Volume 4 Issue 017, July - August 2015

East Africa Informative Journal in Developing Infrastructure

Volume 4 Issue July --December August 2015 Volume 4 Issue 019, 017, November 2015

valley view business park

A NEW CONCEPT IN DESIGN ARCHITECTURE

Is gas boom in East Africa about to burst?

Best construction practices in Singapore worth emulating Why construction industry in Africa should embrace innovation TRANSPORT

ENERGY

HOUSING

COMMUNICATION

WATER

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East Africa Infrastruture & Engineering Review | November/December 2015

EDITORIAL

Editor Eric Obwogi Advertising Executives Jackson Okoth - Kenya Collins Ogonda - Kenya Jobunga Ndere - Uganda W. Minga - Tanzania Eva Gichohi - Rwanda Media Manager Peter Acham Design and Layout Paul Anyama Published and Printed by Spako Media Limited P.O. Box 4517-00100 Nairobi - Kenya Tel: +254 20 2395373 Cell: +254 712 896013 / +254 773 547046 Email: admin@eainfrastructure-engineer.com Web: www.eainfrastructure-engineer.com

East African Infrastructure & Engineering Review Journalis published bi-monthly and is circulated to members of relevant associations, governmental bodies and other personnel in the Building & Construction Industry as well as suppliers of plant and equipment, materials and services in East Africa.

The Editor welcomes articles and photographs for consideration. Materials may not be reproduced without written permission from the publisher.

The publisher does not accept responsibility for the accuracy or authenticity of advertisements or contributions contained in this journal.

Views expressed by the contributors are not necessarily those of the publisher. ©All rights reserved

Cement manufacturers’ case for better business operating environment

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ontinuing efforts to plug the huge deficit in infrastructure, especially housing, commercial buildings and transport infrastructure - roads, rails and ports, huge opportunities for growth remain for cement manufacturers, occasioned by the accompanying appetite for cement consumption in East Africa.

To take advantage of this enhanced demand, cement producers in the region need to implement cost control initiatives to compete favourably with leading international low-cost producers in terms of profitability.

Kenya is the largest market for cement in East Africa, with yearly production representing 53% of the region’s total capacity. Tanzania and Uganda contributes 30% and 15% respectively of the region’s total capacity. Rwanda and Burundi’s yearly cement production trails their counterparts in the region, but demand remains high, with investors increasingly casting an attentive eye.

Despite the lucrative returns in the cement market in the region, there are, however, significant challenges currently facing producers, such as high energy costs while at the same time power is generally not always guaranteed. High distribution costs also play their negative role, and producers are in some instances, forced to use expensive Alternatives. Further, high fuel costs, coupled with the still poor state of road and rail networks connecting domestic customer groups and key markets in the region, are pushing the cost of moving cement upwards. This, then, results in high distribution costs.

An influx of cheap Asian imports penetrating the East Africa markets at a substantially lower cost when compared with local production creates a hostile business environment for local producers. There is always an urge to import, because of the lower cost accompaniment In the on-going construction of the Standard gauge Railway in Kenya, for example, there was bewilderment and murmurs of discontent when the Chinese Contractor went ahead and imported cement when there was an agreement in place to source the raw material locally, which would have enabled local producers to fully play the supply role.

This is one issue that local manufacturers even in other sectors have to grapple with every year. They are therefore forced to come up with initiatives aimed at strengthening their position on the global cement industry.

To remain competitive, cement producers need to implement sustainable cost improvement strategies, focusing on alternative fuels, low-cost technology and value-adding models. In the SGR case, the explanation was that the contractor required certain grade quality cement which was not available in sufficient quantities locally.

While cement producers in East Africa can stand by the quality of their product, continuous innovation and investment in quality processes is an imperative so as to gain and maintain a competitive edge in a market that is becoming increasingly attractive to new entrants, heralding cut-throat competition. Critical to this is the modernization of production plants, improvement of plant processes and absorbing the best practices in mining and manufacturing processes.

One of the market leaders ARM Cement has already announced plans to adopt low cost production technology that will see the end housing products become significantly cheaper, thus facilitating increased sales for developers. Other manufacturers continue to invest and look for new ways to stay competitive. The industry is taking the initiative.

East African Governments should also encourage investors in the industry by making the business operating environment friendlier for local cement manufacturers, who are some of the biggest contributors to the region’s exchequers, employ thousands, promote local business by sourcing raw materials locally and invest in the communities they operate in.

Improving the business operating environment and protecting local manufacturers from cheap imports will indeed be a boost for the industry, even as they take the lead in ensuring that they sufficiently supply the volumes demanded by development activities in the region.

Eric Ombogi Editor

November/December 2015 | East Africa Infrastruture & Engineering Review

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CONTENTS

East Africa Informative Journal in Developing Infrastructure

Volume 4 Issue 017, July - August 2015

Celebrating Growth through Innovation

9 Brief case contractors killing the construction sector in Uganda 7 Tanzania’s cement producers call for level playing field 40 NCA urged to reduce levies for acquiring construction permits 42

TRANSPORT ENERGY HOUSING COMMUNICATION WATER

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Crown Paints to construct a manufacturing plant in Western Kenya Construction of phase II of Mombasa port terminal in Kenya to begin World Bank calls for diversification on infrastructure funding in Ethiopia World Bank to provide US$60m for affordable housing in Tanzania Going green can improve your bottom line-tell your land lord Is gas boom in East Africa about to burst?

ARM Cement’s investment in low-cost production technology spells joy for developers Why construction industry in Africa should embrace innovation Best construction practices in Singapore worth emulating Africa’s water taps running dry casfsafasffsadsaf Top 4 reasons why modular construction in Africa is gaining pace

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East Africa Infrastruture & Engineering Review | November/December 2015

NEW PRODUCTS

AEGIS Rings protect against both major sources of bearing currents in VFD-driven motors

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A Growing Awareness of Electrical Bearing Damage

hen Electro Static Technology launched the AEGIS® Shaft Grounding Ring product line in 2004, most engineers had never heard of electrical bearing damage.

Both VFD manufacturers and motor manufacturers vehemently denied that their products were to blame for the pitting, frosting, or fluting of motor bearings. The engineers who designed motor systems driven by VFDs seldom saw or had to deal with the problems of bearing damage. And the maintenance people who routinely replaced damaged bearings assumed such damage was either normal or unpreventable.

Today, 10 years on, most design or process engineers are aware of the problem and its causes, and a growing number of maintenance personnel have learned how to prevent electrical bearing damage using AEGIS® Rings.

Yet the success of AEGIS Rings has prompted a spate of products

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that supposedly provide the same or better protection of motor bearings against electrical bearing damage.

Most, however, provide only limited protection against such damage because they wear out quickly (leaving motor bearings unprotected), have only limited effectiveness due to

their design, or are ineffective in the presence of contaminants.

As a result of their unique design and construction, only AEGIS Rings encircle the motor shaft with full 360°

circumferential brushes that provide thousands of contact points for unmatched current-carrying capability.

The ring’s proprietary conductive microfiber brushes are specially engineered to flex without breaking (to last for the L10 life of the bearings) and to work in the presence of oil, grease, dust, or other contaminants.

And, due to their revolutionary Nanogap Technology, only AEGIS® Rings work regardless of whether they are in physical contact with the motor shaft or merely in close proximity to it.

Finally, no other shaft grounding technology has been proven effective in providing long-term bearing protection in over a million installations worldwide. So, if you’re aware of VFDinduced bearing damage, protect your motors with the most effective and cost-effective shaft grounding technology available — AEGIS® Bearing Protection Rings.

GROHE introduces Eurocube faucet with professional spray

esigned to bring a breath of fresh air to modern kitchens, the new GROHE Eurocube kitchen faucet with professional spray offers the very best in terms of both form and function. Here is a one-of-a-kind combination of minimalist cubic aesthetics and user-friendly technologies – just what passionate amateur chefs around the globe want for their kitchens.

The faucet plays a pivotal role in day-to-day life in the kitchen where it is arguably the most heavily used working tool. Standing centre-stage puts a premium on stylish looks, and the new Eurocube with professional spray will clearly draw applause for its eye-catching appearance. The linear silhouette of its perfectly cubic and solid body emphasises its architectural character. Smart details such as the design element integrated into the operating lever results in a refreshing lightness of form. The square and cubic theme is retained even in the face of the highly functional spray, thereby ensuring a fully cohesive look. Finished in either dazzling chrome or sophisticated matte Supersteel, Eurocube always cuts a sharp figure.

A professional choice for ambitious amateur chefs From cleaning fruit and vegetables to rinsing dishes, from filling large pots to washing your hands, the new Eurocube faucet is designed with the flexibility to meet all the requirements of today’s ambitious amateur chefs. The 360 degree rotating spring neck maximises the range of the professional spray which features convenient one-hand operation, simplifying numerous chores and actions when

November/December 2015 | East Africa Infrastruture & Engineering Review

whipping up culinary delights. Two spray modes can be selected – a conventional flow of water from the mousseur and a powerful spray for efficient cleaning. Switching between the two modes is as easy as moving a finger – the toggle switch is conveniently located on the sturdy metal spray. Its slightly rounded edges make for a comfortable grip.

State-of-the-art look and feel GROHE engineers have packed a lot of functionality into the new Eurocube faucet and its professional spray.

While the 28 mm cartridge with integrated temperature limiter provides reliable protection against scalding, GROHE SilkMove® cartridge technology gives smooth control of the water flow and temperature. The position of the cartridge within the faucet body is slightly rotated in order to prevent the lever from colliding with the kitchen wall or the tiles behind it.

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NEW PRODUCTS

AirConfig; first remote commissioning tool for the wireless building automation standard Thermokon has developed the world’s first remote commissioning tool for the wireless building automation standard “EnOcean”, which is called airConfig. airConfig uses EnOcean based RF telegrams to configure devices using special remote commissioning commands. airScan USB transceivers and the airConfig software tool allows communication and integration to other devices and networks.

ADVANTAGES t Seamless learning-in and easy configuration (via RF) t Saving of all configuration parameters t Selectable configuration parameters such as telegram wakeup cycles, operating measuring ranges or control of inputs/outputs t Clearly structured and centralized system information – no need to program every single device t User-friendly maintenance and support t airConfig – Installation and Configuration t Configuration of transmitted measured variables (EEP) and sensor parameters t Learning-in of sensors by Drag & Drop via RF (Remote Management)

t t t t t t t t t t

Time Saving (Copy & Paste configuration) Remote access to product and project information Selectable operating measuring ranges and individual naming of sensors Identification function via visual and acoustic feedback of selected sensors Possibility of parameterization (Timer, intervals, telegram repetition) airConfig – Flexibility and Safety Structured display of products using the device IDs Change of product functions, ideal for inaccessible product installations On-site specification changes (changes of parameters) or via remote configuration Password protected configuration

About Thermokon Thermokon has more than 25 years of market experience. Their core competence lies in the sensor technology for heating systems and building automation. All of their products meet the highest technology and quality standards. Thermokon is fully committed to a responsible usage of natural resources and climate protection. By manufacturing energyefficient sensors, they are contributing actively to a lasting reduction of CO2 emissions.

With headquarters in Germany and locations in Austria, Sweden, China, Switzerland, North America and Norway, a selling agency in Russia and trade partners in many parts of the world, Thermokon has 150 employees, is prepared for the global market and exports into more than 80 countries.

Chinese firm signs deal with Tatu City in Kenya to construct infrastructure Chinese firm Sinohydro, has signed an infrastructure complete and people anticipate that it will help decongest construction deal with Tatu City in Kenya. The deal will see the capital city by offering a unique live, work and play the water, sewerage and temporary road works developed. environment.

The agreement worth US$ 4m will cater for basic Tatu City is located near operational and influential infrastructure that will supplement the first phase of the places like Jomo Kenyatta Airport, Runda, Kenyatta project and another seven-kilometre University, UniCity, Thika Highway and the Tatu City is expected to temporary road will be constructed to help Northern and Eastern bypasses. host over 70,000 residents facilitate ongoing construction activities.

Sinohydro is originally well known “We are pleased to extend our cowhen complete and people as China’s first brand in hydropower operation with Sinohydro, which has construction, responsible for 65% of the anticipate that it will help already successfully completed several decongest the capital city large- and medium-scale hydropower stages of Tatu City’s infrastructure stations in the country. It has 12 holdings development,” said Tatu City Acting CEO Anthony Njoroge. and 20 wholly owned subsidiaries based in China, 5 regional The 2,500-acre Tatu City in Kenya which is expected offices abroad in Asia/Pacific, Africa, America, Eurasia and to be complete over the next year will host a number of West Asia/North Africa to supervise the market development international businesses like Dormans, Kim-Fay and Maxam. of 113 overseas offices in over 80 countries.

It is also expected to host over 70,000 residents when

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East Africa Infrastruture & Engineering Review | November/December 2015

NEWS / EAST AFRICA

Construction of more rooms in Ramada Encore Hotel in Tanzania to begin US$ 20m has been set aside for the servicing of Ramada Encore Hotel in Tanzania under Ramada Worldwide, Managing Director Abdul Ismail has announced. He said that they intend to construct more rooms at the hotel.

Mr Ismail said the decision to service the Ramada Encore Hotel in Tanzania was informed by the need to increase hotel rooms in Dar es Salaam which is Tanzania’s capital.

“We saw the need and decided to venture into the area, we want to play a role in alleviating a shortage of hotel rooms in Dar es Salaam as the country’s economy grows,” Mr Ismail explained.

The 116 room world-class accommodation facility which is located along Ghana Avenue adjacent to Exim Towers and the Home Affairs Ministry Headquarters will eventually

boost investments in the hospitality and leisure industry in Tanzania.

Some of the funds went towards procurement activities of various construction services as well as on furniture and other operational expenses that are associated with the construction.

With the growing number of investment activities, Tanzania still needs international hotels and lodges in strategic areas for visitors, including high profile personalities, who come to the country for business or leisure.

This will also lead to the growth of their economy.

Ramada Worldwide offers a warm and friendly stay at nearly 900 hotels in over 50 countries around the world.

They are committed to creating caring experiences for every person, every time, and strive to make their guests feel truly refreshed and restored during their visit.

Real estate is a booming business in Kenya at the moment so the company expects to make more sales in many areas, especially Kisumu and Eldoret in Uasin Gishu, have seen huge growth in real estate development providing a good future market for the paints maker.

