INTERVIEW: Thomas Cho, country director of Samsung C&T corporation in Qatar – PG 34
issue 2.4 April 2015
LEGAL
Material procurement policies you need to know before signing a contract in Qatar
Beyond smart cities Can Qatar build for the future? Q&A
District cooling vs. other HVAC solutions
PLUS:
Certifications to standardise Qatar’s concrete industry Brought to you by
24.
contents APRIL 2015
www.qatarconstructionnews.com
Cover Story QatarSteel QCN2.4.pdf
1
4/5/15
11:22 AM
With many of its projects being greenfield in nature, Qatar has the opportunity Beyond to incorporate smart cities latest smart city technologies and solutions right from the initial stage. But is the country prepared to capitalise on this opportunity? QCN’s Syed Ameen Kader finds out. INTERVIEW: THOMAS CHO, COUNTRY DIRECTOR OF SAMSUNG C&T CORPORATION IN QATAR – PG 34
issue 2.4 April 2015
LEGAL
Material procurement policies you need to know before signing a contract in Qatar
Can Qatar build for the future?
Q&A
District cooling vs. other HVAC solutions
PLUS:
Certifications to standardise Qatar’s concrete industry Brought to you by
Regulars Some of the smart city solutions that are being incorporated within Msheireb Downtown Doha include citizen contact, multi-play and communication infrastructure, community portal, city services and access to external services. (Image Msheireb Properties).
32.
34.
From the Editor - 6 Construction News - 10 Guest Column - 20 Legal - 50 Qatar Tenders - 52
41.
Technical Standardising Qatar’s concrete industry through certification
interview New construction solutions in Qatar market
Industry Insights Supply of pipes and casts still below Qatar’s market demand
Certifications of facilities and personnel have become vital to monitor sustainable steadiness of the readymix concrete industry, as Qatar Construction Specifications 2014 has extended the certification requirements in concrete section to cover personnel qualifications and certifications, writes Rabih Fakih.
Thomas Cho, country director of Samsung C&T Corporation in Qatar, talks about the country’s key projects Samsung has been involved in, advanced solutions it has introduced in the market, and the significance of worker safety in executing best construction practices here.
Atiqul Alam, senior mechanical engineer for Qatar’s infrastructure division of Keo International Consultants, talks about district cooling systems. Sameer Abu Hannun, general manager of Aamal’s Advanced Pipes and Casts Company, talks about the company’s new plant and some key aspects of the pipes and casts market. QCN | April 2015
Firefly Premium ad - VHP.pdf
1
4/14/15
2:46 PM
PREMIUM Yo u r p u b l i c a t i o n s p a r t n e r
publications director mohamed jaidah m.jaidah@firefly-me.com general manager joe marritt j.marritt@firefly-me.com
Introducing... Firefly Premium The custom print and digital media publishing division of Firefly Communications. Firefly Premium produce quality bespoke and contract publications for a top echelon of corporate companies in Qatar. Specialising in: ➤ ➤ ➤ ➤ ➤ ➤
PRINT MAGAZINES COMPANY NEWSLETTERS DIGITAL PUBLICATIONS E-NEWSLETTERS PDF READERS AND ELECTRONIC MAGAZINES COMMEMORATIVE AND COFFEE TABLE BOOKS
Let Firefly Premium find a solution for all your print or electronic publishing needs. Underpinned by professional personal customer service and world-class editorial, design and production services.
Firefly Premium FOR MORE INFORMATION CALL: +974 44340630 OR EMAIL : PREMIUM@FIREFLY-ME.COM
April 2015 | QCN
managing editor miles masterson m.masterson@theedge-me.com editor farwa zahra f.zahra@theedge-me.com deputy editor ameen kader syed a.syed@firefly-me.com associate editor aparajita mukherjee a.mukherjee@theedge-me.com international sales director julia toon j.toon@firefly-me.com | +974 66880228 head of business sales manu parmar m.parmar@firefly-me.com +974 33325038 deputy sales manager megan o’connor m.oconnor@firefly-me.com +974 5542 2741 sales manager adam kynnersley a.kynnersley@firefly-me.com +974 66079716 senior advertising manager UAE nesreen shalaby n.shalaby@urjuan-me.com + 971 50 719 9707 distribution & subscriptions azqa haroon/joseph isaac a.haroon@firefly-me.com j.issac@firefly-me.com art director sarah jabari senior graphic designer niveen saeed production coordinator ron baron printer ali bin ali printing press Doha, Qatar
firefly communications PO Box 11596, Doha , Qatar Tel: +974 44340360 / Fax: +974 44340359 www.firefly-me.com
editor’s letter It took more than four years for FIFA to move the 2022 World Cup to winter. With the verdict passed by the football governing body in March, Qatar now has more clarity on refining its preparation strategy ahead of the tournament. With December 18 being the definitive date for the 2022 World Cup final, now is the time for Qatar to streamline what currently looks like a discontiguous set of construction and infrastructure projects. Having the tournament during November and December in 2022 also reconfirms that the influx of expatriates will continue to grow, at least in the next few years. According to the Ministry of Development Planning and Statistics, Qatar’s population crossed 2.3 million in February this year. Going by conventional infrastructure and building practices will not suffice the demands emerging from Qatar’s growing population. Adopting a smart approach, therefore, is the answer.
The global smart cities technology market is expected to grow more than two to three times over the next five years in the Middle East April 2015 | QCN
According to Deloitte’s report Technology, Media & Telecommunications Predictions 2015, Middle East, the Internet penetration in the Middle East will reach around 38 percent this year, covering about 25 million homes. With a number of smart cities under construction and more planned in the near future, the report further states that the global smart cities technology market is expected to grow more than two to three times over the next five years in the region. H av i n g s m a r t c i t y s o l u t i o n s c a n significantly reduce the lost time on a daily basis. Imagine not having to spend hours in traffic jams because you have access to live data indicating traffic flows on various routes to or from work. This is just one example from the transportation sector. Now expand its scope to housing, healthcare and energy among other sectors, and the importance of smart solutions leaves no doubt in terms of their efficacy. Within Qatar, the upcoming developments incorporating smart solutions are also linked to the increasing pace of urbanisation taking place ahead of the 2022 World Cup. Picking
up pace, Lusail City Real Estate Development Company recently awarded contracts worth QAR6.2 billion for the project, potentially offsetting earlier criticisms on delays marring it. While it has been formally dubbed as Qatar’s smart city, one must not forget projects such as Msheireb Downtown Doha, which, albeit smaller, is no less sophisticated in terms of smart technology usage. In the context of smart developments, what stands as a unique opportunity for Qatar right now is also the number of planned projects. Incorporating integrated solutions in a project right from the design stage helps avert risks attached to coverage and functionality of such solutions. Seemingly aware of the importance of smart technologies for Qatar’s urban landscape in the future, the government has recently taken initiatives endorsing the smart approach to its future developments. In November last year, Qatar released its Open Data Policy, defining the limits for personal and public data; their reuse and redistribution, and participation, etcetera. From a development point of view, what this policy does is provide a platform for IT service providers of the smart projects. In our cover story, Beyond Smart Cities, we discuss Qatar’s initiatives towards smart cities. With many new projects in plan, Qatar has an added opportunity to incorporate smart features right from the scratch, because a smart city approach is seemingly the answer to its growing urbanisation for a sustainable future. But is the country ready to embrace such prospects? Find out on page 24. For more on Qatar and construction, keep reading QCN.
Farwa Zahra Editor
ALUMINIUM TECHNOLOGY AUXILIARY INDUSTRIES W.L.L. T. 4460 2334/ 4460 2835/ 4450 4131 F. 4460 2841 to 42 P.O. Box: 40625, ST. No. 31, Bldg. No.157, Gate No. 149 Salwa Industrial Area, Doha-Qatar E. alutec@qatar.net.qa
SPECIALIZED IN: ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡
Glazed curtain wall : Unitized, Structural, Spider & Conventional. 8/ FHUWL¿HG ¿UH UDWHG VWHHO JODVV GRRUV ZLQGRZV SDUWLWLRQV FXUWDLQ wall. Cladding : ACP, Stainless Steel, Bronze & Fibre cement panels. Bulletproof/blast resistant glass, tempering & lamination of jumbo glass, curved lamination & acoustic glass panels. Architectural decorative screens – Metal & Glass. Automatic sliding, hinged & revolving doors. Staircase, handrails & balustrades Protective coatings : PVDF/Kynar, powder coating, anodizing & wet coating.
"Pioneer in High Quality Building Facades"
Construction
10
section
News
Winter dates for 2022 World Cup: Will th as it continues to plan cooling technolo While Qatar’s Supreme Committee of Delivery and Legacy has announced it will continue to deploy cooling technologies in stadiums irrespective of the World Cup dates having been moved out of summer, hosting the tournament during winter works in Qatar’s favour by attracting more visitors and mitigating the risks attached to cooling systems’ failure, writes Farwa Zahra.
