Licensed by Dubai Development Authority
183 August 2021
MEConstructionNews.com
THE BUSINESS OF CONSTRUCTION
The Next Step BIG PROJECT ME SPEAKS TO RAHAIL ASLAM, CEO OF SELECT GROUP, ABOUT THE DEVELOPER'S LATEST PROJECT AND WHY IT IS CRUCIAL FOR ITS FUTURE IN DUBAI
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CONTENTS
August 2021
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16
18
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28
40
ANALYSIS
FEATURES
INSIGHT
08
20
34
Comments
Gavin Davids speaks to Rahail Aslam, CEO of Select Group, about the developer’s plans to expand its reach in the Dubai real estate market
36
Tenders
28
Big Project ME, in association with ProTenders, provides the biggest tenders for the month of August 2021
Big Project ME finds out how Khatib & Alami are helping to address the urgent water crisis in the Basra Region of Iraq
40
Progress report
The briefing
Why construction needs digitisation and the value of data and analytics
12
The big picture
Providing a wrap-up of the biggest local, regional and international construction news stories
16
Market report
JLL UAE Market Report looks at the UAE’s hospitality market ahead of Expo 2020
18
Analysis
In profile Rahail Aslam
Project profile Restoring Basra
The industry’s brightest minds share their thoughts on a variety of topics and issues impacting the construction industry
ZāZEN One crosses the 50% completion mark, with handover set for January 31, 2022
US-Saudi Business Council report finds that the Kingdom’s construction sector is back on the way up
MEConstructionNews.com | August 2021
2
WELCOME
Introduction
Can construction make a change?
T
he world we live in today is in crisis – the rolling effects of climate change are becoming increasingly apparent as we see wildfires sweep across countries, droughts destroy livelihoods, ‘once-in-a-generation’ storms become a regular occurrence, and temperatures climb around the world. Entirely manmade, this ongoing disaster threatens the livelihoods of millions and the health and wellbeing of future generations. This is starkly illustrated in this month’s Project Profile, where we speak to the Khatib & Alami team working on one of the most important projects in the region – providing clean and safe drinking water to the Basra region of Iraq after years of war, mismanagement, and mistreatment. Situated around the Shatt Al-Arab river, the area has been severely impacted by a combination of saltwater intrusion from the Arabian Gulf, environmental pollution such as raw sewage, litter, industrial and agricultural waste, and climate change.
August 2021 | MEConstructionNews.com
In order to find a solution to the problem, the Basra Governorate has rallied a team of experts, led by K&A to deliver a water strategy that would finally set the region on the path to recovery. While this isn’t going to be a simple fix, it illustrates how the construction industry can be a force for good, despite being a contributor and cause of climate change. Although construction firms are working to reduce their carbon emissions and introduce greener methods of construction, they can also be vital proponents in mitigating the disastrous effects of climate change. Looking forward to the second half of the year, we’ve got an exciting roster of events happening, including our first live event of the year – the ME BIM Summit, which will be held on October 5, 2021. After holding a virtual event last year due to the pandemic, I’m really looking forward to being back in front of physical audience this year. Do check out the website and get in touch if there are any particular topics you’d like us to focus on!
Gavin Davids
HEAD OF EDITORIAL & CONTENT gavin.davids@cpitrademedia.com @MECN_Gavin MEConstructionNews me-construction-news
2015, 2016, 2018, 2019 & 2020
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Licensed by Dubai Development Authority
183 August 2021
MEConstructionNews.com
THE BUSINESS OF CONSTRUCTION
The Next Step BIG PROJECT ME SPEAKS TO RAHAIL ASLAM, CEO OF SELECT GROUP, ABOUT THE DEVELOPER'S LATEST PROJECT AND WHY IT IS CRUCIAL FOR ITS FUTURE IN DUBAI
Group MANAGING DIRECTOR Raz Islam raz.islam@cpitrademedia.com MANAGING PARTNER Vijaya Cherian vijaya.cherian@cpitrademedia.com DIRECTOR OF FINANCE & BUSINESS OPERATIONS Shiyas Kareem shiyas.kareem@cpitrademedia.com PUBLISHING DIRECTOR Andy Pitois andy.pitois@cpitrademedia.com
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Advertising COMMERCIAL DIRECTOR Jude Slann jude.slann@cpitrademedia.com +971 4 375 5714
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Rahail Aslam, CEO of Select Group, tells Big Project ME why the time is right for the developer to diversify its development plans in Dubai MEConstructionNews.com @meconstructionn MEConstructionNews me-construction-news
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August 2021 | MEConstructionNews.com
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FEATURED
CONSULTANT
DEWA ANNOUNCES INSTALLATION OF 2MN ELECTRICITY AND WATER SMART METERS IN DUBAI
Broadway Malyan designs international school in Cairo
INFRASTRUCTURE
Egypt and Saudi Arabia to begin work on electrical interconnection project
OPINION: The impact of true value engineering
CONSTRUCTION
ADFD signs $15m loan agreement with Rwanda government for key road project
INFRASTRUCTURE
L&T Construction wins several contracts for energy infrastructure
FLEET
Randon Implementos to set up Kenya assembly plant August 2021 | MEConstructionNews.com
ANALYSIS: USSBC − Value of Saudi contract awards passed $5 billion in Q1 2021
I found myself recently googling how many residences there are in Dubai - if you want to know there were 432,278 apartments and 96,222 villas, or 528,500 residential units in 2017! - and it struck me at the time that was a serious amount of air conditioning units to be running, particularly at the height of summer. Obviously the numbers I found do not represent all the buildings, offices, labour facilities, and more, that we have here but it is clear that we need to be doing everything we can as individuals and developers to be keeping on top of the energy we are using. So the figures in this story should be warmly received by all of us in Dubai (DEWA announces installation of 2mn electricity and water smart meters in Dubai) and with a budget of almost $2 billion to spend on creating state of the art monitoring the onus has been placed on the bill payer to be more responsible. This is a major landmark to be celebrated but we all have much more work to do! Name withheld by request
Date
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5 Oct
Ritz Carlton JBR
R I T Z C A R LT O N J B R / D U B A I / U A E
The digital twins disruption; democratisation of data and expanding the scope of BIM 5 Oct 2021
About
6th ME BIM Summit
Insightful
Following a divergence into the virtual sphere in 2020, the Middle East’s leading BIM-focused summit is back in 2021 as a live event that will feature the industry’s brightest minds in an all-new format that is sure to educate and inform even the most experienced of construction professionals.
Last year’s event featured presentations and participation from the likes of Dubai Municipality, The Red Sea Development Company, the CIOB, Heriot-Watt University, and other industry leaders such as ALEC, EllisDon and KEO International Consultants.
Knowledge Sessions
Over the last six years, the ME BIM Summit has grown from an event focused on introducing BIM to an underserved audience, to an event that is now the industry’s leading platform for discussion, debate, and education about the far-reaching potential of BIM usage, and how the technology is driving growth, evolution, and innovation across all segments of the construction sector.
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8
THE BRIEFING
Technology
Breaking Down Barriers MIDDLE EAST
Tom Boland, director at Zutec UK, outlines why digitisation is urgently needed for the regional construction industry August 2021 | MEConstructionNews.com
Why does the construction need industry to digitise faster? The construction industry is known to be unproductive, and it has been this way for decades. One solution is digitisation, which can drive productivity and profitability. Its advantages span from mobility—no more struggling to keep track of each component of the paper trail—to the Internet of Things and advanced analytics. Cloud-based software can help construction professionals manage the entire construction process digitally, from the design phase through to handover. Further, digitisation minimises errors
and risks, and helps professionals to maintain compliance by keeping project records secure and scheduling customised inspections. Such tools also help companies to assess their digital processes when it comes to maintaining building safety standards, as well as meeting decarbonisation goals and shifting to green construction. Lastly, digitisation in the industry is set to improve data and transparency, making it easier for architects, developers, contractors and subcontractors to collaborate and see how every aspect of their project is being managed and how it’s progressing. There are also new
1970
The first BIM software tools emerged in the late 1970s and early 1980s
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tools, such as the Value Toolkit being launched in the UK, which are designed to assess the real value of projects and how they will benefit society, the economy and the environment in the long run, thus completely transforming the way the sector carries out its work.
Breaking barriers Digitisation is breaking down barriers in the construction industry by improving transparency, minimising errors and risks, and maintaining standards and performances.
Data democratisation Tom Boland says that the Middle East construction industry can benefit hugely from the democratisation of data.
