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THE BUSINESS OF CONSTRUCTION

BIG PROJECT ME TAKES A LOOK AT HOW THE CONSTRUCTION INDUSTRY IS PULLING THROUGH THE COVID-19 PANDEMIC

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CONTENTS

May-June 2020

ANALYSIS

FEATURES

INSIGHT

The briefing

Comments

The big picture

Gavin Davids speaks to Rob Davies of depa Interiors about the fit-out specialist contractor’s plans and prospects for the Saudi Arabian market

Tenders

Progress report

Industry leaders discuss sustainability in the built environment and how the COVID-19 pandemic has hit the solar energy sector

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

Market report

News analysis

ProTenders report examines the KSA construction market and analyses the impact of COVID-19 on the sector

In profile Rob Davies

Site visit A Shining Light

Big Project ME profiles the world’s largest single solar plant and a benchmark for sustainable energy Noor Abu Dhabi

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

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

Alef Group says its Al Mamsha project in Sharjah has hit the 68% completion mark and will be delivered by the end of 2020

Industry experts outline the short- and long-term impacts of the COVID-19 pandemic to Angitha Pradeep

MEConstructionNews.com | May-June 2020

WELCOME

Introduction

Time to give technology its due

e’re now about two months into the COVID-19 pandemic and while the world has shut down around us, we’ve also seen that businesses and industries have begun to adapt and strive to find a way to work around the necessary restrictions imposed upon us all. For some, this has meant working from home; for others, it has meant operating on site with reduced capacities in terms of manpower and resources. However, what has been a prevalent theme throughout all our discussions this month has been the importance of technology. Whether it’s utilising the various web conferencing apps to communicate and coordinate with co-workers and project partners, or utilising the cloud to work on projects remotely, technology has been the lifeline that has allowed business to continue in a close to normal fashion as possible. It’ll be interesting then to see what happens when things calm down. Will we continue to maximise technology like we have been doing?

May-June 2020 | MEConstructionNews.com

Or will we revert to our tried and trusted ways? If there’s a silver lining to this terrible situation that we find ourselves in, it’s that we know that the technology is capable of handling all the things we’ve talked about it doing. Looking further into the future, it will be really interesting to see how the pandemic informs urban design and increase the imperative to design truly scalable smart cities, putting greater emphasis on public health and safety, and the need to for greater investment in public infrastructure. Returning to this issue, and I have to say, it was a really informative chat with Rob Davies, managing director of depa Interiors. As you’ll see, we’ve discussed a wide range of topics, and key amongst them is the fit-out contractor’s focus on the Kingdom of Saudi Arabia. With so many major projects underway in the country, this is the perfect time to establish a presence in that market – or at least it will be once the pandemic situation calms down. The potential of the Saudi market is enormous, as we’ve always known, but it finally appears to be living up to it. Enjoy the issue, stay safe and remember to keep social distancing.

Gavin Davids

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

Tafawuq provides technology driven integrated facilities management solutions to a wide range of clients in various sectors focusing on residential, commercial and mixed use communities

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CORONAVIRUS: LOOKING BEYOND THE PANDEMIC

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CONSTRUCTION

Block 7 Investments awards $1.8bn contract to Malaysia’s Serba Dinamik

Analysis: The driving force of JVs in Saudi’s mega infrastructure projects CONSULTANT

Coronavirus: Abu Dhabi Department of Economic Development to provide free COVID-19 tests

MACHINERY

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CONSULTANT

ADNOC terminates $1.6 billion Dalma gas contract with Petrofac May-June 2020 | MEConstructionNews.com

READERS’ COMMENTS

Fleet: More sustainability for the commercial vehicles business

It’s been interesting to read about how the construction world is reacting to the ongoing COVID-19 pandemic. As someone heavily involved in the day-to-day life of the sector, it’s been heartening to see that there are a number of organisations and companies looking to be proactive and innovative in this time of crisis. While the construction industry has always been slow to change, I think that given the terrible circumstances we’re now faced with, change will be inevitable. Like this article illustrates, we are likely to see a change in the way we design and evolve our cities, with connectivity and technology set to play an increasingly important role moving forwards. I’m fascinated to see how we learn and adapt in the coming months and years. We’ve talked for a long time about the capabilities and potential of Smart Cities, the Internet of Things and working in the cloud. Now is the time to see whether we can actually utilise these technologies to their fullest extent. Name withheld by request

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THE BRIEFING

Sustainability

Greening the Nation MIDDLE EAST

HE Dr Ali Al Jassim, chairman of Emirates Green Building Council, talks about sustainability in the built environment, their integrated approach to increasing awareness in the country and benchmarking programmes for the retrofit market May-June 2020 | MEConstructionNews.com

he UAE’s most significant focus in recent years has been on sustainability in the built environment. It has come a long way in implementing green growth plans and meeting the challenges of green buildings, under the framework of Vision 2021. As of May 2019, the UAE has 350 LEED-certified projects and 1,599 LEEDregistered ventures, which proves that there is a definite increase in sustainability awareness within the market. It is also evident through the growing uptake in green building certifications, the release of legislatures, and policy guidelines. However, sustainable development needs to be advocated by multiple

stakeholders, including the government, the public sector, academia, private companies, individuals and non-profits. “Over the past ten years, EmiratesGBC has been working closely with public and private entities intending to advance green building principles to protect the environment and ensure sustainability in the UAE,” says HE Dr Ali Al Jassim, chairman of Emirates Green Building Council (EmiratesGBC) and CEO of Etihad ESCO. “EmiratesGBC has been acting as a catalyst to change attitudes related to the sustainable built environment.” “Some of the key trends in sustainability and green buildings are net-zero buildings, retrofit, reduction of

Green principles Over the past ten years, EmiratesGBC has worked with public and private entities to advance green building principles in the UAE.

350 Number

of LEEDcertified projects in UAE

construction waste, off-site construction, zero-energy building design, and use of bio-degradable materials. Apart from that, Indoor Environmental Quality (IEQ) is another aspect that developers are focusing on.” IEQ refers to the quality of a building’s environment concerning the health and wellbeing of those who occupy the space. For instance, a quality indoor environment often results in enhanced occupant satisfaction, increased production and productivity, and lower operations and maintenance cost, among others. In addition to that, green building rating systems such as LEED, UAE’s Estidama and Al Sa’fat consider IEQ a key element in the design and construction of new buildings. We have launched significant initiatives – such as green building awards, events, technical training and workshops to further raise the environment quotient of the UAE’s construction sector, says Dr Al Jassim, who was elected to head the non-profit organisation earlier this year. Explaining EmiratesGBC’s approach to a sustainable built environment, he says that they have a comprehensive and integrated approach. “A year-round calendar of events that are focused not only on strengthening awareness about green buildings but also to encourage our members and the community to follow industry best practices.” “Moreover, under our Energy Efficiency Programme, we’ve created an online database that serves as a catalyst for all stakeholders to support the growing number of building retrofit projects.” “Our benchmarking programmes serve the retrofit market by evaluating the energy and water performance of existing buildings against comparable buildings in the UAE. In 2016, we published the first benchmarking report that covered the UAE’s hotels. Our second benchmarking report was in partnership with the Dubai Supreme Council of Energy to benchmark the energy performance of hotels, malls and schools in the city.” “This is part of Dubai’s commitment towards the Building Efficiency Accelerator, a programme under the ‘Sustainable Energy for All’ initiative led by the United Nations Secretary-

EmiratesGBC has been acting as a catalyst to change attitudes related to the sustainable built environment” General and funded by the Global Environment Facility. In total, we have benchmarked more than 150 buildings in the UAE,” explains Dr Al Jassim. However, he states that the UAE has always been at the forefront of innovation and sustainability. “The UAE government has set important policies and guidelines – the UAE Energy Strategy 2050 and Dubai Integrated Energy Strategy – targeted at reducing the utilisation of water and energy by 30% by 2030.” Dr Al Jassim, nonetheless, adds that changing behaviours and set pattens are always a challenge when it comes to barriers and that it applies to any sector. However, he asserts that the UAE government has established

policies and frameworks to guide and direct the private sector and provided roadmaps to achieve the overall sustainability goals of the nation. “The UAE is a young nation – and discussions on sustainable built environments have gained momentum only in the past decade. There is still a perception that green buildings are costlier and changing this will take concerted effort and time. EmiratesGBC has diligently tried to educate and engage stakeholders in the past few years to drive this agenda further.” He adds that EmiratesGBC has also partnered with Herriot Watt and the American University of Sharjah to encourage a culture of sustainability in the built environment. “At the university level, annually, we present an award for the best research in green buildings by students. We also provide exclusive discounted memberships to all full-time university students in the UAE. This membership provides them with access to technical training and programmes held by us as well as other networking opportunities. It is imperative to engage them in the march towards sustainability- the future of which lies in the hands of the next generation.”

MEConstructionNews.com | May-June 2020

THE BRIEFING

Uncertainty in Green Energy MIDDLE EAST

Laurent Longuet, CEO of SirajPower, shares his views about the impact of COVID-19 on the solar energy sector in the region and discusses how the UAE has been quick to respond to mitigate its effects

May-June 2020 | MEConstructionNews.com

OVID-19 and its far-reaching social and economic effects will prove to be an unprecedented challenge on the region’s renewable energy sector. Analysts from S&P Global Ratings predicted in March that they believe the impact of the COVID-19 pandemic has likely pushed the world economy into recession, dragging full-year GDP global growth down to just 1-1.5%. The pandemic will cause different challenges in different sectors; however, it will have a limited effect on the solar energy sector under production, says a senior official at SirajPower, a turnkey solar energy solutions provider in the UAE.

Laurent Longuet, CEO of SirajPower, tells Big Project ME that there is already a regulatory framework encouraging the rapid development of solar energy in the UAE, especially in Dubai. “We are fortunate to live in a country governed by visionary leaders who have not waited for a crisis to erupt to encourage the development of solar energy,” he says. Solar energy systems mostly run on their own with limited need for human resources, at least for some time. However, the renewable energy sectors are as exposed to the ongoing disruptions caused by COVID-19 as any other sector in the market. “To date, the government has taken mature decisions to mitigate the impact of COVID-19 and support

Mature decisions Longuet has praised the UAE’s mature decisions to mitigate the impact of COVID-19 and support the economy.

48%

Projected declines of US solar photovoltaic installations

the economy, which is being achieved in a controlled manner. Meanwhile, market maturity and coordinated actions from the government and the business community have proved essential in keeping industries and residents optimistic,” says Longuet. This is a new time for resilience, and the UAE has demonstrated its capacity to overcome challenges like it has done in the past, he notes. While the impact of COVID-19 on the Middle East solar market is still ambiguous in terms of exact figures, Morgan Stanley’s clean technology analysts have projected declines of 48%, 28% and 17% in US solar photovoltaic installations in the second, third and fourth quarters of 2020, respectively. “Although the solar energy sector will be challenged in the next few months, we believe that it is the most abundant and cost-effective source of energy, and will eventually get out of the crisis reinforced. Governments and private companies will be further encouraged to find the most competitive source of energy, and by far solar is the cheapest way to produce electricity in the region,” notes Longuet. He insists that globally, all economic actors will try to be more resilient towards similar situations and that they will be encouraged to find local or regional solutions to secure their main supplies wherever possible. On procurements and supply chain, he comments that they have not observed any significant disruption in the supply of raw materials and components. “The UAE Government has taken positive actions to keep the logistics sector active even during this challenging environment. Once the crisis is behind us, most private companies regardless of location, will face similar challenges and will aim at coping with the impact.” “Commercial and industrial businesses will look into reducing their operating costs and limiting their cash expenses. This will allow them to resume their business and brave the financial crisis ahead. In this scenario, given the global market conditions, solar energy enables them the opportunity to get cheap electricity.”