April 2015 | QCN
construction news
he decision affect Qatar ogies for stadiums? With the 2022 World Cup dates moved to November-December, Qatar will likely welcome more football fans now that they can avoid Doha’s high temperature during summer. Pictured here is a view of Maracana Stadium, Rio de Janeiro, Brazil, from the 2014 World Cup. (Image Corbis)
11
With years of speculation on the timing and possibility of the 2022 World Cup in Qatar, the football authority FIFA has announced the verdict in favour of Qatar, moving the tournament dates from summer to sometime in Novemeber-Decemeber, with the final taking place on December 18, 2022 – Qatar’s National Day. The news came as a result of the FIFA Executive Committee chaired by FIFA’s president Sepp Blatter in March. “Shifting the tournament to winter reduces the need for cooling technology in the stadiums,” said Pamela McDonald, solicitor for Pinsent Masons, Qatar. However, Qatar’s Supreme Committee for Delivery and Legacy has welcomed the decision, stating, “Regardless of the change in dates, we will continue to develop the cooling technology promised during the bid, ensuring our commitment to deliver a true legacy as a result of the first World Cup in the Middle East remains.” Convinced that November-December will be the ideal time for Qatar to host the World Cup, Ibrahim Jaidah, chief executive officer of Arabian Engineering Bureau said, “November-December weather is perfect for the tournament. The tournament is timed to coincide with the period of year when the whole nation of Qatar is celebrating Qatar National Day.” That said, Jaidah is convinced about the efficacy of cooling technologies planned to be deployed in stadium projects. “In terms of engineering, extensive research and case studies have been done to prove that Qatar 2022 bid-proposed cooling technology does work. This technology will not only be implemented for the 2022 World Cup but will remain afterwards as a part of our legacy and Qatar’s contribution to the technological advancements,” he added. While the cooling technologies will still be deployed in stadiums, moving the tournament to winter to some extent helps ease pressure for Qatar. “While the date change might be welcomed by fans and players, developing stadiums with innovative, energy efficient cooling technology such that they can serve as facilities in legacy was a key component of Qatar’s proposal. With the necessity for cooling technology removed, stadium designers may be considering alternative options,” said McDonald. Eventually, having a winter tournament will likely attract more fans to Qatar. QCN | April 2015
Construction
12
section
News
Industry Views
QCN approached a number of professionals to ask about some of the most common disputes in Qatar’s construction industry. Here is what they had to say:
Project delay: A common source of disputes in Qatar construction In my experience as a construction law specialist for over 25 years, and being based in Qatar for a year, one of the most common sources of disputes in the construction industry in Qatar, and indeed generally, is project delay. Delay is a major problem resulting in extra costs for the employer having to retain its project team for a longer period and face claims for delay from the supply chain. This is combined with the further problem of delayed revenues from the project asset. For the supply chain, delay means extra costs from prolongation, delayed receipt of construction costs and the potential deduction of liquidated damages. Despite the very best project teams
and supply chains being engaged and very thorough steps being taken to manage scheduling, delay is still commonly encountered. Not only is delay a generic problem but additionally the resolution of disputes concerning responsibility for and the financial impact of delay is notoriously complex, unpredictable and expensive. Evidence of the importance of delay disputes is shown by the interest shown in the mid-March Doha conference The Great Delay Debate, organised by Navigant Consulting and focused on the Delay and Disruption Protocol produced by the Society of Construction some 10 years ago. There is a need to try and reduce delayrelated disputes, and make them easier to resolve by the inclusion of more detailed
contract terms dealing with delay. These would include issues such as how to deal with concurrency, ownership of schedule float, prospective or retrospective assessment of delay and methods of delay analysis to be used.
Richard Ward is the partner and head of construction, Middle East, at Eversheds LLP.
Arbitration and local courts: Most popular methods international arbitration institution in Qatarof dispute resolution based contracts. We suspect this is due to The most common disputes in Qatar’s construction industry tend to arise from payment issues, changing requirements, adverse market conditions and onerous contract conditions. Construction contracts which often generate issues are bespoke government standard forms and heavily amended FIDIC (The International Federation of Consulting Engineers) forms. The most popular methods of dispute resolution in Qatar for construction matters are arbitration and the local courts. The former is becoming much more prominent as large government infrastructure contracts now incorporate international arbitration as their dispute resolution forum, possibly due to pressure from foreign investors but likely also due to an appreciation of the role of arbitration in complex construction disputes. The International Chamber of Commerce is by far the most common April 2015 | QCN
a familiarity with the rules and its inclusion in standard form FIDIC. Qatar International Center for Conciliation and Arbitration is a relatively new local arbitration institution, which since 2012 has adopted the United Nations Commission on International Trade Law Rules. There are moves through the Qatar Financial Centre to bring in ‘Q Construct’, which is based on the English adjudication system, though the same is only recently regaining momentum after somewhat of a dormant period.
Laura Warren is a Construction & Projects Partner in Clyde & Co’s Qatar office.
“In my opinion, the most common disputes in the construction industry are related to delay in payments.” Dr. Minas Khatchadourian, director of the Qatar International Center for Conciliation and Arbitration, and member of the Chartered Institute of Arbitrators, and the ICC Qatar Arbitration, says another common dispute in Qatar’s construction sector is related to the call of ‘performance bonds’ by the owner due to nonexecution of the contractor.
construction news
13
Awards
Key recent contracts awarded in Qatar • The Public Works Authority of Qatar (Ashghal) has just awarded Egis an engineering, procurement and construction management contract to rehabilitate Al Karaana lagoon. Ashghal aims to eradicate the lagoon and overhaul the site comprehensively in order to mitigate its environmental impact. • A joint venture (JV) between Malaysia’s WCT Holding and the local Al Ali Projects has been awarded a USD330 million (QAR1.2 billion) contract for work in Lusail City. Under this agreement, the JV will be responsible for building commercial boulevard, roads, utilities, five small size light rail transit stations, and four doublestorey underground car parks. The Enertech April15 QCN HHP.pdf 4/8/15 works are expected to be1 completed in the second quarter of 2017.
• Thales, a French company, has signed a contract with QDVC QSC – a construction company jointly owned by Qatari Diar and Vinci Construction Grands Projets – for the delivery of an integrated supervision, telecommunications, security and automatic fare collection system for the Lusail Light Rail Transit System. The new tramway will consist of four lines, covering 32 kilometres, and serving 37 stations. • Local developer Mazaya Qatar Real Estate Development Company has awarded the local HBK Contracting the estimated QAR950 million contract to build Doha Marina Mall. The mall will have three levels of shops, a hypermarket, a cinema 2:45 PM and outdoor terraces overlooking the marina. The contract involves
completing all the buildings together with two underground parking levels. The total built-up area is 235,100 square metres. • France’s Egis has been awarded design and construction supervision contracts for Um Alhoul Economic Zone, south of Doha. Over a period of five years, Egis will be auditing the masterplan designs for My City. The 34-square-kilometre economic zone adjoins the New Port Project, just south of Wakrah. • Qatar Petroleum has awarded McDermott, a company from the United States, a contract to build a new jacket, temporary deck and replacement umbilical for an offshore platform at its North Field Alpha development in the Gulf. The work will be executed in the second quarter of 2016.
QCN | April 2015
Construction
14
section
News USD
April’s big NUMBER
Al Bidda Switchgear continues operations in their new manufacturing facility
With the recent launch of Al Bidda Switchgear, part of the Al Bidda Group, manufacturing of electrical switchgear has commenced. Other services provided by the new facility include general sheet metal engineering and fabrication, powder coating services and general trading. The 14,000 square metres manufacturing plant is fully equipped with state-of-the-art technology that includes seven-stage automatic powder coating system, fully-automated CO2 laser cutter, fully-automated turret punch, automated CNC press brakes, CNC copper cutting, punching and bending systems, and testing, verification, service and repair equipment.
24
billion
3
rd
Qatar and the United Arab Emirates ranked third globally for having completed four skyscrapers more than 200 metres high in 2014, a record year with 97 skyscrapers completed worldwide, according to the data revealed by the Council on Tall Buildings and Urban Habitat.
Transport projects in the Gulf Cooperation Council 3% 7% 8%
35%
21%
Saudi Arabia Bahrain Oman Kuwait Qatar United Arab Emirates
26% Source: MEED Projects
April 2015 | QCN
According to BMI Research, Qatar is set to spend USD24 billion (QAR87 billion) on infrastructure in 2015, with the market on track to grow 10.2 percent per year over the next 10 years. Qatar is also named the fastest-growing construction and infrastructure market in the Gulf Cooperation Council. With a wide range of infrastructure projects, including new airport, port, road and rail, housing, stadiums, and petrochemical plans, Qatar’s investment projects will reach approximately USD210 billion (QAR764 billion) by 2021, according to the International Monetary Fund.
