Infrastructure ME December 2015 by Infrastructure ME

ISSUE 021 | DECEMBER 2015 thalesgroup.com/smartcity ISSUE 021 | DECEMBER 2015

Solutions for the smart city Wherever safety and security matter, we deliver

CITIES

ATTRACTING INWARD INVESTMENT Strong, well-run, infrastructure is vital to maintaining city attractiveness and competitiveness

HOSTING LARGE EVENTS Enhance a city’s cultural reputation with co-ordinated multiple agency and authority support

EVENT REPORT

Master Greenprint An update on Masdar City

The WOW factor Cool technologies for infrastructure delivery

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MASTERING SUSTAINABLE GROWTH Deliver greater transport capacity while increasing efﬁciency and reducing pollution

DRIVING INCREASING MOBILITY Integrate passenger information systems enabling passengers to plan, book and travel on public transport with a single ticket SECURING CITIES Enhance citizen quality of life with co-ordinated incident prevention, detection and response

Millions of critical decisions are made every day to protect the people and infrastructure of major cities. Through more services, greater efﬁciency and a focus on sustainable development, the vision of governments and public authorities is to turn these cities into smart cities. Thales is at the heart of this. By providing greater integration, interconnectivity, and leveraging existing infrastructure, our powerful management systems give decision makers the information and control they need to make more effective responses in critical environments. Every moment of every day, wherever safety and security are critical, Thales delivers.

UNDERGROUND INNOVATOR BASF’s Nick Chittenden says the company puts the needs of engineers, owners and contractors at the centre of its tunnelling solutions

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INTRODUCTION

Prepare to be disrupted GROUP GROUP CHAIRMAN AND FOUNDER DOMINIC DE SOUSA GROUP CEO NADEEM HOOD GROUP COO GINA O’HARA

EDITORIAL EDITOR ANOOP K MENON anoop.menon@cpimediagroup.com +971 4 375 6830

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alking into the exhibition floor of the 2015 IoT World Forum in Dubai, one couldn’t help but notice the names of the exhibitors above their respective booths. Instead of obscure start-ups or the well-known tech giants, the names belonged to ‘old economy’ companies that one wouldn’t immediately associate with something as cutting-edge as Internet of Things (IoT). And most of those names are also major players in the critical infrastructure sector. It is clear that traditional industries are taking advantage of the connectivity revolution heralded by IoT to reinvent themselves. GE CEO and Chairman Jeffrey Immelt went on record few months ago at the Gartner Symposium about creating a $15bn software company by leveraging his company’s 100-year legacy to bridge the physical and digital world. Traditional technology players like GE, Schneider Electric, Siemens and Rockwell Automation are transforming themselves and their customers by the tapping the potential of IoT. In the case of the companies themselves, software offerings are becoming an integral part of their overall solutions and business portfolio. On the other hand, customers are learning to use the power of sensors and analytics to optimise operations and reduce costs. The next generation of Internet, which is all about connected devices, is expected to transform companies, cities and even countries. In his address to the forum, John Chambers, Executive Chairman, Cisco pointed out that many businesses and governments have recognised that IoT-driven transformation will occur at tremendous speed. The economic benefit coming out of IoT will be the equivalent of the US economy today - $19tn in terms of profits and savings. “In the digital world, disruption will occur at a remarkably fast pace,” said Chambers. “Probably 40% of the global major companies today will not exist in a meaningful way in 10 years.” So one shouldn’t be surprised if a retail giant like Walmart starts to call itself as a technology company specialising in retail. A classic transformation example from the past would be IBM – when I joined the media industry in the early 1990s, IBM was known for its hardware play; today, you will be hard-pressed to find hardware with the IBM logo on it (aficionados of the IBM ThinkPad of yore are excused!). Today, IBM is known more for its software and services. I am not sure infrastructure companies will stop issuing hard hats for their engineers; but what you can bet on is that a lot of the field activity will be controlled and managed remotely; construction as an activity is also poised to get transformed as technologies like additive manufacturing start scaling up. So prepare to be disrupted.

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While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

December 2015

INFRASTRUCTURE MIDDLE EAST 01

CONTENTS

021 December 2015 COVER STORY

REGULARS

Underground innovator

05 Regional update

BASF puts the needs of engineers, owners and contractors at the centre of its tunnelling solutions

09 Sector update 12 Global update

30 24

18 In Focus TOP 10 FEATURE

Bahrain Infrastructure Projects

21 Infrastructure tenders

Bahrain plans to invest more than $20bn in large scale industrial and infrastructure projects in the next few years as part of its economic diversification strategy

43 Infra People 47 Events 48 Infrastructure Milestones This month: Middle East’s ﬁrst hybrid desalination plant

INDUSTRY SECTORS

UTILITIES

ANALYSIS

SOLUTIONS HUB

30 Building on experience

38 Record year

41 Alarm and operations

Africa can beneﬁt from experience gathered in the Middle East on infrastructure and power projects

According to MEED Insight, over $65bn in power contracts have been awarded throughout the MENA region

management technology Next generation solution reduces alarms by up to 80% to improve operator effectiveness and plant safety

OIL AND GAS

ANALYSIS

EXECUTIVE INSIGHT

32 Value in commissioning

39 Downbeat outlook

42 Constant innovation

Driving energy efficiency in the oil and gas industry need not be at the cost of safety, says MAHY Khoory & Co’s Sarfraz H Dairkee CITIES

36 Greenprint for future cities Anthony Mallows, Director of Masdar City about the latest developments in Masdar City and aligning with the UPC

INFRASTRUCTURE MIDDLE EAST

Construction industry survey reveals sharp drop in optimism and hardening market conditions

SOLUTIONS HUB

40 Switchgear diagnostic system Innovative temperature diagnostic system improves reliability and availability of switchgear

December 2015

Darius Khanloo, Managing Director, Hormann Middle East on the long term growth prospects for doors

EVENT REPORT

44 The WOW factor Exclusive report from Bentley Systems’ annual Year in Infrastructure conference in London

ONLINE DECEMBER 201 5

L A U N C H PA R T N E R

CONSTRUCTION MACHINERY ME’S HOME ON THE WEB MOST POPULAR

EDITOR'S CHOICE

READERS' COMMENTS

Drake & Scull, Arabtec shares hit hard as

Dubai market tumbles Shares in developers Emaar and Damac fell as the Dubai Financial Market index hit an 11-month low PHOTO GALLERIES

Dubai’s Arabtec reports heavy losses in “difficult

regional market”

VICEROY DUBAI JUMEIRAH VILLAGE UNDER CONSTRUCTION

consecutive period of losses,

A tour of the one-of-a-kind mixed-use project by SKAI Real Estate Development.

falling $257 million further into

See photo galleries at: meconstructionnews.com/photos

Contractor reports fourth

the red in the third quarter

“We also had a similar situation [as described in MEConstructionNews.com article about online fraudsters targeting regional construction ﬁrms]. But thankfully, our accounts realised that there was fraud interception of our emails and our emails were compromised. Hence we took immediate action by informing the client through phone and personal emails to avert a disaster of money being transferred to the fraudsters’ accounts. The matter was reported to the police” Name not supplied, comment to story ‘Hacking scam alert after fraudsters target Dubai construction ﬁrm’

Al Habtoor Group “to sell its stake in HLG”

Dubai conglomerate to focus on its 100%-owned assets, according to TV report

READER POLL

Will the Gulf construction sector step up executive recruitment in 2016?

Top 10 Oman infrastructure projects

Despite the decline in global oil prices, Oman is pressing ahead

39% 6%

with several large projects

Abu Dhabi’s Aldar to launch sale of Mayan

units on Yas Island Prices start at $217,800 for a

VIDEO

DUBAI THEME PARKS UNDER CONSTRUCTION

will be available to buyers

A sneak peek at the Dubai Parks and Resorts development, which is due to open in October 2016.

of all nationalities

See videos at: meconstructionnews.com/videos

studio apartment; residences

Yes: There will be more jobs created

Yes: People will move for better salaries

31%

22%

No: The market will be stagnant

No: I expect layoffs

Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com

UAE HH Sheikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, launched the Dubai Clean Energy Strategy 2050 last month. The strategy aims to provide 7% of Dubaiâ&#x20AC;&#x2122;s energy from clean energy sources by 2020. This will increase to 25% by 2030 and 75% by 2050. Under the strategy, gas will meet 61% of Dubaiâ&#x20AC;&#x2122;s power requirements, followed by solar (25%), nuclear (7%) and clean coal (7%). The strategy includes investment of $27.22bn in a Green Fund, and $13.61bn in the solar park by 2030.

Clean sweep Dubai is aiming for the title of worldâ&#x20AC;&#x2122;s smallest carbon footprint city

Dubai was officially declared as the venue for the World Expo 2020 at the 158th General Assembly of the Bureau International des Expositions (BIE) in Paris last month. Reem Al Hashimi, UAE Minister of State and DirectorGeneral of Bureau Dubai Expo 2020 said the expo will support the ongoing development,

diversiďŹ cation and long-term success of the UAEâ&#x20AC;&#x2122;s economy. She added that there will be a signiďŹ cant quantity of economic activity directly and indirectly stimulated in the course of the design, build and operational phases of the event. Expo 2020 Dubai will open its gates to the world on October 20, 2020.

The UAE is expected to grow three per cent in 2015, said a Reuters report quoting the Central Bank governor Mubarak Rashid al-Mansouri. â&#x20AC;&#x153;The government is still continuing with its spending, though they will rationalise any unnecessary investments,â&#x20AC;? said al-Mansouri, while speaking to the press on the sidelines of a banking conference in Dubai. According to a report by the Central Bank, the removal of petroleum subsidies helped improve the countryâ&#x20AC;&#x2122;s ďŹ scal balance in the second quarter of the year. The Institute of International Finance (IIF) has predicted that consolidated government spending in the UAE, including the federal government and the seven individual emirates, is expected to decline by 4.5% in 2015.

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REGIONAL UPDATE

Oman Oman’s revenues from oil for the ﬁrst nine months of 2015 dropped 45.5% when compared to the same period last year, reported Gulf News. Oil revenue at the end of September stood at $10.92bn, compared to $20.29bn in the nine months of 2014, according to the National Centre for Statistics and Information. Overall spending has decreased by 1.8%, with spending on defence and national security down by 9.6%. Spending on civil ministries rose by 0.6%. Spending on oil and gas production increased by 23.2 % and 95.2% respectively. Fuel subsidies have cost are estimated to have cost Oman an estimated $2.33 bn in 2015 compared to $2.18bn in 2014.

A limestone mine Oman’s proposed new mining law aims to attract more investments

Oman will continue to invest in drilling and exploration in the oil and gas sector during the next Five-Year Plan, reported Times of Oman. The report, quoting Dr Mohammed bin Hamad Al Rumhy, Minister of Oil and Gas, said the oil reserves were sufficient in terms of continuity of production for several more

decades as the extraction is seven per cent of the total reserves. Oman has been investing in Enhanced Oil Recovery (EOR) and tight gas projects. Al Rumhy also noted that Public-Private Partnerships (PPP) have paid well and resulted in developing standard criteria for the in-country-value (ICV) for the oil companies’ tenders.

Saudi Arabia Saudi Arabia’s civil aviation authority has announced a plan to privatise its airports by 2020, reported AFP. The initiative will be launched in the ﬁrst quarter of 2016 with the privatisation of Riyadh’s main international airport. The General Authority for Civil Aviation (GACA) said all privatised airports and services would be supervised and managed by the Saudi Civil Aviation Company Holding “which will undertake the privatisation of all international, regional and domestic airports” by 2020. GACA said the privatisation programme was aimed at upgrading services by operating on a commercial basis and generating funds for state coffers while diversifying the economy.

INFRASTRUCTURE MIDDLE EAST

Curbing speculation Saudi Arabia’s new land tax will free up urban land for housing

Saudi Arabia’s council of ministers has approved a proposal to apply a 2.5% ‘white land tax’ on all undeveloped residential and residential/ commercial plots within urban boundaries, Saudi Press Agency reported. The tax will make it more expensive for urban land owners to keep their land holdings empty or undeveloped.

December 2015

The tax will be deposited into an account of the Saudi Arabian Monetary Agency (SAMA) and will be used to fund housing and related infrastructure projects across the kingdom. Jamil Ghaznawi, the national director and country head of JLL Saudi Arabia, said the law will help address the severe shortage of middle income housing in Saudi Arabia.

Shortage of gas is one of the challenges facing Oman’s mining industry, reported Times of Oman. The report quoted Hussain Al Zubaidy, director of Exploration Department at the Public Authority for Mining as saying that the mining sector should be given priority in gas supply given its economic potential. The Public Authority for Mining has drafted a new mining law, which seeks to increase investment into the mining sector. At the same time, the mining industry has called for streamlined government processes and one-stop-shop approach for processing licensing applications. In 2013, exports of mineral products accounted for 33% of Oman’s total non-oilexports.

Saudi Arabia is seriously considering subsidy cuts and taxation to deal with lower oil revenues. In an interview with The New York Times, Deputy Crown Prince Mohammad Bin Salman said the government is considering reduction in subsidies on energy and water for wealthy citizens, imposing value added tax (VAT) and tax unhealthy goods like cigarettes and sugary drinks. “Even if oil falls to $30 a barrel, Riyadh will have enough revenues to keep building the country without exhausting its saving,” said the Deputy Crown Prince. “The key challenges are our overdependence on oil and the way we prepare and spend our budgets.” Among other things, Saudi Arabia is planning to invest in nuclear energy and solar energy to reduce domestic oil consumption. Privatisation of the mining industry is also on the agenda.

REGIONAL UPDATE

Qatar Qatar has launched an official investigation into the huge damage to property caused by heavy rains last month. Qatar’s prime minister Sheikh Abdullah bin Nasser bin Khalifa Al-Thani has instructed authorities to bring the companies behind the country’s “ﬂawed projects” before the public prosecutor. The investigation includes ﬁve companies who have not been named. A report by Qatar News Agency said the parties responsible for dereliction or negligence, governmental or private, will be held accountable. The government has also imposed a travel ban on owners of construction companies, contractors and consulting engineers.

