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THE BUSINESS OF CONSTRUCTION
Committed to Change
BIG PROJECT ME LEARNS HOW ALEC IS PUTTING IN PLACE A DIGITAL STRATEGY THAT WILL ENABLE IT TO BECOME AN INNOVATION LEADER IN THE INDUSTRY
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CONTENTS
November 2020
08
16
18
20
28
40
Analysis
FEATURES
Insight
08
The briefing
20
34
Comments
The big picture
Gavin Davids speaks to ALEC’s Digital Committee to learn how the contractor’s digital strategy is helping it become a leading, technologically enabled company
36
Tenders
40
Progress report
Industry specialists discuss how technology is transforming the construction industry and making job-sites safer
12
Providing a wrap-up of the biggest local, regional and international construction news stories
16
Market report
18
Analysis
ProTenders’ report analyses Saudi Arabia’s construction sector in Q4 2020
In profile Alec’s Digital Committee
28
Project profile Water Change
Big Project ME profiles the transformation of Ras Al Khaimah’s wastewater collection network’s performance and efficiency through the use of digital solutions
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 November 2020
Pace announces that Bahrain’s mixeduse project, Marassi Al Bahrain, has reached the 56% completion mark
Angitha Pradeep examines Abu Dhabi’s efforts to encourage greater collaboration between private and public sectors
MEConstructionNews.com | November 2020
2
WELCOME
Introduction
Moving forwards
O
ver the last few days, as the calendar ticks over to November, I’ve been thinking about how different times are. Usually, at this time of the year, the editorial team and I would be scrambling to make sure things run smoothly for the Big Project ME and the ME Consultant Awards. Our days would be a mad dash of finalising entries, organising judges, evaluating nominations, and working with the events team to decide on venues, menus and many more details. This time, however, as you all should know by now, we’ve moved the Big Project ME Awards to the end of January (January 26, 2021), and while it may seem like it’s quite far away, trust me when I say that the awards will be on us before you can blink Therefore, I would urge all of you thinking of nominating to please start doing so as soon as possible, as I’m sure you’d love to kick the new year off in the best way possible – with an award in hand! However, just because we’re postponing the awards, doesn’t mean that November
November 2020 | MEConstructionNews.com
is going to be empty – far from it actually. Not only will the Women in Construction Summit be taking place from November 8 to 11, but we’ll also be holding the ME BIM Summit from November 23 to 25. Given the theme of this month’s issue, where we’ve focused on how companies are using a variety of solutions to help them in their digital transformation journey, I’m looking forward to the discussions that will be held over the three days of the Virtual ME BIM Summit. We’ll be focusing on three core themes – Streamlining Project Delivery, Creating a viable BIM mandate and Utilisation of Geometrics and BIM. I believe that these are key topics for the industry to be speaking about at this time, as more and more companies are turning towards technology to help them recover from the effects of the pandemic. I hope the discussions we will have later this month will help smooth that process. If you’re interested in sharing your insights and knowledge, please do get in touch with me.
Gavin Davids
Group Editor gavin.davids@cpitrademedia.com @MECN_Gavin MEConstructionNews me-construction-news
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4
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THE BUSINESS OF CONSTRUCTION
Group MANAGING Director Raz Islam raz.islam@cpitrademedia.com MANAGING PARTNEr Vijaya Cherian vijaya.cherian@cpitrademedia.com
Editorial Group EDITOR Gavin Davids gavin.davids@cpitrademedia.com +971 4 375 5480 JUNIOR REPORTER Angitha Pradeep angitha.pradeep@cpitrademedia.com +971 4 375 5479
Committed to Change
BIG PROJECT ME LEARNS HOW ALEC IS PUTTING IN PLACE A DIGITAL STRATEGY THAT WILL ENABLE IT TO BECOME AN INNOVATION LEADER IN THE INDUSTRY
SUB EDITOR Aelred Doyle aelred.doyle@cpitrademedia.com
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ON THE COVER
Big Project ME speaks to ALEC’s Digital Committee to find out how the contractor put in place a digital strategy that has enabled it to pivot into becoming a leading, technologically enabled company MEConstructionNews.com @meconstructionn MEConstructionNews me-construction-news
Design CREATIVE DIRECTOR Simon Cobon simon.cobon@cpitrademedia.com DESIGNER Percival Manalaysay percival.manalaysay@cpitrademedia.com
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Web Development The publisher of this magazine has made every effort to ensure the content is accurate on the date of publication. The opinions and views expressed in the articles do not necessarily reflect the publisher and editor. The published material, adverts, editorials and all other content are published in good faith. No part of this publication or any part of the contents thereof may be reproduced, stored or transmitted in any form without the permission of the publisher in writing. Publication licensed by Dubai Development Authority to CPI Trade Publishing FZ LLC. Printed by Al Salam Printing Press LLC. CPI Trade Media. PO Box 13700, Dubai, UAE. +971 4 375 5470 cpitrademedia.com © Copyright 2020. All rights reserved.
November 2020 | MEConstructionNews.com
WEB DEVELOPer Abdul Baeis abdul.baeis@cpitrademedia.com WEB DEVELOPer Sadiq Siddiqui sadiq.siddiqui@cpitrademedia.com FOUNDER Dominic De Sousa (1959-2015)
6
ONLINE
MOST POPULAR
featured
CONSTRUCTION
READERS’ COMMENTS
Top 10 technology trends in the construction industry
SB Energy awards GE Renewable Energy windfarm deal
Enjoyed reading this list (Top 10 technology
trends in the construction industry). I’m not sure whether it is in order of importance or not, but for CONSTRUCTION
me I would say that the
Saudi Arabia launches new 280,000sqm residential community project
use of big data and cloud computing are probably the technologies likely to have the greatest impact over the next decade. I would also suggest that it is not
PROJECT INSIGHT: The Museum of the Future
just the ability to be able to analyse the impact of external factors – such as
FLEET
weather and traffic listed
Hitches & Glitches launches specialised FM package for mosques
here – during construction that will be essential. Going back to the early stages of construction (even to the decision-making behind the precise location of where to build a project or even an entire development) being able to study social
CONSTRUCTION
and business activity
Madayn awards $6.7 million contract for infrastructure works
in an area and identify how to plug into existing infrastructure can optimise a project’s likely success. The real trick, however, will be at a city planner’s level where they can better identify the types of projects needed in an area for years to come. There
CONSTRUCTION
SWPC invites EoIs for new SWRO desalination plant in Saudi Arabia November 2020 | MEConstructionNews.com
ANALYSIS: What you need to consider prior to terminating contracts
are exciting times ahead. Name withheld by request
26 January 2021 Ritz Carlton JBR, Dubai
United Arab Emirates
The award has added an additional feather in our cap and another milestone in the list of achievements for Dubai Municipality. We thank the esteemed Big Project ME team for this great opportunity.
Eng Mohammed Ahmed Al Rayees
Director - Department of Sewage Treatment Plants and Networks Dubai Municipality
Contact Us Award Nomination Enquiries Gavin Davids | +971 4 375 5480 gavin.davids@cpitrademedia.com Table Booking & Sponsorship Jude Slann | +971 4 375 5714 jude.slann@cpitrademedia.com
BigProjectMEAwards.com
8
THE BRIEFING
Technology
Thriving with Technology MIDDLE EAST
Head of holding company, JGroup, says technology trends in the built environment are accelerating and increasing the level of transparency across the industry
A
ccording to Deloitte’s 2020 Powers of Construction report, the industry’s response to Covid-19 went through three distinct phases: Respond, Recover and Thrive. In the early ‘Respond’ phase, the focus was on executing projects effectively and safely at a pace required to minimise social and economic damage and to contain costs while focusing on cash preservation. As the regional construction industry moves into the ‘Recover’ phase, the report states it is essential to adopt a strategic view, where the focus should be on the effective execution of projects. This also includes payments
November 2020 | MEConstructionNews.com
Driving optimisation Technology can help the construction industry drive cost optimisation and minimise risk.
10%
Energy usage reduction in buildings globally
to be made on time to ensure the much-needed liquidity to complete projects that are under execution. As stakeholders grapple with the ‘new normal’ that Covid-19 has presented, they also face an opportunity to rethink the way they used to work and discover new opportunities to change the status quo collectively, which should be addressed in the ‘Thrive’ phase. Historically, the construction industry was the least receptive of being digitally transformed due to a lack of understanding the benefits technology can bring across the board, says Lebanon-based JGroup’s founder and president, Imad Jomaa to Big Project ME.
9
5G
Technology will elevate the real estate industry
Witness the benefits Companies are able to justify and rationalise investment in technology as they can witness the benefits in their day-to-day construction lives.