Steel products are widely used in all kinds of construction projects.
Middle East’s steel production goes up
Qatar’s steel production went down by one percent, reaching 209,000 tonnes in February. Similarly, the United Arab Emirates local steel output dropped by 4.33 percent, falling to 216,000 tonnes. To improve the situation, however, Iran’s steel production escalated by 11.8 percent to reach 1.41 million tonnes. Similarly, Saudi Arabia also showed increased output with a growth rate of 4.2 percent to make 509,000 tonnes of steel during the same period. Overall, Middle East output in February 2015 reached 2.34 million tonnes compared with 2.16 million tonnes in the same month last year, according to the World Steel Association (Worldsteel), as reported by MEED. Eventually, what this would mean for Qatar will be increased availability of regionally manufactured steel, while the prices are nowhere close to stabilising with several new contracts being awarded every month.
Construction
News Events 13 – 14 April
11 – 13 May
Arab Future Cities Summit 2015
Cityscape Qatar
Ritz-Carlton, Doha
27 – 28 April
Qatar Green Building Conference 2015 Qatar National Convention Centre
4 – 7 May
Project Qatar
Qatar National Convention Centre
6 – 7 May
Future BIM Implementation
Qatar National Convention Centre
6 – 7 May
Trans Middle East 2015 Exhibition and Conference
Trans Middle East 2015 Exhibition and Conference will feature presentations on issues related to global logistics and transportation.
Doha Exhibition Center
18 – 21 May
World Stadium Congress St Regis Doha
1 – 3 June
Cooling, Heating, Refrigeration, Ventilation and insulation International Exhibition
Qatar National Convention Centre
The 11th Trans Middle East 2015 Exhibition and Conference will take place at InterContinental Doha – The City Hotel. The twoday conference will feature 30 speakers addressing issues on global transportation and logistics. The event is aimed to interest senior executive harbour masters, harbour engineers, port engineers, maintenance supervisors and procurement decision makers, together with the region’s leading shippers, cargo owners, importers, exporters, shipping lines, freight forwarders, logistics companies, ports, terminal operating companies, railway operators, port equipment and services suppliers.
7 – 10 June
Qatar International Stadium Construction To be held at Qatar National Convention Centre, Qatar International Stadium Construction Exhibition will bring an opportunity for the international and local companies to get a chance in the business of sports stadiums by exhibiting their products and services.
Pictured is the design of Qatar Foundation Stadium, planned to feature a seating capacity of 40,000. (Image SC)
7 – 10 June
Underground Infrastructure and Deep Foundations Qatar InterContinental Doha
7 – 8 September
Future Interiors Conference Venue to be announced
April 2015 | QCN
sector name | banner heading
a qatari magazine dedicated to the country’s booming construction industry
smartphone and tablet optimised.
www.qatarconstructionnews.com
The Edge | 1
20
sectioncolumn guest
Sustainability…for those who are not convinced
The most effective way to convince those who doubt sustainability is to talk numbers. Highlighting the financial benefits of adopting a sustainable approach to construction can be one of the most compelling approaches to persuade many stakeholders in the building and construction industry, writes Dr. Neil Kirkpatrick of Faithful+Gould.
Dr. Neil Kirkpatrick, head of Sustainability and Carbon Management at Faithful+Gould, Qatar.
April 2015 | QCN
I have had the pleasure of working with many outstanding individuals who have each been champions for sustainability. In 1987, John Elkington founded a company called ‘SustainAbility’ and coined the term ‘Triple Bottom Line’. At the same time, Jonathan Porritt successfully bridged the gap between green groups and government and industry, helping to make green issues part of the wider political agenda and an agenda item for many leading companies. Truly inspirational for their leadership and vision were individuals such as Anita Roddick who founded the BodyShop, and Hans Rausing, a member of the family that owns the Tetra Pak company. Politicians too have played their part to shape this agenda with a drive and desire to deliver results – within the lifetime of their term of office. Members of royal and ruling families typically adopt a longer-term view, truly caring for the person in the street and the role they play as guardians of our future. In most cases, these leaders of sustainability think in an entirely different way. They see it. They think beyond the immediate timeframe. On one occasion, I was fortunate to be discussing car manufacturing with a senior member of a ruling family here in the Middle East. He told me he wanted to buy a chassis for a car. I asked him if he was restoring a classic car (and had visions of a rusty Ford Escort on bricks at the back of the palace!). He replied that he wanted to buy a chassis with international approvals so he could manufacture electric vehicles without the normal delays that occur when seeking to obtain all approvals. He told me he had already bought the rights to manufacture the power train and body panels, etcetera, and that he was designing a factory to assemble the cars and create opportunities for employment. He continued by telling
me that he also wanted to put in place the charging stations across the city as it expanded. Now why didn’t I think of that? What also sets these individuals apart is their absolute conviction that they are doing the right thing – and they want to make sure they are doing the right thing right. Now for the everyday reality. It is heart breaking when I hear people say they don’t believe sustainability is important and that compliance is all that is required. Interestingly, the most powerful lobby group to change the opinions of these individuals is not the government, scientists or engineers, thinktanks or entrepreneurs who have become successful, linked to the sustainability agenda. I believe it is the doubters’ children and grandchildren. When a child asks their parents what are they doing to help save or preserve the planet that they will inherit, then suddenly the penny drops. Suddenly, their moral conscience kicks in and they realise they are able to make a difference, to use their influence, however significant that might be, to make better, smarter decisions. Bridging this gap is not easy, so let me share with you one technique I have learned to help overcome barriers to change. In most cases, an effective way to win doubters over is convert discussions to money. Start talking about capital costs, operating costs and revenues and suddenly folks understand what you are talking about. Now set the challenge of being more sustainable, adding no capital costs, decreasing operating costs and increasing revenues, then folks really do begin to take an interest. At the same time, it is also important to ensure that the more sustainable option will not result in delays to projects or result in an inferior quality end product. Achieving these goals is perfectly feasible. Let me share an example from the
It is also important to ensure that the more sustainable option will not result in delays to projects or result in an inferior quality end product. construction industry. I worked on a project where the developer was debating whether it should include balconies on a new hotel. It was found that including balconies decreased cooling demand by 15 percent. This reduced the size of the heating, ventilation and air-conditioning system, thus reducing capital costs and operating costs. Based on market surveys, balconies contribute to higher rates of occupancy and merit an increase in the room rate thus increasing revenues. Finally, to construct the balconies added no additional costs or delays since this could be achieved by changing the mix of materials and making a small adjustment to the room size. All these decisions were informed by architects, mechanical, electrical and plumbing (MEP) experts, project and cost consultants, marketing professionals and the hotel operator. And the good news, energy consumption and carbon footprint were reduced, costs were decreased and revenues were increased, helping to create employment opportunities and provide benefits to the local community. What interested me most was that no one used the word sustainability once, yet everyone bought in to the creation of a more sustainable end product. I hope you agree this is a good example where finding the right language and approach resulted in a positive outcome. Let me leave you with this challenge: How can you now adopt the same approach in your projects? QCN | April 2015
24
section
April 2015 | QCN
cover story
25
BEYOND
SMART
CITIES HOW QATAR CAN LEARN AND INNOVATE TO BUILD FOR THE FUTURE
Middle East began adopting smart city practices much later than European or Western countries, but it now has that last-movers’ advantage. This makes such projects far more exciting and continuously evolving.
The smart cities are looking at almost every aspect of human lifestyle – right from the mobility, entertainment, environment and health to energy efficiency in a cityscape scenario.
With many of its projects being greenfield in nature, Qatar has the opportunity to incorporate latest smart city technologies and solutions right from the initial stage. But is the country prepared to capitalise on this opportunity? QCN’s Syed Ameen Kader finds out.
