BE GLOBAL Infrastructure Magazine

ISSUE 1470

“the largest climate protection project in Vienna and also the city’s largest current infrastructure project.

THE TEAM RESEARCH

THE TEAM RESEARCH

THE TEAM RESEARCH

Wisner Gomes w.gomez@bus-ex.com

Wisner Gomes w.gomez@bus-ex.com

Abi Abagun abi@bus-ex.com

Eurides Lopes e.lopes@bus-ex.com

Eurides Lopes e.lopes@bus-ex.com

Eurides Lopes e.lopes@bus-ex.com

Maria Cobano m.cobano@bus-ex.com

Maria Cobano m.cobano@bus-ex.com

Fernando Ruiz f.ruiz@bus-ex.com

Joseph Philips j.philips@bus-ex.com

Joseph Philips j.philips@bus-ex.com

Tayo Akanbi Tayo@bus-ex.com

EDITORIAL

EDITORIAL

Joseph Philips j.philips@bus-ex.com

Editorial

Editorial Michael Minihan m.minihan@bus-ex.com

Michael Minihan m.minihan@bus-ex.com

EDITORIAL

CREATIVE

CREATIVE

Editorial Michael Minihan m.minihan@bus-ex.com

Jason Olayinka j.olayinka@bus-ex.com

Jason Olayinka j.olayinka@bus-ex.com

CREATIVE

Karen Teh k.teh@bus-ex.com

Jason Olayinka j.olayinka@bus-ex.com

SUBSCRIPTIONS & ENQUIRES

info@bus-ex.com

Karen Teh k.teh@bus-ex.com info@bus-ex.com

SUBSCRIPTIONS & ENQUIRES

SUBSCRIPTIONS & ENQUIRES

Karen Teh k.teh@bus-ex.com info@bus-ex.com

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The content of this magazine is copyright of Volume Media Ltd. Redistribution or reproduction of any content is prohibited.

The content of this magazine is copyright of Volume Media Ltd. Redistribution or reproduction of any content is prohibited.

The content of this magazine is copyright of Volume Media Ltd. Redistribution or reproduction of any content is prohibited.

© Copyright 2018 Volume Media Ltd.

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© Copyright 2018 Volume Media Ltd.

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2022

Cairo Metro National Authority for Tunnels (NAT) A Megaproject for a Megacity GTA Greater Tortue Ahmeyim LNG Project A New Horizon off the coasts of Senegal and Mauritania ZOHR

CJIA Cheddi Jagan

Airport Guyana’s Window to the World

Wiener

THE U2XU5 PUBLIC TRANSPORT

“the largest climate protection project in Vienna and

RESEARCH BY JOSEPH

TRANSPORT EXPANSION

and also the city’s largest current infrastructure project.

JOSEPH PHILLIPS

Wiener Linien: Vienna’s Transport Arrives at an Exciting New Juncture

The Austrian writer Karl Kraus once famously quipped: “The Streets of Vienna Are Paved with Culture, the Streets of Other Cities with Asphalt”. Indeed, few cities - if any - can boast of the city’s cultural legacy, which was shaped by the likes of Mozart, Liszt and Beethoven. Despite the city’s notable cultural heritage, it has steadfastly refused to become a museum of history, it has kept up with the times as it remains

one of Europe’s major capitals.

One of the undoubted reasons that the city is able to straddle modernism and history is its transport system that respects bothWiener Linien, previously administered as a subsidiary of the Vienna city government for over 100 years became an independent entity a little over 20 years ago. The system is now as much a part of everyday Viennese life as the conservatories or galleries that line the city. Business Excellence recently

In total, the company is responsible for some 180 underground, tram and bus lines. Our underground network extends to 83 kilometers

had the pleasure of speaking with its CEO, Alexandra Reinaglr, about Wiener Linien and in particular, it’s U2xU5 Expansion - a game changer for both the city and the company.

Background and Overview

Mr. Alexandra Reinagl began by giving us some insights into Wiener Linien, Vienna’s public transport operator: “In total, the company is responsible for some 180 underground, tram and bus lines. Our

underground network extends to 83 kilometers; our tram network comprises around 220 kilometers, which makes it the sixth-largest in the world, and our bus lines travel a network of 850 kilometers.”

This infrastructure makes Vienna one of the most well-equipped for public transport in Europe. It has more underground lines than significantly larger cities, such as Munich and Milan, for example. Its presence is warranted by its daily usage numbers, Mr.

Alexandra Reinagl points out: “On average, some 2.6 million passengers per day use the Wiener Linien network, for which our public transport vehicles cover a distance of 214,000 kilometers – roughly the same distance as orbiting the earth 5 times.”

Furthermore, until the Covid-19 pandemic, when lockdowns had a strong effect on public transport numbers, passenger numbers were still rising. He says: “In 2019, and for the fourth time in a row,

the project will add an additional 30,000 jobs to the Austrian economy in its first construction phase, and include an investment of approximately 6 billion euro.

the number of holders of a Wiener Linien annual pass (852,000) surpassed the number of registered vehicles in Vienna. In 2019, our 450 buses, 500 trams and 150 underground trains travelled a total of over 78 million kilometres.”

The U2xU5 Public Transport Expansion

The addition of the U2xU5 intersection to this already thriving network will be what Mr. Alexandra Reinagl terms: “the largest climate protection project in Vienna and also the city’s largest current infrastructure project.” He says: “It will

signifi cantly consolidate the heart of Vienna’s underground network. The positive impacts of this project, however, will be felt far beyond the city centre. New interchange options will take the strain off heavily used services. The entire public transport network will become even more efficient and fit for a city of two million.

Development of this vital addition to the network is already underway. Mr. Alexandra Reinagl says: “Construction for the 1st phase of construction fully started in 2021. The fi rst section of the U5 will start operating in 2026, the new section of the U2 will be in operation in 2028. The

U2xU5 intersection actually consists of two projects: The new U5 will operate on the existing U2 tracks between Karlsplatz and Rathaus, leading to the Frank Platz station in the first construction phase and then further to the west of the city. In total the U5 will comprise 9 Stations.”

Socio-Economic Impact

The U2xU5 expansion will have a significantly positive socio-economic impact. Bearing in mind that currently, more than 260,000 passengers ride its 1,000 vehicles at any one time, and the company employs some 8,700 people full-time

SOLUTIONS ARE OUR STRENGTH

H&P Railservice GmbH is based in Kemeten in Burgenland. The state-of-the-art office building with attached workshop and high-bay warehouse offers enough space to handle all projects properly. The neighboring grounds are also owned by H&P Railservice GmbH and there are no limits to future expansion.

across all of its operations, receiving some 20,000 new job applications annually. Mr. Alexandra Reinagl estimates that the project will add 30,000 additional 30,000 jobs to the Austrian economy in its fi rst construction phase, and include an investment of approximately 6 billion Euros.

He also lists some of the other socioeconomic benefits of the line: “1.3 billion passengers a year. This will sustainably ensure there is enough space on public transport in Vienna. The U2xU5 expansion project will provide space for more than 300 million additional passengers. And there are the savings of up to 75,000 tonnes of CO2 per year. In order to absorb the same amount of CO2, this would require immediately planting six million 30-year-old beech trees in Vienna.

The future of mobility in our globally networked world calls for seamless, sustainable, reliable, and secure mobility solutions. We’re leveraging the benefits of digitalization, engineering excellence, and our entrepreneurial spirit to master this challenge. Trusted by our partners, we’re pioneering transportation, moving people sustainably and seamlessly from the first mile to the last. And we always go the extra mile to help transport services all over the globe move beyond the expected.

siemens.com/mobility

And finally, we estimate that the U2xU5 intersection will cut private transport by 550 million kilometres per year.”

Key Partners and Suppliers

When it comes to key suppliers and partners, Mr. Alexandra Reinagl is keen to underline the local nature of the support involved. First of all, he name-checks the city of Vienna: “The city of Vienna is a key supporter of this project. The city helps coordinate construction, traffic rerouting close to construction sites etc. but also supports the project overall and funds half of the project (the other half is funded by the Austrian federal state).”

In terms of private partners, however, there is also a distinctly Austrian flavour to proceedings. Mr. Alexandra Reinagl tells us: “In total 59 companies are implementing the project together with the Wiener Linien, 56 of these are from Austria and 28 from Vienna. This means the project has a very positive regional economic impact.”

What the future holds for Wiener Linien

When speaking of future initiatives with Mr. Alexandra Reinagl, ‘sustainability’ is a word that comes up over and over, replacing the company’s priorities in this area. He tells us: “ Wiener Linien operates Vienna’s entire local public transport network, thereby contributing to the city’s excellent quality of life. The focus here is on striking a sustainable balance between social responsibility, commercial success

and environmental interests.”

He continues: “Conserving resources, reducing energy consumption, cutting CO2 emissions – the less energy we use for transport, the more energy we have to put into developing new ideas. After all, it is the combination of many small steps that makes a sustainable future possible. However, no matter what, there is no doubt in Wiener Linien’s mind that environmentally-friendly urban mobility is the key to future quality of life in the city – and this is on track.”

He finishes: “Wiener Linien is hard at work creating climate-friendly mobility options for the future: These combine the dense network of bus, tram and metro services with sharing vehicles to off er the best options for everyone’s specifi c mobility needs. No fewer than 13 WienMobil stations (for bike sharing) have already been set up; 15 more are coming in 2022. In 2025, there will be 100 WienMobil stations throughout Vienna, each offering various forms of mobility – from hire cars, scooters and mopeds to bike storage boxes and bike service stations.”

The focus here is on striking a sustainable balance between social responsibility, commercial success and environmental interests.

When Qatar won the bid to host the 22nd FIFA World Cup™ in 2010 ahead of bids from heavyweights like the United States, South Korea, Japan, and Australia, many wondered if this beautiful yet very small country would be able to take on the challenge of hosting the greatest sporting event on the planet and will Qatar have everything ready on time to welcome over 1.2 million visitors from over 200 countries to a nation with a population of about 1.6 million people at the time.

Armed with what many considered a blank check and a vision, the State of Qatar, and The Supreme Committee for Delivery & Legacy (SC) in charge of delivering the event headed by Hassan Al-Thawadi have delivered, and indeed delivered what has started as a truly magnificent event that has welcomed the world to the first FIFA World Cup post-pandemic and the first to be hosted in the Arab World.

"I have never seen a host country being prepared so far in advance. All the stadiums are finished. The infrastructures, in terms of hotels and roads, are being completed. Qatar is ready, FIFA is ready... the world is ready. And, after some difficult times with the pandemic, we must come together again", said Gianni Infantino, FIFA's president.

The build-up to this event has come with more than its fair share of praise and critics however this feature will focus on this event’s legacy in relation to the investment in infrastructure and the socio-economic impact of the event to the region.

Qatar National Vision 2030

Did you know?

One cannot tell the story of the infrastructure developed to host a successful FIFA World Cup without understanding the founding vision on which this event is built. In 2008 Qatar’s General Secretariat for Development Planning set presented the National Vision 2030 which aims for Qatar to become an advanced society capable of sustaining its development and providing a high standard of living for its people for generations to come. Qatar's National Vision defines the country's long-term goals and serves as a framework for developing national strategies and implementation plans.