Having established the Kenyan home market with depots and showrooms in Nairobi, Mombasa, Kisumu and Nakuru, focus has spread to take on East Africa. This includes

a factory in Uganda, branded Regal Paints and is currently the number two paint brand in Uganda. Two depots have been opened in Tanzania, namely Dar Esalaam, Arusha and Mwanza. Plans are in place for Ethiopia and Southern Sudan.

Crown Paints to construct a manufacturing plant in Western Kenya Crowns Paints Kenya Ltd is planning to construct a factory in the Western Kenya that will help reduce cost of transporting paint from its Nairobi plant.

The new plant which is also expected to help increase the output of the company will cost US$ 4m for it to be complete.

Chief Executive of Crown Paints Rakesh Rao confirmed the reports and said that the new plant will foster growth and better service in that region since that have received a high percentage of sales from there.

“Forty per cent of our sales come from this region and this plant will enable us serve the area better,” Rakesh said.

“We are also spending a lot to transport the paint from Nairobi yet 70 per cent of paint is water so we are spending a lot to transport water,” He further said.

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NEWS / EAST AFRICA

Why construction industry in Africa should embrace innovation

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recent report by Deloitte shows that for African construction industry to grow all firms have no option but to remain innovative so that they can be able to remain on top of the construction game in Africa.

Evidence has shown that innovative businesses are twice as likely to report increased productivity compared with businesses that don’t innovate.

In order to succeed the construction sector needs to have a much stronger sense of vision, leadership, vitality and appetite for innovation and continuous improvement. The construction industry needs to improve its innovation record, or risk being left behind.

Innovation is one of the latest management buzzwords that it used by many but understood by few. In simple terms, innovation is the process of bringing new creative ideas to reality, in an attempt to take advantage of what might lie over the horizon or to create an entirely new future, which no one else had imagined.

Below are the reasons why construction industry in Africa should embrace in innovation. t The International Monetary Fund (IMF) recently pointed to two profound changes taking place in global politics and economics.

First, political and economic power has been moving inexorably east.

Second, we are in a prolonged period of economic instability

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brought about by an increasingly interconnected world.

Businesses should see themselves as regional rather than domestic players and be adaptable, flexible, resilient and creative in their thinking. New relationships, knowledge and skills will need to be developed.

The predictive capabilities of new technology coupled with the large amounts of data now available through ‘the internet of things’ will transform business. Not only will it allows firms to effectively manage ‘big data’ in a way that they could previously never do, but it will also open the way for a new generation of robots which will act like ‘virtual humans’ serving as customer support slaves which can engage in real conversations with customers, through analysing conversation

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patterns and the context and profile of the person they are interacting with. It is estimated by some that in 50 years, 30 per cent of the working population will be made up of these robots. t How this new technology will affect construction is largely unknown.

However, we do know that construction has always lagged behind other industries in this area. This is despite evidence that productivity increases of between 30 to 40 per cent could be achieved by the adoption of these new technologies. Some of the more immediate technologies on the horizon which are promising to transform the construction industry include new smart, super-strong and sustainable materials, new energy technologies, GPS, BIM, virtual and augmented reality, robotics, 3D printing, wireless, ultra-mobile, wearable computers and new touchscreen APPs. While we must clearly be aware of the many risks of new technology (obsolescence, cost, security, integration, skills and training and so on) recent research shows that existing skill levels in the construction industry are not advancing fast enough to use this new technology, that there are problems of synergies and interoperability with existing technologies and that work processes have been slow to change to accommodate them.

East Africa Infrastruture & Engineering Review | November/December 2015

NEWS / EAST AFRICA

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NEWS / EAST AFRICA

Construction of phase II of Mombasa port terminal in Kenya to begin

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he construction of phase II of Mombasa port terminal in Kenya will start early 2017, Kenya Ports Authority managing director Gichiri Ndua has said. When complete, the second container terminal will provide and additional capacity of 470,000 and 550,000 TEUs. Mr Ndua added that the construction project of phase II of Mombasa port terminal in Kenya will cost US$ 213m to complete.

He further pointed out that the Kenyan government had signed a US$241.3mn loan agreement with the government of Japan to help finance the project construction.

Once construction is complete, the new Mombasa port in Kenya terminal will mostly be operated by an international operator through a 25-year concession and according to reports the traffic forecast has indicated that annual container throughput will rise from 1.012mn TEUs handled in 2014 to 1.12mn this year. It is expected to further grow to 1.8m upwards to three million TEUs between 2016 and 2030.

KPA authorities confirmed that the construction of phase 1 which is more than 90 per cent complete is anticipated to be ready by February 2016 having cost US$ 900m.

The port of Mombasa in Kenya is a

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key trade gateway in East Africa serving countries like Uganda, Rwanda, DR Congo, Burundi and Southern Sudan.

Kenya Ports Authority (KPA) is a state corporation mandated to “maintain, operate, improve and regulate all scheduled seaports” on

A new modern Oil Terminal to replace the current Kipevu Oil Terminal will be built at a newly identified site within the harbor the Indian Ocean coastline of Kenya, including principally Kilindini Harbour at Mombasa. Other KPA ports include Malindi, Lamu, Kilifi, Mtwapa, Shimoni, Kiunga, Funzi and Vanga.

New oil terminal

Meanwhile, KPA says the construction of a new oil terminal will start 2016 in a bid to give way for the relocation of

the old Kipevu terminal and help in the expansion of the country’s petroleum handling and storage capacity by about 400% including loading facilities.

The relocation of the oil terminal will be overseen by a Danish consultancy firm, NIRAS. Kenya Ports Authority Mr. Ndua said that the planned relocation had been finalized on and that the tendering process is projected to commence early next year.

The old Kipevu terminal which is 50 years now will be moved to a new location on the Southern side of the port and the relocation process will cost US$ 120m with the preliminary design costing US$ 1.7m.

“A new modern Oil Terminal to replace the current Kipevu Oil Terminal will be built at a newly identified site within the harbor. We have finalized the preliminary designs and the geotechnical investigations will be ready by New Year,” Ndua said.

A multidisciplinary consultancy company with over 1400 employees NIRAS is an international firm located in offices in Europe, Asia and Africa.

Their business is to provide impartial consultancy in a variety of fields such as construction and infrastructure, public utilities, environmental and natural resources, climate change and energy, planning, and development consulting.

East Africa Infrastruture & Engineering Review | November/December 2015

INFRASTRUCTURE

Ethiopia and Djibouti pipeline construction deal worth U.S.$2b signed Ethiopia and Djibouti pipeline construction deal worth U.S.$2b has been signed a move that is expected to boost oil transportation between the two countries.

The contractors assigned for the mega project; Black Rhino Group and Mining Oil & Gas Services (MOGS) are supposed to raise at least US$ 1bn to finance the construction.

The 550 km pipeline is expected to transport petrol, diesel and jet fuel from Damerjog port in Djibouti to Awash terminal in central Ethiopia.

Ethiopia and Djibouti pipeline construction deal which is anticipated to increase energy security, aid economic development and reduce harmful emissions is scheduled for completion in 2018. It is also expected to increase the efficiency and safety of Ethiopia’s supply chain by reducing transport costs, while increasing the

scale of oil products imports and also reinforce Djibouti’s position as a regional shipping hub by expanding the capacity of its port.

“The pipeline will increase energy security, aid economic development and reduce harmful emissions and will be complete by 2018,” said Brian Herlihy, Chief Executive Officer of Black Rhino, which is owned by funds managed by Blackstone Group LP. Currently, oil products are usually transported over 800 kilometers from Djibouti port by road to Addis Ababa through mountainous terrain. Djibouti

is investing heavily in sea-ports and other infrastructure projects with the aim of becoming a commercial logistics hub for East Africa.

Black Rhino is a Blackstone Portfolio Company focused on the development and acquisitions of energy and infrastructure projects across Africa.

Mining, Oil and Gas Services (MOGS), is a South African based black owned BEE accredited company that focuses on providing various products and services to the mining, oil and gas services industry in South Africa, and neighbouring countries.

France boosts energy efficiency in Uganda The French Development Agency (AFD) under the SUNREF programme has pledged to help in boosting energy efficiency in Uganda, the country’s Commissioner for Energy James Banabe has said.

AFD which seeks to finance green projects, has earmarked $13 million to fund companies looking to implement energy efficiency in Uganda by financing equipment and measures.

He said that approximately 64% of the electricity generated in Uganda is majorly used by industries out of which 10% can be saved if energy efficient measures are used. He said the energy efficiency bill in offing will help people understand the energy efficiency financing measures available in the country.

November/December 2015 | East Africa Infrastruture & Engineering Review

“Over 30MW of electricity can be saved if energy saving measures is used,” Banabe said.

Jeff Murage, the SUNREF project coordinator also said that up to US$6.5m financing can be given to any company in Uganda that wishes to buy, replace or set up energy efficient equipment and measures.

“People can access energy efficiency funds through the Uganda Energy Capitalization Company or accessed from Diamond Trust Bank in Uganda.

Funds are channeled through five banks Centenary bank, Post Bank, FINCA, Pride Microfinance and Opportunity Bank,” Tashobya said.

The French Development Agency (AFD) is committed to financing green sector projects.

That is why it has developed the Sustainable Use of Natural Resources and Energy Finance initiative – SUNREF.

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INFRASTRUCTURE

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World Bank calls for diversification on infrastructure funding in Ethiopia

he World Bank is now calling for diversification on infrastructure funding in Ethiopia in a bid to finance its infrastructure projects to avoid heavy reliance on the state.

In recent years the country has been carrying much of the burden of raising finance for infrastructure development while at the same time demanding that banks invest the equivalent of 27% of the loan portfolio in low-yield state development bonds, leaving little for private business to borrow.

But in a turn of events Ethiopia says it would change its policy demanding banks invest 27% of their loan portfolio in state bonds.

Although continued infrastructure development remains one of Ethiopia’s best strategies to sustain growth observes the World Bank, the current financing model cannot be sustained.

The Bank says that the private sector was being squeezed to finace infrastructure construction in Ethiopia.

The World Bank now urges

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Ethiopia to raise taxes, increase private sector activity and improve public investment management as some of the ways of financing its infrastructure construction.

The country is also constructing what will be the biggest hydro dam dubbed the Rennaisance Dam Other options put forward by the Bank includes increasing domestic savings and developing capital markets via a higher real interest rate, greater selectivity and prioritization of investments, securitization of infrastructure assets, and improved pricing, including higher electricity tariffs.

Ethiopian Minister of Finance and Economic Development Ahmed Shide says some of the options proposed by

the World Bank were in line with the government’s plans.

The country plans to raise tax earnings to 18 percent of GDP in five years’ time from the current 12% . It also wants to lift the savings rate to 30 percent by 2020 from the current 22%.

Ethiopia has been grappling with dilapidated transport networks over the past decade but investment in infrastructure now promises high returns.

Ethiopia has been grappling with decades of dilapidated transport networks but has been working tirelessly to boost its infrastructure. For instance this year, it launched the first rail network system. The country is also constructing what will be the biggest hydro dam dubbed the Rennaisance Dam. With annual economic growth of 10%, Ethiopia is emerging to be the fastest growing country in Africa.

The world Bank sees diversifying infrastructure funding in Ethiopia as a key to sustain the country’s infrastructure development.

East Africa Infrastruture & Engineering Review | November/December 2015

INDUSTRY DEVELOPMENT

Govt to ease issuance of construction permits in Kenya

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special committee involving construction regulators has been formed to help look into challenges surrounding issuance of construction permits in Kenya that have been dragging the country down in global business competitiveness.

The committee will look into the nature of construction permits Kenya and related challenges.

The team will then advise on whether the permits should be simplified or eliminated going forward, depending on their relevance.

Acting Lands, Housing and Urban Development Cabinet Secretary Fred Matiang’i has already formed a committee consisting of the National Construction Authority (NCA) and other regulators as well as stakeholders in the sector to look at the issue.

The recent World Bank’s 2016 Ease

of Doing Business Index, places Kenya as the third most-improved nation in business regulatory reforms among 189 economies.

The report placed Kenya at position 108, an improvement by 21 places from last year’s position.

But difficulties in acquiring construction permits affected the country’s overall ranking.

According to the World Bank report Kenya made dealing with construction permits more difficult by increasing the costs for both water and sewerage connections.

Proposals reached by the

committee would be forwarded ministry of lands, and then to the Cabinet before Parliament enacts the relevant legislation to help tackle challenges in the sector.

Kenya Private Sector Alliance (Kepsa) CEO Carole Kariuki has also in the past said that there was need to enhancethe laws and regulations dealing with the rigorous process of issuing the construction permits.

Ms Kariuki had said during the release of the World Bank’s index on October 28 that despite these achievements, more can be done to improve other indicators within the construction industry.

KeNHA invites bids for the reconstruction of roads in Turkana

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enya National Highways Authority (KeNHA) has called for bids for the upgrading of the Lesseru – Nadapal road in Turkana County.

The development which includes reconstruction of road pavements to attain a 7m carriageway width with 2m shoulders on each side, construction of bridges, culverts and other drainage infrastructure will be completed in 36 months from the day of commencement.

The Kenyan Government secured a US$ 500m loan form the World Bank to help finance the construction project. The terms of the credit were negotiated and secured through the Ministry of Transport and

Infrastructure.

The infrastructure project which is under the Eastern Africa Regional Transport, Trade and Development Facilitation Project (EARTTDFP), consists of three Lots; Lot 1 Lodwar Lokitung junction road, Lot 2 Lokitung junctions Kalobeyei river road, and Lot 3 Kalobeyei river Nadapal road.

Upgrading of the EARTTDFP

November/December 2015 | East Africa Infrastruture & Engineering Review

well known as the South Sudan Link Development Corridor, will transform lives and improve the movement of goods and people along LokicharNadapal/Nakodok, part of the EldoretNadapal/Nakodok road in the north western part of Kenya in particular and to enhance connectivity between Kenya and her neighboring countries hence increase the economy of the country.

KeNHA is a leading Highways Authority committed to quality, safe and adequate National Trunk Roads.

Their mandate is to manage, develop, rehabilitate and maintain national roads.