M
ajor cities are witnessing rapid urbanisation and are increasingly turning onto smart city module, to not only run their day-to-day city functioning more efficiently but also to make the living of their future habitants free of hassle. The smart city, in fact, is no more an option or concept but more of a necessity today. And Doha is no exception. There could be a debate about how it could be transformed, but not why it should be transformed into a smart city. Middle East began adopting smart city practices much later than European or Western countries, but it now has that last-movers’ advantage. How? Unlike their Western counterparts that had most of their smart city experiences coming in from the brownfield developments, major cities of this region have the opportunity to try out new technology, and implement the latest solutions from the initial stage. It is elementary that the process of integrating aged system with the latest ones in the typical brownfield scenario is always challenging, not only from the complexity, compatibility and adaptability point of view, but also from the viability and cost effectiveness perspective. In a greenfield project, tech-architects and project owners have the luxury to test new innovations, and further develop previously tested solutions, at QCN | April 2015
26
cover story
much lower cost, as opposed to the expensive retrofitting that is required in a brownfield project. This makes greenfield projects more exciting and continuously evolving. However, places such as Qatar have to deal with greenfield projects such as the Lusail City and the Msheireb Downtown Doha; and then, it has the task of integrating city’s existing networks of utilities with the latest smart city solutions. But, true to its name, smart city solutions are smart enough to integrate both. Just take the example of IBM, which has partnered with the Qatar Public Works Authority (Ashghal) to offer smart city solutions. The IT firm is providing an Enterprise Asset Management Solution (EAMS) that enables the government body to rapidly evaluate and respond to any defects or incidents reported by citizens. The system can anticipate and prevent any city problems besides effectively managing the operation and maintenance of the country’s road and drainage networks, and multiple effluent and water treatment plants. “Qatar Public Works Authority will play a key role in supporting Qatar National Vision 2030, and also the crucial FIFA 2022 World Cup related infrastructure development,” says Nadim Nakkash, branch leader, IBM Qatar, adding, “Ashghal needed to make sure that the country’s entire infrastructure – both old and new – is as state of the art and intelligent as possible, featuring a geographic information system (GIS), predictive capabilities, high levels of mobility and more.” Currently, the project is in the first phase of the solution, and the IBM team is developing standards of operation, and registering all of Ashghal’s assets. “The new IBM system will enhance the quality of services, safety and environmental sustainability for citizens in the country,” Nakkash adds.
Smart city planners are looking to address traffic congestion which is one of the major issues for growing cities such as Doha.
He points out that creating an advanced new infrastructure while maintaining an existing one is no small task, “but with the help of its intelligent new enterprise asset management system, Ashghal is making it work”. Schneider Electric’s senior vice president, Charbel Aoun, who looks after the Smart Cities division, agrees that establishing a smart city can be a daunting task because it consists of several challenges. “Particularly in the Gulf where much of the smart city opportunity is new construction, the focus on good governance and overall strategy is the key – both in the very beginning vision of what the end goal would be and additional goals during the construction phase,” he says. “It is not simply a design and engineering process. The fundamentals of commercial success must be at the beginning of the planning, you want to be able to get it right the first time and share this vision with all necessary stakeholders,” Aoun adds.
Qatar’s smart city projects The ongoing Lusail City project is a prime example of a greenfield development. It gives developers an opportunity to incorporate latest elements of smart city right from the design and planning stage. The 38 square kilometres project includes four islands and multipurpose residential, mixed-use, entertainment and commercial district. The developers are looking to build a future city of Qatar by delivering efficient and sustainable services through an April 2015 | QCN
cover story
27
Msheireb Properties’ chief executive officer, Engineer Abdulla Hassan Al Mehshadi, says, “Considering that the initial masterplan was completed seven years ago, smart city initiatives have required a constant review process to ensure that new technologies are accommodated during the lifespan of the project.”
Some of the ICT solutions that are being incorporated within Msheireb Downtown Doha include citizen contact, multiplay and communication infrastructure, community portal, city services and access to external services. (Image Msheireb Properties)
Today, cities are incorporating smart solutions such as driverless cars and city sensors that can give you instant updates about traffic condition, air quality and weather forecast, to name a few.
integrated Information and communications technology (ICT) infrastructure. Lusail City, which will also feature an 86,000-seat soccer stadium, will use a common network to integrate various services and systems, and control them from a command and control centre. Another new development that is looking beyond smart city parameters, and trying to build a sustainable and green project is Msheireb Downtown Doha (MDD). The QAR20 billion project is spread over an area of 76 acres and it will be a blend of traditional Qatari heritage and modern technology. Msheireb Properties’ chief executive officer, Engineer Abdulla Hassan Al Mehshadi says, “The technological solutions that will be provided to MDD will ensure that Msheireb is recognised for its innovative leadership in the use of these technologies to deliver a great place to live and work, while pioneering the development of a smart community and city.” Some of the ICT solutions that are being incorporated within MDD include citizen contact, multiplay and communication infrastructure, community portal, city services and access to external services. Al Mehshadi says all buildings within the development will also target an average Gold rating under the Leadership in Energy and Environmental Design (LEED) certification system developed by the United States (US) Green Building Council, while several will aim for a Platinum rating. Since smart city solutions have a major role to play in sustainable and green developments, the developer is embedding latest ICT features into the project. “The entire project features sustainable design that consumes fewer resources, generates less waste, costs less to operate, and achieves a reduced carbon footprint. This is completely in line with the smart city concept,” says Al Mehshadi. Being a greenfield project, which is currently reporting an overall workin-place assessment of 52 percent, has also worked to its advantage as this allows developers to keep improving the designs, while incorporating latest technological solutions. “Considering that the initial masterplan was completed seven years ago, smart city initiatives have required a constant review process to ensure that new technologies are accommodated during the lifespan of the Project,” Al Mehshadi says, adding that numerous project technologies have been developed both internally and in conjunction with their local authority partners to ensure that the highest standards are met. QCN | April 2015
28
cover story Beyond civic management
Bristol: The smartest city? As constant innovations and experiments taking place across the world, one place that could claim to be the smartest city in the world is Bristol. The most populous city in Southern England outside London is faced with similar challenges that come with urbanisation but the city has virtually turned itself into a platform for all the technological experiments and innovations. One of its latest experiments launched earlier this year is connecting the entire city’s 30 gigabits per second fibre broadband with Bristol University’s supercomputer. The
multimillion pound project that involves Bristol City Council, the University of Bristol and a number of commercial partners including Japanese firm NEC, will equip the city with the latest sensor and connectivity technology. Termed as ‘Bristol is Open’, the project will look at how big data can be collected from various sources and used to address some of the city’s challenges such as air pollution, traffic congestion, etcetera. The experiment also involves using this network to collect and understand data from the city’s driverless car, pictured above. (Image Bristol City Council)
Moving beyond the civic management, today, city planners and administrators are aspiring to build smart cities in the true sense – a place that is futuristic in its thinking and planning; that can sustain in a resource-constrained environment, and that can be liveable for future generations. Smart cities look at almost every aspect of human lifestyle – right from the mobility, entertainment, environment and health to energy efficiency in a cityscape scenario. “Smart cities not only have a goal of improved quality of life for citizens,” says Aoun of Schneider Electric, “but a focus on increasing the efficiency of its operations.” In improving efficiency of a city, he continues, whether through advanced mobility enhancements or energy reduction, the achieved savings can be transferred to focus areas of the city’s priorities. In addition, Aoun elaborates, a smart infrastructure can increase the long-term sustainability and resiliency of a city. “An intelligent electricity grid can reduce power losses, reduce the demand of power, and as a result increase the attractiveness and eco-friendliness of the city. The attractiveness of the city not only draws the attention of potential future citizens, but investment and businesses alike,” he explains. Today, cities are incorporating smart solutions such as driverless cars and city sensors that can give you instant updates about traffic condition, air quality and weather forecast, to name a few.
Where does Qatar stand?
“The onset of the cloud is changing everything. We are seeing the rise of platforms which can house older technology and make it compatible with new systems,” says Mohammad Hammoudi, general manager, Cisco Qatar.
April 2015 | QCN
Qatar has made some early strides in the direction of transforming Doha into a smart city. With some of its prominent projects under development, such as the Lusail City, the Pearl Qatar, the Energy City Qatar, and Msheireb Downtown Doha, incorporating elements of a smart city, the country has made the beginning. The work of integrating civic utilities with the ICT infrastructure is also on; and has already started
cover story “Qatar Public Works Authority will play a key role in supporting Qatar National Vision 2030, and also the crucial 2022 World Cup related infrastructure development,” says Nadim Nakkash, branch leader, IBM Qatar.
Unlike their Western counterparts, major cities of the Middle East have the opportunity to try out new technology, and implement the latest solutions from the initial stage.
to show some results in the form of improvement in services. On the policy front, the government has recently drafted an Open Data Policy document, which is at present up for a public consultation and feedback. The big data is very crucial for Qatar as the country is preparing to host major international events such as the 2022 World Cup. Such documented policies can be useful in developing solutions that can deal with the large numbers of visitors. The country has also put in place its National Broadband Plan (NBP) that was introduced in 2013, and is targeting 95 percent household penetration. Qatar’s telecom operators, Ooredoo and Vodafone Qatar, have already started taking benefits of the NBP by investing considerably in fibre rollout. This is expected to improve the quality and efficiency of ICT services, which is an integral part of smart city development. According to Deloitte’s latest report, Technology, Media & Telecommunications (TMT) Predictions 2015, Middle East, Qatar alongside Saudi Arabia is among the top 40 governments in the world that is investing heavily in research and development. “Qatar’s level of investment at 2.8 percent of its gross domestic product makes it comparable to advanced Western economies such as the US and Germany,” noted the report which was released in March this year. Clearly, the intent and dedication is there; but Qatar still has a long way to go. The country needs a futuristic roadmap and planning to make this happen. The Qatar National Vision 2030 looks to cover
29
a lot of that but Doha still does not have a broad smart city plan. The Deloitte report also pointed out that “Doha does not have a defined vision for its transformation into a smart city, or deliverables against which its drive to become smarter can be judged”. “If governments going forward want to rank among the smartest in the world (as, for example, Dubai has stated), they will have to develop this smart soft infrastructure, in addition to the physical smart solutions,” the report stated.
