it recognises our hardwork and efforts to establish the Knauf brand in South India.”

Praising the “excellent support “extended by Knauf in this regard, he pointed out that growth can be accelerated still further with on-the ground technical and field staff support from Knauf.

“As Knauf is a global company with a strong products and a reputation for quality and delivery, customers in India always look forward to interacting with the principal,” he explained.

Commenting on future plans, he said: “We will continue to focus on growing Knauf’s market in South India. I believe that future growth will come from complete solutions rather than just boards, and we are keen to work towards this direction.”

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SPOTLIGHT

FUTURE POWER

Slow uptake for utility rentals Waleed Isaac, Managing Director, Smart Energy Solutions (SES) speaks to Infrastructure ME on the demand for rental power across the Middle East and Africa

Peak shaving T&D network expansion has shifted the demand for rental power to short term peak shaving applications

Construction rental power is on the rise mainly in Qatar, Dubai and Saudi Arabia markets,” says Waleed Isaac, Managing director, Smart Energy Solutions (SES), which provides fast track turnkey power rental solutions for temporary and medium term energy needs across the Middle East, Africa and South East Asia regions.

Rental power in the Middle East, he points out, is based around two demands: temporary power for construction and events, and industrial power for large scale utility projects.

The main markets for utility-scale power are in Saudi Arabia, Oman and Iraq; however, with these countries developing their electricity infrastructure, the need for large scale power has been gradually

“

decreasing. “Large scale utility rental power is showing less demand due to the fact that utilities in countries such as Saudi Arabia, Oman and Yemen, are improving their transmission and distribution coverage to remote areas,” says Issac. “This network expansion has shifted the demand for rental power from long term isolated projects to short term peak shaving applications.”

One of the company’s milestone projects in peak shaving application was the installation of a 45 MW power plant in Sur, Oman, in just 10 days. In May 2013, the Oman Power and Water Procurement Company (OPWP) awarded SES a contract for installing multiples of one megawatt diesel gensets connected to step-up medium voltage transformers and medium voltage switchgear. SES provided full operation and maintenance services for the power plant, which delivered continuous

output of 45 MW at 33kV to the end user.

“Our regional presence in the UAE, Qatar, Oman, Iraq, Yemen, Kenya and Nigeria markets with full-fledged operations helps us cater to customer needs with short response times,” says Isaac. “SES specialises in providing off grid remote applications as turnkey solutions. We supply turnkey diesel and gas rental solutions with voltages up to 33 kV.” SES moved into 2014 with several awards in the region and abroad, where it has secured long term projects in Yemen, Tanzania and Nigeria, peak shaving projects in Saudi Arabia, and isolated power plant projects in Oman.

The company also offers silent efficient generator sets, MV transformers, switchgears, medium voltage qualified design and application engineering, and installation expertise and expedient commissioning.

“SES specialises in providing off grid remote applications as turnkey solutions.

We supply turnkey diesel and gas rental solutions with voltages up to 33 kV” 44

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Customized Energy Solutions Turnkey Power Rental Solutions MV/LV Distribution Solutions Power Management Solutions Fuel Management Solutions

Genset & Power Plant Rentals 50KW to 100MW

Quality, Availability & Reliability SES SMART Energy Solutions FZCO T +971 4 886 2066 F +971 4 886 2067 E sales@sesrent.com P.O. Box 18051, Jebel Ali Free Zone, Dubai, United Arab Emirates

www.sesrent.com

SPOTLIGHT

FUTURE POWER

Filling in the gaps Altaaqa Global officials Steven Meyrick, Peter den Boogert and Robert Bagatsing make a case for rental power in meeting the region’s fast rising electricity demand he scars of the recent financial crisis are gradually fading from the Middle East.

Re-kindled economic growth, coupled with an exponentially increasing population and an aggressive investment drive in infrastructure, is causing a spike in the region’s demand for power.

As most of the countries in the Middle East depend on natural gas – a finite resource – for their electricity supply, hiccups in power supply aren’t unknown, particularly during the summer months, when majority of the electricity load is dedicated to cooling alone.

The demand may prove to be overwhelming

T

at times, making grids unstable. The economic and social repercussions of these uncertainties may be devastating, thus making it a pressing necessity to find suitable, sustainable solutions.

RENTAL POWER: NUMBERS HEADING UP

“As the global economy recovers from the financial crisis, private power companies will now be able to fund construction projects and basic infrastructure,” says Robert Bagatsing, Marketing Manager at Altaaqa Global.

“Therefore, there will still be a high demand for rental power companies to fill in the gaps.”

Bagatsing says that there will be an increase in demand for power projects in many countries around the world, particularly

in developing regions, like the Middle East, Africa, South America and South Asia.

“As an offshoot, a 30% increase in rental power is forecasted up to 2020.”

Pointing out the discrepancy between the rate of growth of economic activity and investments in power infrastructure, Peter den Boogert, General Manager at Altaaqa Global, says: “The economic activities of these new developing markets are increasing at a fast pace, while the permanent power projects are delayed.”

Supply from the utility companies is not meeting the current demand for power. This fact, he continues, can prove to be a crucial driver for the growth of the rental power industry.