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PROJECTS

World Bank to provide US$60m for affordable housing in Tanzania

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orld Bank has last month approved US$60m to fund affordable housing in Tanzania.

The move will be crucial as the country is experiencing rapid urbanization in the recent past according to Philippe Dongier, World Bank Country Director for Tanzania, Burundi and Uganda.

The financing will go towards mortgage market to help ordinary families with house building initiatives.

The director said that the loan will go a long way in expanding the construction industry in the country, as well as supporting urban residents facing problems with housing credit.

The loan will be part of the World Bank’s International Development Association (IDA) initiative where grants, low-interest or zero interest loans are accessible to fund projects.

The loan will build on the achievements of currently underway 2010 Housing Finance Project (HFP) which has seen formation of the Tanzania Mortgage

Refinancing Company (TMRC).

“The biggest investment opportunity in housing in Tanzania is in housing supply side especially in affordable housing. There is a huge demand for housing and very few private housing developers in Tanzania.” Oscar Magaya has been quoted saying previously.

Tanzania is facing a 3,000,000 units housing deficit and 50-70% of urban dwellers live in informal housing according to last year’s report by World Bank. World Bank also found that it is slow to build houses in the country, with 98% of existing housing is built incrementally by individuals. It has said the funds will improve the situation.

The report also said there was need for

appropriate low cost building materials and technologies to help affordable housing sector.

Among other initiatives, the government announced last year it would fund construction of 50,000 house units through Watumishi Housing Company (WHC) for civil servants to access through low mortgages. The units would be built in Dar es Salaam, Coast Region, Tanga, Arusha, Mwanza, Shinyanga, Mtwara, Lindi, Tabora, Dodoma, Morogoro, Kilimanjaro, Ruvuma and Mbeya.

Ugandan firm Pearl to construct dairy factory in Kenya

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gandan firm Pearl Dairy Farms has announced plans to construct a dairy factory in Kenya that will be tasked with production and repackaging of milk products. The factory to be constructed in the capital Nairobi is aimed at growing Pearl’s market share in the region.

Atul Chaturvedi, the CEO of Pearl confirmed the reports and said that the initial estimate of the investment in the planned factory stands at about US$ 1m.

“We have for a long time been serving the Kenyan market from Uganda and our new factory will help in repackaging our products and subsequently set up a plant,” Atul Chaturvedi, the CEO of Pearl further said.

Currently, the company serves the local market with ghee, butter and milk powder

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imported from its Ugandan plant and the new project which is meant to cut costs incurred during importation of dairy products will lead to better service to the Kenyan customers.

The dairy factory in Kenya will commence operations in March next year while the manufacturing plant will follow as the sector has shown significant growth encouraging more

and more investments.

Statistics from the East and Southern African Dairy Association revealed that Kenya imports significant quantities of milk from Uganda to meet its deficit. The report also showed that Kenya bought milk worth US$ 5m from Uganda last year.

Pearl Dairy Farms Ltd. is the agro arm of the Midland Group of Companies with the manufacturing unit based in Mbarara District of Uganda in East Africa region. The intent of the setup was to help the local dairy farmers by generating a constant demand for milk in the region and to educate them to adapt to cleaner and more hygienic milk production techniques to contribute towards the growth of dairy industry as a whole.

East Africa Infrastruture & Engineering Review | November/December 2015

INFRASTRUCTURE / AFRICA

Challenges faced by firms in investing in infrastructure projects in Africa

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frica construction sector attained a growth of 46.2% in 2014 to register a significant jump to US$103 billion from US$222 billion recorded in 2013. This is according to a report on investment of mega projects in 2014. Deloitte, which reported that Africa had registered 76% completion rate according to their previous reports, said Africa is still a “magnet” for Foreign Direct Investment (FDI) and intraAfrican capital inflows.

Leading on the expenditure list was heavy investment in transport, energy and power projects; this is according to Delloitte in its Deloitte African Construction Trends Report 2014 report. The institution said that expectations are still high for infrastructure to provide Africa with needed market expansion.

Although the Public-Private Partnership model of investing in Africa is currently selling hot, it is imperative for Africa to solve the various challenges encountered by

international contractors in order to open itself up for more foreign direct investments.

Current challenges and probable solutions

“Africa has no funds” for massive infrastructure projects, is the notion spread out to the naked eye. But underneath lies what AfDB has termed as “serious constraints” and poor business environment. AfDB went on to say last year that many countries lack adequate legal and regulatory frameworks for PPPs and lack technical skills to manage PPP programmes and projects. Still, according to the development bank “unfavourable investor perceptions” of country risk have to be overcome.

Last year, IMF told a ministeriallevel International Monetary Fund (IMF) conference in Cameroon that Africa needed what it called “structural reforms” to promote a

November/December 2015 | East Africa Infrastruture & Engineering Review

strong private investment climate.

In fact, the conference focused on “desirability of tapping private sector financing”. These structural reforms should entail removing/reducing the lack of infrastructure connectivity that is hampering faster growth – through increased water, power and transportation costs. These, IMF say, are reducing productivity in the private sector by about a half. Arnaud Dornel, who is a World Bank’s lead financial sector specialist said the continent needs 15% of its gross domestic product (GDP) – totaling to US$93 billion – to fund its infrastructure projects annually. The public sector, the conference heard, was financing over 50% of the $45bn annual spend in infrastructure projects. He said Africa could effectively cut down the infrastructure gap to US$31bn through “operational optimization” in which 40% of the optimization would be undertaken by the private sector.

Yet PPPs, although represent

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INFRASTRUCTURE / AFRICA a good for African governments in revamping infrastructure, can be damaging if good institutions, regulations and sound budgeting, accounting and reporting are not implemented. This is according to IMF public financial management specialist Maximilien Queyranne speaking at the event. He conceded that PPPs are “complex to design and implement”. He said PPP procurement required “due-diligence/multi-stage gateway process” as 62% of all renegotiated (55% of all PPPs are renegotiated) PPPs end up with tariff increments. To reduce renegotiation, governments would need to embed a PPP regulatory framework in law than adopt concession contracts (17% of all renegotiations are from PPP regulatory embedded situations compared to 40% of those emanating from concession contracts and 28% from government decrees).

Africa must also remodel the way it procures and runs infrastructure projects if change in investment is to increase. This is according to Akshai Fofaria of Pinsent Masons law firm.

“There is significant capital waiting to be invested in African infrastructure but what is needed is more transparency about how projects are procured and run,” he said. “Only when that is in place will international investors support projects. This is true across Africa, including in Cameroon, where it is essential that processes are open, fair and transparent.” He said.

Last year, African Development

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Bank Group (AfDB) said it would build on India’s success in implementation of private-public partnerships (PPP) to encourage further investments in the continent. In fact, it went on to sign a related agreement.

AfDB sees India as one of the successful in receiving US$300 billion in large-scale investments in infrastructure projects under the PPP model “…With more than 1,000 PPP projects, India is said to have perfected the PPP model, which could arguably provide a solution to Africa’s infrastructural deficit.” AfDB said. The opinion is supported by Ernst & Young and FCCI who said that PPPs would bring in 50% of the $1 trillion to be spent on infrastructure projects in India up to 2017. The government’s effort to streamline PPPs structures will encourage PPPs in the country.

The African Development Bank has already launched a Private Sector Operations Department which advises and funds PPPs in areas like

“There is significant capital waiting to be invested in African infrastructure but what is needed is more transparency about how projects are procured and run”

transportation, energy generation, industries, services and agribusiness.

Public Private Partnerships (PPPs) as the modern way of doing things

Africa has been marshaling for publicprivate partnership model of financing infrastructure, with hope to reducing the financial burden and increasing possibilities of getting private sectorrelated benefits in undertaking massive infrastructure projects. This augments well with agenda by African governments to undertake massive infrastructure projects with the aim of opening up for more business.

Many new ports, railways, roads, sea ports, energy projects and airports are already on their way to expansion or construction.

A PPP, which is a financing model where the government agrees with a private investor to provide services that were previously provided by the government, are hailed as capable of increasing service delivery and production efficiencies, profitability and management of public projects.

Public-run projects and facilities have registered massive inefficiencies, delays, administration problems and corruption, as well as misplaced priorities where projects are undertaken with political agendas.

In comparison, the private sector must first access profitability of projects before pouring money into them. Thus, there are chances of gaining from these projects.

East Africa Infrastruture & Engineering Review | November/December 2015

INFRASTRUCTURE / AFRICA

New Generation Africans Face Looming Housing Crisis James Mugerwa, Managing Director, Shelter Afrique.

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oung Africa has a problem. Well, to be sure young Africa will face many challenges in the near future but curiously one of them seems to be under the radar; not a priority item for governments and institutions.

To hear the experts tell it, Africa will experience a population boom in the coming years and should be reaping what many economists have termed a demographic dividend. What will be happening on the other side of this is rapid urbanisation.

The UN-Habitat estimates that by 2030 all developing regions, specifically Sub-Saharan Africa and Asia will have more people living in urban than rural areas.

It denotes for many, the progress that is being made by African economies; certainly urbanisation in isolation can be seen as an indication of development and growth, the theory is if we have people trooping to and staying in our urban centres then it must be that we have created the jobs to attract and sustain them.

an estimated 170000 housing units is required every year over the next ten years. The recently concluded 2013 Housing Survey by the Ministry of Lands and Housing Kenya doesn’t fare any better with the deficit estimated at 2 million houses over the next 10 years.

Three Dimensional Problem

All these statistics and numbers have a very real and clear implication for housing and they paint a very simple picture, on the one hand you have a young and vibrant workforce coming into their own against the backdrop of too few houses, on the other hand you have troves of new city dwellers who cannot afford or find decent affordable housing creating new slums.

The population boom, rapid urbanisation and housing deficits across the continent is a three dimensional problem with the same end; crisis.

High Entertainment Culture

There is precious little that can be done about the rapid urbanisation, there is a

high entertainment culture attracting young people from the rural areas. It is easy to spot them on the streets of Lagos, to Nairobi, Dakar, Johannesburg, Luanda, and Kinshasa. Many have bought into the new African dream and they will keep coming and we should encourage it.

But only for a moment, because the realities of daily African life are all too apparent, we are always only moments away from the next clash of communities or outbreak of widespread violence and to the casual observer it seems immediate, spontaneous without reason, but that is not the case. These crises are often fuelled by the intangibles, unemployment, inadequate access to decent housing, inadequate access to basic social services and the frustration that stems from all this. The failing of the new African dream for so many.

None of this analysis is particularly ground-breaking or new, however it is interesting how little attention affordable housing receives as a factor to quality of life and as a

The Demographic Dividend

Let’s return to another interesting statistic that was mentioned above, Africa will experience a population boom in almost of all its major economies, Nigeria is expected to have 174.2 million people between the age of 15-64 by 2035; in the Democratic Republic of Congo that number is predicted to be 66.9m, in Kenya that number is 44.8 million and in South Africa that number is 40.4m. Everywhere on the continent is expected to swell in numbers in the next two decades according to a UNHabitat State of the World Cities Report.

Another set of interesting numbers to look at is the current housing deficit in most of the major economies in Sub-Saharan Africa, in Nigeria the housing deficit is estimated to be 17 million units annually. In nearby Ghana November/December 2015 | East Africa Infrastruture & Engineering Review

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INFRASTRUCTURE / AFRICA materials.

It is always funny how often people miss the relation between transportation and housing, if African transport systems are upgraded to include rail especially, it would give a city a rebirth and allow it expand and create various suburbs or sleeper cities that would be less expensive to live in than the city centres.

What’s on the horizon?

possible deterrent to chaos and social disorder. Naturally, governments with limited resources and tenure and an increasingly more informed and more involved electorate, shy away from long-term capital intensive projects, they want quick wins and sellable achievements.

What can be done?

These questions frame the impending housing crisis, how should they be answered? What can be done? A myriad of things, but we must first begin with the notion that no one organisation or government can solve the housing problem by itself, it will require a coming together of shared interests.

We must also determine that a one dimensional approach will not suffice.

We can then move on to tackling sociocultural impressions of homeownership and brick and mortar homes. The housing conversation in Africa has always begun and ended with homeownership while the fact remains well over 70 percent of Africans cannot afford to buy a home at current market rates.

Rental Housing is legitimate option and is a reality for most Africans, it is time to have it supported with government incentives and legislation.

It is an option that has yielded results in countries like Germany and the Netherlands clearly documented in a 2014 World Bank Report We must also combat the preference for houses built with traditional methods; alternative building technologies continue to push the boundaries and introduce efficient and effective ways of constructing at reduced cost. Materials like mud, plastic have been deployed to wonderful effect and can significantly cut back

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cost for constructing a unit, but we still persist with the traditional ways of home construction even when we cannot afford it.

We must also find ways to control the value chain a lot more, housing in Africa is expensive primarily because most of the material is sourced and imported, it will be interesting to see if a boom in manufacturing doesn’t drastically reduce the cost of building

The housing conversation is a continuous one and it is one that will see a lot of changes as we witness symmetrical changes in technology, demographics and urbanisation.

However it must always begin with the notion that we are running out of time to solve the housing problem and there is a new generation Africa expecting to be housed. There are a thousand ways to approach the problem, not doing anything isn’t one of them.

East Africa Infrastruture & Engineering Review | November/December 2015

SUSTAINABILITY is incurred in the construction of the facility, while 50% of the lifecycle costs are incurred through the running of the building. Looking at a breakdown of running costs, lighting consumes 25% and office equipment about 20%, while Heating, Ventilation and Air Conditioning (HVAC) account for a massive 45%.

The landlord or property owner who does not pay for the electricity used by the tenant is not under any pressure to move towards greener, more energy efficient technologies. In fact, older less efficient technologies can be cheaper to install and therefore, more awareness is needed. Here are three good bottom line pleasing reasons to press for change or hold out for a facility with green credentials: t Smart green technologies are relatively easy to come by, easy to implement, and can show rapid returns on investment in the form of almost immediate cost reductions – i.e., a 30% to 80% reduction in costs. t Energy efficient technology increases the value of property and its attractiveness to tenants. t Reducing the carbon footprint of the facility will incur less carbon tax, which is expected to take effect in 2016.