East Europe push Qatar shipped its LNG to Poland for the first time

The ﬁrst-ever Liquiﬁed Natural Gas (LNG) carrier from Qatar arrived in Poland to help the eastern EU member diversify its energy supplies and reduce dependence on Russia. The Al Nuaman vessel carried 210,000 m3 of LNG to the northwestern port of Swinoujscie. In 2009, Poland signed a 20-year-

deal with Qatargas on supplies via the Swinoujscie terminal “For the ﬁrst time ever, Poland has received a gas delivery from the Middle East,” said deputy ﬁnance minister Henryk Baranowski. “As soon as the terminal is launched, Poland will be able to import LNG practically from any place in the world.”

Qatar’s Ministry of Transport has stated that the new Hamad Port will commence limited operations in December. Once fully operational, Hamad Port’s capacity will be 6m containers a year. It will be connected with other GCC countries through road, sea and rail networks, According to a statement issued by the ministry, the port will be able to handle 1.7m tonnes of general goods, one million tonnes of food grains and 500,000 vehicles. It will also has a general cargo terminal, a multi-use terminal, an offshore supply base and a coast guard facility. According to Dr Abdulaziz al-Ghorairi, Senior VP and chief economist, Commercial Bank, a major beneﬁciary will be the construction industry since they can import raw materials on time to meet 2022 deadlines.

REGIONAL UPDATE

Kuwait Work on the photovoltaic (PV) plant in Kuwait’s Shagaya renewable energy park has started, reported Bloomberg. The 10MW plant is being constructed by Spain’s TSK Electronica and local construction company Kharafi National. The plant is expected to become operational and connected to the grid in the first half of 2016. Shagaya Phase 1 will also include a 50MW solar thermal plant. Kuwait has set a target of producing 15% of its energy needs from renewables by 2030. The Shagaya facility is being developed by the Ministry of Electricity and Water and the Kuwait Institute for Scientific Research (KISR). By 2030, it will have 2,000 MW of installed capacity.

Comeback Kuwait has emerged as the second biggest projects market in the GCC

Kuwait’s government is showing a willingness to push forward ﬁscal reforms including subsidy cuts needed to support its currency in an era of low oil prices, said a report by Arab Times. The report, quoting Prasad Ananthakrishnan, the IMF mission chief to Kuwait, said the government may cut fuel

subsidies first, as no legal changes are required, but electricity and water require legislation and may be introduced later. “At this point in time, there is no issue (with liquidity in the banking system), but definitely as oil prices go down and there’s no adjustment in the fiscal system, there should be some tightening,” said the IMF executive.

Bahrain HRH Prince Salman bin Hamad Al Khalifa, the Crown Prince has accepted the Government Task Forces’ recommendations to reduce government expenditure by 30%. Bahrain is implementing a comprehensive programme of structural economic and ﬁscal reforms to further strengthen its long-term development. The programme is underpinned by three pillars: streamlining government expenditure; redistributing government subsidies; and a series of economic reforms and infrastructure projects worth more than $32bn to increase investment and growth. Work in this area has already led to a reduction in the number of government ministries and the merging of 10 government entities.

INFRASTRUCTURE MIDDLE EAST

Relying on partnership Bahrain is setting up an LNG import terminal as a PPP project

Bahrain’s National Health Regulatory Authority (NHRA) has received 46 applications for investment in the health sector and construction of new hospitals or medical centres. At a meeting with Bahrain Chamber of Commerce and Industry (BCCI) Health Committee, NHRA CEO Dr Mariam Adhbi A-Jalahma said efforts are underway to remove

December 2015

obstacles hampering investors, including the development of legislations to streamline the issue of medical licences without prejudicing quality requirements. She announced that edicts would be issued to regulate health establishments and unveiled a plan to start next year categorising private hospitals in accordance with international quality standards .

With $30bn worth of projects awarded by the state this year, Kuwait has become the second largest projects market in the GCC. “Up until mid-October, Kuwait has awarded record projects worth $30bn, up around $6bn on the whole of last year,” said Edward James, director of analysis at MEED Projects, while speaking at the MEED Kuwait Projects 2015 conference last month. Key sectors include construction at $90bn, oil and gas ($69bn), transport ($49bn) and power ($26bn). James said the acceleration in project activity will continue into 2016 thanks to the emphasis on PPP projects. Key projects planned over the next ﬁve years include a metro system at $18.5bn and a railway project as part of the GCC railway link at $6.6bn.

Bahrain’s Oil and Gas Authority (Nogaholding) has awarded a consortium of Teekay LNG Partners, Samsung C&T and Gulf Investment Corporation (GIC) a contract to develop an LNG import terminal. The project, to be developed on a BOOT (build, own, operate, transfer) basis, will be located in Hidd Industrial area of Bahrain and is the ﬁrst of its kind in the Middle East to be developed on a Public Private Partnership (PPP) scheme. The project will have a capacity of 800 m standard cubic feet per day and will be owned and operated under a 20-year agreement commencing on 15th July 2018. It will be funded through a combination of equity capital and project ﬁnance through a consortium of regional and international banks.

REGIONAL UPDATE

Utilities Oman is planning to develop a new 240,000m3/day desalination capacity across three different sites, said a Times of Oman report. Oman Power and Water Procurement Company (OPWP), the sole procurer of new power generation and water desalination capacity, has floated a request for qualification (RFQ) tender seeking applications from multinational developers. The floating of RFQ for a water project comes close on the heels of similar projects initiated in Barka, Sohar, Salalah and Sharqiya. OPWP is in advanced stages of selecting a developer Barka and Sohar projects. Both are expected to start operations in 2018.

Sewage project The Sabah Al Ahmad Sea City STP will utilise SBR technology

SSH has been awarded the engineering consultancy services for the design of a Sewage Treatment Plant in the Sabah Al Ahmad Sea City in Khiran in the south of Kuwait by developer La ‘ala Al-Kuwait Real Estate Company. The treatment plant will have a capacity of 45,000 m3/day and will utilise SBR technology.

SSH will undertake Concept, Preliminary and Detailed Design as part of the services to be provided and has engaged process engineering company P2MBerlin as sub-consultant for the specialist elements of the project. The system will include the use of UV and chlorine disinfection for the production of reusable treated sewage effluent.

Oil & Gas RasGas has become the first company in the world to deploy GE’s Asset Performance Management (APM) solution for the LNG sector. The pilot project will leverage GE’s Predix Cloud, the world’s first and only cloud-based solution designed specifically for industrial data and analytics, to lower the operating costs and optimise the product chain. Accumulated information from several years of operation in various locations will be integrated to strengthen predictive and corrective capabilities Fahad Mohammed Al Khater, COO, RasGas, said: “The efficient utilisation of big data enables us to monitor our resources effectively and identify challenges even before their onset to drive growth.”

Karbala refinery The green field project is expected to start operations in 2010

Abu Dhabi will struggle to reach its target oil reservoir recovery rate of 70%, double the global average, without world class energy R&D, said a survey. The Top-10 ﬁndings of the survey by Gulf Intelligence highlighted how Abu Dhabi - which holds close to 10% of the world’s proven oil reserves – is on the right path, but its

progress could be accelerated by encouraging an entrepreneurial culture around R&D. An overwhelming majority of the survey respondents urged ADNOC to make it a contractual obligation for international energy companies seeking to join the new 40-year oil and gas concessions currently under review to invest in the country’s energy R&D ecosystem.

December 2015

Dubai Electricity and Water Authority (DEWA) announced that it has trained 127 engineers and technicians of electrical and solar PV consultants and contractors to accelerate the Shams Dubai rooftop solar programme. The installation process prescribed by DEWA starts with the customer contacting one of the accredited consultants or contractors to suggest the best solution and obtain the necessary approvals from DEWA. After completing installation, they will submit a notiﬁcation to DEWA to conduct the technical inspection of the site and install the meter to complete the connection process. Under the Dubai Clean Energy Strategy 2050 announced last month, solar panels will be required on the roofs of all building in Dubai by 2030.

Honeywell will provide its UOP process technology and advanced automation controls to Iraq’s Karbala refinery, now under construction in Karbala Province. Owned by Iraq’s State Company of Oil Projects’ (SCOP), the Karbala refinery will help offset the more than 350,000 barrels per day (bpd) of refined products the country currently imports with products that meet Euro V fuel standards. Startup of the 140,000 bpd refinery is expected in 2020. Mike Millard, vice president and general manager of Honeywell UOP’s Process Technology and Equipment business. “By using an integrated process and controls solution, the Karbala refinery will be able to optimise production of cleaner-burning fuels and products such as liquefied petroleum gas, gasoline, diesel, fuel oil, jet fuel and asphalt.” for domestic consumers.”

INFRASTRUCTURE MIDDLE EAST 9

SECTOR UPDATE

Transport Dubai’s Roads and Transport Authority (RTA) is developing 400 bus shelters on public private partnership (PPP) model. Phase II of Air-Conditioned Bus Shelters Project has been awarded to Right Angle Media Company on a Design-BuildOperate-Transfer (DBOT) basis. Phase 11 also includes 50 smart shelters and 150 solar-powered shelters. The project will be completed by the end of 2017, bringing the total number of bus shelters 1,295. The Air-Conditioned Bus Shelters Project is part of a master plan push the share of public transport in the daily mobility of persons in the emirate to 30% by 2030.

PPP project Dubai RTA is developing air conditioned bus shelters on DBOT basis

Air Traffic Management (ATM) is an issue of pressing concern for the Middle East, said Tony Tyler, Director General and CEO of the International Air Transport Association (IATA). Speaking at the Arab Air Carriers Organisation AGM in Jeddah last month, Tyler noted that capacity has not kept pace with the growth in demand, which

is leading to signiﬁcant delays.. According to the IATA chief, a concrete achievement that would be most useful by the middle of 2018 would be for the airspace over the Saudi Empty Quarter to be opened up, and for traffic ﬂow in the Muscat FIR to improve. He also called for a full commitment to the Middle East Enhancement Programme (MEAP).

Construction Emirates Green Building Council (EmiratesGBC) has announced the launch of the Energy Efficiency Online Database to facilitate building retroﬁt projects in the UAE. Part of the ‘EmiratesGBC Energy Efficiency Programme’ (EEP), the database of products and services provided by EmiratesGBC’s corporate members is publicly accessible through the EmiratesGBC website. One of the objectives of EEP is to improve the links between building industry stakeholders to help them tackle the challenges faced when considering an energy efficiency project. The new online feature is expected to help the stakeholders to identify the right partners and solution providers during the planning process.

INFRASTRUCTURE MIDDLE EAST

Offsite excellence KEF Holdings is setting up an R&D centre for offsite construction

Dubai-based KEF Holdings has tied up with Manipal University in India to set up the MIT-KEF R&D Centre for Offsite Construction. The $1.49m project is being set up with an equal contribution from the Faizal and Shabana Foundation and Manipal University. KEF Holdings has pioneered technology-driven offsite construction in India

December 2015

through its infrastructure arm, KEF Infra, at the KEF Infra One industrial park located in Tamil Nadu. The new R&D Centre will provide budding engineers with practical know-how on offsite construction. KEF Holdings is also working with Manipal University to introduce in-depth modules on offsite and modular construction in the curriculum.

Boeing has forecasted that Middle East airlines will require 3,180 new airplanes over the next 20 years, valued at an estimated $730bn. Fleet expansion will drive 70% of the demand. “Traffic growth in the Middle East is expected to grow 6.2% annually during the next 20 years,” said Randy Tinseth, VP Marketing, Boeing Commercial Airplanes. “About 80% of the world’s population lives within an eight-hour ﬂight of the Arabian Gulf. This geographic position, coupled with diverse business strategies and investment in infrastructure is allowing carriers in the Middle East to aggregate traffic at their hubs and offer one-stop service between many city pairs that would not otherwise enjoy such direct itineraries.”

COWI has been awarded a contract covering durability design and support to the contractor throughout the construction of the large LUSAIL CP7 car park, light rail and tunnel in Doha. The Lusail Plaza CP7 project consists of a large network of underground structures sitting at the heart of the Lusail development The underground structures require over one million cubic metres of concrete that will be to severe exposure conditions, with the salinity of the groundwater being several time that of seawater and containing high concentrations of sulphate. To meet the client’s requirement of a service life of 120 years, COWI will use innovative durability design solution that is able to predict and verify the concrete structures’ service life.

SECTOR UPDATE

Cities The master plan for the development of Shakhbout City, featuring additional housing for residents and community facilities such as parks, mosques, schools and hospitals, has been completed by the Abu Dhabi Urban Planning Council (UPC). The Master Plan has now been formally handed over to Abu Dhabi City Municipality (ADM) for implementation. Shakhbout City, formerly known as Khalifa City B, is a major residential development on Abu Dhabi Mainland, approximately 30km from the Abu Dhabi Island CBD. Covering an area of 1,854 hectares, the city is anticipated to be home to approximately 80,000 residents in the future.

Shakhbout City ADM will be responsible for the implementation of the master plan

Egypt plans to build one million homes for poorer people at a cost of almost $20bn over the next ﬁve years, said a Reuters report. Housing Minister Mustafa Madbouly told the newswire that Egypt needed to build 500,000 to 600,000 new homes a year to keep up with demand, 70% of which should be aimed at the poor.

The social housing project will see 200,000 new homes built each year, meeting over half the annual demand for cheap housing. Private developers, who have built new suburbs around Cairo, are meeting the needs of middle and higher income Egyptians who can buy homes outright or obtain mortgages.

The lack of affordable housing in Abu Dhabi provides a major opportunity for developers to fill the gap with ‘genuine affordable’ housing, says real estate consultancy Cluttons. Edward Carnegy, head of Cluttons Abu Dhabi, said: “This issue of affordability has been building for some time, initially following the introduction of the Federal Mortgage cap and doubling of property registration fees. These had the desired effect of cooling the market, but now many people are forced to pay premium rents, limiting their ability to become owner occupiers in the long term.” Newly planned legislation around fixed quotas for ‘affordable homes’ which may help to ease access to the property market has been drafted; but details are yet to be confirmed.