New developments in smart cities The smart city concept has been around for quite sometimes now. It is also going
Pictured here is a rendering of the Lusail City – a project formally known as Qatar’s smart city.
QCN | April 2015
30
section
Smart cities in numbers
USD1.5 trillion The expected value of global smart cities market by 2020. GCC’s smart city developments are expected to double in the next two to three years.
through rapid technological and business developments. The ICT industry is seeing a great deal of advancements A picture of Doha city which is seeing in the areas of mobile connectivity, big data management, phenomenal transformation in its cloud computing and smart devices. landscape with the The core issue to smart city development is the ongoing construction. connectivity. While cities are currently more reliant on fixed and wireless ICT networks, experts say the future cities will mostly have access to ubiquitous broadband coverage and 5G mobile technology. This will revolutionise the way smart city functions. Safder Nazir, regional vice president – Smart City & IoT at Huawei Technologies, agrees, “The ubiquitous coverage of mobile broadband will enable seamless interconnection of systems, multi-agency sharing of all relevant city data, and consistently high-quality service delivery to end users. This is what we call a smart city.” The company has developed an extensive range of mobile broadband technology including 4G (LTE, long-term evolution) across the world for nearly 40 telecom operators. “This includes the roll out of a 4G high-speed network on Mount Everest that now gives explorers access to 4G wireless coverage at 5200 metres above sea level,” says Nazir, adding that they are also currently a leading contributor to the development of 5G. Huawei is investing heavily in 5G innovation, and it has already committed to pump in USD600 million (QAR2.18 billion) in the research and innovation of 5G technology by 2018. “Without these initiatives, the future of smart cities enabled with concepts such as driverless vehicles will be much more difficult to realise,” he adds. Cisco, another technology expert in this space, says that in the future, smart cities will provide Wi-Fi and fibre optic networks that will fuel millions of sensors embedded in virtually everything. “Open architecture apps and technology solutions such as mobility, security, cloud computing, virtualisation, collaboration, and video transform interaction with the urban landscape will become mainstream and everyday phenomena,” says Mohammad Hammoudi, general manager, Cisco Qatar. The industry experts say the future of smart cities technology resides on the premise of an open and flexible configuration. So it is important to make sure that new technologies have the backward integration capabilities to take these older technologies into account. Hammoudi adds, “With that said, the onset of the cloud is changing everything. We are seeing the rise of platforms which can house older technology and make it compatible with new systems.” April 2015 | QCN
2nd
2.8%
The Middle East is the second largest region in the world for mobile government services.
The percentage of GDP Qatar invests in R&D for IT ecosystem.
+3 times
Top 40-club Qatar’s high investment in R&D for technology puts it among the top 40 governments worldwide.
95%
Expected growth rate of smart city technology market from 2012 to 2020.
64th
Qatar’s ranking in the open data barometer (ODB), 2014, that tracked 86 countries.
The target of Qatar’s National Broadband Plan for household penetration. Source: Deloitte’s Technology, Media & Telecommunications (TMT) Predictions 2015, Middle East.
32
technical
Standardising Qatar’s concrete industry
through certification Certifications of facilities and personnel have become vital to monitor and assure the sustainable steadiness of the readymix concrete industry, writes Rabih Fakih.
Qatar Construction Specifications 2014 has extended the certification requirements in the concrete section to cover personnel qualifications and certifications.
I
n the last two decades, the readymix concrete industry has witnessed major development. Technology, at the level of production as well as concrete mixture, has advanced exponentially. Nowadays, commercial concrete can be confidently produced with strength over 80 megapascals
(MPa) and pumped higher than 300 metres. Mass concreting of more than 7000 cubic metres (m3) in one day is achievable and raft foundations of more than 15,000 m3 in certain cases are poured in one round. The behaviour of fresh concrete can be retained for several hours as the travelling time for truck mixers has extended by several hours. Designers are putting more confidence in concrete while designing structures, bearing in mind the flexibility they get with the current advancements in the readymix concrete industry. As a result, certifications of facilities and personnel have become vital to monitor and assure the sustainable steadiness of the industry. Several international certification bodies have developed programmes in this regard, and Qatar has been a major player in the overall growth of the international readymix concrete industry with mega projects of high-end specifications. One of Qatar Construction Specifications’ (QCS 2014) major missions was to upgrade the last version of 2010 considering several parameters such as technology development, common professional practices and general practicalities. Therefore, QCS 2014 has extended the certification requirements in the concrete sector to cover personnel qualifications and certifications. Globally, there are very few precedents of such actions coming from national standard committees. Some of these certifications are optional, with the view to be made compulsory with time. According to the new system, personnel that are directly involved in concreting on site should be qualified and ultimately certified to cope with the high standards of Qatari projects. This move will help elevate the level of concrete practitioners; thus, delivering projects of higher quality on time, and with the least discrepancies. This is a progressive and indeed courageous step to be added on Qatar’s vision towards excellence. The readymix industry in Qatar has practised several international certifications of facilities such as the National Readymix Concrete Association (NRMCA). NRMCA was
founded in 1930 in the United States to serve the readymix concrete industry in North America, later becoming one of the international leading bodies in providing training and certification programmes for this industry. Several Qatari readymix companies have certified their facilities according to NRMCA certifications. These companies have excelled to be part of the first companies around the world to acquire such certifications and contribute positively in developing and improving those certifications. NRMCA has developed several certifications. NRMCA Sustainable Concrete Plant and Green Star certifications are similar to LEEDS and ISO 14000, respectively. These certifications are solely dedicated to the readymix concrete companies with detailed technical requirements considered. Qatari companies were among the first few in the world to be certified accordingly. They have committed to the sustainability and green building mission adopted by the Qatar National Vision 2030. Consequently, concrete is currently produced in Qatar with lower carbon footprints as environmental requirements are strongly respected. Qatar’s readymix industry is proving to be listed constructively on the world map of construction industry. The latest certifications along with the most advanced construction practices have been adopted here; thus, proactively contributing in the innovation and advancement of construction worldwide.
Rabih Fakih is the managing director of Grey Matters, providing consulting in concrete solutions.
34
interview
New construction
solutions in Qatar An interview with Thomas Cho, country director of Samsung C&T Corporation in Qatar In an interview with QCN’s Farwa Zahra, Thomas Cho, country director of Samsung C&T Corporation in Qatar, talks about the country’s key projects Samsung has been involved in, advanced solutions it has introduced in the market, and the significance of worker safety in executing best construction practices here.
P “Samsung C&T is utilising numerous construction technologies such as rebar cage rollup jig technique to build the deepest underpass in Qatar for the Lusail road project.”
April 2015 | QCN
art of the Samsung Group, Samsung C&T Corporation (Construction and Trading) has been involved in leading construction projects across the world. For a company such as Samsung C&T, providing construction and engineering services in buildings, civil infrastructure, plants, housing and development internationally, it only makes sense to mark its presence in parts of the Gulf Cooperation Council, such as Qatar, currently going through an infrastructure overhaul in terms of road and rail networks, and of course in terms of developing its sports infrastructure. QCN spoke to Thomas Cho, country director of Samsung C&T in Qatar, to know more about its service and project portfolio here. Joining Samsung C&T in 1988, Cho has mainly worked in business development departments and followed up on many large-scale projects including
expressways, metros, hospitals and highrise buildings in Singapore, Abu Dhabi and Mumbai. He came to Qatar in April 2011 and has been here since, as the country director of the company.
Projects Within Qatar, Samsung C&T is lead partner contractor for the construction of Msheireb and Education City stations for Doha Metro. The company is also working on two projects in the Lusail City. The first is a road project which includes 11 kilometres (km) of road pavement, 1.5km of underpasses, 2.4km of utility tunnels and 176km of underground utilities and mechanical, electrical and plumbing works. “The second project is construction of seven bridges, which includes two suspension bridges – the first of its kind in Qatar,” says Cho. Execution of these projects comes from the strength of Samsung C&T employing 100 Koreans, 300 locals and 800 directly employed workers in Qatar.