“Covid-19 has definitely accelerated the adoption of existing technology which was otherwise progressing at a steady pace, and has exposed gaps and weak links within businesses. However, the need to remain relevant, sustain and recover has led businesses to leverage and invest in technology at a greater speed and rate,” he notes. In the report, Cynthia Corby, partner and construction leader at Deloitte Middle East, said: “Not only does tech – such as drones, robotic construction processes and artificial intelligence - deliver advantages in terms of driving cost optimisation, it can also help to minimise other risks associated with any second wave of Covid-19 or future pandemics.” Echoing the sentiment, Jomaa remarks that technology has increased the level of transparency across all company operations within the construction industry. “Whether it is the supply chain, workforce, finance, project management or admin, technologies such as cloudbased software-as-a-service has unified all business functions. This has made data easily accessible and available to ensure that decisionmaking is faster and insight-driven.” “Moreover,” he adds, “Internet of Things- (IoT) enabled devices and services are being embedded within new building projects that will establish a new era of managing facilities, utilities and sanitisation, which is in line with the new norm of social distancing.” Many are also in the middle of automating all their processes to be resilient if another disruption strikes, Jomaa notes, adding that it’s not that Covid-19 has completely wiped out these barriers to adoption of technology. However, it is much easier to justify and rationalise investments as companies continue to witness the benefits of using technology in their day-to-day life in construction; easier the path will be in the future. He adds: “For instance, in the realestate sector, processes that largely were conducted offline such as buying, renting or selling property, signing of contracts, are now completed online. The online presence cannot
IoT-enabled devices and services are being embedded within new building projects that will establish a new era of managing facilities, utilities and sanitisation” be overlooked anymore, and the only physical element that remains in real estate today is visitation. The whole industry has started to invest more in technology and digital services to ensure utmost convenience and exceptional online experience for their customers.” Jomaa points out that data security and data privacy are two topics gaining importance amongst companies in the industry. He explains that 100% of the data cannot be secured all the time,but points out that investments can be made in cybersecurity solutions to prevent
data breaches, and as an additional layer of defence, employees should be educated on safe online habits. Elaborating on IoT’s relevance in the built environment, Jomaa says, according to the International Energy Agency, IoT could lower the energy consumption of residential and commercial buildings globally by as much as 10% between 2017 and 2040. He explains: “As we advance, 5G will elevate the real estate industry in terms of security, whether it’s a residential house or a commercial building. With 5G, it will be easier to install cameras and connect sensors across the property and enable devices to capture and transfer images and videos at great speed.” He summarises that with IoT-enabled devices, homebuyers will be able to download the whole maintenance history of their prospective future homes and will be able to review the upkeep of plumbing and electrical sockets through a connected smart device. “With IoT-enabled devices integrated into houses, homes will be sources of data that will be used to introduce services and products that can improve our community for the better,” he concludes.
MEConstructionNews.com | November 2020
10
THE Briefing
WakeCap to the future MIDDLE EAST
Big Project ME speaks to Hassan Albalawi, founder of WakeCap, about how a simple monitoring device has delivered huge benefits to the construction industry
November 2020 | MEConstructionNews.com
W
akeCap is a smart hard-hat monitoring device that tracks the proximity of construction workers to each other with the goal of improving efficiency and safety. The company got its start solving a specific safety concern: detecting nodding behaviour for drivers who are falling asleep—hence its name—but soon pivoted to technology for construction sites and similar applications. When the COVID-19 pandemic presented a global public-health crisis and brought the economy to a halt, these simple data points turned out to be heroes for contact tracing on construction sites, adding a layer of safety for workers as the virus lingers.
Launched in 2017, WakeCap is a resident of the Autodesk Technology Center in San Francisco; from its home base in the city, the company works with multinational construction conglomerates such as AECOM, EMAAR, and Besix. WakeCap has active projects in the United States and the Middle East, where founder Hassan Albalawi hails from, and upcoming work in Japan and India. This spring, WakeCap customer BESIX discovered there’d been a construction worker on a 2,200-person site who had contracted COVID-19. With its monitoring capabilities, the company asked WakeCap if it could figure out where this worker was on the site and with whom he or she came into contact. Big Project ME spoke to Albalawi in an exclusive interview to find out
11
Work better WakeCap’s sensors help contractors reduce risk, improve efficiency and cut costs, while finding ways to work better.
2,200
Number of people working on the BESIX site
how the technology can not only help save lives during the pandemic, but also improve efficiencies and performance across the board. Tell us why BESIX approached WakeCap to help with the contact tracing required after their COVID-19 scare. Has there been any further interest from other companies to utilise this technology in this manner? When Covid-19 became an international concern, our client BESIX required support to report on employee tracing. In just two hours, we were able to deliver a list of workers who had come into contact with the first infected people. We could do this because WakeCap provides a detailed analysis of site activity completely automatically, with reliable results, in real-time. The WakeCap technology was not specifically designed for this purpose, but contact tracing fell into the general category of improvements that can be made on the job site if you have visibility into where people are during their work hours. Therefore, it lets builders see if advised social-distancing precautions are being heeded and are working. The support WakeCap provided to BESIX ensured the site remain open during the early stages of the pandemic, limiting quarantine only to those that had come in close contact with the infected workers. What we’re now seeing in the field is that general contractors and owners consider it a higher priority to find ways to make their operations work better, reducing risk and costs so they can survive the crisis and hit their commitments. While manual signage and better distancing procedures (for example, reducing the number of workers in each lift) are protecting workers’ safety, the focus has now turned to how the jobs can be done on time when there are 20% to 40% drops in capacity. That is really where WakeCap shines. We have example after example of WakeCap reports reducing overages and improving efficiencies. Workers are happier when site layout does not get in the way of doing their jobs. Staff,
A specialised sensor is incorporated within each worker’s safety hard hat, constantly identifying site position with amazing consistency, coverage, and accuracy. The system places each worker by comparing the signal strength of multiple site nodes nearby on the site’s mesh network. We are talking real time – each sensor transmits the position every 3 minutes whenever the person is on site and at work. The accuracy of these data points is the foundation of our analysis.
Contact tracing fell into the general category of improvements that can be made on the job site if you have visibility into where people are during their work hours” workers, and vendors not needing to spend as many hours preparing time sheets (now automatic) or arguing about inconsistencies become more focused on getting it done. All of this makes contractors more competitive in an increasingly difficult industry. Given the many challenges and obstacles present in the construction industry, how flexible and adaptive is the technology? The technology is a process of site data collection that is analysed to provide greater understanding of the personnel activity. To collect the data, we deploy a wireless mesh network to the entire construction site. This network expands as the construction site develops, allowing WakeCap to monitor each additional floor, with more nodes installed or moved.
What are you doing to expand the capabilities and reach of this technology? How are you incorporating other technology elements? The specialised WakeCap sensor hardware was developed to provide some very interesting features. For now, the system collects data location and detects motion, as well as weather conditions, status, and device health. Our clients are excited with the level of features that we have released so far but the future will be even more exciting when we begin to roll out advanced productivity planning and tracking, and safety monitoring features. Applying artificial intelligence and machine learning to identify problems and reduce time lost is part of our plan and our skillset, made possible due to our high standard for collection of accurate, complete, and always-on data.
MEConstructionNews.com | November 2020
12
THE BIG picture
01 UNITED STATES
03 SWEDEN
US-based Hines begins Oklahoma project construction
Sweden-based Skanska wins renovation contract at US aluminium facility
US-based real estate investment firm Hines has commenced construction on a luxury multifamily project in Oklahoma, US. Designed by Dwell Design Studio, the project will have five-storey midrise buildings comprising of 326 rental homes and will feature studios, one-, two-, and three-bedroom units. The initial site works at the project commenced in August this year with occupancy expected to start in early 2022. Amenities will include multiple private outdoor courtyards, a heated pool and a private fitness centre.
02 Chile
Enel Green Power begins construction on 240 MW solar project Enel Chile has commenced construction on its 204MW Domeyko solar photovoltaic (PV) project in Chile. Located in the Antofagasta Region, the project will involve a total investment of about $164 million. Slated to be completed by July 2021, the Domeyko solar park, spread across seven million sqm. of area, will comprise nearly 472,590 bifacial monocrystalline PV modules. Enel’s new project is part of a 2GW renewable energy portfolio which the company seeks to install by 2022, half of which is already under construction.
Sweden’s Skanska has signed an agreement to design and build the expansion for a US-based aluminium processing facility worth $91 million. The contract includes the design and construction of an 8,000-sqm. expansion, in addition to remodelling 1,900 sqm of existing plant space. The facility will utilise green technology and state-of-the-art equipment to increase capacity significantly and will be one of the most advanced aluminium processing facilities in the world. Construction is expected to begin in Q2 2021, and completion is targeted for 2023.
04 Norway
06 Benin
Norway begins construction of $446 million offshore wind project
MCC awards GE $47 million substation project in West Africa
Norway has begun the construction of the world’s largest floating offshore wind farm - the Hywind Tampen. Norway-based EPC company, Kværner is responsible for the construction of 11 floating concrete hulls for the turbines on the new project. The Hywind Tampen project will be the first floating offshore wind project to supply renewable power for oil and gas installations. The wind farm will have a total capacity of 88 MW and is expected to cover about 35 per cent of the annual power needs on the five platforms.