FINISHED PRODUCT SALES HOSE & BELT MANAGEMENT HYDRAULIC TUBING & PIPING GATES ENGINEERING & SERVICES MENA Headquarters, Jebel Ali Free Zone Dubai, United Arab Emirates Telephone +971 4 886 1414 Fax +971 4 886 1413

HYDRAULIC SYSTEM REFURBISHMENT FLUID POWER EQUIPMENT DESIGN & BUILD mena@gates.com <> Gates.com

GLOBAL UPDATE

Round Up Asian cities dominate the ranking of the world’s biggest and busiest metro systems according to a new report from UITP, the International Association of Public Transport. The world’s busiest metro network is the Tokyo metropolitan area, with almost 3.6bn passenger journeys per year, a 10% increase compared to 2012. Beijing (3.4bn, +39%) and Shanghai (2.8bn, +25%) are 2nd and 3rd respectively. Rounding out the top ﬁve are Seoul (2.6bn, +8%) and Moscow (2.4bn, -1%). The report also reveals that nearly a quarter of the world’s metro systems have at least one fully automated metro line. There are 732km of automated metro lines in 35 cities around the world, with Dubai (80km) holding the title of the longest. Siemens has achieved the highest possible score in the Carbon Disclosure Project (CDP), the world’s largest climate-protection survey. For the transparency of its reporting on the opportunities and risks associated with climate change, the company received 100 (2014: 99) out of 100 possible points. In addition, Siemens’ efforts to achieve energy efficiency and cut CO2 emissions enabled the company to reach Band A, the highest performance range. As a result, the company is also included in the Carbon Performance Leadership Index. More than 5,000 companies worldwide provided data that was assessed against the CDP’S scoring methodology. Out of these, only 113 companies made it onto the Climate A List.

INFRASTRUCTURE MIDDLE EAST

Asian ascendance Tokyo hosts the world’s busiest metro rail network

A large majority of oil and gas companies (76%) said that turbulent oil prices have slowed, or halted most of their innovation initiatives, according to a research report by Lloyd’s Register Energy. Sixty seven per cent of oil and gas executives also believe that the oil price will be $50-$70 a barrel over the coming year, squeezing their already strained research and development (R&D) budgets. Still, an overwhelming majority (80%) have maintained that innovative technologies will be vital to maintaining their competitive edge by improving operational efficiency (46%), reducing costs (36%) and bettering access to potential energy reserves (35%). Over half (56%) of responders expect data collection and analytics to be important to their plans over the next two years.

Construction of the 1,800 km Turkmenistan-AfghanistanPakistan-India (TAPI) natural gas pipeline project is expected to start this month. Turkmengaz, which was named project consortium leader for TAPI Pipeline Company in August, will kickoff the construction of the $7.6bn gas pipeline. The pipeline is expected to last for 30 years with a proposed annual capacity of 33 bcm of gas. Turkmenistan’s mammoth Galkynysh ﬁeld will supply the gas for transport through the pipeline. Pakistan and India through state-owned companies would each purchase 42% of the volume; Afghanistan would purchase 16% and will be entitled to receive a transit fee for the use of its territory from other TAPI gas buyers. The preliminary feasibility studies were done by the Asian Development Bank (ADB).

Fracking plan The UK is the only European country supporting shale developments

December 2015

ABB has won a large contract for the 1,850 km Trans-Anatolian Natural Gas Pipeline (TANAP) to bring Azerbaijan’s natural gas directly to Europe. ABB will deliver the control infrastructure to contribute to safe, secure and reliable operation of the pipeline throughout its lifetime. The $11bn pipeline will interconnect with two others: the South Caucasus at Turkey’s border with Georgia and the Trans Adriatic at its border with Greece. The gas will come from the Shah Deniz 2 field in the Caspian Sea and it will enter the European network in Italy. It will cross the whole of Turkey, with TANAP forming the central section of the $45bn Southern Gas Corridor, which will be part of Europe’s future strategic energy infrastructure. TANAP is a special-purpose company with SOCAR of Azerbaijan, BOTAS of Turkey and BP as shareholders. The UK is currently the only major European country showing meaningful support for shale gas developments, according to research and consulting firm GlobalData. Any hopes for developing large-scale shale resources in Europe have faded as regulatory measures have made hydraulic fracturing, or fracking, less feasible, and unfavorable geology and sustained low gas prices have challenged project economics. The UK’s new policy gives the government final say over the outcome of planning applications and appeals for shale gas exploration and development. However, the government has also planned to set up a Shale Wealth Fund, designed to benefit communities affected by shale gas development.

Presents

THE ANNUAL

MIDDLE EAST PPP CONFERENCE Spotlighting vital aspects of public-private partnerships

22 MARCH 2016 | DUBAI, UAE

MEDIA PARTNERS

For Sponsorship Opportunities Contact: Jude Slann Commercial Director +971 50 456 3924 jude.slann@cpimediagroup.com

For Speaking Opportunities Contact: Anoop Menon Editor +971 50 281 6075 anoop.menon@cpimediagroup.com

QUOTE BOARD

10th GPCA Annual Forum

NOVEMBER 17-19, DUBAI, UAE

“One of the biggest barriers to increased intraregional trade among all GCC countries is the lack of proper road and rail network that connect our industrial sites. The most important scheme – particularly for our industry – is the planned GCC railway, which will extend to 2,117km by connecting the rail networks of all six GCC countries” Rashed Saud Al Shamsi, Chairman of GPCA and Head of petrochemicals, ADNOC

“At the ﬁrst GPCA forum 10 years ago, no one anticipated that the US was about to emerge as a hotspot for chemicals investment. But today, we see the US pursuing a model similar to what the Middle East did decades ago, capitalising on domestic natural gas supplies by building capacity to serve overseas growth”

“Having successfully built up scale and share of the global market over the last 50 years, we have now reached a very interesting inﬂection point. Global macroeconomic realities mean that the industry must push ahead with its investments to innovate and move even further up the value chain” HE Eng. Suhail Mohamed Faraj Al Mazrouei, UAE Minister of Energy

Neil Chapman, President, ExxonMobil Chemical

“The driver for diversification of production is the shortage of gas in the GCC, and to reduce exposure to low crude oil prices. We are building large-scale refineries with associated petrochemical complexes to have the option to move away from gas and towards liquids and to benefit from integration of overall operations” Nizar Al-Adsani, CEO, Kuwait Petroleum Corporation

“Right now, Middle East crackers are the most competitive in the world. US crackers in the shale era are no longer high-cost producers. Instead, they are now the most competitive in the world outside of the Middle East” Yousef A Al-Benyan, SABIC Acting Vice Chairman & CEO

INFRASTRUCTURE MIDDLE EAST

December 2015

“In Saudi Arabia, we created the master gas system to capture, treat, and process the gas through a very large and sophisticated gas network system of more than 4,000km in length, with production capacity of 9bn standard cubic feet every day. This transformed our industry and economy to include petrochemicals” HE Eng. Abdullatif Ahmad Al Othman, Governor & Chairman of the Board of Directors, SAGIA

QUOTE BOARD

ADIPEC 2015 NOVEMBER 9-12, ABU DHABI, UAE

“We are cutting cost, but we are not cutting projects. We are really asking others to decide how they will cut costs, and our partners to identity areas where we can slow down without affecting the production and essential services” HE Mohammed bin Hamad Al Rumhy, Minister of Oil & Gas, Sultanate of Oman

“Today, we see more women taking on active roles than ever before, thanks to inclusive corporate policies and the unwavering support of our leadership. I believe this, together with community-wide education about the many career opportunities available, will encourage more women to seek career paths in energy” HE Sheikha Lubna Al Qasimi, UAE Minister of International Cooperation and Development

“Global crude oil prices have dropped by more than 50%, but that does not change the vision of the UAE and of the region to continue as suppliers to the world. We are not cancelling our projects. I am conﬁdent we will see in 2016 some improvement in the market. Don’t ask me how big – the market will decide that. Don’t ask me who will play a role – it will not be OPEC. Everybody has to play a role” HE Eng. Suhail Mohamed Faraj Al Mazrouei, UAE Minister of Energy

“Attracting top talent should really be a genderless pursuit, and forward-thinking companies have already shifted toward this approach across all industries, including oil and gas” Huda Al Ghoson, Executive Director of Human Resources, Saudi Aramco

“We are targeting operating costs to be more efficient to comply with the current prevailing prices. We are committed to manage the schedules as much as possible. But I am happy to see a very healthy offshore industry in Abu Dhabi” Ali Rashid Al Jarwan, CEO, Abu Dhabi Marine Operating Company (ADMA-OPCO)

“We are experiencing a movement from the BRIC era to the Shale era, from a time of great demand and scarcity to a time of an abundance in supply and weaker demand. What is happening today is a rebalancing of the world economy.” Dr Daniel Yergin, Vice Chairman, IHS

December 2015

INFRASTRUCTURE MIDDLE EAST 15

QUOTE BOARD

THE BIG 5 NOVEMBER 21-24, DUBAI, UAE

“We were expecting a lot of resistance, from consultants, contractors and suppliers. We ran an awareness campaign with 1,100 meetings between 2010 and 2014. Once they were certain that the regulations were coming in, all the suppliers bought into them. So really we owe it to the private sector and to our suppliers that all the materials we needed [to go green] were here” Eng. Abdulla Rafia, Assistant Director General, Planning and Engineering, Dubai Municipality

“Design evolves, technology innovates and new materials are coming into the market to solve our ever pressing needs; technology is combining with design creating functional and aesthetic forms. Value is a word we’re really seeing eclipsing costs, and in a market where cost is often talked about, we see that as a positive thing” Christopher Seymour, Head of Markets, Arcadis Middle East

“According to the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, a smart city is a city that makes people happy, makes their lives easier, and improves living standards. At DEWA, we work to achieve this vision, which supports the Dubai Plan 2021, to make Dubai the preferred place to live, work, and visit” HE Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity and Water Authority (DEWA)

“Using 3D printed technology for large scale projects would depend on the construction materials you use, it could get very big in terms of area, it could get very big in terms of having entire towns printed. I don’t know if 3D printing in its current form would be the best route for going tall and building skyscrapers where you localise the printer” Nicholas Billotti, WinSun Global

“Back in 2008, the world had a ﬁnancial crisis, so there was a very large number of structures that were partially built and ...were put on hold. “That’s not good news ... but as an engineer with a technical interest, it’s fascinating because you have a large number of case studies of exposure of reinforced concrete to a very harsh environment, that it was never intended to be exposed to” John Young, MD, Young Engineering Consultancy

INFRASTRUCTURE MIDDLE EAST

December 2015

“We should put people ﬁrst. Ultimately, every journey has walking in it at some point. We should be thinking of us ﬁrst, then we look at the other modes of transport after that. Cyclists need their own separate infrastructure because they need to feel safe to be able to cycle around their own city” Martin Tillman, Director, Strategic Planning and Advisory, AECOM

QUOTE BOARD

IoT World Forum DECEMBER 7, DUBAI

“In 2015, IoT has hit an inﬂection point. There is not a major government leader or a major industry player that doesn’t understand that this is going to give them opportunities and dramatically disrupt them. It is going to level the playing ﬁeld in terms of small companies being able to compete with large companies. The key is, are you going to be a disruptor in your industry or are you going to get disrupted?” John Chambers, Executive Chairman, Cisco

We have witnessed a massive development during the past years and within a short span of time. At the pace at which the emirate is moving forward, I won’t be surprised if Dubai goes on to become the smartest city in the world in the next three years” Anil Menon, Senior President, Smart & Connected Communities, Cisco

“Within the MENA region, the cellular connections for IoT will increase by 500% in the next ﬁve years. There are hundreds of data points; there are millions of smart meters and ecosystems of decices talking to each other. Connected living, connected cities, connected health and connected cars - they are the future for this region. what we see happening in this region is real digital transformation” HE Ahmad Julfar, CEO, Etisalat

“Data would indicate that by implementing predictive solutions in factories in the next few years, we can deliver 100x RoI for the cost of implementing that capital. In the next ﬁve years, traffic management, parking projects could reduce global emissions by 164m metric tonnes - equivalent to pulling 35m cars off the road” Doug Davis, SVP & GM, Internet of Things Group, Intel

“The reality is that manufacturing today are rapid adopters of new technology for high value, mission critical applications and machines; safe, secure work environments; and information driven applications. In short, a world where virtual and physical come together, a world that embraces the Industrial Internet of Things (IIoT)” Keith Nosbush, Chairman & CEO, Rockwell Automation

“By the year 2020, we are going to have 50bn connected things. This is a nice number but what really inspires me is the data, the insight, the action, the innovation that is going to come out of 50bn connected things.That is the awakening opportunity behind IoT” Inbar Lasser-Raab, VP Infrastructure & Digital Solutions, Cisco

December 2015

INFRASTRUCTURE MIDDLE EAST 17

IN FOCUS

ECONOMIC OVERVIEW

Riding out the slump Lower oil prices are yet to impact major projects in delivery within the Kingdom he situation of the economy in the Kingdom of Saudi Arabia has become the subject of conversation among the public as a result of the considerable drop in oil prices – less than half of the barrel price of $107 just over a year and a half ago. While the Kingdom’s sovereign wealth fund has shrunk to approximately $659bn from $717bn, it remains one of the richest globally. Officials at the highest level in the Kingdom have reiterated that the largest economy in the Arab world is strong enough to weather the drop in oil prices as demonstrated in the past. However, the International Monetary Fund (IMF) has forecasted Saudi Arabia will run a budget deficit of 21.6% of the Gross Domestic Product (GDP) in 2015 compared to 3.4% in 2014. Saudi Arabia, the world’s largest oil producer, must sell its oil at around $106 to balance its budget, giving the Kingdom barely any buffers fiscally to survive five years of $50/barrel oil. For the region’s oil exporters, the fall in prices has led to a loss of export revenue to the tune of $360bn in 2015 alone. As a result, experts have been quick to predict a future slowdown in the Saudi economy, particularly in the construction sector. Addressing the Leaders in Construction Summit in Riyadh recently, David Clifton, Regional Development Director, Faithful+Gould presented a counterview. He said the key economic indicators of the Kingdom’s construction project market presented a different medium term narrative to that of the IMF. Clifton elaborated: “Officials have taken some of the necessary action to insulate the

INFRASTRUCTURE MIDDLE EAST

David Clifton, Regional Development Director, Faithful+Gould

Kingdom from the slump in oil prices and rationalisation will occur in the short term. The medium term will be more focused on social requirements and looking at alternative funding and delivery mechanisms. The debt to GDP ratio of 2% indicates further financial and private sector engagement in programmes will deliver benefits and reduce the balance sheet burden for the government.” He pointed out that while with high fiscal surpluses now history, it is always wise to consider methods to preserve cash, either by reducing spend on “vanity projects,” or by cutting back on elaborate schemes and

December 2015

designs or by simplification so that projects are able to go ahead. He reiterated that while the majority of the larger construction projects continue to move ahead, albeit with the potential to rationalise, other challenges facing the construction sector include labour restrictions, narrowing profit margins and difficulty in gaining financing in the current legal frameworks. According to Clifton, delays will happen but they will ultimately be of benefit, bringing stability to the country and the industry while allowing the government to introduce better strategies to manage ongoing projects as well as projects in the pipeline. He continued: “Cost management is key at this stage. Despite the gloom and doom, the Kingdom is reasonably well insulated and is in the process of taking the necessary steps and measures to ensure it survives the slowdown. Many other countries would welcome high foreign reserves and low debt entering into a sustained downturn in revenues.” The government has recently introduced a Project Management Office (PMO) law that requires all ministries to enact an international best practice PMO to improve delivery, surety, transparency and governance. Clifton was part of a select group of industry experts who were instrumental in advising the government’s move towards unifying its PMO approach. Faithful+Gould is helping deliver the expansion of Jeddah airport and is also a key consultant to the Olaya Metro project, where it is implementing strategic cost management procedures and value-engineering to maximise value, reduce unnecessary costs, waste and life cycle costs while improving function, quality and sustainability.