Thomas Cho is the country director of Samsung C&T Corporation in Qatar. He joined Samsung C&T in 1988. Cho has followed up on many large-scale projects in Singapore, Abu Dhabi and Mumbai.
interview
35
QCN | April 2015
36
section interview
Considering the high temperatures in Qatar, Samsung C&T’s country director says the company manages the works schedule with the safety and health of the workers as a primary concern.
April 2015 | QCN
Some of the key contractors working with Samsung C&T in Qatar include Swiss Boring for bored pile works in Doha Metro and Lusail; Al Jaber & Makhlouf for paving; Al Maram for concrete structure work, and National Contracting Company for cable work in Lusail. “We are maintaining good relationship with the contractors and will continue to search for sound partners to successfully implement the projects in Qatar,” says Cho. Speaking about some of the upcoming projects, he mentions Lusail’s road project due to be completed in June of 2015, while the completion date for the bridge project will be determined after discussing variation orders with the client. With many international companies operating here, which special areas make Samsung most relevant to Qatar’s construction market? “Qatar is investing significantly in developing the infrastructure and transportation system ahead of the World Cup in 2022. Samsung is the most suitable contractor to successfully deliver these projects with high quality assurance,” says Cho. The range of projects, however, do not cover Samsung C&T’s full portfolio. Samsung C&T is well known for providing total solutions for skyscraper projects, for
instance the ones provided in Burj Khalifa in Dubai. Similarly it is also recognised for such solutions in power plants, railway, metro, and healthcare. Hoping to execute lessons from its projects in the past, Cho says the company is seeking more opportunities to further contribute to the development of Qatar.
Solutions Ahead of the 2022 World Cup, the number of construction activities is bound to pick up pace, at least for the next couple of years. Governed by the basic principles of supply and demand, the prices of materials are escalating the overall costs of construction in Qatar. Add to this the dearth of locally-manufactured products and the task to procure the right quantity and quality of materials at the right time appears even more daunting. Anticipating material demand in the future is not enough. With high rentals for storage space in Qatar, contractors can only stock up to a certain limit. What other strategies then can companies consider to mitigate the impact of materials shortage and price escalation? For Samsung C&T, International Procurement Organisation (IPO) is the answer. “To prevent the shortage of materials during construction,
interview section
“We are maintaining good relationship with the contractors and will continue to search for sound partners to successfully implement the projects in Qatar,” says Thomas Cho.
Samsung C&T’s safety training centres in Lusail and Matar show the company’s initiative in bringing safety awareness to construction sites, says Thomas Cho, country director of Samsung C&T in Qatar.
we introduced a system called IPO through which we can procure and deliver materials and equipment instantly and ahead of schedule,” says Cho. Part of the global sourcing system, IPOs categorically work to identify cost-effective manufacturers dealing in the relevant material type. By taking up the responsibility of filtering most favourable suppliers, what IPOs do is take the pressure off contractors to be involved in every stage of procurement. Asked about the level of technological advancement in Qatar’s construction market compared to regional and international markets, Cho says, “With booming construction sector, Qatar is becoming the epicentre of global construction firms and their latest construction technologies.” Explaining Samsung C&T’s role in this evolution of the market, he mentions rebar cage rollup jig technique utilised to build the deepest underpass in Qatar for the Lusail road project. Providing technical solutions behind Qatar’s first suspension bridges, Cho says, “For the construction of the first suspension bridges in Qatar, the circular pylons were prefabricated and divided into seven sections, and assembled on site without any adjustment as numerous factors such as wind, and temperature could cause deformation of the pylon during assembly.” These suspension bridges, he says, feature seven locked coil cable strands with a diameter of 140 millimetres each, held together by 24 cable clamps, to hold the suspension bridge securely.
37 37
Among Samsung C&T’s project sites in Qatar is Lusail City currently under construction. (Image Paul Trafford/Flickr)
“Qatar is becoming the epicentre of global construction firms and their latest construction technologies.”
QCN | April 2015
38
section interview
“When recruiting, we place high emphasis on skilled workmanship and safety awareness.”
For the concrete bridges in Lusail, Cho says, precast X-struts were installed on both sides of the girder and selfcompacting concrete were used in pier structure, while full length longitudinal strands were inserted and stressed to provide longitudinal post tensioning to the girder.
Human resources
7000 The number of workers trained at Samsung C&T’s safety centre in Lusail.
April 2015 | QCN
“Qatar’s infrastructure is developing at a tremendous speed. Most of the projects are state of the art and very attractive and I am looking forward to the completion of the projects,” says Cho. With more than 1000 employees based in Qatar, Samsung C&T looks forward to expanding its workforce in anticipation of bagging new projects and for timely completion of those in hand. When recruiting new employees, what elements does the company look into? “When recruiting, we place high emphasis on skilled workmanship and safety awareness,” says Cho, adding that, “We think there is reasonably enough manpower in Qatar currently and we have a vast human resources network to hire the required workforce to implement our projects.” The fact that safety awareness is considered as a core strength of a candidate to enter Samsung C&T tells a lot about the company’s preference for a safe working environment. Following the same philosophy, Samsung C&T has safety centres in Qatar to train workers in necessary safety practices. “The Samsung C&T Safety Training Centre shows our company’s initiative in bringing safety awareness to construction sites.” He says a total of 7000 workers were trained in the company’s first centre in Lusail. More workers were trained at the safety centre in Matar, with the total number of trainees expected to exceed 10,000. “The centre is a role model for safety awareness and attracts much attention from numerous organisations and firms as they request tours to benchmark the centre,” says Cho. What makes safety a key concern in Qatar construction is linked to its workforce dynamics. As labourers come from a variety of countries, their concept of safety on site differs from international standards. Raising awareness about
safety practices is crucial to reduce accidents on site. Voicing his concern, Cho tells QCN, “The workforce in Qatar comprises many different nationals with many different backgrounds. Thus to unify and set the health, safety and environment (HSE) standards for all the workers, Samsung C&T continuously provides behavioural safety training and health improvement training. We not only focus our training to the
Construction continues unabated in Doha as Qatar prepares its infrastructure for the 2022 World Cup.
interview section
[junior] workforce, but to the supervisors to share the awareness throughout all levels.” While training workers and supervisors to work safely is a controllable factor, how does Samsung C&T deal with unavoidable weather conditions in Qatar? With key projects progressing at a fast pace ahead of the 2022 World Cup and Qatar National Vision 2030, can lead contractors prevent heat strokes and other health threats caused by Qatar’s extreme climatic conditions? “It is very difficult to work during the summer time in Qatar as the temperature exceeds 50 degrees Celsius, but we manage our schedule effectively with safety and health of the workers as our primary concern,” clarifies Cho.
39
Samsung C&T has two safety centres in Qatar, training workers in Lusail and Matar. (Image Samsung C&T)
QCN | April 2015
Industry Insights 42
HVAC : Stakeholders’ engagement from the beginning is crucial to the success of district cooling projects
In an exclusive interview with QCN, Atiqul Alam, senior mechanical engineer for Qatar’s infrastructure division of Keo International Consultants, talks about district cooling systems – their design considerations, challenges, efficacy and scope in Qatar.
46
Comparing district cooling with other heating, cooling and air-conditioning (HVAC) techniques, he says district cooling is better than standalone HVAC solutions, as it is more energy efficient, generates less CO2 emissions and is reliable in operation.
SUPPLIES : Local production of pipes and casts has
picked up, but supply is still way below the market demand in Qatar
In the last quarter of 2014, Aamal’s subsidiary, Advanced Pipes and Casts Company (APC) commenced commercial production at its new facility in Qatar with an aim to supply concrete pipe products within the
country and abroad. In an interview with QCN, Sameer Abu Hannun, general manager, APC, talks about the new plant and some key aspects of Qatar’s pipes and casts market.
Locally-manufactured pipes and casts can control project costs by lowering transportation expense and reducing the rate of project delays caused due to the non-availability of such products, says APC’s Sameer Abu Hannun.
QCN | April 2015
42
industry insights
Stakeholders’ engagement from the beginning is crucial to the success of district cooling projects With the implementation of district cooling plants growing in Qatar, a key challenge for providers of such systems is to stay competitive in the market, says Atiqul Alam, senior mechanical engineer at Keo International Consultants.
