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131
FEBRUARY 2017 meconstructionnews.com
THE BUSINESS OF CONSTRUCTION
THE LIVING LAB
Big Project Me looks at how the sustainable city is the test case for green development in the region
Contents
Issue 131 February 2017 08
16
18
24
30
34
04 ME Construction News.com
16 The Kingdom’s realignment
34 Back with a bang
07 Wonderland project revived
18 Almar Water Solutions
40 World Future Energy Summit
OnlIne
The biggest stories from Big Project Middle East’s home on the web The bIg pIcTure
Ento Capital announces restart of $490m mixed-use development on Dubai Creek
10 Trump turns down Damac deal InTernaTIOnal news
US President says that he turned down a ‘very, very good deal’ with Dubai-based developer
analysIs
Experts tell Big Project ME that the KSA construction industry is facing a shake-up In prOFIle
Gavin Davids meets Carlos Cosin, CEO of Almar Water Solutions, as he plots its entry into the MENA water production market
24 The Living Lab prOjecT prOFIle
Big Project ME examines the impact of Diamond Developers’ The Sustainable City
14 Riyadh market review for 2016 30 Creating a permanent space MarkeT OvervIew
TeMpOrary sTrucTures
JLL report looks at the 2016 performance of three key real estate sectors in Saudi Arabian city
Edward Gallagher explains why temporary structures are creating a niche in the GCC
cOMMenT
James Plant provides his thoughts on the impact of Dubai’s new budget for 2017 shOw revIew
Big Project ME was in Abu Dhabi to talk sustainability and renewable energy
48 Top tenders Tenders
Big Project ME lists the Middle East’s biggest construction tenders for February 2017
52 Investment in education lasT wOrd
Steve Hextall breaks down the educational project market in Dubai following a series of high-profile wins for his firm February 2017 1
Introduction
Sustainable ambitions
S
ustainability has become one of the most important talking points in today’s construction industry, and this month’s issue is a reflection of that. With the World Future Energy Summit happening last month in Abu Dhabi, there was no shortage of companies and individuals ready to talk about why sustainability and environmental awareness is crucial to our future as an industry. One of the most interesting discussions I had was with Karim El-Jisr from The Sustainable City in Dubai. It was fascinating to hear about what Diamond Developers is doing with that mega-project, and I’m looking forward to seeing how they go forward with it. While we’ve seen a number of projects come up with the tagline of ‘sustainable’, I don’t think I’ve seen something of this scale attempted anywhere before. What struck a chord with me was El-Jisr’s assertion that The Sustainable City is looking at how to adapt and evolve the technology and processes used in the project so that they become economically affordable and viable for all strata of society. This is a crucial aspect of sustainability that is often missed. While everyone focuses on the environment side of things, we also need to consider the economics behind it. A city or project cannot truly call itself sustainable unless the majority of society
eDItorIAL eDItor gAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480 oNLINe eDItor BEN FLANAgAN ben.flanagan@cpimediagroup.com SUB eDItor AELRED DOYLE aelred.doyle@cpimediagroup.com
PUBLISHING DIrector RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 eDItorIAL DIrector VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5472 Supported by
M
ﺟﻤﻌﻴﺔ اﻟﺸﺮق اﻻوﺳﻂ ﻟﺼﻨﺎﻋﺎت اﻟﻄﺎﻗﺔ اﻟﺸﻤﺴﻴﺔ
Middle East Solar Industry Association
Empowering Solar across the Middle East
2 February 2017
ADVertISING coMMercIAL DIrector JUDE SLANN jude.slann@cpimediagroup.com +971 4 375 5496 SALeS eXecUtIVe JOANNA COLACO joanna.colaco@cpimediagroup.com +971 4 375 5495 MArKetING MArKetING MANAGer LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498
can benefit from it. I’ll certainly be keeping a close eye on progress at The Sustainable City, as I believe it’ll serve as an important test for the concept of affordable sustainability. Another interesting conversation I had for this month’s issue was with Almar Water Solutions. Recognising the huge problem of water availability in the MENA region, this company has been set up to attempt to address that challenge. Carlos Cosin and Roberto de Diego Arozamena provided some fascinating insights into how they’re looking to reshape the way utilities and infrastructure are developed and built in the region. It’s certainly not going to be easy, but given the depth of expertise and knowledge that they’ve assembled, I’m quite confident that they’ll be up to the task!
Gavin Davids editor gavin.davids@cpimediagroup.com @MecN_Gavin
DeSIGN
PUBLISHeD By
Art DIrector SIMON COBON PHotoGrAPHy MAkSYM PORIECHkIN cIrcULAtIoN & ProDUctIoN DIStrIBUtIoN MANAGer SUNIL kUMAR sunil.kumar@cpimediagroup.com
CPI Trade Publishing FZ LLC licensed by TECOM PO Box 13700 Dubai, UAE Tel: +971 4 375 5470 Fax: +971 4 447 2409 www.cpimediagroup.com
+971 4 375 5476 ProDUctIoN MANAGer VIPIN V. VIJAY
FoUNDer DOMINIC DE SOUSA (1959-2015)
vipin.vijay@cpimediagroup.com +971 4 375 5713 WeB DeVeLoPMeNt MOHAMMAD AwAIS SADIq SIDDIqUI
PrINteD By PRINTwELL PRINTINg PRESS LLC © Copyright 2017 CPI. All rights reserved while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
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READERS’ COMMENTS
CONSTRUCTION
ENFORCEMENT wILL bE kEy TO NEw UAE FIRE CODE
Dubai Harbour to include Middle East’s largest marina
CONSTRUCTION
Trump turns down $2bn deal with Dubai’s Damac
In pictures: Meraas to build 20 million sq ft Dubai Harbour project
CONSTRUCTION
Dubai’s $40m Deira Islands bridge to set open
FEATURES
Omnium execs survey the Middle East QS scene
INFRASTRUCTURE
Dubai Wonderland project revived, to cost $490m 4 February 2017
Video: Time-lapse of construction at Aldar’s Shams Meera project
It is common sense that the much-needed new UAE fire code won’t be enforced when it comes to underconstruction developments (“New UAE fire code ‘won’t apply to ongoing projects’”, January 19). This new code is vitally important, given the string of fires that have hit UAE high-rise towers in recent years. There was the memorable fire at The Address hotel on New Year’s Eve at the end of 2015, the Torch tower fire earlier that year, and numerous other cases. The incidents have called into question the regulations and standards when it comes to the cladding used in many UAE skyscrapers, and rightly so. And so additional building standards and guidelines relating to fire safety should be welcomed by everyone in the industry. However, proper enforcement of the new code will be essential when it comes to compelling companies in the industry to comply with the UAE’s new fire safety code. The enforcement methods should include the use of third-party independent inspections to ensure that all players in the industry are following the rules to the letter. Alex Hamilton, via email
The Big Project Me Awards has become an important annual event to attend. Over the years, we have witnessed the efforts from the organiser to promote the best projects in the region and recognise the efforts and achievements of the contractors. I wish that the event will become even more successful!
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CHINA STATE CONSTRUCTION ENGINEERING CORPORATION (MIDDLE EAST) (L.L.C.)
27 November 2017 19:00 - 23:00 Habtoor Grand Dubai Al Andalus Ballroom United Arab Emirates bigprojectmeawards.com
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The Big Picture
Wonderland revived Construction work on the Wonderland development on Dubai Creek is expected to begin in the first quarter of this year. (Image for illustrative purposes only.)
Wonderland project revived for $490m Mixed-use development will begin construction in first quarter of 2017 Ento Capital, a Dubai International Financial Centrebased investment company, has announced that construction on the mixed-use Wonderland project in Dubai is expected to start in Q1 of 2017. In a statement, the financial firm said that reconstruction costs on the long-gestating project will be between $440 million and $490 million. Located on Al Riyadh Street, near Dubai Creek, the 222,967sqm Wonderland development will be executed in phases over three years. The project involves the redevelopment of the existing Wonderland theme park, which opened in 1996 but has been closed for several years. Once complete, it will comprise residential apartments, retail and food outlets, amusement parks
and a cultural centre. Ento Capital added that it is in the midst of obtaining preliminary approvals from Dubai Municipality and other relevant authorities. “The project will be one of the most attractive entertainment destinations in the region, attracting visitors from all over the world and enhancing the status of the emirate on the world’s map of leading entertainment centres. The location of the project is a prime factor in appealing to visitors with a wide array of amusement options,” said Hayssam El Masri,
CEO of Ento Capital, quoted in a CPI Financial report. He added that the company will be entering into a number of strategic partnerships with world-class real estate firms and brands. In August 2008, Emirates 24/7 reported that Wonderland would be redeveloped into a smaller version of the Disneyland and Universal Studios theme parks, for an estimated cost of $167.55 million. The project’s master planning and concept design was finished in 2013 by FORREC, a Toronto-based entertainment design firm.
222,967sqm Size of the Wonderland development
El Masri said that Dubai would continue to provide opportunities for investors from all over the world due to its transparent legislative environment, facilities and incentives in all sectors. He anticipated more foreign investment coming into the emirate over the coming years, particularly from companies looking to explore new markets. “It is a marvellous addition to the entertainment facilities in the UAE and a brilliant destination representing a unique and lively entertainment choice. It has many options for visitors, making it the ideal place for all family members for entertainment and dining… In all our investments, we create an environment that combines the elements of active and entertainment for a happy life,” he said. February 2017 7
The Big Picture
Construction peak A local expert has predicted that Qatar’s construction industry will peak in the first half of 2017.
Qatar construction sector set to peak CEO of CEG International expects construction to peak in first half of 2017 A construction expert in Qatar expects the sector to peak this year, amid a raft of projects and a favourable budget statement for 2017. Mohamed Abdulaziz, chief executive of CEG International, a leading engineering company, told the Qatar Tribune that he expects the construction sector to peak in the first half of 2017. “Most companies are upbeat about the ongoing works at the new Hamad Port, the redevelopment
of Hamad Medical Corporation’s Medical City, the Doha Metro project and the construction of at least eight stadiums for the World Cup,” he said. Abdulaziz added that a month ago, the Supreme Committee (SC) for Qatar’s hosting of the World Cup in 2022 announced the main contractors of two stadiums, while adding that the names of the contractors of other stadiums would be announced soon. Also,
he noted that Qatar Rail will select contractors for building stations in the second half of 2017. Raid Raaft, CEO of Kahraman Construction, drew attention to the opening of the Bulk Materials Handling System (BMHS) at Mesaieed Port, which he said will help meet the rising demand for primary materials for key construction and infrastructure projects. He pointed out that since Q4 2016, as the private
sector has become more confident in investing in healthcare and education, the construction sector has begun to gain momentum. Qatar’s new budget for 2017 has been received favourably by construction companies and experts. The 2017 budget has outlined sustained spending in vital sectors including health, education, infrastructure and transport, the Qatar Tribune reported.
“Most companies are upbeat about the ongoing works at the new Hamad Port, the redevelopment of Hamad Medical Corporation’s Medical City, the Doha Metro project and the construction of stadiums for the World Cup” 8 February 2017
The Big Picture
ACWA Power announces agreement with Jordan for 61.3MWp photovoltaic project Risha project expected to be completed by the first quarter of 2019 ACWA Power has announced an agreement with the government of Jordan to develop, finance, construct, own and operate a new 61.3MWp photovoltaic project in the province of Risha. In a statement released by the company, it said that it had submitted a recordlow tariff of JOD 42 fils per kWh, the lowest tariff for solar energy ever presented for a Jordan-based project. This tariff is 3.3% lower than the previous lowest tariff provided to Jordan with the Mafraq PV project, which has also been developed by ACWA Power as part of Round II of Proposals for Renewable Energy in Jordan. Once the Risha project reaches its completion target in Q1 2019, it is expected that the plant will save about 79,000 tons of CO2, while also powering 12,000 households. “Today the kingdom of Jordan takes another step toward sustainable and enduring energy security. Under the leadership of His Majesty King Abdullah II, the country has set ambitious renewables targets that not only reflect our needs at present but also safeguard us for the future,” said Dr Ibrahim Saif, Minister of Energy and Mineral Resources for the Hashemite Kingdom of Jordan, who attended the signing ceremony at the World Future Energy Summit in Abu Dhabi. “Energy projects are longterm by nature, and in selecting ACWA Power, we have partnered with a business that is invested in Jordan’s energy infrastructure.