MIDDLE EAST INFRASTRUCTURE TENDERS

Infrastructure Tenders Our monthly analysis of new tenders and key projects across the region

OMAN NATIONAL RAILWAY PROJECT

UMM AL HAUL INDEPENDENT WATER AND POWER PLANT

INTEGRATED SOLAR & COMBINED-CYCLE POWER PLANT PROJECT - TAIBA

AL ABDALIYAH INTEGRATED SOLAR COMBINED CYCLE PROJECT

BUDGET: $15,000,000,000

BUDGET: $2,750,000,000

BUDGET: $3,000,000,000

Territory: Oman Client Name: Ministry of Transport Description: Engineering, Procurement & Construction (EPC) contract for 2,135km-long national railway network. Period: 2018 Status: New Tender

Territory: Qatar Client Name: QEWC Description: Power and desalination plant with an installed capacity of 2,520MW of power and 136MIGD of water. Period: 2015 Status: New Tender

Territory: KSA Client Name: Saudi Electricity Company (SEC) Description: EPC contract to build a 3,600MW ISCC power plant including a 180MW solar component. Period: 2015 Status: New Tender

Territory: Kuwait Client Name: KAPP Description: Build-operate-transfer (BOT) contract for the construction of a 280MW thermal solar power and natural gas hybrid plant. Period: 2017 Status: New Tender

December 2015

INFRASTRUCTURE MIDDLE EAST

MIDDLE EAST INFRASTRUCTURE TENDERS

Top Tenders UAE

SOLAR ENERGY IPP - SWEIHAN Project Number: MPP2999-U Client Name: Abu Dhabi Water & Electricity Authority (ADWEA) Address: ADWEA Building, Al-Falah Street, Abu Dhabi Phone: (+971-2) 694 3333 Fax: (+971-2) 626 7725 Website: www.adwea.gov.ae Description: ADWEA has invited Expression of Interest (EoI) for a 350MW Solar Photovoltaic Independent Power Project (IPP) located at Sweihan, Abu Dhabi. The developer or developer consortium will own up to 40% of the special purpose vehicle which will implement the project including development, financing, construction, operation, maintenance and ownership. The remaining equity will be held, directly or indirectly, by ADWEA. Status: New Tender Tender Categories: Power and Alternative Energy

MOHAMMED BIN RASHID AL MAKTOUM SOLAR PARK - PHASE 3 Project Number: MPP2963-U Client Name: Dubai Electricity & Water Authority (DEWA) Address: Head Office, Near Wafi Shopping Mall, Zabeel East, Dubai Phone: (+971-2) 601 9999 Fax: (+971-2) 601 9995 Website: www.dewa.gov.ae Description: The project involves an Engineering, Procurement and Construction (EPC) contract to build a Solar PV IPP with capacity of 800MW at the Mohammed bin Rashid Al Maktoum Solar Park, which is the largest single-site solar project in the world. The park will produce 1,000MW by 2020 and 5,000MW by 2030. DEWA has received 21 Requests for Qualification (RFQs) for the project. The project tender is expected to be released in January 2016. KPMG has been awarded the lead advisory services contract for the project. Status: New Tender Tender Categories: Power and Alternative Energy

ASTER HOSPITAL PROJECT - MOHAMMED BIN ZAYED CITY Project Number: WPR561-U Client Name: Aster Hospital Address: Dubai, UAE Phone: (+971-4) 398 8799 Website: www.asterhospital.com Description: Construction of a new Hospital comprising a basement, ground floor and five floors consisting of 61 beds. The project is currently in the detailed design stage. Status: New Tender Tender Categories: Construction & Contracting; Medical & Healthcare

INFRASTRUCTURE MIDDLE EAST

December 2015

OMAN SALALAH INDEPENDENT WATER PROJECT (IWP) Project Number: 17/2015-O/11 Client Name: Oman Power & Water Procurement Company Address: Floor 5, Bldg. 5, Muscat Grand Mall, Tilal Complex, Al Khuwair Al Janubiyyah, : Ruwi PC 112 Phone: (+968) 2450 8400 Website: www.omanpwp.co.om Description: The project involves the construction of an IWP with capacity of 18-22 MIGD. The client has issued a Request for Qualifications (RFQ) from experienced international utilities. PricewaterhouseCoopers (PWC) will provide financial advisory services, while Spanish engineering consultant Ayesa will provide technical advisory services. US law firm Curtis, MalletPrevost, Colt & Mosle will provide legal services. The last date for submission of qualifications is January 17, 2016. The commercial operation date for this plant is being targeted in early 2019 Status: New Tender Tender Categories: Water Works

DUQM OIL REFINERY DEVELOPMENT PROJECT - PHASE 1 Project Number: MPP1632-O Client Name: Oman Oil Company Address: Al-Harthy Complex, Muscat PC 118 Phone: (+968-2457 3100 Fax: (+968) 2457 3101 Website: www.oman-oil.com Description: The project involves EPC contract for the development of a 230,000 bpd. grass-roots refinery in Duqm. A pair of multi-billion dollar contracts linked to the establishment of this refinery will be awarded towards the end of 2016. Period: 2019 Status: New Tender Tender Categories: Industrial & Special Projects

KUWAIT

KABD WASTE-TOENERGY PLANT PROJECT Project Number: MPP2620-K Client Name: Kuwait Authority for Partnership Projects (KAPP) Address: Touristic Enterprises Co. Bldg., Shuwaikh Phone: (+965) 2496 5900 E-mail: (+965) 2496 5901 Website: www.ptb.gov.kw Description: Build-Operate-Transfer (BOT) contract for the development of a waste-to-energy plant with initial capacity of 3,275 tonnes/day. Client will enter into a 30-year contract with the winning investor. The client has invited five prequalified companies to participate in the Request for Proposal tender round. Period: 2015 Status: New Tender Tender Categories: Power & Alternative Energy; Sewerage & Drainage

MIDDLE EAST INFRASTRUCTURE TENDERS

JEDDAH PUBLIC TRANSPORT DEVELOPMENT PROJECT

KUWAIT SCHOOLS DEVELOPMENT PROGRAM PUBLIC-PRIVATE PARTNERSHIP PROJECT Project Number: MPP2895-K Client Name: Kuwait Authority for Partnership Projects (KAPP) Address: Touristic Enterprises Co. Bldg., Shuwaikh Phone: (+965) 2496 5900 E-mail: (+965) 2496 5901 Website: www.ptb.gov.kw Description: The project involves the development of nine schools, including five kindergartens, three elementary and one middle school, a residential building for female teachers and an Olympicsize swimming pool. It is being developed by KAPP in association with the Ministry of Education. KAPP has prequalified four consortiums to purchase the request for proposals for the tender. The project is being procured as design, build, finance operate and maintain structure. The term of the contract is expected to be 25 years in addition to three years for the design and build of the infrastructure assets. The new schools will have a combined capacity of 4,350 students. Status: New Tender Tender categories: Construction & contracting; Education & Training

KSA MECCA METRO PROJECT - PHASE 1 Project Number: MPP2444-SA Client Name: Makkah Mass Rail Transit Company Address: Makkah 50449 Phone: (+966-12) 567 3987 Website: www.makkahtransit.org Description: Known as the Makkah Mass Rail Transit (MMRT) system, it will run around Makkah city centre. The network will be able to transport about 100,000 passengers an hour. Client has announced that it expects to award five contracts worth $8.8bn for Phase 1 of this scheme in the first quarter of 2016. Four of the packages will be for lines B and C and include 44km of track and 22 stations. The contracts will be civil 1 (tunnels), civil 2 (viaducts), systems and finishing, and rolling stock. The fifth contract is for a bus system. Once contracts have been awarded, the first phase will take four years to complete. Period: 2020 Status: New Tender Tender Categories: Public Transportation Projects

Project Number: ZPR088-SA Client Name: Jeddah Municipality Address: Jeddah 21146 Phone:(+966-12) 614 9999 Fax: (+966-12) 614 9292 Website: www.jeddah.gov.sa Description: The project involves the develoment of a public transport programme comprising a Metro network, Tramway and Light Rail Transit. Arab Center for Engineering Studies (ACES) has been awarded the geotechnical investigation contract for the preliminary engineering design phase. Metro Jeddah Company (MJC) has invited initial expressions of interest (EOI) for the civil works contract of the metro network. It has also invited EoI and prequalification to design, build, procure, supply, operate and maintain a light rail transit (LRT) and corniche tramway civil works and rolling stock. Period: 2022 Status: New Tender Tender Categories: Public Transportation Projects

December 2015

QATAR QATAR LONG DISTANCE RAILWAY NETWORK PROJECT Project Number: MPP1592-Q Client Name: Qatar Railways Company (QRC) Address: Doha Fax: (+974) 4497 4333 Description: The project involves construction of a 400-km-long railway network. The client has prequalified 15 consortiums for the Phase 1. Period: 2018 Status: New Tender Tender Categories: Public Transportation Projects

PRODUCED IN ASSOCIATION WITH MIDDLE EAST TENDERS

INFRASTRUCTURE MIDDLE EAST

TEN BAHRAIN INFRASTRUCTURE PROJECTS

BAHRAIN PROJECTS Bahrain plans to invest more than $20bn in large scale industrial and infrastructure projects in the next few years as part of its economic diversiﬁcation strategy

INFRASTRUCTURE MIDDLE EAST

December 2015

SITRA REFINERY EXPANSION

Owner: Bahrain Petroleum Company (BAPCO) Budget: $9bn Progress: Project Management Consultancy (PMC) contract awarded The EPC project will expand the capacity of BAPCO’s Sitra refinery by approximately 100,000bpd. The refinery’s existing capacity is 267,000 bpd. The refinery expansion project includes a crude unit and associated facilities, hydrocracker and associated facilities, residue conversion units and a waste treatment facility. BAPCO awarded the project management consultancy contract for the expansion to Australia’s WorleyParsons. The FEED contract was awarded to Technip and is expected to be completed in the first quarter of 2016. Contracts for Saudi-Bahrain crude oil pipeline has also been awarded.

TEN BAHRAIN INFRASTRUCTURE PROJECTS

ALUMINIUM PLANT EXPANSION - LINE 6

Owner: ALBA Budget: $3.5bn Progress: Construction to commence in 2016 The project involves EPC contract to build an additional potline to increase production from the current level of about 890,000 tonnes a year (t/y) to 1.45m t/y. Construction work is on schedule to commence in 2016 upon the completion of final engineering designs, selection of EPCM contractor for it as well as EPC contractor for the fifth power station with capacity of 1,350 MW. The new potline will have 404 pots utilising Dubai Aluminium’s DX+ technology. Out of the $3.5bn planned capital expenditure, $2.5bn will be allotted to build the smelter and the remaining $1bn is being allocated for building the power station. The new potline is expected to start operations in 2018.

KING HAMAD CAUSEWAY

AL DUR POWER PLANT PROJECT - PHASE 2

Owner: Ministry of Transportation & Communications Budget: $3bn Progress: Feasibility study completed

Owner: Electricity and Water Authority (EWA) Budget: $1.3bn Progress: Under planning

The new causeway, which is expected to be 26km long, will run parallel to the existing King Fahd Causeway. In November 2014, Canadian engineering consultancy SNC Lavalin was awarded a contract to carry out the feasibility study on this project, which will link Saudi Arabia and Bahrain. The feasibility study examined two proposed routes. Both options would include a circa 87km rail link connecting two stations on either side of the water. Bahrain’s station would be built on reclaimed land north of the existing King Fahd Causeway. There would also be 28km of approach tracks, a 26km causeway and a 10km bridge.

Al Dur Power Project Phase 2 will be a combined cycle power plant with a capacity of 1,300MW-1,500 MW. EWA is evaluating whether Phase 2 should be built on EPC basis or as Public-Private-Partnership (PPP) basis. Also, no decision has been taken on the desalination component. According to MEED, the plant is planned to be commissioned between 2017 and 2019. Phase 1, which was officially inaugurated in 2012 and cost $2.1bn, was set up as a PPP, and is currently, the largest independent power and water desalination plant in the Kingdom, producing 1,234 MW of power and 48 MIGD of water. Bahrain’s annual electricity consumption stands at 3,000 MW (with a production capacity of 4,000 MW) and is growing at a rate of 7-10% per annum.

December 2015

INFRASTRUCTURE MIDDLE EAST

TEN BAHRAIN INFRASTRUCTURE PROJECTS

LNG IMPORT TERMINAL

Owner: National Oil and Gas Authority (NOGA) Budget: $665m Progress: Contract awarded A consortium composed of Teekay LNG Partners, Samsung C&T (Samsung) and Gulf Investment Corporation (GIC) was awarded the project, which will be developed by them on a BOOT (build, own, operate, transfer) basis. The imported LNG will supplement domestic production and ensure that gas demand can be met, especially from the power and desalination sectors. The project will comprise a Floating Storage Unit (FSU), an offshore LNG receiving jetty and breakwater, an adjacent regasification platform, subsea gas pipelines from the platform to shore, an onshore gas receiving facility, and an onshore nitrogen production facility. The project will have a capacity of 800m standard cubic feet per day and will be owned and operated under a 20-year agreement commencing on 15th July 2018.