In an interview with QCN, Atiqul Alam, senior mechanical engineer for Qatar’s infrastructure division of Keo International Consultants, talks about district cooling systems – their design considerations, challenges, efficacy and scope in Qatar. What is district cooling? Where does Qatar stand in terms of its progress on district cooling? In a District Cooling System (DCS) chilled water is produced and supplied from a central chiller plant, distributed through an underground pipe network to buildings for the utilisation in space air-conditioning purposes. The cooling and heat rejection take place in the central chiller plant. A DCS contains three major elements: cooling source, distribution system and delivery substations. The cooling source is generally equipped with electric chillers, which generate chilled water matching a cooling demand. Chilled water is distributed by pumps. The interface between the central chiller plant and the building air conditioning system is managed by the energy transfer stations (ETS). District cooling in Qatar is growing every year, and one of the biggest district cooling systems in the world is located in The Pearl-Qatar. The entire Lusail development is based upon the district cooling principle and the Msheireb Downtown project is another great example of the growing district cooling market in Doha.
What are some key considerations when designing district cooling solutions? There are many key considerations in design; the first and foremost is design coordination. If we take traditional methods of design coordination, we may not succeed. District cooling central plants have to be coordinated on an integrated computer-aided design (CAD) platform such as Revit. Such a CAD platform would provide us the opportunity to produce clash-free, fully-coordinated design. You could also implement Building Information Modeling (BIM) within this. The second important issue to consider is energy efficiency and sustainability, namely how do we integrate them into district cooling plants and achieve the green energy targets. Thermal energy storage is also an important decision. We also need to establish central plant capacity and future demand increase. For any treated sewage effluent (TSE) April 2015 | QCN
industry insights
“Selection of vendors and getting material approved while developing design is also important. Phased construction and material storage need to be arranged at an early stage.”
based plant we would require Reverse Osmosis polishing plant design decisions. The reticulation system design is also important for infrastructure. We may have to consider blow-down design, whether we connect to the sewage system or inject into a deep well. These issues are site sensitive and prior planning is required for success.
What are some of the challenges particular to district cooling in Qatar?
43
incorporating district cooling? Some important lessons learned from Gulf Cooperation Council’s projects include: • Stakeholders’ engagement from the outset is crucial to the success of district cooling projects. • A staggered and dynamic project programme is required. • Multidisciplinary coordination on Revit type platforms is a must.
There are a few challenges; meeting Global Sustainability Assessment System’s target coefficient of performance in a district cooling plant is a hurdle. Secondly, we need to design around TSE-based cooling towers. Related to the cooling tower, we need to solve issues with discharge of blowdown water. Putting everything together and remaining competitive in the market is another challenge for district cooling projects in Qatar.
If at all, how is district cooling better than other heating, ventilation and airconditioning (HVAC) solutions?
What are some of the key elements to consider to ensure the success of a district cooling system in Qatar?
What is the scope of sustainable HVAC in Qatar?
Key stakeholder engagement is essential from the beginning. TSE/ electricity authority, owner, operations and maintenance teams, and specialist suppliers, all need to be involved at an early stage. Coordination among different design divisions and specialist subconsultants is required, and co-coordinators have to possess multidisciplinary skills. Coordination in Revit 3D model is essential. To facilitate coordination, a dynamic and staggered programme is required. This would allow every discipline to check and issue correct design drawings. Selection of vendors and getting material approved while developing design is also important. Phased construction and material storage needs to be arranged at an early stage. Utility planning and major infrastructure upgrade for electricity and TSE supply may have major impact upon design and construction programmes. Interfacing with existing utilities, and where required designing utility tunnels.Corridors for services distribution is also very important.
What are some of the lessons to be learnt from recent projects in the Gulf
District cooling is better than standalone HVAC solutions. It is more energy efficient, generates less carbon dioxide (CO2) emissions and is operationally reliable. District cooling can be a good business model in the energy industry and can help contribute to the macro economy by creating employment opportunities for young people.
Qatar could do many things towards sustainability in HVAC. The first approach we could take is to reduce the building U-value to cut down cooling loads in new projects. Currently, an average building’s U-value varies between 0.7 to 1.2 watts per metres squared kelvin (W/m2K). If we could set up a minimum U-value target, for instance, 0.25 W/m2K, we could get three to five times more thermal efficiency. Buildings consume approximately 35 percent of overall energy demand in Qatar. By having highly efficient buildings, we could have significant reductions in CO2 emissions. Secondly, we can design and install seawater-based district cooling plants. Such projects can be integrated with a power generation plant and realise tri-generation principle where we can produce power, utilise byproduct heat and produce chilled water for district cooling. In buildings, we could implement gas-powered fuel cells as a backup energy source. We could also set up minimum energy efficiency targets for HVAC equipment to further implement green HVAC solutions. If we take these initiatives and encourage new projects through green credentials, we could be a forerunner in sustainability, regionally and globally. QCN | April 2015
QCN is international
International Sales Representatives Asia Sonney Media Networks Tel: +852-2783-1603 / +8522151-2351 E-mail : hemant@sonneymedia.com
QCN currently has a growing network of international media sales representatives across numerous jurisdictions. To reach Qatar’s thriving construction market from any location, please contact your closest representative to inquire about advertising in QCN, Qatar’s Construction Magazine.
For sales enquiries please contact: International Sales Director:
Julia Toon
Tel: +974 66880228 E-mail: j.toon@firefly-me.com United Arab Emirates Senior Advertising Manager UAE :
Nesreen Shalaby
Tel: +971 50 719 9707 E-mail: n.shalaby@urjuan-me.com Qatar Head of Business Sales:
Manu Parmar
Tel: +974 33325038 E-mail: m.parmar@firefly-me.com
India Media Star Pvt Ltd Tel: +91 22 42202103 E-mail: ravi@mediastar.co.in Australia & New Zealand The Media Machine Tel: +61 89 447 2734 E-mail: okeeffekev@bigpond.com Germany IMV Internationale Medien Vermarktung GmbH Tel: +49 8151 550 8959 E-mail: w.jaeger@imv-media.com Turkey Media Ltd Tel: +90 212 275 84 33 E-mail: tanbilge@medialtd.com.tr United Kingdom & Ireland Smyth International Media Representatives Tel: +44 (0) 208 446 6400 E-mail : jo@smyth-international.com
France Mediactiv Tel : +331 5688 2080 E-mail : info@mediactiv.com Switzerland Mediactiv Tel : +41 22 779 1289 E-mail : info@mediactiv.com Italy Mediactiv Tel : +39 02 58 322149 E-mail : info@mediactiv.com Benelux Mediactiv Tel : +32 2 335 1063 E-mail : info@mediactiv.com Seoul, Korea YJP & Valued Media Co., Ltd Tel: +82-2-3789-6888 E-mail : hi@YJPvm.kr USA WorldMedia Tel: +1-212-244-5610 E-mail: melissaworrell@worldmediaonline.com
46
industry insights
Local production of pipes and casts has picked up, but supply is still way below the market demand In the last quarter of 2014, Aamal’s subsidiary Advanced Pipes and Casts Company (APC) commenced commercial production at its new facility in Qatar with an aim to supply concrete pipe products within the country and abroad. In an interview with QCN, Sameer Abu Hannun, general manager, APC, talks about the new plant in the context of Qatar’s pipes and casts market.
“Locally-manufactured pipes and casts can help attain efficient project cost control by reducing transportation costs.”
Sameer Abu Hannun, general manager, APC, has over 25 years working in the pipe industry. He joined APC in July 2014.
April 2015 | QCN
Please tell us about Advanced Pipes and Casts (APC) Company? APC has been established as a 50:50 joint venture between Aamal and a Saudi Arabian subsidiary of the Lokma Group. APC manufactures reinforced concrete pipes using the most up-todate technologies and is considered the largest in Qatar and the region with a built-up area of 85,000 square metres and an annual production capacity of 450,000 tonnes.
The company has adhered to the highest environmental and safety practice standards. It is committed to the implementation and maintenance of a strict health, safety and environment (HSE) policy and has obtained the ISO 14001 and 18001 certificates, as well as other highly reputable international certifications related to quality management systems, such as ISO 9001 and KIT mark.
industry insights
“Having pipes and casts available in Qatar will contribute towards timely project execution by ensuring faster deliveries on site.”
The Advanced Pipes and Casts Company’s plant recently launched in Qatar has an annual production capacity of 450,000 tonnes. (Image APC)
How would you differentiate precast from traditional cast methods? Precast provides much better control over the manufacturing process which provides higher quality products for long-term performance as well as higher output.
What types of pipes are being manufactured at the new plant by APC in Qatar? APC produces a range of infrastructure and construction products including jacking pipes, reinforced concrete pipes, circular precast concrete manholes and precast concrete box culverts – a new product that will be manufactured in Qatar for the first time. All products are manufactured using a dry cast process utilising fully-automated machinery. That will ensure our products are of a consistently superior quality. Our pipes find their application in sanitary and sewerage pipelines, portable water supply applications and storm drainage.
Are the products being exported or planned to be exported in the near future? We have started to supply our products for use in a number of local infrastructure projects in Qatar. For the time being, we are catering to local demand but the plant is ready to cater to the export market as well.