“We are committed to employing a sustainable business model that creates, for example, employment opportunities in the areas where we choose to operate” STEVEN MEYRICK, BOARD REPRESENTATIVE AT ALTAAQA GLOBAL

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SPOTLIGHT

Robert Bagatsing, Marketing Manager, Altaaqa Global

Steven Meyrick Board Representative at Altaaqa Global

Peter den Boogert General Manager at Altaaqa Global

Results from various market studies corroborate Bagatsing and Den Boogert’s observations. The global rental power industry is anticipated to grow from $10.7 bn to $21.7 bn in 2019, with a CAGR of 15% from 2014 through 2019. Much of the growth is attributed to the Middle East, particularly to Saudi Arabia, UAE and Qatar, where the construction, utility and oil & gas industries are indicated as the biggest markets for rental power.

For instance, a rise in government investment in basic infrastructure, oil & gas, facilities, housing and power utilities, particularly in the Eastern Province, is driving the demand for rental power in the Kingdom. On the other hand, infrastructure preparations, albeit still nascent, for forthcoming global events, World Expo 2020

and FIFA World Cup 2022, are boosting the market for rental power in the UAE and Qatar, respectively. Aside from the Middle East, other growth markets for the energy rental industry include Sub-Saharan Africa, Central Asia, the Indian Sub-continent, Latin America, Southeast Asia and North Africa.

Altaaqa Global recognises not only the economic opportunities in the abovementioned regions but also the need to provide innovative solutions to their pressing requirements. Steven Meyrick, Board Representative at Altaaqa Global shed light on the company’s strategic geographic expansion, which he notes is “in line with our vision to be the leading and the most preferred temporary energy solutions provider before the year 2020.”

Meyrick says that investing in human resources, improving the company’s business processes, and expanding and diversifying its fleet of power generators continue to be the priorities. “We now have the capability to provide power plants running on various fuels,” he notes.

On top of CAT diesel power generators, Altaaqa Global’s rental power fleet is now able to run on piped natural gas (PNG), liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), flare gas, diesel and dual-fuel (70% gas, 30% diesel).

Meyrick adds that generators running on heavy fuel oil (HFO) are in the pipeline.

Altaaqa Global also deems to provide environmental and social programmes in areas where it operates. In addition to deploying technologies that promote environmental stewardship, the company also actively introduces CSR initiatives that help alleviate the social needs of its immediate environs.

“For instance, in Yemen, 95% of the workforce operating our Aden power plant are Yemeni engineers. We are committed to employing a sustainable business model that creates, for example, employment opportunities in the areas where we choose to operate,” says Meyrick.

Milestone projects In 2013, the company’s interim power rental solutions in Oman and Yemen made waves.

Altaaqa was able to install, commission and run a 24 MW temporary power plant in Oman in mere 96 hours. The power plants installed had the capability to directly connect to the grid without the need for a substation.

Altaaqa Global was also able to install a 54 MW interim power plant in Yemen in just 23 days after contract signing. The rental power station is currently supplying electricity to more than half a million people in Aden.

In the context of geographic expansion, the company has announced the opening of branch offices in East Africa and in the Indian Sub-continent.

Last year’s nomination at Platts Global Energy Awards New York for Best Engineering and Best Construction, plus its two awards at the MEP Awards for Best Supplier and MEE Awards for Power Project of the Year, has put Altaaqa Global among the ranks of the best rental companies.

TÜV NORD has recently certified Altaaqa Global as a company that implements a management system in accordance with ISO 9001:2008, ISO 14001:2004, and OHSAS 18001:2007.

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SPOTLIGHT

FUTURE POWER

Providing turnkey solutions While making its mark in the regional rental equipment industry, Manlift seems to be carving a niche for itself in the African market anlift is another leading company in the mobile power generators business, but it not only rents equipment but also sells them. According to Adam Ashcroft, Regional Director of Manlift, rental power has always been the least preferred option for customers.

He says: “Purchasing is often preferred but there is an economic cost to it. So yes, we find sales very attractive. We offer both to customers or we ask the customers what they prefer and we actually model the solution to their requirements.”

The company has been working on two major projects, supplying 15 MW power in Pakistan last year and recently signed a deal with a south African country for supplying 14 MW. Market-wise, Africa is definitely a place of interest to Manlift.

M

Ashcroft continued:“Definitely Africa is a very important market. I am not sure if Middle East is saturated, but it is highly competitive, whereas Africa is such a large place. The demand is increasing by five per cent a year just by population growth alone. We feel Dubai is good location to cater to Africa.”

And post its successful track record in the Middle East, Manlift is definitely looking to expand its business. “We are a relatively new player but we have been in the market for seven to eight years now, have a sizeable fleet and prestigious clients. We give the solution that we feel is in demand and we believe that has been a success for ourselves as well as our clients.”

Another aspect of its business that Manlift is particularly proud of is the way it provides bespoke solutions for clients. Other than providing for small cities and settlements, the solutions could be for specific industries

as well. Giving the example of the oil and gas industry Ashcroft says: “They have very tight health and safety issues and you have to make sure that your equipment matches that. It can be more complicated than providing to a small region. We also cater to the construction and the utilities industries. We look at all spectrums or all areas so it’s really about the power we can supply to our customers.”

However, what really sets Manlift apart from its competitors is that the company can take care of the fuel requirements if needed.

Manlift mainly concentrates on high speed diesel and is ready to bear the fuel risk; in fact, it doesn’t look at it as a risk. “We do supply fuel to customers and it is on a case by case basis.

The way we see it, it’s just another solution our clients are requesting. We do fuel management and the whole turnkey solution if that’s what the customer is looking for,” says Ashcroft.