Market maturity and coordinated actions from the government and the business community have proved essential in keeping industries and residents optimistic” “Therefore, the anticipation is that private sector players will further look at innovative models such as the leasing scheme; something which we already offer in the market and has proved successful. In such a context, the leasing model will also be helpful when it comes to easing energy expenses. This will allow private companies to reduce their electricity bill in a significant manner without any upfront investment.” “This is a model we have been promoting for many years, and we strongly believe that it will contribute in mitigating the economic impact of the crisis on our clients

and other companies embracing renewable energy,” Longuet adds. Official reports said that the planned public opening of commercial tariffs for the 1.5 GW Al Dhafra photovoltaic solar IPP project was postponed from its expected date. Furthermore, analysts are suggesting that many projects will be held-up or shelved in the coming months as authorities look for ways to contain the pandemic. Longuet continues: “With the start of a new decade, 2020 was supposed to be a big year for climate action and renewable energy. With the current global challenge, we are seeing serious growing calls to shift to a green economy. COVID-19 may have shaken the world and its priorities, but sustainability will continue to dominate debates.” “We are fortunate to live in a country like the UAE, where sustainability has always been at the forefront of the national agenda and its economic diversification objective. The country has set many ambitious goals and achieved many significant milestones. It has even started planning the next 50 years and has placed sustainability as the core of its new strategy. Hence, we are in good hands, and we are confident that we have good days ahead of us,” he concludes.

MEConstructionNews.com | May-June 2020

THE BIG PICTURE

01 USA

03 BRAZIL

US manufacturer works on quick-to-build containment walls

Voltalia begins construction in Brazil

McCain Manufacturing, a US-based manufacturer of modular walls, has started manufacturing quick-to-build containment walls in response to the COVID-19 pandemic. The new containment walls are made with an antimicrobial coating, and are being built at the company’s headquarters in Vista, California. The dust-free walls can be produced within minutes and installed within hours. They can also be quickly disinfected without endangering the integrity of the surface. Two installers can build a 2.4m wide by 4.8m long containment room within half-an-hour.

02 USA

AECOM supports USACE in building a temporary medical facility AECOM has announced that it is supporting the U.S. Army Corps of Engineers (USACE), New York District, with design and construction management services to transform a university facility on Long Island into a temporary medical facility with more than 1,000 beds. AECOM began to support this essential work on Monday, March 30. The alternate care facility at the State University of New York, College at Old Westbury will help ease the strain on existing medical facilities.

French renewable energy company Voltalia has started the construction of a 150MW wind farm called VSM 3 in Serra Branca, Brazil. The first turbines at the wind facility are expected to become operational by the fourth quarter of 2020 while the project is scheduled to begin full operations by the second quarter of 2021. The company noted that the energy generated by the wind power facility would be supplied to a Brazilian utility under a 20-year power sale agreement. Voltalia will hold 90% of the stake in the facility while a local partner will own the remaining 10% stake.

04 UNITED KINGDOM

06 ALGERIA

UK’s largest arena contracts BAM

Algeria completes construction of pipeline project

BAM has been selected by US developer Oak View Group (OVG) as the preferred construction partner for the $434 m indoor entertainment arena in the UK. A pre-contract services agreement with OVG has been signed to build the 23,500-capacity entertainment arena. Expected to be the largest of its kind in the UK, the new sustainable arena will have the flexibility to accommodate multiple event types.. OVG has also selected architecture design firm Populous as the principal architect and designer for the venue, which is planned to be built in the Eastlands district of Manchester.

May-June 2020 | MEConstructionNews.com

05 SWEDEN

Consortium wins Swedish railway contract A consortium comprising of Sweden-based NCC and Spanish company Obrascon Huarte Lain (OHL) has received the contract to build a new section of railway between Lund and Arlöv in Skåne, Sweden. The value of the awarded contract is nearly $78.4m. Under the terms of the contract, NCC and OHL consortium will be responsible for the construction of two new tracks on the western side of the current tracks along the 3km-long Flackarp–Lund section. The expansion project would increase the number of trains passing through this section each day from 450 to 650.

Algeria’s state-owned Sonatrach oil and gas company has completed the construction of the GR7 gas pipeline project. This pipeline, an extension of the GR5 pipeline, connects Hassi Mouina Sud & Nord and Hassi Ba Hamou, the country’s new southwest oil fields to Hassi R’Mel, the National Gas Dispatching Centre at a length of approximately 344 km. With a capacity of 4 billion cm3/year, this gas pipeline is expected to raise the natural gas capacity of Sonatrach’s system Reggane-Hassi R’Mel (GR5 Pipeline) from 9 billion cm3/year to about 13 billion cm 3/year.

THE BIG PICTURE

08 MADAGASCAR

Madagascar receives $4m for water and electricity projects 07 SUDAN

Egypt, Sudan joint electricity grid commence operation The Egypt, Sudan joint electricity grid has officially commenced operation, the Egyptian cabinet has announced. It said that the grid operation is the first stage of electric interconnection with Sudan through which Egypt seeks to provide the neighbouring state with electrical capacities up to 70MW. The electricity interconnection project is aimed at developing infrastructure in both Egypt and Sudan. It is expected to act as a precursor to economic exchange in the fields of energy and trade. Sudan committed to releasing about $20m of the $31.74m total cost for the grid, which will cover 1,000km.

Madagascar has received $4m from the Trust Fund for Development, as part of a partnership between the Russian Federation and the United Nations Development Programme to implement water and electricity projects in three regions of the country. The fund will help setup four mini-solar power plants and will supply 200 photovoltaic kits to other remote localities. The projects will reduce water shortages and improve access to electricity. They will also support sustainable agricultural production and the establishment of processing zones in six rural communities.

09 SOUTH AFRICA

South Africa to start construction of offshore supply base South Africa is expected to start the construction of an offshore supply base in the Port of Saldanha Bay, in Q4 of 2020. This is after a series of lease agreements were completed between three key stakeholders involved in the project â&#x20AC;&#x201C; Saldehco; Transnet National Ports Authority; and Saldanha Bay Industrial Development Zone. Upon completion of design development and necessary statutory approvals, this will pave the way for providing marine services to vessels within the port and South African waters as well as clients requiring a logistics base for offshore activities and fleet support.

MEConstructionNews.com | May-June 2020

THE BIG PICTURE

17 15

10 11

10 EGYPT

12 BAHRAIN

Egypt postpones move to new administrative capital

Kanoo Group to build mosque, multi-purpose hall

Egyptian President Abdel Fattah al-Sisi has postponed the moving of civil servants to a planned new administrative capital city to 2021 from 2020 as well as the completion date of other large construction projects. The first group of civil servants was to be transferred to the government district in the still under-construction new administrative capital in June. However, it has been extended due to the circumstances and repercussions of the process of combating the spread of the new Coronavirus either at the national level or globally.

May-June 2020 | MEConstructionNews.com

11 SAUDI ARABIA

ACWA Power awards contract for desalination plant Abengoa along with its partner SEPCO III has been selected to build the Jubail 3A reverse osmosis desalination plant in Saudi Arabia. Acwa Power awarded the contract to construct the 600,000mÂł/d desalination facility. Under the deal, Abengoa will be responsible for the engineering, supply and construction of the plant which is expected to be the second-largest facility with reverse osmosis technology in Saudi Arabia. The Jubail 3A reverse osmosis desalination plant will ensure the supply of drinking water to Riyadh, Qassim and Eastern Provinces.

Bahrain-headquartered, Yusuf bin Ahmed Kanoo Group has signed a construction agreement with the 12.2 km2 master-planned Diyar Al Muharraq project, to sponsor the construction of a mosque and a multipurpose hall. Construction work on the mosque and hall will commence in two months. Diyar Al Muharraq is an archipelago of seven man-made islands. Located off the shores of Muharraq, the kingdomâ&#x20AC;&#x2122;s historic former capital, construction is well underway on the 12.2sqkm masterplan development.

THE BIG PICTURE

14 OMAN

Oman to hire expat workers in construction sector 13 UAE

Expo 2020 Dubai committee explores postponing event A virtual meeting of the Expo 2020 Dubai Steering Committee has collectively agreed to explore with the BIE, the World Expo governing body, the possibility of a one-year delay to the opening of Expo 2020 Dubai. The talks over postponing Expo 2020 Dubai had been the result of ongoing consultations on how the COVID-19 outbreak will impact global preparations. A final decision on postponement can only be made by the BIE’s Executive Committee and the General Assembly. Article 28 of the BIE Convention stipulates that a change of dates requires a two-thirds majority vote.

Oman’s Ministry of Manpower has permitted some companies to hire expatriate workers provided they meet a set of criteria, and the employer is committed to the Omanisation percentages established in the factory. The exception is made to SMEs who are full-time employers and are registered with the Public Authority for Small and Medium Enterprises Development and insured with the Public Authority for Social Insurance. Excluded from this decision are the establishments managing government projects, excellent grade companies and firms that employ 100 or more workers.

15 PAKISTAN

Pakistan to receive $700m from World Bank The World Bank has approved $700m additional financing to help Pakistan generate low cost, renewable energy to provide affordable electricity to its users. The additional funding will be used to complete the first phase of the Dasu Hydropower project, which will install 2,160 MW capacity along the Indus River. Stage two will double the installed capacity to 4,320 MW – making it the largest hydropower plant in the country. The powerplant will provide its electricity in the summer to reduce blackouts when the demand is higher.

17 JAPAN

Toshiba signs solar project agreement with Japan 16 CHINA

China to build $2.5 bn solar panel manufacturing plant China-based solar manufacturer GCL System Integration Technology is planning to build a solar panel manufacturing plant with an investment of $2.5bn. Expected to be built in the Hefei province, the new factory will have the capacity to manufacture 60GW of solar panels on an annual basis. The new factory, which is expected to have the world’s largest module production capacity upon completion, will be equipped to produce 210mm high-efficiency modules. As per the deal signed recently with the Government of Feidong County, GCL-SI will build the project in four phases.

Toshiba ESS has received an EPC services order for the construction of the Onikoube Solar Power Plant, in Japan, which will have a generating capacity of 147 MW. The plant is scheduled to go into operation in December 2022. Onikoube Solar Power Plant is planned for construction on the 1.56sqkm site of an abandoned golf course. The construction plan requires special planning due to the frames being closer together than is conventional, while the solar panels will be installed at a steeper angle, which will enable the installation of 362,960 solar panels.