With Al Risha, ACWA Power is coming on board as an investor, as well as a developer, and that commitment reflects their continued confidence in Jordan’s political stability and economic viability,” he added. The new photovoltaic facility is part of Jordan’s efforts to meet the needs of its population, with demand for electricity in the country climbing by 7% per year due to a population boom and increasing industrial needs. At presently, roughly 1,000MW worth of solar and
wind projects are underway, with the country setting itself a goal of raising renewables generation capacity to 20% of the capacity of Jordan, and reaching 15% of the energy mix by 2020. “The kingdom of Jordan has long recognised that renewable energy can offer safe, reliable power to the public. Together with our consortium, ACWA Power has facilitated the kingdom’s latest investment by applying our cost leadership and renewables expertise to the Risha facility. Once complete, the
12,000
Number of households Risha project will power
project will deliver solar energy at the lowest possible cost to 12,000 households,” said Mohammed Abunayyan, CEO of ACWA Power. ACWA Power will develop the new clean energy plant alongside the existing CEGCO asset of the Risha 150MW Gas Turbine Plant, using synergies from the existing plant to enhance efficiencies, the statement said. “Access to energy is a bedrock of sustainable economic development, and we are proud to partner with Jordan on its journey to not only 1,000MW of renewable energy, but to the kind of risk reductions, job creation and improved trade balances that can accompany greater energy deployment,” added Thamer Al Sharhan, chairman of CEGCO.
Powering the nation The Risha project is expected to power 12,000 households in Jordan, and is part of 1,000MW worth of solar and wind projects underway in the Kingdom.
February 2017 9
The Big Picture
1. Trump Turns down $2bn deal wiTh dubai’s damac The Dubai-listed developer Damac Properties presented a $2 billion deal to Donald Trump, but was turned down, the US president has said. Damac and Trump have struck previous deals together but Trump, with his business interests under scrutiny following his entry into the Oval Office on January 20, 2017, said that he had rejected the latest proposal. “Over the weekend, I was offered $2 billion to do a deal in Dubai with a very, very amazing man, a great developer from the Middle East,” Trump said Wednesday, referring to Damac’s chairman Hussain Sajwani. “I turned it down.” Niall McLoughlin, a spokesman for Damac, confirmed Trump’s account. “Damac confirms that discussions took place but, as stated, they were declined,” he told Bloomberg. “These were proposals for different property deals.” Last year, Sajwani said that the branding association between Trump and Damac would result in a sales boost for the Dubai-based real estate developer, despite his remarks about Muslims.
10 February 2017
1
15,000
Kenya’s construction authority suspended 15,000 buildings in 2016 for irregularities in licensing and documentation
2. Tender for sharm el-sheikh airporT works expecTed A tender for the expansion of Egypt’s Sharm El-Sheikh International Airport is being prepared, it has been reported. A source from the Egyptian Airports Company (EAC) said that the company is
preparing the tender, according to Daily News Egypt. The plan includes an expansion of terminal two to increase its capacity by two million passengers per year, bringing the total capacity of the airport to 9.5 million, it was reported. A new 60m-wide runway and 40 new
airsides will also be built. Egypt’s Ministry of International Cooperation signed a loan agreement worth $457 million with the Islamic Development Bank to finance the development of the airport by adding a new passenger terminal, the report from Daily News Egypt added.
3
The Big Picture
4. egypT consTrucTion cosTs ‘soar afTer currency floaT’
104
China has suspended 104 under-construction and planned coal power projects as part of clean energy plans 2 4
$28.9bn New South Wales saw a record amount of building and engineering work in the first nine months of 2016
3. iTalian firm wins inTernaTional compeTiTion To build TransporTaTion educaTion cenTre in doha One Works, an Italian architecture firm, has been picked by Qatar Rail to design a planned Transportation Education Centre (TEC) in Doha, following an international competition for the project. In a statement, the firm
said that the contest’s precise goal was to “bestow the city with a building symbol of the extraordinary change that is affecting the entire country”. “One Works has perfectly interpreted the spirit and the goal we set for ourselves from the competition’s outset,” said Mohamed Timbely, senior director of Qatar Rail. “Their unique experience in transport infrastructure architecture, combined with
their ability to interpret it as a founding and strategic element of urban development, and thus social and cultural evolution, allowed the architects to develop a concept for the Transportation Education Centre that achieves a perfect synthesis of what Qatar Rail is developing for its country, architectural and cultural legacy, making the TEC a dynamic and integrated element along the path we are taking.”
Construction costs in Egypt have soared since Cairo took the decision to float its currency, according to a press report. Prices of some steel and cement products have doubled, experts told Zawya Projects, as the value of the Egyptian pound fell sharply against the US dollar. Rising prices could see real estate prices rise, threaten projects and even force contractors out of the market, the news service said. “Prices of some steel and cement products have jumped by nearly 100%. This will negatively affect projects and put pressure on some contracting firms, who could be forced out,” Ahmed Al-Zaini, chairman of the Building Materials Division, Federation of Egyptian Chambers of Commerce, told Zawya Projects. Daker Abdellah, board member of the Egyptian Federation for Construction and Building Contractors, said Egypt’s increase in fuel prices and implementation of VAT would also negatively affect projects.
February 2017 11
Market Report
Riyadh Real estate maRket Review foR 2016
Jones Lang LaSalle report looks at the performance of three key sectors in 2016
Riyadh Office Market Summary 2016 was a relatively inactive year in terms of project materialisation, with the only completion being MIG Tower on Al Thumama Street, which added 21,000sqm of office space. Elegance Tower on King Fahd Road, expected to enter the market in Q4 2016, was delayed to 2017. Looking ahead to the rest of 2017, the majority of office space in the pipeline will be delivered from one project: the first phase of ITCC (160,000sqm). The remaining projects under construction are mid-scale developments on King Fahd Road, including CMC Tower (10,400sqm) and the delayed Elegance Tower (24,000sqm). Office rents have remained
14 February 2017
largely unchanged, increasing by just 1% over the past year. Average office rents held up due to an increase in rents outside the CBD, whereas CBD rents decreased by just over 4%. Average rents decreased by almost 4% over the final quarter. The economic slowdown has affected vacancies in Riyadh. Despite the subdued state of office completions in 2016, with only one property entering the market, vacancies continue to increase in the city, rising to 13% by the end of the year. The release of shadow space into the market from companies which downsized in 2016 will likely add upward pressure to vacancies in Riyadh over 2017. This may be further
impacted once public bodies begin to downsize in line with the National Transformation Programme’s measure to reduce the public workforce by a fifth. Should some of the office space in King Abdullah Financial District be repurposed to residential or hospitality use, as planned by the Saudi Vision 2030, then some of the supply in the pipeline for 2018 and 2019 will be withdrawn. This should alleviate some of the downward pressure on future office rentals. Riyadh Residential Market Summary Approximately 4,000 units, mostly stand-alone villas and apartment buildings, entered the market in Q4 2016. The
only notable completion was by Masa Alamaeriah Group, which added 59 villas to the market. A further 25,000 units are expected to enter the market in 2017. Unlike other major cities, Riyadh has a number of large communities under development. Some of the more notable projects include the Green Oasis development by Al Argan, which is expected to deliver over 900 villas in 2017, and East Gate, which plans to deliver 7,000 villas. This development appeals to the growing demand for community style living. In an effort to increase housing supply in the Kingdom, the government has taken initiatives to work with the private sector this year.
Source: JLL
a quiet year 2016 was a relatively inactive year in terms of project materialisation for the Riyadh office market.
Market Report
Riyadh office supply (2013-2018) Completed
Future supply
3,000
GLA (000’s) sqm
2,500
2,000
1,500
1,000
500
2013
2014
2015
2016
2017
2018
Riyadh residential supply (2013-2018) Completed
Future supply
1,050
Number of units (000’s)
1,000
950
900
850
2013
2014
2015
2016
2017
2018
Riyadh retail supply (2013-2018) Completed
Future supply
2,000
1,500 GLA (000’s) sqm
East Gate has showcased how the private sector can successfully work with the government to deliver units to those who qualify for housing support from the Ministry of Housing and for a loan from the Real Estate Development Fund. 100% of the units have been reserved prior to the commencement of construction. Unit prices in East Gate start from SAR 650,000, and the difference between the cost of the unit and the loan can be paid in installments over a period of four years. The bank will also hold 5% of the value of the contract for an additional year once the unit is delivered, as a guarantee. In this way, the end user’s interests are protected by ensuring the quality of the product and the flow of finance to ensure project materialisation on time. Y-o-y rents for both villas and apartments decreased by 4%. Residential performances remained relatively stable across the board in Q4 2016, with falls limited to just 1%. Riyadh is expected to be the first city to be invoiced under the White Land Tax in January 2017. Although the effect on residential prices is unlikely to be immediate, this is a positive step forward. Affordability is becoming an increasingly significant issue, particularly after the removal of certain perks and benefits from public sector employee pay, which further limits their ability to borrow from the banking and specialised mortgage lender sectors. The number of residential transactions in Riyadh decreased in 2016 by around 26% compared to 2015, according to the Ministry of Justice, giving buyers more bargaining power. This may add continued downward pressure to sales prices in 2017.
1,000
500
2013
2014
2015
2016
2017
2018
Riyadh Retail Market Summary Much of the future supply over the next two years is concentrated along the Northern and Eastern Ring Roads and Al Thumama Road. With new supply entering the market in those areas, competition among shopping centres will be strong as they compete for the waning demand within those catchment areas. The current concentration of many shopping centres in the central area of Riyadh means there is an opportunity to serve relatively underprovided areas in the city, particularly in the growth corridors in the north and east of the city. Shopping centres are increasingly becoming places to meet and socialise as opposed to just shop, particularly in a city which has limited entertainment offerings. With the expected growth in households opting to stay locally during school and public holidays, retailers are developing their entertainment and F&B offerings by introducing more concepts and new brands. A number of new F&B retailers have recently entered the market, including Nando’s, Zafran, Five Guys and Shake Shack. The entrance of new F&B retailers will see more competition and improved quality in this segment in 2017. Community centre rents remained unchanged both q-o-q and y-o-y. Super regional centres, on the other hand, continue to show marginal decreases both q-o-q (1%) and y-o-y (2%), a trend which is likely to continue throughout 2017. Vacancies increased marginally y-o-y and reached 9% in Q4 2016. Given the supply which is currently under construction, this is expected to increase further over the coming year.
February 2017 15
News Analysis
the Kingdom’s Realignment
David Clifton and Donal O’Leary of Faithful + Gould analyse the coming year for the Saudi Arabian construction industry Bottom of the market 2016 and 2017 are likely to be the bottom of the market, Clifton and O’Leary say, with 2018 slightly more expansionary.
With the oil price likely to recover by most estimates to $50 per barrel average for 2017 as OPEC implements a series of production cuts, the Kingdom of Saudi Arabia is forecasting oil revenue to increase by 45% to $128bn, from $87.7bn. This is optimistic given the fact that Saudi has to bear the brunt of the production cuts for OPEC, and Faithful + Gould’s forecast is that the revenue target would require around $65 per barrel over 2017.