A Manlift site in Iraq Unlike many players in the rental power industry, Manlift is ready to take care of the fuel requirements of its customers if needed

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In association with

bgreen and Big Project presents

Supported by

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Sustain able WEDNESDAY 21 MAY, HABTOOR GRAND, DUBAI Sustainability is one of the 3 pillars of Dubai Expo 2020 and with the new Green Building Legislation being implemented now is the time for you and your organization to understand how these opportunities can translate to your bottom line.

Panel discussions with industry experts on: Construction Opportunities for 2020 and New Green Building Legislation Confirmed Panellists: Shaikha Al Mutawa (Dubai Government DTCM) Abdullah Rafia (Assistant Director-General, Dubai Municipality) Tariq Abbas (Head of Sustainability, Hilson Moran) | Vahid Fotuhi (President, Mesia) Daniel Hajjar (Senior VP, HOK) | Amelie Zegmout (Head of Sales & Business Development, Legrand) Ibrahim Al-Zu’bi (Head of Sustainability, Majid Al Futtaim Properties LLC) Jeff Willis (Associate Director, Arup) | Stuart Mee (Head of Sustainability, Al Futtaim Carillion) Jane Boyle (Head of Sustainability & Energy, Middle East, WSP) Lindsay Preston (Business Development Manager, BASF Construction Chemicals) Jani Huotari (Technical Sales Support - Regional Manager, KONE Middle East)

For sponsorship opportunities, please contact: Jude Slann Commercial Director T: +971 4 433 2857 E: jude.slann@cpimediagroup.com Junaid Rafique Senior Sales Manager T: +971 4 375 5716 E: junaid.rafique@cpimediagroup.com Sandra Spencer Sales Manager T: +971 4 375 5473 E: sandra.spencer@cpimediagroup.com

FREE ZONES

INTERVIEW

All inclusive growth Peter Fort, CEO of Ras Al Khaimah Free Trade Zone Authority tells Shruthi Saraf how the free zone’s cost effectiveness is paying dividends not quite taken place. For example, in New York city, there are no factories in Manhattan.

Why? Because the land is too expensive. Over the decades those factories have migrated to New Jersey and the outer regions. This is the same process that is going on in the UAE and it is not just in manufacturing.

In RAK, we saw that opportunity and started leveraging that long time ago.

So we believe, in the next two years, it is a track that will continue and gather speed, especially across the UAE.

How is your free zone different from the numerous others that dot the country?

The investment demand is tremendous and costs are rising across UAE while businesses are seeking opportunities to invest in a very cost effective manner. The ability to basically combine all the advantages that the other free zones offer with cost effectiveness and high quality client services is what differentiates us. People don’t realise, especially outside the free zone space, that it is still very difficult to set up even within the free zones because there is a lot of bureaucracy, a lot of requirements and sometimes, it can take a long time. You will see when you speak with clients from other freezones that it is very difficult going through the process.

Businesses want to set up quickly, they basically want the red tape to be cut down as much as possible and they are looking for proper client support. We think of ourselves, not as much as a part of the government, which we are (we are 100% owned by the government), But unlike many of the other free zones, we want to think of ourselves as their business partners, as a service provider to our clients. We look at our business from a commercial perspective. And as a service provider we do everything that is possible to make our clients happy. So those two key differentiations are huge in the sense that they don’t get a lot of focus in the other free zones.

How cost effective is RAK FTZ compared to others?

It is really simple - it’s in terms of real estate.

We have the least rents whether they are looking at offices, warehouses or land, as we aim to be cost effective as compared to others.

When you look at more developed countries, growing for a long time, such as US or EU, you will see that different kinds of clients go to different areas. Because UAE is a fairly young country and the development has been fairly young, that sort of differentiation has

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Are you looking to build a specialised hub in Ras Al Khaimah?

IN THE GROWTH ZONE The Ras Al Khaimah Free Trade Zone Authority’s (RAK FTZ) new client registrations increased by nearly 30% in 2013 over the previous year, with 2,900 new companies registering. Additionally, the total number of licence renewals at the free zone in 2013 reached 5,100. To meet this demand, the RAK FTZ plans to build a new office tower in its Business Park that will accommodate more than 700 new clients, and will also construct 100 new warehouses in its Technology Park, for clients in trading and light manufacturing industry. Further, the tower is expected to be designed as an environmentally responsible and resource efficient building. The RAK FTZ has also restructured its management team appointing new Chief Financial Officer, directors of marketing and client relations, sales director, general counsel and quality manager. The free zone also opened a new promotional office at the Fairmont Hotel, Dubai.

We already have different parks that specialise in different types of clients. We have the industrial park which focuses on the heavy industries and a technology park which focuses on light industry. We are certainly looking at industrial specialisation over time but right now it is just the focus rather than an exclusion.

We don’t pursue a policy of exclusion. If you look at Dubai, each free zone has a very specific focus. If you are outside of that business activity, you cannot invest in that free zone.

That is not something we would like to pursue.

We are open to all activities as long as they are properly licensed as required and are not regulated activities such as finance or insurance. However, over the next year or two, we are going to increase our focus across streams. You already see clusters around automobiles manufacturing here. There is only one automobile assembly plant in all of UAE and it is located in RAK. We also have a number of other large automobile related industries in RAK so that’s one cluster.

There is cluster around building materials as well, such as RAK Precast. So there are definitely clusters that will begin to grow.

Currently we are working overtime to absorb the demand and growth that we are seeing. We are looking at the growth of facilities, ensuring that we are investing to

FREE ZONES

enable our clients to continue. There is no plan to start fragmenting the free zones.