18 AUSTRALIA

Acciona to build its largest wind farm in Australia Acciona has announced that it will build its largest wind farm in Australia, the MacIntyre complex in Queensland, which will have a total capacity of 1,026MW. The project will drive the Queensland government’s decarbonisation strategy and mobilise total investments of $1bn. Acciona has reached an agreement with CleanCo, Queensland’s newly created renewable state utility, to participate in the project as the owner of a 100MW wind farm within the complex. In addition, CleanCo will acquire annual production of 400MW from Acciona for ten years through a power purchase agreement.

MEConstructionNews.com | May-June 2020

Al Garawi Group

Al Garawi Galleria, Al Orouba-King Fahad Highway Junction Olaya P.O. Box 41122, Riyadh 11521, Saudi Arabia Tel.+966 11 4196096 / 4195058 Fax. +966 11 4196101 / 4196103 Email: Info@algarawigroup.sa / www.algarawigroup.com

Al Garawi Group an authorized distributor of the following licensee for Saudi Arabia, U.A.E., Bahrain, Qatar, Oman, Jordan, Lebanon, Kuwait and Yemen. Wolverine World Wide, the global footwear licensee for Caterpillar Inc.

PREMIER WR TX CT Medco

P.O. Box: 17301, Jebel Ali, Dubai, U.A.E. Tel.: +971 4 881 8821 Fax: +971 4 8818944, Showroom: Al Kwakeb Building, (B-Block) Sheikh Zayed Road, P.O. Box: 2904, Dubai, U.A.E Tel.: +971 4 343 7400 / 343 7500 Fax: +971 4 3437600 Email: medco@algarawigroup.sa

MARKET REPORT

Industry outlook

KSA Construction Snapshot â&#x20AC;&#x201C; Q2 2020

SAUDI ARABIA

ProTenders analyses how the outbreak of COVID-19 will impact the KSA construction landscape

he outbreak of COVID-19 around the world has impacted the Middle East construction market and has further impacted construction projects locally. For instance, significant impact on the global supply chains for goods, materials and equipment is expected due to a substantial

May-June 2020 | MEConstructionNews.com

decline of output in Chinese manufacturing; as well as export and logistics issues leading to substantial delays in construction projects. In a worst-case scenario, this could result in the closure of project sites. Further delays may consequently impact on tender announcements or awards, delays on the planned construction schedule, a shortage of subcontractors and materials, and the termination of contracts to control expenses in the Kingdom of Saudi Arabia. More broadly, it remains to be seen what impact the economic effects of COVID-19 will have on KSA businesses, particularly in light of the dramatic fall in oil prices. A fall in the market may have repercussions on liquidity and cash flow through the construction sector. Despite recent challenges faced by the construction sector attributed to low oil prices which slows the economy, there is an expectation for a more positive outlook and

increased demand in the sector in Q4 2020. At a high-level, we can expect broad-scale normalisation in Q3-Q4 2020, but this entirely depends on the tipping point of COVID-19. KEY POINTS: 1. Saudi Arabiaâ&#x20AC;&#x2122;s contractor awards across the building, infrastructure and oil & gas sectors are forecast to reach $16.3 billion. 2. The infrastructure & energy sector is expected to register the highest contractor awards followed by the Urban buildings and infrastructure sectors. 3. The Infrastructure sector is the largest contributor to the construction sector with 2001 active projects valued at $452.4 billion. The urban construction is the second largest with 3,103 projects worth $435.7 billion, followed by Oil & Gas, with 249 projects valued at $209 billion.

MARKET REPORT

VALUE OF PROJECTS BY STATUS ($BN)

ONGOING PROJECTS BY SECTOR ($BN)

1,096.9 Total Under Construction

468.0

Design

236.0

Tender

159.0

Oil & Gas

159.9

123.2

233.6

UPCOMING PROJECTS BY SECTOR ($BN)

Infrastructure

Oil & Gas

Planning

Infrastructure

86.0

292.5

468.3 Total

628.7 Total

Urban Buildings

185.2

250.5

At a high-level, we can expect broad-scale normalisation in Q3-Q4 2020, but this entirely depends on the tipping point of COVID-19â&#x20AC;?

7 Zuhair Fayes Partnership

Worley Parsons Engineering

Saudi Arabia Ministry of Transport

Technip

Larsen & Toubro

Saudi Consult

Saudi Consolidated Engineering Company

AECOM

RCJY

120

Saudi Electricity Company (SEC)

Saudi Arabia Ministry of Housing

Saudi Aramco

150

SNC Lavalin Group

TOP 5 CONTRACTORS BY VALUE ($BN)

Saipem S.p.A.

TOP 5 CONSULTANTS BY VALUE ($BN)

Saudi Bin Ladin Group

TOP 5 DEVELOPERS BY VALUE ($BN)

CONSTRUCTION CONTRACT AWARD FORECAST Q2 2020 ($BN) Infrastructure

8.7 Urban Buildings

Oil & Gas

10.0

8.0

6.0

4.0

1.6 2.0

Source: ProTenders

6.0

MEConstructionNews.com | May-June 2020

ANALYSIS

COVID-19

COVID-19 – The Waiting Game MIDDLE EAST

Industry experts give Big Project ME their opinion on the short- and long-term impact of the COVID-19 pandemic on the construction and real estate sector May-June 2020 | MEConstructionNews.com

he COVID-19 pandemic and its immediate impact on the construction and real estate industry reflects the economic disruption that vital businesses globally and regionally are facing. Though the exact effects are unknown, any disruption to real estate markets are likely to be a near term delay or a kneejerk reaction, rather than a fundamental downturn over the long term, predicts real estate advisory firm Savills.

“The impacts of current restrictions imposed to tackle the pandemic is not just limited to the construction and real estate sector but also on all the ancillary industries that support this sector. “Supply chain disruptions in any one industry can have a ripple effect on the overall economy,” says Swapnil Pillai, associate director, Research Middle East at Savills. “In the short term, there is likely to be minimal impact on

ANALYSIS

Although construction sites are still operational, due to the rising cases in the UAE, the government may order a complete suspension of work. This will affect labour and logistics further and result in handover delays” ongoing construction activity due to the existing inventory levels, but a prolonged lockdown will result in the delay of raw materials thereby impacting project timelines and completions.” On the other hand, he states that deteriorating investment confidence due to looming threats on employment and economic growth will have a short-term impact on the construction and real estate sector. Similarly, Saleh Abdullah Lootah, CEO of Lootah Real Estate Development, acknowledges that the global situation has led many businesses in different sectors to shut down, resulting in significant revenue loss. “With COVID-19 disrupting the supply chain, there are delays when it comes to logistics in the trade sector as well as job cuts for those who can’t sustain their operational expenses. Although construction sites are still operational, due to the rising cases in the UAE, the government may order a complete suspension of work. This will affect labour and logistics further and result in delays in the handover of properties.” Pillai made a similar note that this current situation may lead to a slowdown in project completions and developers may defer the launch of new projects.

Analysing the situation, Ujjwal Goel, managing director of La Sorogeeka Interiors - a vertical at Teraciel Group, weighs in that the over-reliance on single territories for the global supply chain will have a significant impact on the construction industry. “China and Italy contribute a large part to the hospitality, residential and commercial projects in terms of supplying luxury interior materials. We will see a change in perception and procurement strategies as there will be an inevitable slow down and backlog as factories revive operations.”

Supply disruption Saleh Abdullah Lootah says that the global situation has disrupted the supply chain, which will hamper project deliveries.

Minimal impact Swapnil Pillai of Savills, says that in the short term, there is likely to be minimal impact on ongoing construction activity.

“Moreover, countries such as India has also closed a lot of its steel plants, whose resumption will be time-consuming, while the sudden surge in global demand as life resumes to normal will put added pressure on these industries,” he asserts. But are all long term ramifications on the regional construction and real estate industry at a disadvantage? Pillai believes differently. “Fundamentally, the demand for real estate in the UAE is strong and offers good value across select developments/ micro-markets. Investors can take advantage of projects offering sale and leaseback options, discounted pricing and other investment incentives during this time.” “The upfront financial requirement to buy property has reduced as individuals now have an additional 5% as part of the relaxed LTV norms. The Abu Dhabi government has also waived off (for the entire year) real estate registration fee of 2%. As a result, transaction activity by residents may increase as individuals who are currently renting will find it more affordable and lucrative to purchase their property.” Moreover, he believes that the slowdown will help to balance the supply/demand dynamics, leading to a more mature and stable real estate market.

The demand for real estate in the UAE is strong and offers good value across select developments. Investors can take advantage of projects offering discounted pricing and other incentives during this time” MEConstructionNews.com | May-June 2020

ANALYSIS

On this note, Lootah agrees with Pillai and points out that a decrease in property rates, interests and deposits will reignite investors and first-time buyers. On the flip side, he says that this will make managing cash flows a challenge for developers and institutional landlords. Delving deeper into the issue, Lootah says the real estate industry can benefit from the comprehensive stimulus packages that are offered by the government. “This includes the easing of financial responsibilities of the company and relaxation of renewal for licences by cancelling the 25% down payment for the instalment of government fees. It has also exempted permit fees for new sales and offers.” “Another benefit for the sector is the reduction in water and electricity bills for a period of three months; company funds saved from this directive can be allocated to other expenses,” the developer states. To this end, Goel comments that the industry will require a government stimulus to ensure that at least “last mile financing” is provided for projects that are running late due to a cash-flow crisis. However, it is equally important that governments take a severe role in ensuring completion of off-plan projects. The impact of default on completions may create a downward

Going forward, stakeholders in the industry may wish to decrease supply chain disruption risks by placing greater scrutiny on where suppliers obtain materials to ensure geographical diversification” Revisiting contracts Joanne Strain of King & Wood Mallesons Dubai, says that the pandemic may lead many stakeholders to revisit their contracts.

Disaster strategy Ujjwal Goel of La Sorogeeka Interiors says that orangisations need to have a disaster management strategy to survive the crisis.

Each organisation needs to develop a disaster management strategy. There should be engineering and procurement phases in place for work to go on even if teams are put under lockdown” May-June 2020 | MEConstructionNews.com

spiral by driving consumer sentiment downwards and a further loss of sales for developers, he explains. Pillai adds to this: “While some sectors may witness consolidation, others, such as warehousing will be driven by an increased appetite for e-commerce, and food delivery (cloud kitchens) will observe strong demand in the medium to long term.” STANDARDS AND REGULATIONS From a legal standpoint, the outbreak of COVID-19, its subsequent pandemic classification and significant

economic impact may have led many stakeholders to revisit their contracts, says Joanne Strain, partner at King & Wood Mallesons, Dubai. “As projects stall or slowdown, contractors and developers are, where possible, quickly asserting “force majeure” clauses. Such clauses typically seek to exempt contracting parties from liability where performance becomes impossible due to a non-foreseeable event beyond their control.” “Force majeure contractual clauses are commonplace in UAE commercial contracts and will be applied in accordance with their terms. The FIDIC Red Book (1999) refers to “force majeure”, a nonforeseeable, exceptional event or circumstance beyond a party’s control, which could not reasonably have provided against nor avoided and which is not substantially attributable to the other party.” She emphasises that force majeure is a well-established concept under the UAE law. “Article 273 of the Civil Code provides, as a mandatory provision of law, that if performance becomes impossible owing to force majeure, the corresponding obligation is extinguished and the contract cancelled or cancelled in part if part performance remains possible.”