Although the implementation of the National Project Management Office (NPMO) has stalled at the awards stage, movement has been noted in the reprioritisation of projects and programmes. It is estimated that from the government’s $820bn pipeline, $168bn is at risk of being cancelled. “The power and water sector [is likely to see the most activity] in the short term, without questions,” David Clifton, regional development director for Faithful + Gould, tells Big Project ME. 16 February 2017
“Then moving forward, social infrastructure and schemes that align to diversifying the economy [will see increased movement]. Trophy assets will die away first.” “Power and water have IWPP models that the private sector can deliver and thus shift the development off the government’s balance sheet. The reasons for the required growth are reasonably easy to see – KSA uses over 300 litres per person per day, over 3% annual growth in population and over 50% under 30,” Clifton continues. “Furthermore, power and water developments have reasonably long lead times for delivery, while other prioritised projects such as affordable housing, schools, etc are comparatively short in terms of delivery times. Power and water needs to be in place prior to completing housing and school programmes, and at current levels, power and water consumption is fast reaching its maximum
“The government is clearly looking at legal and contract amendments to enable alternative financing, which should drive interest and demand. It’s already noted that power will be delivered by the private sector”
capacity in the Kingdom.” With Makkah Metro not awarded in 2016, contract awards in the Kingdom trailed expectations by around $20bn. The outlook for 2017 has subsequently increased from $27bn should Makkah be awarded to c.$32bn. The forecast is further predicated on another major infrastructure project being awarded by exception or royal decree. With a 28% increase in budgeted expenditure for 2017 at $14bn, the budget for expected 2016 awards appears to have shifted into this fiscal year. As nearly 50% of this budget is running the government entities, a major infrastructure scheme looks to have been budgeted for above and beyond exceptions. The 92% increase in MOMRA budgets implies the rapid deployment of the PMO and fast tracking of several major municipality schemes in 2017. “What we’ve seen already
Construction Intelligence Report Construction Intelligence Report – KSA Update Construction Intelligence Report – KSA Update Q4 2016 Update - Issued January 2017 – KSA Q4 2016 - Issued January 2017 David Clifton Regional Development Director | david.clifton@fgould.com Donal Clifton O’Leary Director - Commercial Services| david.clifton@fgould.com | donal.oleary@fgould.com Q4 2016 - Issued January 2017 David Regional Development Director
and will continue to see in the short term is backlogs dropping fast, more than 300,000 redundancies in 2016, wage inflation negative every month in 2016 – these themes are likely to continue in 2017,” says Clifton. “The big issues are around when reprioritising that the delivery horizons extend. The government pipeline is c.$820bn on a notional 14/15year horizon. If this extends to 25 years and with a 20% cut, the government contracting sector shrinks – however, 2016 and 2017 is probably the bottom of the market. In the midterm (2018 on), it becomes slightly more expansionary. “With regards to the Makkah Metro, it looks to be fully budgeted. In reference to the 92% rise in MOMRA budget versus 2016 – this was delayed as it was due to be awarded in late 2016. With the defence budget still significant, expect further schemes coming to market. The increase in budget is psychologically important for the industry, although some of this is just deferred commitments from 2016,” he elaborated. As the government sector looks to stabilise after a tortuous year in 2016, the private sector is finding the funding issue sensitive, as credit terms are tightening and interest rates on the loans are starting to turn northwards. Bank lending fell in 2016 and isn’t expected to recover until 2018 as global liquidity struggles and regional drawdowns increase deposit to loan ratios to close to SAMA’s 90% threshold. With a rebalancing and reprioritisation of programmes occurring and a potential 20% cut in the government’s contracting pipeline, it is hoped that the forecast 14-year horizon on government schemes isn’t extended. However, given the
News Analysis
Donal O’Leary Director - Commercial Services | donal.oleary@fgould.com David Clifton Regional Development Director | david.clifton@fgould.com Donal O’Leary Director - Commercial Services | donal.oleary@fgould.com With the oil price likely recover by most estimat fiscal rebalancing, thetorealistic CENTRAL DEPARTMENT FOR STATISTICS+INFORMATION average 2017 as OPEC implements a series deployment of programmes With the for oil price likely to recover by most estimato CENTRAL DEPARTMENT FOR STATISTICS+INFORMATION Kingdomfor is forecasting oil revenue to increase byo average 2017 as OPEC implements a series GDP (US$ Bn) would reasonably be 25 years, With the oil price likely to recover bytomost estimat $87.7Bn. This is optimistic given the fact that Sau CENTRAL DEPARTMENT FOR STATISTICS+INFORMATION 744 Kingdom is forecasting oil revenue increase by which would allow divestment GDP (US$ Bn) 686 695 average for 2017 as OPEC implements series of the production cuts for OPEC and we aforecast 669 $87.7Bn. This is optimistic given the fact that Sauot 744 funding such Kingdom is forecasting oilOPEC revenue toover increase would require around per barrel 2017.byt 686 695 ofinto thealternative production cuts $65 for and we forecast GDP (US$ Bn) 669 534 744 $87.7Bn. This isand optimistic given the fact that Sau 527 520 as IWPP, BOT BOOT. would require around $65 per barrel over 2017. Although the implementation of the National Projet 686 695 of the production cuts for OPEC and we forecast 669 534 430 527 “Thehas shift to alternative 416 520 (NPMO) the per awards Although the stalled implementation ofbarrel thestage, National Proje would require aroundat$65 over moveme 2017. 377 the reprioritisation ofat projects and programmes. It financing is stalled broadly a the positive 328 416 520 430 527 (NPMO) has awards stage, moveme 534 377 Although the implementation of theprogrammes. NationalisProje the governments $820Bn pipeline, $168Bn at Itri move. We view that this should the reprioritisation of projects and 328 430 416 (NPMO) has stalled at thepipeline, awards stage, moveme the governments $820Bn $168Bn is at ri 377 mitigate the Metro huge peaks and With Makkah awarded 2016, contrac the reprioritisation ofnot projects andin programmes. It 328 Kingdom trailed expectations by around $20Bn. troughs in awards we’ve seen inin$168Bn With Makkah Metro not awarded 2016, contrac 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 the governments $820Bn pipeline, is at T ri has subsequently increased from $27Bn$20Bn. should T M Kingdom trailed expectations by around the government sector in recent (F) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 GDP has slowed over 2016 mostly due to the oil price With Makkah Metro not awarded in 2016,should contrac to c.$32Bn. The forecast is further predicated onM a has subsequently increased from $27Bn years as schemes become better undershooting expectations for the2012 year. Growth is 2015 2016 (F) Kingdom trailed expectations by around $20Bn. infrastructure project being by exception GDP slowed 2016 to2013 the oil price 2006has 2007 2008over 2009 2010mostly 2011 due 2014 to c.$32Bn. The forecast is awarded further predicated onTa forecast to have been only 1.4% indicated planned andproject delivered, especially has subsequently increased from $27Bn should M undershooting expectations for as theQ3 year. Growtha is infrastructure awarded by exception With a 28% The increase being in budgeted fora GDP has slowed toquarter the oil aprice dramatic slowdown to2016 0.9%mostly - quarter average. (F) towhen c.$32Bn. is roll-out furtherexpenditure predicated on combinedforecast with the forecast to have over been only 1.4% as due Q3on indicated budget for expected 2016 awards would appear undershooting expectations the year. Growthaverage. is With a 28% increase in budgeted expenditure forto infrastructure project being awarded by exception dramatic slowdown to 0.9% -for quarter on quarter on fiscal the NPMO andnearly Kingdomthis As of this budget is run forecast have been only MATERIALS 1.4% as Q3 indicated budget foryear. expected 201650% awards would appear to AVERAGEtoCONSTRUCTION PRICES a With a PMOs 28% increase in budgeted expenditure entities, a year. major infrastructure looks is tofor ha wide inAs the government dramatic slowdown to 0.9%MATERIALS - quarter onPRICES quarter average. this fiscal nearly 50% scheme of this budget run AVERAGE CONSTRUCTION budget for expected 2016 awards appear to above and beyond exceptions. Thewould 92% increase 205 sector,” explains. entities, aClifton major infrastructure scheme looks to ha this fiscal Asdeployment nearly 50%ofofThe thisPMO budget run implies theyear. rapid the andisfast Ready Mix Concrete above and beyond exceptions. 92% increase AVERAGE CONSTRUCTION MATERIALS PRICES 205 “However, 2017 won’t be easy 200 entities, a major looks ha major Municipality schemes inofscheme 2017. - SAR M3 implies the rapidinfrastructure deployment the PMO andtofast Ready Mix /Concrete as international and regional The 200 above and beyond exceptions. 92% increase 195 205 major Municipality schemes in 2017. - SAR / M3 As the government sector looks to stabilise after liquidity down, but by most implies theisrapid deployment of the PMO and fasta Ready Mix Concrete 195 190 200 2016, the private sector is finding the funding issua As the government sector looks to stabilise after major Municipality schemes in 2017. - SAR / M3 forecasts, 2018 should the terms are tightening andsee on the loan 190 2016, the private sector isinterest findingrates the funding issu 185 195 return to liquidity in the markets, As the government sector looks to stabilise after a northwards. Bank lending fell in 2016 and isn’t exp terms are tightening and interest rates on the loan Nov Aug Oct Nov 185 190 2016, theglobal private sector isthe finding the funding issu 2018 as liquidity struggles and regional dra and funding through to northwards. Bank lending fell in 2016 and isn’t exp 2015 2016 2016 2016 Nov Aug Oct Nov terms are tightening and interest rates on90% the loan deposit toglobal loanhopefully ratios to struggles close to SAMA’s thre industry will pick up. 2018 as liquidity and regional dra 185 2015 2016 2016 2016 northwards. Bank lending fell in 2016 and90% isn’tthre exp deposit to loan ratios to close to SAMA’s Aug Oct Nov “We’re alreadyand seeing IWPPs With a rebalancing reprioritisation of program 2500 Nov 2018 as global liquidity struggles and regional dra 2015 2016 2016 2016 and aapotential 20% cut in theto governments contra come to By exception With rebalancing and of 90% program deposit tomarket. loan ratios to reprioritisation close SAMA’s thre 2500 REBAR SAR/T hoped that the forecast 14 yeargovernments horizon on govern 2300 and a potential 20% cut in the contra we’ve seen themes of PPP With a that rebalancing and reprioritisation ofon program extended. However, given the fiscal rebalancing, 2500 REBAR SAR/T hoped thethe forecast 14 year governt 2300 in Kingdom – horizon 2100 and a potential 20% cut in the contra ofdelivered programmes would reasonably berebalancing, 25 years, wht extended. However, given the governments fiscal Madinah Airport, for example. REBAR SAR/T hoped that the forecast 14 year horizon on govern divestment into alternative funding such as IWPP, 2300 2100 of programmes would reasonably be 25 years, wh 1900 extended. However, fiscalsuch rebalancing, t The government is given clearlythe divestment intoto alternative funding as IWPP, This plays well the introduction of the NPMO an 2100 oflooking programmes would reasonably be 25 years, wh 1900 Nov Aug Oct Nov at legal and contract PMO’s within the ministries and government relate This plays well to the introduction ofsuch the NPMO an divestment into alternative funding as IWPP, 2015 2016 2016 2016 incredibly ambitious in their timelines and delivera Nov Aug Oct Nov amendments to enable alternative PMO’s within the ministries and government relate 1900 This plays well to the of the NPMO an 2015 2016 2016 2016 bringing inambitious the best international people pract financing, which should incredibly inintroduction theirdrive timelines andand delivera AverageNov material pricesAug for the main construction Oct Nov PMO’s within the ministries and government relate one. If this implementation generates time and co bringing in the best international people and pract interest and demand.” materials show similar formain the rest of the GCC. 2016 2016 2016 Average2015 material pricestrends for the construction incredibly ambitious in negate their timelines and the could the $168Bn of proje one.government If thisplays implementation timedelivera and co This well to the generates materials show similar trends for the rest of the GCC. bringing in the best international people and above) through efficiencies. The timelines forpract impl the government could negate the $168Bn of proje Average prices for the main construction GENERALmaterial INFLATION introduction ofefficiencies. the NPMO one. If this implementation generates time andimpl co concerns for contracting awards 2017 may yet above) through The in timelines for materials show similar trends for the rest of the GCC. the could negate of out proje unless momentum is gained inthe the PMO roll GENERAL INFLATION andgovernment the governmental PMOs concerns for contracting awards in$168Bn 2017 may yetq 5 above) through efficiencies. timelines forout impl unless gained in the PMO roll q withinmomentum the ministries and The Construction tenderisinflation officially went negativ 5 GENERAL INFLATION concerns for contracting awards in 2017 may yet INFLATION 4 However in real negotiations wethe saw discounts government entities. Although Construction tender officially went unless momentum isinflation gained in PMO rollnegativ outof q 5 4.3 4.2 4.3 4.2 for those projects that had funding in place. There INFLATION 4.1 4.1 4 However in ambitious real negotiations we saw discounts of incredibly in their 3.8 Construction tender inflation officially went negativ in labour costs while some material prices are up 4.3 4.3 3 4.2 4.2 4.1 4.1 for those projects that had funding in place. There timelines and deliverables, 4 However inwith realthe negotiations weroll sawout discounts of combined looming VAT (Q1are 2018) 3.8 3.3 INFLATION in labour costs while some material prices up 3 4.3 3 thethose concept of bringing the 4.2 4.3 4.2 4.1 4.1 for hadinfunding inout place. priced by projects the means weroll now forecast infl 3.3 combined withindustry thethat looming VAT (Q1 There 2018) 2 2.6 3.8 3 in labour while some material prices for 2017. In our forecast holds atforecast 4%are as up the best international people and 2.3 3 priced bycosts the2018, industry means we now infl 2 2.6 3.3 combined the looming VATis roll out (Q1to 2018) felt acrossInwith the Kingdom. 2019 expected see practices is the correct one. for 2017. 2018, our forecast holds at 4% as the 2.3 1 3 priced by now forecast infl growth of the circa 3% as means alternative financing schem felt across theindustry Kingdom. 2019we is expected to see 2 2.6 If this implementation 1 for 2017. In 2018, our forecast holds at 4% schem as the government and government related sectors. 2.3 growth of circa 3% as alternative financing 0 generates time and cost2019 savings of felt across the Kingdom. is expected to see government and government related sectors. 1 10%, the government could negate 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov growth of circa 3% as alternative financing schem Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov government government the $168bn and of projects at riskrelated sectors. 0 Inflation is expected to slow during Q1 2017, with a pick up through efficiencies. The timelines JanQ2+Q3 Feb as Marfurther Apr subsidies May Jun are Julremoved. Aug Sep Oct Nov during Inflation is expected to slow during Q1 2017, with a pick up for implementation mean that during Q2+Q3 as further subsidies are removed. Inflation is expected Q1 2017, a pick up concerns for contracting awards 2016 -3% 2017to slow +0.5%during 2018 +4% with2019 +3% during Q2+Q3 as further subsidies are removed. in 2017 may yet roll into early 2016 -3% 2017 +0.5% 2018 +4% 2019 +3% Faithful+Gould, PO Box 56684, Riyadh 11564 2018 unless momentum is quickly Faithful+Gould, PO Box 56684, Riyadh 11564 2016 -3% 2017 +0.5% 2018 +4% 2019 +3% gained in the PMO roll-out.