47
Roughly what percentage of Qatar’s construction market depends on imported casts and pipes? With such a large number of ongoing projects dedicated to upgrading the infrastructure in Qatar and the region, we expect to see significantly continuing growth in demand for the specialised concrete and other pipes. All infrastructure projects depend heavily on pipes. They are an essential part of virtually all the major construction and civil engineering projects that are underway and planned in Qatar and across the region. While in previous years, the Qatari market was 100 percent dependent on imported pipes and casts, more recently some local capacity is being utilised but it is still way below the market demand.
To what extent can developers and contractors cut down the costs of materials if pipes and casts are locally manufactured? Local production is a huge advantage for our customers and offers two key benefits for developers and contractors. Firstly, locally-manufactured pipes and casts can help attain efficient project cost control by reducing transportation costs, a key factor in the cost of materials. Secondly, having pipes and casts available in Qatar will
QCN | April 2015
48
industry insights
“There are many opportunities in Qatar, particularly for box culvert products, tunnel segments and other specifically casted products.”
Locally-manufactured pipes and casts can help attain efficient project cost control by lowering transportation costs. Similarly they can also reduce the rate of project delays caused due to the nonavailability of such products, says Sameer Abu Hannun, general manager, Advanced Pipes and Casts Industries, Advanced Pipes and Casts Company. (Image APC)
April 2015 | QCN
contribute towards timely project execution by ensuring faster deliveries on site. For the same reason, the main trend in Qatar when it comes to ordering precast pipes is the requirement of timely delivery, which APC is very well positioned to provide.
In Qatar, what are the key requirements of drainage and sewerage affairs? Is there any monitoring authority to verify compliance? In addition to adhering to international standards, the Public Works Authority (Ashghal) has its own strict specifications and undertakes complete and comprehensive technical evaluation and inspection to verify and ensure material compliance. In general, Ashghal looks for long-term performance in line with international best practices.
What are some of the challenges and opportunities of operating in Qatar’s market for pipes and casts? The main challenge is that the pipes’ outer dimensions are not unified, so different moulds for the same pipe are required. We did a study of the market requirements and
have equipped ourselves to satisfy them all. There are many opportunities in Qatar, particularly for box culvert products, tunnel segments and other specifically casted products, which APC is well equipped to supply.
How do APC products compete with regional and imported products available in Qatar? Competition in Qatar is undoubtedly high, but APC is well positioned, thanks to our superior quality products, technology, commitment and aftersales services. Our high-quality products are produced using world-class automated machinery at very high output. This gives us the competitive edge over imported products.
What are the considerations when designing pipes specifically for Qatar’s environment? Some points to consider in pipes’ designs in Qatar include strict compliance with agreed standards; project specifications relating to the quality of raw materials used and quality of finished products; and the implementation of relevant international design references to ensure durable, long-term products.
50
legal
Material procurement in Qatar Contractors entering into contracts with government bodies must be aware of policies mandating the use of locally-produced materials for such projects, writes Pamela McDonald. Qatar has a government policy that materials used for the purpose of statefunded construction projects should be locally sourced. The policy promotes sustainable buildings and prevents products being procured more cheaply abroad and transported to Qatar at a cost to the environment. It is, of course, not always possible to achieve 100 percent locally-sourced materials. Contractors entering into contracts with government bodies should be aware of the restrictions and potential penalties, and closely assess the availability of local materials before pricing their works. Law No. 6 of 1987 (the Unified Rules for Giving Priority in Government Procurement to National Products and Products of National Origin in the GCC States) was enacted to ensure, where possible, Qatari and Gulf products are used. Products include those in their raw form or at any processing or manufacturing stage. The law applies to all contracts with government bodies, which includes public corporations, authorities and companies in which the government contributes not less than 51 percent of the capital. The procurement sources recognised by the 1987 law are: “National Products”, which are products produced in Qatar, and “Products of National Origin”, that include products which are at least 40 percent produced
in a Gulf Cooperation Council (GCC) country. The company selling the product must be at least 51 percent owned by a GCC registered company. If the cost of a national product is cheaper by 10 percent or less than the equivalent product abroad, preference must be given to the national product. In other words, contractors may only purchase materials from abroad if there is a price benefit of over 10 percent. Similarly, if the cost of a product of national origin (GCC) is cheaper by five percent or less than the equivalent product abroad, preference must be given to the product of national origin.
Contractor obligations Article 4 of the 1987 law requires the government entity (the Employer) to include a provision in its contract which commits contractors to purchase national products or products of national origin. A mandatory fine of 20 percent of the price paid for the foreign product will be imposed on the contractor if it fails to comply.
Designer obligations Article 5 of the 1987 law also requires the government to include a provision in contracts with design consultants to ensure their specifications require procurement of national products or products of national origin. The designer is required to ensure the specification aligns with Qatar and the GCC countries’ material availability. While there is no mandatory monetary penalty, breach of the law is a breach of an essential term of the contract. Such a breach could expose the party in breach to termination of the contract with consequential claims for loss.
If the cost of a national product is cheaper by 10 percent or less than the equivalent product abroad, then preference must be given to the Sourcing foreign products are sometimes required to national product. Contractors procure materials from subcontractors or suppliers based abroad – in Japan April 2015 | QCN
or the United States, for example. Unless the employer has been granted an exemption from the requirements of the 1987 law, or the contract contains provisions to the effect that the foreign suppliers are only to be given preference if the price of their materials is below the benchmark stated in the 1987 law, the employer is likely to have contravened Article 4 of the law.
Single-source scheme The Qatar government has recently announced it will regulate commodities, starting with concrete and steel, by procuring large volumes of those materials from suppliers worldwide and making them available for contractors to purchase, with the aim of controlling the rising cost of those materials. This intervention will also help control the cost of construction. However, on a strict interpretation of the 1987 law, products procured in this way do not fall within the definition of national product or product of national origin.
Early procurement sources Some due diligence at the outset of a project, both as to the materials, which the designer will specify and the availability of those materials in Qatar is necessary to ensure compliance with the 1987 law. Whether the penalties can be levied in practice will require the employer to have given effect to them by a provision in the contract.
Pamela McDonald is a solicitor at Pinsent Masons LLP, Qatar.
www.QatarTenders.com
www.QatarTenders.com Tender Name
Description
Client
Roads, Infrastructure & Landscaping Works
Design and build of roads, infrastructure and landscaping of Al Wakrah Logistic City.
Manateq (Qatar)
2747
5/19/15
Engineering Services
Frame agreement for engineering services
Qatar Aluminium Company Ltd. (Qatalum)
275
4/30/15
Engineering Consultancy Services
Engineering consultancy services for Qatar Power Transmission System expansion
Qatar General Electricity & Water Corporation (Kahramaa)
1648
4/30/15
Fuel Station Construction Works
Construction of fuel station
Qatar Fuel Company (QFC)
275
4/27/15
Army Communication Tower and Compound Construction
Engineering, procurement, installation and construction (EPIC) of New Army Communication Tower and Compound
Qatar Petroleum (QP)
137
4/26/15
Landscaping, Irrigation System & Indoor Plants Maintenance
Annual maintenance contract for landscaping, irrigation system and indoor plants
Katara Hospitality (Qatar)
220
4/23/15
Maintenance Services
Maintenance of port ship-to-cranes and equipment
Qatar Primary Materials Company (QPMC)
–
4/22/15
Consultancy Services
Post-contract consultancy services for construction of service building
Public Works Authority (Ashghal)
206
4/21/15
Various Pipe Support & Platforms EPIC
EPIC of various pipe support and platforms at various plants
Qatar Petroleum (QP)
55
4/20/15
Construction Works
Construction of car and heavy vehicle wash and maintenance hanger
Ministry of Defence
549
4/20/15
Chemicals
Supply of different chemicals
Qatar Gas Operating Company Ltd.
137
4/20/15
General Directorate of Borders Passports Execution of new building for a ministry and Expatriates Affairs Building Construction
Ministry of Interior (Qatar)
824
4/20/15
Road Upgrade
EPIC of road upgrade works
Qatar Petroleum (QP)
137
4/19/15
Access Control Systems
Supply, installation, testing and commissioning of Primary Health Care access control systems Corporation
55
2/16/2015
April 2015 | QCN
FEES (USD)
Closing (m/d/y)
INTERVIEW: Thomas Cho, country director of Samsung C&T corporation in Qatar – PG 34
issue 2.4 April 2015
LEGAL
Material procurement policies you need to know before signing a contract in Qatar
Beyond smart cities Can Qatar build for the future? Q&A
District cooling vs. other HVAC solutions
PLUS:
Certifications to standardise Qatar’s concrete industry Brought to you by