Green technology Neil Cameron, General Manager, Johnson Controls

In commercial buildings there are two key areas where green technologies can make an immediate impact: t At hardware or plant level, with

Going green can improve your bottom line-tell your land lord

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ustainability remains a hot topic as it’s the right thing to do. It’s the hard returns that will get companies taking action. However, while new greener technologies are being architected into the design of new buildings in South Africa, there remains a major disconnect in older commercial facilities between landlords and tenants on the topic – to the

detriment of both. To quantify the opportunity, consider that potential energy cost savings – which mostly depend on the implementation of proven new technologies – are 30% to 80%.

A United Nations (UN) Environment Programme study looking at the 40year lifecycle costs of a building spells out the challenge: only 11% of the cost

November/December 2015 | East Africa Infrastruture & Engineering Review

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tweaks, small additions and retrofits, or replacements driving operating efficiencies; and At strategy and management level, with a Building Management System (BMS) providing a single platform to integrate all building systems (from chillers or other HVAC equipment to lighting, CCTV, access control and fire alarms). Furthermore, the means to

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SUSTAINABILITY design, configure and implement and energy management policy, and automate, monitor, report on and refine facility performance.

Where do you start?

Any good strategy starts with an energy audit (taking stock of what equipment is in place, and of current performance and energy consumption), and how that stacks up against the current and long term needs of the business. This will help identify immediate or quick wins, and help determine the business case for investments.

Fast wins can come in the form of simple policy shifts and standard energy saving approaches. For example, outdated HVAC approaches rely on ‘set and forget’ strategies where chillers and other equipment were manually set to cater for worst case scenarios – e.g., a hot summer’s day. In reality, that high level of performance is only required a small part of the time.

By installing sensors to measure actual internal and external temperatures and carbon dioxide levels, equipment can respond to actual demand. Optimal stop/start times can be set for HVAC

equipment using adaptive control algorithms so that air conditioning is at the right comfort level at set occupancy times or, depending on temperatures, the plant can be stopped early and still maintain comfort levels.

To manage energy consumption and cost, thresholds can be set. This allows strategies like demand limiting, which sheds load during peak demand to reduce consumption, and load rolling, which sheds non-critical loads to maintain specified consumption, to be applied. What holds it all together is a BMS. The lynchpin – a BMS Find a BMS that is built on open systems and is able to tie together disparate building systems, including lighting, HVAC, access control, security and energy billing. Ease of use complemented by mobile accessibility, ease of integration, configuration and automation, and the quality of reporting should be primary considerations.

Reporting will facilitate better control and cost savings. A good report should provide: t An energy overview, a single high level report that displays

normalised energy use; Identification of equipment that is consuming more energy than the accepted standard. t Consumption in the default units of each energy type; t Electrical energy usage, which includes peak demands, reactive power, and power factor; and t Production or energy generation, reflecting the energy the site is producing (if photo voltaic panels or other means of energy generation is installed.

How effective can an investment be? For SABC Auckland Park, an investment of R2.5 million achieved R23 million in savings over 18 months.

The investment was primarily allocated to the upgrading and reprogramming of controllers, and installation of damper actuators and evaporative coolers across its radio and TV offices and studios.

Going green, improving the businesses eco-footprint and working towards becoming a more sustainable business are admirable sentiments but in business little gets done until you add real bottom line benefits. Clearly, the benefits are there to be had. t

Bloomberg survey ranks Kenya sixth in green power generation

Kenya is now among top ten nations in regards to green power generation, a report released by Bloomberg New Energy Finance shows.

The 2015 Climatescope Index ranks Kenya sixth out of 55 countries that are investing in wind, solar geothermal and other renewable power generation worth US$126bn of investments. Energy Regulatory Commission (ERC) also gave

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out a report that revealed that geothermal power consumption in Kenya went high and recorded 402.1 million units in October this year accounting for nearly half of the country’s total consumption.

According to the report, the progress in 2014 was achieved despite a number of countries such as Brazil, South Africa and China recording slow economic growth rates. Average Gross Domestic Product (GDP) growth across the nations slipped to 5.7 per cent in 2014 from 6.4 per cent in 2013.

Other African countries that were in the top ten are South Africa at fourth and Uganda at ninth.

Bloomberg New Energy Finance (BNEF) provides unique analysis, tools and data for decision makers driving change in the energy system. With unrivalled depth and breadth, they help clients stay on top of developments across the energy spectrum from their comprehensive web-based platform.

The Climatescope Index now says that solar power would be the next frontier for investors in Kenya’s green power generation.

East Africa Infrastruture & Engineering Review | November/December 2015

ENERGY

Is gas boom in East Africa about to burst?

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ecent oil and gas discoveries across East Africa most notably in Mozambique and Tanzania, have seen the region emerge as a new player in the global oil and gas industry.

As exciting as the huge gas boom in East Africa are, however, the strong declines in oil prices and expectations for an L-shaped recovery with low prices over the coming years are increasingly challenging the economic viability of the industry in this region.

The discoveries were expected to drive billions of dollars in annual investment to the region over the next decade. According to BMI estimates, the gas finds in the last few years are more than that of any other region in the world, and the discoveries are expected to continue for the next few years. However, falling global oil prices are threatening the commercial viability of many of these gas prospects.

The Indian Ocean, off the coast of Mozambique and Tanzania, is proving to be a rich hunting ground for natural gas exploration. According to US Geological Survey estimates, the

combined gas reserves of Mozambique and Tanzania could be as high as 250 trillion cubic feet. In Mozambique alone, proven gas reserves have increased dramatically from a mere 4.6 trillion cubic feet in 2013 to 98.8 trillion cubic feet as of mid-2015. Given continued offshore discoveries and the size of discoveries to date, continued

The Indian Ocean, off the coast of Mozambique and Tanzania, is proving to be a rich hunting ground for natural gas exploration growth in proven gas reserves is likely to continue into the foreseeable future.

New exploration on more frontier blocks, however, will likely be slowed

November/December 2015 | East Africa Infrastruture & Engineering Review

as oil and gas prices fall and companies apply increasing caution to investing in frontier markets with nascent industries, poor infrastructure and long lead times.

As liquefied natural gas (“LNG�) contracts remain heavily indexed to oil, the fall in global oil prices poses significant downside risk to gas production projects. Persistent oversupply in the oil market continues to put downward pressure on oil prices.

This trend of lower prices is unlikely to reverse in the near future with futures prices estimating the average Brent crude oil price to range between USD50-65/bbl over the next five years.

Industry research estimates that an oil price of USD70-80/bbl would be needed for the LNG gas projects just to break even.

Lower oil prices are likely to take a heavy toll on the development of upstream gas production and downstream refining projects in the region, as pricing uncertainties affect the commercial viability of LNG projects, delaying investment in the

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ENERGY

region. This will likely see companies hold off on Final Investment Decisions (“FID”) as they attempt to overhaul projects to cut costs and wait for more certainty on the direction of prices.

In Mozambique, for example, both Eni and Andarko have yet to reach a FID on their respective LNG projects.

The lower price environment will likely force these companies to secure more off-take agreements before reaching FID. Furthermore, it is unclear whether these projects would be economically viable at current pricing levels, and given expectations for a slow recovery in oil prices over the coming years, we could see further uncertainty and delays in reaching FID.

However, key to the progression of a GTL project in Mozambique will be the cost of the gas feedstock and the long-term outlook for oil prices. Central to GTL economics is the price spread between natural gas and oil.

On a positive note, both Mozambique and Tanzania are expected to experience positive gas consumption growth as their respective governments look to increase the use of natural gas in domestic power generation. However, as in the case of Nigeria, there is a risk that each government may fix domestic gas prices, which could hinder investment

in the region. Interestingly, Nigeria recently raised local gas prices to stimulate investment and plug persistent local shortages.

About RisCura: RisCura is a global, independent financial analytics provider and investment consultant. RisCura services institutional investors with over $200billion in assets under management, as well as a significant number of asset management, hedge fund and private equity firms.

The free fall of global oil prices is forcing companies to re-evaluate their growth strategy in the region The free fall of global oil prices is forcing companies to re-evaluate their growth strategy in the region.

Anadarko CEO, Al Walker told investors that it is “unlikely that we will have the kind of margins that we have seen historically that would encourage us to go back into a growth mode.”

In Tanzania, the situation is just as precarious. Gas output will depend on construction of an LNG export terminal; however the project partners – BG Group, Ophir Energy, Statoil and ExxonMobil – have yet to reach FID, due to pricing uncertainties and a range of legal and regulatory hurdles.

Downstream refining projects are also in jeopardy. According to a Sasol report, Sasol, Eni and ENH have announced a partnership to look into a feasibility study for a large-scale gasto-liquids (GTL) facility in Mozambique.

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East Africa Infrastruture & Engineering Review | November/December 2015

COMPANY PROFILE

Another first and still counting

ARM Cement’s investment in low-cost production technology spells joy for developers In a trend that started over a decade ago, the publicly listed manufacturing giant has recently enhanced its market leadership credentials not only by upgrading its products to match the required cement quality standards for ongoing infrastructure projects but also by investing in technology that will see its cement production costs significantly reduced November/December 2015 | East Africa Infrastruture & Engineering Review

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n the backdrop of a boom in the construction and infrastructure development sectors in East Africa, there is heightened competition for market share, and ARM Cement has signaled its intent to take the lead by enabling its customers enjoy the benefits of cutting edge cost-effective manufacturing efficiencies.

The company recently adopted new trend-setting technology in cement production that will significantly reduce the cost of construction, specifically by reducing the price of finished houses costs. So far, the use of expensive production technology has been blamed for the high pricing of finished houses in Kenya.

Demand for cement in the region, especially in Kenya, is being driven by major ongoing infrastructural projects as well as the booming housing sector for residential and commercial office space.

According to Kenya’s National Housing Corporation,

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COMPANY PROFILE Track record of building world class cement plants

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the estimated current urban housing needs in the country are 150,000 units per year to plug the deficit. However, it is estimated that the current rate of construction of new housing in urban areas stands at only about 30,000 units annually, a shortfall of 80 per cent.

Road construction in Kenya has also become very costly, making the country one of the most expensive in Africa. This is due in big part to the high cost of materials used in laying the roads.

ARM Cement intends to lead the way in the supply of more pocket – friendly cement products that will go into the construction of houses, supporting developers to enhance their capacity. By investing in the new plant, the company is reaffirming its commitment to its customers and shows the value accorded to them, by combining innovation and leading edge technology to manufacture and deliver the finest quality cement.

The company manufactures its Rhino Cement brand in state of the art integrated plants that allow for improved performance and ability to cope with a number of emerging manufacturing requirements like heat efficiency, reduced emissions and secondary fuel suitability, as well as reduced maintenance costs.

statement. “Significant investment in construction of state of the art integrated facilities over the years has enabled us to do this without compromising on quality. This has resulted in reduced energy consumption per tonne of cement, which has led to lower production costs.”

A sustained expansion drive has seen ARM Cement acquire a huge Production Capacity. ARM has five cement plants — two in Kenya, two in Tanzania and one in Rwanda— and deals in other products like sodium silicate, lime, industrial minerals, fertiliser and special building products.

ARM The company now has a combined production capacity of over 3.25m tons per annum (tpa).

1996 - 200 TPD Kaloleni, Kenya 2006 – 750 TPD clinker plant in Kaloleni t 2008 – 1,500 TPD clinker capacity expansion in Kaloleni t 2010 – 2,000 TPD grinding plant, Athi River, Kenya t 2012- 2,500 TPD grinding plant Dar Es Salaam, Tanzania t 2014- 4,000 TPD clinker plant, Tanga, TZ With the completion of the Tanga plant in 2014, ARM secured clinker sufficiency which is a major competitive advantage, given the clinker shortfall in East Africa. Manufacture of its own clinker further reduces overall cost of cement manufacture, enabling the company pass on the benefits to customers.

Despite intense competition for the East African market, ARM has becoming an increasingly important player in the region’s cement industry, curving out an estimated 18 per cent market share in 2014, from 11 per cent in 2010.

New capacity will come on stream in 2016, which will enhance ARM’s production capacity. With increased production has come greater emphasis on its commitment to maintaining exceptionally high quality standards consistent with the brand promise.

Strict Quality Controls

A strict quality assurance programme guarantees Rhino Cement performs in a consistent and predictable way.

Stringent controls at the in-house ultra modern and well equipped laboratory

Affords Lower Production Costs

“We are constantly innovating and seeking ways to manufacture cement more efficiently,” says ARM in a

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East Africa Infrastruture & Engineering Review | November/December 2015

COMPANY PROFILE available at both Kaloleni and Athi River plants ensures that the final clinker and cement are of superior quality that takes building to a whole new level.

These laboratories are equipped with a modern panalytical X-ray Fluoroscopy (XRF) analyzer machine that allows for instantaneous analysis of cement.

“Rhino cement is a brand that is synonymous with Quality and Value for money that offers modern builders a versatile and durable material ready to match their specific requirements. In this way, Rhino Cement has remained committed to customers, employees, and stakeholders,” says the company statement.

Rhino Cement is suitable for all masonry construction, especially projects that require higher flexural bond and compressive strengths.

Superior performance extends to key areas such as durability, weather resistance and aesthetics; durability being particularly important to designers and builders of concrete structures due to its; t High Compressive Strength: Rhino cement offers high compressive strength which is a favourable factor especially in the construction of high rise buildings. t High Fineness: Rhino Cement high fineness results in stronger concrete mixes. t Low Permeability: Low permeability in Rhino Cement reduces the rate of deterioration of concrete and steel structures. t Low Magnesium Oxide: The limestone mined from the ARM quarries is of very high purity with very low MgO deposits that facilitate the manufacture of higher quality cement. t Least Chloride Content: Rhino Cement is also characteristically low in chloride content which makes it suitable in the preparation of concrete used in the construction of water retaining structures.

The company’s bagged cement dispatches come in heavy weight and durable packaging, easing loading and transportation. In addition, an electronic packer and weigh bridge is present at all ARM’s cement plants, facilitating accuracy in packing standards

Rhino Cement plants ensure faster delivery times to customers.

Automated truck loading machines in the Athi River plant effectively support this role as they are designed for all types of trucks. Rhino Cement Distributors are located all across the region, ensuring easy availability and constant accessibility to the product by customers. Rhino Cement available across East Africa.