INFRASTRUCTURE MIDDLE EAST

SAUDI-BAHRAIN CRUDE OIL PIPELINE

VILLAMAR RESIDENTIAL COMPLEX PROJECT

Owner: BAPCO Budget: $300m Progress: Contract awarded

Owner: Gulf Holding Company KSCC Budget: $700m Progress: Consultancy services contract awarded

The new 350,000bpd crude oil pipeline between Saudi Arabia and Bahrain will replace the existing 230,000 bpd line and help BAPCO expand its Sitra refinery. Crude oil will flow from Saudi Aramco’s Abqaiq plant via the 115km pipeline, 74km of which will run overland and the rest under the Gulf. WorleyParsons executed the FEED work. In September this year, agreements to build the pipeline were signed with Saudi Arabia’s Al Robaya Holding Company and National Petroleum Construction Company of the UAE. The former will complete onshore EPC work in Saudi Arabia as well as conducting engineering and procurement work in Bahrain. The latter has been awarded an EPC contract for the offshore work. The contract for construction at the Bahrain end of the pipeline is yet to be awarded.

December 2015

The project involves the development of Villamar residential complex comprising three high-rise buildings, villas, and a series of landscaped terraces dropping towards the sea, including one-four-bedroom apartments, and leisure and retail facilities at the Harbor project. COWI has been awarded the contract to provide consultancy services for the construction work related to the project in Bahrain. COWI will oversee the construction works carried out by the contractor, ensuring its compliance with high level speciﬁcations and design intended for the project. The contractor has already started re-mobilising to the site and all inspection, equipment maintenance, remedial works have already kicked off.

TEN BAHRAIN INFRASTRUCTURE PROJECTS

EAST SITRA RESIDENTIAL PROJECT

TUBLI STP EXPANSION PROJECT - PHASE 4

AL MADINA AL SHAMALIYA SEWAGE TREATMENT PLANT PROJECT

Owner: Ministry of Works Owner: Ministry of Housing Budget: $136m Budget: $236m Progress: Contracts awarded Progress: EPC prequalification The East Sitra housing project is one of the initiatives of the Housing Ministry’s programme to build 25,000 housing units over the next four years. The East Sitra Town scheme will feature up to 5,000 housing units, in addition to service facilities and industrial zones. In April 2014, UAEbased National Marine Dredging Company (NMDC) was awarded a contract undertake the preliminary reclamation work in the land over a 30-month period. The East Sitra scheme is the first housing project to be funded by the GCC Development Programme and is an important part of the government’s plan to construct more than 40,000 houses over the next eight years across five governorates. The ground-breaking ceremony for the project took place in June 2015.

Phase 4 aims to absorb the growing wastewater flow arriving to Tubli Treatment Plant , through the expansion of the existing Plant from 200,000 m3/day to 400,000 m3/day. The project comprises of civil works to construct the new inlet of the STP, preliminary treatment structures, secondary and tertiary treatment structures for the expansion of STP, in addition to the sludge treatment units, a treated water storage tank and office buildings. Twenty five prequalification applications were received by the Ministry out which 10 groups were shortlisted by the Ministry for RFQ. Phase 4 is being funded by Kuwait Fund for Arab Economic Development (KFAED), the Saudi Fund for Development and the Bahrain Government. The project is originally scheduled for completion by 2018.

Owner: Ministry of Housing Budget: $100m Progress: Construction to commence in 2016 Indian water treatment specialist VA Tech Wabag along with its joint venture partner Belhasa Projects was awarded the EPC contract for the project. Under the contract, the joint venture will design and build a STP with a capacity of 40 MLD for Al Madina Al Shamaliya (Northern Town), a new town being developed by the Ministry of Housing. The mixed-use project, featuring 15,000 residential units will be developed over 750 hectares of reclaimed land off the north coast of Bahrain. The project is being funded by Abu Dhabi Fund for Economic Development (ADFED). VA Tech Wabag won the order against competition from nearly 17 consortiums that applied to prequalify for the project.

December 2015

INFRASTRUCTURE MIDDLE EAST

COVER STORY

Nick Chittenden, Regional Manager for BASF Underground Construction Middle East

INFRASTRUCTURE MIDDLE EAST

December 2015

COVER STORY

UNDERGROUND CONSTRUCTION

Underground innovator BASF puts the needs of engineers, owners and contractors at the centre of its tunnelling solutions ASF, a global leader in sustainable construction chemicals, showcased its products for Underground Construction (UGC) at the 3rd Arabian Tunnelling Conference and Exhibition in Dubai, where it was a main sponsor. The company showcased cutting-edge technologies from its Master Builders Solutions portfolio catering to the regional tunnelling industry. The highlights included a sprayed concrete equipment simulator and comprehensive range of solutions for TBM (Tunnel Boring Machines), waterprooﬁng systems and injection system products. BASF is contributing to 17 of 21 Tunnel Boring Machines (TBM) currently being used in the Doha Metro project. In the UAE, BASF’s portfolio of underground construction solutions has been used in the Shis- Khorfakkan and Diftah-Shis road projects. The company also provides strong logistics operations and ﬁeld support to complement its offerings. “With our local experts and our globally enriched R&D support teams, we are able to customize for our regional customer as well as the climatic and environmental conditions,” says Nick Chittenden, Regional Manager for BASF Underground Construction Middle East. As a member of the conference steering committee and session chairperson during the conference, Chittenden contributed to a panel discussion on tunnelling with industry specialists and also participated at the Young Engineers Forum, to introduce the tunnelling industry to the stakeholders of the future. In an interview with Infrastructure Middle East on the sidelines of the event, Chittenden elaborated on BASF’s value-add to the regional underground construction market. Excerpts from the interview.

How is BASF addressing the tunnelling challenges unique to the Gulf region? BASF’S involvement in the tunnelling industry is more than 20 years old. We started out by focussing on sprayed concrete when the technology was still in its infancy. The technology has, over time, transformed the way people do tunnelling. The other important aspect of BASF and tunnelling is our team, which is made up of tunnelling engineers. Our focus is on being on the same page as our customers because tunnelling involves the application of products that are used in other industries. The actual products themselves aren’t necessarily unique to tunnelling. They can be applied in numerous other ways. The reason that we are successful is that we have the right people in the right places at the right time. Would it be correct to assert that every tunnelling project is a unique project? Absolutely yes. When you are building a high-rise, for example, each floor goes on the one before it and you can see exactly what you have to deal with every step of the way. When you are going through the ground, you cannot see ahead of you as to what you are actually excavating. You don’t know what you are going to deal with from one metre to the next. In certain geological conditions, like the Karst zones in Qatar and Saudi Arabia, the geological proﬁle of the tunnel face can change within metres. In extreme cases, the face can change from solid rock to a void because, by deﬁnition, a Karst is a void in a limestone structure. That’s what makes the tunnelling industry interesting. That’s also why it very important for BASF to understand what the customers are doing to service them better. We have to have tunnelling engineers who understand that when the customer calls us and says they have a problem, we need to solve it now; not in six weeks.

What are the challenges involved in tunnelling projects in the region? I wouldn’t say just challenges; it is also about the unique opportunity to develop the potential for using tunnelling for access to remote locations in the mountainous parts of the region, especially in the UAE, Oman and the Western part of Saudi Arabia. The typical approach to constructing roads in these areas is to make huge cuts, even on the access for the tunnels. In a recent case, they had to move 40 million cubic metres of rock for a bendy road through the mountains. With some of the technologies we have to offer, in particular, the sprayed waterproofing option, the ability to build tunnels much more effectively and faster with a reduced cross section helps reduce the cost while increasing the speed. They also open up the opportunity to utilise tunnels instead of open cuts. When you do that, you also actually reduce the cost of the project and make the project viable where it wasn’t viable before as well as sustainable. We are very fortunate that we have worked with Sharjah Roads and Transport Authority and the Diftah-Shis Tunnels for a long time. We have supported them and supplied a gamut of materials, from sprayed concrete accelerators and base concrete admixtures to waterproofing and fibre re-enforcement to the grouts for the anchors. We have also established a very good relationship both with the contractors and the consultants. Are customers worried about the impact of elements like dust storms and rain? Do tunnels inspire the same level of confidence today as roads? The International Tunnelling Association (ITA) does an excellent job in promoting tunnelling as a feasible alternative, and that’s also one of the reasons why we are a strong supporter of the UAE chapter. To make the client more comfortable with tunnels, they have to be made aware of the technology that is involved. Most cases of

December 2015

INFRASTRUCTURE MIDDLE EAST

COVER STORY

rock failure that you see in the Middle East are due to weathering on unsupported slopes and cuts for roads and tunnels, and it would be the same for future railway tunnels as well. The weathering problem encountered outside isnâ&#x20AC;&#x2122;t seen with excavation in tunnels. One can

INFRASTRUCTURE MIDDLE EAST

protect the rock much more effectively with a much smaller volume of material because of the reduced internal surface area. In one of the tunnelling projects we are involved with, the customer reduced the cross-sectional area by 10% which translates to a huge reduction

December 2015

in the volume of materials taken out as well as the area that needs to be supported. For a cut project, the area that needs to be supported could be well over a million sqm for a relatively short road length; for a tunnel, it is probably only 100,000 sqm.

COVER STORY

As a solution provider, how do you help the clients work faster? The primary rock support for a drill and blast tunnel or the shafts for a TBM project is sprayed concrete. The aspects that are important to its successful application are the equipment, the materials, and the expertise to apply it. The equipment comes from our partner Atlas Copco while BASF and Master Builders Solutions supply the materials, the training and the expertise to put everything together. Together with EDVIRT, we have developed a simulator to train operators before they get on to the job site so that they are much more skilled and familiar with the operational approach. From a materials point of view, we can contribute in two areas. We can offer fibres instead of mesh for rock reinforcement. The second one, depending on the type of excavation, and the rock is the early age setting of sprayed concrete. The chemistry comes in with finding the right accelerator for the right cement chemistry to give fast enough increasing strength in order to allow faster access for the contractor back to the face and in a safe environment. However, the application of the concept of spray applied waterproof membrane can have a huge impact on the excavation schedule and handover of the project. Instead of having to go through and place temporary shotcrete lining right through the tunnel and then come through and place a PVC water proof membrane, followed afterwards with a secondary concrete lining, you can go through and place, almost concurrently, a water-proof sprayed lining. The crown is sprayed over that. The sidewalls are still cast to provide an aesthetic and safe driving and visual environment but the arch on the tunnel is sprayed. Thanks to the composite structure, it is possible to achieve a signiﬁcant reduction in the overall thickness of the concrete. The savings, in terms of money, lie in the reduced volume of concrete with even more savings in the reduced volume of excavation. It is a lot quicker and capable of adapting to whatever proﬁle is being excavated. You can think now in complete 3D; go in any direction you want when you excavate a structure underground. Most road and rail tunnels have a cross passage or smaller tunnel every 200m-300m

to prove emergency egress. These are ideally suited for spray applied waterproof membrane and spray-applied rock support because they have short lengths, variable shapes and have interaction to the main tunnel. For both TBM and Drill and Blast tunnels, the cross passages lend themselves very nicely to spray applied waterproof membranes. When you get down to the actual quality control and application, there are a lot more details to it. But that’s what we provide to the customers. We supply the material and the expertise to go with the equipment from our partner and offer a full package to the contractor. At the same time, we can offer this from a design point of view to the consultant, who can offer that as a package to the owner, which hopefully opens up more opportunities for tunnel excavation. And these opportunities would be... We should expand tunnelling concept to include underground space; for instance, every single high rise building has underground basement car parking, often three to four storeys down. That’s actually a very large diameter shaft. We can offer excavation techniques and materials to support the development of underground spaces and make them more safe and sustainable. The concept is the same, whether it is underground structures or tunnels. Is the utilisation of underground space taking off in the region? There are many reasons why underground space utilisation will continue to grow. An increase in population leads to decrease in space, and once you run out of space on the surface, you have got two options - either go up or down. If you go up for storage, that’s utilising space that people want to live in. So you go down and that’s why you have underground car parks, and taking it further, underground storage facilities for oil, water, aggregates. Highly developed countries like Singapore and Switzerland even utilise underground space for factories that require extremely clean or sterile environment, like semiconductor manufacturing or for medical research. In this region, underground space can be utilised for storage of water or agricultural produce or even strategic oil storage. It is a long-term, sustainable and durable option.

How is BASF pushing the envelope on the tunnelling side? If we consider the technology, which is moving forward, the real game changer is the sprayed technologies - the use of sprayed concrete and polymer fibres, the different chemistry for the additives in the concrete and the use of spray-applied waterproof membrane. The specifications for sprayed concrete were developed by EFNARC (Experts for Specialised Construction and Concrete Systems), which is a European organisation. Their specifications formed the basis for the European standard EN 14487, which is today accepted as the global standard for sprayed concrete. EFNARC also serves as an accreditation organisation for the Nozzlemen, who are a key link in providing high quality sprayed concrete. They train assessors to go out in the industry to train the operators who are being used to apply this technology. This links back to your question because part of the services that we supply with our people is training. The use of sprayed technology to provide safe support in tunnelling relies heavily on the operator’s skill. We have invested in a sprayed concrete equipment simulator for training, which contributes to efficiency and increased safety. We also have four locally-based EFNARC-qualified examiners to assess and certify the competence of sprayed concrete operators in the region. An operator who is familiar with the processes and the equipment he is going to use, and has sprayed thousands of cubic metres on a simulator before he gets on to a job site has a much better chance of providing a quality product to the consultant, the contractor and the client than somebody who is, simply handed a piece of equipment and told he is a Nozzleman. Instead of unskilled labour, we prefer to work with higher skilled operators who are trained, accredited and can manage themselves and their processes. Spraying concrete is moving away from being manual but it is not automated and operator skills and knowledge are paramount. You need a skilled operator to move the nozzle around, check the thickness and make a judgement call on how thick he is spraying.