November 2020 | MEConstructionNews.com
05 Germany
Germany to have first 3D printed residential building PERI is building Germany’s first 3D printed residential building in North Rhine-Westphalia, featuring a two-story detached house with approximately 80 sqm. of living space per floor. Architects MENSE-KORTE ingenieure + architekten designed the building for their client, Hous3Druck GmbH. For construction, the manufacturing company is using PERI BOD2 3D-printers, which can move along its frame from any position within the construction project site. The system only needs to be calibrated once, the manufacturer added.
A $47 million contract has been awarded to GE Renewable Energy’s Grid Solutions business for a substation project in Benin, West Africa. The contract, billed as the nation’s biggest high voltage substation, has been awarded through the Millennium Challenge Corporation. GE will supply four substations, including gas-insulated switchgear and seven substation extensions. The scope covers the most important high-voltage substation in the country, Vedoko, and is strategically placed to help strengthen the country’s transmission backbone.
01
THE big picture
04
13
03
05
08 09 07
06
08 Iraq
07 Egypt 02
Vestas wins 252MW deal for sustainable power project in Egypt Vestas has won an order from the New and Renewable Energy Authority (NREA) in Egypt, which outlines the supply of 252MW of wind turbine solutions for the Gulf of Suez 1 wind project. Vestas will manage the engineering, procurement and construction of the project, which is said to include related civil and electrical works and the substation for the connection to the national grid. The Gulf of Suez 1 wind project is planned to be fully operational in 2023. Once operational, the project’s annual production is expected to reach 1027GWh.
Hill International awarded contract for $4 billion Egyptian monorail project Hill International has announced that it has been awarded a contract to provide project management, design review and implementation supervision services for a key monorail project in Egypt. The estimated $4 billion New Administrative Capital City and 6th of October City project represent the first monorail in North Africa, and once complete, will be the longest monorail system in the world at a combined distance of 98.5km. The project will use the design-buildoperate-and-maintain delivery method.
09 Kuwait
Kuwait’s airport project hits milestone Limak Construction has achieved a significant construction milestone with casting the last of the 36,964 shell cassettes required for the inner roof of the Kuwait International Airport New Terminal 2 (T2) project. Fabricated entirely onsite the steel and concrete composite structures cover a total area of 282,179 sqm to form the massive domes that span the terminal’s entire interior space. Targeting to be one of the world’s first LEED Gold-certified passenger terminals, the airport will combine the thermal properties of the concrete structure with roof-mounted photovoltaic panels.
MEConstructionNews.com | November 2020
14
THE Big picture
17
11 10
13 12 14
15
16
10 Saudi Arabia
12 UAE
AMAALA awards D&B contract for Construction Village
Construction of SeaWorld Abu Dhabi reaches 40% mark
AMAALA, the ultra-luxury destination located along Saudi Arabia’s northwestern coast, has awarded Tamimi Global Co (TAFGA) the design and build contract for the construction of the first stage of the AMAALA Construction Village. The agreement also includes the second and third stages of civil and infrastructure works for the project. The development of the Construction Village will employ off-site fabrication and modular construction techniques, thereby reducing the environmental impact of both fabrication and installation of the village.
November 2020 | MEConstructionNews.com
11 Bahrain
Bahrain waterfront tower project begins construction Bahrain has signed an agreement to begin the construction of its first LEED-certified financial invest tower, Future Generation Reserve Tower in the Gulf Of Bahrain. With an estimated construction area of 63,000 sqm., the project will include 38 floors of office accommodation and various other facilities, the project was awarded to Al Ghana Group, following a competitive tender worth about $62.1 million. The project is expected to contribute to the revitalisation of the local economy by attracting more local and international investments to the national economy.
Miral has announced that 40 per cent of construction work has been completed on its SeaWorld Abu Dhabi project. Developed in collaboration with SeaWorld Parks and Entertainment, the project will bring the next generation of marine life theme parks to Yas Island in Abu Dhabi. Built on multiple levels with a total area of 183,000 sqm., it will feature purpose-built habitats and ecosystems that will house different marine species together, as they are in the wild. Scheduled for completion in 2022, the park will feature one of the world’s largest indoor aquariums.
18
THE big picture
15
14 Oman
13 UAE
UAE consortium wins $500 million wind farm project The Egyptian Ministry of Electricity and Renewable Energy has said that it has approved an Emirati consortium’s request for land allocation for a wind farm project. The UAE group is studying the implementation of the wind farm to produce electricity in Egypt, at investments worth about $500 million. New and Renewable Energy Authority NREA has revealed that the wind energy station is expected to have a capacity of about 500 MW, noting that the consortium is currently carrying out twoyear studies, which includes wind studies.
Oman’s Al Mouj Muscat unveils residential neighbourhood Al Mouj Muscat has launched its latest residential neighbourhood, Murooj Lanes priced towards first-time buyers and investors. Located within the Ghadeer District, it is part of the phase one development of Al Mouj Muscat. Al Mouj Muscat began initial construction work in June this year. A mixed-use waterfront development, Al Mouj Muscat is a joint venture between the UAE-based Majid Al-Futtaim Properties, Oman Tourism Development Company (OMRAN) and Tanmia.
15 Thailand
Mitsubishi signs gas power plant contract in Thailand Mitsubishi Power has secured a full-turnkey contract for the engineering, procurement and construction of a 1,400MW power plant in Thailand. The contract has been awarded by Hin Kong Power Company, an independent power producer in Thailand. Mitsubishi will supply two M701JAC gas turbines for the natural gas-fired turbine combined cycle facility for which operations will begin in March 2024 and January 2025, respectively. The contract includes a 25-year long-term service agreement for the project, while Mitsubishi Power will also provide maintenance.
17 Japan
Japan to have new 300MW data centre 16 Vietnam
Vietnam inaugurates $86 million worth wind projects Vietnam has inaugurated two wind projects Lac Hoa and Hoa Dong, with a total investment of more than $86 million, in the city of Vinh Chau in South Vietnamese province. Each wind farm with a capacity of 30 MW, will have eight wind turbines. The two wind power plants are expected to provide power to the national electricity grid once they are completed in the third quarter of 2021. Once the projects come into operation, they will contribute to reducing environmental pollution, as well as help in tourism development.
AirTrunk, a developer of hyper-scale data centres, has unveiled plans to construct a new hyper-scale data centre campus in Inzai, Tokyo. The new facility, AirTrunk TOK1, will allow public cloud customers to scale rapidly to support their growing capacity requirements in Japan. Daiwa House, a Japanese construction conglomerate, has been appointed as the general contractor of the project. The 300MW facility’s first phase – 600 MW – is set to open in late 2021, and will support anchor customer demand. TOK1 will feature seven buildings, set across more than 130,000 sqm. of land.
18 Australia
Australia begins construction of $500 million hybrid power project
Spain’s Iberdrola has announced that construction at Australia’s largest hybrid wind and solar farm has begun. The 317 MW hybrid farm has two main suppliers; Vestas, which will install 50 wind turbines with a 4.2 MW capacity, and Longi, which will deliver nearly 250,000 solar PV panels. Iberdrola stated that 200 new jobs would be supported during the construction of the solar farm, while 20 full-time jobs based on-site will be permanent once construction is completed. Construction is scheduled to be completed in 2021, the company said.
MEConstructionNews.com | November 2020
16
MARKET REPORT
Industry outlook
KSA Construction Outlook for Q4 2020 SAUDI ARABIA
Dr Deva Palanisamy of ProTenders provides an indepth look at the Kingdom of Saudi Arabia’s construction sector in the fourth quarter of 2020, following significant disruption to the sector due to the ongoing impact of the COVID-19 pandemic November 2020 | MEConstructionNews.com
D
ue to coronavirus the kingdom faced significant disruption to the construction market especially in supply chain and onsite delivery. The new slump in oil sales accompanied by a collapse in key non-oil sectors such as travel, tourism and retail has raised doubts about future project opportunities. However, for the first six months of the year shows that Saudi Arabia has weathered the storm fairly well. The construction companies started to rethink their processes and strategies in order to prepare for the new construction market in a post-Covid-19 world. With about $1.6 trillion worth of construction projects planned or under construction, there is no shortage of potential opportunities in the Saudi Arabia’s construction market. We anticipate a total of $17.1 billion worth of contracts to be awarded for the Q4 2020.
1. Saudi Arabia’s contractor awards across the building, infrastructure and oil & gas sectors are forecast to $17.1 billion (Q4 2020). 2. The Urban buildings sector is expected to register the highest contractor awards with $5.9 billion followed by the infrastructure and energy with $5.8 billion and Oil & gas sectors with $5.5 billion. 3. The urban construction sectors are the largest contributor to the construction with 3632 projects worth $712.9 billion. The Infrastructure and energy sector are the second largest with 2163 active projects valued $664.7.4 billion, followed by Oil & Gas, with 282 projects valued $257.5 billion. Although Covid-19 crisis is set to cause a slowdown across the economy in 2020, the Kingdom’s long-term outlook remains positive. The construction market is expected to show significant growth and offer lucrative potential due to its vision 2030, NTP 2020 and ongoing reforms to diversify away from oil.