What are other technologies that need to be embraced by the industry? While BIM has been around since the 1970s and has increasingly been put into use over the years, newer forms have come into play recently, which are used across the entire life cycle of a building rather than in the design phase alone. For example, ‘Field BIM’ manages construction data in an information model and uses it to inform accurate construction, operations, or maintenance on site. With this, handheld mobile devices become essential tools in accessing shared information and collaborating in real-time with colleagues at the office. The process saves time, minimises the risk of error, builds trust, ensures coordination, and boosts visibility. When used in conjunction with CDE modules, companies can get the full picture regarding their projects and can streamline everything from design collaboration to accountability and site safety. Other technology includes inspections protocols and tools—ranging from non-specialist tools such as Zoom and MS Teams, to specialist platforms like Zutec—AI, which is particularly useful when looking at data, patterns and trends for business, VR and AR, which are commonly used at the design stages, but can also be used on site, and drone inspections, which are becoming increasingly commonplace, especially on the QA/QC side of projects.
on board, and run, digital tools. Along with being more affordable, today’s tools are also smarter, and don’t need total connectivity at all times. For example, with a Field BIM tool, quality and compliance related checklists can be created on site and without an Internet connection. Another barrier is the large number of people who still have minimal digital skills or are reluctant to adopt them. They worry digitisation will involve a massive change in how they do business and that it will be too complex. This becomes a problem at all levels, such as when major contractors ask subcontractors to use digital tools in their projects—if they don’t have these capabilities, they’ll miss out on jobs. This barrier is steadily being removed due to a digitally savvy younger generation moving up the career ladder. To continue breaking it down, however, training programmes and regular courses should be offered. Why is it important to democratise data and can this truly be achieved in the Middle East? The end principle of any project should be that the client owns the data involved
in the construction of their assets. One of the benefits of more transparent use of data is de-risking: if people are recording their actions and are accountable for them, this can drive up standards. Further, one’s digital fingerprints are all over every aspect of the project he or she is involved in, therefore, by sharing data, it will make one’s day-to-day life easier, smoother, and better all around. It will also alleviate the historic problem of construction being adversarial and litigious. While there may need to be changes around contract law and culture in terms of working with other companies, everyone will benefit from digitisation. In terms of the Middle East, construction is a key driver for growth, and companies in the region need to be leading this adoption to stay relevant. Lean construction processes and off-site manufacturing are forecast to both reduce site effort and increase delivery speed. Furthermore, off-site manufacturing and DFMA (Design for Manufacturing and Assembly) will become a globalised commodity and value opportunity. Regionally, as a delivery hub, the Middle East can give forward-thinking local firms the opportunity to provide products and services outside of the region.
What are some of the biggest barriers to entry when it comes to digitisation in the industry? For many years, one of the biggest known barriers to entry when it came to digitisation in construction was cost. However, this barrier has been greatly reduced and access to connectivity has dramatically improved. It’s currently cheaper than ever to bring MEConstructionNews.com | August 2021
10
THE BRIEFING
Value from Building Data and Analytics MIDDLE EAST
Facilio’s Prabhu Ramachandran on how you can extract even more value from building data
August 2021 | MEConstructionNews.com
T
he US Department of Energy’s four-year Smart Energy Analytics Campaign recently presented findings that found analytics software had led to a median of 9% energy savings, in six and a half thousand buildings studied across the US. In the last few years, the consensus around the impact of operational analytics software for buildings – in predictive maintenance, energy management, commissioning etc – has become nearly universal in the commercial real estate industry. Although this mainstream acceptance is a welcome first step, it is also becoming obvious that to truly optimise the power of analytics, the industry needs to become better at implementing the insights it unlocks. Let’s take a look at how improvements
in software can enhance this leap from insights, to actionable outcomes. GETTING MORE FROM ANALYTICS Analytics are not a standalone ‘magic’ solution. For software to transform your operations to be more data-driven, you need to have a team that can drive the journey from insights to action, with empirically measurable results. So, one of the critical capabilities, which a great O&M software must have, is allowing all stakeholders and vendors to collaborate effectively. But that’s just a start. Prescriptive insights either uncover physical or system level issues. The first kind - that is, physical issues – usually need active human involvement to be resolved. Human intervention in system-led control issues, on the other
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Personalised experiences The demand for greater automation, control and personalised experiences will continue to grow in smart buildings.
9%
Average energy savings using analytics software in a recent US study
hand, is much more complicated. Any enhancement needed in the Three S’s - Sequences, Setpoints, and Schedules – requires the reprogramming of local automation software. This is far from straightforward, and even if a local control system is improved, the process will need to be repeated for all systems in your portfolio. As emerging smart building technologies add to the solutions you employ, this process will only get more complex. Especially since greater automation, more sophisticated control sequences, and the ability to deliver ever more personalised occupant experiences, will continue to escalate. The need for O&M teams to drive efficiency across every process, performance metric, and workflow, makes a strong case for cloud-based portfolio automation software. This portfolio-wide approach allows management software to be consolidated, and control sequences to be made more effective, at scale. Let’s consider the advantages of the approach: • Ownership of portfolio optimisation process: For fully optimised operations, O&M teams need control over data, as well as sequences, setpoints, and schedules. Legacy control software is unable to provide this, because it was designed to be used by vendors. Cloud-enabled software platforms overcome these limitations, taking into account inputs from all stakeholders, including occupants, to achieve full spectrum enhancement that ticks every box. • Portfolio scale consolidation of management software: Legacy building management software systems depend on separate applications for each function. The new generation of cloud-based software platforms enables portfoliowide unification and eliminates redundancies. Challenges, such as the recent pandemic, or the introduction of new regulatory guidelines and standards, can be overcome far more easily by replacing obsolete control sequences through over-the-air upgrades. • Cloud-enabled control sequences: Just like cloud computing enhances
To truly optimise the power of analytics, the industry needs to become better at implementing the insights it unlocks” the power of analytics to crunch data, cloud-based machine learning unlocks the ability to constantly upgrade control sequences predictively and proactively. The ability to take all real-time data and all sources across a portfolio into account results in much more comprehensive control sequences. A NEW BENCHMARK Analytics applications leverage advances in cloud computing, to crunch all the data created in local control systems, to generate insights. The next step in this evolution is to leverage the cloud for control sequences as well. A portfolio automation software will use cloud-based machine learning algorithms to create predictive and proactive control sequences, replacing
the reactive control sequences of the past. They will be able to leverage data from any system, in the building or the cloud, instead of just the data available in the local controller, to improve the effectiveness of the control sequence. For example, whereas the state of the art local control system needs occupancy sensors to tailor ventilation to actual occupancy, a cloud-based portfolio automation software will make use of the best available occupancy data, whether from an occupant app, WIFI access points, people counting device, or access control system. To reach the benchmark, the cloud-based portfolio automation software needs to be paired with a secure and intelligent edge, to monitor for local connection issues and mitigate in real-time. Next, the software needs to be capable of implementing supervisory control for all building systems: state of the art sequences, continuously updated, with self-service management and modifications of schedule and setpoint standards. The new benchmark requires a strong roadmap focused on ML capabilities, to make predictive and grid-interactive enhancements, while enabling open integrations and workflow automation, to enable modern O&M use cases. MEConstructionNews.com | August 2021
12
THE BIG PICTURE
01 UNITED KINGDOM
03 GERMANY
Snorkel begins full production on lithiumpowered roughterrain scissor lifts
Siemens to build major green hydrogen plant in Germany
Access equipment major Snorkel has announced the commencement of full production on five lithiumion battery powered compact rough terrain scissor lift models. These scissor lifts are designed to offer “a true zero emission rough terrain solution, without compromising on the reliability and four-wheel drive capabilities” of the diesel equivalents. The five new ‘RTE’ electric rough terrain scissor lifts are now in production in Snorkel’s assembly facilities in the UK and New Zealand.
02 UNITED KINGDOM
Saudi-owned Cleveland Bridge falls into administration due to COVID-19 Engineering and steel fabrication firm Cleveland Bridge has fallen into administration as a result of delays on several of its global infrastructure projects, bought on by the outbreak of COVID-19. The firm is owned by Saudi-based Al Rushaid Group. Joint administrators Martyn Pullin, David Willis, and Iain Townsend of specialist business advisory firm FRP have been appointed to help save the firm. The firm has 221 staff at its Darlington HQ and a satellite office in Newport.
Siemens has marked the start of construction of one of the largest green hydrogen plants in Germany with the official ground-breaking ceremony for the project in Wunsiedel, Germany, it has announced. In a statement, the energy solutions provider said the plant will have a capacity of 8.75MW, and that it will produce up to 1,350 tons of hydrogen per year using only renewable energy (solar or wind power). It added that the use of the generated hydrogen in transportation and industry will allow for CO2 savings of up to 13,500 tons annually.
04 IVORY COAST
06 KENYA
BESIX awarded contract for tallest tower in Africa
Randon Implementos to set up Kenyan assembly plant
BESIX has been awarded a major contract to provide site management, as well as the civil engineering works for a skyscraper in Abidjan, Ivory Coast, which will be the tallest tower in Africa. Standing at 935 feet, the F Tower is a project being developed by PFO Africa, with the support of the Ministry of Construction, Housing, and Urban Planning. It is the second project associating PFO Africa and BESIX and carried out for the Ivorian government, following the La Mé drinking water plant, which is currently under construction.
August 2021 | MEConstructionNews.com
05 RWANDA
ADFD signs $15m loan for Rwandan road project The Abu Dhabi Fund for Development (ADFD) has signed a loan agreement with the government of Rwanda to provide a $15 million concessionary loan to finance the construction and development of the Rubengera-Muhanga road project, which stretches across a distance of 61 kilometres. The project aims to renovate and expand the road linking the two cities to enhance traffic flow between them, as well as facilitating access to social, health and educational services, driving economic sectors, such as agriculture, tourism, and transportation, and trade.
Brazilian trailer OEM Randon Implementos is set to build a CKD (Completely Knocked Down) assembly unit in Kenya alongside JAP Africa, a subsidiary of Portuguese conglomerate JAP. A strategic agreement between the two commits both entities to the local assembly of semi-trailers. The platform and tipper sets are shipped from Brazil to be assembled and commercialised by the local partner. The expectation is for continuous growth in terms of market share in the next few years, reaching neighbouring countries such as Tanzania and Uganda.