December 2015

INFRASTRUCTURE MIDDLE EAST

UTILITIES

AFRICA FOCUS

Building on experience James Simpson, partner; Katharine Sonneborn, counsel; and Giulia De Michelis, associate, at the international law ﬁrm Winston & Strawn examine how Africa can beneﬁt from experience gathered in the Middle East on infrastructure and power projects

ver the last decade, Africa has, for the most part, demonstrated resilient economic performance. But, by most measures and in most regions, sustainable and affordable energy development has not kept pace with economic growth. With the rising demand for power, Africa could witness a continued infrastructure gap which presents a genuine risk to its growth. According to the World Bank, 25 of the 54 African countries are in an energy crisis. In Sub-Saharan Africa, only seven countries have electricity access rates greater than 50% meaning more than 600m people (approximately two-thirds of the continent’s population) lack access to electricity. African governments have responded with conventional and renewable energy investment growth initiatives. Such initiatives include an opening of markets to private investors, the adoption of regulations to enhance transparency and legal certainty, and feed-in-tariff schemes to promote the deployment of renewables.

INFRASTRUCTURE MIDDLE EAST

While many government initiatives have been met with great success, such as South Africa’s Renewable Energy Independent Power Producer Procurement Programme, others have not been as well received. The experience and lessons of successful Independent Power Projects (IPPs) and Independent Power and Water Projects (IWPPs) in Arabian Gulf countries and the wider Middle East over the last two decades can serve as guidance for Africa.

The Middle East took on the challenge of the infrastructure gap in part by developing IPPs and IWPPs. Both have played a major role in the electricity and water sector in the region

December 2015

The parallels are important – many parts of Africa have the same opportunities as Middle East countries had when developing their IPP/IWPP programmes, including significant economic growth, increasing consumer demand and an abundance of natural resources against a backdrop of strong interest from the international investor community. However, Africa faces a number of challenges as the Middle East has faced and overcome, such as scepticism related to political risk and perceptions of inefficiency. Clearly one model will not fit all and the variety and complexity of economic and political considerations across the African continent cannot be underestimated. Drawing on the Middle Eastern experience can make a vital contribution to the successful development of power projects in Africa. Project participants should feel confident that, with the establishment of a process which follows generally acceptable procurement standards, Africa will continue to represent a significant and exciting opportunity for the power project market. In this article we examine and consider six key lessons from our Middle Eastern experience and how they may contribute to the effective development of power projects in Africa. The Middle East: A (very) brief history of IPPs and IWPPs The Middle East took on the challenge of the infrastructure gap in part by developing IPPs and IWPPs. Both have played a major role in the electricity and water sector in the Middle East providing for significant additional generation and water production capacity in the region. Abu Dhabi alone has procured one IPP and nine IWPPs, the most recent being the Mirfa IWPP, which closed in October 2014, resulting in an aggregate of approximately $14bn of finance raised and over 14,500MW of contracted capacity. The Abu Dhabi model has also been successfully adopted, with certain variations, by other countries across the region, including

UTILITIES

James Simpson

Katharine Sonneborn

Giulia De Michelis

Qatar, Bahrain, Saudi Arabia and, more recently, Kuwait.

and IWPPs across the region, regardless of changes in commercial terms or market conditions.

In Abu Dhabi, the Abu Dhabi Water and Electricity Company (ADWEC) is responsible for the fuel supply as well as being the single offtaker of electricity produced by all the Emirate’s IPPs. No government guarantee is issued in respect of ADWEC’s payment obligations; however, the Abu Dhabi Government guarantees termination payments under the PPA. Where the creditworthiness of an off-taker presents a concern, a higher level of government support is typically required.

What lessons can be applied in Africa based on the Middle East experience? A clear, fair and consistent independent regulatory regime The Middle East experience demonstrates the benefit of having a clear and consistent independent regulatory regime which is built to respect political realities but at the same time facilitates private investment and ensures fair regulatory oversight from both the public and private sectors. For example, in 1998, Abu Dhabi issued comprehensive legislative framework, governing its power and water sectors, including a coherent regulatory regime, the provision of guidelines for the development of IPPs and IWPPs and, critically, the establishment of an independent regulator. A transparent procurement process A thorough, transparent procurement process is essential and project procurement should be by reference to specific nondiscriminatory criteria and open to appropriate public scrutiny. For example, the opening of financial bids should take place on the bid submission date and in public. A well-structured and consistent contractual template It is also important for projects to be well structured and follow a contractual template that delivers bankable projects while not requiring extensive reworking for each new development. In the Middle East, the legal contractual matrix, with the power purchase agreement (PPA) at its heart, has rigidly followed precedent through the IPPs

Bankability: Stability and strength of supply and off-take arrangements In particular, the key to success is ensuring there is a bankable contractual structure. The PPA should ensure a source of revenue over a tenor which is sufficient to ensure the repayment of the project ﬁnance loan and provide a return to investors. In this respect, the careful selection of creditworthy counterparties is one of a number of critical factors which will determine the bankability of the project. Similarly, the adequacy of the fuel supply arrangements, preferably by way of a ﬁxed price long-term supply agreement, is a key factor in determining bankability.

In the Middle East, the legal contractual matrix, with the power purchase agreement (PPA) at its heart, has rigidly followed precedent through the IPPs and IWPPs across the region, regardless of changes in commercial terms or market conditions

Bankability: Tariffs and revenue generation The tariff that the power producer can charge for the power it generates is fundamental to the bankability and ultimate success of a project. When setting a tariff, consideration should be given to realistic and comprehensive calculations of the costs of generating power and to the price which end-users are paying for the power. In Abu Dhabi, payments by ADWEC to power producers have followed a take-or-pay structure comprising a capacity payment and an output payment. ADWEC also takes the fuel supply risk by paying fuel suppliers directly for the fuel consumed by the power producers. Making use of the multitude of financing sources Projects in the Middle East have been able to mobilise and leverage a wide range of financing resources. These have included export credit agencies, multilateral financing institutions, development finance institutions (DFIs) and political risk insurance providers. All these sources, and in particular DFIs, who can supply due diligence, influence with host governments, and/or partial risk guarantees (which are likely to be essential in strengthening sovereign guarantees in countries with low credit ratings) are likely to be vital for the development of projects in Africa as well.

December 2015

INFRASTRUCTURE MIDDLE EAST 33

OIL AND GAS

ENERGY EFFICIENCY

Value in commissioning Driving energy efficiency in the oil and gas industry need not be at the cost of safety Regarding energy efficiency in the oil and gas sector, what are the fundamentals that we should be conversant with? In a refinery process, the primary processes are heat and mass transfer. When we talk about flow in the context of heat and mass transfer, the focus is on frictional losses that are created through the pipelines, the control system (the valves) and the heat exchange surfaces (like condensing or heat transfer surfaces). With liquids, we must also account for elevations during the liquid transfer. We must also consider the fact that viscosity and density of the ﬂuid and the sizes of the various exchange systems affect the energy involved in transferring the ﬂuid. The entire process is an interplay of all these components that make up elements of the system.

Sarfraz H Dairkee, General Manager, Corporate Development & Engineering, MAHY Khoory & Co.

he opportunities for efficiency are always at the interfaces of the components,” says Sarfraz H Dairkee, General Manager, Corporate Development & Engineering, MAHY Khoory & Co. Dairkee, who is a Fellow of Association of Energy Engineers, was the first candidate to be inducted into the association outside the US and Canada. He is also a Qualified Trainer for Pumping System Optimisation [from Hydraulic Institute-US] and Certified Energy Managers (CEM) course. In an interview with Infrastructure Middle East, he spoke on the scope for energy efficiency in the oil and gas industry and why the industry needs to commit to proper commissioning. Excerpts from the interview

“T

INFRASTRUCTURE MIDDLE EAST

How and where do we start to look for the opportunities to improve efficiency? The reﬁnery process is a dynamic process, and wherever there is a dynamic process, we will always encounter transients because a steady ﬂow is rare. It is very important to understand the transients – how the transients take place, their limits, their bandwidths (amplitude), how frequently it happens, in what magnitude it happens. Also, transients affect the entire process, and each and every component will respond to it in a different manner. This brings us to the importance of understanding how the various components are linked together. Generally, till now, most of the systems have been designed to operate for peak transient conditions occurring for a fraction of their operating conditions. However, growing competition and concerns about environmental footprint coupled with developments and affordability of superior monitoring and control systems are forcing a paradigm shift to improve system efficiency. The opportunities for efficiency are always at the interfaces of the components. Most of the time, partly due to training,

December 2015

one tends to think in a silo manner and as a result, ignore the interfaces. Once these opportunities are understood, it becomes easier to improve upon them through proper teamwork. Why do we get inefficient systems in the first place? There are broadly two systems in a process – a static system and a dynamic system. Examples of the former are valves, pipelines, heat exchangers while examples of the latter are pumps, compressors or systems that can move fluids. Whenever there is an interplay of the two, heat exchangers come in. When heat transfer takes place, one fluid will be heated up while another one will be gaining the heat. That’s how the interplay of different fluid systems takes place. Since all those things are dynamic, it is important to understand how all those systems are interacting with each other. And this interaction is rather complex as each and every parameter is closely linked and dynamically affecting one another. As the prime objective is to reduce risk to the minimum, the systems are designed for the worst conditions and for the highest pressure and the highest flow. When something is designed for the worst conditions, efficiency will take a back seat. To minimise the risk of failure, accident or undersupply, spare capacity is factored into the design. It not that spare capacity isn’t needed; what could further add significant improvement is understanding of interaction of various transients their frequency and amplitude and to develop an understanding of integrated system that would bring in harmony and better system efficiency. It is important to aim for convergence of ideas and harmony of the system. The more we can converge, more efficient is the system. This requires very closely knit Teamwork. The convergence can come only through proper interaction and dialogue between the teams and their ability to think beyond the obvious.

Getting different engineering disciplines to work together can be a challenge, isn’t it? The communication gap has to be narrowed down by interpreters, in this case, the commissioning authority. That person should have good understanding of different disciplines with an attitude to seeking better solutions. Commissioning of the system is more than just its start-up; it involves intimate knowledge about the processes and how they are interacting together. Every discipline speaks their own language. The role of the interpreter is to understand these languages and bridge the communication gap. Let us get specific about energy efficiency here. Why do we end up on the losing side? A pump system operates across a broad wide range operation starting from a fully open condition, where the head is zero, to give the maximum discharge to a condition where it gives maximum head. When you close the valve, it gives maximum pressure. Between maximum pressure and maximum flow, there is a point where the pump will operate efficiently. The moment it goes beyond that particular point, its efficiency drops drastically. A pump is just one part of the pumping systems comprising of pipes, fittings (control valves), heat exchangers, etc. All these systems interact differently with one another with varying system requirements. When you are putting in the pipelines, they impose their dynamics on the pump. They can get their best efficiency only for the limited range of design conditions. If the pumps are larger than required or if the flow is more than what is needed, you have efficiency issues. The head should be exactly

matching with the pump’s efficiency. If it is not matching, you cannot get it. The system is dynamic – it is rare to envisage specific and constant flow and head. So to control the variance there are valves and fittings that are designed to address the process transients. As the system has many possible links and the degree of freedom, an integrative system approach has proven to be very effective in optimising the energy usage. These aspects have to be discussed among the team members, and these will open up lots of opportunities to look into; it requires more of a different culture altogether. So far efficiency was given a secondary seat as compared to the safe operation and its ability to respond to the highest envisage peak conditions. This practice is analogous to putting a golf ball through football goal posts. But in the future, we need to be as precise as a hitting a golf ball into a hole. As requirements become very precise, without a clear focus, missing the target is a certainty. Today, tools are available to match the dynamics. In fact, looking into the dynamics has become better and easier than ever through ever-improving sensors and automation. Objectives can be defined with far more precision, and tools are available to hit the objectives with the same precision. The monitoring resolution is far more robust, accurate and precise than in the past. Earlier, it was very difficult to respond to the system dynamics and transients. Now controls are accurate and fast, and electronics can control with much shorter response time frame and far more precision. It is possible to respond to the dynamics of the system better than before, opening up new opportunities for efficiency. Can’t we design in energy efficiency right at the beginning?

The tendency is to always look for the best; not for the optimal. The law of diminishing returns apply everywhere. While choosing a pump, the focus is on choosing the best pump which gives the maximum head or response to the maximum demand with the best efficiency at that particular demand. Normally, that particular demand occurs, for example, for 8 hours out of 8,000 hours. The pump is designed to respond to the highest demand at a particular point but for most of the time, it is running nowhere near that point. Lifecycle costs aren’t given their due during the design stage. However, blaming the designers isn’t the way out because they are under tremendous pressure to deliver a robust system that can respond to the worst conditions. At that time, efficiency takes a back seat. Running the system for the entire range of operations is the primary objective, and the life cycle operation analyses demand high level of teamwork, analyses and integrations. With increasing awareness, the paradigm shift is slowly taking place. But designing an optimal system is not an impossible task provided we appreciate the life cycle costs and the linkages between the systems and disciplines. These linkages are best understood, and the languages spoken by the different disciplines are best interpreted by a commissioning entity. Commissioning is common in the green building and shipping industries. There is no reason why such a role or scope cannot be applied in the oil and gas industry as well. What would be the best measure of energy efficiency? It is important to understand that energy only gets transformed; it doesn’t get destroyed. The energy that is not used in a particular process or system will be used somewhere else. This creates turbulence, friction and losses in the system that ultimately manifest in the form of noise, heat, wear and tear and falling efficiencies. As a result, the system’s reliability takes a hit. The impact of oversizing a pump or a compressor will be felt only in the later stages. The analogy here is high calorie, fast food lifestyle; its after-effect is felt not immediately, but it takes its toll on your body slowly, manifesting itself beyond control later in life through health issues, like diabetes, and the like. Energy efficiency is, therefore, a good investment in terms of reliability and longevity of your system.