The Qatari government built eight stadiums in total to receive the sports event. Six of these stadiums are entirely new; the other two were built and remodeled on top of old infrastructure. The figures available for these constructions estimate an investment of around 6.5 Billion USD.

compromising the virtues on which the nation was born. A long-term plan that ensures that every action is considered against its four pillars of economic, social, human, and environmental development. It is on this foundation that every direct and supporting infrastructure built for the FIFA World Cup Qatar 2022™ was developed.

Scoring Infrastructure Goals

The vision addresses 5 major challenging areas including

1. Modernisation and preservation of traditions

2. The needs of the current generation and of future generations

3. Managed growth and uncontrolled expansion

4. The size and quality of the expatriate labour force and the selected path of development

5. Economic growth, social development, and environmental management

This vision seeks balance, a longterm sustainable development without

Qatar is rumored to have invested between 200-300 billion USD in its realization of the event however only a small piece of this pie was actually spent on the world cup itself, whilst the majority is budgeted towards the 2030 National Vision program that started a couple of years before Qatar won the bid to host the world cup.

The Qatari government built eight stadiums in total to receive the sports event. Six of these stadiums are entirely new; the other two were built and remodeled on top of old infrastructure. The figures available for these constructions estimate an investment of around 6.5 Billion USD.

These stadiums include Al Bayt Stadium (Al Khor Stadium) which seats 68,895 fans, Khalifa International Stadium (45,000 Capacity), Al Thumama Stadium, Ahmed Bin Ali Stadium (45,000 Capacity), Lusail Stadium (88,000 Capacity), and Stadium

974 has a capacity of 44,000 and it is named after the country’s dial code and the number of containers used to build it. The others are Education City Stadium (44,667 Capacity) and Al Janoub Stadium

(44,325 Capacity)

After the event, half of the stadium will turn into a five-star hotel, stadium 974 would be dismantled and shipped to another country and whilst others will have their capacity reduced.

Supporting Infrastructure

Most of the billions spent by the Qatari government went to non-sporting infrastructure that will help manage the challenge of the expected influx of foreign tourists coming to witness the event. According to official government estimates, the country expects to receive more than 1.5 million visitors, which is equal to 40% of its total population. These projects serve future visitors and the growing population of people who call Qatar home.

“Our goal was to build venues that local communities would use. Before we broke ground, we consulted communities to ensure their needs were implemented at the design phase,” said Engineer Ghanim Al Kuwari, deputy director general, of technical services, Supreme Committee for Delivery & Legacy.

This first project to be experienced by visitors is the Hamad International Airport (HIA); a new world-class aviation hub built to accommodate 53 Million passengers annually and designed to resemble the gentle waves of the gulf sea. It is currently the country's central air station, designed to accommodate 63 contact gates, 16 lounges, 30 cafés, and 70 retail stores and it also serves as the base of operations for Qatar Airways

The second is the Doha Metro which is without a doubt one of the most advanced rail transit systems in the world

and it is expected to carry 500,000 daily passengers during the peaks of the World Cup. The metro rail project consists of a 76-kilometer network with three lines and 37 stations, and it is part of a larger railway network that includes five modern and flexible railway systems interconnected across the Persian Gulf.

Ashghal, the body in charge of governing the design, construction, delivery, and maintenance of all expressways and major roads in Qatar, has invested billions of dollars in the modernization and development of Doha Expressway System. These projects include the completed Lusail Expressway, Dukhan Highway Central, Alkhor Road Project, Salwa Road Phase 2 and other ongoing projects including the New Orbital Highway, Dukhan Highway East, Sabah Al Ahmad Corridor, Duhail Interchange Upgrade Project just to mention a few.

Furthermore, the Finnish architectural firm Sigge Architect, together with the real

estate company Admares, a leader in the construction of unconventional buildings, began the development of 16 fl oating hotels on Qetaifan Island North. The latter is close to the Lusail International Stadium, where the opening and final games will be held.

"The World Cup serves as a motor to boost and accelerate many initiatives the government has already embraced, already planned for, whether in urban development or economic diversification," Al Thawadi explains.

Qatar's telecommunications infrastructure has also been upgraded. The responsible ministry has collaborated with telecommunications service providers and contractors to develop a national plan that will aid the country's efforts in meeting its objectives and providing the best services to participants and fans. Microlink, a leading system integrator, has been tasked with improving communication and the quality of existing systems by offering telecommunication solutions in the area of 5G Smart Poles, Inbuilding Solutions, as well as Fixed and Mobile Base Stations.

Human Infrastructure

In a country with one of the highest per capita in the world and where only 14% of it inhabitance is native Qatari, Qatar has been home to a very diverse population

of expatriates from across the world. Professionals from all works of life have successfully lived and thrived in the oil and gas-rich state.

And since construction began in 2010 for the World Cup there has been enormous growth in other types of migrant workers who have come to work predominantly in the construction sector and more recently in the tourism sector in hotel management, luxury catering, facility management, and preparing for the World Cup.

"The World Cup serves as a motor to boost and accelerate many initiatives the government has already embraced, already planned for, whether in urban development or economic diversification," Al Thawadi explains.

Qatar has faced a wave of criticism around human rights and how its estimated 2.1 million migrant labour workers are treated during the construction of the World Cup infrastructure. The Qatari government and its partners have since implemented policies that are ensuring improved health and safety standards within the country’s building codes, abolishment of the Kafala system, better living conditions, and improved compensation for the migrant workers as well.

The locals have also not been left out either, the government has designed a Qatarization initiative to increase the number of Qatari citizens employed in the public and private sectors. And, with the World Cup and its accompanying projects, there has been a significant acceleration in this program aimed at attracting,

developing, motivating, and retaining Qataris across the board.

Economic Impact

Qatar is a very wealthy country that earns the majority of its income from its massive oil and gas assets. As part of its Vision 2030, the goal is to future-proof its economy by divesting and becoming more knowledge-based. This begins with developing the infrastructure that serves as the foundation, growth in the construction sector, and then tapping into the fastgrowing Middle East tourism sector. This is already visible in the reduction of its oil and gas assets' contribution to GDP from 53% in 2010 to 39% in 2020.

The Middle East travel and tourism sector for example is expected to generate

$246 billion in 2022 and it is projected to at least double that amount by 2030. Tourism has become a strategic axis for the Gulf Cooperation Council (CCG) countries, especially considering the success of Dubai in this sector. This is also why the region has quickly become the world's fastest-growing sports tourism destination. According to the World Trade Organization, the sector alone is worth an estimated $600 billion and has become home to a set of very robust football leagues, horse racing, Formula One, the UFC, big-ticket boxing, and now the most prestigious sporting event in the world of sport the FIFA World cup hosted in the beautiful state of Qatar.

The investment into tourism infrastructure in Qatar has not only come from local investors and the government, there has also been a steady and growing fl ow of foreign direct investment into Qatar, thanks to a stable currency attached to the U.S. dollar, the country's political stability, high-level infrastructure, and competitive corporate tax rates (10%).

"We anticipate that the contribution to the economy would be around $20 billion," said Hassan Al Thawadi. Al Thawadi is the Secretary General of the Supreme Committee for Delivery & Legacy, responsible for building the infrastructure behind the 2022 World Cup. This figure represented 11% of the country's gross domestic product in 2019. Regarding new jobs in Qatar, there was a 7 percent increase in the three months before September 30, compared with the previous quarter.

Qatar's investment in football goes beyond its activities over the last 12 years in the preparation for the World Cup. Qatar Sports Investments (QSI), which owns Paris Saint Germain (PSG) football

club, recently acquired 21% of the shares of Sporting Braga, currently one of Portugal's top 4. The company seeks to become a multi-club group and has also shown in England's Premier League. The purchase of clubs in Europe from Middle Eastern countries could exceed 1,500 million dollars.

"The last 12 years have been very intense for economic development, stimulated and accelerated by the World Cup. Also, by developing this mega-master plan since 2008, we are contemplating the benefits of it in the next 20 years", declares Nasser Al-Kather, Qatar World Cup CEO. All is ready for what promises to be a historic event in the region, which will undoubtedly give a lucrative boost to the Qatari economy for many years to come.

Environmental impact

Qatar 2022 will be the most compact FIFA World Cup ever, with all the stadiums and various FIFA World Cup venues close to each other. This will significantly reduce the carbon emissions caused by transporting the teams, officials, and fans during the tournament.

Ticket holders and others with the Qatar 2022 FIFA World Cup Fan-ID will be able to travel free of charge on all public transport in Qatar during the tournament. The latter will also reduce the reliance on individual travel and the overall carbon emissions of the championship.

Now, let's mention some additional data regarding the matter and the importance of taking measures. Did you know that a stadium in its maximum capacity can consume up to 8 million kilowatts of electricity, equal to the energy use of 2,500 families? In addition, each spectator in a game can generate between 1.82 and 15.01 pounds of garbage, totaling nearly 750 million tons of waste per game. To ease the impact of these figures, several important initiatives, including renewable energy solutions, reduced water consumption at operational stadiums and sustainable landscaping have been implemented.

By 2013, FIFA had proposed the Green Goals project to create and organize green sports events. The International Olympic Committee, on the other hand, also set

the goal of aligning sporting events with the UN's sustainable development goals. Currently, one of the essential criteria to be able to host a sporting event is sustainability, thus seeking to have the least possible environmental impact.

Partners and Sponsors

Football or Soccer as it is called in North America is unarguably the most popular sport on the planet with roughly 3.5 billion fans worldwide and 250 million professional players at different levels across 200 countries around the world. The last World Cup which was hosted by Russia was watched by a record 3.5 Billion people across the world and the Qatar 2022 is projected by FIFA to be watched by 5 Billion people across the world, to this end you can understand why global, regional and local brands are lining up to align their brands with this event.

With this level of attention, the World Cup is not just a major source of potential

Qatar 2022 will be the most compact FIFA World Cup ever, with all the stadiums and various FIFA World Cup venues close to each other

economic development for the host country but also for FIFA. The entity projects revenues of 7.5 billion dollars from this event alone; this is record-breaking in contrast to the 2018 World Cup in Russia which had total revenue of $5.2 billion.

The companies behind the curtain prepared thoroughly for the influential event, whether through sponsorships (World Cup 2022 Partners and FIFA Partners), broadcasting rights, sales of sportswear, or ticket office. Some renowned sponsors are McDonald's, Budweiser, Adidas, CocaCola, Visa, Wanda Group, Hyundai, Kia, and the recently announced Nubank.

Other big-ticket brands include Qatar Airways, QatarEnergy, Crypto.com, Hisense, Vivo, Mengniu, Byju’s, and in most countries local brands have tapped into the spirit of the season with Brand alignment that allows them to use the name of the event to promote their products.

There is no certainty about how much the contribution of companies and sports brands will be in Qatar. However, their investment in preparations for the event proves that some see Qatar as a long-term partner.