THE BIG PICTURE
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08 UNITED ARAB EMIRATES
07 EGYPT
Construction permits applied for $30bn Egyptian nuclear power plant Construction permits have been applied for the first and second units of Egypt’s first nuclear power plant, the planned $30bn, 4.8GW El-Dabaa nuclear power facility, according to Russia’s Rosatom, which was awarded the contract to the plant in 2015. Rosatom said the North African country’s Nuclear Power Plants Authority (NPPA) has applied for the construction permits and has submitted the permit application and all of the required documents to the Egyptian Nuclear and Radiological Regulation Authority.
Al Masood Group appoints Hani Tannir as new head of power, construction and marine divisions
UAE-based conglomerate Al Masaood Group has announced the appointment of Hani Tannir as its new head of Commercial for its logistics, power, construction and marine divisions. In his new role at the Abu Dhabi-headquartered group, Tannir will lead key business development activities and generate new revenue streams for the group’s power, construction, marine, and logistics operations. He originally worked for the company from 1994-2013, before rejoining in 2020.
09 UNITED ARAB EMIRATES
Aldar launches second phase of Al Gurm Aldar Properties has announced the launch of the second phase of its Al Gurm development, a luxury secluded waterfront community on the SouthWest side of Abu Dhabi’s main island. The beach facing land plots at Al Gurm, which sit amongst the natural mangroves and open water, are exclusively available to purchase by UAE nationals. A total of 71 new plots are available at Al Gurm, which is comprised of a series of archipelago-style islands over a total of 105,000 sqm. Each plot will have access to exclusive beaches and sea views. Plots range in size from 900 to 4,400 sqm.
MEConstructionNews.com | August 2021
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THE BIG PICTURE
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10 SAUDI ARABIA
12 QATAR
Construction of KSA F1 circuit on track
Driver Trett appoints new country manager for Qatar and Kuwait
Construction work is in full swing on Formula 1’s fastest-ever street circuit, which is being prepared at Jeddah Corniche track, for the inaugural Saudi Arabia Grand Prix, which is scheduled for December 5, 2021. The 27-corner, 6.1km Jeddah Corniche Circuit will be the second-longest on the calendar and will feature an average speed of 250km/h, as per simulations. It will be 6.175km in length, the second-longest circuit on the current F1 calendar and the longest street circuit in the sport. The Saudi Arabian Grand Prix will make its calendar debut from December 3 – 5, 2021.
August 2021 | MEConstructionNews.com
11 BAHRAIN
Bahrain invites tender bids for road infrastructure works Bahrain’s Ministry of Works, Municipalities Affairs and Urban Planning has invited bids for a tender to carry out the first phase of infrastructure works at blocks 941 and 943 at Buhair, within the Southern Governorate, it has been announced. According to a statement by the Ministry, the scope of work includes a sixkilometre-long drainage network, running from Buhair to Sanad. The ministry added that the road network will also be upgraded, with a main line being set up to take rainwater from Buhair to Tubli Bay.
Driver Trett has announced a new country manager for Qatar and Kuwait. Mustafa Gun has been with the company in the Middle East for over five years and spent the last year overseeing the growth of the Kuwait business. His new role expands his focus into the Qatar market. According to a statement, Gun has more than 15 years of industry experience working in the Middle East, Europe and Asia, and has undertaken various commercial, contractual and claims management roles.
THE BIG PICTURE
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14 UNITED ARAB EMIRATES
13 UNITED ARAB EMIRATES
RTA releases PPP tenders for construction of three integrated truck rest stops Dubai’s RTA has released a tender for the construction of three integrated truck rest stops in the emirate of Dubai. The project offers an innovative model of Public-Private Partnership (PPP) aligned with the provisions of Dubai Law No (22) of 2015. The rest stops will be situated in vital spots. The first is on MBZ Road nearby Jebel Ali Industrial Area 3 in the direction of Abu Dhabi. The second is on Emirates Road, near the entry of Sharjah. The third is in Dubai Industrial City near Sheikh Mohammed bin Zayed Road.
Hill awarded PM contract for RAK Anantara Resort project Hill International has announced that it has been awarded a contract by RAK Properties to provide project management services for the 5-star Anantara Resort Hotel at Mina Al Arab in the UAE emirate of Ras Al Khaimah. The project is tailored to guests desiring overwater luxury in an eco-sanctuary setting and is scheduled for completion in late 2022, a statement said. Offering views of the ocean and adjacent tidal wetlands, the 71,000 SM, 174-key resort is located on the edge of the Eco Reserve, and takes full advantage of this setting, it continued.
15 UNITED ARAB EMIRATES
Khansaheb clocks more than four million workhours without LTI on University of Birmingham project A significant safety milestone has been achieved at the under-construction University of Birmingham Dubai; contractor Khansaheb has announced. The contractor has clocked more than four million workhours without a lost-time incident (LTI). The achievement reflects successful implementation of the highest HSE procedures and puts the construction project on track for completion in Q3 with 100% of structural works already finished.
17 ARMENIA
Masdar wins tender for 200MW Armenian solar plant 16 OMAN
SFZ completes second works package of logistic warehouses Salalah Free Zone (SFZ), an Asyad Group business hub, has announced the completion of construction works for the second package of logistic warehouses, covering a total area of 25,000sqm, it has been announced. The facility will lend strong support to the logistics sector in the Sultanate, enhance the global supply lines with innovative solutions, and open up investment opportunities for national and foreign industries. The SFZ logistics project has a full set of services to power Asyad’s investment projects’ economic roles.
Masdar has been selected by the government of Armenia as the winning bidder for the tender for a 200-megawatt (MW) major utility-scale solar project. After a competitive international bidding process, Masdar submitted a final price of $0,0290/kWh. The plant will be located in the Talin and Dashtadem communities of Armenia, in an area where solar radiation is both high and land is unusable for agriculture. Around $174 million will be invested, with a new substation built. The plant will span over 500 hectares and will create numerous jobs.
18 INDIA
L&T Construction wins global energy infrastructure contracts L&T Construction has won a number of orders for the development of energy infrastructure overseas and in India, with the construction subsidiary securing a major contract to design, supply, construct, install, test and commission a 132/11kV substation with associated cable works in Dubai, along with two transmission line packages from Africa. The firm’s Power Transmission & Distribution Business was awarded a contract for the supply and construction of a new gas insulated substation and associated substation extensions in Thailand.
MEConstructionNews.com | August 2021
16
MARKET REPORT
Industry outlook
Hotel market continues recovery ahead of Expo 2020 Dubai UNITED ARAB EMIRATES
Latest UAE Real Estate Market Performance report from JLL finds that additional 12,000 keys expected to be delivered
T
he UAE hotel market is continuing to experience signs of recovery and will see an additional boost later this year with the delivery of new supply into the market and the arrival of tourists from all corners of the globe for Expo 2020 Dubai, according to JLL’s latest UAE Real Estate Market Performance report. In readiness for the arrival of international visitors for the showpiece event, Dubai will
August 2021 | MEConstructionNews.com
add an additional 12,000 keys over the second half of the year to cater for increased demand and the gradual return of travel following the impact of the pandemic on the hotel industry. In the second quarter, Dubai saw approximately 2,000 keys added to market, bringing the total stock to 137,000 keys. In Abu Dhabi, no new completions were noted, keeping stock stable at 30,600 keys. The report adds that 1,400 keys are expected to be added to Abu Dhabi’s stock over the second half of the year. JLL says the city’s new supply includes a host of four-star hotels, which makes up the majority of projects that are under construction (49%), along with a number of new five-star properties (37%). “The balance between four- and five-star hotels comes as no surprise and is in line with Dubai’s expanding tourism base,” said Dana Salbak, Head of Research, MENA at JLL. “Offering more mid-segment and affordable hotel stays without compromising
on quality has been a part of Dubai’s strategy to attract visitors from various destinations and comes in light of the high visitation numbers that are anticipated for Expo.” The report also shows how hotel occupancy levels in Dubai have steadily improved this year, recorded at 58% in year to (YT) May 2021, compared to 46% for YT May 2020. Similarly in Abu Dhabi, occupancy levels have improved slightly from 60% in YT May 2020 to 61% YT May 2021. However, Average Daily Rates (ADRs) still face pressure in the capital, declining by 7% to reach USD 89 for YT May 2021. UAE operators also continue to offer staycation deals to capitalise on domestic tourism demand, while international tourism remained limited due to the pandemic. “We can expect this trend to continue for the short to medium term until further easing of travel restrictions are successful in opening key source markets, particularly ahead of Expo 2020,” said Salbak.