Faithful+Gould, PO Box 56684, Riyadh 11564 February 2017 17
In Profile
“The lasT 10 years have shown ThaT waTer scarciTy is one of The biggesT problems ThaT The world will have To face in The coming years. my view is ThaT There is enough waTer in The world, buT The problem we have is ThaT iT is noT very well handled” 18 February 2017
In Profile
Big Project ME catches up with Carlos Cosin, chief executive officer of Almar Water Solutions, and Roberto de Diego Arazomena, chief executive officer of Abdul Latif Jameel Energy, to find out how the newly established company aims to tap into the GCC’s water demand February 2017 19
In Profile
g
CC residents often take for granted their lives in the impressive cities they call home. Built off the back of vast oil-generated revenues, these cities have – in the space of a generation – expanded from small hubs of local trade to bustling metropolises that interact with millions from around the world on a daily basis. This growth shows no sign of stopping either, with population levels rising every year and construction continuing apace, even with the recent slump in oil prices which has hit regional government budgets quite severely. However, if this continued development is to happen, regional governments need to start paying attention to another vitally important liquid – water. As a fundamental part of human life and survival, water is an essential need for the region, but it remains a considerable challenge to produce and supply in the arid Middle East region. According to World Bank data, more than half the people in the MENA region live under conditions of water stress, which is when water demand outstrips supply. Of even greater concern is the expectation that water availability per capita will halve by 2050, due to rising populations, a trend likely to be exacerbated by climate change, the World Bank report adds. This will have a direct economic impact on countries in this region, with the report predicting that water 20 February 2017
growing populations, growing challe nges Carlos Cosín says that the rising popul ations in the GCC will put increased press ure on regional utilities and infras tructure.
CARLoS CoSin Cosín leads the strategic
Some of his most significant
management and development
achievements include the
of Almar Water Solutions,
development of the first
implementing its vision
BOT model water project
and driving success in the
in West Africa and winning
sector. Through 20 years of
the Water Company of
experience in the industry, he
the Year award in 2015.
has developed desalination,
Born in Madrid, Carlos Cosín
waste-water and reuse
graduated in Agricultural
projects around the globe
Engineering from Madrid
for both municipal and
Polytechnic University, and he
industrial sectors. During
is a director of the International
this time, he has closed
Desalination Association
agreements under both EPC
(IDA). He was previously a
(Engineering-Procurement-
member of the European
Construction) and BOT
Innovation Partnership on
(Build-Operate-Transfer)
Water (EIP Water) Steering
models across five continents.
Group between 2013 and 2016.
scarcity could cost some regions up to 6% of GDP over the next 30 years. Therefore, investing and building critical water-related infrastructure is likely to be of crucial importance to the region. With desalination being the most heavily used water-generation technology in the GCC, it is expected that many governments will invest billions in expanding capacity. At present, some 70% of the world’s desalination capacity is thought to be in the Middle East. While this is certainly an important step towards resolving the water scarcity problem, it also creates a host of larger issues, given that desalination is hugely energy intensive, oilreliant and causes considerable environmental damage. Therefore, it is essential to find a cleaner, more sustainable approach to water production, which is part of the reason Almar Water Solutions exists. Owned by Abdul Latif Jameel Energy, the company has been established to “tackle the challenges of water scarcity and contamination”. Focusing on the provision of global solutions that will contribute to sustainable development in the water sector, Almar will help construct and operate water desalination and purification treatment plants in areas that need them most. “The last 10 years have shown that water scarcity is one of the biggest problems that the world will have to face in the coming years,” Carlos Cosín, CEO of Almar Water Solutions, tells Big Project ME during a meeting with selected members of the press at Abdul Latiff Jameel’s offices in Jumeriah Lakes Towers, Dubai. “Over the last century, we’ve increased the usage of water while also increasing the size of
In Profile
the population, which is creating a great number of problems in some of the regions that are not prepared to face this crisis. My view is that there is enough water in the world, but the problem we have is that it is not very well handled. It is polluted and it is not very well balanced and distributed. That’s some of the problems we have to face over the next few years. At the end, we see that the consequences will be felt by the 1.2 billion people living in what we call scarcity areas, while 1.6 billion people will be really affected at an economic level.” While this paints a fairly gloomy picture, Cosin is adamant that Almar will be able to help regional governments and utility providers over the coming years, backed as they are by Abdul Latif Jameel Energy’s resources and capabilities.
“It’s in our DNA to assume this risk, because we have the experience. This is what we feel comfortable with, and we have the experience to handle assets that we’ve created from scratch”
“We want to be a recognised leading player in the water sector, able to provide commercial solutions to the challenges of achieving sustainable development. Abdul Latif Jameel Energy’s expertise and extensive global reach will strengthen our efforts to do so. By combining water treatment services with a renewable energy offering, we can also help reduce costs and the environmental impact,” he explains. Roberto de Diego Arozamena, CEO of Abdul Latif Jameel Energy, adds that the parent company’s strategy is to focus on renewable energies such as solar, wind, waste-to-energy and hydro power. “Through the establishment of Almar Water Solutions, Abdul Latif Jameel Energy is uniquely positioned with both our renewable energy
and water treatment solutions. Almar will invest in water projects globally, with a core focus on Latin America, the Middle East and Africa. “The group has always been concerned with water, actually. Our chairman has a participation in a desalination company in Jeddah, and in parallel we’ve created the Abdul Latif Jameel World Water and Food Security Lab at MIT, which is focused on promoting water and food research and developmental technologies, programmes and policies with measurable effects on a global scale,” Arozamena elaborates. The idea with Almar Water Solutions is that the new company is a step further in ALJ Energy’s renewable energy and environmental services strategy, which builds on the company’s
offering solutions Roberto de Diego Arozamena says that with the establishment of Almar Water Solutions, Abdul Latif Jameel Energy is now able to meet a host of renewable energy requirements.
February 2017 21
In Profile
“There is now, in the private sector, extensive know-how about how we can improve the way to produce water with more innovation, efficiency in the plants and how to accommodate the proper risk between the private and public sector”
successful acquisition of Fotowatio Renewable Ventures (FRV) in 2015. That company has rapidly expanded in recent years, and is now the largest GCC-based solar photovoltaic provider. “FRV is now in 15-plus countries, and most of them overlap with the water business,” says Arozamena. “There are significant synergies between the two businesses, as they’re both project-based and use project finance. The cycles are different, but the overall business concept is the same.” “The strategy with Almar is to develop, finance, build and operate the plants, and after a reasonable period of time, when the production is stable, sell the assets – but keep the operation and maintenance of those assets.” Cosín adds that although government budgets have tightened, the private sector is showing greater interest in the water generation industry, and the new liquidity in the financial sector means investors are now on the lookout for new opportunities. “There is now, in the private sector, extensive know-how about how we can improve the way to produce water with more 22 February 2017
innovation, efficiency in the plants and how to accommodate the proper risk between the private and public sector. “At the end, this is moving in a different way – how we finance infrastructure. We’ve gone from the typical design and build, or EPC, to the PPP model for private practices. This will be giving us a very good solution to develop a new way for infrastructure development,” he says. Furthermore, he points out that Almar is getting into the water production sector like a developer, which sets it apart from many other rival firms. “If you try to evaluate how many developers there are in the water sector, it’s very difficult. It’s very specific work. In the US, you can find one – Poseidon – but in the global water sector, it’s mainly the EPC contractors. No one is starting from scratch, creating solutions with governments and utility providers, and finding out what is the best way,” Cosín elaborates. “One important point for us with Abdul Latif Jameel Energy is the long-term vision that they have. These projects take two to three years to develop. They also
have strong financial credentials in the sector, and also a very good reputation in the areas that are probably 60% or 70% of the market for desalination. “We decided to create this new platform about 10 months ago, with the possibility to use this extension of FRV in the water sector, in the very parallel areas that the water business needs to be in, which is the Middle East, Latin America and Africa.” Keeping this vision in mind, Cosín and Arozamena built and developed a team with the necessary experience in developing projects in the municipal and industrial sectors, while also recruiting personnel with the knowledge and experience to extend the PPP model, so often used in the municipal sector, into the industrial sector. “In the last 20 years, working in 25 countries, we have developed and participated in $2.3 billion worth of project finance worldwide, while assisting more than five million people in different cities in China, Algeria, India and the US,” says Cosin. “We’ve created the business, developed it right from scratch,
and our idea is that we can tender for the utilities that launch internationally, but also to help many of the utilities that do not have the framework to launch this internationally. “It’s in our DNA to assume this risk, because we have the experience. This is what we feel comfortable with, and we have the experience to handle assets that we’ve created from scratch. Our idea is to give comfort to the customers and investors, to operate the plants and keep them in operation. But when it is stable and we’ve reduced the risks from construction and development, our idea is to rotate the assets.” “When we sell the assets, what we do is rotate those funds into developing new projects,” Arozamena chimes in. “We are not a quoted company, and we don’t intend to be a quoted company, so we will only do those projects that make sense to us. “We’re not in this business to create a huge volume that will eventually IPO, or to sell to someone. This is a very longterm vision. It takes us some time to get into a new business, but when we do, it’s on a very long-term basis,” he concludes.
Project Profile
THE LIV 24 February 2017
Project Profile
Big Project ME takes a look at The Sustainable City, a Dubai-based Diamond Developers mixed-use residential project that shows the way towards a greener future
ING LAB February 2017 25
Project Profile
I
n the last two or three years, Dubai has wholeheartedly embraced the concept of sustainability and green building, with the municipality putting in place standards that govern the way buildings and structures are built and developed, keeping in mind the efficiency and performance of systems and materials installed. This shift in mind-set has led to a number of projects cropping up in the emirate, all espousing the green mentality that the leadership of Dubai has called for. While these projects are certainly commendable, they have either been individual buildings or relatively smallscale developments that aim to be pilot projects for the country and the construction industry. However, one developer decided to take on board the sustainability concept and elevate it to a whole new level,
launching what is regarded as Dubai’s first ever sustainable mega-project. Known as The Sustainable City, the Diamond Developers-backed project is a hugely ambitious mixed-use residential community that aims to show that large-scale development can be done while embracing the core concepts of sustainability. Spread across 46 hectares (464,515sqm), the project is in the Dubailand area, on Al Qudra Road. It consists of two phases, the first of which was completed in Q4 2016. With work on Phase Two now in the development phase, Big Project ME met with Karim El-Jisr, the director of the Diamond Innovation Centre – set to be the hub of The Sustainable City when complete – to find out just why this project is so important to the future of development, not just in Dubai but across the GCC. “Construction actually started in January 2014, and within two years the first people moved in and the first villas were handed over. Currently, we’re at 60% occupancy, plus we have 70% occupancy in the mixed-use area,” says El-Jisr. “The mixed-use area has 15,000sqm of rental space, 40% of which are apartments. We have
“It’s no longer a choice, and we really have to think sustainably, design sustainably and build sustainably, by necessity”
The Green Spine Running through The Sustainable City is a green belt that will contain greenhouses and sustainable farms.