MARKET REPORT
Value of projects by status ($BN)
Ongoing projects by sector ($BN) Infrastructure
Planning
On Hold
1,635.1 Total Under Construction
534.0
Upcoming projects by sector ($BN)
Urban Buildings
208.5
143.1
613.2
17
211.6
Infrastructure
Urban Buildings
230.8
175.1
534.0 Total
487.9 Total
Oil & Gas
Oil & Gas
Design
207.5
Tender
137.3
113.9
82.0
With about $1.6 trillion worth of construction projects planned or under construction, there is no shortage of potential opportunities in Saudi�
60
200
40
40
100
20
20 Saudi Bin Ladin Group
AECOM
Worley Parsons Engineering
Saudi Arabia Ministry of Transport
Technip
60
Zuhair Fayes Partnership
300
Saudi Consult
80
Saudi Consolidated Engineering Company
80
Royal Commission for Jubail & Yanbu (RCJY)
400
Saudi Electricity Company
100
Saudi Arabia Ministry of Housing
100
Saudi Aramco
500
SNC Lavalin Group
Top 5 coNTRACTORs by value ($BN)
Larsen & Toubro
Top 5 conSULTANTs by value ($BN)
Saipem S.p.A.
Top 5 developers by value ($BN)
Construction contract award forecast Q4 2020 ($BN) Main Contract Award
17.1
Tender
Postponed Award
150
125
100
75
50
120.2 25
Source: ProTenders
137.3
MEConstructionNews.com | November 2020
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ANALYSIS
Private Public Partnerships
Guideline to Development UNITED ARAB EMIRATES
Angitha Pradeep analyses the impact of Abu Dhabi’s efforts to encourage greater collaboration between the private and public sectors, and what it means for future projects
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n September 2020, The Abu Dhabi Investment Office (ADIO) issued new public-private partnership (PPP) procurement regulations to support greater collaboration
between private and public sectors in the emirate. This follows Abu Dhabi’s announcement earlier this year to procure approximately $2.7 billion worth of infrastructure partnership projects under Ghadan 21 – the emirate’s accelerator programme which drives development by investing in business, innovation, and people. Mohamed Al Dhaheri, head of Infrastructure Partnerships at ADIO, tells Big Project ME that the new regulations will empower investors and unlock new opportunities in Abu Dhabi. “It provides greater clarity to the private sector when engaging with the government during the procurement and development phase of any major PPP project,” he says. “In addition, ADIO has also published the Partnership Projects Guidebook as an extension of the regulations to provide a holistic overview of the processes for the development, procurement, and
November 2020 | MEConstructionNews.com
Unlock opportunities The new PPP regulations will empower investors and unlock opportunities in Abu Dhabi.
$2.7bn Abu Dhabi intends to procure $2.7bn worth of infrastructure projects
management of partnership projects in Abu Dhabi. The guidebook will help improve the ease of doing business and support public and private sector entities in delivering projects in a transparent, timely and efficient manner.” The new regulations, which come under Abu Dhabi’s 2019 Public-Private Law (Law no.2 of 2019) is a concrete first step towards the development of a transparent PPP approach to strategic projects in Abu Dhabi, says Nida Raza, head of Capital markets, MENA at JLL. “This will indeed have wide-ranging implications for the entire UAE as it will be used as a reference tool to be adopted as required by other emirates,” she says, adding that the establishment of ADIO and the guidelines should give significant comfort to investors looking at long term stable investment in the UAE. Al Dhaheri states that ADIO collaborates with government departments such as the Department
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of Municipalities and Transport (DMT) to identify, develop and procure infrastructure partnerships, and has made significant progress in developing a sizeable pipeline of PPP projects. “In March 2020, DMT – Abu Dhabi City Municipality awarded a contract to Tatweer for the replacement of 43,000 streetlights in the capital with energy-efficient LED lights. The tender, assisted by ADIO using Abu Dhabi’s PPP framework, was the first street lighting replacement project to be delivered using this model in the UAE,” he cites as an example of this collaboration. Raza adds that it is critical that the first few PPP transactions awarded under these new guidelines are carried out according to the guidebook and a well-publicised transparent process. “UAE has done a few PPP projects in the energy and utility sectors, but each has been unique in its procurement and award process. However, the new guidelines and projects under this umbrella will follow a harmonised approach since investors have historically shied away from investing many millions of dollars in submitting a bid to an unclear and opaque process. This has resulted in fewer repeat bids for similar projects by the same investors,” she explains. Meanwhile, Andrew Ward, director for Advisory Services at Alexander Mac, points out that the UAE has strong PPP credentials in specific sectors. “Within utilities, DEWA is known for effectively utilising PPP to deliver renewable energy and desalination projects. I would expect to see the continued role out of the PPP model across this sector. Transport projects (road, rail, airports) have previously been discussed on several occasions but have yet to come to fruition.” Ward also notes that governments still need to address key questions around risk allocation (specifically demand risk) and the provision of sovereign guarantees to support debt obligations, assuming an availability-based PPP model is used. Looking ahead, Raza says that ADIO’s intention should be to encourage long-term foreign direct investment (FDI) into the country. “Developed countries have established asset managers who are required to invest
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The very nature of Abu Dhabi’s PPP framework is based around infrastructure investment costs to be spread over the life of the asset, thereby enhancing financial sustainability for both the public and private sector” Demand for skills Al Dhaberi says that Abu Dhabi’s PPP projects drive will create demand for expertise and skills, leading to greater employment activities.
Foreign investment ADIO’s intention should be to attract long-term foreign direct investment into Abu Dhabi and the UAE through its new PPP regulations.
in long-term stable assets critical to the country the asset is domiciled in. These new regulations and ensuing projects will provide further opportunities for asset managers to invest in the same asset classes (energy, infrastructure, aviation, healthcare, education, etc.) but in a different and new country or region. “Developed countries typically see c.60-75% of their PPP projects funded through the private sector. It brings FDI, jobs, and accelerates the vibrancy of the economy. It also provides alternative forms of liquidity to the market with the ability to issue public forms of capital (project bonds, securitisations, green bonds, etc.),” she adds.
Additionally, Ward points out that PPPs provide governments with budgetary flexibility, allowing them to spread the cost of infrastructure over a long-term period. To this end, Al Dhaheri acknowledges that due to the large scale of PPP projects, they create demand for expertise and skills, and consequently, an increase in employment activities. “The very nature of Abu Dhabi’s PPP framework is based around infrastructure investment costs to be spread over the life of the asset, thereby enhancing financial sustainability and flexibility for both the public and private sector,” Al Dhaheri concludes.
MEConstructionNews.com | November 2020
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IN PROFILE
ALEC
BIG PROJECT ME SPEAKS WITH ALEC’S DIGITAL COMMITTEE, A TEAM OF HIGH-POWERED EXECUTIVES WITHIN THE GROUP THAT ARE OVERSEEING ITS TRANSITION INTO A MODERN, INNOVATIVE, DIGITALLY EMPOWERED CONSTRUCTION COMPANY
Commited to Change September2020 November 2020| |MEConstructionNews.com MEConstructionNews.com
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MEConstructionNews.com | November 2020
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IN PROFILE
arlier this year, at the start of summer and when uncertainty about the COVID-19 pandemic was at its height, ALEC, the Dubai-based multidiscipline contractor, announced a joint venture with CMiC, a Canadian firm based out of Toronto specialising in ERP and field operations software for the construction industry. In a statement at the time, ALEC said that it had conducted a thorough evaluation of several Enterprise Resource Planning (ERP) solutions and that it had selected CMiC’s complete enterprise platform to run its financial and field operations, because it was able to deliver a ‘single version of truth to users across all functional areas’. “We relied heavily on a host of standalone applications to compensate for the limitations of our legacy ERP,” said Henry Loubser, Enterprise Resources Planning Manager at ALEC, at the time.
Our vision is to be the region’s leading innovative construction group, and we are actively working towards making that a reality, through our willingness to constantly enhance our processes and ways of working” Transition leader John Deeb is ALEC’s CFO and the leader of the company’s Digital Committee, which is managing the company’s transition.
1,000
Number of employees connected via HIVE
November 2020 | MEConstructionNews.com
“We needed a platform that would consolidate, standardize, integrate and automate, which CMiC has demonstrated with their impressive customer roster, proven R&D track record and unparalleled industry expertise.” ALEC has stated that its vision is to become the most ‘technologically innovative construction group in the Middle East’. Therefore, it believes that adopting construction software will allow it to optimise productivity, minimise risk and drive growth by planning and managing all financials, projects, resources, and content assets.