MARKET REPORT
17
DUBAI HOTEL KEYS, THOUSANDS OF KEYS Current Total Stock
137,000 H2 2021 Deliveries
DUBAI HOTEL OCCUPANCY
46%
150
DUBAI HOTEL RATES & REVENUE
54%
YT May 2020
120
90
30
60
12,000
YT May 2021
USD147
USD85
Average Daily Rate YT May 2021
Revenue PAR YT May 2021
Offering more affordable hotel stays without compromising on quality has been a part of Dubai’s strategy to attract visitors from various destinations and comes in light of the high visitation numbers that are anticipated for Expo” ABU DHABI HOTEL KEYS, THOUSANDS OF KEYS Current Total Stock
31,000 H2 2021 Deliveries
ABU DHABI HOTEL OCCUPANCY
60%
YT May 2021
35
28
ABU DHABI HOTEL RATES & REVENUE
USD89 Average Daily Rate YT May 2021
USD54 Revenue PAR YT May 2021
Source: JLL, STR Global
YT May 2020
61%
21
7
14
1,400
MEConstructionNews.com | August 2021
18
ANALYSIS
Saudi construction
On the Rebound SAUDI ARABIA
A US-Saudi Business Council report finds that the Kingdom’s construction sector is back on the way up
T
he construction sector continues to witness an increase in the value of awarded contracts as it grew to $5.1 billion during Q1 2021, reflecting a 20% increase compared to last quarter, according to a report by the U.S.-Saudi Business Council. On an annual basis, the value of awarded contracts lagged by 58% compared to Q1 2020. The economic backdrop during the first quarter was largely influenced by the Kingdom’s decision to cut oil production last
August 2021 | MEConstructionNews.com
February in an effort to buoy global oil markets, which led to an oil GDP decline of 12% and total GDP to also decline by 3.3% on an annual basis. Conversely, non-oil GDP witnessed a 3.3% increase during the same period and a grew by 4% compared to last quarter. The reemergence of consumer spending and bank lending to the construction sector coupled with continued spending on housing projects aided in the Kingdom’s non-oil sector recovery.
in executable projects over the next 6 to 18 months. The number and value of executable contracts at the end of 2021 will slowly rebound as the macroeconomic landscape continues to improve. The CAI is expected to pass the 100-point threshold over the next three quarters as low base effects stemming from the considerable decline in contract awards during 2020 will revive the index. Despite the decline in the CAI, construction project awards are increasing compared to last quarter.
USSBC’S CONTRACT AWARDS INDEX PERFORMANCE THROUGH Q1 2021 The USSBC Contract Awards Index (CAI) declined to 92.30 points at the end of the first quarter. This follows the ongoing trend that began in Q4 2020 as the value of contracts significantly declined as result of halted and cancelled projects stemming from the pandemic. The decline of the CAI below 100 points for two consecutive quarters entails a possible slowdown
OVERVIEW OF AWARDED CONTRACTS BY SECTOR DURING Q1 2021 The value of awarded contracts during Q1’21 was led by the power sector, which accounted for $1.4 billion or 27% of all contracts. The power sector had 22 awarded projects that were dominated by the Saudi Electricity Company (SEC) while the Renewable Energy Project Development Office (REPDO) accounted for the highest value of contracts.
Sector recovery KSA saw a 3.3% increase in non-oil GDP during the first quarter of the year, prompted by consumer spending and bank lending to the construction sector.
22%
Percentage of contracts awarded from the real estate sector
ANALYSIS
In rebound The Saudi construction sector is in the midst of a rebound, says Albara’a Alwazir.
3.3% Total annual GDP decline
decision to decrease their capital expenditures for 2021 from $45 billion to $35 billion in light of the pandemic and lower oil revenues during 2020 will dictate the pace of awarded contracts during the year. Despite the decline in Saudi Aramco’s capital expenditures, the oil & gas sector is expected to garner a larger share of awarded contracts compared to 2020. CONTRACT AWARDS OUTLOOK “The Saudi construction sector is in the midst of a rebound as the value of awarded contracts climbs out of a difficult 2020 that witnessed the lowest values in over a decade. On a quarterly basis, the value of awarded contracts has steadily increased from the low point of $2 billion during Q2’20 to $5.1 billion in
Q1’21. Looking ahead, the macroeconomic environment continues to improve across a number of categories that should support stronger investments for the public and private sectors,” says Albara’a Alwazir, director of Economic Research at the U.S.-Saudi Business Council. An important indicator that construction activity is rising is the increase in cement sales. Cement sales as of May 2021 indicate that the 17 Saudi cement producers witnessed a 65% increase y-o-y to 3.5 million tons. The surge was driven by domestic sales, which grew by 71% during the same period. Furthermore, clinker inventories decreased by 22% y-o-y to 33 million tons despite a production increase of 4.6 million tons or 7%. The increase in investments and construction activities by the private sector has lessened the burden on the government to fulfil the Kingdom’s development plans. This has allowed the Kingdom to decrease its capital expenditures budget especially during a period of lower oil revenues. While the private sector has taken an expanded role, the government’s allocation of $27 billion for capital expenditures in 2021 will play a vital role in the development of social and physical infrastructure projects. However, the government spent only 15% of its budgeted capital expenditures during the first quarter of 2021. With 85% of capital expenditure remaining, the government will accelerate its infrastructure investments throughout the next three quarters of 2021.
USSBC CONTRACT AWARDS INDEX PERFORMANCE 400
300
200
2021
2020
2019
2018
2017
100
2016
BREAKDOWN OF AWARDED CONTRACTS ACROSS TOP PERFORMING SECTORS Power: The power sector surged during Q1’21 as the total value of awarded contracts reached $1.4 billion or 27% of the total. This marks the highest value of awarded contracts in the power sector since the fourth quarter of 2015, when it tallied $3 billion. Furthermore, the power sector grew by $423 million or 44% q-o-q, and by $690 million or 100% y-o-y. Real Estate: The real estate sector continued to witness sizeable investments during Q1’21 as residential developments led by the Ministry of Housing remain a key priority. The $1.1 billion in awarded contracts garnered 22% of the total share. Despite the real estate sector decreasing by $427 million or 27% q-o-q, it substantially grew by $697 million or 148% y-o-y. The residential segment accounted for $773 million or 67% of the real estate sector’s value of awarded contracts while the hospitality segment accounted for a distant second with $220 million or 19% during Q1’21. Oil & Gas: Despite a steep decline in the number of projects since the onset of the pandemic, the oil & gas sector consistently maintains its position as a top awarder of contracts by value. The $1 billion in awarded contracts during Q1’21 grew by $840 million or 442% q-o-q. However, the value this quarter significantly lags compared to the same period last year is at decreased by $1.8 billion) or 64% y-o-y. Saudi Aramco’s
2015
Source: MEED Projects, public outlets, government data, USSBC
The real estate sector garnered approximately $1.1 billion or 22% worth of awarded contracts as residential projects accounted for a majority of the share. The real estate sector had 13 awarded contracts that were led by the Ministry of Housing in residential and by The Red Sea Development Company in hospitality. The residential real estate segment continues to witness sizeable projects on the back of increasing Saudi home ownership to 70% by 2030. The oil & gas sector captured the third largest share of awarded contracts with $1 billion or 20% of the total. Saudi Aramco awarded all the projects in the sector as construction work pertained to the Shaybah NGL plant, the South Ghawar field, and Marjan field.
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MEConstructionNews.com | August 2021
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August 2021 | MEConstructionNews.com
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IN PROFILE
Select Group
The Next Step BIG PROJECT ME SPEAKS TO RAHAIL ASLAM, CEO OF SELECT GROUP, ABOUT THE DEVELOPER’S RECENT MOVE AWAY FROM THE MARINA AND INTO BUSINESS BAY, AND WHY THIS DIVERSIFICATION OF DEVELOPMENT NEEDED TO HAPPEN
MEConstructionNews.com | August 2021
22
IN PROFILE
n February 2021, Select Group, the Dubai-based private real estate developer, announced its first foray into the Business Bay and Downtown Dubai district with its acquisition of 15 Northside. Acquired with shell and core in place, and completed to about 50%, the project marked a divergence in the developer’s strategy, which had previously been concentrated on building towers in Dubai Marina. Having been active in the Marina area for more than 15 years, making the decision to expand into another high-profile area of Dubai is an important step for the company. Having established its name and reputation with projects such as Marina Gate, it is now time for Select Group to expand its reach, says Rahail Aslam, CEO, to Big Project ME. While 15 Northside may have been its first acquisition in Business Bay, it is by no means the last, he asserts, highlighting a recent acquisition land
Expanding reach Rahail Aslam says that the time has come for Select Group to expand its reach in Dubai’s real estate market.