26 February 2017
89 apartments – studios, one- and two-bedrooms. 70% of those have been rented out. They are smaller units and more affordable.” Phase One also consists of five clusters of 100 villas, a total of 500 residences that connect to a central green spine that runs the length of the city. Each cluster comprises of 90 Courtyard villas, eight Garden villas and two Signature villas. The L-shaped two-storey villas have been designed to meet the highest environmental performance standards, the developer says, with solar panels on every home. The clusters have also been designed to be car-free zones, with narrow, shaded streets reminiscent of the traditional sikkas found in older Arabian neighbourhoods. Each cluster will also have four amenity plazas, with one central plaza that contains a cooling tower, along with shaded communal gardens and playgrounds. Also part of Phase One is The Square, a community mall near the entrance of the city which has five low-rise (ground plus three floors) blocks which contain retail and hospitality outlets, along with the aforementioned apartments. Furthermore, a mosque that will house 700 worshippers has also been built to green building standards, with technologies in place to minimise energy and water consumption. The final part of Phase One will be the Equestrian Centre, which is being designed to cater to residents and students from schools in Dubai. “Phase One also includes the start of construction for the ring road, and what we call the Buffer Zone. There is a 30-metre-wide buffer zone around the city, which really protects it from the dust and the noise. It also provides a beautiful ecosystem.” This buffer zone consists of 2,500 trees designed to create an ecological habitat while also helping to cut down on air and
Project Profile
Green living The Sustainable City will contain residential, retail, commercial and community spaces, all built around core sustainability concepts.
noise pollution. The trees have been organised into three layers, with some reaching up to 10 metres in height. The first layer aims to reduce the amount of noise and dust that reaches the community, while the second layer is to provide shade for the cycle track that encircles the project, with the third layer of date palms part of the city’s “productive landscape”. As part of the project’s sustainability commitments, El-Jisr explains that the cycle track has a bioswale which collects and filters storm water run-off, thereby recharging the groundwater table, while the buffer zone itself is watered by treated effluent from the community.
Running through the centre of the project will be The Central Green Spine, a park that covers the entire length of the community and has more than three kilometres of recreation and outdoor facilities designed to encourage residents to live an active lifestyle, the developer says. Furthermore, there are 11 bio-dome greenhouses installed along the length of the Spine, with total capacity of more than 3,000sqm for urban farming. As Karim El-Jisr explains, this is part of the developer’s plan to introduce the concept of zeromileage food to the community. “We have a food/farming vertical which aims to shorten
the distance between production and consumption. It’s known as the farm-to-table approach, which is zero-mileage food. We’ve integrated farming into the city, and we believe that this should be the mode in the future.” Like the buffer zone, the Central Green Spine and greenhouses are irrigated with 100% recycled greywater – water collected from the villas and treated in a belowground treatment facility on-site. Looking at the development of the project, El-Jisr explains that Diamond Developers took a very active role during the construction process, using sister companies and entities to develop Phase One, a model that
will continue into Phase Two. “When it came to solar installations, there is a company called City Solar. We wanted to have an entity that assumed full responsibility for the solar solutions provided, from A-Z. This was really a turnkey solution provided by City Solar, and they continue to monitor the performance of the panels today. Our goal was to install 10MW, which is 40,000 panels. So far, we’ve installed 25,000. It’s been a fantastic journey full of learning. It’s not been straightforward, but this is part of innovation and pushing the boundaries of sustainability,” he asserts. “On the construction side, we had another sister company called Jeet Building Contracting. They are contractors, but they receive all the drawings, all the requirements and all the VOQs from us. We are also monitoring the procurement process, while also supervising the construction phases as well.” This attention to detail even extends to making sure the development team behind the project is aware of the most minute details of the materials being used, El-Jisr says. “We go all the way down to the nitty-gritty of the materials
Recycled water The Sustainable City has 100% recycled greywater, with water collected from below the villas and treated in a below-ground treatment facility on-site.
February 2017 27
Project Profile
and the specifications. We have data sheets for everything, and we know exactly the U-values of the windows, the installation, the manufacturer and so on. We even know the cross-section and the profile of the precast walls and so on. All of that was decided by us and supplied by different manufacturers and vendors, while the construction itself was spearheaded by Jeet.” Diamond Developers’ focus is now on Phase Two. El-Jisr points out that planning for this segment of the development has been underway for more than two years. “In Phase Two, we have the Hotel Indigo, which has 143 keys; we have a Wellness Centre, for in-patients who require physiotherapy and so on, with 30 rooms. Then we have a school, the Sustainable City School, and we have the Innovation Centres.” Housed within The Sustainable City, the Hotel Indigo will be a net zero energy building with 100% of its energy needs met through the use of solar power, El-Jisr says. Designed to be low-rise and unobtrusive, the hotel will see all waste water produced recycled, while all material waste will be sorted at source and recycled.
Jewel in the crown The Diamond Innovation Centre is considered to be the brain of The Sustainable City, housing research and data collection firms in its office spaces.
The school itself will be an integral part of the community, which will include sustainability (in all its forms – environmental, social and economic) into its curriculum. An operator has already been chosen for the school, he adds. “These buildings are at different stages of design. Some of them are at the final detailed design, or are at different stages of permitting, because we have to go through preliminary permits and final permits and so on. Within the next three months, it’s our plan to commence breaking ground on Phase Two, with at least two of these four iconic buildings,” he says, adding that he expects all of the second phase to be completed
by the fourth quarter of 2018. The jewel in the crown however, is the Diamond Innovation Centre, referred to as the brain of The Sustainable City. It is set to be the first negative lifecycle footprint building in the region, which means that over its anticipated 50-year lifespan, the building will produce 140% of its energy requirements, offsetting emissions that will occur during construction, operation and decommissioning. As the director of the Diamond Innovation Centre, Karim El-Jisr is intimately involved in the planning and design of the building, and he explains that the Centre will be a repository of knowledge
The green belt Encircling The Sustainable City is a green belt consisting of thousands of trees, which reduce dust and pollution.
28 February 2017
and information which will serve as a showcase for the latest advancements in sustainability. “It was always part of the masterplan, and it was always our idea that everything we learnt from the city would be harnessed and harvested by the Innovation Centre. This is a place where we can scale it up, where we can replicate it and adapt it to different climates and zones around the world. “As you can see on the masterplan, it is a beautiful building which has 12,000sqm of builtup space and area. The building itself will generate 140% of its operational energy requirements, which means it’s going to produce more electricity than it requires. The additional 40% will offset the energy that went into the manufacturing and construction. It means that we can export and make use of that electricity in other parts of The Sustainable City. “It is our intent that it will also be off-grid, although the entire city is grid connected, as this is part of the procedures and master regulations that were made available to us by DEWA. But for purposes of research and development, we want to operate the building off-grid – both for water and electricity.” The building itself is divided into two large sections, with the larger section housing a theatre
Project Profile
for 700 people, along with conference rooms in the lower deck. The other wing of the building will house a large atrium, with offices along the sides. A legal entity for the Innovation Centre will be set up, which will be separate from Diamond Developers, El-Jisr says. That entity will operate and manage the Innovation Centre. “This is where we’ll be based as an entity, and we’ll have shared office space for universities and partner organisations. We were just in discussions with HeriotWatt University, and we’ve started doing a number of activities with them. Although they’re based in Scotland, they also have a Dubai campus and they very much want to be involved in the project, so we want to provide a space that is really forward- and future-looking where we can collaborate with universities and organisations,” he outlines. “Operationally, we very much want to engage a carefully selected group of organisations and academic institutions to be a part of this experience and this experiment. We call this city a living lab, and we continue to learn. We wish to see the performance of the villas, we wish to monitor the DEWA consumption of water and electricity, and we wish to monitor the performance of the solar panels. “So we’ve teamed up with eight universities so far. I’ve mentioned Heriot-Watt, but there’s also the University of California, Davis; the American University of Beirut; the American University of Cairo and so on. We have various research collaborations going on with them at the moment,” El-Jisr continues. “And then we also have nonacademic partners, such as the WWF, who will be moving into the city. They will implement a greenhouse gas inventory of the city. That is not only in terms of electricity and water consumption,
“We believe that The Sustainable City has to be easy and inexpensive to operate. If we go high-tech, it might become too expensive and highmaintenance, it’s very critical to maintain this balance” Community spaces Each residential cluster will have community spaces where residents and visitors can gather and spend time outdoors.
but also in terms of mobility, farming, products and so on. We want to capture all of that data and turn it into a number. This will be the work of the WWF and they will report on these emissions. We have a third entity – Dubai Carbon Centre of Excellence – who will verify these emissions.” Highlighting just how serious Diamond Developers is about the viability of The Sustainable City, El-Jisr reveals that it has teamed up with Emirates Environmental Group (EEG) and Dubai Carbon, and also has an ongoing collaboration with Emirates Green Building Council. El-Jisr points out that the UAE on average emits 19 metric tonnes of carbon dioxide per year, putting it in the top 10 emitters in the world. In comparison, he says, Western Europe lies between five and seven metric tonnes.
Looking at the state of the world, he asserts that business as usual is no longer acceptable and that the time for change is now, which is why Diamond Developers has decided to face the challenge head-on. “It’s no longer a choice, and we really have to think sustainably, design sustainably and build sustainably, by necessity,” he emphasises. “This was the premise of building The Sustainable City, which is really to bring down consumption and manage the demand for energy and water, so that we can bring down emissions gradually. That is the overarching principle.” “First of all, goal number one is to verify and demonstrate that everything we set out to do has been achieved, and if there are any shortcomings, then we need to address them. We need full disclosure of what we’ve done and we need to verify those numbers. That’s really important for the science of it. We’re not into inflating or exaggerating anything. We have to demonstrate that we’ve achieved our goals. “Secondly, as we continue to demonstrate that – because it’s an ongoing process – we very much would like to inspire governments, entities and other developers to follow suit. What we’ve done is deploy a combination of technologies and design. We’ve combined high-tech and lowtech, because we believe that The Sustainable City has to be easy and inexpensive to operate. If we go high-tech, it might become too expensive, it’s very critical to maintain this balance.” “Finally, we wish to inspire and to replicate this city, in any format or in any size, because it’s scalable. We can do something smaller or we can do something bigger, either in countries with similar climates or we can export it to other climates.” February 2017 29
Temporary Structures
Creating a Permanent SPaCe
Edward Gallagher of De Boer Middle East speaks to Big Project ME about how the Dutch temporary structure specialist is building a niche in the UAE and wider GCC market
increased specialisation Customers in the GCC are looking for temporary structures that are increasingly specialised and sophisticated.
30 February 2017
What is the demand like for temporary structures in the UAE, and in the wider GCC?
The UAE has always been the major hub for events in the region and this has driven the demand for temporary structures, but we are seeing a move away from traditional ‘tents’ and an increasing demand for more sophisticated, permanent-look structures. This is an area of specialisation for De Boer. Visitors no longer want to see standard A-frame tents. Instead, inspirational structures are expected, with
floor-to-ceiling glazing, clear roof sails, curves, mezzanine floor and even double- and triplestorey buildings with balconies, etc. There is an ever-increasing demand for high-specification and design-led temporary structures, especially in the events sector, and this is expected to continue through to Expo 2020, where some of the most innovative and unique temporary structures that the world has to offer will be unveiled. Outside of the UAE, economies of other GCC countries are diversifying and in doing so, they
Temporary Structures
are focusing on becoming hubs for MICE [Meetings, Incentives, Conferences & Exhibitions]. Also, their stated objectives are to promote domestic tourism and to attract more international visitors through holding major global events – particularly sporting events (for example, we can look to Qatar with the World Cup and a substantial number of other major championships which have come in the run-up to it, such as the Qatar Masters Golf tournament) – which has a huge impact on the demand for temporary structures.
Of course, the demand for short-term structures in the way you may traditionally think of them, such as temporary hospitality tents, still exists, but with advances in temporary building technology over the last 10 years, we are now building full temporary stadia for major sports events through to huge logistics warehouses used for years in advance of events. De Boer has even supplied entire turnkey exhibition centres that have been used while upgrades or new permanent centres are constructed. Some of De Boer’s semi-permanent structures have been in daily use for up to 10 years, which demonstrates the durability of some temporary structures. What applications and industries are your temporary structures used for?
In the semi-permanent structure environment mentioned above, De Boer supplies airport terminals, logistics hubs, storage centres, theatres, schools and a huge range of other fully functioning operational facilities. Things have moved on a long way from the fabric-sided ‘tents’ traditionally thought of when you say temporary structure. Those products are still available of course, and there is a need for them, but De Boer’s range of semi-permanent solutions have high visual impact, insulation, structural strength and the flexibility of a permanent structure. The difference is that they can be built in weeks instead of years. That has a huge appeal, especially in the Middle East where demand for extra infrastructure is far ahead of the ability of governments or organising bodies to deliver using traditional construction methods. For example, a De Boer
“Undoubtedly, these megaevents will demand a high volume of temporary infrastructure. Again, these will not only be traditional event structures, such as security tents, temporary hospitality venues, but Expo 2020 will likely use temporary facilities for many years after the event, such as for on-site warehousing and logistics purposes”
customer had land they wanted to rent out as storage and warehousing in a premium location near a major port. Based on an initial feasibility study, the up-front investment involved and one-year construction time for permanent buildings was not viable. Instead, they found temporary structures to be the solution. In working with De Boer, this company had their first warehouse built on-site in only five weeks – fully ready to accept their first customer. And consequently, each time a new client has been secured, they have added a new temporary warehouse structure on a lease-to-purchase basis. This minimised risk by having customers already signed up first and the up-front cash to outlay in a short timeframe. While this concept may not be suitable in every situation, any company or organisation wanting to rapidly mobilise infrastructure, maybe while waiting for permanent facilities to be built, can consider temporary structures without compromising on quality. Today’s temporary structures are ideal growth enablers. Are you anticipating an increase in demand in the build-up to Expo 2020 and the Qatar World Cup?