The Legacy

The legacy of this event is yet to be written, however, the organizers and the State of Qatar are hoping for a positive one on and off the field of play. This journey which started years before Qatar won the bid to host the world should be remembered not just for hosting the greatest footballing event that welcomed all works of life, united the Middle East, and featured global superstars like Mbape, Ronaldo, and Messi, but also for showcasing Qatar's rich culture, sustainable infrastructure, expanding labor reforms, and the business opportunities available in the State of Qatar.

HE Hassan al-Thawadi puts it best in a recent interview stating “From day one, a legacy was at the forefront of our plans. Right from the bidding stage, every single project, every single penny spent in terms of infrastructure and other things was designed with legacy in mind,”

On the 18th of December, a new World Champion is likely to be crowned, and as the curtain falls on the world's greatest event and the world returns home, Qatar's historic journey toward achieving its vision of sustainable infrastructure development will continue.

METRO

JOSEPH PHILIPS

for a Megacity

for Tunnels (NAT)

Despite its 4,000-year-old history, Egypt’s capital Cairo is a city that refuses to spend too long looking in the rearview mirror. With its greater metropolitan now home to 20 million people - making Cairo one of the world’s megacities - the city and its people continue to look to the future. A good example of this is the city’s metro system, Africa’s first urban railway, the first of three full-fledged metro systems built in Africa, as well as the first in the Arab world.

Now celebrating 35 years, much like the city it serves, it continues to reach and strive for new milestones. For example, just this year, the metro system saw its first female drivers - a massive step forward and perhaps a catalyst for a change of more traditional mindsets in the country. The metro is owned and managed by National Authority for Tunnels (Egyptian state), whose other projects include the light rail system that links Cairo to the Administrative

In this article, Business Excellence takes a closer look at Cairo Metro, and the impact that this metro system has on one of the world’s megacities.

Africa’s

first urban railway, the first of three full-fledged metro systems built in Africa, as well as the first in the Arab world

Moving beyond

Transport solutions driven by a passion for mobility

The future of mobility in our globally networked world calls for seamless, sustainable, reliable, and secure mobility solutions. We’re leveraging the benefits of digitalization, engineering excellence, and our entrepreneurial spirit to master this challenge. Trusted by our partners, we’re pioneering transportation, moving people sustainably and seamlessly from the first mile to the last. And we always go the extra mile to help transport services all over the globe move beyond the expected.

History and Scope

The origins of the Cairo metro go back 40 years to 1982 when the French government extended a $500 million loan to the Egyptian government to build a metro in its capital city. To this day, line one of the metro is still referred to by the city’s locals as ‘the French line.’ Five years later, in 1987, the metro opened to the public, and its six stations and 10-mile-long tunnel that connected them began relieving one of the world’s largest traffic jams at that time.

In 1999, the new El Marg station was added, bringing the total number of stations to 35 and the length of the track to 43 kilometers - a growth of around 150% in track length in less than 10 years. April 1999 also saw the completion of the first section of line 2, which importantly connected the city’s university district to the city center, adding a further 14.5 kilometers. By 2007, this had been extended to 21.6 kilometers.

The success of the first two lines encouraged the government to invest money in more transport infrastructure, and a further line for the city was envisaged. Construction on line 3 began in 2006, and the first phase opened six years later in 2012 and added five underground stations to the system. Phase 2, delivered in 2014 added 7.2 kilometers of track and added 5 more stations. As of November 2022, the third and final phase of line 3 is expected for delivery in April 2023.

Development of Lines 3 and 4

Line 3 of the Cairo Metro connects Kit Kai in west-central Cairo with Al Salam bus stop at a station named Adly Mansour metro station. It will eventually extend from the northwest of the Greater Cairo area at Imbaba to the northeast serving Cairo International Airport. The total length of the line will be approximately 30.6 km of which 28.1 km is an underground section

Line 3 received 600 million Euro funding for the 3 phases, A, B, and C from the European Investment Bank (EIB) and is being constructed by world-renowned construction firm

VINCI Construction, in partnership with the Arab Contractors, Orascom

Construction, and Bouygues Construction

and the rest of the line about 2.5 km shall be on grade and will be implemented in four phases

The Cairo Metro Line Phase 3 is 17.7km and includes 15 stations. The first part of the station starts from Attaba to Kitkat and covers 4km in length and was completed in December 2021. The second part of the station from Kitkat to Rod El Farag Axis with a length of 6.6km, was completed in June 2022. The third part – still under construction - will be from Kitkat to Cairo University with a length of 7.1km and will be inaugurated in April 2023.

Line 3 received 600 million Euro funding for the 3 phases, A, B, and C from the European Investment Bank (EIB) and is being constructed by world-renowned construction firm VINCI Construction, in partnership with the Arab Contractors,

Orascom Construction, and Bouygues Construction. It was awarded the world’s best transport railway project award in 2022, by US Engineering News-Record (ENR).

In conjunction with Line 3, Line 4 is being implemented in two phases. Phase 1 will run for 19 kilometers and include 16 stops. The second phase will add a further 25 kilometers and 22 further stations, bringing the total number of stations to 38 and a total track length of 42 kilometers. The project is financed by the Japanese International Corporation Agency (JICA).

Socioeconomic Contribution

From the outset, there have been 4 key objectives of the metro: To increase access to public transport, to provide reliable and efficient transportation for more than 1.5 million people, to create job opportunities during construction and operations –including job opportunities for women – and connecting socially disadvantaged districts with the city center and CBD. On all four fronts, it is already making tangible progress.

The socioeconomic contribution of the metro cannot be overstated. Since its arrival on the scene in 1987, it has made a significant contribution to economic prosperity. In the first 20 years of the Metro’s operation, Egypt’s GDP grew nearly 4-fold. Clearly, this cannot all be attributed to the metro; however, it forms part of a larger economic vision that is leading to increased prosperity. Its kilometers of track has grown by about 8 times the capital city’s population since its foundation.

Cairo Metro now carries more than 3.5 million passengers per day, and the

number continues to trend upward. This significantly improves mobility and reduces traffic congestion; will contribute to more sustainable and green economic growth as well as urban development in the country. Furthermore, across all divisions, when line 4 is finished, the metro will hire close to 10,000 employees, making it one of the biggest employers in Egypt.

Cairo Metro now carries more than 3.5 million passengers per day, and the number continues to trend upward

Other benefits of the metro include a high level of socioeconomic profitability (measured at more than 17% for Line 3 alone), which provides millions of people with efficient, cost-effective, and environmentally friendly modes of transportation. The metro also helps to reduce CO2 emissions in the city (line 3 alone will save up to 273,500 tonnes of CO2 per year), which leads to better health for the city and its residents. Finally, the

on-going projects will generate 12,000 jobs during construction and a few thousand more jobs once finished and operations begin.

Supply Chain Partners

19 French companies were responsible for bringing line 1 of the Cairo metro to reality in 1987, but these days, the supply chain partners come from a far more diversified

The metro also helps to reduce CO2 emissions in the city (line 3 alone will save up to 273,500 tonnes of CO2 per year), which leads to better health for the city and its residents.

set of backgrounds. For example, Hyundai Rotem - a division of the South Korean giant of the same name - is delivering 23 metro trains to the city. As part of their contract, at least 30% of the production needs to have been Egypt-based.

Orascom Construction has been a constant reliable partner for the metro system for over two decades now. Another long-time partner of the system, Alstom, supplied, tested, and commissioned line 3’s signaling, centralized control, and driving modes. Last but not least, French construction firm Thales, in collaboration with Orascom and Colas Rail, is responsible for the construction of line 4.

Other partners include the Dextra Group for its reinforcement of the diaphragm

walls, ReadyMix for its high-quality concrete which was used in the project, and International Security & Safety Systems Co., which is the first Egyptian factory to supply fire systems to metro projects in Egypt. ACTEL communications and RATP Dev Middle East has been heading up the metro’s technology, communications, and training of the local team to ensure it exceeds best-in-class for metro system personnel.

Finally, on the construction side, VINCI is the main contractor but is joined by a slew of subcontractors that include the Egyptian British Company, the Arab Contractors, and VSL Middle East. CAF has been involved in the restoration of older carriages, while Concord Engineering and Contracting (Herrenknecht AG) has been the on-site engineering consultant for Line 4’s often complex engineering requirements.

Outlook

“Cairo needed to modernize,” said the chief engineer responsible for line 1 on the day of its opening in 1987. Little did he know how the metro - then of just a few kilometers of track length - would modernize the city. As a measure of the changed expectations in Cairo over the past 35 years, an Egyptian Official recently said that the city’s tourist hub would be: "one of the new seven wonders of the world," when finished.

Data released by the Egyptian government in 2022 shows that Egypt is home to more than 2.5 million vehicles. Although can still be a traffic-heavy city, one wonders how much more it would be the case if the metro wasn’t already accounting for 3.5 million journeys every day of the year. Ultimately, it has given this ancient city a new lease of life, which it continues to build on. A megaproject fitting for a megacity

CAIRO METRO

GREATER TORTUE AHMEYIM

A New Horizon off the coasts

RESEARCH BY JOSEPH

GTA

AHMEYIM LNG PROJECT

coasts of Senegal and Mauritania

JOSEPH PHILIPS

Liquefi ed natural gas (LNG) has been universally recognized as a stepping stone in the energy transition. Thanks to its 25% lower carbon emissions than traditional fuels, LNG finds are now usually treated with more fanfare than the discovery of oil wells. It is wholly understandable in this context then, the enthusiasm that surrounds the Greater Tortue Ahmeyim (GTA) LNG project off the coast of Senegal and Mauritania. Between 2014 and 2017, an estimated 15 trillion cubic feet of gas were found in the waters of the two West African nations, a find large enough to justifiably call the region a ‘future hub of world LNG production.’ As the first phase of the project nears completion, Business Excellence decided to provide an overview of a project with the potential to transform the long-term fortunes of the region and the citizens of Senegal and Mauritania.

Overview of the GTA Project

The statistics that define the GTA project confirm that it has the potential to transform West Africa into a new global energy hub. The 15 trillion cubic feet of gas found means that production can continue for at least 30 years. One of the project’s sponsors, bp, believes that extensions of the project could locate up to 100 trillion cubic feet of gas - pushing the region into the top 15 LNG fields in the world. Located around 115 kilometres from the

coast of Senegal and Mauritania, phase one of GTA will produce around 2.5 million tonnes of gas per year. The project incorporates a large-bore gas subsea production system (SPS), which is the deepest subsea system installed by bp to date. The investment of bp (60% stake) and its partner on the project, Kosmos (30% stake), in phase one of the project is estimated to have been in the region of $3.6 billion. The national oil companies

The statistics that define the GTA project confirm that it has the potential to transform West Africa into a new global energy hub

Petrosen and SMHPM complete the partnership with a combined 10% stake.

Key Facts

• GTA is a gas project on the maritime border between Mauritania and Senegal.

• The field is located 120 kms offshore, in a water depth of 2850m, the deepest subsea infrastructure in Africa.

• Phase 1 is the first step in establishing the basin as a world-class gas province and major LNG Hub.

• It is set to produce around 2.5 million tonnes of LNG per year.

• Phase 1 is designed for over 20 years of production, with the potential to extend.

• It is granted the status of National Project of Strategic Importance by the Presidents of Mauritania and Senegal.