15
Years Select Group has been active in Dubai Marina
by Select Group as being key to the next phase of the company’s evolution. “In terms of moving from Marina to Business Bay, it was something of a forced move. We’ve developed in Dubai Marina for 15 years, with several thousand homes and many waterfronts developments there. It’s fully developed now and there’s very little or next to no development left to be done there. So, as a core developer that is well established, with a good track record in this marketplace, we had to identify where we could develop next, and where there would be continuity for us. “Business Bay is centrally located, it’s in the central business district,
and it fits the bill. In fact, we found a once-in-a-lifetime opportunity by securing the plot that we’re involved in now – it’s a spectacular plot with almost complete water coverage. It’s unusual to be involved in influencing the masterplan, but we were fortunate enough be fully involved, working with best-in-class master planners to break down a one million square foot land parcel into several parcels. “It’s a complete vertical development, but what we’ve done is manage the amount of horizontal space we have for amenities, green spaces, parks, running tracks and so on. That type of masterplan doesn’t exist in Business Bay, or in the Downtown Dubai area,” he points out. Aslam explains that Select Group see the acquisition of the Peninsula plot as being the natural successor to the Marina Gate development. With the plot being 50% bigger in size and a GFA of 3.3 million square feet in its entirety, the project is certainly the largest scale development it has undertaken. “It is eight large scale developments within a masterplan. We’re kicking it off with Phase One, which is a 30-35 storey tower, and we’ll also be building our head office there. We’re moving from Dubai Marina into the development itself, and we’re building a substantial 100,000 sqft headquarters for the group. That’s Phase One and it will kick off any day
It’s unusual to be involved in influencing the masterplan, but we were fortunate enough be fully involved, working with best-inclass master planners to break down a one million square foot land parcel into several parcels” August 2021 | MEConstructionNews.com
IN PROFILE
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We found a once-in-a-lifetime opportunity by securing the plot that we’re involved in now – it’s a spectacular plot with almost complete water coverage” now. We’ve done the award and the contractor is mobilising. It’s probably going to be a 30-month build, and by early next year we’ll kick off Phase Two. There is a plan in place, which will see an additional phase kicked off every six to nine months,” he says. The overall completion schedule for the massive project will be six to seven years, Aslam adds, though he caveats that by pointing out that some market normalisation has to exist for that timeline to be fulfilled. If the pandemic or another related global event like it continue to impact the world economy, then plans will need to be delayed, he warns. However, the market indications for the project seem strong, with Select Group’s sales and commercial teams receiving positive feedback from investors, he says, adding that the developer is looking forward to a market launch in the third quarter of this year. “Peninsula isn’t a deviation from our core business, it’s a vertical development that we’re very familiar with and the master planning process was a joy to be a part of. We’ve created land parcels without compromising on open space and we’ve influenced what we think is a world-class development. We’re looking forward to kicking off construction later in the year,” Aslam elaborates, adding that the horizontal landscape of the project, with its emphasis on outdoor spaces and leisure amenities makes it quite pandemic-proof, in his opinion. Looking at the broader picture for Dubai in the wake of the pandemic, MEConstructionNews.com | August 2021
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IN PROFILE
Aslam states that with the market being cyclical, he expects the remainder of 2021 and beyond to see an upswing thanks to a variety of positive forces coming to the fore. “Markets are cyclical – there are long cycles where you have peaks and troughs. We’ve had the pandemic effect primarily in 2020, where globally, most countries were locked down. There was a lot of frustration, a lot of pent-up demand, that built up as a result. People’s behaviour has changed, outlooks have changed. “We believe that Dubai has done incredible crisis management, the leadership (during the pandemic) was probably amongst the best in the world.
August 2021 | MEConstructionNews.com
They’ve kicked off incentives to drive business and population back to the UAE – the golden visas, the passports, the 100% company ownership. We’ve got all time low-interest rates, while the Expo is also kicking off soon. “If you throw all these elements into a pot, it will kick off the market. Add in the frustration and lack of activity globally on the investment front, and I think we’re poised for a relatively buoyant period going forwards. I’m optimistic, but always cautious,” he asserts. Aslam points out that Dubai was in a recovery period pre-pandemic and that he believes that transactions are now happening at pre-2008 demand levels.
Poised to bounce back The response of Dubai’s government to the pandemic has placed the citry’s real estate market in a strong position to rebound.
1m sqft
Total size of the Peninsula plot
“All we’re seeing now is a continuation of the recovery, post the pandemic, with some pentup demand. I think that’s going to continue,” he predicts confidently. “Dubai offers good value for money, compared to other cities. I’m not going to compare it to London, Paris or Hong Kong, but when compared to other leading cities, Dubai offers good value for money thanks to things like safety, the lifestyle, the infrastructure and so on. I think it’s more interesting than it ever has been, to be honest.” As a result, Select Group has positioned itself to take advantage of this upsurge in demand through a series of marketing and broker
IN PROFILE
We’ve had the pandemic effect primarily in 2020, where globally, most countries were locked down. There was a lot of frustration, a lot of pent-up demand, that built up as a result”
campaigns that drove interest in its inventory of Marina projects. “We still had inventory in Marina Gate, No 9, Studio One, as well as our Business Bay project, 15 Northside. As soon as the market showed signs of picking up, we kicked off all activities and really engaged (with our clients) to start monetising our inventory base, which we now done almost completely. “In parallel, we’ve been accelerating plans to develop Peninsula, so we’ve awarded the early and enabling works contracts, while planning to kick of sales later this year. It’s going to be our conventional model, where we start construction, have a show unit on site, and then kick-off a launch campaign
On track Despite the delays caused by the pandemic, the delivery schedule for Peninsula is on track.
3.3m sqft
Total GFA of the Peninsula plot
25
for Phase One of the project. Our plans haven’t dramatically changed as we always wanted to bring Peninsula to the marketplace, and in the third quarter of this year, we’re going to do that. It probably would have been a bit earlier if the pandemic hadn’t happened, but we’re still broadly on track, in terms of our plans to progress the development.” Work on 15 Northside is now at the 60% completion mark, Aslam says, with working progressing according to schedule. The project has nearly been sold out, and completion is expected by the third quarter of 2022, with best-inclass service providers planned to be in place prior to the handover to investors. This attention to detail is reflected in MEConstructionNews.com | August 2021
26
IN PROFILE
the group’s wider strategy and future plans, which continues to progress in the same direction it has been for the last 20 to 25 years. The intention for any project started is that it must stand finished, fully capitalised, Aslam insists. “We’re not only developing in Dubai. We have a number of investments deployed in the UK – in London, Liverpool, Sheffield and Nottingham. We have diversified considerably to make sure that we don’t have a concentration risk, and that diversification will continue. We’ve also recently started to invest in alternative businesses, different sectors, that show growth potential, which is more about the diversification of the Group,” he reveals, highlighting the health and fitness sector as one area of particular interest. However, while they have investments in the UK, Aslam insists that for now, in the region, Dubai will remain the Group’s primary focus. “For property, I would say that we’ve got our hands full with Dubai. We’ve got a substantial pipeline of development coming through, and I think it would be irresponsible of us, at this moment in time, to go and do more,” he states in conclusion.
Dubai offers good value for money, compared to other cities. I’m not going to compare it to London, Paris or Hong Kong, but when compared to other leading cities, Dubai offers good value for money thanks to things like safety, the lifestyle, the infrastructure. It’s more interesting than it ever has been” August 2021 | MEConstructionNews.com
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Now, however, all eyes are once more focused on development opportunities: with Construction output forecast to record an annual growth of 4.2% between 2022 and 2025, further supported by the Qatar National Vision 2030 – set to invest US $16.4 billion in infrastructure and real estate by 2025. The far healthier picture continues with the resumption of work to expand the much-feted North Field – set to become the largest gas field in the world.
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August 2021 | MEConstructionNews.com
PROJECT PROFILE
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Mahila Reverse Osmosis Water Plant PROJECT NAME: Mahila Reverse Osmosis Water Plant CLIENT: Basra Governorate CONTRACTOR: Al-Dayer United Co & Kalite Holding DESIGNER: Malachy Walsh & Partners / EAB Design & Consulting Engineering Ltd CONSULTANT: Khatib & Alami LOCATION: Basra Governorate, Iraq
Restoring Basra BIG PROJECT ME LEARNS HOW KHATIB & ALAMI IS WORKING WITH THE BASRA GOVERNORATE TO ADDRESS THE URGENT WATER SCARCITY CRISIS IN THE IRAQI REGION MEConstructionNews.com | August 2021
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PROJECT PROFILE
he Basra Governorate in southern Iraq is in the midst of a transformational programme aimed at restoring its water infrastructure. A historical lack of investment, exacerbated by war and instability, has led the province to suffer from a chronic shortage of safe and clean drinking water for much of the past three decades. In 2018 this reached a crisis point which threatened the health and wellbeing of more than four million residents. The Shatt al-Arab river, which runs through Basra, has been severely impacted by a combination of saltwater intrusion from the Arabian Gulf, environmental pollution such as raw sewage, litter, industrial and agricultural waste, and the effects of climate change. Basra Governorate responded to the challenges of 2018 by appointing Khatib & Alami to get to the root of the problem. The consultancy was tasked with delivering a water strategy which would finally set a roadmap for recovery. “We were commissioned to deliver both a short- and medium-term plan which would tackle the most urgent issues with the water system, but also
Urgent need More than four million residents in the Basra region are threatened by a lack of access to clean and safe drinking water.
3,000 m3/hr Capacity of Mahila RO plant
provide a sustainable strategy for the rehabilitation of the network,” Dr Maher Kahil, Senior Manager – Infrastructure for K&A, tells Big Project ME. “Compared to many parts of the Middle East region, Basra governorate has an abundance of water resources. We needed to look holistically at the entire system to be able to make a series of proposals which could overcome their challenges in a manageable way, while providing the foundations for delivering a high quality, resilient water network.” Key issues identified by K&A’s team included the state of the region’s water treatment plants (WTPs), as well as its conveyance and distribution systems.
