Local knowledge key to success of cross border projects

Infrastructure projects in Africa are seldom linear and their procurement and execution is usually complex. Darrin Green, managing director: Africa, AECOM, believes that local partnerships, embracing digitalisation and practical procurement strategies can contribute to their success.

Darrin Green, managing director: Africa, AECOM When executing a crossborder construction project, a company needs to have experience in dealing with differing approaches, standards, expectations of deliverables and cultures, Green explains. Often, there are various companies from numerous countries working on the same project. “Technical skill is only a part of executing the project. It is also important to understand the different contractual nuances of these companies and have a team that is cognisant of local environmental conditions.”

Partnerships

AECOM has long-standing relationships with a number of local businesses in different African countries. “The success of a crossborder project is through local knowledge. Localisation is key. Many cross-border projects have procurement processes that in any event have a localisation requirement. But even if this is not in place, one needs an in-depth understanding of a country’s culture, labour relations, tax compliance, contracting regulations, standards and laws,” adds Green.

“Many of our projects are multicultural. For instance, with the Tema Port Expansion Project in Ghana, we worked with Chinese, French and Ghanaian contractors, where we had to deal with different languages and approaches towards work. It is therefore important to remain flexible and find ways to meet the end goal of the project – creating a fit-for-purpose structure that can work in a local context,” he says.

The digital tools pilot site at the Polihali Western Access Roads Project in Lesotho

On-site and virtual presence

While an on-site presence is not always critical during the design phase of a project, it becomes increasingly important during the construction phase, where AECOM has to monitor quality, and implement project management and controls.

“During design, we can rely on surveys that can be done by third parties. Today, we also often use drone footage taken of the site as supplemental or even base information. All of our design involves digital modelling. These models are carried through to guide construction and then become the as-built information; they are also often used by the client during the operations and maintenance phase. There is, however, no substitute for an on-site presence during the construction phase. However, with Covid-19, there have

been lockdowns and restrictions on the cross-border movement of people. Some members of the professional team have had to quarantine. We have had to find different ways of working, such as using drones, virtual data collection and remote sensing to inspect sites,” states Green.

He adds that Covid-19 has accelerated the use of digital technology. “We have all realised that people do not have to be in the same room to have a meeting.”

Most of AECOM’s site systems and inspections are becoming paperless. An online system can give the entire professional team of a project access to inspection requests, while photos can be logged on to a digital platform where a contracts manager sitting in another country can inspect photos immediately and sign off on approvals.

AECOM has also established a virtual stakeholder participation tool. This is a digital platform created to visualise projects, meet virtually, and bring communities and stakeholders together in partnership with AECOM’s clients. A virtual event can be personalised to show consultation materials, including virtual reality and sound demonstrations, videos, maps, plans and pop-up banners. The tool allows for instant feedback so public reaction can be captured and saved for analysis and accurate reporting. There is also a chat function, so that on-hand experts can answer questions remotely as visitors look around the materials – similar to what would take place during an inperson event.

Trends

Green maintains that it is still too early to anticipate any trends regarding the type of projects in Africa out for tender. “With most budgets directed towards Covid-19 relief, we believe that a lot of prospective projects are dependent on the speed of vaccination. In the next 12 to 18 months, we anticipate government-stimulus-type public infrastructure projects that cater toward basic services like water, sanitation and transportation.”

Funding is key to any type of project – and more so in Africa, as it is not freely available. Many African governments cannot give sovereign guarantees. Donor funding is therefore critical to the funding of key projects. There is also a mixed bag of infrastructure funds and private sector investors.

“Project preparation – getting projects to a bankable feasibility stage – is important. It is a small cost when compared to the entire project life cycle, and could save a lot of money.”

Green adds that public-private partnerships (PPPs) are still possible but are suited to a very specific type of project. “About 10 years ago, PPPs were viewed as the panacea to everything. Legislation was put in place and many projects were earmarked as a possible PPP. But if there is not a viable business case or a dependable return on investment, it will have to be heavily subsidised by government.

Procurement – lessons to learn

“Donor-funded projects are usually executed within a set framework of rules and policies. This removes a lot of the risk from the project and makes it easier for the professional team to operate. Procurement is also not entirely focused around cost – professional reputation and quality are factors taken into account,” he says.

Looking at South Africa, Green believes that a balance needs to be found between governance and project implementation and execution. “It is very expensive to bid for projects in South Africa, there are a number of barriers to entry, and the procurement process is cumbersome – slowing down the speed of project delivery. Procurement in some other African countries is far more streamlined.”

He adds that a bid document in South Africa can be 500 pages long, where the scope of work would take up a page and the rest of the pages involve compliance. “While price will and should play an important part of the process, there needs to be an equal focus on quality. By focusing only on cost, there may be huge impacts on the overall expense of the project life cycle. The design of a project influences construction costs and future maintenance.

“By trying to drive down costs at the expense of quality, and choosing companies that do not have the capacity to execute the project, one will encounter poorly executed projects that are not fit for purpose with massive cost overruns,” he warns.

As a multidisciplinary infrastructure consulting firm, AECOM offers a variety of in-house services – from environmental, civil engineering and mechanical engineering to electrical, plumbing, fire, architecture, project and cost control.

KEY CROSS-BORDER PROJECTS IN AFRICA

Some recent and current projects involving AECOM include: • Tema Port Expansion Project –

Ghana • Tema Liquid Natural Gas Project –

Ghana • Nestlé Factory Expansion – Ghana • Heineken Brewery – Mozambique • Corumana Dam Project –

Mozambique • Polihali Western Access Roads (Lesotho Highlands Water Project

Phase 2) – Lesotho

AECOM is on track to complete its scope of works at the Tema Port Expansion Project in September