Undoubtedly, these mega-events will demand a high volume of temporary infrastructure. Again, these will not only be traditional event structures, such as security tents, temporary hospitality venues, but Expo 2020 will likely use temporary facilities for many years after the event, such as for on-site warehousing and logistics purposes. The organisers of the 2022 World Cup have committed to fully temporary stadia. It is routine for the host city or
February 2017 31
Temporary Structures
future uses can you see for it?
country to experience an influx of other large-scale events in the run-up to such global events, so this is likely to drive demand in the years ahead. We also expect the appetite for innovation to continue to grow, so R&D continues to be a major focus for De Boer. Our unique circular panorama dome structure is an example of this. Major event organisers generally want to wow their audience, so we can expect both Expo 2020 and the World Cup to deploy a range of next-generation temporary structures that will blur the lines between temporary and permanent buildings.
While temporary structures are designed differently than their permanent counterparts, focusing more on lightweight materials with minimal permanent foundations etc, there is very little that temporary buildings cannot do. While we cannot build a temporary Burj Khalifa tower (yet!), it really comes down to the bespoke designs and totally unique shapes that we can achieve with temporary structures. It is a modular, flexible, systemised approach. De Boer has built schools, shops, warehouses, aircraft hangers, airport terminals, museums and even a prison! In fact, we also built the world’s largest temporary exhibition hall for the Farnborough international Air Show in the UK.
How can your structures help solve some of the major issues facing these events?
Increasingly, clients are demanding more creative and innovative uses for temporary buildings, especially during major permanent construction projects such as new airport and theme park builds. The efficiencies of building a relocatable logistics warehouse on a site are significant – a warehouse that can be moved to another location when the phased construction schedule requires it. The savings can be huge when you are talking about thousands of truck movements. Furthermore, many mega-events in the past have left an expensive legacy of unused buildings, such as those permanently constructed for the Olympic Games. They have subsequently cost millions to maintain and operate, and in the end many fall into decay. A large number of former Olympic venues in Beijing, Athens and Sochi now lie empty and abandoned because they have no long-term use. The real legacy-focused countries and organising bodies
32 February 2017
What are your plans for the company in the GCC? What are your targets for 2017?
Huge savings Temporary structures offer clients huge savings on time spent on construction and the cost and time spent on movement of materials.
are now using innovative temporary systems to build temporary venues where no future use for permanent facilities can be seen. These temporary structures can then be dismantled after the event and reused elsewhere. In fact, we are now seeing the various awarding bodies such as the IOC absolutely insisting on temporary structure use in future bids, making temporary venues an essential part of these large-scale events in the future. Temporary structures are considered to be a more sustainable solution. How far can the technology around temporary structures go? What
“Some of our semi-permanent structures have been in daily use for up to 10 years, which demonstrates the durability of some temporary structures”
De Boer is focused on continuing the great momentum and growth experienced over the last three years across the GCC. Fifteen years ago, De Boer was largely active only in Qatar, although we had delivered some work within the UAE. In the last four years in particular, we have expanded our project and operational reach across the region, delivering extensively throughout the UAE, Saudi Arabia and Qatar, with additional projects in Kuwait, Oman and Bahrain. With the increased awareness of how temporary structures can be used for events and temporary business space needs, we are expecting this upward demand trend to continue as we support major infrastructure projects, including mega-events and mega construction projects in the Middle East region.
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Comment
James Plant
Back with a Bang
James Plant, associate at Holman Fenwick Willan Middle East, provides his thoughts on Dubai’s new budget for 2017, which will include $2.20bn for government spending on infrastructure Dubai can always be relied upon to start the New Year with a bang. 2017 was no exception, with businesses riding high on news that Dubai’s non-oil economy grew in December at the fastest rate since July. The fact that this was driven largely by strong growth in the construction sector will be particularly encouraging for contractors. There was more good news for the construction industry, with Dubai announcing a budget for 2017 that includes $2.20 billion for government spending on infrastructure – a 27% increase on last year. 34 February 2017
Contracts are expected to be awarded for a raft of new projects in 2017, with several major new building projects in the pipeline. Nakheel alone reportedly plans to award more than $2.5bn of construction contracts in 2017. This surge of activity should trickle down the supply chain and provide welcome relief for the industry, following a relative lull in new projects during 2016. Contractors will be eager to capitalise on these opportunities. When doing so, however, contactors and employers alike should be wary of some potential pitfalls, to avoid unexpected fireworks at a later date.
trickle down the supply chain The surge in construction activity is expected to benefit the industry supply chain and provide welcome relief.
When entering into new contracts, the parties are generally looking to agree a bargain that strikes the right balance between various competing factors. These include price, apportionment of risk and the deadline for completion. The last of these is likely to be especially important for projects relating to Expo 2020, which obviously cannot afford to be delivered late. An employer will naturally seek to protect itself from risk, but must recognise that the more risk it seeks to shift to the contractor, the higher the price it has to pay. Relatively speaking, compared to some other Gulf
states, employers in the UAE have apportioned risk in a way that has not unduly driven up the cost of construction. It is important, for the health of the construction industry, and for Dubai’s continued growth, that this approach continues. There are certain risks that are logically borne by one party instead of the other. Forcing the wrong party to shoulder that risk creates an unnatural position, which all too often ends in tears. One such risk, which naturally sits with the employer but is sometimes pushed onto the shoulders of contractors, is the potential for increases in
Comment
“When entering into a construction contract, as well as seeking to avoid disputes by apportioning risk, it is just as important to include a mechanism for quickly and efficiently resolving disputes if they do arise�
the prices of raw materials. The prices of some of the key raw materials used in construction are widely tipped to rise over the next two years. Recovering oil prices, coupled with the gradual removal of fuel subsidies, could also drive up prices. The introduction of VAT in January 2018 could put further upwards pressure on prices. There are a number of reasons why, especially in the current economic and political conditions, it is logical that employers rather than contractors should bear the risk of such price increases. Firstly, employers are generally better positioned than contractors
to absorb the impact of dramatic price increases. Contractors are cash businesses, with relatively little in the way of assets. This fact was laid bare by the commodities booms of the 2000s, when the surging cost of commodities forced many contractors in the Gulf region out of business. This is bad for employers, who are then forced to look elsewhere to complete their projects. In the long term, this thinning of the herd also reduces competition and drives up the cost of construction. Secondly, price fluctuations are inherently unpredictable. If a contractor is asked to carry the risk of price fluctuations, it
will, or should, make sufficient allowance in its tender price to cover that potential risk. This results in the employer paying up front for future price increases that may or may not come. There are too many factors at play to accurately predict how prices will change over the long term. The US dollar continues to strengthen, which ought to drive further price increases. However, Mr Trump is seemingly intent on maintaining barriers to international trade, and the effects of that are more difficult to predict. All of this asks the question: why would an employer pay up
front for something that it may never have to pay for at all? Ultimately, there is no perfect solution to apportionment of risk under a construction contract. Construction is inherently difficult and unpredictable, and one party always suffers more than the other when things go wrong, which can lead to disputes. When entering into a construction contract, as well as seeking to avoid disputes by apportioning risk, it is just as important to include a mechanism for quickly and efficiently resolving disputes if they do arise. International arbitration is an excellent forum for resolving large disputes, after the project has finished. However, be under no illusions that it is anything but an expensive and timeconsuming process. It is not suitable for quickly unlocking disputes during the project. We encourage our clients to consider making provision in their contracts for some form of alternative dispute resolution, such as expert determination or adjudication. These processes, if explained well in the contract or accompanying procedural rules, can be used to quickly resolve disputes that arise during the project, which might otherwise escalate and cause the project to stall or fail altogether. These processes can be binding or non-binding. Alternatively, they can become binding if neither party gives notice of intention to refer the dispute to arbitration or litigation within a certain period, and they effectively accept the decision. There will always be risks that accompany the rewards of a construction boom. Provided those risks are sensibly apportioned, and the contract is set up to deal efficiently with disputes that might arise, there is no need for those risks to spoil the party. February 2017 35
Event Review
the importance of cooperation The 2017 edition of Samsung C&T Partners’ Day was an opportunity for the Korean contractor to speak to its global partners about cooperation and shared values.
partnership Building Big Project ME was invited to Samsung C&T’s Partners’ Day in January, where the Korean contracting giant provided an insight into its performances in 2016 and its plans for the year ahead
36 February 2017
On January 19, Samsung C&T held its annual Partners’ Day event at the Sheraton Grand Hotel in Dubai. In front of a select group of attendees from 29 key partners and various project sites from across the GCC and MENA region, the contractor presented its global procurement and MEA marketing strategies, along with its QHSE Policies and Objectives.
The 2017 edition of the event marked the fourth consecutive year that the Partners’ Day was held in the GCC. The occasion also provided a forum for the contractor to speak to its global
partners about the importance of their continued cooperation, which has led to the successful implementation of a number of key projects, while also sharing its core values with them. Furthermore, the company also presented seven different partner firms with awards in recognition of their accomplishments and performance excellence. “Samsung C&T is proud to have worked alongside its valued partners on several remarkable projects across the GCC region,” said Elie Obeid, head of the company’s Middle East regional
Event Review
office and event host. “Through continued communication with trusted partners, Samsung C&T is committed to ensuring the safety and quality of our projects and further building the trust of our customers.” With the contractor currently participating in 17 projects worth $13.5 billion, and with more than a thousand partners across the GCC, Big Project ME was invited to attend the event and had the opportunity to speak with key members of staff to gain a better understanding of how the company is
moving forward in 2017. “In 2016, Samsung C&T achieved $11.2 billion in group revenue,” said Chloe Lee, general manager – Purchasing at Samsung C&T’s Korea headquarters. “Out of the total revenue, roughly $6.3 billion was generated from outside Korea. Business outside of Korea has actually surpassed domestic business, starting from 2014.” “This is a result of Samsung C&T overseeing of projects making a big leap over the past 10 years. The overseas project awards actually more than tripled between 2005 to 2015,
with average award per annum reaching $7.5 billion in 2015.” All three major business divisions – Building, Civil and Plant – witnessed significant growth during this period, with the Civil division actually rising more than five-fold. However, Lee said 2016 was a difficult year for Samsung C&T, with a slowdown apparent across all regions and business units. “The awards trends in 2016 slowed down, especially in the MENA region, and as a result the Plant division actually suffered the most in terms of awards.”
Looking ahead to 2017, Lee said the contractor expects the coming year to see an improvement in awards trends, driven by the Civil and Plant business units, with better flows in the MENA region thanks to the improvement in Power Plants and Gas Infrastructure demand. “We’re coming into 2017 with a more proactive project identification across the region. We expect total awards to recover, spearheaded by the recovery in the Plant and Civil business units. We especially expect the Plant division to see
February 2017 37
Event Review
“We’re coming into 2017 with a more proactive project identification across the region. We expect total awards to recover, spearheaded by the recovery in the Plant and Civil business units” a significant increase of about 35% in the region, which will be channelled by more project identification across the MENA region – in other countries outside of the original focus of KSA and the UAE, such as Oman and Kuwait, for example. The overall project awards for 2017 is expected to reach a little bit more than $9 billion.” Keeping this in mind, Big Project ME caught up with Yangjin Yoon, head of IPO and Project Execution Support and deputy general manager of the Middle East and Africa Regional Office for Samsung C&T, who said the contractor has decided to slightly tweak its approach in the market. “Our company has decided to focus on what we’re doing
38 February 2017
well, and where we have competitiveness,” he said. “So, for example in the Plant business unit, we have a very strong competitiveness in power plants and gas terminals, so we’re going to focus on that.” “We are targeting some projects – there is an Oman IPP project, the Facility E project in Qatar and the EMAL expansion project in the UAE. So we’re clearly targeting [a particular type of project],” Yoon pointed out, adding that another civil engineering target is the storm water tunnel project being developed in the UAE. He said the event is an important part of Samsung C&T’s plans for the coming year, as it allows them to reaffirm and strengthen their relationships
with their Global Partnership Agreement partners. “We have a very long-term relationship with these partners, so that we can have a collaborative environment during the bidding stage. Actually, we invite them not only after we’ve won a project, but before, so that we can work together during the bidding stage. Once we’re awarded a contract, then we can automatically nominate our partners for the contract, so that we can have more competitive costs, and they can have their volume of work. We make a synergy with our partners, that’s our strategy,” he explained. Looking further ahead, Yoon touched upon the growing prominence of alternative financing in the construction industry, and highlighted the
role Samsung C&T can play in that particular sector of the market, specifically in the publicprivate partnership space. “Samsung C&T – the C stands for construction, and the T for trading,” he pointed out. “One of the trading divisions does financing. We have different divisions, but we can work together. And if we work together, then Samsung Trading can provide the financial aid, while the Construction division can provide the equipment and knowledge. It can be good for us.” “This is a new approach for us, so we will approach it carefully. One good example is the Turkey Gaziantep Hospital PPP, which we won in 2016. If it’s a success, then maybe we can expand it [here],” he concluded.