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INFRASTRUCTURE MIDDLE EAST 35

CITIES

ECOCITIES

Greenprint for future cities Anthony Mallows, Director of Masdar City spoke to Fatima de la Cerna of Climate Control Middle East at the Ecocity World Summit about the latest developments in Masdar City, aligning with the Abu Dhabi Urban Planning Council and future plans. Excerpts from the interview On the technical front, we have a 6,000 TR District Cooling plant under construction. It is the ﬁrst step in a scalable concept for District Cooling, because we’re a mixed-use dense compact development. It’s the ﬁrst unit in a scaled-up District Cooling strategy, in which we will not only own the District Cooling supply but also reverse the model, whereby the less you use, the better it works. Conventionally, the business model is the other way around. We’ve also worked together with the UPC’s Estidama team on an innovation study, which demonstrated that as a result of the limited amount of recycled water available, it was more sustainable for us to use the available recycled water for irrigation rather than for District Cooling, which will, therefore, use potable water. We’re going to monitor very closely to see how much more efficient we can be when it comes to the total energy usage of creating cooling.

ould you bring us upto-date on Masdar City? And what are the projects in the pipeline? We’ve recently reﬁned the masterplan and are now completely aligned with the Abu Dhabi Urban Planning Council (UPC) requirements in our development strategy and masterplan. Masdar City’s aim of creating a leading hub for innovation, where people live, work and play, also entered a new phase earlier this year with the announcement in April of a new one- and two-bedroom residential complex. The mixed-use project, Neighbourhood 1 – of which completion is expected in Q1 of 2018 – is an important step forward toward completing the ﬁrst integrated

INFRASTRUCTURE MIDDLE EAST

neighbourhood and the vision of Masdar City as a complete ecosystem focused on sustainability and innovation. We’ve also successfully, completed Phase 1 of our detailed masterplan, which includes approximately 1.25m sqm of development. We’ve built about 150,000 sqm of buildings that form the first cluster, and we have three times that number either under construction, under design or in planning, to complete the first phase. That comprises the Masdar Institute, as well as the market-rate housing and apartments, and the completion of the first truly integrated neighbourhood in Masdar City. Also, early next year, we will be launching the second neighbourhood. There will be a total of eight residential neighbourhoods and three commercial and institutional neighbourhoods to make up the whole of Masdar City.

December 2015

Would you describe District Cooling as an experiment, perhaps in the same vein as the podium*, which, I understand, will no longer be integrated in new developments? District Cooling is another example that shows how Masdar City is being developed as a “greenprint” for how cities of the future should be built. Cooling is a big energy user, so we need to ﬁgure out how efficiently we can do it. Our building design guidelines aim for very high sustainability standards. For instance, the buildings we have developed consume, on average, 40% less water, cooling and energy than other similar buildings, through both sustainable strategies and passive sustainable approaches to design and planning. The idea behind District Cooling being an experiment, like the podium being an earlier experiment, is that the whole city serves as a test bed for building cities of the future,

CITIES

Estidama as well as good planning practice. We integrated a third layer, which is Masdar City’s sustainability guidelines. There are, in fact, nine criteria or nine elements** to sustainability that we layer in, over and above the development regulations and the design requirements. And then, we work very actively with the third-party developers, to help them, at no extra cost, to produce a building that outperforms the minimum 1 Pearl requirement. We have in Masdar City a minimum of 2 Pearls for any developer, but we help them achieve 3 Pearls, by assisting them in their design and development process. We are targeting above 3 Pearls for our own developments, and we’ve achieved that in both the Siemens building and in the IRENA Headquarters.

because technology changes so fast. The podium was a concept based on what was then already a fact – that mobility, especially private mobility, produced CO2, because cars burn fossil fuels. We now have electric cars. We even have a technology that develops hydrogen fuel cells for vehicles that make electricity, but with water as the emission. So the podium, as the platform under which the city’s transit system would have been operated, is not going to happen throughout the whole city, but we’re still deploying the existing driverless, carbon-free PRT (personal rapid transit) pods. People are suggesting the possibility of the UAE again encountering economic challenges. In the event of a repeat of 2009, would you say that Masdar City is better prepared owing to its new ﬁnancial model? Yes, I think we now have a much more robust development concept, which is less susceptible to ﬂuctuations in the real estate market, and to what happened in 2009 and 2010, particularly with regard to our value proposition – not only is location important but also the operating costs for entities to come in. The other advantage is that we now have a critical mass of tech companies located in Masdar City Free Zone. There are now over 350 companies, and that number’s growing rapidly. We are building a community of tech companies that have the advantage of being in a free zone. But we’re also an investment zone. So commercially viable corporate tech companies are choosing to locate in Masdar City. And their R&D work is linked to the work that is being done at Masdar Institute. As our CEO, Dr Ahmad Belhoul, says, we have created an ecosystem of innovation in Masdar City, which is about not only the built-environment but also the community of knowledge. Masdar City is generally described as a community, a neighbourhood. With both being primarily about people, how do you ensure the comfort and lifestyle of the building occupants, while still retaining Masdar’s concept and character of being a sustainable city? About 10 years ago, people thought that the way to reduce the energy demand of buildings was to make them very tight and to re-circulate and reuse air. At Masdar City, we go beyond this. What we look at is the total

Anthony Mallows

performance of the environment, with people in it, and then we look to optimise it. One of the sustainability measures we use is the environmental productivity of inhabitants. We don’t optimise the air conditioning or the light standards for energy itself. We’ve created an integrated approach, so the inhabitants are happy, productive and motivated, and then you get a far more sustainable environment. We do so by constantly monitoring the indoor and outdoor environment through the use of sensors. Then, learning as we go, we harvest that information about building performance, so that the next building we build is even more responsive to its environment. While some of our buildings, such as Siemens and IRENA Global Headquarters, are air tight – in other words, there are no opening windows – and the buildings use recirculation with heat recovery, the indoor air quality is monitored so that the volume of makeup air, dealing with air quality, for example, is in fact, optimum. This is not only from an energy point of view but also from a productivity point of view, of the employees and the residents within. Other than Siemens, more companies will surely come in to set up their facilities. Do you have certain standards that you present to them as requirements to be followed, before allowing them to establish a building or facility in Masdar City? Working with UPC, we developed, as we went through our detailed master planning process, certain design requirements and development regulations. They are based on

So, you are designing according to Estidama standards and not LEED? LEED and Estidama are slightly different. We believe Estidama is more comprehensive. However, LEED is better known globally, so we rank, assess and measure all our developments using both rating systems. For instance, while the Siemens building is LEED Platinum, in Estidama terms it’s a 3-Pearl building. On the other hand, the IRENA Headquarters was awarded a 4-Pearl Estidama rating. Estidama’s Pearl Rating System and LEED are not actually aligned; so we apply both. By doing that, we’ve come to realise that there are distinct advantages to the Estidama system. We also use Estidama for our master planning, and our ﬁrst detailed masterplan, not yet rated, aims to achieve a 4-Pearl community rating from UPC. It is not only with buildings and infrastructure that we push for a high rating; the basic plan itself has that high standard. And we want to share that with the world, so that they can come to appreciate Estidama.

Footnotes: *Masdar City’s streets rest on a podium, beneath which runs a PRT system. **(1) Energy consumption, (2) renewable energy provision, (3) interior water use, (4) exterior water use for landscaping, (5) construction waste management, (6) operation waste management, (7) embodied carbon in materials, (8) sustainability rating system and (9) building performance monitoring

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ANALYSIS

PEAK DEMAND

Record year Over $65bn in power contracts awarded throughout the MENA region ajor power contracts worth over $65bn were awarded throughout the MENA region between September 2014 and September 2015, according to MENA Power 2016 from MEED Insight. More than 22% of these contracts are represented by the Gulf Cooperation Council (GCC) states. Approximately 87% of the total power investments have been channeled into generation projects and the remaining 13% into transmission systems and distribution systems. The report estimates that installed generating capacity across the 14 countries analysed needs to rise by 143,221MW by 2020, an increase of about 50% on the current level, to meet demand forecasts. Author of report, Andrew Roscoe, MEED’s Power & Water Editor explained: “While several governments have taken steps to reform subsidies in an attempt to curb consumption in the wake of lower oil prices and rising subsidy bills, there can be no let-up in the drive to build new capacity to cope with the additional demand and restore reserve margins to at least 15%.”

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Key factors driving up the demand for power include robust industrial growth, rise in population and increase in housing and essential infrastructure investments across various sectors. In the GCC, peak demand growth averaged 8.4% in 2014, while for the entire MENA it was slightly higher at more than nine per cent. Looking ahead, the largest requirement for power will be in Egypt, where an estimated 27,985MW of new capacity is needed as a result of its fast growing population. While Saudi Arabia and Kuwait will require additional capacity of 20,239MW and 5,758MW respectively, the actual new build requirement will be much higher because of the need to replace or upgrade existing units on account of age. “With some of the region’s governments facing the prospect of doubling generation capacity by 2020, a key challenge will be securing ﬁnancing to cover the signiﬁcant investment required,” said Roscoe. “Governments are increasingly looking to the private sector to share the burden of the billions of dollars of capital investment needed.” Egypt plans to procure 54GW of generation capacity by 2022 as part of a wider

December 2015

energy strategy, which includes targets to diversify fuel supply, expand the country’s transmission and distribution networks and improve energy efficiency and power sharing. The planned additional capacity will include 21GW of oil and gas power generation plants, 12.5GW of coal-fired power facilities and 2-4GW of nuclear power. Saudi Arabia will see the demand growth up to 2030 will average 5 per cent a year as a result of population and industrial expansion. Including under construction projects, it plans to add 47,711MW of generation capacity to the grid by 2024. To meet projected demand, Kuwait government has drawn up a programme to install about 17,100MW of new capacity by 2030. About 4,500MW of this will be procured directly by the MEW, and some 8,400MW through partnerships with the private sector As discussed in the report, faced with a shortage of readily available gas supplies, governments are turning to alternative energy to bolster capacity-building programmes. The GCC’s first nuclear power plant is nearing completion in Abu Dhabi, with Egypt, Jordan and Saudi Arabia also planning major nuclear power programmes. Dubai and Egypt are set to join Morocco in adding coal-fired power plants to their generation mix, while Jordan is exploring oil shale as an option. A key feature of the report is the emergence of renewable energy into the region’s power sector. “The year 2015 will be remembered as the year renewables finally made a breakthrough on a large-scale in the MENA region,” said Roscoe. In January 2015, Dubai propelled itself onto the global stage with the award of a contract to Saudi Arabia’s ACWA Power to develop a 200MW project at its Mohammed Bin Rashid Al Maktoum Solar Park. What makes the deal of particular significance, other than its size, is that the tariff price of 5.85$cents a kWh is the lowest ever for a large-scale photovoltaic solar project in the world. Dubai quickly followed this up with a tender for an 800MW solar PV contract. In addition to a large independent water and power project (IWPP) programme, Kuwait is also planning to integrate renewable energy into its power sector.

ANALYSIS

GEOPOLITICAL SHADOW

Downbeat outlook Construction industry survey reveals sharp drop in optimism, longer payment periods, less favourable contract conditions and rising disputes as market conditions harden snapshot of opinion from the GCC’s construction sector – the majority of which are companies involved in larger projects with a value of over $27.23m – has shown a dramatic drop in optimism over the last year. Pinsent Masons’ Annual GCC Construction Survey, which was presented to representatives from the industry at the international law ﬁrm’s recent Annual Construction and Engineering Law Conference, shows that just 32% of respondents are optimistic about the year ahead. This compares to 77% stating that they were optimistic about 2015 when asked the same question a mere 12 months ago. This sudden shift in sentiment is consistent with the industry’s responses to questions about order books, contract conditions, payment periods and disputes, which are all less positive than a year before. 16% of those surveyed said that their 2016 order books had declined by over 10%, which compares to just 4% who said the same thing a year earlier. Asked about contract conditions, 93% of businesses said they had become less favourable during 2015, representing a 14% increase on a year earlier. In addition, 95% said payment periods were longer this year, and 60% said they were involved in more disputes during 2015 than had been expected before the year started. The results are indicative of a hardening economic environment as the construction industry, like many others, grapple with the impact of ongoing low oil prices, simmering geopolitical tensions in parts of the MENA region, and a general concern related to emerging markets from many global investors.

Optimism surrounding Saudi Arabia saw a pronounced decline. Asked what country will provide the strongest growth opportunity in 2016, just 12% stated Saudi Arabia, representing a substantial drop from the 40% of respondents who believed it would be the strongest market during 2015. In contrast, a growing portion of the industry now views Qatar as offering the strongest regional opportunity, rocketing up in positivity from 14% of respondents last year to 33% in this year’s survey. The UAE is considered the strongest market opportunity in 2016. By sector, real estate saw the largest single reversal in sentiment, with 26% of those surveyed considering it to offer the strongest commercial opportunity next year, falling from 48% of respondents the year before. This may be due to the uncertainty around oversupply in places like Dubai in particular. TENTATIVE FORAYS Away from the GCC, the construction industry remains tentative towards Iran and India, with only 40% and 42% respectively pursuing opportunities in these countries. This may simply be due to a wait and see approach being adopted for Iran, as sanctions have not yet been officially removed. However, the India result is surprising given the historic trade links between the GCC and India, the strength of the economic growth being seen there, and the recent promotional visit of Prime Minister Modi to the UAE. Similarly surprising was the survey result on public private partnerships (PPPs). Two thirds (67%) of the industry stated that they are not currently involved in, or anticipating to be involved in, PPP projects over the next 12 months. With the ﬁscal environment under pressure across all the oil exporting economies of the region, a far healthier result around PPPs was expected.

Sachin Kerur, Head of Middle East Region at Pinsent Masons, said: “This is the sharpest annual decline in optimism our survey has seen, and there is no doubt that economic and geopolitical concerns are playing heavily on people’s minds. It would seem that good fundamentals in many places are being obscured by the role that politics is playing. However, it is possible that as these issues lift there could be just as a swift a return to positivity. “Nowhere in the region is falling optimism as pronounced as it is in Saudi Arabia. This is to be expected given the challenges the country is facing and the central role oil maintains in its economy. Despite this, there is a general sense amongst the industry that if the current financial squeeze can deliver greater diversification of the economy, Saudi Arabia will remain a highly attractive market. Indeed there have been some positive diversification measures discussed in the Kingdom, which if implemented should enable greater private participation in the economic development of the country. Meanwhile, in Qatar, they are benefiting from a natural bounce as the World Cup edges closer. “The lack of anticipation of more PPPs was a surprise, on account of the ﬁscal challenges facing many countries in the region. These arrangements could offer a favourable solution for numerous major infrastructure and construction developments, and there have been legislative changes made to make them more accessible and attractive. It may well be that the private sector still believes more reform is needed before PPPs become mainstream. “The majority of the GCC construction industry is hesitant around pursuing opportunities in Iran and India. A cautious approach is always advisable when entering new markets, particularly ones that have been subject to sanctions. However, India is one of the few countries in the world to show strong economic growth and businesses located in the Gulf are ideally suited to access the country. I would encourage them to be more proactive on pursuing commercial opportunities in India, providing the right level of due diligence is conducted.”