• The subsea network includes 310km of linepipe, 91km of controls umbilicals, 80km of fibre optic cables and over 100 fabricated structures connecting the wells to the FPSO and then to the Hub.

Milestones Achieved

In February 2022, a major milestone was reached on the road to delivering the first phase of GTA: a breakwater comprised of 21 concrete caissons - totaling 340,000 tonnes - was completed. Each of the caissons weighs more than 16,200 tonnes,

with a length of 55 meters, a width of 28 metres, and 28 metres in height. The breakwater is crucial as its will protect the project’s key infrastructure - the floating LNG vessel, its utilities, and accommodation - from the Atlantic.

The completion of the breakwater at GTA also frees up the team behind construction to start pipe rack outfitting and equipment installation and testing. As of May 2022, the project is approximately 75% complete, with mooring piles for the floating production storage and offloading already installed off shore and the vessel itself undergoing dry tests in the shipyard. The hub terminal is also on schedule, and drilling on top holes has been completed on two of the four initial wells. In short, everything is on track for the first gas in the latter half of 2023.

Overcoming COVID-19

The fact that the project is being delivered over a year after the initially planned deadline is a consequence of Covid-19, although perhaps in a more roundabout fashion than you might expect. In mid2021, the project’s FPSO suffered a 3-month delay owing to labour shortages at the COSCO yard in China, where it was being constructed. When work resumed, further delays - albeit ones that the project sponsors were happy to digest - occurred as bp and Kosmos insisted on the highest standards of safety and sanitation possible.

Broad Impact

The field is located 120 kms offshore, in a water depth of 2850m, the deepest subsea infrastructure in Africa.

Our company AMC Travaux, is specialized in providing outsourcing services and local content in the fields of Oil & Gas, energy, construction, mining, and infrastructure. We have highly contributed to the development of the GTA Project

By 2026, Mauritania will have a total production capacity of 10 million tons of LNG annually GTA is expecte d to produce 2.5 million tons of liquefied gas annually after the first phase. Moreover, The follow-up BirAllah project is expected to contribute to doubling Mauritania's gas reserves six times, given the presence of more than 50 trillion cubic feet in this project. With these discoveries Mauritania will be able to partially compensate the dependence of European countries on Russian gas that is affec ted by the Russia-Ukraine war.

AMC Travaux has benefited from working with the GTA project and we are focusing on training our employees working in the field of Oil & Gas to perform well with all due respect to HSE standards

With the support of Oil & Gas project stakeholders in Mauritania, we are willing to continue to develop the skills of our employees and encourage them to face upcoming significan t projects in Mauritania such as BirAllah Gas project and hydrogen projects within the next decades.

Beyond our motivation to make profit and to contribute to the development of local content, we believe that we are responsible as human beings to preserve our planet for future generations by contributing to the big shift of energy resources in order to help the world meet its commitment within the COP2 1 agreement signed in Paris.

What scale of impact does this promise? Immense. It’s also worthwhile to emphasize that bp and Kosmos bring significant combined experienced in maximizing the impact of projects like GTA in region which they domiciled. Before the project has even started, it has initiated a series of community engagement program in both Mauritania and Senegal. Consultation with community leaders regarding how the project will and can impact the communities from a socio-economic and environmental perspective has led to programmes including that in St. Louis, Senegal, where local women received training in fish processing and a “mobile education” programme that has contributed over 1300 equipment and benefited over 8000 students.

Did you know?

It is granted the status of National Project of Strategic Importance by the Presidents of Mauritania and Senegal

giving 49 participants an opportunity to be trained locally and internationally (Forth Valley College in Glasgow, Scotland), developed, and prepared to work safely and compliantly on GTA phase-1 operations over the course of four years. Another 8 masters’ students have also been sponsored by bp to be trained in Malaysia (INSTEP and PETRONAS) as well. These programmes are particularly very important as it helps builds the long term capability required to develop the energy industry in Mauritania and Senegal. A community health program has also been founded.

bp has also set up a national technician apprentice programme which is currently

Local content engagement is another important element of this project. Though bp and its parties come with international world class experience the GTA team will be engaging well established providers in the both countries and the region as well. The project supplier portal was developed to encourage local content participation

Over the course of the project life, it is conservatively estimated that GTA can deliver $80-$90 billion in revenues to Senegal and Mauritania. To put this figure in context, in 2020, the combined GDP of both countries was somewhere in the region of $31 billion. So $90 billion over 30 years would mean a boost of around 10% to each of the economies and their populations. To reiterate, these figures are conservative.

What scale of impact does this promise? Immense. It’s also worthwhile to emphasize that bp and Kosmos bring signifi cant combined experience in maximizing the impact of projects like GTA in region which they domiciled. Before the project has even started, it has initiated a series of community engagement programs in both Mauritania and Senegal. Consultation with community leaders regarding how

the project will and can impact the communities from a socio-economic and environmental perspective has led to programmes including that in St. Louis, Senegal, where local women received training in fish processing and a “mobile education” programme that has contributed over 1300 equipment and benefited over 8000 students.

bp has also set up a national technician apprentice programme which is currently giving 49 participants an opportunity to be trained locally and internationally (Forth Valley College in Glasgow, Scotland), developed, and prepared to work safely and compliantly on GTA phase-1 operations over the course of four years. Another 8 masters’ students have also been sponsored by bp to be trained in Malaysia (INSTEP and PETRONAS) as well. These programmes are particularly

As of May 2022, the project is approximately 75% complete

very important as it helps builds the longterm capability required to develop the energy industry in Mauritania and Senegal. A community health program has also been founded.

their interest directly with bp, learn to participate, and enhance competitiveness; and allows bp’s global procurement practitioners to use it as a source for potential suppliers.

On the environmental side, GTA also brings clean energy to Senegal and Mauritania. As of 2022, only around 60% of their combined populations have access to electricity, and less still clean access to fuels for cooking. The GTA project will not only give them a level of energy independence that they haven’t known before but also give both countries the revenues from millions of tonnes of gas exports every year, fuelling the west of

Africa with a much cleaner fuel than many had been using till now.

Suppliers and Partners

When an O&G major like bp and a highly respected partner firm like Kosmos seek out partners to work on a project like GTA, there are generally no shortage of takers. Such was the case here. The team was able to call in expertise from the likes of Petrofac, who have developed operational procedures for GTA 1, Technip Energies, a newly-formed French company that delivered the project’s FPSLO, and Havfram, a Norwegian sub-contractor of Technip’s that provided pre-installation and hook up of the subsea mooring system for the FPSO.,

The huge task of constructing the 21 mega caissons was delegated to Eiffage Génie Civil, a French engineering team that built the caissons on two Dakar sites, bringing in more than 130,000 m3 of concrete and

30,000 tonnes of steel. Its subcontractor, AMC Travaux, ensured a constant supply of rocks from a Senegalese quarry over two years, which were then used in the project’s breakwater. The subsequent construction of the jetty was delivered by the Fugro.

The fact that there were so many moving parts - and as mentioned, some delayed owing to Covid-19 - demanded plenty of multinational collaboration. Other participants who merit mention in this category include Eurogrues Afrique, Amaranth - which delivered multiple orders of centrifugal pumps for the FPSO, Nexans, and Keppel Offshore and Marine. Last but certainly not least, AMOG is supporting bp on the project’s rise verification system.

Local and regional suppliers and subcontractors were also engaged across board both countries through the project supplier portal.

The Future

The world is a different place in 2022 to the one that the team behind GTA faced when this project first got moving in 2016. Post-covid, new issues seemingly appear on an ongoing basis: war and rising inflation among them. The positive news for this corner of Africa is that LNG is a fuel with a guaranteed long-term future, and that means revenue streams and energy security for both countries for decades to come. For the world, GTA represents a new energy hub. For Senegal and Mauritania, it represents a new horizon.

ZOHR GAS

Turning Point for Egyptian

RESEARCH BY JOSEPH

ZOHR

ZOHR GAS FIELD

Egyptian Prosperity

Given the enormous mineral resources in the Middle East in countries such as Saudi Arabia and the UAE, it may surprise some to learn that the first major hydrocarbon producer in the region was Egypt. The country’s oil production goes as far back as the second half of the 19th century, at a time when it was both energy self-sufficient and an exporter of hydrocarbons. Even today, oil and gas production is the single largest economic activity in the country.

Italian energy giant ENI has a presence in the country for over 60 years. Its work with the government of that time has since provided a blueprint for several oil producing countries on how to work with foreign companies. Its 2015 discovery of the Zohr field - the largest ever gas discovery in the Mediterranean - was a boon for the country and its people. Business Excellence decided to take a closer look a find that points to a far more prosperous future for Egypt.

Overview

ENI’s Zohr finding in 2015 is remarkable not simply because of the scale of the fi nding, but because of its historical context. In March of that year, the country’s government announced that it would no longer be energy self-suffi cient owing to a booming population and dwindling supplies. For a country that prides itself on its oil and gas industry’s heritage, it was a hit: The benchmark stock index, the

Zohr field - the largest ever gas discovery in the Mediterranean

EGX30 fell by around 30%, as investors got the news.

Just six months later, ENI had discovered Zohr – roughly translated to be “A Muslim prayer offered to God at the noon hour of the morning”. ENI capitalising in on a bet that saw it raise $70 million to fund the exploration in a territory that Royal Dutch Shell had previously drilled for 10 years without success. Little wonder that ENI’s CEO at the time, Claudio Descalzi, referred to the find as “a very emotional moment.”

Prime Minister Mostafa Madbouly also shared similar emotions stating “Before operating this field, we were importing natural gas. The Zohr field enabled Egypt to meet its domestic needs and achieve

an export surplus” In addition to bringing Egypt back to energy self-sufficiency, the success of the Zohr fields has reignited global oil industry interest in the country.

The Zohr field itself is spread over approximately 100km2 within the offshore Shorouk Block, nearly 200km from Port Said, Egypt. The water depth in the field area is 1,500 metres and its reservoir extends for a further 4,000 metres below the sea bed. In total, Zohr is estimated to contain around 30 trillion cubic feet (Tcf) of recoverable gas reserves, providing enough gas for Egypt for over 20 years.

Egypt for over 20 years.

In terms of the on-site infrastructure, the

“Before operating this field, we were importing natural gas. The Zohr field enabled Egypt to meet its domestic needs and achieve an export surplus”

TECHNOLOGY DRIVEN EPC CONTRACTOR

Our roots are in our technological background open to innovation and digitalization. As part of Maire Tecnimont Group, we work to provide unique expertise using our proprietary technologies and applications to ensure sustainable and environmentally friendly solutions for energy transition.