Historic lack of funding had resulted in a short-term approach using smallscale WTPs, but the nature of these poorly maintained plants resulted in low quality water, as well as consuming large amounts of energy. Some had already reached the end of their service lives; some were damaged, while others had urgent maintenance issues. As for the water distribution networks, the team found that most of the water pipelines were subject to encroachment, which reduces both the quantity and quality of water conveyed. There are no water areas or pressure zones in Basra due to the lack of water reservoirs, as well as a lack of organization in the existing network. After assessing future population demand and the existing infrastructure, K&A’s experts developed a water implementation strategy which included the construction timeframe for 16 new large-scale projects, including water treatment and desalination plants with a total capacity of 1 million m³/day, together with around 850 km of new transmission lines and 290 km of distribution pipelines to overhaul the water system. As part of the Basra Development and Reconstruction strategy, K&A is also spearheading the full infrastructure design and supervision for wet utilities, dry utilities, roads, and landscaping in specific areas across 55 km². “A multidisciplinary team of 80 specialists from our Cairo and Beirut
Compared to many parts of the region, Basra has an abundance of water resources. We needed to look holistically at the entire system to be able to make a series of proposals which could overcome their challenges” August 2021 | MEConstructionNews.com
PROJECT PROFILE
Design Centres is working in tandem to champion the detailed infrastructure design of five areas, with a construction cost of more than $1 billion,” explains Michel Saba, Basra Full Infrastructure project director for K&A. “Basra Governorate started to implement projects to improve its infrastructure systems several years ago, but an overall strategy was required to provide the necessary focus and cohesion through which transformational change can happen,” adds Dr Kahil. “We’re proud to be part of this important program which will finally enable Basra Governorate
to overcome its water crisis, while supporting economic growth and prosperity for the community.” KEY PROJECT The majority of water treatment plants (WTPs) in the Shatt Al Arab River are no longer fit for purpose as they had not been designed for the current nature of the river. This is because it has been impacted by major variations in salinity levels due to tidal effects from the Arabian Gulf; low water levels upriver; high turbidity after rainfall; and pollution caused by the release of sewerage.
Rebuilding Iraq The development of the Mahila plant is an important step forward in supporting the rebuilding of Iraq.
130
Number of staff working on the project
31
This situation has created the need for water treatment plants capable of dealing with salinity levels from brackish to saline, high turbidity and the possible existence of other pollutants. In response, the Water Directorate of Basra (BWD) has successfully planned the implementation of several interventions to enhance the water supply scheme and the services provided to the citizens in this area as part of its continuous duties in this domain. BWD contracted K&A for the advisory consultancy role of design review of several treatment plants under implementation, including a key project – the Mahila Reverse Osmosis (RO) Plant. MEConstructionNews.com | August 2021
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PROJECT PROFILE
The Mahia (Emheila) water desalination plant uses the Reverse Osmosis (RO) process for a designed capacity of 3,000 m³/hr (72,000 m³/d) to produce potable water from Shat Al Arab river. A key challenge for this treatment plant is that the water source is highly affected by the tidal effect that brings saline water deeply upstream, especially during the drought period, resulting in unique conditions of salinity variation from 2,000 to 30,000 mg/l. The introduction of such a desalination plant is therefore vital for providing potable water with acceptable quality since conventional surface water treatment plants do not remove salinity. In areas less impacted by such a tidal effect, the Basra area continues to be served by other relatively more conventional treatment plants. Therefore, the Mahila RO Plant is one of several components currently implemented to mitigate the scarcity of potable water supply to the region, and incorporating a team that includes the Owner, Consultant, and Contractor (including their consultancy support and suppliers) has greatly contributed to the success of the project, which is currently being finalised to be ready for commissioning and start up. Ahead of the plant’s launch, Big Project ME spoke to the K&A team to find out how they helped deliver the project and increase the access and supply of clean drinking water to Basra. August 2021 | MEConstructionNews.com
85%
Current state of construction progress
What role did Khatib & Alami play on the project? Khatib & Alami delivered design reviews covering the water intake from Shatt Al Arab, the water transmission line from the water intake to the treatment plant, and the treatment plant itself, where raw water passes through screening chemical precipitation followed by lamella settlers, ultra-filtration units, and
Key issues impacting Basra Governorate’s water network:
• Decades of conflict and unrest has led to the destruction of water infrastructure and has been a deterrent to maintenance • Lack of funding for new water projects, as well as the lack of allocations for an operation and maintenance budget
• High levels of pollution from raw sewage, garbage, industrial and agricultural waste • Expansion of the salt wave from the sea inwards as of 2018, due to the diminished flow of the rivers • Climate change and desertification • Drying of the marshes west of Basra which feed into the Shatt al-Arab – over the past decade, the amount of water in the Euphrates has fallen to such an extent that the marshes are barely maintained at half their size.
finally the reverse osmosis membranes. The plant’s RO system enables flexible operation under different scenarios of salinity, varying from 2,000 to 30,000 mg/l, with energy recovery at higher salinity level through proper control systems. Water is further disinfected, stored, and pumped to the Abu Al-Khassib water supply network, while the reject is directed to a final discharge point after environmental investigation. In addition, K&A’s team has been responsible for capacity building by conducting training sessions for the client’s staff in the design and operation of RO systems. This project will complement other under construction WTPs such as the Al-Abbas conventional treatment plant which is in R-ZERO, the main water facility for water distribution across Basra Governorate, near Basra Airport. The Al-Abbas plant has a capacity of 120,000 m³ per day and will provide clean water as per international and Iraqi standards. We have assigned a multi-disciplinary team to review the design of the plant, including all structural, mechanical, electrical, ICA and civil engineering tasks. What is the current state of progress for the Mahila RO plant? The Design Review process is at 98%, while the construction progress is slightly less at around 85%. However, final arrangements are ongoing for tie-ins finalisation and commissioning and testing. What were some of the engineering and construction challenges encountered? The large variation in raw water characteristics (turbidity, salinity, etc…) due to tidal effects from the Arabian Gulf, combined with low water levels in Shatt Al Arab River, has led to the innovative design of the first mediumscale desalination plant capable of treating both seawater from the Arabian Gulf and surface water from Shatt Al-Arab river. This involves the use of high-pressure pumps and an energy recovery turbine (the working range is from 9 to 15 bar, while keeping the same product water quantity and quality). There was also a need for soil
PROJECT PROFILE
how did the team ensure that there was constant communication and collaboration between all stakeholders? The Contractor deployed approximately 130 staff to cover the various engineering aspects, including technicians, skilled laborers and so on. This was in addition to design office staff, which included local and international consultants, as well as project management teams from the contractor’s side. Frequent meetings between the Client, Consultant and Contractor were undertaken to ensure continuous progress of works. This was also accompanied by regular follow-up visits to the site.
Basra Governorate started to implement projects to improve its water systems several years ago, but an overall strategy was required to provide the necessary focus through which transformational change can happen” improvement to cope with the high ground water table. This required using the most efficient pile distribution approach in order to minimise project costs without affecting project safety. Selecting the optimum structural system, through close collaboration between the Consultant (as design reviewer) and the Contractor (including water intake structure and steel works) also helped in decreasing the project time-schedule and facilitated site construction. Strong consideration was given to ensure high durability, an economic design, and compliance with local and international standards.
33
time. Care was taken to select reputable suppliers for RO membranes, pumping & high-pressure pumping systems and energy recovery units, which are the core for any successful operation of a RO plant. The team also made sure to Investigate all options prior to timely selection of appropriate solutions for brine disposal, raw water feeding, etc. Finally, continuous activities were maintained on the project, even during the pandemic. What was the workforce deployed on the project and
Constant communication Frequent meetings between the Client, Contractor and Consultant were held to ensure continous progress of works.
Nearly completed The Mahila RO plant is at 85% completed in its construction process.
Finally, what were some of the construction technologies and methodologies deployed on the project to ensure its successful delivery? The following approaches were deployed during the construction process – the utilisation of pre-cast piles to accelerate the construction of the foundation; the use of pre-cast slabs in fuel tanks to facilitate accessibility and constructability. In addition, we designed an integrated layout, which combines administration requirements with plant operations, while hosting equipment in one central hall, which is a steel structure.
What was some of the planning put in place to ensure the smooth delivery of the project? Several factors contributed to the smooth delivery of work including the contractor assigning a European consultant to develop the design work, in conjunction with good-quality contractors, to ensure a high-quality product matching with the client’s requirements. K&A was appointed to deliver a comprehensive design review within a tight time frame to ensure that the project meets international codes and standards. This was managed to match the time schedules for the contractor’s design submission and consultant reviews. In addition, priority and long lead items were identified early on, so as to ensure that they were supplied on MEConstructionNews.com | August 2021
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COMMENT
Industry insight
CHRIS MEIR
CONEX BÄNNINGER MIDDLE EAST
The Impact of True Value Engineering
A
cross the construction industry, many of us use the term ‘value engineering’. In fact, it’s often a topic that sparks hot debate between contractors and consultants, sometimes with different approaches to the practice. But do we know how and why value engineering was conceived? Value engineering was first practiced during World War II as a response to skilled labour shortages and lack of raw materials. Lawrence Miles, an engineer at General Electric, noticed that some material substitutes were not only effective at reducing costs but also resulted in a final product of greater value and quality than before. And so, the methodical approach of value engineering was born. In my opinion, value engineering is a term often used in the industry to justify cost cutting. However, this is a common misconception. Value engineering does not mean cutting costs for a cheaper overall outcome. In fact, the primary principle of the concept is that functionality and quality must be preserved, and not reduced, as a consequence of lowering costs. Finding methods to lower costs is a welcome benefit, but the objective of value engineering is to add real value to the overall process. True value engineering should promote the planning and delivery of projects with improved performance. In the construction industry, value engineering is a key exercise that should be considered across the supply chain. The aim is to reduce costs and eliminate risk while optimising design for an end result that benefits all parties involved, as well as the end user. Challenges arise when value engineering
August 2021 | MEConstructionNews.com
is approached with a cost-first mindset that compromises on the functionality and quality of the product. With this approach, we risk a substandard finished product due to a singular focus on cost reduction. The regional construction industry is competitive – it is a price driven market in which companies often lose projects to competitors based solely on cost, rather than on their ability to deliver high quality, appropriate certifications or legislative requirements. For example, a consultant may specify a highperforming solution based on project demands. However, the contractor may choose to disregard the original specification and opt for a cheaper solution. If costs are cut this way across the project, the contractor risks engineering the value out of the project. In the short term, this may have cost reduction benefits. In the longterm, however, moving away from the original specification can have negative consequences for buildings, developers and end users. Certain products are selected because of their ability to provide a specific solution. True value engineering should defend the design by adhering to the specification in order to protect the integrity of the project. Moving away from the specification to save on capital costs can simply lead to a project that incurs additional costs down the line when it comes maintenance, durability, and safety. Furthermore, compromising performance for lower costs may lead to health and safety issues. The role of every space we create is to maintain occupant comfort and protect public health. Opting for solutions that compromise on quality, or even basic function, can not only inconvenience occupants, but lead to potential health hazards such as pipe bursts, leaks or fires. Material substitution should be based on performance, rather than just price. Often, alternative products are selected based on price, even though they are not suitable for the given application. When quality is sacrificed, safety standards are jeopardised, which can have a detrimental effect on the building and its occupants. As we move forward, the construction industry is placing increased importance on health, wellbeing and sustainability. Creating human-centric spaces is integral to progressing the industry. Chris Meir is the specification sales manager for the Gulf at Conex Bänninger Middle East.