Rhino Cement offers a unique level of service excellence and customer care. To help customers succeed, the company’s sales and technical support staff are available throughout at every phase of the construction process: from the initial consultation phase, through the completion of the project, charged with assessing specific customer needs and finding solutions for specific requirements with regards to the Rhino Cement product. Product satisfaction goes hand in hand with customer satisfaction.

Proficient Concrete Testing

Upon request concrete testing is arranged for at the company’s laboratories to ascertain the right concrete mix for specific masonry or construction requirements.

On-time Product Delivery Both the Kaloleni and Athi River Rhino Cement plants are staffed with dedicated and reliable transporters who work 24 hours a day, 7 days a week. All cement delivery capacities and locations are catered for whether within the plants’ proximity or upcountry.

Established in 1974 and originally a family run business under the

November/December 2015 | East Africa Infrastruture & Engineering Review

stewardship of H.J. Paunrana, ARM is today a publicly held company and one of the largest cement manufacturers in the region.

ARM was the first company in Kenya to obtain certifications for ISO 9001:2008 Quality Management Systems and the ISO 14001:2004 Environment Management Systems.

Their environmental emission control technology is designed to meet the latest international standards, with state of the art technology.

ARM’s plant in Kaloleni was the first manufacturing plant to be awarded ISO 9000 for quality in management systems. It is the only plant in the whole of East Africa which has 24hours online system to measure and monitor dust emission levels due to the adoption of the latest technology for dust emission management.

ARM is among the major suppliers of the new standard 52.5 cement in the construction of Standard Gauge Railway (SGR). This standard contains very high super strength cement that has been tested by KEBS. ARM invested in technologies and factory testing methods to meet these exacting standards and in this way, the company is strategically equipped to effectively participate in current and future infrastructure projects.

The company is strategically working to penetrate local as well as regional markets and entrench its overall position in the region, expanding its product reach, while maintaining the company’s reputation as market leader.

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INNOVATION

Alec Davis CEO Davis & Shirtliff, Ambassador Dennis Awori and Davis & Shirtliff Deputy CEO David Gatende discuss features of a DAYLIFF booster pump during the presentation of the DAYLIFF product range. DAYLIFF is a brand name of products supplied by Davis & Shirtliff and includes borehole pumps, booster pumps, drainage pumps, hand pumps, industrial pumps, circulator pumps, engine pumps, solar pumps and much more.

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East Africa Infrastruture & Engineering Review | November/December 2015

EXPERT CORNER

How to Choose a Roof for Your Home

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By: Joe Cuhaj

rom natural materials like slate and wood to manmade products such as asphalt, sheet metal, and plastic polymers; there are more types and styles of roofing to choose from today than ever before. While each has its advantages and shortcomings, they all can add a distinctive design element to your home. So which one is right for you?

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t t t t t t t

Materials: Made of either an organic paper fiber mat (better for cold weather and wind resistance) or fiberglass (more fire and moisture resistant) impregnated with asphalt and coated with mineral granules.

Appearance: Available in traditional 3-tab shingles or thicker laminated “architectural” shingles.

Eco-Friendly: Petroleum based product that’s not ecofriendly. Can be recycled, though often taken to landfills.

Durability: Not very durable. Algae resistant shingles are available in humid climates to prevent staining.

Weight: Moderate in weight.

Slope: Can be used on fairly low to steeper sloped roofs.

Fire & Wind: Good fire resistance, fair wind resistance.

Cost: Inexpensive to moderate.

Metal

Photo Courtesy of CertainTeed Corporation

What to Look for in a Roof

There are many factors to consider when selecting a roof including: t How long will it last? t Does it hold up during natural disasters such as wildfires or hurricanes? t Is it too heavy for the existing roof framing? t Does the roof have enough slope? t Will the look complement the style of the house? t Are the materials eco-friendly and recyclable? t Is the type of roofing allowed by local building codes? t And finally, how much does it cost?

Pros and Cons

Some types of roofing may be better suited for your house than others. Factors such as the slope of the roof and strength of the framing could limit your choices. In areas prone to wildfires or hurricanes, look for a product with a high fire rating or good wind resistance. In addition, steps can be taken during the installation of many types of roofing to improve their resistance to fire or wind. Below is a rundown on the different types of roofing available.

Photo Courtesy of Metal Sales Manufacturing Corporation

While more expensive than asphalt, metal roofing lasts longer and is more wind resistant. t Materials: May be composed of steel, aluminum, copper, or zinc alloy. Steel roofs come with either a zinc coating or painted finish. Copper roofs are installed unfinished and acquire a protective green patina with age. t Appearance: Available in sheets or in shingles that resemble other materials. Can be installed with the fasteners hidden (standing seam) or exposed. t Eco-Friendly: May be made from recycled materials and can be recycled when replaced. Absorb a third less heat than asphalt. t Durability: Fairly to very durable, depending on the material. t Weight: Lightweight. t Slope: Available for low or steep sloped roofs. t Fire & Wind: Good resistance to both fire and wind. t Cost: Moderate (steel) to expensive (copper).

Plastic Polymer

Photo Courtesy of DaVinci Roofscapes Photo Courtesy of CertainTeed Corporation

Asphalt shingles are the most popular type of roofing for homes, comprising over 80% of residential roofing market.

November/December 2015 | East Africa Infrastruture & Engineering Review

These durable synthetic roofing shingles resemble either wood shakes or slate.

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EXPERT CORNER t

Materials: Molded from a high-tech plastic polymer material.

Appearance: Made to resemble slate or wood shakes.

Durability: Claimed to be long lasting and low maintenance.

Eco-Friendly: Some are made from recycled materials.

Can be recycled when replaced.

Weight: Light to moderate in weight.

Slope: Can be used on moderate to steep sloped roofs.

Fire & Wind: Good fire and wind resistance.

Cost: Moderate.

t t t t t t t

t t t t t

significant energy to manufacture.

Durability: Long lasting and low maintenance but can break.

Weight: Heavy, require reinforced roof framing to support.

Slope: Can be used on moderate to steeper sloped roofs.

Fire & Wind: Excellent fire resistance, fair to low wind resistance.

Cost: Moderate.

Slate

Clay Tile

Photo Courtesy of Ludowici Roof Tile

While brittle and heavy, clay tiles can last a long time and are very fire resistant. t Materials: Made from natural clay which is fired in a kiln. t Appearance: Traditional Italian or Spanish look, can also be made to resemble wood shakes or slate. t Eco-Friendly: Made from natural materials but requires significant energy to manufacture. t Durability: Long lasting and low maintenance but brittle and can break. t Weight: Heavy, require reinforced roof framing to support. t Slope: Can be used on moderate to steeper sloped roofs. t Fire & Wind: Excellent fire resistance, fair to low wind resistance. t Cost: Expensive.

Slate is one of the oldest roofing materials. Though brittle and expensive, it is very durable and resists both wind and fire. t Materials: Made from natural slate rock. t Appearance: Usually dark gray with irregular appearance. t Eco-Friendly: Made from natural materials. t Durability: Long lasting, durable (depending on where quarried). t Weight: Heavy, require reinforced roofing structure to support. t Slope: Steep sloped roofs only. t Fire & Wind: Good fire and wind resistance. t Cost: Very expensive. Requires specially trained workers to install.

Wood Singles and Shakes

Concrete Tile

Photo Courtesy of Eagle Roofing Products

Less expensive than clay tiles, concrete roof tiles are also heavy but can last a long time and are very fire resistant. t Materials: Made from a mixture of Portland cement and sand. t Appearance: Can be made to resemble traditional clay tiles, wood shakes, or slate. Color can be throughout tile or only applied on the surface. t Eco-Friendly: Made from natural materials but requires

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Wood shingles and shakes made from rot resistant woods have low fire resistance unless treated. t Materials: Commonly made of cedar, but can also be made of other rot resistant woods, such as redwood. t Appearance: Gives natural look, weathers to a silvery gray. Available in sawn shingles or thicker split shakes. t Eco-Friendly: Made from natural materials. t Durability: Short lifespan and requires periodic maintenance. t Weight: Moderate in weight. t Slope: Can be used on moderate to steep sloped roofs. t Fire & Wind: Good wind resistance, poor fire resistance (can be treated with a fire retardant). t Cost: Moderate.

East Africa Infrastruture & Engineering Review | November/December 2015

INNOVATION

A new concept in design architecture at valley view business park

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airobi’s skyline has evolved and now more than ever, there are new concepts evolving by the day that show creativity and bring out the changing trends in real estate developments. As property developers scour the Nairobi suburbs in search of areas to put up housing, there is a new clique of developers that are targeting the commercial arena and are going all out to showcase unique and showstopping designs.

One such concept is Valley View Business Park – Located in the up - market suburb of Parklands and nestled by residential homes overlooking the City Park – a major hallmark of Kenya’s tourism landscape, this new development is built to cater to the needs of the fast rising economic

landscape.

Valley View Business Park is the only commercial property in Nairobi that boasts’ of “two revolving towers” – yes – hard to imagine. Up till last year, the only building that had a revolving tower was the Kenyatta International Conference Centre – now here comes a new concept in real estate, where a private developer has built a business centre that has 2 revolving towers.

Construction of Valley View Business Park commenced in 2012 and is now ready for occupation. This project has had the fastest turn-around time in terms of construction. This development comprises an 11-storey twin tower with two revolving restaurants nestled in the serene suburb of Parklands, along Limuru

November/December 2015 | East Africa Infrastruture & Engineering Review

Road, right behind Caltex Plaza, a perfect location for a quick drive to work.

The second tower is eight stories high. It is bordered by the Mathare River and the lush Muthaiga estate on one side, the proposed M15A highway and City Park Nature Reserve. The facilities provide 600,000 square feet of prime office space with magnificent views of the leafy Muthaiga and the greenery of City Park Forest. It features three levels of basement parking with a capacity of 600 cars. Built with the highest environmental standards in mind, the green surrounding of the development creates a calm aura, exudes luxury and offers a perfect business environment away from the city’s hustle and bustle.

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INNOVATION One can only imagine setting up an office or restaurant in one of the towers – get to enjoy the magnificent view of the Nairobi skyline as you perform your day to day business. A restaurant or hotel can set base here and appeal to the businesses housed at Valley View Business Park.

Owing to its’ unique design and architectural concept, the ultra-modern Valley View Business Park, the complex has various architectural features that are designed to offer a calm and serene working environment – not to mention the location.

Design architecture in the real estate market is delving into the future of real estate developments in Africa. As more and more investors and international look to Kenya, as the investment destination of Africa, it has become imperative that real estate developers and marketers think out of the box to appeal to the growing number of discerning and established businesses and brands.

The business park that is being

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solely marketed and sold by Villa Care Ltd, is designed to appeal to the person that is not looking at home investment opportunities. This person is actively and aggressively penetrating the commercial investment areas and has gradually changed the face of Nairobi.

internationally renowned developers and architects have set their sights on Nairobi as the regions commercial investment hub. For most people coming from the West, Central and Southern African regions of Africa

While investing billions of shillings into the thriving and most promising Kenyan economy, this investor is responsible for the continuously changing Nairobi skyline.

Change is already sweeping through the Nairobi suburbs namely Parklands, Westlands, UpperHill, Adams Arcade, Hurlingham and Mombasa Road. These areas are now home to the newest and most conventionally designed world class hotels It is not hidden that internationally renowned developers and architects have set their sights on Nairobi as the regions commercial investment hub.

For most people coming from the West, Central and Southern African regions of Africa, when exiting or entering the continent, Nairobi is the central convergence zone. Africa has fast positioned itself as the next frontier and, Nairobi is set to lead the way. Going by the new architectural standards, building design in Nairobi is at its peak and no investor wants to be left behind.

East Africa Infrastruture & Engineering Review | November/December 2015

CASE STUDY

Best construction practices in Singapore worth emulating

By Abhishek Murthy

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he structural integrity and the stability of buildings are as important as the buildings’ functionality, alongside user and occupier safety. To date, across many countries in Southeast Asia, there has been inadequate attention exercised in quality control during design and construction stages and the maintenance of buildings throughout their service life.

In this regard, best construction practices in Singapore stand out in terms of continual adherence to process improvements.

These best construction practices in Singapore are worth emulating as the construction and infrastructure sector in the country – and the neighbouring Southeast Asian countries – continue to expand.

Many projections abound on continued strong growth of the construction and infrastructure sector despite recent economic challenges. This growth will be driven by infrastructure development in Malaysia, the need for key new public sector projects in Indonesia and the development of new facilities being carried out from ground-zero in Myanmar. All these have led analysts to forecast double digit growth a year for this sector over the next few years.

Need for More Construction Quality Standards Alongside this rapid development, there has been growing focus on the development of construction quality standards. Some of these standards have been developed by the private sector, and in some cases, the authorities have instituted best practices. But to date, there have been a lack of uniformity in neither approach nor industry consensus across and within ASEAN. Singapore stands out in this instance. The republic is a model example where the building/

In 1989, authorities in Singapore instituted legislation which made it mandatory for construction projects in the republic to seek certified design reviews prior to the commencement of construction construction sector has implemented robust testing/inspection/certification procedures in design review, site supervision and mandatory checks in the post-construction period.

In the specific area of construction design in Singapore, it is now mandatory for construction projects to seek a design review of the Professional Engineer’s design by an Accredited Checker, who is one of senior standing in the circle of Professional Engineers.

Without such a design review, any intended project would not be able to

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proceed to the next level.

This practice arose after one specific development, in particular, the collapse of Hotel New World in Singapore in March 1986. One of the key findings in the aftermath of the collapse was the discovery that the building’s structure was grossly underdesigned. In that painful episode, the catastrophe could have been avoided and lives and the property could have been saved.

In 1989, authorities in Singapore instituted legislation which made it mandatory for construction projects in the republic to seek certified design reviews prior to the commencement of construction. Also arising out of the Hotel New World incident, independent construction supervision and Periodic Structural Inspections of buildings – after completion of construction – were also mandated in 1989.

These were mandated because of the findings in the Hotel New World inquiry that the construction quality of the building was very poor and there were plenty of warning signs indicating a possible collapse during the 13 years during which the building stood.

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CASE STUDY The empirical evidence of improvements in the construction industry after 1989, from our point of view, has been startling. In the 1990s, as mandatory periodic structural inspection commenced, it was not unusual to find some structural defects one in every 50 buildings inspected.

Almost 25 years on, with design reviews and independent construction being mandated, we find some structural defects one in every 200 buildings.