A LEADING EXPERTISE TO IMPLEMENT OIL REFINING PROJECTS AND TO UPGRADE EXISTING REFINERIES TOWARDS MINIMIZATION OF CO2 FOOTPRINT

WELL RECOGNIZED LEADERSHIP IN LICENSING HYDROGEN, SULPHUR AND TAIL GAS TREATMENT TECHNOLOGY

MORE THAN 500 PROJECTS COMPLETED SINCE 1971

KT, a company of Maire Tecnimont Group, is an international EPC Contractor in the Oil&Gas and Refining Industry, as well as one of the most well-known Licensors of Sulfur Recovery Units (SRU) and Hydrogen Production Units (HPU). Our approach to the market is based on these distinguishing characteristics: flexibility and resilience, client-oriented view, design-to-cost approach, high priority of quality and safety, focus on environmentally friendly solutions. Environmental protection is in our DNA, since the SRU’s intrinsic function is to mitigate the impacts deriving from the treatment of hydrocarbons. Today, we continue in the same line, supporting our sister company NextChem in the implementation of their large basket of green technologies for the energy transition.

Our contribution to the success of the Zohr Project goes in the direction of the gas-to-power strategy of African countries such as Egypt, where gas is an enabler of the energy transition. Our collaboration with ENI in this milestone project dates back to 2015, when KT was

selected by Petrobel (a JV between ENI and EGPC) to supply the SRU for the Phase I of the Zohr Field development.

It was a super-fast-track project: fully modularized 4xClaus and 2xTGT Units with approx. 50 TPD capacity, 50 modules, 600 tons of piping, and 1,200 tons of steel all needed to be delivered in 12 months.

We d ecide d to take the challenge, relying upon our significant experience on the ground and involving our strategic vendors and subcontractors to set up an efficient Project Execution Plan.

The result was a great success and KT was selected again by Petrobel to supply 5 modularized MEG Recovery Units (MRU) in 2021 for the subsequent development phases.

The key success factors were two: setting a clear and common goal, i.e. the mandatory completion on time, and establishing a mutually trusting environment between Client and Contractor. We regard this as a model to be replicated in all of our current and future projects.

fi eld currently has 13 production wells with a further 200 being planned over its production life. Production is controlled by a shallow water platform located approximately 60 kilometres from the coast. The subsea installations at the field include manifolds, subsea and topside control systems, a pressure protection system, and tie-in systems. Its gas is transported through two 216km-long and 30in-diameter pipelines connecting to an onshore gas treatment facility at El-Gamil.

Technology

For ENI, the Zohr discovery was an apt reward for the near $450 million investments that it had made in state-ofthe-art exploration technology, including constructing a data centre in Milan that interpreted data generated in the field. This was the culmination of a shift at ENI that brought together a CEO willing to take calculated risks and back his exploration team, leading geologists, and a strong

strategy that emphasized getting oil and gas to the market quickly. It paid off. The field was already producing by December 2017 - quite incredible given that the final investment decision (FID) was made less than two years before. This marked a new record for this type of deposit and ultimately leading to Zohr winning the prestigious IPTC’s Excellence in Project Integration award. The project success could also be measured with output; thanks to Zohr, Egypt announced record liquified gas exports in 2021.

Said, Egypt

Diversifying Management

The attractiveness of the project inevitably attracted interest from some of the biggest players in the oil and gas communityeager to participate in the region’s most exciting gas project in decades. While the initial running on the project was all ENI, the consortium of investors behind the project now includes the likes of BP, Rosneft, and Mubadala Petroleum, all of which came on board in 2017, underlining

The Zohr field itself is spread over approximately 100km2 within the offshore Shorouk Block, nearly 200km from Port

how exciting the project is. In the Shorouk Block, Eni holds a 50% stake, Rosneft 30%, BP 10% and Mubadala Petroleum 10% of the Contractor’s Share (where Eni, Rosneft, BP and Mubadala Petroleum are collectivity the Contractor).

Petrobel is responsible for executing the project, the Operating Company jointly held by Eni and the state corporation Egyptian General Petroleum Corporation (EGPC), on behalf of Petroshorouk, jointly held by Contractor (Eni and its partners) and the state company Egyptian Natural Gas holding Company (EGAS).

Project Partners and Suppliers

World class project sponsors usually mean world class partners and suppliers, and on this count, Zohr is no different. The nature of the project meant that most of

Zohr won the prestigious IPTC’s Excellence Award

the preparatory work was carried out underwater, calling for companies with highly specific skillsets. For example, the project’s engineering, procurement, construction, and installation (EPCI) contract was awarded to Saipem, who was supported by Norwegian subsea contractor Havram by providing subsea umbilicals, risers, and flowlines. On the Zohr North development, Havram installed 100 miles of umbilical product in over 4,600 feet of water depth.

Aker Solutions was awarded the contract to deliver approximately 180 kilometres of steel tube umbilicals that connected the subsea wells to the off shore platform. Bonatti handled the electrical and instrumentation works for the project. The project’s autonomous underwater

vehicles (AUV) were supplied by UTEC, a subsidiary of Acteon. OneSubsea was awarded a $170m contract to provide subsea production systems for the first phase of the project development in June 2016, Petrobel was the main contractor for the second pahse and Baker Hughes, was awarded the contract to provide its innovative subsea production systems for phase two of the gas field, which began in September 2017.

Elsewhere, support work contracting services were supplied by Toubar Contracting Company and Petroleum Marine Services (PMS). A range of oil and gas platform services were also provided by SAPESCO, Spina Group, DeepTech Oil Services, Borets International, KT-Kinetics Technology was awarded a contract extension of an existing EPC project of gas monetization. Other auxiliary technology

services were contracted out to National Technology Cairo and Golden Light For Electrical Supplies.

An Inflection Point for Egypt

Claudio Descalzi, CEO of Eni, recently met with Egypt’s President, Abdel Fattah el-Sisi, and the Minister of Petroleum and Mineral Resources, Tarek El-Molla, to discuss Eni’s activities in the country as well as areas of common interest and collaboration, all in relation to Egypt’s vision of becoming a regional gas hub by sustaining domestic demand and LNG exports opportunities by leveraging existing LNG Plants. Eni’s commitment to supporting local production through an aggressive exploration and development campaign (Eni has won five new exploration licenses in Egypt), as well as accelerating the decarbonization of its operations and developing CO2 capture and storage (CCS) and hydrogen production projects was also tabled.

In the future, the discovery of the Zohr field will almost certainly be seen as the moment that Egypt’s fortunes took a dramatic upward turn. Even during the Covid-19 pandemic, the funds generated by Zohr enabled the government to provide enough funding to allow the economy to continue growing. Few projects can claim to such an impact. With a very short period, Zohr has already proven to be a true inflection point for the prosperity of Egypt and its people.

It has been over a decade since Business Excellence (BE) fi rst ran a feature on Namibia Power (NamPower). At that time, the company was focused on delivering the Caprivi Link Interconnector (now known as the Zambezi Link Interconnector), a N$3.2 billion project which would connect Namibia’s electricity network with its northern neighbours, enabling it to trade directly with them. Delivered in 2012, the company has now set its sights on more ambitious targets.

In a recent interview with NamPower’s Managing Director , Kahenge Haulofu, we had the opportunity to discuss the scope of these ambitions, against a backdrop of often challenging conditions. Mr. Haulofu was kind enough to talk us through the projects underway at NamPower and how they will continue to contribute to electricity access and stability in Namibia.

What emerges quite clearly is the central role that NamPower plays in Namibia’s movement to prosperity.

A Changing Energy Mix in a Changing Environment

In the time since BE’s last engagement with NamPower, its work has contributed to the country’s electricity access evolving from around 45% of the total to approximately 50%. Despite the progress, Mr. Haulofu knows that the

company has its work cut out: “The Minister of Mines and Energy has set Namibia a target of adding 220MW of generation capacity between 2019 and 2023, and 150MW of this has been allocated to NamPower.”

He continues: “Our intent is to develop six renewable energy generation projects under our strategic pillar of ‘ensuring security of supply.’ The introduction of these projects will significantly change NamPower’s energy mix from traditional sources of energy, and over

The Minister of Mines and Energy has set Namibia a target of adding 220MW of generation capacity between 2019 and 2023, and 150MW of this has been allocated to NamPower.

SGB-SMIT POWER MATLA (PTY) LTD

SGB-SMIT POWER MATLA is the largest power transformer manufacturer in Sub-Saharan Africa and has more than 75 years of local South African history - backed by the global strength and expertise of the SGB-SMIT Group, spanning more than 114 years. The company has the capability to design, manufacture, test, install and commission a wide range of power and distribution transformers within the two manufacturing plants located in Cape Town (distribution) and Pretoria (Power). The company has a fully equipped laboratory in Pretoria, with testing capability for materials testing (including transformer oil) and also supports external clients.

The Pretoria plant has a manufacturing capacity from 5 MVA 66kV up to and including 800 MVA 420 kV and incorporates power and furnace transformers, rectifier transformers, traction transformers, shunt reactors and related equipment. The production facility also includes a fully accredited transformer testing facility where all transformers manufactured are tested according to international standards (IEC 60076). This recently installed test equipment has been designed to handle the largest high voltage transformers capable of being produced within the factory. The test facility can also test transformers according to ANSI specifications. Special tests are also available on customer request. This in-house testing facility represents a significant strategic advantage and is currently the largest facility in Africa.

The factory in Cape Town, known as Distribution Transformers, manufactures distribution

transformers from 16 kVA to 5 MVA 66 kV; miniature substations; LNERs; NECRTs and other related equipment.

Every SGB-SMIT POWER MATLA product is custom-made from standardised design elements and uses uniform manufacturing operations. This flexible, but well-coordinated approach ensures the highest quality of design and construction for all transformers and makes the best possible use of the valuable knowledge and experience gained over the years and best practices developed.

+27 12 318 9911 info@sgbsmitpowermatla.com

www.sgbsmitpowermatla.com

SOLUTION THE RIGHT TO ELEVATE YOUR BUSINESS

BARLOWORLD NAMIBIA (PTY) LTD

Service is the foundation on which Barloworld Equipment was built, and the culture of customer support has been our primary focus in Namibia. Our reputation has not been on selling equipment alone, but on providing the best solutions for our customers’ business needs.

Our goal looks ahead, not only to the future of our business, but to the success and sustainability of your business.

We believe in mutually beneficial partnerships that leads to working as one and walking the journey together.

We have a Product Support department which seeks to develop innovative and effective equipment management solutions for your business, providing a wide range of support services, world class facilities and dedicated service engineers.

You can rest assured that as you walk the journey, you don’t have to walk it alone. We are here, at your service, to support your business growth.

time decrease the country’s dependence on energy imports.” This is of critical importance: About 60% of Namibia’s electricity is still imported - down from about 80% a decade ago.

Did you know?

About 60% of Namibia’s electricity is still imported - down from about 80% a decade ago.

Mr. Haulofu outlines in some detail NamPower’s intent to develop the six renewable energy generation projects under its strategic plan. Two of the six projects will be implemented by Independent Power Producers (IPPs), whereby NamPower will be off-taker, while the four projects will be owned and operated by the company, and primarily funded from NamPower’s own balance sheet.

He says: “The IPPs are the Khan 20MW solar PV project, on which construction started in March 2022, and the commercial

operation date is expected in the third quarter of 2023, while the 50MW Wind Project, is currently under evaluation. We’re very close to awarding the contract to the successful bidder, after which we’ll sign the project agreements. The financial close on this project is also expected in the third quarter of 2023.”