How have you been developing infrastructure to assimilate this growth?

All our facilities are fully electrified. Currently, electricity is being sourced from different sources within RAK. Including FEWA, there are at least three different sources from where we are drawing power, plus there is residual generator capacity as well. Even though all our clients have full access to utilities, we are behind the scenes, standardising it, so that it is uniform and allows future growth.

Basically there is connectivity for all the utilities ahead of the development not after.

What happens in UAE all the time is that they build the buildings and then they think about the roads and the utilities. We are being careful in terms of making sure we have all the infrastructure in place, developed in parallel with the construction of the new facilities.

Is the power situation still bad in Ras Al Khaimah?

There was a case many years ago and there were issues, but that is something you will see even across the other emirates. By and large, through the combination of the three power providers, all of the problems have

been resolved and over the next couple of years this isn’t going to be a major issue.

Even at the government level, there are intense discussions about how to plan for the next five to 10 years. So the short term is well taken care of, But in medium to longer term, that is something that is under discussion. We are not subsidising the prices, they are the same as all the other emirates, but they are cost competitive with Dubai and the northern emirates.

logistical perspective. We really don’t see any logistical problems especially for clients who are focused on value added distribution or manufacturing rather than just transhipping.

As in anywhere else in the world if all you are doing is transhipment, that is taking it from one container and putting it into another, then you would of course want to be right at the port but other than that the logistical arrangements are very easy.

What are you doing to improve transport and logistics in the region?

Please share your future plans for the free zone. How many companies will be a part of RAK FTZ say another two to three years?

That is something we are certainly looking at; however, RAK already has a strong infrastructure portfolio. There are five ports including the one of largest in the Middle East, which is the Saqr port. And there is the international airport. So all of those assets are in place and we are working with the port authority and the airport to see how we can just connect the dots and enable clients to take better advantage of the infrastructure assets in the right way.

And of course from a proximity perspective, again, we are one hour drive from Dubai airport, one and half hour drive from Jebel Ali port, so there is kind of a global proximity benchmark that is extremely close from a

That is something very difficult to predict.

We will definitely continue to grow in the next couple of years, I think we will be able to exceed 10,000. But it is also really about getting high quality companies that will continue to develop. It is not just about quantity but quality as well.

This year, we aim to make the RAK FTZ customer experience even better, with expanded facilities and an enhanced customer relations department that will provide even more services. These improvements, combined with the anticipated economic growth resulting from the Expo 2020, have prompted more enquiries from investors who want to maximise their profits here.

“We want to think of ourselves as their business partners, as a service provider to our clients. We look at our business from a commercial perspective. And as a service provider we do everything that is possible to make our clients happy”

High growth The Ras Al Khaimah Free Trade Zone Authority’s (RAK FTZ) new client registrations, increased by nearly 30% in 2013 over the previous year

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TRANSPORT

RAIL

The great metro rush Forget the GCC Rail – it’s the Metro that has the GCC in its thrall as Infrastructure ME brings you the latest updates from Qatar and Saudi Arabia our years after Dubai Metro started operations, rest of the Gulf countries are in a catch up mode.

When the Red line became operational in September 2009, there were doubts expressed on whether a city like Dubai even needs a metro. However, in 2013, the average daily ridership of the metro recorded was in excess of 450,000 (and exceeded half a million during public holidays) compared to 300,000 in 2012. For the first quarter of this year, Dubai Metro (Red and Green Lines) clocked 40,655,978 riders compared to 33,341,095 for the same period last year.

As Abdullah Yousef Al Ali, Acting CEO of RTA Rail Agency noted, the number of the metro riders during the first three months of this year constitute a solid indicator that “Dubai Metro has become one of the prime transit means commanding the attention of the Dubai residents, visitors and tourists, offering smooth mobility and access to key parts of the city in a way that measures up to the needs and expectations of users.”

But with Qatar and Saudi Arabia hitting the fast track with their Metro projects, Dubai Metro is going to lose its ‘lone-

F

Doha Metro The total value of Doha Metro rail project is estimated to be $36 bn

ranger-in-the-GCC’ status pretty soon.

However, both have also borrowed from Dubai Metro’s example of going for stateof-the-art driverless metro rail systems.

QATAR

Over the past two months, Qatar Rail awarded

contracts worth $4.23 bn for the first phase of Doha Metro. While this is less than half of the $8.2 bn worth of deals awarded last year, this year saw the award of the single largest contract of $3.3 bn for of Phase 1’s Gold Line, awarded to a joint venture led

by Greece’s Aktor and comprising India’s

2013 DEAL SHEET FOR DOHA METRO PACKAGE

CONSORTIUM

WORKS

VALUE

GREEN LINE

Austria’s PORR, Saudi Arabia’s Saudi Bin Laden Group (SBG), Qatar’s Hamad bin Khalid Construction (HBK)

Twin tunnel with a length of 16.6 km with eight stations

$2.2 bn

RED LINE NORTH

Itay’s Impregilo, South Korea’s SK Engineering & Construction and Qatar’s Galfar Al Misnad Engineering & Construction

Twin tunnel 13km long with seven underground stations

$2 bn

RED LINE SOUTH

Qatari-French JV of Qatari Diar Vinci Corporation, Al Darwish Engineering and South Korea’s GS Engineering & Construction

13.8km twin-bore tunnel along with six underground stations

$2.6 bn

Msheireb and Education City metro stations

South Korea’s Samsung C & T Corporation, Spain’s Obrascon Huarte Lain (OHL) and Qatar Building Company

Doha metro’s two ‘most emblematic’ and largest stations to serve as transfer

$1.4 bn

Project Management Consultancy (PMC) services for the Red Line (North and South)

US’ Jacobs Engineering Group

Managing the delivery of the underground works for the Red Line

Consultancy services for power supply study

US’ Parsons Brinckerhoff International

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TRANSPORT

Riyadh Metro Siemens is equipping Lines 1 and 2 of the six-line system

Larsen & Toubro (L&T), Turkey’s Yapi Merkezi Insaat and STFA Group and Qatar’s Al Jaber Engineering. The deal includes design and construction of twin tunnels for 11-km and nine underground metro stations to be completed in 54 months.