To execute this vision, the contractor’s leadership has created what it calls a ‘Digital Committee’. Headed by John Deeb, ALEC Group CFO, the committee’s role is to drive digital initiatives within the company and manage its transition into being a leading, digitally enabled construction entity. The rest of the team consists of: Henry Loubser, leader of the ERP Implementation; Najib Dalank, IT manger; Arsen Safaryan, BIM manager; and Imad Itani, innovation manager, bringing together a vast amount of experience and industry knowledge to manage the transition.
IN PROFILE
Digital transformation has become an increasingly important talking point for the construction industry as it looks to recover from the impact of the pandemic. According to Deloitte’s Engineering and Construction Industry Outlook, 2019 saw an array of digital technologies transform how many engineering and construction firms operate, but the impact of COVID-19 has increased the need for companies to have an inclusive and comprehensive digital blueprint in place if they wish to realign their businesses and operational processes to a new future. Given the unprecedented opportunities that innovation and technology can provide, Big Project ME sits down with ALEC’s for an in-depth discussion about its digital transformation strategy, and how its implementation will shape the future of the company for years to come. Given the many challenges this year has thrown up, how has technology helped ALEC cope? There is no doubt that the pandemic has impacted industries in the region and worldwide, whether it be to cashflow or via immense pressure on the supply chain. However, in spite of the many challenges brought about by COVID-19, this year has given us – at ALEC – the opportunity to learn, adapt, and overcome, whilst becoming
Future of construction Through the implementation of a new ERP, BIM utilisation and the use of software and digital solutions, ALEC is embracing construction’s future.
2021
ALEC’s BIM strategy runs to 2021
even more agile, efficient, productive, and cost effective than ever before. Our vision is to be the region’s leading innovative construction group, and we are actively working towards making that a reality, through our willingness to constantly enhance our processes and ways of working. We created an Innovation Department a couple of years ago, which has been responsible for driving the implementation of over 100 innovative initiatives per year. We have also formalised a digital strategy that aligns with the company’s business strategy. This digital strategy has short- and
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long-term initiatives that focus on the current business challenges while uncovering new revenue streams using digital platforms to enable new business models that will increase business resilience and provide sustainable future growth. We are also currently in the middle of digitising our core at ALEC through our ERP implementation called HIVE, which aims to connect more than 1,000 employees, over 53 applications, 219 core processes, and scores of departments/business units/sites. Our BIM strategy is already in place and has a roadmap until 2021 to ensure ALEC remains a leader in this field. We have tested multiple advanced technological solutions including 3D printing and robotics and have a dedicated team developing Modular solutions. Through the implementation of a new ERP, increase in BIM utilisation, as well as regular introduction of software and digital solutions, data analytics, modular technology, 3D printing and tapping into Robotics; we are aligning ourselves with the future of construction. How has the COVID-19 pandemic impacted the rollout and implementation of these strategies? COVID-19 has only accelerated our digital strategy. We believe that our
In spite of the many challenges brought about by COVID-19, this year has given us the opportunity to learn, adapt, and overcome, whilst becoming even more agile, efficient, productive, and cost effective” MEConstructionNews.com | November 2020
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IN PROFILE
It has been about implementing our digital strategy, upskilling our teams, aligning our capabilities with our initiatives, and scaling out value to our people and customers, while still introducing new technologies” industry thrives via innovation – we see this particularly in how technology has advanced and bettered our processes, year-on-year. This year has allowed all of us to become even more agile and utilise technology. In 2019, it was all about strategically assessing where we are, the state of technology in the market, the needs of our customers both internally and externally, and what the most effective path in driving business prospects were moving forward. We have managed to introduce more than 19 digital initiatives and worked with partners from all around the globe to complement our digital capabilities.
Meanwhile in 2020, it has been all about implementing our digital strategy, upskilling our teams, aligning our capabilities with our initiatives, and scaling out value to our people and customers. We are still investigating and introducing new technologies regularly to solve more challenges on our projects. How did ALEC adapt to remote working and what processes were put in place to ensure work wasn’t interrupted? In 2019, we had fully migrated all our services to the Cloud and established
November 2020 | MEConstructionNews.com
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Number of digital initiatives introduced at ALEC so far Innovation leaders The Digital Committee is keen to establish ALEC as an innovation leader within the industry, says Najib Dalank.
our second Cloud tenancy for redundancy, business continuity and maximisation of services. This cloud migration provided ALEC the strong foundation to respond to the pandemic situation faster and seamlessly transition to remote working by providing high levels of digital workplace tools adoption like Microsoft 365, Microsoft Teams, OneDrive, Power Platform, and digital signature solutions. In fact, productivity was enhanced, thanks to our incredible team and their passion for efficiency and constant improvement. By utilising our growing Building Information Model (BIM) environments to collaborate and speed up the quality and delivery of outputs, we can streamline our processes. We partner with like-minded organisations, leading consultancies, tech companies, start-ups, universities, and supply chains to continuously review how we improve what we do, align our efforts, and help lead the way the industry operates. What were some of the major challenges the Digital Committee has encountered during this transition? And what have been some of the most important lessons you’ve learnt along the way? Actually, we were facing challenges
IN PROFILE
We were facing challenges in technology adoption before the pandemic, but it (the pandemic situation) knocked through a lot of longstanding resistance and changed people’s mindsets as they did not have other choices”
in technology adoption before the pandemic, but it (the pandemic situation) knocked through a lot of long-standing resistance and changed people’s mindsets as they did not have other choices. From a technical point of view, there were no major challenges as we were already in the midst of digitising our core at ALEC, and our teams were well equipped to make the move to online/remote working. However, in the past six months, we have learnt how truly revolutionary technology can be. When we had to shift to remote working, we were fortunate to have a well-established foundation that provided us easy access to the
Encourage creativity Embracing technology has allowed ALEC’s team to explore new ideas and has encouraged creativity on project delivery and operations.
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Number of objects ALEC has 3D-printed
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information, data, and processes in a time when we needed it the most! With Microsoft Applications and BIM software we have managed to upkeep our business and maintain key communication with our partners and stakeholders. It has taught us how imperative innovation is in each aspect of our business, and how we should continue to encourage creativity and venture beyond our comfort zones. What sort of new construction technologies are you now implementing to improve efficiency and productivity – both on site and in the office? We have an internal IT Applications
MEConstructionNews.com | November 2020
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IN PROFILE
team that work closely with the business to solve urgent business challenges like process automation, employee self-services, mobile solutions, dashboards and KPI’s management. We have also recently signed an enterprise agreement with VisiLean, Holobuilder, Cranetime and are working with many other partners to enhance and increase our operation efficiencies.
We are also utilising asset tracking solutions across many of our assets to get real time data to allow us to make informed decisions. ALEC also engages in corporate accelerator programs allowing us to tap into the most innovative construction start-ups to solve some of the construction challenges and remain on the forefront of technological advancements Furthermore, we are focusing on
Over the course of the next few years, we will continue to invest in people, processes, and innovative technologies, which will set us apart as the leading construction group in the regional industry� November 2020 | MEConstructionNews.com
Real time data ALEC is utilising asset tracking solutions to get real time data that allows for informed decisions.
Introducing solutions Henry Loubser says that the Digital Committee is introducing different solutions in specific areas of the business.
Modular technology and we have a dedicated team addressing that market. We have also introducing different robotic solutions in specific areas where the technology has matured taking into consideration the region, our workforce, and the need on our projects. Our innovation team is working with several robotic companies from around the globe on some promising robots. 3D printing has been utilised extensively with around 20 items printed to date. We are focusing on elements where the technology adds value and have aligned ourselves with some of the leading 3D printing firms. Finally, how do you see ALEC evolving as a construction company? We are an organisation that strives to constantly be the best version of itself, hence why our teams work so hard to continually improve our processes and procedures. Over the course of the next few years, we will simply continue to invest in our people, processes, and innovative technologies, which will set us apart as the leading construction group in the regional industry.