This is an important key learning and impact in the aftermath of the Hotel New World incident, and a key takeaway for the construction industry in the region.

Design Review Certification – A Need for S’pore-type Standards in Southeast Asia First, from our own estimate, even without a mandatory requirement for a certified design review, the cost of such a review is about 0.15% of the total construction cost of the project.

By undertaking a design review at such a fractional cost, it ensures safety and a peace of mind from the very conceptualisation of the project.

By this very point, the building and construction sector in the Southeast Asian region (outside of Singapore) should strongly pursue a design review from the very conception of the project, even so when such a task in not mandatory.

By the very nature of seeking a certified opinion at the design review stage, it becomes an “insurance” for the structural integrity, building stability and user and occupier safety that is being sought after. Seen within this context, the quest for a certification becomes a small premium for which safety is far more assured.

Lack of Mandatory Testing During Construction in ASEAN Second, having crossed the need for a professionally certified opinion at the design stage, another “insurance” policy step should be taken during the construction phase. Again, today in this region, there are no mandatory requirements for professional engineering certification during construction in most countries.

However, instituting such a practice by

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industry would constitute best practice for the overall betterment of the sector and society.

Professional engineering testing and certification during construction is really about ensuring quality control at every step during the evolution of the building. Based our experience and estimates, the services of engaging such professionally certified engineers should amount to no more than 1% of the overall cost of a construction project. This is a small “premium” to pay for overall quality and safety.

Third, the area where certification should be sought as best practice pertains to the area of Periodic Structural Inspections (PSI). It is to be expected that building structures, over

The reality is that, in most countries around the region, there is no requirement for PSIs. If structural defects go undetected, this may lead to a real risk of an eventual partial or full collapse

time, will have tell-tale signs or warning signs of distress – before a collapse happens. Conducting PSIs ensures early detection.

The reality is that, in most countries around the region, there is no requirement for PSIs. If structural defects go undetected, this may lead to a real risk of an eventual partial or full collapse. In this regard, there have been ample cases of building collapses around the world in the past few years, leading to a tragic loss of lives.

If certification has been conducted to the highest professional standards at the design, construction and post construction phases, then any subsequent rectification work becomes minimal. As a case in point, in a particular project undertaken by us in 1988, we encountered a situation where the structural instability of four residential blocks appeared to compromise the safety of residents.

If periodic checks had been conducted, the cost of instantaneous rectification would have been minimal.

However, in the absence of these periodic assessments, the cost of repair and strengthening the constructed facility amounted to S$6 million.

To put this in a bigger context, the cost of rebuilding the 4 blocks should they have collapsed because defects were not detected early would have amounted to $60 million plus loss of lives.

The key here is really about the importance of seeking professional engineering certification, testing and inspection at the pre-, during and after construction phases. It constitutes best practice by the industry. It should be right thing to do Today, there is understanding of the benefits but the trigger to implement certification and testing at every step is still lacking. Early detection of structural defects and carrying out remedial works will prevent excessive deterioration of structures. Early detection minimizes the chances of expensive repairs and possibly even total collapse and loss of lives.

East Africa Infrastruture & Engineering Review | November/December 2015

COMPANY PROFILE

With its undertaking on the YALI Centre at Kenyatta University, PSIL continues to inspire confidence by successfully delivering ambitious projects with impeccable results

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he construction industry in East Africa region and indeed globally is undergoing rapid and phenomenal change. The hitherto ‘nondescript’ interior design specialists have since taken their positions and filled the gap between ‘provision of accommodation or space and optimal utilization of the same’ by way of efficient interior Layout design. It is for this very noble development that Parbat Siyani Interiors Limited was incorporated and registered in May 2013. Parbat Siyani Interiors Ltd seeks to actualize interior designers imaginations by way of resourcing quality, environmental friendly and sustainable products that convert an empty space to a usable one and optimumly so. This informs their mission and vision statements.

Since inception, PSIL has had the privilege to demonstrate their services to several clientele and who range from property developers, corporate tenants, anchor tenants and individuals.

Their recent significant involvement was the YALI Regional Leadership Centers in Africa, Kenya chapter, based at Kenyatta University. The programme targets to nurture young leaders between the ages 18 and 35. Kenya center will cater for youth from the East Africa region. The center will offer entrepreneurship support services, mentoring, technology, and access to capital.

Through the Center, young leaders from diverse background will get a chance to share platform by networking with each other, American professionals and experts. The YALI project is funded by United States Agency for International Development (USAID) in collaboration with the US government.

PSIL won the tender and executed an impressive interior design job for the facility. The center was later

to host US President Barrack Obama, who officially launched the YALI programme.

An impressive track record over the years has seen PSIL inspire the confidence of a growing number of clients in the region, amidst an increasing clamour for a market that is characterized by increased competition.

The formation of PSIL undoubtedly coincides

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COMPANY PROFILE

with unpredented influx of specialists in interior design and who have all along provided their services not very independently with architects. Until recently, there has been a very thin line between architecture and interior design. With a most welcome departure from this, PSIL finds itself in a leading position on matters of interior design. It aims at establishing a relationship with architects and interior designers with a view to helping prospective clients achieve optimal use of available space cost effectively.

To achieve this, PSIL has established its core operations in two stations; the Head Office is located on the first floor of Prabham, 1st Parklands Avenue and workshops at Mlolongo area, Beijing Road along Mombasa Road.

The Head Office

This is the company’s nerve centre and from where all the operations are directed. With seven managerial staff under the directorship of Mr. Deepak R. Kerai, all official correspondences, in-house design and project planning are carried out here. It also serves as an ideal ‘exhibition’ centre to showcase the kind of quality that PSIL produces.

The Workshop

This is located at Mlolongo, Machakos County where product is done and is also a place to showcase the product process to interested and/ or prospective clients. Clients are usually encouraged to visit the yard to experience was it that several have

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opted for different designs/products than what had initially been desired.

Health and Safety

PSIL is cognizant of the need to achieve zero injuries and fatalities in their operations. To this end, PSIL employs an accredited Health and Safety Consultant to guide and continually advise on avoidance of health and safety hazards. The number one priority in the workplace is health and safety of all staff; this has proved to be a key motivational factor to the staff.

clients’ profound satisfaction with the products and services that leaves them yearning for more.

PSL has created a considerable edge in the market, which it strives to uphold and improve with time.

Projects

PSIL has had opportunities to demonstrate her services, undertaking major projects for various prominent return clients. Indeed, one conspicuous observation is the number of projects

by PSIL where the developer or architect appears more than once.

This is PSIL’s proud confirmation of East Africa Infrastruture & Engineering Review | November/December 2015

COMPANY PROFILE

Mwanzoni Limited: providing world class services by adding value from the very start At MWANZONI, project and programme management is one of our four core services. We have the expertise and resources to ensure efficiency, timely action and quality service. Our main aim is to offer parallel project management expertise and successful project delivery.

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evelopment Management: The WANZONI approach to development management has one overriding goal: to furnish the client with a picture or guide of the steps involved in delivering sustainable development. The client is provided with a blueprint of the steps and the timescale involved. The process provides a clear and comprehensive framework: it delineates the tools to be used, and provides examples of best practices that the industry has to offer.

Such a guide offers assurance that the project will be delivered in a timely manner and to the set specifications.

The plan outlines our standard approach to development and completion. It also offers an image of

November/December 2015 | East Africa Infrastruture & Engineering Review

what the successfully delivered project looks like. Using such a blueprint, the client is able to be fully involved throughout the evolution of the project or programme.

Procurement and Contract Management: MWANZONI understands that the process of selecting consultants, contractors and raw materials can make or break a project or programme. This why we employ top-of-the-range procedures when managing and controlling the vital functions of procurement and contracting. Ultimately, we want any personnel or organization that we commission to work in tandem with our supervisory sections to ensure that the project or programme that is delivered to our clients meets the highest industry standards.

Site and Construction Management: MWANZONI recognizes that, ultimately, the area of ground where the project or programme will be situated is permanent. This is why both the ground work and the construction work carried out at the site must be painstakingly supervised.

The aim of the administrative work

We are proud to be associated with Mwanzoni Limited

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COMPANY PROFILE

carried out at the site and around the construction is to deliver excellence in both the physical structure and its environs.

The site and construction support services offered by MWANZONI are directed towards enhancing the quality and value of both the building and the built environment.

Our site and construction management professionals focus on providing leading practices in helping our clients manage all issues affecting the programme or project.

At MWANZONI, we support our clients to develop strategies for property and estate management. This critical function of administering the property and estate entails offering advisory support regarding property leasing and management, facility management and estate management.

Property leasing and management: We offer our clients advisory services on strategies that have proved effective in the area of property leasing and management.

The aim of imparting these skills is simple: to enable our clients achieve the desired return on investment.

Facilities Management: We advise on how to manage the coordination of spaces, infrastructure, people and organization of any real estate project. We develop strategies that guide clients on best utilization and maintenance practices that will maximize the use of these facilities.

Estate Management: Once the project is complete, effective estate management is key to achieving top productivity in the investment. MWANZONI Ltd offers clients advisory support to ensure their estate runs smoothly, that occupancy is at its peak and, importantly, that the project remains profitable.

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SERVCONSULT

Electrical & Mechanical Engineering Consultants

State of the Art Systems

We are glad to be associated with Mwanzoni Limited A4, Riara Paddocks, Riara Rd, Off Ngong Rd. P.O.Box 41693 - 00100, Nairobi, Kenya.

Tel: +254 (0) 20 2460404 Cell: +254 725 705722 Email: info@servconsult.org /servconsult87@gmail.com East Africa Infrastruture & Engineering Review | November/December 2015

November/December 2015 | East Africa Infrastruture & Engineering Review

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OPINION

Quality assurance in the construction industry has to be implemented Daniel Manduku, Chief Executive Officer, National Construction Authority

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he National Construction Authority was established by the National Construction Authority Act No. 41 of 2011. The Authority’s main mandate is to oversee the construction industry and coordinate its development. The Authority is geared towards streamlining, overhauling and regulating an industry that has for years suffered poor legislative framework and has been dominated by unqualified persons.

Quality assurance in the construction cannot be overemphasized. One key challenge facing the construction industry has been resistance to change. The industry had largely been dominated by rogue contractors, less informed developers, unskilled labour-force and several informal businesses within the entire

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supply chain of the construction.

As such, trying to professionalize the industry has not been without resistance. Also the challenge of inadequate political and social support from various stakeholders- particularly ignorant contractors, developers and

Since last year, the authority has carried out over 15 contractors and construction workers trainings in different parts of the country

labour force engaged in the industry.

Insufficient staff engaged in the authority to adequately cover the nationwide mandate has been a challenge along with inadequate finance from the exchequer to adequately facilitate quality assurance checks not mentioning the low levels of compliance by developers in project registration and construction levy payments. The authority also lacks enforcement capability and particularly prosecution power.

Over 16,000 contractors are registered to date in different categories ranging from buildings, civil works and other specialized contractors is a major achievement for us. To enhance compliance and quality assurance the authority has carried out several sting operations in construction

East Africa Infrastruture & Engineering Review | November/December 2015

OPINION

sites across the country. Also through a national wide rapid results initiative the authority has approximately 150,000 registered site workers and supervisors, but not all of them are registered, since accreditation is granted once the registered and the unregistered site workers and supervisors meet a certain criteria.

However, through a consultative process the authority has developed and launched the first ever National Construction Research Agenda (Nacra).

The agenda has 17 wide construction research areas which execution is aimed at providing practical solutions to most challenges facing the construction industry in Kenya.

Even though NCA is a major stakeholder in the slums upgrading programme, the authority is being spearheaded by the Ministry of Devolution. The NCA role in this has been technical design and supervision.

The authority is currently playing a similar role in implementation of 20 Huduma Centres across the country.

Since last year, the authority has carried out over 15 contractors and construction workers trainings in different parts of the country. To date over 16,000 construction business owners and workers have been trained.

Currently the Authority is training youths on civil works in five slums: Kibera, Mukuru Kwa Njenga, Kiandutu, Korogocho and Mathare.

As per the NCA Act, no. 41 of 2011, all construction projects are supposed to be registered with the authority.

The authority has developed project registration criteria which requires among other things proof of approval of the project by other agencies such as the county governments’ development control units and the Nema.

The authority has also been undertaking joint quality assurance initiatives with county governments for example the Nairobi county government in carrying out building audits and inspections exercise.

An initiative to bring the approval functions of the three institutions under one roof is underway to enhance

service provision.

One of the problems is rogue people masquerading as contractors.

They end up doing shoddy work. Some buildings are also put up without proper design structures.

In some cases, buildings don’t even have the necessary approvals for instance by county governments. Lack of projects supervision by qualified professionals has also been noted as a concern.

The use of counterfeit materials is also a problem. We also have inadequate construction skills in the industry leading to poor workmanship.

In the long run, we would want to have a National Construction Training Institutes, National Construction Research Institutes and also see the establishment of construction funds That is why we have prioritised training artisans at the moment. No contractors have been blacklisted so far. However; there are a few contractors under investigations following some of the recent incidences of collapsing buildings.

Currently the buildings under construction which do not comply with the requirements of the relevant laws are stopped by the authority. The authority gives a copy of that order to the police in the area concerned to ensure the order is complied with.

The authority is also managing the issue through legislation, where NCA law requires that a minimum of 30 per cent of value of any contract won

November/December 2015 | East Africa Infrastruture & Engineering Review

locally by foreign contractors will be undertaken by local contractors The authority has already completed the first mapping survey of technical training institutions in Nairobi.

A similar exercise which commenced on September 14, 2015 is currently being carried out in all the counties.

The objective of this study is to reveal gaps in the training institutions with an aim of formulating policy recommendations to close them as well as establishing areas of cooperation between the authority and the training institutions.

The authority is also working closely with the TVETA to promote technical trainings in institutions of learning.

The authority has a well-developed database with approximately 150,000 accredited site supervisor and construction workers. They are from different disciplines such as masonry, carpentry and plumbing from which developers can choose from.To ensure the construction industry regulated to the level best.

We have to ensure quality assurance in the construction industry is implemented. It is our plan to enhance research in the construction industry. Our focus also is to build capacity within the construction industry.

In the long run, we would want to have a National Construction Training Institutes, National Construction Research Institutes and also see the establishment of construction funds.