In March, a consortium led by Spain’s FCC with Archirodon (Greece), Yüksel (Turkey) and Petroserv (Qatar) was awarded a $700 m contract to build a section of Doha Metro Red Line. The contract includes building three elevated stations (Barwa Village, Al Wakrah and Qatar Economic Zone) and a 6.97-km section, plus tunnelling the road at the entrance to Al Wakrah.

The winning consortiums in Qatar are dominated by European companies with the formidable South Koreans content playing second fiddle. For the Indian construction giant Larsen & Toubro, the Doha Metro win, close on the heels of Riyadh Metro order, positions the company as a serious player in the Mega Projects market in the region. But the biggest gainer seems to be the Spanish construction conglomerate FCC, which also leads Fast Riyadh Metro Alliance consortium constructing lines 3, 4 and 5 of the Riyadh Metro.

In early April, the SYSTRA-Parsons joint venture was awarded a $233.9 m project management and work’s supervision contract for Phase I. The contract covers

design reviews, work’s supervision, testing and tracking acceptance activities.

As lead consultant, SYSTRA will be responsible for signalling, driverless systems, rolling stock and depots.

SAUDI ARABIA

Meanwhile, construction work on Saudi Arabia’s first metro rail system in Riyadh started last month. According to Arab News, five work sites pertaining to the driverless metro project have been officially launched

by Riyadh’s governor. The $23 bn project involve six rail lines extending 176 km and carrying electric, driverless trains. Last year, Saudi Arabia awarded more than $22 bn in contracts to three foreign-led consortia for the design and construction of the system.

Meanwhile, the budget for Jeddah Metro Project is in the final stages of approval.

This was revealed by Mohammed Madani, director-general of roads in Makkah while speaking at a conference organised by Gulf Research Centre (GRC) last month.

The Jeddah Metro project is a planned 152 km, three line railway running across the city with 92 stations. It will be implemented

by Jeddah Metro Company, which was set up in March 2013 as a joint venture of the Jeddah Municipality and the Jeddah Urban Development Company. The project will have three lines - Orange (84 km, 22 stations), Blue

(36 km, 17 stations) and Green Line (32km, 7 stations). At the Middle East Rail conference in February this year, CEO of the Jeddah Metro Company Ibrahim Kutubkhana said construction will begin early next year so that the project becomes operational by 2020.

The tendering process for Makkah Metro project is expected to kick off in July this year. The mass transit system which will be integrated with a bus transport system will cater to the growing population of the city as well as the millions of pilgrims who visit Makkah every year.

Saudi Arabia has shortlisted 10 consortiums to bid for Makkah Metro project.

The first phase of the project involves the construction of two 45-km rail lines and 22 stations. The shortlisted consortiums will be invited to submit bids in early July for the first phase which will be split into two contracts.

The first line will be 11 km long with seven stations and will run mostly underground, linking the Jamrat region in Mina with the northern side of the Grand Mosque, the Haramain high-speed station in Rusaifa, and the Mecca-Jeddah Expressway.

The second line will be partially underground and will be 33 km long with 15 stations. It will start in Madinah Road north of Taneem Mosque, then run south along the western side of the Grand Mosque, and via King Abdulaziz Towers, Azizia Street and Taif-Karr Road to Umm Al-Qura University.

Makkah Metro project comprises four lines with a total length of 114 km and 62 stations.

Saudi Arabia’s cabinet has already approved the project at a total cost of $16.5 bn, involving three phases, the first of which will cost $6.8 bn and will be completed within three years.

The second five-year stage is expected to cost $5.06 bn while the third phase will cost $4.6bn and will be finished within two years.

The Doha and Riyadh metro projects are the first of a raft of metro schemes that have kicked off in the GCC. Waiting in the wings are new metro networks in Jeddah, Makkah, Kuwait City and Abu Dhabi.

But the metro that started it all isn’t surely relaxing on its laurels. Dubai Metro is also moving ahead with its expansion plans leading to Expo 2020 with extensions planned to both Red and Green lines. The next eight years, provided the ongoing metro projects stay on track, promise to upgrade the region’s public transport infrastructure to the next level.

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EXECUTIVE INSIGHTS

Matthew Merfert

“I believe that having a full-fledged presence in the region translates into a winning combination of local insights and global expertise”

Bagging Solar EPCs In an exclusive interview with Infrastructure Middle East, Matthew Merfert, Technology Director, First Solar Middle East talks about opportunities and challenges in the region’s solar industry What differentiates First Solar from the other solar EPCs?

First Solar has tremendous amount of experience in building solar power plants of different sizes (from 10 to 550 MW AC), in a variety of environments. We have consistently led the industry in the utility-scale market and IHS recently listed us as the number one solar EPC player worldwide for the second year in a row, having installed over 1.1 GW in 2013.