The four projects, to be fully owned and operated by NamPower are the Omburu 20MW Solar PV Project (completed in March 2022), a 40MW Wind Power Project (planned for completion in October 2024), a 40MW Biomass Power Project (planned for completion in second quarter of 2025), and the 50MW Anixas II, Firm Power Project, where detailed engineering is already in progress, and the completion of the projected is expected in December 2023.

MPAMOT enhances

access to affordable, reliable, sustainable, energy in Namibia

According to a recent report on the achievement of the United Nations Sustainable Development Goals, the world is making progress towards Sustainable Development Goal 7: Affordable and clean energy Unfortunately, 789 million people in predominantly sub-Saharan Africa, are living without access to electricity and millions have limited or unreliable energy access.

One of the countries that has taken great strides to enhance energy access, energy efficiency , and renewable energy is Namibia. NamPower developed the flagship 20 MW photovoltaic (PV) plant in Omburu, Namibia. The plant was developed by the joint venture partners HopSol Africa and Tulive Private Equity.

MPAMOT Pty Ltd and Mott MacDonald Limited are the owner’s engineers for the project, which will service nearly 20 000 homes.

Team members include Alberto Cuellar (project principal), Jose Munoz (project manager), Kader Johnson (civil manager), and Kevin Bowers (electrical manager).

Our renewable energy team enabled our clients and partners to overcome barriers, address risk , and unlock value. We manage d the entire infrastructure cycle – from project inception, feasibility, implementation, and construction. Currently, we are monitoring operations.

We combine technical engineering expertise , with commercial, environmental, social and governance acuteness, and our in-depth knowledge of the energy sector.

Our services on the Omburu project included conceptual design, development of employer’s requirements, development of specifications for the request for proposal for the procurement of an engineering, procurement and construction (EPC) contractor, evaluation of the bids submitted by prospective EPC contractors, support during EPC contract negotiations, review of detailed design done by the EPC contractor, construction and commissioning supervision including permanent site presence, management of the EPC contract, acting as employer’s representative under the EPC contract, and monitoring of the initial operation phase during the defects notification period.

Over the past 25 years, MPAMOT has grown to become one of the largest black-women-owned engineering and infrastructure development consulting firms of its size, capacity, and capability in South Africa.

MPAMOT’s portfolio includes energy, advisory, infrastructure and transport eng ineering solutions.

Whether you are a public entity that is looking to bridge an infrastructure gap through private investment, a lender or investor who wishes to assess risk prior to commitment, or a project sponsor/developer that is about to submit a bid or embark on the process of securing finance for a project, or planning the design and construction of infrastructure, MPAMOT can a ssist.

For more information , visit our website: www.mpamot.com

Photograph: Fred Bailey, project manager NamPower; Kevin Bowers, electrical manager; D Gertzen, chief operating officer, MPAMOT ; Iyaloo Nangolo, HopSol Africa/Tulive Private Equity joint venture partner

The four projects, to be fully owned and operated by NamPower are the Omburu 20MW Solar PV Project (completed in March 2022), a 40MW Wind Power Project (planned for completion in October 2024), a 40MW Biomass Power Project (planned for completion in second quarter of 2025), and the 50MW Anixas II, Firm Power Project

Mr. Haulofu makes no secret of his enthusiasm for these projects. He notes: “All of these important projects are at an advanced stage. Furthermore, several transmission projects which were also approved as part of our corporate strategy and business plan will be delivered in the next five years to strengthen Namibia’s national grid, and to dispatch the power generated from these six new generation projects to the end customer.”

Dealing with COVID-19

NamPower continued to add to Namibia’s electricity connectivity over the past two years, despite being in the midst of the COVID-19 pandemic. Mr. Haulofu says: “I believe that there is no business that has not been impacted by COVID19. NamPower was not spared as it was compelled to adjust its way of doing business. The systematic impact of COVID19 and the lockdown put severe pressure on the operations of the company and the national economy.”

He adds: “For example, the country’s already challenging economic situation combined with the impact of the COVID-19

pandemic on the economy, negatively impacted NamPower’s debtors’ collection days. Right now, it takes us an average of 81 days to collect revenue from customers, indicative of the existing challenging economic situation and the impact of the pandemic on businesses, as well as on individuals.”

Chie Wasserfall Chief Executive Officer

NamPower was sensitive to these new demands, as it experienced the harsh toll of COVID-19 at first hand. Mr. Haulofu says: “we lost some cherished employees who served the company for many years and contributed to making NamPower the company it is today.” This brought home the reality of the virus to many, and the fact that “NamPower had to adapt to new ways of operating and realising that we couldn’t go about business as usual.”

The silver lining is that the team has come through the dark times, he says: “The period also compelled staff to come up with innovative alternative solutions, in cases of lengthy turnaround time of repairs on equipment that needed to be sent out of country. A case in point, is the solution for the ever-faulty Voltage

Regulating Relays that NamPower Engineers found in-house. The Protection, Telecommunication, Metering & Control (PTM&C) team had designed, tested, and successfully implemented a simple, but reliable Automatic Voltage Regulation (AVR) solution for the Walvis Bay Substation Transformers.”

The Future

When asked about NamPower’s priority over the next five to ten years, Mr. Haulofu is unflinching in his answer: “Ensuring security of supply. We want to achieve that through optimally expanding and upgrading the company’s generation and transmission capacity, while capitalising on the opportunities presented in the Southern African Power Pool (SAPP). In

the process NamPower wants to ensure a least-cost electricity supply mix, by investing in a generation project mix and technologies that result in the least-cost electricity to customers.”

He acknowledges too, that this needs to be achieved sustainably, saying: “the region as a whole needs to focus on adding new generation plants to the grid that is dispatchable, while using local energy sources that are economically and environmentally sustainable to meet future demand growth.” This is the kind of joined-up forward thinking that will see

GOLD MINE GOLD MINE

The Kibali goldmine in the HautUélé province of the northeast Democratic Republic of Congo is no ordinary mine. With 812,152 ounces produced in 2021, the combined open pit and underground gold mine is officially the sixth biggest in the world. Now into its

13th year, the gold mine is still considered to have an enormous upside: In addition to an exploration prospect pipeline that continues to expand, its business plan seems set to continue for at least another 10 years. Business Excellence decided to take a closer look.

No Ordinary Mine

Situated adjacent to the town of Doko and 210 kilometres from Arua near the DRC’s

With 812,152 ounces produced in 2021, the combined open pit and underground gold mine is officially the sixth biggest in the world

Barrick Gold estimates that the mine has been directly responsible for in-country investment in excess of $4.2 billion

border with Uganda, Kibali is co-owned by AngloGold Ashanti (45%), Barrick Gold Corporation (45%), and Société Minière de Kilo-Moto (SOKIMO) (10%), a state-owned gold mining company. To date, Barrick Gold estimates that the mine has been directly responsible for in-country investment in excess of $4.2 billion. And with policy that encourages local participation at levels as well as its continuous investment in region that figure should more than double in the next 10 years.

This extension of the mine’s life begins with the addition of the 11,000 Lode to the underground operations. The discovery of this Lode at the beginning of 2022, is located above the base of the existing shaft infrastructure. Now almost a year into its life, it continues to deliver positive results, unlocking additional value for the main, and remains open down plunge. It is indicative of the success of the ongoing exploration work being conducted by the mine’s owners.

This ongoing exploration work is happening across several fronts. Drilling is currently underway at the Mengu Hill, Agbarabo, Rhino, Zambula, and Makoro targets, all of which are showing potential as additional underground and open pit satellites. However, it would be amiss to only report on the size and scale of the Kibali mine. Equally as important, are the industry-setting standards being set by the operations.

Operational Excellence

The considerable energy required to power Kibali is sourced from its three state-ofthe-art hydropower stations, supported by new backup battery technology. This is one of the contributing factors to the mine’s 14001 environmental accreditations, another of which is its development of a new pump system, which was installed with the specifi c aim of reducing the mine’s freshwater consumption.

A NEW STANDARD FOR MINING SERVICES

The management team at Kibali also announced at the end of 2021 that its long-held plans to build a cyanide destruction plant were now underway. The work, which will reduce cyanide concentration in Kibali’s dams and improve its plant recoveries, is expected to help Barrick and its partners in Kibali to achieve International Cyanide Management Institute (ICMI) accreditation when delivered a little over a year from now.

Barrick estimates that the mine has been responsible for around $4.2 billion in direct investments in the country over its lifetime

took in the global financial crisis, which saw a steep downturn in mineral prices and overall economic output, and the Covid19 pandemic (more of which later). Indeed, when Barrick Gold acquired Kibali in 2009, the DRC’s GDP was US$18.6 billion. In 2021, the fi gure was $53.96 billion.

Socioeconomic Impact

Figures from the World Bank show that 2022 will mark the 20th successive year of positive economic growth for the DRC - a remarkable statistic, given that this period

These figures show, thankfully, Kibali is just part of a much bigger success story. But it is an important one. Barrick estimates that the mine has been responsible for around $4.2 billion in direct investments in the country over its lifetime. The mine invests in everything from exploration to road projects, staff development, equipment replacement, and of course, a series of environmental and social projects.

T: +243 81 815 1582 E: adry@minequip.biz

T: +243 81 709 6916 E: riaan@minequip.biz

On the socioeconomic side, however, Kibali’s impact can particularly be seen in the DRC’s previously undeveloped northeast - now a genuine hub of economic activity. Here, Kibali has been highly active in partnering with and mentoring local entrepreneurs, enhancing local communities, and upgrading essential infrastructure. Hiring and training at all levels of the organization from local villages has also been hugely impactful: 94% of Kibali’s workforce, including its management, are Congolese nationals.

It is now also driving the employment of women in the traditionally maledominated mining industry through targeted recruitment campaigns and development programs designed to equip them for rewarding careers at all levels of the organisation.

The Covid-19 Response

The team behind Kibali was also not slow about responding to the threat of Covid-19 as the pandemic reached the DRC. As well as outlining a detailed support program for the country, Barrick announced a $1.5 million fi nancial commitment to counter the pandemic and its effects. The government recognized that Barrick was the first of any large company in the country to make a substantial financial commitment to countering Covid.

Barrick’s contribution was extremely valuable: As a company that already has extensive experience in dealing with ebola, it maintains a dedicated workforce of health workers and doctors to administer treatment, materials, and advice. The $1.5 million commitment was also above

and beyond the investment in critical equipment, totaling about $1.4 million, already made by Barrick at an earlier stage of the pandemic.

Strategic Supply Chain Partners

With three of the world’s top 10 mines in its portfolio, Barrick is a name that easily attracts high-caliber supply chain partners. Examples of these include heavy equipment and machinery industry giant Caterpillar, which collaborated with Tractafric - a Moroccan company - to install 7.5 MW of battery energy storage at Kibali. Elsewhere, many of Barrick’s partners on the ground in Kibali are a who’s who of African mining and drilling companies. These include Amazon Drilling DRC, a drilling specialist and earthworks contractor, Redrilza Drilling Services, SGS Minerals RDC, a local branch of the international mining firm, a Zambian drilling company, Epoch Resources (Pty) Ltd, a

WWW.BOARTLONGYEAR.COM

Dedicated to the success of Barrick, in Mali, and around the world.