The funds will be deposited with the local banks in order to avail to local contractor a number of services.

These will include cheaper loans and financing of projects, tender security bids, performance bonds and advance payment guarantees.

Ensuring that quality assurance in the construction industry is maintained will not only minimize fatalities in the construction industry in the country but also boost investor confidence.

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SPECIAL FEATURE

Africa’s water taps running dry E ven as Africa is applauded for its economic growth and development over the last decade several key pillars required for sustainable growth have come under increasing pressure. These are adequate housing, power and transport infrastructure but arguably the one requiring the most urgent intervention is water supply. According to a 2012 water conference dealing with water scarcity in Africa, out of Africa’s 800 million inhabitants over 300 million live without adequate water supply and the situation is expected to deteriorate even further by 2030 with the possible threat of mass displacement of people.

Several reasons have been brought forward to explain Africa’s predicament not least of all being rapid population growth and climate change. In urban areas there is a huge disparity between the cost of clean water for the poor who do not have running water in their homes and the more affluent with the poor paying over 4 times more for water than their rich counterparts.

In addition, in the rural areas where

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the larger portion of the population live, piped water is not available and in many instances women and children spend a large part of their day trekking long distances to fetch water meaning that no economic activities or schooling can be undertaken. The poor quality water that is obtained from pools and streams shared with livestock on the other hand are sources of disease which further compound the problem by having a major impact on the population’s health.

Africa being predominantly an agriculturally based economy, it means that due to inadequate water supply for agricultural production the threat to food security is always just over the horizon and becomes manifest when there is either famine or flooding due to erratic and seasonal rainfall.

Lack of investment

Water supply systems in Africa can be described as an area where under investment is rife. Though South Africa has one of the cleanest water systems in the world it is ranked as the 30th

driest country in the world as well.

Currently there is a real threat of a crisis emerging that would affect the country’s 49 million people. This state of affairs has been blamed on lack of adequate investment in the water sector, leakages and theft as well as infrequent rains that have left dam waters at historically low levels.

In Nigeria an estimated $500 million of budgeted funds is annually sunk into the water sector though government claims $2.05 billion is the annual figure needed in investments to attain the Millennium Development Goal (MDG) targets. However experts insist that the sector’s problems are less about availability of funds and more about mismanagement of resources and poor utilization of available finances.

According to the Water and Environmental Affairs in South Africa, over R570Bn(US$57Bn) will be needed for investment across South Africa’s water value chain, in the coming 10 years. The money would go into water resource infrastructure, services and

East Africa Infrastruture & Engineering Review | November/December 2015

SPECIAL FEATURE

conservation.

Increasing population

Populations in Africa are exploding coupled with economic development as well as urbanization and this has raised more problems. A look at the Nile Basin shows that pollution and environmental degradation are decreasing water availability for Egypt.

Egypt is facing an annual water deficit of around 7 billion cubic metres. Infact, United Nations is already warning that Egypt could run out of water by the year 2025. This is also true for many other countries in Africa

Conflict

Because of all these factors the available water has become a source of conflict between communities and

even countries. The Nile for instance has seen protagonists issue threats of war should its flow be interrupted by countries further upstream. Running through Egypt, Ethiopia, and Sudan, the Nile’s water has the potential to spark conflict and unrest. In Western Africa the Volta river basin that extends from Guinea through Mali and down to Nigeria is vital for food, water and transportation, this is especially true for Mali which is one of the world’s poorest countries, but the river’s overusage is contributing to an increasingly polluted and unusable water source.

In southern Africa, the Zambezi river basin is one of the world’s most overused river systems, and Zambia and Zimbabwe compete fiercely over it.

To date countries have resolved their differences but with the sustained demand for water, the situation could degenerate to outright hostility and aggression.

The Nile basin is a good case study of the threat of conflict over water.

Egypt controls majority of the water resource extracted from the Nile River due to a colonial-era treaty, which guaranteed Egypt 90 percent share of the Nile, and prevented their neighbors from extracting even a single drop from the Nile without permission.

However, countries along the Nile such as Burundi, and Ethiopia have taken advantage of the political strife that had engulfed Egypt and are gaining more control over the rights for the Nile. With the Nile supplying 95 percent of Egypt’s freshwater, losing some of the water supply can cause additional problems for Egypt. In the long-term however, it will be necessary to create a legal order on national and regional level that regulates the fair distribution of water in the region.

Water loses

Africa is a hot continent and water losses from evaporation in dams and water pans is high. In addition old and dilapidated piping systems contribute to the loss of millions of litres of water annually. In South Africa the government has shed the spot light on leakages and water theft in recent years and has set targets to reduce water losses.

November/December 2015 | East Africa Infrastruture & Engineering Review

It is estimated that a third of all water goes to waste due to leakages in aging pipelines that were laid over 80 years ago. In Emfuleni Municipality which is one of three municipalities that comprise the Gauteng region, it was noted that at night when there is less demand for water, pressure build up in the pipes increased leakages and so a pumping station was innovatively set up to reduce the pressure and this has resulted in savings of millions of litres of water which translates to US$ 3million a year.

Water losses due to evaporation are also an issue in Egypt where the country receives less than 80 mm of rainfall a year, and only 6percent of the country is arable and agricultural land, with the rest being desert. This leads to excessive watering and the use of wasteful irrigation techniques such as flood irrigation. Nowadays, Egypt’s irrigation network draws almost entirely from the Aswan High Dam, which regulates more than 18,000 miles of canals and sub-canals that push out into the country’s farmlands adjacent to the river. This system is highly inefficient, losing as much as 3 billion cubic meters of Nile water per year through evaporation and could be detrimental by not only intensifying water and water stress but also creating unemployment. A further decrease in water supply would lead to a decline in arable land available for agriculture, and with agriculture being the biggest employer of youth in Egypt, water scarcity could lead to increased unemployment levels.

Corruption

Arguably Africa’s greatest nemesis is corruption and the loss of funds earmarked for water supply projects has caused projects to stall or not to take off altogether. In Nigeria for instance, issues revolving poor operation and maintenance, inept institutions, insufficient technical capacity and persistent implementation failure are tied into the fact that the financial management structure in the water and sanitation sector is largely described as opaque while uncoordinated water policies facilitate replication of efforts; weakening intersectoral harmonization as every

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SPECIAL FEATURE

tier of government pursues its own water agenda. The result is that 70 million Nigerians live without access to safe drinking water while 102 million don’t have access to improved sanitary services.

Ramon Reigada a former Second Secretary to the European Union delegation in Nigeria, once stated that, “It is well known that the public financial management in Nigeria should be improved and the water sector is not an exception to this. So even if the funds are available and the administration and public service willing to spend it, it is not easy to keep running water schemes for a long time if you do not have the proper financial planning capacity.”

Urbanisation

In most of Africa the rural areas are characterized by lack of running water or sanitation while in the urban areas most of the population lives in slums and has to rely on water vendors and kiosks where they pay a premium for water compared to the cost of piped water in more affluent

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parts of the cities. In Kenya for instance it is estimated that over 60% of the population of Nairobi lives in slums. An estimated 24% of residents of informal settlements have access to household toilet facilities, 68% rely on shared facilities and 6% have no access to facilities at all and often resort to ‘flying toilets’ which pose a serious health hazard. Latrine emptying and sludge removal are handled by small scale operators under unsanitary conditions.

The Kenyan Water sector has undergone a series of significant reforms which has established commercially orientated water and sewerage companies with asset owning water services boards. Most utilities have established informal settlement departments to manage service delivery in low income areas but these units often have limited resources and plans to address the growing challenges in expanding low income areas.

Despite these efforts, developing access to safe water and adequate sanitation services in most if Africa remains painfully slow is wide

ranging, complex and complicated by corruption that pervades every sector of the economy.

Investing in improved water supply and sanitation outweighs the costs.

Economic benefits range from 3 to 34 US dollars per 1 USD invested in view of what is won in public health, agriculture and industry. Spoken from the perspective of the Millennium Development Goals and also the post2015 agenda, there are high economic benefits to meeting these goals.

Creating a better water infrastructure enhances the life standard of a population and encourages investment which creates jobs — it is a competitive advantage as advanced by the Stockholm International Water Institute.

However, it may take some more time for economic players on all levels to recognise the value of an advanced water infrastructure. The perception process might need help to catch up with reality. It is vital to debate the issue of water management not only in a humanitarian but also in an economic context.

East Africa Infrastruture & Engineering Review | November/December 2015

INSURANCE

Kenyan workers get insurance that protects them in line of duty

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s more Kenyans become aware of the need to cushion themselves from disasters both natural and manmade by taking insurance policies, insurance companies are becoming innovative with new products.

The recent one is the professional indemnity which insures professionals in their line of duty.

As real estate continued to create new set of Kenya property barons some years back, contractors and construction companies were set to reap from many investors wishing to cash in on the high population growth

that was behind the rapid economic expansion of towns and momentous high demand for housing.

One such contractor was Engineer Stanley Kibichu, a contractor now based in Nakuru town who got a sh450million worth of housing contract in the flamingo town. Within a month after signing the agreement Mr. Kibichu aided by his project managers and hundreds of workforce had one modern multi-storied apartment standing tall estimated to have taken in more than Sh20m. But not for long. The building came tumbling down owing

November/December 2015 | East Africa Infrastruture & Engineering Review

to what Engineer Kibichu described as negligence and laxity from the side of his project managers.

The following day none of the two project managers could be reached and it was Engineer Kibichu who was left to face the wrath of his clients.

“I was very lucky. I had obtained a professional indemnity insurance cover against errors and omissions (E&O) when I was working in the US back in year 2000,” Engineer Kibichu explained wearing a smile. “If it were not for this cover I could have been grounded for life and my career perhaps could have fizzled,” he adds.

Today Engineer Kibichu’s construction company has overseen projects worth more than one billion shillings in Kenya alone and his star still shines bright.

Engineer Kibichu’s ordeal is a classic example of the need for a specialized package of insurance cover called

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INSURANCE

professional indemnity insurance or simply insurance safeguarding professionals like lawyers, contractors, doctors, lecturers, engineers, designers, or accountants against common errors or omissions in their line of rendering services, a cover that is now taking shape in Kenya as more professionals now realize the need to be insured in their course of duty.

The policy pays on behalf of the insured all sums which the insured becomes legally obligated to pay as damages by reason of liability arising out of any negligent act, mistake, error or omission in the rendering of or failure to render professional services to clients in his or her capacity as a professional.

According to Wikipedia this form of liability insurance helps protect professional advice- and serviceproviding individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit.

In Kenya professional insurers pay premiums depending on position the insured hold and his or her income level. “Everybody makes mistakes and Professionals are no exception,” says Bosom Insurance Brokers.

According to Bosom insurance brokers one of the financial institutions offering the professional cover, professional indemnity policy will only cover those risks or liabilities specifically enumerated in the policy document and not criminal prosecution, or any form of all forms of legal liability under civil law. Further, it does not cover the claims which may relate to incidents occurring before the

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Professional indemnity cover is an innovative product with growing realization of how common mistakes are and that some of them are too expensive to bear coverage.

Kenyan professionals are fast moving to supplement compulsory covers of personal accident and those of car or motor for better deals.

“Professional indemnity cover is an innovative product with growing realization of how common mistakes are and that some of them are too expensive to bear.” Dr. Ezekiel Kedali, a private doctor based in Nairobi.

Mr. Kedali adds that the cover is important to him as it helps protect his fortunes including those earned from other kinds of insurance covers.

“Mistakes are bound to happen some in this sector may cost lives and obtaining professional cover is not only a good thing but also a guaranteed security to ones profession in case of a tragic mistake” adds Dr. Kedali. Mr. Kedali contributes Sh4, 000 monthly towards the cover. Professional indemnity insurance is also a requirement in business operation, for example, a

minimum of 10 million is required for any medical insurer in Kenya.

Insurance firms providing professional indemnity insurance locally include UAP insurance, APA insurance, Chartis Insurance and Madison insurance among others.

Clients depend upon professionals to do the job they’re hired to do. “A lawyer might not get a case filed in a timely manner and exceed the statute of limitations. There could be financial damage to the client and a good lawyer should know how to protect himself,” said Philip Londe who has worked in the insurance industry for the last 30 years. According to Philip, majority of professionals and business people who need professional liability insurance “have no idea that this is a coverage they should probably have.”

Though the number of players in the insurance sector has continued to grow, penetration of insurance products has remained low in Kenya, for example only 7 percent of its 39 million people were insured according to data from the Central Bank and the Kenyan Insurance industry stood at 2.63 percent of the GDP in 2012. Market analyst however, observes that Kenyans are becoming more informed with vigorous marketing and that the expansion of the country’s middle class that has improved per capita income, has led to increased uptake of insurance products such as professional liability covers.

Significant gains have also been made where traditional methods of distribution such as agents and brokers have been supplemented by other high potential channels such as Bancassurance, internet and worksite marketing, tele and virtual marketing and micro insurance.

Increased awareness has also led to the growth of local insurance sectors with Association of Kenyan Insurers, AKI, members rising from humble figures to the current 46 registered companies operating in the country.

With increased competition, the sector has recently become more aggressive with a notable development of innovative products coupled with investment in marketing that has led to increased knowledge of the need for insurance and most significant the uptake of covers by the population.

East Africa Infrastruture & Engineering Review | November/December 2015

SECURITY

As the security industry continues to innovate. Deployment should start at the project design stage

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Expert from a leading security contractor – Phorm Security Plus CEO, Mr. Philip Orem

nvolving security experts at design level can save a developer up to 40 per cent of total costs. However, few have woken up to this reality amid the construction boom in East Africa. As a result, more expenditure is being incurred on security fittings and deployments after projects have been completed.

Achieving the delivery of safe and secure structures is often affected by a plethora of factors that have direct long-term cost implications on the completed project. It is an established fact in the Kenyan market that security installation is often done as an afterthought, and is most likely an eventual demand by tenants.

According to Mr. Philip Orem, Managing Director of Phorm Security Limited, a leading security solutions firm in Nairobi, Kenya, getting it right from the beginning will facilitate achievement of a balance between the security and safety goals as well as other design objectives, and the needs of the facility.