SANJEEVV BHATIA NETIX GLOBAL BV
Connected Buildings Provide a Silver Lining to the Pandemic
T
he COVID-19 pandemic has been a crisis that affected the entire world. It left a particularly significant impact on the real estate industry, given that residential buildings needed to secure their occupants from an invisible menace, and most non-residential properties, still in use, were being used for essential services. Digital transformation was already making major inroads into the commercial real estate industry, when the pandemic struck. The immediate aftermath of the crisis proved to be clinching evidence that IoT and AI enabled connected buildings were far better suited to crisis management, than properties relying on legacy operational models. Some of the key advantages that digitally integrated buildings were able to leverage, during the course of the COVID-19 pandemic, have been: • Remote visibility and monitoring: With social distancing restricting onsite staff, delivering on all the critical functions on which a modern building depends became one of the first post-pandemic challenges. Connected buildings gave owners and facilities managers the ability to monitor and manage their assets remotely. This allowed them to perform several maintenance and management tasks remotely. • Effective energy management through live data feeds: Sustainability in real estate has been an area of focus, for some years now. In the aftermath of the pandemic,
COMMENT
with financial pressure on the commercial real estate industry at their zenith, effective energy management became critical to business outcomes. IoT and AI enabled building portfolios were able to derive actionable insights from realtime data, and optimise energy usage. • Ability to deliver on enhanced protocols, despite fewer onsite staff: Sanitation and access management has assumed unprecedented importance, in the postCOVID era. Delivering on the enhanced protocols was a challenge, with limitations on the number of deployable staff members. Remote monitoring, workforce coordination and verifiable digital records have proved to be indispensable in ensuring compliance. • Minimised facility management operational costs: Several commercial properties bore a barren look, with lockdowns and quarantine measures in effect, across the globe. Those residential buildings, to which people were restricted, were also impacted by rent waivers, in many locations. Under these circumstances, connected buildings proved to be far more capable of lean and agile operations, which addressed occupant safety and comfort, while also lowering operational costs. • AI and IoT based automation upgraded buildings to ‘smart’ status: The commercial real estate industry has long been aware of the need to upgrade its assets, so they are brought in line with the coming age of smart cities. The pandemic accelerated the rate at which building portfolios were digitised, upgrading existing buildings to a ‘smart’ status, thanks to digital retrofits. The World Health Organisation (WHO) along with other international medical bodies, and subject matter experts, have all stressed on the fact that the COVID-19 contagion could well be the first of more global pandemics, in the modern era. This most recent pandemic has underscored the sheer scale and speed, with which a global crisis can impact our hyper-connected world. One of the silver-linings to this crisis has been that connected buildings have proven their capacity to respond effectively to such challenges. An already compelling argument, for the adoption of digitally integrated commercial real estate operations, has now become indisputable. Sanjeevv Bhatia is the CEO of Netix Global BV.
RUPERT TAIT
PROCURIFIED
Building the Future: How Digital Technology is Impacting Construction
T
he effects of Covid-19 forced every industry to adapt to new ways of working and much of the past year’s stratospheric pace of adaptation has been enabled by digital innovation. It had to be – with the world working remotely, there was no other choice. But while many digital solutions allowed work to continue as normal – such as remote video-conferencing – necessity was the mother of invention when it came to transforming established industry practices. Construction, with its historic reliance on paper trails, has always been notoriously resistant to change, but Covid-19 proved to be a tipping point. Even as recently as last year, my consultancy firm, Smith Tait was being asked for its electronic submissions on CD by construction companies. Most computers don’t even have CD drives any more. Information was flowing slowly, which was impacting my business. I realised it was impacting every stakeholder in the process, an ‘a-ha’ moment. I knew I could build something to help my team, but I realized in order for it to make a game-changing impact it would need to help everybody. Decision-making in the construction industry has always relied on face-to-face
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meetings, with procurement heavily rooted in paper-based submissions laboriously inputted and compared using traditional desktop spreadsheet software such as Excel. Procurified, founded with my business partner Marc Lemmens in 2020, streamlines the entire procurement and estimation process, by connecting suppliers and manufacturers with contractors on a cloud-based user-friendly interface. Data such as costs, timelines and quantities are uploaded into a centralised system that can be instantly and automatically reviewed. Every building has to be designed and requires products and materials to be purchased on time and on budget. How efficiently the procurement process is achieved has a huge impact on cost. With our effective procurement processes and tool, we allow our customers to save up to 80 percent of their time traditionally spent on this process, while enabling them to reach out to ten times the number of vendors. Our customers such as ALEC FITOUT and BK Gulf, are saving 80% of their time when prepping and reviewing estimations. That’s the benefit. Procurified replaces the hugely time-consuming need to use dozens of separate spreadsheets and PDFs. We have already achieved an impressive $17million of transactions to date and was awarded first prize of $10,000 by start-up accelerator company CSA7. It’s an exciting time to be in construction, as I believe the industry is finally experiencing its own ‘Uber moment’. For example, on-site surveys used to involve a group of people walking around a construction site, recording everything manually with a camera and spreadsheets. Now, there is a platform attached to a camera that takes live 3D images of the site, which can be uploaded to the cloud, labeled and progress compared. Meanwhile, there is a company that has developed a way to measure how concrete is setting using specialised sensors. We see changes at every level of the industry that are underpinned by advances in digitally based technology. To be positioned at the vanguard of change in the global construction industry is incredibly exciting. Rupert Tait is co-founder of Procurified. MEConstructionNews.com | August 2021
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Middle East tenders UAE MIXED-USE
Burj 2020 Tower (T1) TERRITORY Jumeirah Lake Towers, UAE CLIENT Dubai Multi Commodities Centre (DMCC) BUDGET $1.1 billion DESCRIPTION The project's scope of work consists of a 115-storey commercial, hotel and residential tower located to the south of Jumeirah Lake Towers, Dubai. This tower is expected to house a 360-degree observation deck on the topmost floor. Its height is not yet known but it is expected to be the world’s tallest commercial tower. Other features include a 28 meters main podium in the middle of a two-level central plaza, set to be larger than New York Times Square, and a retail mall that will have direct access to the two
towers. The tower will be a part of the plans to extend the business park. There will be a 107,000 square meters planned extension to the existing business park. The tower is named in honour of Dubai’s Expo 2020 win. The tower will house a 5 star hotel and branded residences, restaurants, health spas, extensive conference facilities, grade A offices, and 237 residences. COMPLETION 30/12/2027 EDUCATIONAL
Nord Anglia School TERRITORY Al Reem Island, UAE CLIENT Nord Anglia Education BUDGET $35 million DESCRIPTION The project's scope of work consist of a 3-storey new school building located at Al Reem Island, Abu Dhabi. It will comprise a 2,250 seat campus set in spacious grounds close to Abu Dhabi's new central business district, offering premium K-12 education. The project also includes an admin office, classroom, staff room, library, auditorium, play area, laboratory, cafeteria, bus parking, and associated facilities. The campus will feature extensive sports, science and arts facilities for students from
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SAUDI ARABIA COMMERCIAL
Diriyah Gate Development Super Basement Package
the age of 3 to 18 located on Al Reem Island, Abu Dhabi. COMPLETION 30/12/2022 HOSPITALITY
Palace Al Khan TERRITORY Al Khan, UAE CLIENT Sharjah Investment & Development Authority (Shurooq) BUDGET $35 million DESCRIPTION The project's scope of work consists of a resort located at Al Khan, Sharjah. The project will include a range of F&B options. The hotel offering a spectacular blend of nature and state-of-the-art facilities, integrating Sharjah’s downtown history with modern waterfront living. The project also includes conference facilities and parking. COMPLETION 30/12/202