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Green Business
Big Project ME headed up to Abu Dhabi in January to check out WFES and find out what sort of market we can expect for the renewable energy sector
Greater interest in renewables Exhibitors at WFES 2017 said that there was greater interest and awareness about renewable energy and sustainability at this year’s event.
40 February 2017
The 10th World Future Energy Summit (WFES) was held January 15-18 at the Abu Dhabi National Exhibition Centre, as part of Abu Dhabi Sustainability Week. The annual event saw strong growth in commercial activity surrounding the event, while the number of hosted business meetings jumped 60%, organisers said.
Hosted by Masdar, WFES is intended to promote the business case for industries involved in sustainable energy, water and waste management. With the rapid acceleration in the renewable energy market
across the MENA and South Asian market, this year’s event saw an estimated 38,000 attendees from 175 countries, while around 880 companies from 40 countries exhibited. These attendance figures also included 1,675 CEOs from 128 companies, organisers added. “The success of the World Future Energy Summit over the last decade has been built on partnership – on bringing together governments and businesses, and sharing the goal to make renewable energy successful, dependable and
Show Review
commercially viable,” said Mohamed Jameel Al Ramahi, CEO of Masdar, Abu Dhabi’s renewable energy company. “We are delighted to have hosted an event that has encouraged such lively debate, based on shared knowledge from around the region and international markets. The event has also helped both new relationships to be forged, and existing relationships at home and abroad to be cultivated. “Most importantly, the World Future Energy Summit has once again inspired real decision-
making. We can be proud that the 10th edition of this global event has been a successful platform for new agreements, partnerships and initiatives that will take the renewable energy and clean technologies sector forward.” Saudi Arabia’s plans to add around 10GW of renewables to its energy mix generated a lot of interest at the event, with the official Saudi delegation meeting with developers, investors and technology suppliers. The delegation was led by HE Khalid A Al-Falih, the Saudi Arabian Energy Minister, who confirmed that the first round of tenders for about $50 billion worth of projects would be launched shortly. Another country to attract significant attention from attendees was India, which has plans in place to add 175GW of renewables by 2022. Piyush Goyal, Energy Minister for India, was the leader of the national delegation that met potential partners, and he also held private meetings with organisations like Masdar and DEWA, along with other major players in the Indian renewable energy market such as AVAADA Energy and Mytrah Energy Limited. Major announcements at WFES included a joint DEWA and Masdar announcement of plans to start building the third stage of the Mohammed bin Rashid Al Maktoum Solar Park, which at 800MW will be the world’s largest PV plant on completion; a $50m UAE fund for renewable energy projects in the Caribbean; a cooperation agreement between Masdar, Qatar Electricity and Water Corporation, and Nebras Power to develop renewable and sustainable energy projects; Masdar’s purchase of a 25% stake in the pilot Hywind Scotland floating offshore wind farm in the North Sea; and an agreement
“PV storage will certainly be the next challenge for the renewable energy sector in the region. Renewable energy is a fantastic energy, but we need to solve the issue of intermittence. With all the progress that has been done in the storage of energy, like PV storage, this will be the final matter to deal with, to meet the full needs of the power industries”
between Masdar and Bee’ah to develop a 300,000t wasteto-energy plant in Sharjah. Masdar will also provide consultancy services for the building of a 5MW grid-connected solar power plant in Seychelles. “The growth in serious buyer activity, and the fact that so many buyers clearly see WFES as a place to start a dialogue with the widest selection of suppliers, underlines the success of the event,” said Ara Fernezian, group managing director – Middle East at Reed Exhibitions, which organises WFES in partnership with Masdar. “Renewables have very clearly moved past the point where we were trying to create a market, and we are now part of a very dynamic business environment.” Speaking to Big Project ME at the show, Laurent Becerra, vice president – Middle East and Africa for EDF Energies Nouvelles, said that the UAE was a key market for the renewable energy sector. “The UAE is a key country and a very interesting market. It has been a pioneer for the last three years, starting with Dubai, believing that renewable energy will be sustainable, and sustainable not just in terms of your carbon footprint, but also in terms of price. It has achieved the last step to show that renewable energy, through photovoltaic solar, can be more competitive than conventional energy. “While the UAE is a key market, the next major one is Saudi Arabia, because they plan to develop 10MW worth of energy projects, and with 20 million people, the demand will certainly be important. The market will be similar to the UAE. The other GCC countries will also be key – Kuwait and Qatar in particular. We have some
February 2017 41
Show Review
partnerships in place with Qatar entities, so we will be involved in some projects there. Oman will also be an interesting market in the region, along with Egypt. “I think now, with oil prices decreasing all over the world, the last step here is to convince governments of the economical sustainability of renewable energy. I think this is done now, so this is a strong last step to complete, before we have all the regional governments on the programme,” Becerra added, pointing out that he saw photovoltaic (PV) storage as the next major challenge for the sector. “PV storage will certainly be the next challenge for the renewable energy sector in the region. Renewable energy is a fantastic energy, but we need to solve the issue of intermittence.
“We can be proud that the event has been a successful platform for new agreements, partnerships and initiatives that will take the renewable energy and clean technologies sector forward”
Convincing governments is the next step With oil prices decreasing all over the world, Laurent Becerra says that governments must be convinced of the economical sustainability of renewable energy.
42 February 2017
With all the progress that has been done in the storage of energy, like PV storage, this will be the final matter to deal with, to meet the full needs of the power industries.” Finally, Dhaen Al Mheiri, chief innovation officer at the UAE Ministry of Infrastructure Development, told Big Project ME that sustainability was a huge part of the ministry’s plans moving forward. “This year is our first participation as the Ministry of Infrastructure Development at WFES. We are responsible for the establishment of all federal government facilities – hospitals, schools and even some housing projects for locals. As such, sustainability plays a full part in all of our projects. All our projects have sustainable products,
materials and procedures. “We have to think about it every day, and at every moment when we’re doing any project – from planning through to design, execution and even maintenance. We’re thinking about how to make our projects sustainable,” he asserted. “If you had asked me several years ago [about sustainability], I would have said that it was difficult to push it. But now we feel that society and the environment around us is very mature. They are pushing us to do our best, to provide the latest sustainable technology. “I think all the stakeholders – even contractors, suppliers and citizens – are supporting us to do anything that will save energy and the environment,” he concluded.
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Power Generation
MacroAir HVLS MacroAir HVLS fans are designed for indoor, outdoor and heavy duty applications. MacroAir HVLS fans can be used in airports, malls, restaurants, offices, schools, clubs, gyms, factories, warehouses and workshops. MacroAir fans are among the most efficient air movement products on earth. Using the perfect 6ixBladeTM design to move large quantities of air with the least energy required, our fans employ high volume and low speed to reduce energy use by 20% or more. Our 24` Air VolutionD fan can make an 22,000 sq. ft. space feel 5 to 15 0F cooler, dramatically lowering energy costs and improving comfort. This product is mostly used by specialist contractors for special
Evaporative Cooling Effect
green projects because they offer energy saving and smart solutions for air ventilation and movement. USP s of the MacroAir HVLS Fan: Energy Saving – Covers large areas and circulates a huge amount of air with only 1Kwh, and compliments AC systems by saving up to 20% energy, while minimising the need for ducting, reducing AC working hours. Cost efficient – AirVolution-D
are zero maintenance ventilation systems 50,000-Hour Warranty – AirVolution-D fans are designed to perform longer than any HVLS fan on the market. Run them at any speed, in any environment, and if anything needs repair, MacroAir will fix it or replace it for free within 50,000 hours of use. That’s more than 24 years of typical use. Highest Efficiency – Even with a smaller profile, the
Energy Saving & Energy Efficient HVLS (High Volume Low Speed) Fan 8ft-24ft sizes De Stratify Layers conditioned air. HVAC is enhanced-Cost go down Can reduce 20% in cooling costs Evaporative cooling effect 6-8 degrees cooler Can reduce humidity up to 30%
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D-Drive motor was specifically designed to perform longer and stronger. Moving air 50% more efficiently and generating more wind power at the same speed, AirVolution-D uses 25% less energy, costing just fils a day. Rated up to 80° C – This is 20°C higher than any other HVLS fan. AirBrain Processor – Inside AirVolution-D is a smart processor that acts as the brain behind the fan, which can automatically adjust it to different power sources and allow users to access real time performance analytics. The processor also has capabilities to be remotely updated. Easy Installation & 45% Lighter – By eliminating the gearbox, this incredible loss of weight reduces load-stress and results in a sleeker aesthetic.
AC+HVLS also 6-8 degrees thermostat increases Consumes only 1.5kw electricity One fan can cool 2000sqm of large space Warranty of 50.000 hours Air Brain, automatic switch off with fire alarm system & ADS
Power Generation
Venus Tools Venus Tools is the official distributor of Ford Tools in the GCC. About Venus Tools: Venus Tools is a branch of Venus Machinery and Engineering Equipment (established in 2011) and part of a large group of companies in the Middle East with history of conducting businesses dating back to early 70’s. The group’s portfolio of companies is diversified and active throughout the Middle East, Africa and parts of Asia. About Ford Tools: Our team of experts at NINE HKG Ltd., with over 20 years of experience in the development and production of quality tools, has joined forces with the Ford Motor Company in order to develop a unique line of products that honors the legacy established by Henry Ford in terms of production of dependable and affordable goods.
February 2017 45
FOR 2 01 EME 7 TH
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FOR 2 01 EME 7 TH
WORLD TRADE CENTRE, DUBAI, UAE
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14 – 16 FEBRUARY 2017
T R A M S S CITIE
FOR 2 EME 01 7 TH
ENERGISING THE INDUSTRY
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FOR 2 EME 01 7 TH
Energising the industry… …with Smart City information, innovation and collaboration. At MEE 2017 you will discover what is changing in the power industry as a result of the focus on Smart Cities.
Discover: • Smart Cities Innovation Zone • Consultants’ Arena • Energising the Smart City Conference • MEE Awards for Smart City pioneers • Society of Engineers Workshop
FIND OUT MORE: WWW.MIDDLEEASTELECTRICITY.COM/SMARTCITIES
Power Generation
Lucy Electric Lucy Electric’s experienced engineers work at the forefront of network automation, in some of the world’s most innovative electricity markets. We are experts in secondary distribution networks with a deep understanding of the latest Smart Grid developments. Inspired by our 200-year engineering heritage, we design and manufacture cutting-edge, high performance products, which can be tailored to clients’ needs. From end-to-end automation systems to low-voltage monitoring, we develop forward-thinking solutions which solve tomorrow’s challenges, today. Our complete range of medium voltage, switching and protection solutions, for both underground and overhead line networks, includes SF6 gas and oil insulated
John Griffiths CEO, Lucy Electric.
ring main units (transformer or ground mounted); pole or structure mounted air break disconnectors; and air or gas load break switches. We have been attending MEE for over 16 years, as it presents the perfect opportunity to showcase our products, services and leading expertise to one of our key growth markets. At the event we be showcasing latest developments to our
automation solutions, together with a range of our existing products and services, including the Gemini 3 remote terminal unit (RTU), Solid Blade AX Air Break Disconnector switches, SCADA systems, and energy services. We will be launching two new products at the show: our new 36KV RMU – a first for Lucy Electric – which is an extension of the popular Aegis range, using our proven and reliable technology. Suitable for 36KV networks and renewable power generation connections, its uniquely compact design offers one of the smallest footprints on the market. Easy to install with simple and virtually maintenancefree operation, its outstanding combination of the highest power ratings, equipped with the highest
safety features and compliance with latest IEC standards, make the range suitable for both indoor and outdoor power distribution applications. Automationready with an integrated RTU, wide range of options and accessories it offers customers a cost effective, reliable and high performance 36KV solution. Secondly we will be launching the latest additions to our expanding GridKey LV/MV range. This includes the new 318 monitoring module featuring all core monitoring functionality in an entry level model for network operators rolling out the first stages of low voltage monitoring on their network; plus extended data centre solutions and additions to our range of highly sophisticated analytical tools.