DECENTRALISED WATER TREATMENT:
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REDUCE OPEX
GRUNDFOS
Trademarks displayed in this material, including but not limited to Grundfos, the Grundfos logo and “be think innovate” are registered trademarks owned by The Grundfos Group. All rights reserved. © 2020 Grundfos Holding A/S, all rights reserved.
iSOLUTIONS
PREVENT HEALTH RISKS
AVOID RISK OF NON-COMPLIANCE
A SMART SOLUTION FOR YOU
INTELLIGENT WATER CONDITIONING AND BLOWDOWN CONTROL Avoiding biological contamination and maintaining proper water quality optimises cooling water’s operational efficiency. Water conditioning for this purpose requires extremely accurate dosing of chemicals. Grundfos iSOLUTIONS offers a smart dosing solution that reliably manages chemicals, surveillance and reporting. The solution combines our DID measuring and control system with our SMART Digital dosing pump technology, our chemical management app and cloud-based monitoring system. Not only does the solution reduce chemical, water and energy consumption but it also eases compliance reporting when authorities require. Read more about the benefits of Grundfos iSOLUTIONS in decentralised water treatment at grundfos.ae
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| MEConstructionNews.com July-August2020 November 2020| MEConstructionNews.com
PROJECT PROFILE
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Ras Al Khaimah Wastewater network Project Name: Ras Al Khaimah Wastewater Network Project Developer: Ras Al Khaimah Wastewater Agency Project partner: Grundfos Total length of network: 330 kilometres Total number of pumping and lifting stations: 13 Project timeline: 45 days in total
Water Change Big Project ME profiles how Ras Al Khaimah Wastewater Agency and Grundfos came together to transform the performance and efficiency emirate’s wastewater collection network through the use of digital solutions | November 2020 MEConstructionNews.com MEConstructionNews.com| July-August
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PROJECT PROFILE
s one of the seven emirates of the UAE, Ras Al Khaimah is situated in the northern part of the country and covers an area of 2,486 square kilometres, with a population of approximately 416,000 as of 2018. Home to many crucial industries such as manufacturing, cement, ceramics and tourism, the emirate is an important contributor to the UAE’s economy and plans to continue its development and growth over the coming years. In order to maintain this growth, the government of Ras Al Khaimah is committed to investing and developing the emirate’s utilities and infrastructure, part of which is its public wastewater collection system, which consists of 330 kilometres of underground network and 13 pumping and lifting stations. Ras A Khaimah Wastewater Agency
After four months of testing, specific energy consumption reduced by up to 25%. There were reduced site visits, breakdowns and we were getting a complete overview of operating information” Continuous development RAKWA aims to continuously develop its operations and increase the highest levels of operational efficeincy.
330
Size of RAK’s wastewater network, in km
November 2020 | MEConstructionNews.com
(RAKWA) is the agency responsible for the building and management of the public wastewater infrastructure, as well as regulating wastewater activities in the emirate. RAKWA is one of four agencies forming the Public Service Department (PSD) in Ras Al Khaimah, and its operations and maintenance department is responsible for the smooth running of the wastewater collection network, pumping and lifting stations, and four wastewater treatment plants. As part of its implementation of its strategic objectives – which are derived from the strategic plan of the Public Services Department and
the government of Ras Al Khaimah – RAKWA has partnered with Grundfos for the continuous development of its sewage pumping systems. Aiming to continuously develop operations and increase the highest levels of operational and financial efficiency, this partnership has been in place since 2007, when Grundfos was selected to provide pumps for the wastewater collection network’s pumping systems. “The wet well pumps in this system were running at maximum speed, regardless of any requirement for different flow patterns posed by variable operational conditions. This was reflected in the energy consumption bills at these pumping stations. Furthermore, it applied stress on the maintenance function of RAKWA, due to the high number of starts per hour of these pumps,” says Walid Abdelrahman Mohamed, O&M department manager for RAKWA. “[The] legacy systems also lacked remote monitoring tools, and consequently the operational cost represented in transportation and manpower were in the highest trend due to the need to conduct a number of visits daily to these pumping facilities, despite the inefficiency of such a monitoring method.” Therefore, having worked in close cooperation with Grundfos for many years to develop the system, RAKWA
PROJECT PROFILE
turned against to the Danish firm for help in optimising its operations. Consequently, the company proposed the use of its Grundfos Remote Monitoring system – a cloud-based technology that allows RAKWA’s O&M team to not only monitor its pumping assets in real time, but also to control these assets remotely, based on operational requirements. “The system also enabled a wide range of data analysis, which helped the RAKWA maintenance team to shift from reactive maintenance to predictive maintenance,” adds Mohamed. Phase one of the project included the completion of installation and modification of existing control
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Number of pumping and lifting stations
Data analysis The new system enabled RAKWA to carry out a wide range of data analysis, which helped the team shift to predictive maintenance.
circuits. This took 30 days to carry out, while commissioning and functional tests took just five days. This phase had three professionals deployed on the project. Phase two covered the installation and commissioning of new control panels. This took 15 days and was tied in with existing GRM systems and the creation of access accounts. Two professionals were deployed on this phase, and they completed the work on time, RAKWA says. “Grundfos delivered a dedicated pump controller for wastewater pumping stations that would help solve the operational problems and enable a detailed overview of flow patterns at every pumping station. The controller
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The wet well pumps were running at maximum speed, regardless of any requirement for different flow patterns posed by variable operational conditions. This was reflected in the energy consumption”
MEConstructionNews.com | November 2020
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PROJECT PROFILE
Grundfos delivered a dedicated pump controller for wastewater pumping stations that would help solve the operational problems and enable a detailed overview of flow patterns at every pumping station”
offers several excellent features for wastewater networks, including energy optimisation for pumping stations with built in VFDs, and an advanced flow estimation feature.” The partnership between Grundfos and RAKWA has also resulted in the agency applying the company’s iSOLUTIONS system on its pumping and lifting stations. This has helped to overcome the limiting elements towards improving operations. These were pre-identified upon setting up the development plan, and are as follows: • Most of the maintenance activities were reaction-based due to the unavailability of a condition monitoring operating data analysisbased system. That allowed the
November 2020 | MEConstructionNews.com
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Number of days taken to implement the project
•
• •
•
Long relationship Grundfos and RAKWA have been working together to manage the wastewater network since 2007.
•
transformation to a pro-actionbased maintenance system Late response to system failures caused sewage overflows and costumer dissatisfaction High repair cost due to the reactionbased maintenance system High energy consumption due to the fixed speed operating system of pumps High transportation and manpower cost of the physical monitoring system followed due to the absence of an on-time monitoring system of asset’s condition and its operation performance Difficult to manage the network and pumping system in abnormal conditions e.g. heavy rainfall
PROJECT PROFILE
After analysing the problems faced by the customer, it was clearly understood that the reason for most of the issues is outdated pump control and lack of on-time monitoring, Grundfos says. Based on the study, Grundfos’ technical team proposed Grundfos iSOLUTIONS offerings such as dedicated controls and Grundfos Remote Management. Having used the company’s pumps for many years, the RAKWA team were convinced about the features and benefits on offer. As they already trusted the performance of the pumps in their assets, they agreed to upgrade three main pump stations with Grundfos dedicated controls and connected to Grundfos Remote Management to monitor the operation of their stations remotely and control the pumps remote control centres on their smartphones, thereby avoiding unnecessary site visits. The team are also able to get SMS and email notifications on their phones when there is an alarm or warning at the station. The technical team at Grundfos was able to engineer and design customised control circuits by using the existing PLC control panel wiring diagram because the client said that it needed all the interlocks, protections, and features of their existing system to be remain as
they were, but also wanted the new system to have the additional feature of dedicated controls with VFDs. “After four months of testing, the results were clear – specific energy consumption reduced by up to 25%. There were reduced site visits, reduced breakdowns and we were getting a complete overview of operating information via web access, with SMS/Email notifications giving us an opportunity to optimise the performance of the network,” says Mohamed. He adds that the RAKWA Agency stands to gain several operational savings, such as: lower specific energy,
Customised controls Grundos’ technical team was able to engineer and design customised control circuits for RAKWA.
25%
Reduction in energy consumption
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a reduced need to install expensive external flow meters, reduced demand for onsite inspections through fact-based maintenance planning, and opportunities to reduce infiltrating water in the network. One of the major challenges on the project was that the wastewater network of RAKWA was fully operational, and it was not possible to have a complete shutdown of pumping stations. As a result, the control panel refurbishment job needed to be performed on an operating pump station, without complete shutdown, Mohamed explains. “To address this challenge, the Grundfos team and the RAKWA O&M team planned and managed to execute the refurbishment works via a step-by-step approach, which isolated individual sections whenever required, without affecting the operations of the pump stations.” As a result, we could successfully upgrade of one pumping station and seven lifting stations using Grundfos Intelligent controls and Grundfos Remote Management. As of today, RAKWA’s entire sewerage network’s pump stations and lifting stations use Grundfos Dedicated Controls and Grundfos Remote Management systems to reduce their operating cost of their pumping station by up to 12%, he concludes.