South African engineering consultant, and Inter Oriental Builders (IOB), a civil engineering company.

On the technology side, MineARC Systems is responsible for controlled technology and safety at the mine and its operations; American Mine Door developed the considerable mine doors at the plant, and ORICA, did some dedicated work on the mine’s infrastructure. Transport and logistics are provided by Tradecorp Logistics and Bolloré Transport & Logistics DRC. Finally, Barrick has developed a strong partnership with the local staff recruitment firm, MD Services SARL.

Environmental impact

Kibali is not only Africa's largest gold mine, but also a global leader in sustainability initiatives, biodiversity programmes, and clean energy, according to Barrick

president and CEO Mark Bristow. Barrick also continues to invest in Africa's biodiversity by reintroducing 76 white rhinos to the Garamba National Park, a critical step in the long-term plan to protect this endangered species. This investment has also resulted in an increase in the park's giraffe population.

Local sustainability projects include the development of a world-class aquaponics farm and the establishment of a vocational and technical training centre to promote community capacity building. Following the government's approval, the implementation of the cahier des charges mechanism has begun. This will be in

addition to the mine's current commitment to invest 0.3% of revenue in community projects identified through consultation with the mine's community development committees.

Kibali also continued to lead the group's clean energy drive, concentrating on power from three continuously upgraded hydropower stations and new backup battery technology.

Outlook

Barrick may have created a blueprint for other mining companies entering Africa to work from: International expertise,

local upskilling, government cooperation, and world-class technology. With the progressive Congolese government on its side and a prosperous partnership in place with AngloGold Ashanti, it seems like the sky is the limit for what Barrick and the operations at Kibali can achieve.

KABALI GOLD MINES

LUCARA DIAMONDS

Diamond History

In November 2015, Lesedi La Rona, the world’s second-largest gemquality diamond ever found, was mined at the Karowe Mine in Botswana. The mining team behind the discovery was Lucara Diamonds (formerly called Boteti Mining), a diamond exploration and mining company founded in 2009. In less than six years, the Canadian-registered firm had made a discovery that placed it firmly in the spotlight of industry analysts. Since then, the company has proven that it wasn’t a one-off event. Karowe Mine is the only mine to have ever recorded three +1,000 carat diamonds and consistently recovers high-value +10.8 ct diamonds. Even for a mine based in Botswana, a country ranked 2nd in the world for diamond production, Lucara’s performance stands out from the crowd. Business Excellence decided to visit and explore what makes it shine.

The Karowe Mine

Lucara Diamond Corp. is a mid-tier diamond producer which owns a 100% stake in the Karowe mine. Its name, Karowe, means “Precious Stone”, and it is one of Botswana’s six diamond mines. Under the leadership of President and CEO Eira Thomas, it currently generates revenues in excess of US$230 million (2021 revenue).

Karowe Mine is the only mine to have ever recorded three +1,000 carat diamonds and consistently recovers high-value +10.8 ct diamonds

MARUNG DEVELOPMENT SERVICES (PTY) LTD

Marung Development Services (Pty) Ltd is a 100% citizen-owned company that offers a wide range of products and services of the highest quality in the mining industry value chain. The main objective of Marung Development Services is to provide drilling and blasting services, including drilling consumables management as well as mining consultancy services to its clients.

Amongst the services provided by our team of experts are the following;

• D rilling and blasting services and consultancy on efficiency improvements (optimization of drilling and blasting results)

• Mining consultancy services, including benchmarking audits and advice on Mineto-Mill.

• Mining value chain assessment and elimination of bottlenecks. Mining project management

Marung Development Services have done Auditing and Benchmarking work for Debswana Diamond Mines, and are currently providing drilling and blasting services to Lucara’s Karowe Diamond Mine.

www.mds.co.bw

Visitors to Lucara’s Karowe mine are greeted with an expression that seems to encapsulate the company mission well: “Make diamond history.” Given the context of its performance over the past decade, the statement stands to reason: the Karowe mine has become renowned in the diamond industry for its production of very large and high-value white gem diamonds - the most well-known of which is Lesedi La Rona (formerly known as Karowe AK6) which was acquired by British jeweler Graff.

The Karowe mine is well-known for producing a multitude of acclaimed diamonds. Another of which is the Sewelô; a rough diamond weighing 1,758 carats. A collaboration between Lucara, diamond manufacturer HB Company, and Louis Vuitton will see the diamond cut and turned into jewelry.

The combination of a mine rich in rare diamonds, state-of-the-art technology, and leadership that is recognized as among the best in its industry have

Under the leadership of President and CEO Eira Thomas, it currently generates revenues in excess of US$230 million

enabled Lucara Diamonds to benefit in the form of margins far above the standard. In 2022, the projected free cash flow yield is projected to be higher than 25% - high even given the industry’s upswing. Best of all, this is all done with an eye to sustainability (see below), ensuring that results in the short term always yield positive long-term socioeconomic effects for Botswana.

Expansion of Mine Operations

Did you know?

life to 2040. Thanks to this, and the company’s ability to extract more efficiently than most of its competitors, it is expected that the expansion projects will contribute approximately $4 billion in additional revenues, using conservative diamond prices.

The Karowe mine underground expansion represents the continuation of Lucara’s impact. The company announced at the beginning of 2022 that it would invest $534 million to increase the mine size, extending its

The expansion of the Karowe Mine provides further evidence of its management’s commitment to excellence. 2021 was the first year that it deferred making a divided payment to shareholders, instead using the cash to ramp up its capital investment. Shareholders will be the winners of this move, as diamond prices climb higher.

4 of the 6 board members are female, 2 of 3 executive officers are female, and 31% of the workforce

The transition to main shaft sinking began in Q2 of 2022, and the expansion is currently running on time and within budget.

Women to the Front

Somewhat against the grain in the mining industry, Lucara is unapologetic about putting women at the front of its operations. One of its co-founders and current CEO, is Ms. Eira Thomas, a Canadian executive with more than a quarter of a decade of experience in mining. She is just one of many women making waves at the firm. Another significant figure steering the wheel at Lucara is its Managing Director, Ms. Naseem Lahri. Ms. Lahri is born and raised in Botswana, a trained chartered accountant, and a seasoned executive in the mining industry working with Morupule Colliery and Debswana. Her leadership at

Lucara and in the community earned her the title of “2022 Business Woman of the Year” at the All Africa Business Leaders Awards

They and others at Lucara Diamonds are cutting a path for other women who might otherwise have believed mining was a male-oriented profession. Here, the company’s numbers speak for themselves: 4 of the 6 board members are female, 2 of 3 executive officers are female, and 31% of the workforce (unfortunately, an industryleading figure) is female. The company is actively changing perceptions about gender in the mining industry.

Socioeconomic Impact

Lucara Diamonds has published a sustainability report for the past nine years. Every year, it invests significant sums into

Lucara recently launched an online marketplace for the trading of

diamonds - Clara Diamond Solutions

ongoing and one-off projects located in and around the mine site. Although many of these have focused primarily on mitigating the impact of Covid-19 for the past two years, the company’s efforts in the Karowe Village Initiative (KVI) continued apace. Examples during the pandemic included the development of an integrated farm, a stock farm, and the commencement of a sports complex.

In terms of employment, Lucara directly employs 545 people at its mine. At the end of 2020, its total employment figure, which included contractors, was 1,108. Importantly, 99% of these were Botswana nationals, all of whom stand to benefit

from the company’s trainee employment programs, hiring from within, and longterm commitment to the country.

Overcoming the Covid-19 Challenge

The Covid-19 pandemic had a tangible detrimental effect on the diamond industry, with margins falling by as much as 40% at its height. Thankfully for the diamond industry, its recovery was V-shaped. Lucara conducted a number of business continuity initiatives during the pandemic. The most notable of these was a 24-month committed supply agreement with Europe’s large manufacturing company, HB Antwerp.

Outside of the risk-mitigating agreement with HB Antwerp, the Botswana government decreed that mining was a strategic national industry. As a result, Lucara continued working without stoppages and introduced a number of safety measures for all of its employees. These measures contributed to the company showing a 0.7% positive result rate across 2,478 tests. In addition, it made contributions to the government’s Covid relief fund and distributed food hampers, hygiene products, and first aid training to the needy.

A Mining Firm Grounded in Technology

Away from its core operations, Lucara recently launched an online marketplace for the trading of diamonds - Clara Diamond Solutions. This is the first of its kind in an industry where, until now, trading has been driven by intermediaries. Clara

recorded a sales volume of $28.7 million in 2021 (168% increase on the previous year) and it believes that within five years, the platform has the potential to generate as much cash flow for the company as its core mining operations - and even surpassing it in the years thereafter.

In a sense, this mirrors the path taken by some well-known trading firms that began acquiring mines a little over a decade ago. But the company’s commitment to infusing its work with technology can also be seen on the operations side. For example, its Karowe Mine was the first mine in the world to use XRT Technology - a method that checks for diamonds by investigating the atomic particle density - and is now considered to be the future of mining.

Strategic Supply Partners

Lucara has a range of supply chain partners that make a stellar contribution to its record as one of the world’s most productive mines. This begins with companies working on the mine’s own operations, which include the United Mining Services Group (UMS), Marung Development Services, Moolman Mining Botswana, Uzuva Holdings, and Minopex Botswana, which provides bespoke operations and maintenance services.

In terms of auxiliary services, the equipment - which the company needs to be able to fully depend on is leased or purchased from local suppliers such as Trollope Botswana, Madupi Plant Hire, Torma Sorting Mining, and Serious Systems. Malca Amit Botswana plays a pivotal role in the company’s storage and shipping of

diamonds. Finally, WEC Projects (Pty) Ltd is responsible for overseeing the mine’s water and wastewater operations.

A Bright Future Ahead

The medium- to long-term outlook for Lucara is highly positive with futures trading on diamonds showing upward momentum irrespective of the global economic challenges. As CEO Eira Thomas states “The focus on remains the underground expansion, we want to get the message out that this project is fully financed, fully sanctioned by our board and we have spent just over $150m to date of our planned $534m investment. It’s going well and what is exciting about the opportunity as it allows us to access the most valuable part of the ore body because at Kawore it actually gets richer the deeper we mine and all of our highestvalue diamonds have come from these deeper geological units so we are really

excited to be unlocking the value of the underground and we have basically demonstrated that we have more value ahead of us than behind us”.

With this expansion project, Lucara expects to mine till at least 2040 and in doing that it remains focused on maintaining a strong, healthy balance sheet and maintaining the operational excellence it is known for as it continues to run its mine safely and efficiently with its partners. Lucara is also evolving its thinking with its different approach to sales by exploring opportunities downstream and with its strategic partnerships that allow it to build demand for its diamonds and the best prices as well.

In less than a decade since the mine went live, so much has already been achieved by Lucara and its partnership with the community ensures its sustainability and growth. These are exciting times in Botswana, a progressive country with big ambitions that has a mining company to match.