ANALYSIS

Strain observes that in the future, more contracts can be expected to expressly provide for whether pandemics will qualify as a force majeure event, and what the specific consequences will be for the contractual parties. “Contracts may seek to deal specifically with the consequences of site closures, labour shortages and delays in receipt of materials, due to circumstances beyond either party’s control, and to consider, at the outset, which party should bear the associated risks.” “Going forward, stakeholders in the industry may also wish to decrease supply chain disruption risks by placing greater scrutiny on where suppliers obtain materials to ensure geographical diversification, with correlated contractual provisions to ensure supply chain transparency.” In order to protect themselves, contractors and developers should document the steps taken in response to COVID-19, including associated costs, Strain adds. “This extends to complying with legal or regulatory changes and steps taken to mitigate losses, which could become crucial in any future litigation proceedings. Any applicable insurance policies, which may cover business interruption events, should also be reviewed, along with provisions for notification of claims.” Coming back to how the regional construction and real estate industry can be better prepared for the future, Lootah says. “Leaders can focus on implementing long-term plans for more resilient building infrastructures—those that will be equipped to face future outbreaks. These include creating contingent designs

that may act as preventive measures, as well as observing not just quality living, but a healthy and hygienic environment for its investors and community members.” Goel expands on this: “Each organisation needs to develop a disaster management strategy. There should be engineering and procurement phases in place for work to go on even if teams are put under lockdown. Additionally, personal protective equipment (PPE) needs to undergo an evolution to allow our teams and us greater protection from airborne or highly contagious viruses.” “In summary, we will be better prepared for such situations in future through innovations in PPE, investments and evolution of mass sanitisation methods for large workforces entering/exiting sites and an overall change in strategy for organisations to manage health, safety, hygiene of sites, accommodation and offices,” he elaborates. Pillai also states that banks will likely step-up their exposure to real estate and the construction sector, a spike in re-mortgage activity may also be witnessed in the coming months due to attractive borrowing rates. He concludes: “The UAE Government has been very proactive. There have been various measures implemented to ensure business continuity while also ensuring that the current situation is contained. “Going forward, private sector participation would be key to address any industry pain-points and creating a road map for speedy economic recovery. Companies should also start business risk planning and implementing strategies and technologies to ensure business continuity.”

CONTACT Mary Jo Balve Global Trade Show Services, Inc. 33 Prince Place, Little Silver NJ 07739 T +1 732 933 1118 mjbalve@globaltradeshow.com

MEConstructionNews.com | May-June 2020

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IN PROFILE

Rob Davies

The Perfect Fit

BIG PROJECT ME SPEAKS TO ROB DAVIES, MANAGING DIRECTOR OF DEPA INTERIORS, TO FIND OUT HOW THE FIT-OUT SPECIALIST CONTRACTOR PLANS TO TARGET THE SAUDI ARABIAN MARKET, WHILE ALSO DELVING INTO THE IMPACT THE ONGOING CORONAVIRUS PANDEMIC IS HAVING ACROSS THE REGIONâ&#x20AC;&#x2122;S CONSTRUCTION LANDSCAPE

| MEConstructionNews.com | MEConstructionNews.com March 2020 May-June 2020

MEConstructionNews.com | May-June 2020

IN PROFILE

t is no secret that the Kingdom of Saudi Arabia is the GCC region’s biggest construction market and with the Kingdom refocusing its national economy in line with Vision 2030, there has recently been a strong emphasis on developing several high-profile hospitality, commercial, residential and retail construction projects across the country. A by-product of this exponential growth is an unprecedented demand for interior and fit-out solutions in the Saudi Arabian marketplace. Not only does this include hospitality-focused projects, but also takes in leisure destinations and institutional buildings and structures vital to the socio-economic landscape of the country. According to Ventures Onsite, the interiors industry for the residential sector is valued at $3.6 billion, followed by hospitality with $2.1 billion, commercial real estate at $1.1 billion, retail at $872 million, hospitals at $410 million and education, at $339 million.

Saudi in focus Rob Davies says that depa Interiors intends to focus on KSA in the near future due to the diminishing gains that can be achieved in the UAE construction sector.

$3.6bn Value of KSA’s residential interiors industry

Due to the potential of the KSA market, specialist fit-out contractors and consultants are eying the lucrative space within the market with keen interest. One such company is the internationally renowned fitout contractor, depa Interiors. The Nasdaq Dubai-listed contractor has been a active participant in the Saudi Arabian interiors sector for many years, having been awarded the King Abdullah Petroleum Studies and Research Centre by Saudi Aramco in 2011. In fact, the company was picked by Zaha Hadid Architects for the project because of its capabilities, which include extensive BIM expertise and experience.

Not only has the company been operating successfully in Saudi Arabia, but it has also contributed extensively to the country’s construction industry, introducing several new technologies such as BIM 360 and maximising the use of the Internet of Things. However, given the scale of operations in the Kingdom, depa Interiors has ramped up its focus on the country and despite the ongoing coronavirus pandemic engulfing the world and disrupting operations, the company is still banking on the Kingdom remaining the GCC’s most promising market. “2020 got off to a great start with the award of five cinema projects, and more recently, the public areas of a five-star hotel project,” says Rob Davies, managing director of depa Interiors. “Our main focus this year was to break into the cinema market in KSA given the numerous opportunities there and the comparatively diminishing attractive opportunities within the Emirates. “While there are some fantastic opportunities in the Emirates, the gains that can be achieved there have generally reduced considerably due to the stress within our competitors. This situation is further exacerbated by the number of contractors that are able to pay on time or at all. The challenges we face always revolve around cash collection. This remains a significant challenge, even for certified amounts.”

Hopefully, we can steer the market away from the current prevailing norms. This is not simply the removal of scope gaps, but also the use of technology to resolve buildability issues prior to us arriving on site” May-June 2020 | MEConstructionNews.com

IN PROFILE

Davies adds that the current coronavirus pandemic could potentially exacerbate the situation, despite depa having had some success in collecting cash through the first quarter of this year. He also points out that the resolution of disputes has had an impact on the company’s KSA projects, as unfortunately, these issues take up a significant amount of resources to resolve and often distract from ongoing projects. “Numerous projects suffered from delay in 2019 – probably more so than any other year. The issues we’ve faced have generally been those of access, being delayed by other trades, and changes late in finishing stages.

While this has been a significant problem within the Emirates, it has had a knock-on effect on every project in Saudi Arabia, where we are now incurring costs to resolve these issues. “That is why we have, over the first two months of 2020, established a discreet team within the KSA businesses so as to ensure that we have the correct people, with the correct experience, in place to successfully deliver the many cinema opportunities present in the Kingdom. This could be a sizeable proportion of KSA revenue over the coming years,” he explains. Furthermore, Davies points out that there are numerous other significant projects that interest depa Interiors,

2020

depa has built up its team in KSA in 2020

The right projects depa has put a dedicated team in place in KSA to ensure that the correct people are in place to secure the right type of projects for the fit-out specialist.

such as the Red Sea Development, the reinvigorated KAFD and further opportunities on Riyadh Metro, where the fit-out contractor is working on two metro stations – KAFD Metro Station and Olaya Metro Station. “depa have spent the last year talking to developers and project managers to ensure that we are well placed to secure the right projects that can deliver a reward commensurate with the risk. The importance of KSA is not simply short term – it has the opportunities to become a very significant part of our revenue stream,” he asserts. “The entertainment and leisure sector is booming within KSA given the recent changes in Law. The pipeline

MEConstructionNews.com | May-June 2020

IN PROFILE

of projects, with the developers with which we have relationships with, is significant enough that we have, as mentioned, formed a dedicated cinemas team. We are also building that cinema client base, and this will hopefully give us a healthy pipeline of work over the next few years. “There are numerous opportunities, however the project values are relatively small and the programs aggressive. Hence the need for a dedicated team to ensure, to the extent possible, a continuous flow of work. Winning our first cinema contract of five individual projects spread across Saudi Arabia, comprising of 36 screens, a total contract value in excess of $110 million, with each project having a duration

of no more than six months, is the culmination of more than six months of research and hard work by both the business development team and the estimation team, as well as with significant input from engineering. He adds that while the project may look relatively straightforward, it is actually quite challenging and needs careful management as many of the screens are being constructed within live malls and include structural and MEP works. “You then need to factor in a maximum duration of six months, including procurement, design work, construction, testing and commissioning. It’s no easy ride, especially when you consider

May-June 2020 | MEConstructionNews.com

Skilled labour The company employs a highly skilled labour force that utilises the latest construction technology.

Number of manufacturing facilities

there are multiple projects progressing in parallel.” Furthermore, he points that working in Saudi Arabia has come with its own idiosyncratic challenges, which serve to highlight how different it is to its neighbour, the UAE. Chief amongst these differences is the fact that clients in the Kingdom tend not to, as a general rule, tender fit-out and other major packages as provisional sums, as is the norm in the Emirates. Instead, projects are awarded to main contractors on a turnkey basis, which then limits the available amount of work a fitout contractor can do as many main contractors will look to break the work down into its constituent parts, he explains.

IN PROFILE

However, Davies admits that things are slowly changing, with a number of contractors beginning to award full fit-out packages, particularly for high-end projects. “We also have KAFD, where we are looking at a number of prestigious offices and hotels. We’re targeting to secure two of these projects by the half year mark. These include high-end government offices and five-star hotels,” he says, though he admits that the award of these projects may be delayed due to the impact of coronavirus pandemic sweeping the globe. “This may well cause us other issues as we have two hotel projects completing within the next two months and it would be nice to have an easy transition from one project to another. As usual, we will hope for the best, but plan for the worst!” Having operated in Saudi Arabia for a number of years, Davies says depa is familiar with the nuances of the market, particularly with regards to sensitive issues such as Saudisation and the difficulty of getting Saudi residential permits. Despite this, he believes that the main risk contractors will face when working in the Kingdom will be resource shortages, as he explains. “Try to get a flight in on a Sunday morning. If you manage to get a seat, you will be surrounded by design and project management consultants.