While a PV power plant may appear fairly simple from the outside, I believe that our ability to successfully adapt global expertise to local conditions gives us a competitive edge. Here in the Middle East, we’ve already engineered and built the region’s largest photovoltaic power plant, the multi-awardwinning first phase of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai. We successfully localised over 50% of the project value in this first project. We will also provide EPC and O&M services for the planned 52.5 MW Shams Ma’an project in Jordan.

While our EPC track record speaks for itself, the key differentiator is the fact that First Solar is a fully vertically integrated solar energy company that is capable of delivering

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everything from advanced thin-film modules, at the most basic level, to project development and pre-engineered power plant solutions and value-added services. Few, if any, companies can claim to be truly vertically integrated.

are rigorous and sophisticated. Since we are focused on the utility scale segment and our primary customers are utilities in the US. First Solar is comfortable performing in this resource-intensive environment.

As an EPC contractor, what are some of the key risks of operating in the Middle East?

How can some of these risks be mitigated?

What is your outlook on the Middle East Solar market for the next three to five years?

The first group of risks has to do with deploying technology in extreme desert environments.

First Solar’s thin film PV modules outperform conventional silicon by 10% due to the high ambient temperatures in the region. We also put our modules through the most rigourous testing protocols which have been adapted specifically for desert environments of blowing sand, humidity cycling, and salt mist corrosion.

The next set of risks has to do with the unique business environment and clients in the Middle East. Compared to the mature markets of the US and Europe, where the utility scale PV industry grew organically from the small residential market over a number of years, the typical client in the Middle East is coming from an oil and gas background.

So the expectations and the specifications

We are confident that there will be an increasing number of opportunities in the region and we will pursue them aggressively even as we focus on growing our commercial presence here. Last year, we established our commercial hub in Dubai and now have a team of over dozen professionals in various disciplines permanently based in the UAE, but supporting the broader region.

While I cannot comment on specific business opportunities, we are looking at developments around the region particularly in countries such as the UAE, Saudi Arabia, Jordan, Egypt and Morocco, among others. I believe that having a fullfledged presence in the region translates into a winning combination of local insights and global expertise, which will allow us to effectively pursue those opportunities.

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HEALTHCARE

REPORT

Growth in double digits According to an industry report, a 12% annual growth rate will make the GCC’s health care sector a $69 bn market by 2018 he GCC healthcare market is projected to grow at an annual rate of 12% to US$ 69.4 bn by 2018 from an estimated $39.4 bn in 2013, says a study

by Alpen Capital. Outpatient and inpatient markets are expected to account for 79% and 21%, respectively, of the overall market size.

According to the study, Saudi Arabia is the largest healthcare market in the GCC. At about $24.7 bn in 2011, the kingdom accounted for more than half (52.3%) the region’s market.

Driven by growing population and government spending, the healthcare expenditure grew at 12% CAGR between 2006 and 2011.

The UAE is the second largest healthcare

market, accounting for 58.2% of the total in 2018, followed by the UAE at 18%. In addition, Qatar and the UAE are expected to be the fastest growing markets in GCC over 2013–18.

The demand for number of hospital beds is expected to be 115,544 in 2018, an addition of 11,241 beds from 2013, which is in line with the expected supply looking at the number of projects in the pipeline.

KEY GROWTH DRIVERS

The IMF estimates that the region’s population would cross the 50 m mark by 2020, providing impetus to the consumption of healthcare services. Rising income levels and sedentary lifestyles have led to a higher prevalence of obesity and diabetes leading to a demand for specialized healthcare services.

Photo: Oliver Jackson/KEO

T

market in the GCC, with around $11.7 bn spent on healthcare in 2011. Between 2006 and 2011, it rose at a CAGR of 17.7%, driven by high government expenditure post the 2008 global credit crisis.

But Qatar has been the fastest growing market in the region, expanding at a CAGR of 23% between the same period. It also enjoys the highest per capita healthcare spend in the region at $1,776, followed by the UAE at $1,640, while Saudi Arabia’s per capita spend stood at $758, according to 2011 figures from the World Health Organisation (WHO).

However, compared to developed nations, per capita spend in the region is low due to less developed health infrastructure.

However, according to Alpen’s own analysis, Saudi Arabia will continue to be the largest

Model practice An example of the PPP model in the UAE is the Cleveland Clinic Abu Dhabi, set up by Mubadala Development in association with Cleveland Clinic of the US

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HEALTHCARE

COUNTRY-WISE HEALTHCARE MARKET GROWTH OVER 2013-18 SOURCE: ALPEN CAPITAL

11.4%

11.8%

SAUDI ARABIA

OMAN

13.1%

14.4%

9.4% 5.6%

BAHRAIN

KUWAIT

Aged population of 65 and above is expected to surge from 1.2 m in 2015 to 14.2 m in 2050, driving demand for healthcare services. Life expectancy in 2011 for the GCC region stood at 76.4 years against 69.8 and 69 years for the Arab and BRIC regions, respectively. In addition, infant mortality in the GCC improved from 110 per 10,000 live births in 2000 to 78 in 2012.

While growth in the region’s insurance premium outpaces the growth in the global market, the insurance penetration remains one of the lowest in the world. The region is building large medical cities and complexes, with billions of dollars of investments lined up, to not only raise the supply of medical infrastructure but also raise the quality of healthcare services in the region. The Saudi Arabian Ministry for Health, for instance, is currently executing five major healthcare projects, worth more than $500 m. These projects are essentially medical cities. Similarly, the new Sheikh Khalifa Medical City in the UAE will comprise three hospitals with a total of 838 beds, spread over 300,000 sqm.