“Security is the most basic necessity for any building, property and investment. And any potential tenant never overlooks the security provisions for any particular building; for most times there is serious investment at stake. Diamond and gold (for example), are naturally secured under rocks, and

pearls under the water; they attain more significant value after cutting and value adding. Additional investment is required under security considerations because of the added value.

“And the first step is to have an integrated design process where all of the design team members come together to understand each other’s goals,” Says Mr. Orem. “The opinion and active involvement of security consultants is paramount if installation nightmares are to be avoided in the end.” He adds that security must be seen as a management tool that is part

November/December 2015 | East Africa Infrastruture & Engineering Review

and parcel of the design and planning of construction projects.

He adds that design of buildings requires the integration of many kinds of information into an elegant, useful, and durable whole. Because many times, buildings may lose commercial pull because of the (lack of ) security status of an area. And whereas many building experts are generally helpless when it comes to addressing this issue, others simply think that by installing any security gadgets, they may improve matters. Clients are much more informed regarding security and give

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SECURITY such buildings a wide berth.

An integrated design process includes the active and continuing participation of users and building technologists, contractors, cost consultants, civil engineers, mechanical and electrical engineers, structural engineers, specifications specialists, and consultants from many specialized fields such as security. The best buildings result from continual, organized collaboration among all players throughout the project’s life cycle.

Phorm Security Limited specializes in the design of security solutions, building management & automation and integration systems. Our products and services are based on technological innovations. The firm offers industry specific security solutions for a wide spectrum of sectors. Some of the company’s clients are in various sectors, such as the hospitality industry, the financial sector, health, education, and other corporate entities.

“We have the capacity and appropriate technology as well as the personnel to offer innovative security measures for each industry,” says the CEO. Phorm Security Plus has tailormade solutions for each industry and has been involved in solving security problems for various corporate bodies both in Kenya and abroad.

The company also offers security products that are used in integration of building management systems: structured cabling; telecommunications; radio; communication; thermal imaging of buildings; integrated building automation system; visitor verification systems and lift management systems; intelligent CCTV security systems; automatic identifications and data collection.

Other solutions available include Smart home (home comfort system); Building controls; Energy audit, control and maintenance; Sensors, switches and missions critical applications; Real alarm with video verification systems; Alarm system, perimeter security, access control, low voltage

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Apart from delivering beautiful structures, advanced integrated building automation and security system enhance the value of buildings. This is the kind of “Smart” building systems that we, as a company, consider beautiful

distribution systems, fire alarm systems and more; Window and door glass fittings. Other offerings include security doors; E-fence; turnstiles and gates, and remote video management & remote security systems which are mostly preferred in the hospitality industry establishments and high-end residential areas.

“In addition our technological innovations have given birth to, among other high-end systems, the unbeatable intelligence security system; which is the anti-theft/antirobbery system which works in seconds to save lives and losses. This state of the art security system automatically turns your house into total darkness whenever danger strikes, hence turning your enemy temporariry blind (unable to harm or steal), instantly; thereby shuting them off and giving the tenant the advantage as he is better

accustomed to the house layout. This is a unique and amazing system is one of the unique innovations courtesy by our design and development team. It is absolutely unstoppable, and works perfectly both day and night,” says Mr. Orem.

Our state – of the art systems are trusted and can work even in areas which have all along proved hostile very hostile and insecure, is harmless yet unbeatable; and can be integrated into any alarm system both at home, or in the office.

“Therefore, even when most hotels may be cautious about security, during this era of terror awareness and insecurity, but Mr. Orem gives an assurance that reliable and fool-proof security can still be achieved, through technology and innovation; as long as commitment and diligence is applied,” says Mr. Orem. “Guests would only be comfortable in a hotel where their security is guaranteed. Discerning guests would prefer hotels with serious investment in security as opposed to “cheap” establishments with little or no consideration for the safety of guests,” he adds.

He says that concealed and remote cameras can therefore be installed in strategic positions (not visible as has always been the case) in the buildings.

This, again, can only be made easier if security consultants are involved from the very beginning during design and construction of the building.

There are also times when design requirements to address the various security and safety concerns pose conflicts in arriving at acceptable design and construction solutions. An example could be use of blast resistant glass or strict access control systems to stop intrusion, both of which will affect emergency egress in case of any emergencies in the building. Other installations also affect the outlook and appearance of the building. Security consultants often go to great lengths to provide security solutions that cause minimal conflict with normal operations of tenants, when brought in to make installations to already finished

East Africa Infrastruture & Engineering Review | November/December 2015

SECURITY

and occupied buildings.

To ensure that clients get best security solutions that the market has to offer, Phorm Security Limited has maintained distribution partnerships with world leading security solutions providers, and taps the most innovative solutions from the international arena that offer practical solutions for local security problems.

Innovation in the development of security solutions is very important, due to the increasingly sophisticated nature of today’s crime and fast evolving security situation that is fueled by rapid economic growth. In Kenya, crooks have gone high-tech, and tend to have their finger on the pulse of trends in the security industry on the global scene.

They are therefore able to counter cutting edge security solutions that are hitting the local market every day in response to the high degree of ambitious and daring white collar crime. Several institutions are frequently hit by fraudsters and are therefore heavily investing in security solutions.

Kenya currently spends between US$50m to $100m annually on security equipment, according to source in the local market. Although demand for world-class security systems has increased, the associated high costs make it unaffordable for many organisations.

Security capability has not grown in tandem with the gains made in Kenya’s economy. Security firms like have their work cut out for them to not only provide leadership towards achieving higher national security performance,

but also to develop and introduce appropriate technologies and solutions for security enhancement. At the same time, the construction industry needs to wake up to the necessity of involving security consultants in the design and development of building and construction projects.

Phorm Security Plus will continue to broaden its reach and partnerships with key innovators of leading security solutions to effectively arm its clients with the best that the market has to offer.

“Security can never just be left to be under the grace of God,” says Mr. Orem.

November/December 2015 | East Africa Infrastruture & Engineering Review

Innovation in the development of security solutions is very important, due to the increasingly sophisticated nature of today’s crime

“But it is our responsibility. We must be actively involved. We must change our environment from being hostile to being condusive. We must evolve from blame-status to change-status. And we can change it through the right culture, technology and awareness to enhance the security of our planet,” says the MD. “Apart from delivering beautiful structures, advanced integrated building automation and security system enhance the value of buildings.

This is the kind of “Smart” building systems that we, as a company, consider beautiful; it is the kind of value that any building should have; a value beyond its ordinary structural status. Any client for such a house will definitely appreciate its value more than he will raise issues with its overall cost. No one can ignore added value.”

“Phorm Security Plus Ltd. seeks to partner with such likeminded building experts who insist on constructing building that deploy state of the art security which not only makes tenants more comfortable, safe and secure, while enjoying the luxury of their houses; but will also enables developers earn better investment returns,” the CEO concludes.

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HOUSING & CONSTRUCTION

Top 4 reasons why modular construction in Africa is gaining pace

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ore than ever before modular construction in Africa is gaining pace. Proponents of this method say it is cheaper and smart compared to other construction methods.

Many home owners can tell that modular building is cheaper and less time consuming to erect compared with traditional construction methods a move that has attracted many people in Africa consider modular buildings.

However it also brings with it a raft of sustainability benefits as well. Construction Review Online takes a look at three ways in which modular buildings are a lot more environmentally friendly compared to traditionally constructed buildings.

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Use Less Energy Almost 90 % of the modular construction is done off site and hence bringing in the term #prefabricated buildings.

With this approach, there is significantly less disturbance to

the environment surrounding the construction site. Due to the fact these buildings are prefabricated in a controlled factory environment, there is negligible wastage of materials resources and highly efficient use of energy. It takes almost 50 percent less time for the building to be complete compared to a traditionally constructed building.

Furthermore, modular buildings are installed with energy efficient systems for example energy efficient glass, geothermal systems, solar panels and other green features. As a result, not only is the actual construction of the building green, but the long-term running of the building also works out to be quite sustainable. Not only can modular construction reduce energy consumption during the building process by around 67 percent, it also reduces energy costs for its occupants.

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Recycled Materials Technology has made it possible for us to recycle almost anything.

Modular buildings are constructed with recycled (and recyclable) materials for the most part. Recycled steel, recycled wood and even recycled glass are a large part of what makes up a modular building. For instance, Mobile Modular uses 100 percent recyclable glue-less carpet tiles made from post consumer materials. Granted, not every part of the building can be made of recycled material, but all these parts can certainly be reused over and over again without seeing much wear and tear.

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Modular Buildings are Recyclable Buildings Modular buildings are called “portable buildings” for a reason.

They can literally be transported from one place to another without having to go through the process of demolition. The term “modular” comes from the fact that these buildings are built one module (or unit) at a time and are then assembled on site.

So, it stands to reason that they can also be dismantled. This makes it very easy to take down the building without disturbing the surrounding environment with dust, debris and other unwanted pollutants.

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Cost saving Most of the people considering the modular building will of course give cost saving as one of the major reasons to why they chose to build prefab building .

This is bring about by saving labor because everything is almost done in the factory. To this end modular construction in Africa will continue to burgeon as construction industry booms.

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East Africa Infrastruture & Engineering Review | November/December 2015

HOUSING & CONSTRUCTION

Why metal roofing?

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here are countless roofing options for countless budgets, but a little research reveals why metal roofs are superior and often the right choice.

AESTHETICS Metal roofs are available in more styles, profiles, colors and patterns than any other roof material. Regardless of your architectural style, you can find a complimentary metal roof that will look beautiful and out-perform the competition. It’s a common misconception that metal roofs only come in long, vertical panels. Of course, they do, but that’s just the beginning.

Browse the photos in our tile, shake and shingle galleries, and you may be surprised at the beauty and versatility of metal roofing.

LONGEVITY Nothing lasts forever, but the right choice of metal roofing can endure for many lifetimes. Just take a look at the roofs topping countless famed cathedrals and castles in Europe and historic buildings like Thomas Jefferson’s Monticello or the Washington Monument - all examples of metal roofs lasting centuries. If priorities for your roof include low maintenance and longevity, metal

should be one of your first choices.

VERSATILITY Thanks to their light weight and range of profiles, the metal roofing category offers building owners more choices than any other material - particularly for a re-roofing project.

There are very few materials that go over existing roofs as successfully as metal. In fact, metal is one of the only materials that can over nearly any existing roof assembly. Add to this technical benefit a range of beautiful options, and you have the perfect material for replacing an old or failing roof and upgrading the entire building at the same time.

SAFETY No roof can guarantee that a house won’t catch fire, but incombustible metal roofs can eliminate the roof as a fire risk. Metal roofs are also smart choices in earthquake-prone areas thanks to their light weight and rigidity.

Consider this - even the lightest of asphalt shingles is nearly double the weight of an average metal roof, and a standard concrete roof weighs in at 15 tons! Imagine that overhead when the walls start shaking. Another big

November/December 2015 | East Africa Infrastruture & Engineering Review

advantage of a properly configured metal roof is tremendous resistance to high winds. In fact, there is no better material for resisting the damage of extreme weather.

Because metal roofs are mechanically fastened and don’t rely on a rapidly aging adhesive like an asphalt roof (which is why wind warranties on asphalt roofs all expire after only five years!), they are the most durable material for all weather conditions.

GREEN FACTOR All of our metal roofs are manufactured with a significant percentage of recycled material, closing the loop for efficient use of materials, and they offer assemblies that dramatically reduce the amount of heat accumulated in an attic, making them very energy efficient. While some of our finishes are Energy Star certified, all our metal roofs offer exceptional longevity, lowering life-cycle costs and the impact on our diminishing landfills.

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HOUSING & CONSTRUCTION

HDPE pipes and fittings

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nce upon a time HDPE pipes and fittings were merely viewed as alternative products in a pile of numerous options for infrastructure projects in Africa.Now they are becoming a necessity, their importance enhanced by contemporary demands of our times.

Those who have been observant can note an attitude shift in the choice of construction materials worldwide, with growing preference for products which address our generation’s main priorities – cost and environmental consciousness. This is prominent in the piping industry, in the application of high density polyethylene (HDPE)pipes and fittings in particular.

It is hard to ignore the growing bias towards HDPE pipes and fittings due to their green attributes and comparative cost effectiveness.

A recently concluded study by the South African Plastic Pipes Manufacturers Association (SAPPMA) Technical Committee substantiates the growing appetite for HDPE pipes and fittings as the right products to address current infrastructure development challenges. In general, the study’s findings underline the main benefits that HDPE brings as low energy costs, low environmental impact and reasonably low operation and maintenance costs over products manufactured from other materials.

While Construction Review could not be able to gather data from other parts of Africa, information from Plastics South Africa, a non-profit organisation that campaigns for the recycling of plastic products in South Africa, lends substantial credence to the fact that plastic is more recyclable. The organization has noticed an increase in the number of recycled HDPE products.

Just in 2014 for instance, a

The ability to be recycled with minimal waste significantly reduces environmental pollution, a feature not very prominent in other products

record 14,000 tonnes of HDPE and Polyvinylchloride (PVC) material was recycled at external facilities, according to the organisation. If you add 8,000 tonnes recycled in-house by manufacturers, the figure goes up to 22,000 tonnes.

It should not be surprising at all that the recycled volumes of HDPE pipes and fittings are much higher. In comparison to steel and iron the cost of recycling HDPE materials is significantly lower. The SAPPMA report says it would cost four times the energy used to recycle steel or ductile iron than HPDE or other forms of plastic.

Besides, what makes steel pipes tedious to recycle is that they are lined with materials which need to be removed before being recycled.

Removing the lining is a convoluted process on its own, which might require more energy.

Indeed, it is apparent that the world is becoming a greener place with the adoption of HDPE pipes and fittings as products of choice, considering their lower carbon footprint. However, if truth be told, HDPE is not toppling steel and ductile iron any time soon, but it is proving a better alternative.

Highly biodegradable

In fact, one gains a better appreciation about the benefits of HDPE particularly, when ease of recycling and lower energy costs incurred in the recycling process are considered, points out SAPPMA Chairperson, Jan Venter.

“The ability to be recycled with minimal waste significantly reduces environmental pollution, a feature not very prominent in other products,” he notes.

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Going HDPE makes ‘green’ sense East Africa Infrastruture & Engineering Review | November/December 2015

November/December 2015 | East Africa Infrastruture & Engineering Review

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East Africa Infrastruture & Engineering Review | November/December 2015