[The] legacy systems also lacked remote monitoring tools, and consequently the operational cost represented in transportation and manpower were in the highest trend due to the number of visits daily” MEConstructionNews.com | November 2020
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COMMENT
Industry insight
Burcin Kaplanoglu Oracle Construction and Engineering
The worksite of tomorrow, today
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he construction industry is finding itself learning to respond to this new and unprecedented era of disruption. From global supply chains disruptions to adopting strict physical distancing rules to keep sites open, it has resulted in a slowerthan-usual progress on many projects. While the delays have been exacerbated by COVID-related challenges around health, safety and productivity, it only reveals what the industry already knows – that it remains one of the least digitised industries, with many on-site projects completed in the same way they were being done decades prior. Here are a few solutions available that can help address the current unique industry challenges, ensuring construction projects are progressing with as little disruption as possible:
Remote visual monitoring of construction sites In lieu of on-site inspections, construction companies have begun embracing a variety of remote visual tools, including drones, laser scanning, light detection and ranging technology (LiDAR), to remotely monitor the progress, quality and security of their projects. By conducting field inspections and scheduling reviews from the safety of workers’ own homes, these new technologies can enable teams to review what is there versus what should be there to sub-centimetre accuracy. This allows for social distancing and enables project teams to revise contractors’ work sequences to physically separate otherwise risky work interactions. In addition, site cameras can also provide real-time monitoring and security. For example, November 2020 | MEConstructionNews.com
pan-tilt-zoom (PTZ) cameras let users monitor various areas of the site and zoom into areas of interest while creating panoramic images and time-lapse videos. Site cameras use thermal sensing and edge-based analytics to sense motion, which triggers email/SMS/text alerts. In addition, fixed cameras are increasingly leveraged to enhance remote collaboration between stakeholders while also capturing images and time-lapse videos to send regular updates. Social distancing on construction sites In the case that on-site inspections are necessary, construction companies have found success with artificial intelligence (AI) in improving jobsite safety and mitigating risk. This is due to its ability to provide more safety coverage without sending additional people to the site - creating automated reports to help with mitigation plans and documentation. With sensors attached to the workers, it is also possible to emit a progressively louder alarm as a reminder whenever workers are too close to each other. The alarm will serve to gradually change and improve the habits of workers to practice safe social distancing. In addition, in the event that there is a confirmed case of COVID-19 on a worksite, an employer can use historical data captured passively by the worker’s device to gauge who may have been exposed. Bring people, information, and processes together To protect teams, operations and ultimately project outcomes, it is important that all project schedules are updated throughout the project. This means data silos and offline recordkeeping are minimised. It is remarkable that today’s high-tech buildings and infrastructure assets are contrasted with dated, low-tech processes. Yet as a result of the ongoing global crisis, construction industries are finding themselves pursuing – and in some cases fast-tracking - digital transformation in order to continue to operate in this new reality. Whether it is to mitigate the direct impacts of COVID-19 or new ways to approach project delivery, it is clear that the digital agenda cannot be ignored. Burcin Kaplanoglu is Executive Director, Innovation Officer at Oracle Construction and Engineering.
Ashish Chaturvedy Ducab Cables
Great power comes with great responsibility
T
he UAE has traditionally been a global marketplace with products sourced from all over the world. This opens competitive options for finding the best value products and materials, especially when it comes to those needed for the nation’s infrastructure projects. However, while monetary “value” is always a consideration in sourcing these materials, quality must remain king. This is all the more important as COVID-19 reshapes global supply chains and some infrastructure players look to new alternative providers. The quality consideration is particularly true in areas like power cabling and wiring. There is actually a huge discrepancy between market leaders and grey market suppliers. Unfortunately, the presence of counterfeit and uncertified cables is a global phenomenon. Even the use of legal but untested cables has started to climb in recent years, as they are almost always cheaper to produce and store.
For developers and business owners in the UAE today, buying from the source is always the best way to ensure cabling products purchased are genuine”
COMMENT
Whether intentional or not, the use of counterfeit cabling products not only funds dubious businesses – it puts lives at risk. Such cables pose a threat when brought into homes, commercial buildings, infrastructure projects, and so on. Especially now that more of us are learning and working from locations that we weren’t just a few months ago, cabling and wiring must be up to the task of carrying power to those alternative locations where it’s needed most. UAE government offices have done an admirable job of keeping the grey market in check. Yet it is also up to developers, business owners, and even consumers to be mindful of what they are purchasing. Genuine cables are tested to industry standards for both performance and construction. They bear hallmarks that certify them for the applications they’re intended for, whether that is for use inside residential projects, in public transport systems, or to simply connect your coffee maker in the kitchen. Again, uncertified cables are generally substandard. This can cause poor performance, damage equipment, and can pose a fire risk. Not only can they cause a fire, but they can hinder evacuation measures when used in residential and commercial buildings. Cables tested for fire safety, on the other hand, are designed to withstand heat, and, most importantly, have low smoke and fume emissions that provide extra time to escape in a fire emergency. For developers and business owners in the UAE today, buying from the source is always the best way to ensure cabling products purchased are genuine. When that’s not feasible, requesting safety hallmarks and certifications is a must, and should be easily attainable in purchase orders. Manufacturers can do everything possible to earn quality standards and demonstrate them. But it will take sustained cooperation between UAE industrial entities, government regulators, and local retailers to minimise risk to life and property moving forward. For more information, the UAE Ministry of Interior General Directorate of Civil Defense provides official resources on fire safety codes, preventive safety, and more. Ashish Chaturvedy is Head of Marketing at Ducab Cables.
Matthew Tribe CallisonRTKL
10 principles of resilient urban environments
A
ccording to Pricewaterhouse Coopers, the GCC is one of the most highly urbanised parts of the world with 85% of the population living in cities, and this is expected to rise to 90% by 2050. As such, the focus is now on how to make urban spaces function optimally while enhancing quality of life as communities in the region continue to transform and evolve. Urban behaviour is changing the ways that people live which affects the planning, design, development, governance, and operation of cities. Factors such as climate change, behavioural change, security, and health threats require the region’s cities to be prepared for the future to create happy and healthy communities. Building resilience is an expanding theme in today’s world. Now more than ever, the ability to cope and adapt to challenging and changing circumstances and emerge stronger than before is essential in helping cities navigate uncertainties The level of change and flexibility that cities need to introduce requires a willingness to turn disruptions such as COVID-19 into an opportunity for lasting change. If nothing else, the pandemic has provided an even greater incentive for the public and private sectors to come together to take rapid action that results in the building of even stronger communities than before. The 10 principles of resilient cities outlined by CRTKL are as follows: 1. Density and polycentricity: Dense urban environments operate more efficiently, walkable and have greater transportation options. 2. Mixed use: Restrictive land use
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regulation and the zoning approach have led to segregation, resulting in the deterioration of some neighbourhoods in the modern cities. Mixed-use urban systems create layers of communities and visitors; reducing the need for private vehicles, generating foot traffic and fostering interaction among people, which are all factors that benefit local economies. 3. Mobility: A resilient city promotes walkability and social interaction through the seamless connections between its districts. 4. Walkability and greenery: Neighbourhood plans must optimise and provide all amenities for all our day-to-day needs, this distance is widely regarded as being a 10 to 15-minute walk or 800-metre radius. 5. Identity and attraction: The enhancement of a city identity and developing a greater sense of place, the preservation of its natural assets, landscapes, and cultural heritage together within rich and ever-evolving art and cultural offerings is essential. 6. Diversity, inclusivity, equality, accessibility, and safety: Every urban environment should celebrate diversity and breed inclusivity. For a community to thrive and become future proof, it is vital for members to enjoy places where they feel identified, safe, and accepted. 7. Affordability: Currently, governments must prioritise investment in basic infrastructure for the mid-to-low-income citizens. 8. Carbon neutrality: To invert the effects of climate change, which include the rise of the sea level, hurricanes, and droughts. Urban environments of the future should generate 100% of their energy needs on-site and with the built environment proficiently energy efficient. 9. Technical and digital innovation: The ability to absorb, recover and prepare for future shocks depends on data availability and the capacity to analyse them promptly. If an urban environment aims to survive, it must allow data to be collected and be used responsibly. Citizens should be able to access this data in real-time and adapt their behaviour accordingly. 10. Flexibility: The principal characteristic of urban systems is their constant transformation. Communities change in time and they develop different needs and demand new services. Our neighbourhoods must be able to evolve alongside them. Flexibility is key. Matthew Tribe is executive director and office leader, Dubai for CallisonRTKL. MEConstructionNews.com | November 2020
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Middle East tenders UAE Residential