Assuming that all the projects go ahead, these will be followed by a wave of construction staff, a shortage of skilled labour, and potential price increases from specialist contractors. “Having an established supply chain in KSA is key to delivery of high-end projects. Whilst this may seem like an obvious statement, when you compare the markets of Saudi Arabia and the UAE, the latter is far more established and understands the requirements of a world class finish. The Saudi market is not as established and requires far more attention and supervision to ensure that the finished product is acceptable,” he states, adding that

$2.1bn Value of KSA’s hospitality interiors business Safety first depa Interiors is prioritising employee safety during the COVID-19 pandemic and will assess the risk before taking on projects, Davies says.

with a number of luxury hospitality brands targeting the Kingdom, quality will need to increase dramatically. He predicts that this will necessitate the transfer of employees, and their expertise, to work with key local subcontractors, and that the transfer of knowledge this would generates could help increase the quality of the finished products. He also adds that he believes companies may need to collaborate with suppliers from preferred supplier lists in the UAE, so that they can provide the level of services within the Kingdom. As a company that fully embraces technology, depa Interiors is a rarity in the fit-out contractor world, given that it has extensive BIM capabilities and experience. Furthermore, the company is a passionate advocate for technology in the construction sphere, wholeheartedly endorsing tech that utilises the Internet of Things. The company employs a highly skilled labour force and fully owns ten state-of-the-art manufacturing facilities that produce high-end joinery work, FF&E, metalwork, upholstery, stone and marble. Not only does this allow the contractor complete control over the quality of finishes, it also allows it to avoid delays due to failures in the supply chain. This is a message that Davies is keen to preach in Saudi Arabia, where he says that main contractors struggle to understand the added

There are numerous opportunities, however the project values are relatively small and the programs aggressive. Hence the need for a dedicated team to ensure, to the extent possible, a continuous flow of work” MEConstructionNews.com | May-June 2020

IN PROFILE

value of turnkey fit-out contractors. “Hopefully, we can steer the market away from the current prevailing norms. This is not simply the removal of scope gaps, but also the use of technology to ensure fully integrated shop drawings, and hence resolve buildability issues prior to us arriving on site, while still ensuring world class quality. “We have an engineering department consisting of more than 100 engineers, we’re market leaders in BIM and are also currently researching VR technology. We have seen successes recently with new technology introduced into our factories, which monitor exactly labour and wastage costs, that provide almost real time cost information and exact information for estimation and understanding of our cost base,” he says. Despite all of this, Davies admits that the spectre looming over the entire industry is the coronavirus pandemic. Liquidity remains a significant issue for the construction sector, just as it has been for the last few years, and he predicts that the current crisis will have a considerable impact across the board. “Payments from employers to contractors have often been flexed and the contractors, many of whom are in a distressed state, will experience a tough and bleak short-term future. The unknown has a much greater negative effect than that of bad news, and it seems like the unknown will

The leisure and entertainment sector is booming within KSA. The pipeline of projects, with the developers with which we have relationships with, is significant enough that we have formed a dedicated cinemas team”

$110m Total contract value of the cinema project

Managing the chain depa Interiors can manage the supply chain on its projects through its various factories manufacturing various materials and supplies.

May-June 2020 | MEConstructionNews.com

prevail for some months to come. “The coronavirus is already affecting the construction industry, and the prime issue is that of uncertainty and the extent and duration of the ultimate impact. To date, we have projects temporarily closed, bus passenger restrictions and staff numbers reduced and rotated to ensure business continuity. However, employee safety must come first, and where we assess the risk is untenable, we have little to no choice but to suspend work. “This uncertainty and disruption will continue for some months, while another impact of the virus will be the effect on the delivery of materials

from overseas. Italy provides a lot of stone, ceramics and veneers that we use. They have suffered terribly with the coronavirus and this will have an obvious effect. Add in Spain, Germany and Portugal and the extent of the problem starts to become evident. “Firstly, on the purchase orders or subcontracts that have already been placed, and – as we’re seeing now – the increased costs of general products from China, such as MDF, as they take advantage of supply problems across Europe,” he states, adding that there are also likely to be contractual issues, delays and disruptions, all of which raise questions about how to best resolve these issues from a legal standpoint. “These type of questions and disputes may take years to resolve, during which time the main contractors and their supply chains will have no choice but to suffer the additional costs. The most distressing part over the coming months will be the social impact, however. Given the uncertain duration of the coronavirus, companies will do all they can to survive. This will undoubtedly include the reduction or discounting of salaries, unpaid leave and numerous redundancies with little or no chance of finding future employment quickly. Uncertainty is, by far, going to be the biggest problem,” he concludes sombrely.

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

Threat & Risk Assessment Gap Analysis Security System Design IT/AV Design Master Planning & Development Operational Requirements

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

Testing & Commissioning Control Room Design System Integration Policies & Procedures Site Surveys & Audits Crisis Management

September2020 May-June 2019| |MEConstructionNews.com MEConstructionNews.com

PROJECT PROFILE

Noor Abu Dhabi PROJECT NAME: Noor Abu Dhabi PROJECT VALUE: $871.1 million PROJECT SIZE: 8sqkm PROJECT OPERATOR: Emirates Water and Electricity Company PROJECT CONTRACTOR: Sterling & Wilson

A Shining Light BIG PROJECT ME PROFILES THE NOOR ABU DHABI SOLAR PLANT, THE WORLDâ&#x20AC;&#x2122;S LARGEST SINGLE SOLAR PLANT AND A BENCHMARK FOR RENEWABLE ENERGY ACROSS THE GLOBE | May-June | January 2020 MEConstructionNews.com MEConstructionNews.com

PROJECT PROFILE

benefits it will bring to Abu Dhabi, and the UAE as a whole, and what sort of challenges were encountered during the construction and development process. Now that the solar plant has been in operation for almost a year, what have been some of the biggest tangible benefits realised?

ast July, on the eve of the United Nations Abu Dhabi Climate Meeting, the Emirates Water and Electricity Company (EWEC) announced that the massive Noor Abu Dhabi solar plant had commenced commercial operations, marking a significant moment in history for renewable energy advocates and for sustainable energy as a whole. Not only is the project the world’s largest single solar plant, but it will offset Abu Dhabi’s CO2 emissions by one million metric tons, the equivalent of taking 200,000 cars off the roads. With 3.2 million solar panels installed across an eight square kilometre site and producing 1.2GW of power, the Noor Abu Dhabi solar plant is expected to provide enough power to meet the equivalent demand of 90,000 people. Built at a cost of $871.1 million, the plant is located at Sweihan in Abu Dhabi and electricity generated by the facility

Sustainable future Noor Abu Dhabi has set the benchmark for sustainable energy projects across the globe.

Number of months taken to construct the plant

will be sold to EWEC under a 25-year power purchase agreement. The project was developed as a joint venture between the Abu Dhabi Power Corporation and a consortium of Japan’s Marubeni Corp and China’s Jinko Solar Holding. Construction of the solar plant was completed within 23 months, as was originally planned in the construction schedule. In order to reach this milestone on time, more than 2,900 people worked on site at peak construction. With the plant now operational for almost a year, Big Project ME spoke to EWEC to find out how the mammoth renewable energy project came to be, what sort of tangible

Noor Abu Dhabi directly supports the UAE’s Vision 2021, which has set out diverse social, economic, and sustainable objects for the country. The project serves as an important benchmark for what we can achieve when it comes to large-scale clean energy projects. It also highlights how the UAE economy is successfully adopting new economic models, and capitalising on global economic partnerships. Since the commencement of operations at Noor Abu Dhabi, the plant has provided a range of benefits. The first of these is the significant deployment of state-of-the-art monocrystalline photovoltaic (PV) module technology with a capacity of 1.2 GW. The use of this technology has meant that the solar energy produced is at a competitive tariff compared to alternative resources. Importantly, Noor Abu Dhabi is helping to reduce carbon dioxide emissions by 1 million metric tons per year, the equivalent of removing 200,000 cars off the roads. The cost competitiveness of the winning bid for Noor Abu Dhabi also

The project serves as an important benchmark for what we can achieve when it comes to large-scale clean energy projects. It also highlights how the UAE economy is successfully adopting new economic models” September2020 May-June 2019| |MEConstructionNews.com MEConstructionNews.com

PROJECT PROFILE

highlights the very keen interest of global solar developers in Abu Dhabi as one of the worldâ&#x20AC;&#x2122;s leading jurisdictions for solar energy development. It has enabled EWEC to discuss further development of photovoltaic (PV) installations with national, regional, and international partners. What were some of the biggest challenges encountered during the construction and development of the plant, and how were they overcome?

Building mega-installations, such as Noor Abu Dhabi, in the midst of a desert environment, evidently brings a range of challenges to overcome. The timeline for the development and construction of the plant was very ambitious, and it was also

90,000

The plant will provide enough power for 90,000 people

Staying put Ensuring the PV panel structures were securely fastened was a key construction challenge for the project.

important to ensure we could capture the efficiency and sector cost savings. EWEC oversaw a very fast procurement process, just 13 months from the launch of the RFP to financial close, and from that date worked with our partners, who were able to construct the plant in just 18 months. During the construction phase, ensuring that PV panel structures were securely fastened, given the nature of desert geology, was a particular focus. Noor Abu Dhabi is designed in a curved pattern, so the need for the 3.2 million panels to remain unified in their position was paramount during the construction process. To achieve this, engineers first used a fleet of drones to scan the

eight-kilometre area and identified the position of over 600,000 ground screws. This data was then transferred to an unmanned machine, which drilled into the surface, and then a second machine drilled the ground poles into position using a precise torque. This process ensured that the whole solar plant was secured against the shifting geological nature of the Arabian Desert. The work and effort of the multinational teams involved in the project enabled Noor Abu Dhabi to be completed on time and on budget. What sort of environmental and logistical issues had to be resolved during the construction and development process? MEConstructionNews.com | May-June 2020

PROJECT PROFILE

For every new project EWEC undertakes, we apply a rigorous process – in partnership with many stakeholders, including the Environment Agency – Abu Dhabi (EAD) – to ensure we have in place the highest standards when considering and minimising the environmental impact that the location and construction of the project may have. For Noor Abu Dhabi, which covers an 8km2 site, this involved conducting a census of local wildlife in the area, which includes the presence of the endangered spiny tailed ‘dhub’ lizard. The lizards – nicknamed the ‘little dragon’ of the desert – face a major threat in the destruction of their habitat through development. Working closely with EAD, we worked to remove 150 dhub lizards from the site before commencing construction and relocated them to a nearby habitat. Two years on from that process, we are continuing to work closely with the EAD to ensure that these lizards continue to enjoy their desert home. Can you discuss the construction process for the plant? Why was the contractor chosen and did they deliver the project as per the contract specifications?

EWEC have a robust and detailed RFP process for all projects and intensively conducts a technical evaluation followed by the commercial evaluation process to select the best proposal. The contractor for the construction of Noor Abu Dhabi was Sterling & Wilson. The contract was awarded on the basis of the strength of their credentials in developing and delivering largescale PV plant projects, alongside providing ongoing support for the subsequent operation of the plant. We closely partnered with them during the construction phase, which saw a multi-national workforce with over 2,900 people working onsite during peak construction. This close collaboration ensured the project was completed on time and on budget. Can you outline the makeup of the plant and why the materials utilised were chosen?