TERRITORY Riyadh, Saudi Arabia CLIENT Diriyah Gate Development Authority BUDGET $70 million DESCRIPTION The project's scope of work involves the construction of large basement car parking structure on an area of 750000m2, civil works, structural works, tunnels, parking space to accommodate more than 10,000 cars and associated facilities in Diriyah Gate Development, Riyadh, Saudi Arabia. COMPLETION 30/12/2023 COMMERCIAL
Diriyah Gate Development (Phase 1) Car Park Package TERRITORY Diriyah, Saudi Arabia CLIENT Diriyah Gate Development Authority BUDGET $60 million DESCRIPTION The project's scope of work involves the construction of
MEConstructionNews.com | August 2021
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TENDERS
a 4-story multi-car park buildings within the Bujairi District of the Diriyah project in Saudi Arabia. COMPLETION 30/12/2023 INFRASTRUCTURE
Red Sea Development (Phase 1) - Southern Dunes Hotel 14 & Infrastructure Works TERRITORY Southern Dunes, Saudi Arabia CLIENT The Red Sea Development Company BUDGET $20 million DESCRIPTION The project's scope of work involves the landscaping, infrastructure works and associated facilities for Hotel 14 a part of Southern Dunes in Saudi Arabia. This will be a hyper luxury hotel with 80 rooms. COMPLETION 30/12/2024
OMAN HOSPITALITY
Ibis Styles Muscat TERRITORY Muscat, Oman CLIENT Oman Tourism Development Company (Mina Sultan Qaboos Waterfront Company (OMRAN))
BUDGET $45 million DESCRIPTION The project's scope of work consist of a hotel building with 280 keys located adjacent to the Oman Convention Exhibition Centre, Muscat, Oman. The scope also includes construction of banquet halls and meeting hall, conference halls, children’s club, recreational and leisure facilities, the exhibition center, a meeting hall, an all-day dining restaurant, parking facilities and installation of elevators and security systems. COMPLETION 30/12/2023
BAHRAIN OIL & GAS
Bahrain Well Head Compression For Non Associated Gas Wells
parking for public buses. COMPLETION 31/03/2024 MIXED-USE
MIXED-USE
Burj Al Sahwa Transport Hub TERRITORY Muscat, Oman CLIENT Oman Global Logistics Group (Asyad Group) BUDGET $80 million DESCRIPTION The projects scope of work consists of a mixed use development located at Willayat Al Seeb in Muscat, Oman. The scope also includes commercial and residential buildings, hotels, public facilities, tourist facilities, car rentals, information centers, retail shops, medical center, food & beverages outlets, restaurants, entertainment facilities, bus station and
Azaiba Mixed Use Development TERRITORY Muscat, Oman CLIENT Oman Global Logistics Group (Asyad Group) BUDGET $75 million DESCRIPTION The project's scope of work involves the construction of mixed use development on 5.41ha of land in Azaiba region of Muscat, Oman. The scope of work covers the construction of apartments, retail shops, offices, a hotel, a mall, a hypermarket and other associated facilities. The development will take place in Mwasalat’s Project Site A-1, a prime land in Azaiba. COMPLETION 30/12/2024
TERRITORY Manama, Bahrain CLIENT Tatweer Petroleum BUDGET $50 million DESCRIPTION The project's scope of work involves an installation of well head compression facilities, inter-connecting pipelines and flowlines, mechanical, instrumentation works and associated facilities in Bahrain. COMPLETION 30/12/2023 INFRASTRUCTURE
Muharraq Pearl Trail Facades Upgradation TERRITORY Muharraq, Bahrain CLIENT Bahrain Authority for Culture & Antiquities (BACA) BUDGET $16 million DESCRIPTION The project's scope of work involves the upgradation of facades of Muharraq Pearl Trail located at Muharraq, Bahrain. The project also includes conservation and rehabilitation of 8 historical buildings. COMPLETION 30/12/2023 RECREATIONAL
Muharraq Pearl Heritage Conservation Renovation TERRITORY Muharraq, Bahrain CLIENT Bahrain Authority for Culture & Antiquities (BACA) BUDGET $40 million DESCRIPTION The project's scope of work involves the upgradation of 175 facades along the pearling pathway, structural consolidation of old traditional buildings, replacement of existing doors, windows, shutters, shop signage with more compatible elements, repair of defective elements, removal or relocation of appurtenances such as electrical August 2021 | MEConstructionNews.com
TENDERS
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cables, piping, AC units, water meter boxes, electrical networks, painting, and plastering of the Muharraq Pearling Heritage Conservation in Muharraq, Bahrain. COMPLETION 30/12/2023
QATAR COMMERCIAL
Wadi Al Sail Office Building & Data Centre TERRITORY Wadi Al Sail, Qatar CLIENT N/A BUDGET $25 million DESCRIPTION The project's scope of work involves the construction of an office building, data center, a cafeteria, research units, parking facilities and associated facilities in Wadi Al Sail, Qatar. COMPLETION 30/09/2023 MIXED-USE
Al Waab City Central District (Phase 1) Package 4 TERRITORY Al Rayyan, Qatar CLIENT Nasser Bin Khaled & Sons Holding Company BUDGET $345 million DESCRIPTION The project's scope of work consists of a mixeduse development located at Al Waab City, Al Rayyan, Qatar. The project includes parcel 1 which involves gateway building and headquarters building; parcel 2 involves three residential towers, townhouses, retail area, public facilities, underground parking and clubhouses; scope also covers construction of 79 villas, 391 apartments, underground parking and associated facilities. COMPLETION 30/12/2023 INFRASTRUCTURE
North Semaisma Roads & Infrastructure Work (Package 2) TERRITORY Semaisma, Qatar
CLIENT Public Works Authority (ASHGHAL) BUDGET $40 million DESCRIPTION The project's scope of work involves the construction of roads and infrastructure works project in the North of Semaisma, Qatar. The scope also covers pedestrian walk, cycle track, groundwater drainage network and associated facilities. COMPLETION 30/12/2023
KUWAIT CORPORATE
Boubyan Bank Headquarters TERRITORY Kuwait City, Kuwait CLIENT Boubyan Bank BUDGET $80 million DESCRIPTION The project's scope of work consist of a 34-storey headquarters building (4B+G+2M+31) located at Kuwait City, Kuwait. The facility includes convention halls, office cabins, reception area, parking facilities and associated facilities. The design concept of the building was inspired by Boubyan Bank’s logo. The headquarters will be home to convention halls, public area, cafeteria, meeting rooms,
storage rooms, parking facilities, visitors zone, development of the landscapes and spacious offices. The design reflects the client’s requirements by providing a fully furnished office tower with a combination of maximum floor efficiency and a breath-taking design concept. COMPLETION 30/09/2024 INFRASTRUCTURE
Sheikh Salem Al Sabah Camp 132kV Overhead Lines TERRITORY Mutla’a, Kuwait CLIENT Kuwait Ministry of Electricity & Water BUDGET $125 million DESCRIPTION The project's scope of work involves the construction of a 72 km of new 132kV double circuit, three phase overhead
transmission line from RDTN ‘W’ substation to proposed Kathma ‘B’ 132/11kV substation in Mutla’a area using sing ACSR Zebra conductor per each phase of 400 sq.mm, 16km of one new 132kV double circuit overhead transmission line between existing Kathma ‘A’ substation and proposed Kathma ‘B’ substation using single 400 sq.mm nominal area ACSR Zebra conductor per phase and one OPGW conductor and associated facilities. COMPLETION 30/12/2023 EDUCATIONAL
Sabah Al Nasser Boys & Girls School TERRITORY Sabah Al Nasser, Kuwait CLIENT Kuwait Ministry of Higher Education BUDGET $30 million DESCRIPTION The project's scope of work consists of 2 school buildings located at Sabah Al Nasser, Kuwait City, Kuwait. The project also involves classrooms, a kindergarten, an elementary school, a middle school, a high school, administration facilities, auditorium, multipurpose halls, a playground, a gymnasium, a cafeteria, and parking facilities. COMPLETION 30/12/2023
MEConstructionNews.com | August 2021
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PROGRESS REPORT
Final update
ZāZEN One crosses 50% completion mark 86-unit residential project is on track to be handed over by January 31, 2022, developer says
D
ubai-based real estate developer ZāZEN Properties has announced that its first project, ZāZEN One, has crossed the 50% completion mark. Currently under construction in the Jumeirah Village Triangle (JVT)
August 2021 | MEConstructionNews.com
community, ZāZEN One is carving out niche community-centric living spaces set to finish construction by end of December 2021 and handover by 31st January 2022, a statement from the developer said. Consisting of 86 residences, the project offers a mix of one, two plus maids, and three-bedroom plus maids room units and a few exclusive duplex apartments. It has been built with sustainability in mind, the developer added. The statement noted significant progress, with key milestones achieved in the last few months, including compliance with Trakhees LEED Green Building regulations; ensuring lighting, control systems,
Close to completion The project’s is in the final stages of completion and will be finished in the second half of 2021.
25% Cost savings via solar energy solutions
water, operational sustainability, environment and internal air quality all meet the necessary requirements. The project also employs solar energy solutions, with panels on the rooftop, aiming to deliver 20-25% cost savings, which will directly impact the service charges to the end-user. “We are very happy to be advancing at this speed, typically not found with other projects in Dubai, and working in line with Dubai’s 2040 vision of sustainable urban development. Construction is currently at 50% and we are excited to start working on the interior elements ensuring the utmost level of quality and efficiency,” said Madhav Dhar, co-founder and COO of ZāZEN Properties.
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