Nirvana Residential Building Territory Palm Jumeirah, UAE Client Royal Centurion Real Estate Development Budget $20 million Description The project’s scope of work consist of an 8-storey residential building located at Palm Jumeirah, Dubai. The project also includes the construction of parking facilities, installation of elevators, landscape works and associated facilities. COMPLETION 30/12/22 Oil & Gas
Umm Shaif Field Long Term Development Plan (Phase 1) Territory Umm Shaif, UAE Client ADNOC Offshore Budget $400 million Description The project’s scope of work involves the construction of a long-term development plan (LTDP-1) located at Umm Shaif, Abu Dhabi. A Long-Term Development Plan that aims to de-bottleneck the capacity constraints in the existing Umm Shaif infield pipeline network and includes several new offshore facilities. The project also includes three new wellhead towers, one riser platform, new alpha towers, other associated infrastructure, installation of multiple pipeline segments, de-bottlenecking of the existing pipeline network, water injection facilities, improvement works for 30 wells on existing wellhead towers and other
associated infrastructure. ADNOC aims to sustain and further increase oil production from the field to 360,000 barrels per day from the existing and undeveloped reservoirs. The development plan is implemented as Umm Shaif’s current oil production of 275,000 barrels per day is expected to decline in the coming years. The Abu Dhabi-based giant is expected to execute several phases for the further development program at Umm Shaif over the next 10 years. The first development phase (LTDP-1) is expected to sustain the offshore field’s plateau production from 2024 to 2028. The project is part of the Abu Dhabi energy major’s strategic objective to achieve 4 million BPD of overall oil output spare capacity by 2020-end, and 5 million BPD by the end of 2030. COMPLETION 31/12/24
villas located on Dubai-Al Ain Road, Dubai. The villas in three architectural styles, spruce, may bell, iris boast easy access to a series of outdoor parks to enjoy. The epitome of the indoor, outdoor lifestyle. The project also includes cycling tracks, jogging tracks, a basketball court, children’s play area, an amphitheater, an observation tower, a community center, food kiosks, and parking facilities. COMPLETION 30/03/23
Residential
The Valley Eden Villas Territory Dubai-Al Ain Road, UAE Client Emaar Properties Budget $205 million Description The project’s scope of work consists of a residential community with 3 and 4 bedroom
SAUDI ARABIA Infrastructure
King Salman Bin Abdulaziz Road & Othman Bin Affan Road Intersection
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Budget $32 million Territory Riyadh, Saudi Arabia Client Saudi Arabia Ministry of Transport Description The project’s scope of work involves the intersection of King Salman Bin Abdulaziz road and Othman Bin Affan road located in Riyadh, Saudi Arabia. The project also includes intersection bridges, landscaping works, installation of the signaling system, infrastructure works, street lights, and associated works. COMPLETION 30/07/22 Infrastructure
Al Awali Rainwater Drainage Network (Phase 1) Budget $72 million Territory Al Awali and Quba Municipality, Madinah, Saudi Arabia Client Madinah Municipality Description The project’s scope of work involves the construction of a rainwater drainage network at Al Awali and Quba Municipality, Madinah, Saudi Arabia. The project also includes laying of pipelines, drainage system, infrastructure works, water collection tanks,
MEConstructionNews.com | November 2020
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TENDERS
and associated facilities. COMPLETION 30/12/23 Energy, Infrastructure
Red Sea Development - Power Generation & Utilities Budget $500 million Territory Red Sea Tourism development, Saudi Arabia Client Public Investment Fund 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 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. The peak sewage flow of the development is expected to reach 34,000 cubic meters per day by 2030. For the waste treatment development, the PPP contract will cover collection, automatic recovery and waste-to-energy
production for up to 30 tonnes per day under the first day. This will rise to 55 tonnes per day by 2030. COMPLETION 30/11/25
OMAN Infrastructure
Barka & North Al Batinah Independent Water Plants Territory Barka and North Al Batinah, Oman Client Oman Power & Water Procurement Company Budget $320 million Description The project’s scope of work involves the construction of a new water desalination plant of approximately 100,000 cubic meters per day (22 million
imperial gallons per day) and 150,000 cubic meters per day (33 million imperial gallons per day) located at Barka and North Al Batinah in Oman. The project also includes water desalination plants, seawater intake system, pre-treatment system, post-treatment system, laying of pipelines, installation of instrumentation and control system and a pumping station. COMPLETION 30/06/23 Industrial
Barka Dates Collecting Centers Territory Barka, Muscat, Oman Client Oman Ministry of Agriculture & Fisheries Budget $100 million Description The project’s scope of work involves the construction of six dates collecting centers, dates processing plant with a production capacity as 80,000 tonnes per annum, storage facilities and associated facilities in Barka, Muscat, Oman. COMPLETION 30/12/23 Hospitality
Royal Hospital MultiStorey Car Parking Facility (Phase 2) Territory Muscat, Oman Client Oman Ministry of Health Budget $20 million Description The project’s scope of work involves the construction of a multi-level parking facility at the Royal Hospital in Muscat, Oman. COMPLETION 30/09/23
BAHRAIN MIXED-USE
Wafra Towers Budget $85 million Territory Bahrain Bay, Bahrain Client Wafra Real Estate Company Description The project’s scope of work consists of mixed-use November 2020 | MEConstructionNews.com
TENDERS
Infrastructure
twin towers each comprising 49 floors located in Bahrain Bay Development, Manama, Bahrain. The landmark towers project comprising the housing, offices, retail and public spaces. The project also includes studio, one, two, and three-bedroom units. The podium contains grade-a office space surrounding a central landscaped courtyard above parking, retail and highquality public realm. The entire development benefits from an energy efficient central plant, ensuring that the project’s environmental credentials are established from the outset, common areas accessible to all residents–such as cafés and wellness centers–are dispersed throughout the tower, the largest of which is a sprawling roof garden on the tenth floor. COMPLETION 30/09/22
Al Jahra East Pumping Station (Phase 1) Territory Al Jahra, Kuwait Client Kuwait Ministry of Public Works Budget $75 million Description The project’s scope of work involves the construction of a pumping station located at Al Jahra, Kuwait. The project involves a capacity of 79000 cubic meters per day of water. It also includes water tanks, chambers, installation of pumps and associated facilities. COMPLETION 30/11/22 MIXED-USE, INFRASTRUCTURE
South Al Jahra Labour City
Energy
Um Al Hassam 400kV Grid Substation Expansion - Civil Works Package Budget $25 million Territory Um Al Hassam, Bahrain Client Bahrain Electricity & Water Authority Description The project’s scope of work involves an extension of 400kV & 220kV GIS Switchgear at Um Al Hassam 400kV Grid Substation to enable connection of the additional Transformer (IBT No.4). The scope includes installation of auxiliary power supply system, control/protection systems, metering system, foundations/ bays for transformer, civil and associated works. COMPLETION 30/12/22 Aviation
Bahrain Aircraft Engine Runup Facility Budget $50 million
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Territory Bahrain International Airport, Bahrain Client Bahrain Airport Company Description The project’s scope of work involves the construction of an aircraft run-up facility, aircraft parking facilities, warehouses, administrative space, workshops, jet blast deflector and associated facilities at Western Apron in Bahrain
International Airport, Bahrain. COMPLETION 30/12/23
KUWAIT Retail, Residential
Jaber Al Ahmed Township (J3) Territory Al Jahra, Kuwait Client Mabanee Company Budget $255 million Description The project’s scope of work consists of a residential and retail development located at Al Jahra, Kuwait. The project includes 112,957 square meters residential space, a 104,314 square meters mall, parking facilities, a garden area and a development area of 217300 square meters. COMPLETION 30/05/24
Territory Al Jahra, Kuwait Client Kuwait Authority for Partnership Projects Budget $500 million Description The project’s scope of work consists of a mixed use development for expatriate workers located in Al Jahra Governorate, Kuwait. The project will accommodate 20000 workers. The project involves residential areas, commercial and neighborhood services, community services, municipal and utility services and infrastructure facilities. The project will cover an area of 1,015,000 square meters located in South Al Jahra along the Sixth Ring Road. It will also include public utilities such as mosque, police station, fire station, a clinic, post office, etc. There will also be commercial establishments such as supermarkets, sports center, restaurants, bakery, labor accommodation, landscape and playgrounds. The project aims to provide housing for expats with low incomes in peace with good environmental and service standards that include all security, health, entertaining and social facilities for employment. COMPLETION 30/06/24
MEConstructionNews.com | November 2020
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PROGRESS REPORT
Final update
Construction work on Marassi Al Bahrain reaches 56% completion mark Design and construction supervisor Pace says that steady progress is being made on landmark mixed-used project
P
ace, a leading Kuwait-based regional multidisciplinary consultancy
firm, has announced that steady progress is being made on Marassi Al Bahrain, a landmark mixed-use project by Bahraini developer Diyar Al Muharraq, which will feature both commercial and residential properties. In a project update, Pace said that nearly 56% of the project has already been completed, with final structural works, external facades, hotel fit-out, and external roadworks, as well as all electromechanical works, are currently underway, it stated. The project spans a plot of 165,790sqm and is set to become one of the kingdom’s major entertainment destinations.
November 2020 | MEConstructionNews.com
Main attraction The Marassi Al Bahrain mixed-use destination will be a major entertainment attraction for the Kingdom.
470 retail and anchor units in Marassi Galleria
The project is in the north eastern corner of the kingdom, 10km away from the capital Manama, and accessible by various means of public transportation. With an estimated completion date in the fourth quarter of 2021, Marassi Al Bahrain is well on its way to becoming a landmark of Bahrain’s urban and architectural landscape. It will feature a high-end shopping mall, Marassi Galleria, which provides 470 retail and anchor units on a 200,000sqm total floor area, housing leading global brands, many of which will be making their Bahrain debut. The mall will also contain an indoor aquarium, a cinema complex, supermarket giant Carrefour and overall mall retail delivery services.
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