Throughout the robust and detailed RFP process, EWEC focussed on ensuring the technology to be used at Noor Abu Dhabi would be highly efficient in production output, and monocrystalline photovoltaic (PV) module technology provided this key requirement. Using an innovative layout, these modules are supported on a fixed-tilt structure, enabling maximum exposure to solar rays and, therefore, providing highly efficient output. In addition, Noor Abu Dhabi is constructed in a sweeping design, allowing for sunlight to catch every panel as it moves throughout the course of the day. Any large-scale piece of energy infrastructure in

May-June 2020 | MEConstructionNews.com

2,900 Number of people working onsite at peak

Key investments By making key investments in critical pieces of technology, EWEC has ensured that Noor Abu Dhabi has strong operational efficiency.

the GCC has to withstand unique climate conditions, particularly summer temperatures, whilst also having to operate at the height of operational energy efficiency. As such, our design process and material selection procedure for Noor Abu Dhabi was robust and comprehensive, to ensure we met these challenges. As an example, the central inverters installed can operate at temperatures between -20°C and +60°C and a relative humidity from 0% to 100%. What protective measures have been put in place to mitigate against maintenance and performance issues?

Solar panels require a different

PROJECT PROFILE

By making key investments in critical pieces of technology, we have ensured that Noor Abu Dhabi has strong operational efficiency that allows us to provide a consistently high level of energy output” level of maintenance. One of the critical issues affecting solar plants anywhere, but particularly in the desert, is dust. Left uncleaned, PV panels will quickly build up a surface layer of dust that prevents light from passing through, thus reducing the efficiency of the solar panel. In order to meet this challenge, Noor Abu Dhabi has sweeping machines, or ‘robots’, which wipe each panel free of sand – and other forms of sediment – that can impede the energy efficiency of the module. These machines do not use water in the cleaning process and are able to clean the 3.2 million panel installed over the eight square kilometre site on a regular basis. By making key investments in critical pieces of technology, we have ensured that Noor Abu Dhabi has strong operational efficiency that allows us to provide a consistently high level of energy output. How effective has the plant been since it began operations, with regards to emissions and energy production? What can be improved and what has surpassed expectations?

Noor Abu Dhabi provides solar power through innovative PV production capabilities and rigorous maintenance processes to ensure a high level of efficiency. We are continually looking at improvements we can make and sharing this knowledge across the sector.

Can you discuss the plant’s role in the UAE’s energy strategy? How has its performance since operation shaped the future of the strategy?

The UAE is aiming to increase its clean energy share from 25% to 50% over the next thirty years, and to minimise its carbon footprint by 70%, as set out in the UAE’s Energy Strategy 2050. EWEC will have an expected capacity of 50% of Abu Dhabi’s energy needs from renewable energy sources by 2030 while reducing the carbon intensity by more than 70% compared to 2015. Noor Abu Dhabi continues provide key learnings for future PV plants that are currently under development

within the UAE and internationally. As further solar plants are constructed, we are anticipating a growth in efficiency of production outputs.

Expected capacity EWEC will have an expected capacity of 50% of Abu Dhabi’s energy needs from renewable energy by 2030.

50%

What scope is there for expansion of the plant?

Clean energy share of the UAE in 30 years

EWEC has a strategic plan to increase the use of sustainable energy production technologies. The next key project in this plan is the Al Dhafra PV project, which will cover an area of 20 square kilometres, providing up to 110,000 households in the UAE with electricity. It will reduce CO2 emissions by over 1.6 million metric tonnes per year – equal to removing 330,000 cars from the road. As such, Noor Abu Dhabi represented the first phase of solar energy production in the UAE. Finally, what are some of the key lessons learnt from this plant that will inform the construction and development of future plants?

The construction and commencement of operations at Noor Abu Dhabi has been enabled through investments in highly efficient technology, systems and processes, from the state-of-the-art monocrystalline modules that receive power from the sun, to the innovative machinery used in our construction processes, to the cleaning robots that ensure the plant remains at the height of efficiency when operating in harsh climate conditions. MEConstructionNews.com | May-June 2020

COMMENT

Industry insight

JOANNE STRAIN

KING & WOOD MALLESONS

Impact of COVID-19 on New Construction Contracts

hile the economic impact of COVID-19 has been felt across all sectors, construction in the UAE remains active. Looking back to the begining of 2020, many were forecasting double-digit growth for the UAE’s construction sector. Notwithstanding the disruption caused by COVID-19, the eyes of many businesses remain on future ventures and opportunities, with hopes for the future bolstered by the announcement of various stimulus packages by the Central Bank, intended to ease liquidity and lending for businesses. As part of preventative measures to contain the pandemic, restrictions remain in place in the construction sector, with capacity restrictions at site along with increased health and safety measures. Strict guidelines have been issued to safeguard employees and ensure social distancing. On-site, projects may, for some time, continue to feel the impact of disrupted supply chains, due to the sourcing of materials and equipment and workforce shortages, both from illness and international travel embargos. Short to medium term liquidity issues also remain a concern for the majority of stakeholders in the industry. With no definitive end to the current restrictions and their impact, developers and contractors should tailor new contracts to address the new set of challenges with which they are faced. Particular attention should be paid to delay and extension of time provisions. Parties should consider whether delays caused, to a material

May-June 2020 | MEConstructionNews.com

extent, by COVID-19 should entitle the contractor to an extension of time, or if this was a known risk at the time of contract, to be borne by the contractor. Equally, parties should contemplate areas where the project could run into increased costs due to a reduced social distancing workforce and enhanced health and safety parameters on-site, and specify who will bear those costs. Commercial parties may want to mitigate the risk of projects being impacted by supply chain issues by carrying out thorough due diligence on the supply chain pre-contract. Contractual promises can be incorporated to ensure a diversified supply chain source from sub-contractors, with early notice provisions triggered if a supply chain is concentrated in a single jurisdiction, to allow for mitigating steps being taken. Parties should also carefully consider the parameters of any force majeure clauses in future contracts. A typical contractual force majeure will only cover unforeseeable events and is unlikely to cover future COVID-19 events. Commercial parties may want to specifically include future pandemics, including other COVID-19 related events, within the scope of their clauses. In the current climate, particular focus should be placed on whether changes in the law can give rise to a contractual force majeure event, and whether government guidance, regulations and circulars, which have a material impact, qualify as a force majeure event. The governing law of the contract should be examined thoroughly, taking into account potential project risks. The laws of many regional Civil Law jurisdictions, such as the UAE, offer wider relief where commercial arrangements fall into distress, empowering courts and tribunals to adjust contractual obligations in the face of unforeseen hardship. This position significantly contrasts English law where, in general terms, a contract will only be terminated under the law if performance is rendered impossible, illegal or radically different, unless otherwise provided for in the contract, it is not sufficient that a contract becomes more onerous. In a region and sector where new commercial opportunities remain, and despite an uncertain timeline both within the UAE and globally for return to pre-COVID conditions, a diligently drafted contract will mitigate risk. Joanne Strain is Partner at King & Wood Mallesons, Dubai.

ADAM SMITH

POLYPIPE MIDDLE EAST

Creating Healthier Living Spaces

urrently, we find ourselves in an extraordinary situation. The challenging socioeconomic climate has instigated significant changes for us, both personally and professionally. This, in turn, has encouraged businesses to find new ways to support the global “stay at home” movement and focus on our remote working environments. As people are increasingly adapting their personal spaces to make living, working, learning and relaxing at home safer and more comfortable, making the link between our homes and our health become more relevant than ever. Understanding the factors that contribute to a healthy living space is extremely important in unlocking a number of potential health and wellbeing benefits that can dramatically improve people’s lives. A healthy home/building is a space that supports physical, mental and social wellbeing. The foundations of a healthy living space are determined by factors such as ventilation, air quality, natural light, thermal comfort and water quality, to name a few. Given our efforts to remain at home and keep everyone safe, let’s discuss some quick tips to creating a healthier environment. Interestingly, over half of the air we’ll breathe in our lifetimes will be indoors. Therefore, maintaining healthy indoor air quality is vital to good health. The process actually begins during the design and build stage, where specialised drainage solutions, engineered specifically for high-rise use, should be considered in urban development. These solutions can eliminate foul and toxic odours, reduce the risk of leaks and even decrease the spread of infectious diseases and viruses.

COMMENT

As for occupants, cleaning AC filters regularly, or simply opening windows, helps to improve ventilation. You can even consider incorporating indoor plants, which not only remove toxins from the air, but also make us feel more connected to nature. Introducing natural daylight into our spaces is another powerful way to boost health and wellbeing in our homes. Consider arranging work-from-home spaces with access to natural daylight in order to increase productivity, boost creativity and better regulate circadian rhythms. In fact, just 15-30 mins of daily exposure to sunlight can provide the body with its daily dose of vitamin D, which helps to boost immunity. Another important element of a healthy living space is thermal comfort. We often underestimate the role of temperature in determining productivity and wellbeing. For example, if it’s too warm, this can make us feel tired and unproductive. If it’s too cold, we start to feel restless and distracted. The suggested temperature to create a comfortable environment, recommended by local municipalities, is 24 °C with a humidity level of around 40%. You can use a hygrometer to monitor indoor humidity levels. And finally, there’s water. From hydrating our bodies to washing our clothes, water plays an irreplaceable role in our home life. Testing water regularly helps to determine contaminants, while installing water purifications systems can enhance water quality. Buildings that incorporate more sustainable water management solutions that support sustainable green infrastructure and blue/green roofs, help to create safer environments by improving water quality and quantity, reducing the risk of flooding and even increasing energy savings. Ultimately, our homes and buildings play an important part in the holistic urban ecosystem. We spend approximately 90% of our time indoors. And given the extraordinary situation we are facing, it’s possible that this figure is currently even higher! Therefore, there’s no better time than the present to delve deep and review how we design our living spaces, ensuring we have inhabitants’ health and wellbeing at the very core of our decision-making process. Adam Smith is managing director at Polypipe Middle East.

FRANCOIS FRIGAUX SENSUS

The Impact of COVID-19 on the Utility Industry

tility companies across the world have a strong track record when it comes to preparing for emergencies. In light of the COVID-19 pandemic however, even the most thought-out and thoroughly tested business continuity plans may be struggling to fully address the fast-moving variables of an outbreak like COVID-19. The UAE already has a strong power and water infrastructure but what the current situation underpins is the need to further optimise operations and achieve higher efficiency by leveraging digital technology. We are already seeing strong efforts across all utilities to introduce smart networks that will reduce distribution losses as well as proactively identify any maintenance challenges – an aspect that we support through our smart meter solutions. As utility executives lead their organisations through the transformative changes brought on by the current COVID-19 crisis, it is also important to consider the broader implications and opportunities. This includes a trial run for remote work at a grand scale, that has been thrust upon us almost overnight with many utilities globally grappling with the transition to a fully remote, work from home status. Whilst some job roles can be effectively done from home, others such as manufacturing, lab work and field deployment require colleagues to be in the facility/office or in the field either intermittently or full-time. Broadly speaking, utilities must remain at the forefront of ensuring our critical infrastructure continues to be operational for our communities. The need to be out there on the frontline remains more important now than ever, While the smart water solutions implemented by utilities

across the region will also help to collect data remotely, reduce water loss and secure precious resources during this challenging time. In the short term, we expect utilities to experience load reductions due to a lesser demand for power, gas and water from the commercial and industrial sectors. This should alleviate some of the strain on utilities and divert resources to the increased need from residential customers. However, this diversion of resources is likely to place new strains on utilities. For instance, revenues are likely to suffer from the sudden drop-off in industrial and business water demand, and lost revenue from households less able to pay their bills. During the current climate, utilities must work towards having a firmer grip over their operations. Beyond the immediate strains on revenue; leaks and burst pipes can be a major painpoint for utilities, and during a time when our most precious resources are under the spotlight, we must ensure that these critical services remain operational and at optimum capacity. The issue of Non-revenue water (NRW) is not new, and the spotlight is being shone upon it now more than ever. NRW can take various shapes, from a leak that is not detected by the utility over time, to a burst pipe that causes major damage to infrastructure. Other losses include water that has been produced, but not measured. This occurs due to failures in data and billing systems, customer meter inaccuracies and unauthorised consumption. All of these scenarios amount to the utility losing resources and failing to preserve water. Maintaining essential water and wastewater services during this pandemic is of utmost importance, this is where those who have invested in a smart water network can bear more of the brunt than others. These networks enable utilities to make decisions based on in-depth data collected using next generation analytics. By decreasing the amount of water leaked, smart water networks can reduce the amount of money spent on producing/purchasing water, as well as the consumption of energy required to pump and treat water for distribution. The importance of being able to pinpoint any issues is paramount to the delivery of these essential services, as well as protecting utilities from the financial implications of COVID-19. Francois Frigaux is Regional Director at Sensus, a Xylem brand. MEConstructionNews.com | May-June 2020