Odyssey

CANADIAN MINING’S

With production of over 55,000 tonnes the largest in Canada but one

RESEARCH

BY Joseph

MINING’S GOLDEN CHILD

tonnes per day, the mine is not only one of the largest in the world

Joseph Philips

Odyssey Mine

It has been a little over a decade since commercial mining began at the Canadian Malartic Mine in northwestern Quebec, Canada. With production of over 55,000 tonnes per day, the mine is not only the largest in Canada but one of the largest in the world. In 2020, however, the partnership behind the mine announced that it was going to begin construction of surface infrastructure and an underground exploration ramp, in a project known as the Odyssey project.

With geopolitical instability pushing global gold prices to new records at the beginning of 2021, the decision to expand by the mine’s sponsors is a timely one. At peak operations, the Odyssey mine will enable the extraction of 19,000 tonnes of ore at an estimated grade of 2.75 g/t gold and roughly 5,000 tonnes of waste rock per day. Business Excellence took a closer look at the Odyssey mine and found that the sheer scale of the project meant that Odyssey was a very fitting name.

Overview

Modern exploration drilling began at the Canadian Malartic property in 2005, and by mid-2011, commercial production was already underway. The mine was acquired by Agnico Eagle and Yamana in June 2014 and exactly six years later, in June 2020, the mine poured its 5 millionth ounce of golda remarkable milestone. The Odyssey mine

“The Odyssey mine will enable the extraction of 19,000 tonnes of ore at an estimated grade of 2.75 g/t gold”

project represents the next chapter in the Canadian Malartic story.

First approved in 2020, the Odyssey mine project involves expansion of the project into the East Gouldie, Odyssey and East Malartic zones. The ramp being developed as part of the Odyssey project will provide additional access for exploration drilling to expand and upgrade the current mineral resource base, and allow for bulk sampling of up to 40,000 tonnes of mineralized material, and to expand the mine’s useful life.

Significant progress has already been made in a relatively short period of time. By the end of 2020, at a time when the Coronavirus pandemic had shut down most of the world, the ramp had already progressed 102 metres. 2021 saw an additional 1,500 metres added. Production using the ramp is expected to begin next year, in 2023, and will enable the mine to increase its output by up to 3,500 tonnes per day.

When completed, the shaft will have an estimated depth of nearly 2,000 metres.

“Production using the ramp is expected to begin next year, in 2023, and will enable the mine to increase its output by up to 3,500 tonnes per day”

Capital expenditures between 2021 and 2028 are expected to reach approximately $1.34 billion, and gold production in the same period is forecasted to be around 932,000 ounces, projected at a conservative $800 per ounce (at the time of writing, the price of an ounce hovers at around $1,900), with direct costs associated with extraction of around $630 per ounce.

Sustainability

As the largest mining project in Canada, the team behind the Odyssey mine were also adamant that it should be an industry leader in terms of sustainability. As such, the overall project is in compliance with a number of sustainability initiatives, including CDP (Formerly the Carbon Disclosure Project), Towards Sustainable Mining, the

“As the largest mining project in Canada, the team behind the Odyssey mine were also adamant that it should be an industry leader in terms of sustainability”

International Cyanide Management Code, the United Nations Sustainable Development Goals, the Tailings Management Standard, and others.

Agnico Eagle’s last sustainability reportpublished at the beginning of 2021 - outlines a series of sustainability programs. In terms of GHG reduction initiatives alone, the company

“The company has saved over 15,000 tonnes of GHG emissions from insulation of its buildings, electric rail-veyor, heat recovery programs, and installation of a compostor”

has saved 80 tonnes of GHG emissions from insulation of its buildings, 7,000 tonnes from its electric rail-veyor, 8,000 tonnes from its heat recovery programs, and 300 tonnes from its installation of a compostor. These projects are ongoing and continue to be updated, seeking out further energy efficiencies.

Covid-19 Response

Did you know?

Capital expenditures between 2021 and 2028 are expected to reach approximately $1.34 billion, and gold production in the same period is forecasted to be around 932,000 ounces, projected at a conservative $800 per ounce

The hope is that, once the Odyssey mine is fully operational, the last remnants of the Covid19 pandemic will be a distant memory. However, it’s worth noting that the project was given the green light as the pandemic was at its peak. During this time, company management set up a COVID-19 Steering Committee to manage its operations safely through the worst of

the pandemic. At the Canadian Malartic Mine, this even included continuing salary payments to employees through government mandated mining reductions.

Partners and Suppliers

As one might expect from a project of this scale, there are a host of high-profile partners and suppliers that are called in to achieve the project deliverables. These include Epiroc Canada, which has developed custommade simulators for the mine, which have been programmed to operate identically to the actual equipment that will be used by operators, enabling them to develop skills and safety practices in the process.

Elsewhere, well-known companies from the mining industry involved on the project include

MacLean Engineering, which are providing a fleet of MacLean Engineering electric vehicles, environmental and engineering consulting from H.P. Hydraulique – Forcetech Consultants and Epiroc preparing operators for the underground environment with our training simulators. WSP is providing comprehensive engineering services for the building of the ore handling infrastructure, including the headframe, hoist room, jacking infrastructure, and shaft, in order to ensure safe and efficient operations. Béton Barrett (concrete), Petro Canada (oil and gas), VCC General Contractor Canada and industrial equipment from Wajax and Atlantic Industries Limited.

Conclusion

Mining in some form has been present on the Canadian Malartic property for over a century now, but it’s only since the current team took over at the beginning of the 21st century that the operation really began to reach its potential. As the biggest mine is a country renowned for world class mines, the Canadian Malartic project is a credit to its owners, Agnico Eagle Mines and Yamana Gold. The Odyssey Mine represents the latest phase in the mine’s progression, and the scale of its ambition makes its name a fitting tribute.

“As one might expect from a project of this scale, there are a host of high-profile partners and suppliers that are called in to achieve the project deliverables”

INTERNATIONAL AIRPORT

Aglance at the various lists for the world’s best airports confirms that airports are increasingly seen as a sign of a country’s ambitions, a catalyst for further growth, and a way for a country to present itself to the outside world. For Guyana, the world’s fastest-growing economy, the airport that fits this mould is Cheddi Jagan International Airport (CJIA) in its capital city, Georgetown.

With one of the world’s largest oil per capita ratios, Guyana is set to join a list of small countries which have been transformed by commodities. Most made an airport a central tenet of their country’s investments. All indications are that CJIA is set to follow a similar trajectory. Business Excellence decided to take a closer look at an airport for which the skies aren’t even the limit.

Increases Across the Board

A recent US$115 million loan from the InterAmerican Development Bank to Guyana to improve the country’s transportation networks - a massive loan for a country of less than 1 million people - is ample indication of the confidence being placed

September 2022 saw record 30,010 international passengers come through the airport’s gates

in the country’s prospects. But it’s also clearly being made based on the rapidly growing numbers at CJIA.

When compared to 2020, passengers passing through CJIA have doubled. And this despite the lingering effects of Covid on international air transport. And when compared to 2019 - the last full pre-pandemic year in Guyana - CJIA is running at close to par, perhaps even tipping into a record year for passenger traffic in 2022.

In 2021, a total of 359,350 foreign passengers passed through the airport, compared to 182,736 in 2020. These numbers are set to increase further with the addition of the world’s largest airlines acquiring berths at CJIA. In the first quarter of 2023, this will include British Airways, which will pass through CJIA twice a week, on flights with capacity for 332 passengers.

Before that can even happen, however, CJIA will have to deal with ever increasing visitor numbers. September

2022 saw record 30,010 international passengers come through the airport’s gates, albeit influenced by a cricket festival being held in Georgetown, but further proof that numbers at CJIA are all trending in the right direction.

Expansion Project

Did you know?

One of the most significant developments that occurred during the modernization was the addition of two air bridges, enabling the airport to cater for flights with planes of type D and E (those carrying above 300 passengers).

The numbers couldn’t keep rising without suitable adjustments to the airport’s infrastructure. Just over a decade ago, an ambitious expansion plan was mooted for CJIA, which is now at the final stages of completion. Works began in 2018 and the total cost of the development will run

close to US$150 million. The works took in construction on the existing terminal building as well as a new arrivals terminal building, a remove apron, an extension of the north east and south east runways, diesel generator room, and fire pump station. It is no exaggeration to say that the modernization of the airport is transformative for Guyana and its tourism ambitions.

One of the most significant developments that occurred during the modernization was the addition of two air bridges, enabling the airport to cater for flights with planes of type D and E (those carrying above

300 passengers). This was the spur that attracted the interest of carriers like Jet Blue, and British Airways. Increased scale also promises cheaper flights.

The new departure area also has seating for 450 people - a considerable statement of intent in itself. Visitors will also be welcomed by the diversity of the airport’s offerings. It now includes everything from coffee shops and places to acquire traditional Guyanese food, to a Lego store and the classic duty free offering.

Socioeconomic Impact

The extension of CJIA and its importance goes well beyond raising the passenger numbers at the airport as a means in itself. Slightly less than 8% of Guyana’s GDP comes from tourism and the industry employs some 22,000 people. The big takeaway from these numbers is that Guyana’s tourism industry needs to grow and CJIA will be a part of that. In 2022, the country’s president, Irfaan Ali, said that the government would seek to plough some of the vast

8% of Guyana’s GDP comes from tourism and the industry employs some 22,000 people

royalties received from oil sales into other industries to diversify the economy away from hydrocarbons. The tourism industry should be a big benefactor, and CJIA will be an important conduit for this to happen.

The extension of CJIA and the accommodation for larger international planes has also fed into a desire among large hotel chains to begin operations in the country. Hyatt, Best Western, and Marriott are already preparing high-quality hotel accommodation in Georgetown, which will provide further employment, and boost the technical proficiency of local workers in the tourism industry.

Partners and Suppliers

Further proof of the socioeconomic impact of CJIA can be seen in the local

nature of the airport’s partners and suppliers - a diversified mix of Guyanabased companies, and currently just a handful of international players.

Local partners include GUYOIL Aviation Services providing CJIA with the diesel cracks that its planes need to refuel, Timehri Handling Service Inc. for airport baggage handling, Ramps logistics, a fast-growing local player in the hydrocarbon logistics industry, Massy Motors Guyana, Kallco Guyana Inc. for its construction services, and Total Solutions for its elevators.

Of its international partners, CJIA counts on Consolidated Cargo and Aviation Services, the world’s largest airport logistics firm, InterCaribbean Airways, long responsible for bringing the world to Guyana, ATG Airports and NextGen Systems Group for overseeing the extended airport’s complex technology requirements, and China Harbour Engineering Corporation (CHEC) for bringing the extension project to realization.

The Future

With the recent discovery and explosion of Guyana’s oil and gas sector, nobody doubts that Guyana will experience consistent economic growth for decades to come. It has become the new frontier for investments with expectations similar to that of Dubai. To this end, there is a growing traffic of investment and people headed towards Guyana and CJIA will be the landing point for most if not all.

CJIA is still a small airport in international terms but considering the ongoing investments in its expansions as well as

plans to liberalize immigration laws in Guyana to meet demand for future growth, combined with increased tourism, general commercial trade, and the country’s rising profile, mean that it cannot stay small forever. Don’t be surprised to see CJIA sitting atop the world’s best airports lists in the very near future.