UAE

QATAR

Medical tourism is growing strongly: UAE’s medical tourism sector reached $1.69 bn in 2013 from $1.58 bn in 2012. Dubai Healthcare City (DHCC), one of the largest healthcare tourist destinations in the region, claimed to have handled around 500,000 patients in 2011, 20% of which were medical tourists.

RECOMMENDATIONS CHALLENGES

The GCC countries are predominantly dependent on governments for financing healthcare expenditure. With rising healthcare costs, it is imperative for the government to increase private participation. However, there are restrictions with regard to foreign ownership; for instance, non-hospital private healthcare institutions in Saudi Arabia are reserved for 100% Saudi ownership.

Quality of healthcare is still not at par with that in the developed countries due to which patients travel abroad, especially for complex treatments. Certain indicators such as physician density and hospital bed availability in the GCC are low. The relatively lower quality of state provided healthcare is

INDUSTRY TRENDS

Employee healthcare benefits cost highest in the GCC: Middle Eastern employers spend more on healthcare than their other EMEA counterparts (6.1% compared to 3.9%) and this results from a more comprehensive insurance coverage.

Soaring healthcare costs in UAE and Qatar: This is due to the advent of new medical technologies and longer length of stay, along with better healthcare facilities.

Governments look at Public Private Partnership (PPP) models: : PPP models in the GCC continue to be adopted, but is at an early stage. PPP models can help the government not just in terms of reducing the financial burden but also can enhance the quality and range of services as well as spur innovation.

also one of the major concerns. As stated in Alpen’s Pharmaceuticals Industry Report 2013, the expenses for medical travel abroad for GCC citizens are primarily borne by the government, which prove to be a huge drain on public funds.

Due to lack of stringent guidelines, the minimum quality standards are not met.

As a result, patient safety and comfort is compromised. This challenge is also prevalent among public healthcare providers. Hence, a regulatory mechanism that would set quality standards for healthcare services can effectively raise the health standards and allow for greater private sector participation.

The GCC region had a low average insurance penetration level of just 1.1% in 2012, compared to the global average of 6.5%, lagging behind on other key insurance parameters as well.

IN NUMBERS

115,544

Estimated number of hospital beds in the region by 2018

$500 m

Investment by Saudi Arabia’s Health Ministry in ongoing healthcare projects

$28.26 bn

Budget allocated for healthcare sector in Saudi Arabia for FY 2013

Increase focus on preventive healthcare management: This will help improve health standards and mitigate rising cost pressures. Adoption of an accountable care model can help in sensitising physicians and medical prescribers about the costs involved in each treatment and medication.

Encourage greater private sector participation: The GCC should institute policies and an operating environment more conducive for the private sector which will ease the financial burden government and share its national healthcare spending.

Move closer to insurance claimbased system: GCC states must gradually move away from a socialistic healthcare system to a more efficient and effective market-based system via insurance cover which will not only reduce healthcare’s dependence on government budgets but also create a level playing field. Thus, the government’s regulation for mandatory insurance should bode well in raising insurance penetration in the region, which is currently lower than developed countries.

Develop medical education and training infrastructure: To address the shortage of physicians and reduce dependence on foreign medical staff, the government needs to redouble their efforts in training local talent.

In view of this, expanding the network of medical colleges takes greater prominence in the region. Promoting medicine as a lucrative career option for students can also help in attracting brighter minds to the sector.

May 2014

INFRASTRUCTURE MIDDLE EAST

57

INFRA INSIGHTS

Marwan Abdulaziz Janahi

“We will focus on students who have chosen science”

Plugging the skills shortage Marwan Abdulaziz Janahi, Executive Director of TECOM Investments’ Science Cluster on nurturing talent for the emerging life sciences industry.

As told to Anoop K Menon uring my interactions with companies in DuBiotech, I was surprised to learn that hiring from the local market was a big challenge. To my knowledge, there are at least seven to eight universities in the UAE offering courses in biotechnology, biology, chemistry and physics. So dearth of institutes or courses certainly couldn’t be the problem.

But universities weren’t reaching out to companies either as they weren’t seen to be providing attractive career opportunities.

The fact that the industry wasn’t visible in job fairs only added to the problem.

Therefore, we organised a panel discussion which brought together the universities and the biggest employers in DuBiotech. During the discussion, it became very clear that neither party knew what the other wanted.

One of the solutions we proposed was an internship programme for graduating students in order to give them a flavour of working in a life sciences company. This could eventually be taken to the next level.

D

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We also see students studying science but choosing a completely different sector, like finance or tourism. Often, they either don’t know or haven’t understood the potential.

Therefore, we have decided to focus on students who have chosen science. If they are convinced about the potential of life sciences, they would definitely be keen to get into it.

Of course, showcasing the potential of finance or tourism is far easier because these are highly visible business sectors; but when it comes a new screening kit for cancer, for example, how does one highlight its potential?

If one seriously thinks about it, I believe that biotech will overshadow technology sectors when it comes to setting new paradigms.

Career potential Often, students study science but choose a completely different sector, like finance

EVENTS

Also coming soon…

May MENASOL 2014 6 – 7 MAY, 2014, DUBAI With over 3GW of solar forecast to be completed in the Middle East & North Africa by 2020, over 150 senior executives from leading solar companies will be meeting at the 6th Annual Middle East & North Africa Solar Conference & Exhibition (MENASOL) next month.