TECHNOLOGY

Graphene

Revolutionising Concrete MIDDLE EAST

James Baker, CEO of Graphene@ Manchester talks about the application of graphene in concrete and commercialising the product through collaboration models with pioneering partners in the UAE May-June 2020 | MEConstructionNews.com

rapheneâ&#x20AC;&#x2122;s pioneering role as the worldâ&#x20AC;&#x2122;s first 2D material has given it an iconic status and sparked a revolution in materials science. But what exactly is graphene? Graphene is a single layer of carbon atoms creating a honeycomb sheet. At a nanoscale, it is an incredibly durable and conductive material

so it can be used in a wide range of applications, from aerospace engineering to digital electronics to biomedicine. The University of Manchester in England was where graphene was first isolated by Prof Andre Geim and Konstantin Novosiolov, in 2004. Since then, the university has partnered with and built a unique ecosystem dedicated to graphene-related research and innovation.

TECHNOLOGY

The university also has close collaborations with pioneering partners, such as Abu Dhabi-based Masdar and Khalifa University of Science and Technology. Masdar’s partnership with the university resulted in the former investing about $37 million at the university’s flagship Graphene Engineering Innovation Centre (GEIC), which directly supports graphene commercialisation. Big Project ME sits down with James Baker, CEO of Graphene@Manchester which is the research institute at the University of Manchester where he is responsible for GEIC and the National Graphene Institute (NGI), which has close collaborations with the Khalifa University. “The GEIC is housed at the purpose-built Masdar Building at the university and can operate at the kilogram and square metre scale which allows us to rapidly develop and prototype industrial-scale applications with a ‘fail fast, learn fast’ approach.” “And I believe we are now reaching a commercial ‘tipping point’ as we begin to see graphene and associated 2D materials become embedded into a wide range of products. People will talk less about graphene as a material in its own right and more about experiencing the benefits of graphene and how it is supporting, for example, a greener and more sustainable world,” says Baker. He adds that graphene is a disruptive technology that could open up new markets and even replace existing technologies or materials in different industries. When it is added to other components, it starts to enhance the performance of the combined product. For example, in construction, by adding graphene we can make a material stronger or even use less material for equivalent strength, Baker explains.

“So, one of the areas of real interest is around concrete, by adding a minimal amount of graphene to concrete, we can get the equivalent performance of 20% less concrete material.” But why are huge amounts of concrete an issue? Its primary ingredient, cement is responsible for 6% of the world’s total carbon dioxide emissions. This is because annually cement is produced at a large scale – for instance, in 2017, 4,100 million tons of cement was generated. “Hence, it’s a good example for roads or infrastructure where we could use less concrete, which means lower weight, lower cost, more water-resistance and even a stronger material,” states Baker, adding that this

Sustainability impact Graphene is the world’s first 2D material and has the potential to make a huge impact on sustainability, says James Baker.

The use of graphene can also make the building material more eco-friendly - it is estimated that 60m tonnes of CO2 a year could be saved by using grapheneenhanced concrete in the Middle East and Africa”

is a huge area of interest. “With the Middle East region making ambitious capital investments, the use of graphene in concrete can also make building materials more eco-friendly which means lower carbon footprint- it is estimated that 60 million tonnes of CO2 a year could be saved by using graphene-enhanced concrete in the Middle East and Africa.” However, Baker points out that using graphene presents its challenges. “One of the big ones is that graphene is still relatively young as a new material. So, the challenges revolve around understanding the science; as well as formulating, testing, and regulating it into the market. Another issue is around making graphene a quantity of repeatable cost.” “The key is that when graphene is added to other materials like rubber or concrete, the regulations are really around the end-product. Generally, it is considered as an additive, and for instance, in concrete, there are already a lot of additives. In such a scenario, we work with our concrete supply-chain partners so that they understand the kind of testing, regulation and environmental activity that needs to take place.” He summarises that for communities in the UAE and the wider region, this will manifest in several different ways, including construction, infrastructure, and energy storage, among others. “Graphene is the world’s first 2D material and has the potential to make a big impact on sustainability. “I believe Abu Dhabi’s pioneering role in graphene commercialisation is set to benefit the emirate and the wider region as it looks to build an even more sustainable future,” concludes Baker.

MEConstructionNews.com | May-June 2020

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Middle East tenders UAE MIXED-USE

Jebel Ali Free Zone Traders Market BUDGET $3.1 billion CLIENT Jebel Ali Free Zone Authority TERRITORY JAFZA South, Dubai DESCRIPTION The project’s scope of work consists of a traders’ market located at Jebel Ali Free Zone Area, JAFZA South next to the Expo 2020 Dubai site, Dubai. The market will include clusters of traders from all over the world, offering a wide range of products at one site. They will be divided by market with different catering clusters to the household goods, sector, ranging from household goods, cosmetics, energy and power, engineering and technology, store market, showrooms, offices, hotels, residential units, healthcare, building materials, food and beverage, and associated facilities. COMPLETION 12/30/2025 RESIDENTIAL

Ramhan Island Residential Complex BUDGET $2.5 billion CLIENT Eagle Hills Properties TERRITORY Ramhan Island, Abu Dhabi DESCRIPTION The project’s scope of work consists of a residential complex located at Ramhan Island, Abu Dhabi. The project includes residential buildings, commercial spaces, entertainment facilities, townhouses, educational campus, clubhouse, community clinic, hotels, open urban spaces, recreational facilities, infrastructure

facilities with all the related amenities and associated facilities. COMPLETION 11/30/2024 HOSPITALITY

Al Marjan Island The Address Hotel & Residences BUDGET $505 million CLIENT Emaar Properties TERRITORY Al Marjan Island, Ras Al Khaimah DESCRIPTION The project’s scope of work consists of hotel and serviced apartments buildings located at Al Marjan Island, Ras Al Khaimah. The Address Al Marjan Island hotel will include 249 rooms and suites while Address Residences Al Marjan Island will include 234 luxury apartments. The project is approximately 27 kilometres (17 miles) from the city’s centre and will have direct access to more than 600 meters of beachfront as well as views of the Arabian Sea. The project will offer several restaurant concepts including the restaurant at the address for all-day dining, meeting and banquet space, fitness centre, a business lounge, car parking space, landscaping works, commercial units, retail area and other wellness amenities. COMPLETION 9/30/2022

Department of Energy TERRITORY Al Dhafra, Abu Dhabi DESCRIPTION The project’s scope of work involves the construction of 2000 megawatts photovoltaic (PV) solar plant located at Al Dhafra, Abu Dhabi. It also includes installation of solar panels of photovoltaic modules, control rooms, the operating building and associated facilities. The project will lift Abu Dhabi’s solar power capacity to 3200 megawatts. Once completed, the project site will cover an area of 20 square kilometres, almost doubling the capacity of the current largest operational single-site solar photovoltaic plant in the world, Noor Abu Dhabi. COMPLETION 3/30/2023

ENERGY

INFRASTRUCTURE

SAUDI ARABIA

Al Dhafra Independent Jubail 3A Independent Power Plant Water Plant (IWP) BUDGET $1.6 billion CLIENT Abu Dhabi

BUDGET $1 billion CLIENT Saudi Water

Partnership Company TERRITORY Jubail, Saudi Arabia DESCRIPTION The project’s scope of work involves the construction of an independent water plant and seawater reverse osmosis plant with a capacity of 600000 cubic meters of water per day (m3/day) located at Jubail, Saudi Arabia. The project also includes a seawater intake systems, pumps and related facilities. COMPLETION 1/30/2023 ENERGY, INFRASTRUCTURE

Red Sea Development Power Generation & Utilities BUDGET $505 million CLIENT Public Investment Fund TERRITORY Red Sea Development, Saudi Arabia DESCRIPTION The project’s scope of work involves the construction of utilities and related infrastructure for the first phase of the Red Sea Tourism development on the west coast of Saudi Arabia. The project includes the provision of power and water production, sewage treatment and solid waste treatment. Under the PPP contract, power generation capacity will be required to service a peak demand of 210 megawatts (MW). Power is planned to be generated for the first phase from photovoltaic solar, wind energy, energy storage batteries and biofuel emergency power. In the second phase, which is due to be commissioned by 2030, power generation capacity will be required to meet the peak demand of 360MW. The client is planning for geothermal and concentrated solar power to add additional capacity by 2030. For water production, two seawater reverse osmosis (SWRO) plants will be developed with a capacity of 30,000 cubic meters per day under the first phase. The demand will be split between potable water, 21,000 cubic meters per day, and irrigation top-up, 9,000 cubic meters per day. Under

MEConstructionNews.com | May-June 2020

TENDERS

the second phase, an additional SWRO plant will be developed in addition to brine squeezer and Chlor-alkali technologies to meet the expected demand of up to 50,000 cum cubic meters per day, split 39,000cubic meters per day and 11,000cubic meters per day between potable water and irrigation top-up respectively. The selected developer will also be required to provide a sewage treatment plant (STP) with a capacity to treat up to 18,000 cubic meters per day of sewage under the first phase of the project through a constructed wetlands scheme. COMPLETION 11/30/2025 OIL & GAS

Zuluf Central Processing Facilities BUDGET $3.2 billion CLIENT Saudi Aramco TERRITORY Dhahran, Saudi Arabia DESCRIPTION The project’s scope of work involves the construction of central processing facilities located at Dhahran, Saudi Arabia. The project is divided into 3 packages where package 1 includes gas-oil separation units, hydrocarbons processing facilities, wet crude handling facility, crude storage facility, crude shipping facility, gas compression facility, gas conditioning facility, laying of pipeline and installation of safety and security systems; package 2 involves treatment and injection facilities, produced water disposal facility, laying of pipeline, and package 3 involves construction of utility facilities. COMPLETION 12/30/2025