Best-in-class solutions Visit the Lucy Electric team on stand 2D10 Hall 2 at MEE ’17 to find out about best-in-class secondary distribution network automation solutions. For more information on our solutions contact us on: +971 4 8129999 salesme@lucyelectric.com February 14th - 16th 2017
engineering intelligent solutions
www.lucyelectric.com
February 2017 47
Tenders
Top tenders Deira islanDs BoulevarD Project Budget $1,300,000,000 Project number MPP3086-U territory Dubai, United Arab Emirates client Nakheel PJSC (Dubai) Phone (+971-4) 390 3333 Fax (+971-4) 390 3314 email info@nakheel.ae Website www.nakheel.ae Description Construction of 16 residential towers reaching up to 21 floors in four clusters with 2,924 apartments and townhouses, including a podiumlevel car park with 4,500 spaces Period 2020 status New Tender tender categories Leisure & Entertainment, Prestige Buildings tender Products High-rise Towers, Residential Buildings, Retail Developments
Period 2020 status New Tender tender categories Construction & Contracting, Leisure & Entertainment tender Products Residential Buildings, Sports Complexes
cruDe oil-tochemicals Project Budget $30,000,000,000 Project number MPP3046-SA territory Riyadh 11422, Saudi Arabia client name Saudi Basic Industries Corporation (SABIC) Phone (+966-11) 225 8000/ 225 9701 Fax (+966-11) 225 9000
email info@sabic.com Website www.sabic.com Description Development of a crude oil-to-chemicals complex status New Tender tender categories Industrial & Special Projects, Oilfields & Refineries tender Products Chemical Plants
Palace oF justice construction Project Budget $500,000,000 Project number MPP2452-K territory Safat 13001, Kuwait client name Ministry of Public Works (Kuwait) address Ministry of Public Works Bldg, 3rd Floor, 6th Ring Road Phone (+965) 2538 5520 / 2538 5530 Fax (+965) 2538 5219 / 2538 5234 email hmansour@mpa.gov.kw
Description Construction of a new palace comprising two towers Period 2019 status New Tender tender categories Prestige Buildings tender Products Commercial Buildings, High-rise Towers
Batterjee meDical city Project Budget $600,000,000 Project number WPR1488-E territory Egypt client Al Batterjee Holding (Egypt) Description Construction of a Medical City comprising a 300-bed hospital. status New Tender tender categories Construction & Contracting, Medical & Healthcare tender Products Hospital Construction
KuWait olymPic village Project – jaBer al-ahmaD city Budget $1,000,000,000 Project number WPR1491-K territory Safat 13094, Kuwait client name Public Authority for Housing Welfare – PAHW (Kuwait) Phone (+965) 2530 1000 Fax (+965) 2538 7464 Website www.housing.gov.kw Description Construction of an Olympic Village comprising a 25,000-seat stadium, a swimming pool complex and a residential block for athletes
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
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EXTENDED WIRE ROPE SERVICE INTERVALS
THE NEW INDUSTRY STANDARD FROM JLG
JLG TAKES BOOM LIFT PERFORMANCE TO NEW HEIGHTS. AGAIN. Wire rope replacement intervals from JLG raise the bar for machine longevity. An industry first exclusive to JLG boom lifts, this new standard extends wire rope and sheave replacement intervals to 12 years (or 7,000 machine hours). Learn more at www.jlg.com/en-gb/wire-rope JLG Industries | JAFZA View | PO Box 262728 | LB 19, 20th Floor, Office 05 | Jebel Ali | Dubai | emacangus@jlg.com
Tenders
Middle East tenders UAE Four Points By sheraton hotel Project Budget $80,000,000 Project number WPR1451-U territory Northern Emirates client Starwood Hotels & Resorts Worldwide Inc (Dubai) address 1404, City Tower-2, Sheikh Zayed Road Phone (+971-4) 331 0633/4111 Fax (+971-4) 331 0558 Description Construction of a new hotel comprising 300 rooms and serviced apartments, plus four food and beverage outlets, including a mixed-use development consisting of offices, residences and a shopping mall Period 2019 status New Tender tender categories Construction & Contracting, Hotels, Leisure & Entertainment tender Products Commercial Buildings, Hotel Construction, Mixed-use Developments, Residential Buildings, Retail Developments
my city center masDar mall Project – masDar city Budget $81,000,000 Project number WPR1485-U territory Abu Dhabi, United Arab Emirates client Majid Al-Futtaim Properties (Dubai) address Majid Al Futtaim
Tower 2, Deira City Centre Phone (+971-4) 294 9999 / 294 2444 Fax (+971-4) 294 2555 Website www. majidalfuttaimproperties.com Description Construction of a new shopping mall Period 2018 status New Tender tender categories Construction & Contracting, Leisure & Entertainment tender Products Retail Developments
Saudi Arabia sWissotel hotel Project – jeDDah Budget $150,000,000 Project number MPR1429-SA territory Jeddah 21521, Saudi Arabia client Sisban Holding
Company (Saudi Arabia) Phone (+966-12) 692 3444 email info@sisban.com Website www.sisban.com Description Construction of a fivestar hotel comprising 350 rooms Period 2019 status Current Project tender categories Construction & Contracting, Hotels tender Products Hotel Construction
Oman mazaya resiDence mixeDuse DeveloPment Project Budget $15,000,000 Project number WPR1452-O territory Muscat PC 118, Oman client Mazaya Real Estate Company LLC (Oman) address Villa 2, 1st Floor, Way No. 2114, Bldg No. 704/1, Near Oman Oil
Petrol Stn, Madinat Sultan Qaboos Phone (+968) 2460 5777 Fax (+968) 2460 5772 email info@mazayaoman.com Website www.mazayaoman.com Description Development of a mixed-use comprising 120 residential units, including one-, two- and three-bedroom apartments, 28 shops and landscaped areas Period 2019 status Current Project tender categories Leisure & Entertainment, Construction & Contracting tender Products Mixed-use Developments, Residential Buildings, Retail Developments sultan QaBoos mixeDuse Project – muscat Budget $75,000,000 Project number WPR1433-O
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
50 February 2017
Tenders
territory Oman client Alfardan Properties Company SOC (Qatar) address Alfardan Centre, Grand Hammad Street Phone (+974) 4440 8308/8488 email afpleasing@alfardan.com.qa Website www. alfardanproperties.com Description: Development of a mixed-use building comprising 3 basements, a ground floor, 8 floors plus penthouse offering over 150 luxurious apartments and more than 17,000sqm of premium office space, retail and hospitality services Period 2018 status New Tender tender categories Construction & Contracting, Leisure & Entertainment tender Products Commercial Buildings, Mixed-use Developments, Residential Buildings, Retail Developments
Qatar resiDential BuilDings Project Budget $170,000,000
Project number MPR1231-Q territory Doha, Qatar client Sharaka Holdings (Qatar) Phone (+974) 4444 2202 Fax (+974) 4435 1529 email info@sharakaholdings.com Website www.sharakaholdings.com Description Construction of (4 nos.) low-rise residential buildings, including all associated infrastructure Period 2019 status Current Project tender categories Construction & Contracting tender Products Residential Buildings
Bahrain marassi resiDences Project Budget $50,000,000 Project number WPR1440-B territory Manama, Bahrain client name Diyar Al Muharraq WLL (Bahrain) Phone (+973) 7733 3444 Fax (+973) 7733 3445 Website www.diyarhomes.bh Description Construction of two 11-storey residential towers Period 2018 status Current Project tender categories Construction & Contracting, Prestige Buildings tender Products Residential Buildings
Egypt north coast resort Project Project number MPR1524-E territory Egypt client Al Fanar Group (Saudi Arabia) address Al Nafl-Northern Ring Road, Between Exits 5 & 6, Near King Abdulaziz Centre for National Dialogue Phone (+966-11) 9200 06111 Fax (+966-11) 275 6699
Website www.alfanar.com Description Construction of a resort, including an 18-hole golf course as well as a number of residential buildings Budget $100,000,000 status Current Project tender categories Construction & Contracting, Hotels, Leisure & Entertainment tender Products Hotel Construction, Playgrounds & Associated Equipment, Residential Buildings
Jordan Photovoltaic solar Plant Project Project number WPR1357-J territory 11118 Amman, Jordan client National Electric Power Company – NEPCO (Jordan) address Zahran Street, 7th Circle Phone (+962-6) 581 8230 Fax (+962-6) 581 8336 Description Construction of a photovoltaic (PV) solar power plant with capacity of 200 megawatts (MW) status Current Project tender categories Power & Alternative Energy tender Products Photovoltaic Plants, Solar Energy
INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com
February 2016 51
Last Word
Investment in Education Steve Hextall, managing director of Aspect Project Management, breaks down the educational project market in Dubai while also discussing the recent launch of the firm’s Eco Villa prototype in Masdar City What is your take on the investment market for education projects?
We feel that there is still an appetite for investment in education in Dubai, mostly in the mid-market sector. The higher end schools are saturated, and with employment packages being adjusted and people consequently having to fund their own children’s education, there is a definite shift towards the more affordable schools. Many of these midmarket schools actually offer excellent facilities, and no matter how much is spent on the buildings and infrastructure, it’s really the delivery of the education programme that is the most important factor. Where is investor interest coming from, and what are some of the challenges?
There remains an interest from many overseas developers, particularly well established brands
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“No matter how much is spent on the buildings, it’s really the delivery of the education programme that is the most important factor” from the UK. Many, however, find that there are numerous barriers to entry and therefore require local agents or project managers such as Aspect to help them negotiate the regulations. There are many operators currently
fighting for the same few plots of land that are zoned for education. This is having a negative impact on returns as negotiations on land prices become difficult. The cost of construction in Dubai is also rising and will continue to do so as Expo 2020 starts to take effect on material costs. The best time to build is now. What can Aspect offer clients looking to invest in education?
Aspect’s team of directors have completed over 40 schools across the world. The majority of our senior management team were formerly part of the development team for the largest private education provider in the world and delivered schools throughout the GCC and East Africa. Our experience allows us to see things from the operator’s perspective and we can add value to the supply chain by offering
a holistic approach, providing a turnkey and sustainable solution to education providers. Outline how you work with clients and stakeholders on these projects.
Education timelines tend to be aggressive – obviously, missing the start of a new academic year is disastrous! Aspect works with developers on smart design and procurement routes that include early engagement of the contractor, off-site manufacture and modular construction techniques in order to meet these tight timeframes. We currently have schools for established operators targeted for opening in September 2018 and September 2019, and we remain on programme to achieve these dates. Aspect has recently launched the Eco Villa Prototype. Tell us a little more about that.
The Eco Villa is a new
concept prototype for sustainable villas that will generate enough solar energy to power the home all year round. The four-bedroom villa prototype includes an array of 87 high-performance solar panels that will generate approximately 40,000KWh per year, providing 100% renewable net zero energy. Careful orientation of the home, optimised natural lighting, a highperformance envelope as well as low-energy LED lighting, smart home technologies, OAIRO’s highly efficient HVAC delivery system and other design techniques dramatically reduce the home’s annual energy demand. The home uses up to 35% less water than standard villas, thanks to low-flush WCs, water-efficient faucets and showers, rainwater attenuation and other innovative measures.
Freehold plots in Dubai’s next suburban Master Development
nad al hammar gardens offers investors an opportunity to invest in 6 million square feet of prime plots at Nad Al Hammar. This suburban master development has been planned by wasl to offer mixed use residential and retail spaces with an emphasis on community features, green spaces and open areas. The development consists of 71 residential, 32 mixed-use, 12 showroom and 2 school plots. Last few residential, mixed-use, showroom and school plots are available at attractive rates with easy payment plan. So go ahead, make the best use of a great investment opportunity with even greater returns.
Invest in nad al hammar gardens from wasl
Mohammed bin Zayed Road connectivity | Plot sizes 12,600 – 226,700 sq. ft. | GFA range 23,400 – 351,300 sq. ft. | Planned development from wasl | Infrastructure maintenance by Dubai Municipality | Community features including mosques, schools & retail
Call 800wasl (9275) or email sales@wasl.ae