Contact: Letty Thomas Email: lthomas@pv-insider.com www.csptoday.com/menasol/

HAPPENING THIS MONTH…

AIRPORT SHOW 2014 11-13 May, Dubai wide portfolio of the latest and most innovative Air Traffic Control (ATC) technology and solutions designed to make skies safer for air travel will be showcased to regional airport stakeholders at the 2014 edition of Airport Show at the Dubai International Convention and Exhibition Centre (DICEC).

Amongst the global ATC players at the event this year, are ADB Airfield Solutions (Belgium), Cooper Crouse Hinds (US), Erni AGL and Europoles Suisse (both from Switzerland), Jotron AS (Norway) along with Bayanat Airport Engineering & Supplies, Ales FZCO, ARINC and Honeywell from the UAE. The 14th edition of the Airport Show will be held in Dubai from May 11 to 13, 2014 with the support of DCAA, Dubai Airports and Dubai Aviation Engineering Projects (DAEP) among others.

This year’s event has already attracted 71 Hosted Buyers, up from the 60 last year and the organisers,

A

Reed Exhibitions Middle East, are confident about reaching the 100 mark by the time the event takes off.

This year’s show will see Hosted Buyers from Oman, Iraq, Morocco, Sudan, Bahrain, Djibouti, Egypt, India, Jordan, Kuwait, Pakistan, Tunisia, Zimbabwe and the host country, UAE. The combined investments planned by these countries in aviation-related developments are estimated to be worth $40-bn in a short span of time.

Airport Show 2014 is co-located with the Global Airport Leaders’ Forum (GALF), an industry meeting to generate solutions for airport leaders from around the world to overcome their common challenges, and Travel Catering Expo. It is the largest gathering of airport decision makers, experts and suppliers in the region and features specialised seminars and a prescheduled meetings programme.

Contact: Mohammed Abdul Mannan Email: info@naddalshiba.com www.theairportshow.com May 2014

PROJECT QATAR 2014 12 – 15 MAY, 2014, DOHA The 11th International Construction Technology & Building Materials Exhibition (Project Qatar) moves to the Qatar National Convention Centre (QNCC) for the first time.

The 2013 edition hosted 2,100 local and international exhibitors from 50 countries spread across 62,000 sq m of exhibition space.

Contact: IFP Qatar Tel: +974 4 432 9900 Email: info@ifpqatar.com www.projectqatar.com OPW EFFICIENCY & CONSERVATION 2014 18 – 19 MAY, 2014, MUSCAT The two-day conference, held in partnership with the Public Authority for Electricity and Water (PAEW) will focus on the latest projects and regulations from the relevant authorities and utility companies in Oman.

Contact: Loy Pinheiro Tel: +971 4 360 2821 Email: loy.pinheiro@iqpc.ae www.omanpowerandwater.com

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INFRASTRUCTURE MILESTONES

#004 Jebel Ali Port

Middle East’s largest, Dubai’s Jebel Ali Port also boasts of the world’s largest man-made harbour. By all accounts, these aren’t going to change any time soon ubai’s journey to becoming the region’s major trading and re-export hub started in 1833, when 800 members of the Bani Yas tribe led by the Maktoum family settled at the mouth of Dubai creek. The natural harbour encouraged trade, and by 1903, Dubai had established itself as a flourishing sea port.

In the 1950s, due to heavy port traffic, the creek started to silt up prompting the late Ruler of Dubai, HH Sheikh Rashid bin Saeed Al Maktoum to dredge the waterway, despite costing three times the GDP of the city at that time. That ambition, vision and foresight led to the construction of a four-berth deepwater harbour – Mina Rashid - close to the mouth of the creek in 1969.

But as HH Sheikh Mohammed bin

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Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai recalls in his autobiography, when Mina Rashid approached full capacity, his late father zeroed in on a strip of desert beach 36 kilometres away for his most audacious project - the Jebel Ali Port.

While Sheikh Rashid’s advisors – mainly the merchants based around the creek - worried the project would be a white elephant and also drain business out of the relatively new Port Rashid, he pointed out that there will come a time when they won’t be able to afford it (Jebel Ali Port).

The work on the port started in 1976 and was completed in 1979.

According to Peter Cooper, the Editor and Publisher of ArabianMoney.net, the project cost more than $3-bn, more in real terms than some of the Dubai mega projects today.

While complementing Mina Rashid in terms of trade and transhipments, May 2014

Fast facts Start of operations: 1979 Total Area: 3.5 m sqm Existing berths: 67 Average monthly throughput: More than 1 m TEU 2030 Handling Target: 55 m TEU Contribution to Dubai’s GDP: 25%

Jebel Ali’s focus was more towards industrial development, attracting major aluminium, gas and cement projects. With the setting up of Jebel Ali Free Zone (JAFZA), the location became a hub for international businesses for the freedom to operate with offshore status.

Today, Jebel Ali serves as the commercial gateway for cargo into the Middle East, Africa and the Indian subcontinent, providing market access to more than two billion people.

With 15 m TEU (Twenty Foot Equivalent Container Units) capacity, it is the ninth largest container terminal in the world and the largest outside Asia.

The completion of a new 4-m TEU terminal this year will take total handling capacity to 19 m TEU; this will also make Jebel Ali the only port in the region capable of handling 10 ultra large container carriers (ULCCs) at the same time.

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