DESCRIPTION The project’s scope of work consists of 1,600 schools located in Saudi Arabia. The largest project-of-its-kind for the construction of school buildings, it will see a mix of kindergartens and primary, intermediate and secondary schools for both boys and girls. The project will be delivered in phase. Phase 1 entails 60 schools located in Jeddah and Makkah region. COMPLETION 12/30/2024

OMAN OIL & GAS

Marmul Gas Compression Stations BUDGET $510 million CLIENT Petroleum Development Oman TERRITORY Marmul, Oman DESCRIPTION The project’s scope of work involves the construction of an 8 gas compression stations located at Marmul, Oman. The project also includes a main gas control room, laying of pipelines and trunk-lines, installation of pig launchers and receivers, emergency blow-down flare and safety relief valves. COMPLETION 3/30/2023 MIXED-USE

Oman Gate BUDGET $320 million CLIENT Oman Ministry of Tourism TERRITORY Al Seeb, Muscat

EDUCATION

1600 Schools Development Program BUDGET $700 million CLIENT Saudi Arabia Ministry of Education, Saudi Arabia Ministry of Finance, Saudi Arabia Ministry of Economy & Planning TERRITORY Saudi Arabia May-June 2020 | MEConstructionNews.com

to-olefins in the first phase, 0.7 MTPA Methanol to olefins plant, 0.3 MTPA polyethylene plant, 0.45 MTPA polypropylene plant. COMPLETION 1/30/2023 HOSPITALITY

St. Regis Al Mouj Muscat Resort & Branded Residences DESCRIPTION The project’s scope of work consists of a mixed-use development located at Al Seeb, Muscat, Oman. The project also includes a 9.7 hectares waterfront plot, Omani-themed bazaars and heritage outlets, a marina for yachts and leisure crafts, restaurants and cafes. COMPLETION 12/30/2022 OIL & GAS

SEZAD Methanol to Olefins Plant BUDGET $2.8 billion CLIENT Duqm Special Economic Zone Authority (SEZAD) TERRITORY Duqm, Al Wusta DESCRIPTION The project’s scope of work involves the construction of a methanol plant located at China-Oman Industrial Park (Sino Oman Industrial City), Duqm, Al Wusta, Oman. The integrated methanol and methanol to olefins (MTO) plant will have a capacity of 10 million tonnes. The project will be built in phases looking at a capacity of 1.8 million tonnes of gas-to-methanol and methanol-

BUDGET $205 million CLIENT Al Mouj Muscat, Al Fardan Properties TERRITORY Al Mouj, Muscat DESCRIPTION The project’s scope of work consists of a resort and hotel building located at Al Mouj, Muscat, Oman. The project includes 271 crafted guestrooms and suites in the resort and 170 branded residences featuring a mix of one-to-four-bedroom units and duplexes, the master development is an example of modern luxury living, offering international tourists, families and residents’ world-class facilities and services. COMPLETION 4/30/2023

BAHRAIN HOSPITALITY

Mama Shelter Hotel BUDGET $105 million CLIENT GFH Financial Group TERRITORY Bahrain Financial Harbour, Manama DESCRIPTION The project’s scope of work consists of a waterfront hotel building located at Bahrain Financial Harbour, Manama, Bahrain. The project also includes a restaurant and sea view rooftop pool. COMPLETION 12/31/2022 OIL & GAS

Bahrain NonAssociated Gas Compression Facilities BUDGET $110 million CLIENT Tatweer Petroleum TERRITORY Bahrain

TENDERS

DESCRIPTION The project’s scope of work involves the construction of non-associated gas compression facilities (NCF), installation of a gas lift, gas injection unit located in Bahrain. As per the new gas management strategy and since most of the associated gas/residue gas will be utilized for gas lift, the burden on the Khuff reservoir is increased to compensate and make-up. Nevertheless, the revised oil depletion strategy requires an increased gas injection at reservoirs to improve oil recovery. COMPLETION 12/30/2022 HOSPITALITY

Sakhir Hotel & Serviced Apartments BUDGET $100 million CLIENT Bahrain Tourism & Exhibitions Authority TERRITORY Sakhir, Bahrain DESCRIPTION The project’s scope of work consists of a hotel and serviced apartments building located in close proximity to the Bahrain International Circuit in Sakhir, Bahrain. COMPLETION 12/30/2022 INFRASTRUCTURE

South Bahrain Loop Road BUDGET $120 million CLIENT Bahrain Ministry of Works, Municipalities Affairs & Urban Planning TERRITORY Bahrain DESCRIPTION The project’s scope of work involves the construction of a loop road located at South Bahrain, Bahrain. The project will be developed into two phases. Phase I includes the construction of 9.5km road connecting Bahrain International Circuit/ Al Areen Park (at the northern end) to Al Salam development at the southern end. As part of future expansion (Phase-2), South Bahrain Loop Road Phase-1 shall be extended to connect with King Hamad Highway (Motorway). The project

outpatient clinics, inpatient rooms, laboratories, 30 surgical theatres, an administrative building, a helipad, a free-standing day-care centre, 2,400 car parking facilities, five shelters for civil defence, a 450 meter long, enclosed atrium, a roof garden and children’s play areas, installation of two lifts, and security equipment. COMPLETION 3/30/2024 INFRASTRUCTURE

also includes landscaping works, installation of street lighting, single carriageway, dual carriageway and other associated works. COMPLETION 1/30/2025

KUWAIT RESIDENTIAL

Mina Al Ahmadi Township Redevelopment BUDGET $2 billion CLIENT Kuwait Oil Company TERRITORY Al Ahmadi, Kuwait City DESCRIPTION The project’s scope of work involves the redevelopment of Ahmadi township located at Al Ahmadi, Kuwait City, Kuwait. The project will be constructed in phases, phase 2.2 includes 333 units of residential houses, a new mosque(1000 person capacity), small retail units, high-security fence, communal and private parking areas, infrastructural works, boundary walls and signage, installation of street lighting, 11 general substations, central utility plants (CUP), six transformers (11/3.3kV and 11/440kV), control room and LT room for MLTPs panels, batteries room, offices, toilets, waste transfer terminal and landscaped areas and green parks. Phase 2.3 includes 123 units residential houses, large retail units, communal and private parking areas, infrastructural works, boundary walls & signage, installation of street, external

lighting, electrical sub-stations, 5 local substations, two 2500KVA transformers, central unit plants (CUP), underground water tank, electrical substations, installation of four transformers, batteries room, offices, toilets, waste transfer terminal, development of landscaped areas and green parks. COMPLETION 6/30/2024 HEALTHCARE

Al Sabah Medical Area New Pediatric Hospital BUDGET $855 million CLIENT Kuwait Ministry of Public Works TERRITORY Al Sabah Medical Area, Al-Shuwaikh DESCRIPTION The project’s scope of work consists of a new paediatric hospital located at Al Sabah Medical Area, Al-Shuwaikh, Kuwait. The project also includes a 5-storey diagnostic/treatment podium, hospital with 792 beds, central utility plant, emergency wards, 19 X-ray rooms, 14 ultrasound rooms, 19,974 square meter

Northern Regional Road from Crossroad No. 82 to Crossroad No. 58 BUDGET $335 million CLIENT Kuwait Ministry of Public Works TERRITORY Kuwait City DESCRIPTION The project’s scope of work involves the construction of northern regional road from crossroad no. 82 to crossroad no. 58 that will facilitate the growth of inter-regional and international trade within the GCC states located at Kuwait City, Kuwait. The project also includes camel crossings, earthworks including excavation and embankment, demolition of existing pavement, interchanges, rail crossing and stormwater culverts, removal of existing structures, pavements and barriers, installation of street lighting, water pipelines, infrastructure works, landscaping works, and other associated facilities. RETAIL, COMMERCIAL

Jaber Al Ahmed Township (J2) BUDGET $205 million CLIENT Public Authority for Housing Welfare (PAHW) TERRITORY Jaber Al Ahmed Township DESCRIPTION The project’s scope of work consists of a business and retail development located at Jaber Al Ahmed Township, Kuwait. COMPLETION 5/31/2024

MEConstructionNews.com | May-June 2020

PROGRESS REPORT

Final update

Phase One of Alef Group’s Al Mamsha project hits 68% completion mark Mixed-use community project on course to be delivered by end of 2020

lef Group, the Sharjahbased developer, has announced that 68% of construction work has been completed on the first phase of its mixed-use community Al Mamsha, and that the project is scheduled to be handed over by the end of the year. An $816 million, pedestrian-friendly residential community, Al Mamsha

is being built in the Al Juraina area of Sharjah, the developer said in a statement. Located at the nexus of Sharjah’s main highways, ensuring easy access to major metropolitan areas, as well as to Dubai and the Northern Emirates, the project offers a wide variety of home options – from studios to one-, two- and threebedroom apartments, it added. Scope of work for Phase One includes seven buildings, 693 housing units and 88 commercial stores, spanning a total area of 58,436sqm. Issa Ataya, managing director of Alef Group, said that the project would be delivered at the end of 2020, as per plans. “To ensure timely delivery, our team is following the necessary precautionary measures and procedures according to the protocols set by the

May-June 2020 | MEConstructionNews.com

Renewing confidence Issa Ataya says that the initiatives undertaken by the Sharjah government during the pandemic has helped renew the confidence of project owners to invest in the Emirate.

693 Total

number of housing units in Phase One

Ministry of Health and Community Protection,” stated Ataya. The Sharjah government has undertaken several initiatives amid the COVID-19 pandemic that have helped renew the confidence of project owners to invest in the emirate, he pointed out. “Known for its flexible laws and legislation, Sharjah is known to assist investors during difficult conditions,” remarked Ataya. “The key facilities and exemptions included in the stimulus package recently launched for investors by HH Dr Sheikh Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, would assist in economic development by simplifying business procedures and help project owners work on the construction and delivery of their developments in time.”

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• Finance solutions from AFM Hino in collaboration with Al Futtaim Finance Partner Banks • Low interest rates starting from 1.99% • Finance period upto 48months. • Applicable on All Hino Models. • Avail financing on Insurance and other Accessories as well.

*this campaign is valid for a limited time only. Terms & Conditions apply.

www.hino.ae

Dubai Branch

Urnm Ramool, Rashidiya

Sharjah Branch

Industrial Area 12 Toyota Showroom 2

Abu Dhabi Branch

Industrial Area, Mussafah

call

ENJOY LOWEST

COMPLETE WAREHOUSE SOLUTIONS BY TOYOTA MATERIAL HANDLING • Finance solutions from AFM Toyota material handing in collaboration with Al Futtaim Finance Partner Banks • Low interest rates starting from 2.49% • Finance period upto 48months.

800 4466 72537

2.49% INTEREST RATE

• Applicable on All TMH Models. • Avail financing on Insurance and other Accessories as well.

*this campaign is valid for a limited time only. Terms & Conditions apply.

www.toyotaforklift.ae

Dubai Branch

Urnm Ramool, Rashidiya

Sharjah Branch

Industrial Area 12 Toyota Showroom 2

Abu Dhabi Branch Industrial Area, Mussafah

call 800 4466 72537

We do not only create magnificent buildings; we build strong foundations that will stand the test of time. We know that the challenges facing the world today will pass and together we will come out stronger.