December 2015

INFRASTRUCTURE MIDDLE EAST

SOLUTIONS HUB

PRIMARY MONITORING

Switchgear diagnostic system from Eaton Innovative temperature diagnostic system improves reliability and availability of switchgear aton has launched the ﬁrst diagnostic system that provides permanent temperature monitoring of the critical areas of switchgear systems. Building on its low-voltage switchgear expertise, the power management company is helping reduce the risk of plant shutdowns through continuous temperature monitoring of vital system components and the generation of alerts in the event of imminent system overload. The system analyses behaviour in various operating conditions, generating valuable

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information on switchgear capacity. Using this information, system upgrades can be implemented at signiﬁcantly less risk. The diagnostic system is suitable for all kinds of primary distribution systems - in particular for switchgear that conducts high currents, is housed outdoors or in containers and for facilities in which extensions or alterations are anticipated. With this new technology, Eaton supports machine and panel builders in signiﬁcantly improving the reliability, availability and service life of their electrical systems. The diagnostic system consists of autonomous temperature sensors that are placed at critical points in the substation and

December 2015

wirelessly transmit a temperature reading to a controller every ten minutes. The data is then stored in the controller and can be displayed graphically when needed or called up for detailed analysis. The controller uses special firmware to display the thermal behaviour of the switchgear. It can be easily connected to SCADA systems. The diagnostic functions include, for example, parameter checks as well as the generation of trend analyses. If pre-determined thresholds are exceeded, an alarm message is generated and sent to the monitoring station. “Overheating is one of the biggest risks posed by switchgear. Intelligent temperature monitoring in the switch cabinet not only reduces potential hazards to personnel and equipment, it also reduces long-term operating costs,” explained Bernhard Gegenbauer, Product Line Manager at Eaton. “The new diagnostic system offers significant advantages over the established market solution of using thermography. First of all, because it provides continuous monitoring and detection of hidden or hard to reach places in the cabinet, it’s able to offer a much more accurate picture of the thermal behaviour of switchgear systems. Secondly, the diagnostic and alarm features provide for better risk management. An investment in this innovative diagnostic system pays for itself within a short period of time.” The autonomous temperature sensors used in the diagnostic system can be easily mounted on the busbars or junctions to supply themselves with energy independently through the rail’s electromagnetic field. This technology can provide temperature measurement and data transfer with as little as 50 A of current. The system is completely maintenance-free and is ideal for places such as busbar compartments that are inaccessible during operation. The measured values are transmitted reliably via wireless technology at 2.4 GHz in accordance with IEE standard 802.15.4 either directly to the control system or to the controller’s Linux-based server. Wireless data transmission across multiple fields minimises installation and configuration costs. Moreover, the busbar compartment remains clear of the potential hazards that may occur when using conventional sensor wiring. Since each sensor is separately addressable, direct implementation in SCADA systems is supported.

SOLUTIONS HUB

UNIFIED PLATFORM

Honeywell launches alarm and operations management technology Next generation solution reduces alarms by up to 80% to improve operator effectiveness and plant safety oneywell Process Solutions (HPS) has introduced its new DynAMo Alarm and Operations Management software to help process industries better manage operations and alarms. DynAMo, which combines Honeywell’s alarm management software with its operations management software, delivers operations integrity through better plant safety, availability and compliance. The new solution provides a single uniﬁed platform and user experience for all operations integrity functions. It is also a scalable offering that allows customers to start with simple Alarm Management or Operator

Logbook and adding other functions over time to enable a fully integrated Operations Integrity solution. “With more than 2,500 installations in more than 750 sites worldwide, DynAMo’s large installed base demonstrates unparalleled customer confidence in a product that offers a wide range of field-proven benefits for a fast return on investment,” said Tyron Vardy, product director, HPS Advanced Solutions business. “It can reduce alarms by up to 80%, and reduce root cause analysis time by 60% over conventional methods. It can also increase throughput by up to eight per cent and cut energy consumption by up to five per cent, with a typical return on investment of less than three months.” “Alarm management concepts have been

around for decades to help operators see pertinent alarms more clearly. However, the goal isn’t about reducing alarms. It’s about getting to the right decisions quickly,” said Mark Sen Gupta, senior consultant ARC Advisory Group. “By integrating alarm management with operations management, this new solution from Honeywell should help reduce one of largest causes of incidents in the process industries: operator error.” DynAMo is one of HPS’ many technologies that are ready to be integrated as part of Honeywell’s industrial Internet of things (IIoT). DynAMo is now enabled by Honeywell Pulse, a new mobile application that allows users to remotely monitor critical alarms or events. Honeywell Pulse sends customised, real-time plant performance notiﬁcations to a users’ smartphone and provides connectivity and collaboration tools to assist with issue resolution. DynAMo is vendor neutral, working with any vendor’s control system in addition to Honeywell’s Experion distributed control system (DCS) platform. DynAMo Alarm and Operations Management was developed from Honeywell’s deep experience supplying the world’s largest installed base for operations management. It is a comprehensive set of software enabling best-in-class operational management, with rigorous compliance to global standards for alarm management and integrity operating windows, including API 584, EEMUA 191, ISA 18.2 and IEC 62682. DynAMo’s uniﬁed and scalable solution is designed to solve any site’s alarm and operations management issues. Functions of the full solution include advanced alarm management metrics, master alarm databases, integral DCS operator alarm help, operations monitoring for integrity operating windows, limit repositories and smart electronic shift logs for secure shift handover processes – all seamlessly linked together to drive operational excellence. It also leads the industry in mobility, so getting the right information to the right people inside or outside of the control room has never been easier. As a result, users have experienced increased throughput, reduced outages and safety incidents, plus improved equipment reliability, lower maintenance costs while drastically reducing operator errors and oversights at critical shift handovers.

December 2015

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EXECUTIVE INSIGHT

Darius Khanloo

“We like to position ourselves as a high-quality manufacturer with a fair price strategy”

Constant innovation Darius Khanloo, Managing Director, Hormann Middle East links the business of doors to the long term growth prospects of the construction sector n general, 2014 and 2015 were good years for projects. We won many new projects as well completed projects. For the next 3-4 years, the construction sector will remain very strong with new developments in the pipeline. Due to the upcoming Expo 2020 and 2022 FIFA World Cup, I see strong chances of increasing our market share especially in the UAE and Qatar. By setting up and investing a substantial amount of money in our business here, our vision is to be a strong market leader in the Middle East. Although we are a family business, we never look to make a short-term proﬁt; we rather invest with a long-term perspective to maintain business relationships with a futuristic outlook. Even if we produce the products in Germany maintaining our high-quality standards, we are able to set a reasonable price with a short delivery term. We like to position ourselves as a highquality manufacturer with a fair price strategy for small, medium as well big projects.

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Rather than the size of the projects, what matters to us most is to hold on to our name and reputation in our area of expertise. We are constantly innovating to procure new advanced technology with our products. Our specialised factories are one example of how Hormann is focusing on technology to develop new product and cater to the emerging markets. We always improve our products range and features to meet the customer requirements and the changing market demands. Each door type is certified according to its use. Our thermal door, for example, is tested, and we can provide an accurate U-value to prove the efficiency of our doors. The same applies with our fire rated doors that are all certified according to the standard they follow. All our certificates are always available for the customers to see. Hormann’s expertise in fire protection is not just restricted to Germany. Several designs correspond to the ‘British Standard’ or ‘European Standard’ which proves Hormann’s expertise in fire protection. We have recently launched our new ALR 67 for the industrial sector. For ALR 67 Thermo, the aluminium profiles have a thermal break

December 2015

and offer optimum thermal insulation while letting in the maximum of natural light. The ALR 67 Thermo with optional climatic glazing and ThermoFrame decreases the thermal insulation value by approximately 55 % to up to 1.6 W/ (m2·K) in comparison to the ALR F 42. The ALR 67 Thermo Glazing is especially suited for heated sales areas. The aluminium proﬁles have a thermal break and offer optimum thermal insulation while letting in maximum levels of natural light. The ALR 67 Thermo Glazing with optional climatic glazing and ThermoFrame decreases the thermal insulation value to a maximum of 1.7 W/(m2·K). This helps save valuable energy. Our team is established to guide the customer to his actual requirements. It is not always a pre-requisite that customer knows what they actually require and this is why our team is fully trained to educate and provide the right product for each project. At Hormann, we provide all products from one source, and that makes a big difference in terms of quality and service. All our components are tested for compatibility, so we are able to offer a full turnkey solution to our customers.

INFRA PEOPLE

Bentley Systems honors Peter Blake of Hatch

Point of View

Bentley Systems has presented Peter Blake, Director, Project Delivery Group for Hatch Chile, with its Lifetime Achievement Award. The award was presented to Blake at Bentley’s annual Year in Infrastructure 2015 conference in London. Blake, who has served Hatch for more than four decades, was recognised for his exceptional vision, numerous career achievements, leadership, and effectiveness as a change agent, having tirelessly advocated throughout his career for improving infrastructure work-ﬂows through the better application of advanced technologies. Jim Yong Kim, President, World Bank Group

dmg events’ new VP of energy division dmg events, an international exhibitions company, has promoted Jean-Philippe Cossé to the position of Vice President for the company’s Middle East and Asia Energy Division. Prior to his promotion, he served as the Event Director for the company’s leading oil and gas event, the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC). In his new role, Cossé will oversee ADIPEC, Middle East Heavy Oil Congress, and the Middle East Reﬁning & Petrochemical Conference along with oil and gas publication ‘Pipeline Middle East.’

thyssenkrupp Industrial Solutions appoints new CEO for MENA area The thyssenkrupp Industrial Solutions business area, a leading provider of engineering, construction and service for industrial plants and systems, has appointed Boris van Thiel as the new CEO of the MENA regional cluster. Prior to that, he was the Head of Business Development MENA in the Process Technologies business unit. “To achieve growth in a heterogeneous MENA market subject to sharp ﬂuctuations, we need to set priorities for markets, portfolio segments, customers, staff requirements and office locations,” said van Thiel. “Via a network of local partners and our existing offices in Qatar, Saudi Arabia, Egypt and Morocco we can respond

quickly and ﬂexibly to customer inquiries. By establishing implementation hubs in Egypt and Saudi Arabia we are continuously improving our regional competitiveness.” In ﬁscal 2014-15, thyssenkrupp Industrial Solutions generated sales of $1.76bn in the MENA region.

We’ve come together in the shadow of an undeniable truth: We simply cannot afford to continue polluting the planet at the current pace. Unless we drastically cut emissions and do more to help countries adapt, the effects of climate change could push an additional 100 million people into poverty by 2030. The most direct and certain path to zero net carbon emissions before the end of the century is through carbon pricing. Carbon pricing is critical for reducing emissions, preserving our environment, and protecting the most vulnerable as my fellow convener of this panel, Christine Lagarde, would say if she were here today. The world has made great progress on the carbon pricing agenda in a remarkably short period of time. Some 40 national governments and 23 cities, states, and regions are now putting a price on carbon. Many others governments are reforming energy prices, and about 400 companies report using a voluntary internal price on carbon; this is three times higher than last year. As Chancellor Merkel has said repeatedly, the more governments that put a price on carbon, the more we will realise the efficiencies, and the more we will create the market incentives necessary to catalyse a transition to a low-carbon economy. (Excerpted from the speech made at the Heads of State Carbon Pricing Media Event in Paris last month)

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EVENT REPORT

ContextCapture enables production of reality models of any size that are optimised for Web publishing

MODELLING TRENDS

The WOW factor Cool technologies for infrastructure delivery from Bentley Systems’ Year in Infrastructure 2015 conference eality modelling, conceptioneering, BIM in transportation – the list could go on but in an event as dynamic and content rich as the Year in Infrastructure conference, the annual ﬁxture put together by Bentley Systems, getting to grips with the information iceberg is easier imagined than done. The delegate is hard pressed to choose between industry brieﬁngs, advancement insights, keynotes and case studies presentations. The Year in Infrastructure conference is an annual gathering of leading executives in the world of infrastructure design, construction, and operations to discuss the technology and business drivers shaping the future of infrastructure delivery. At the industry Briefing on Road and Rail at the 2015 edition, there were no dearth of ‘wow’ factors as senior executives enthralled the attendees with live demonstrations of the possible, from

INFRASTRUCTURE MIDDLE EAST

building highly quality 3D models out of digital photos to animating infrastructure environments with traffic simulations, active characters and wind-swept plants to bringing geotechnical data into Building Information Management (BIM). Also, on display was the roll out of the CONNECT edition across the portfolio of products and solutions for the road and rail sectors. A key message coming out of the briefing was that Bentley Systems is working very hard in integrating everything it does to ensure that client experiences a common data environment, from concept to final visualisation, without needing to translate or recreate data. The key differentiator for Bentley is the connectivity of its products and information mobility. Excerpts from the briefing: COST EFFECTIVE REALITY MODELLING How do you get started on a project when you have nothing? What is the quickest way to get

December 2015

started on a project? Perhaps, all that you need is a digital camera? Take a photo and build a high-resolution 3D model out of it with a little help from Bentley System’s new ContextCapture software. The camera can be an iPhone all the way to a high-end Photogrammetry system to cameras mounted on Unmanned Aerial Vehicles (UAV). The ContextCapture software generates a detailed reality mesh incorporating the referenced photography. This results in a navigable 3D model with ﬁne and photorealistic detail, sharp edges, and precise geometric accuracy. These highly detailed models can be of virtually any size or resolution, from a small object like glass up to an entire city, and can be created much more quickly than with traditional methods, and at much less cost. Once the models have been built, they can be quickly and easily viewed on any desktop or mobile device and are useful for infrastructure design, construction and operations. Through reality modelling, observations of existing conditions are processed into representations for contextual alignment within design modelling and construction modelling environments. ContextCapture offers a new and versatile way of capturing reality to serve as the context for design, monitoring, inspection, and surveying processes.

EVENT REPORT

CONCEPTIONEERING Sometimes, projects start out as a concept. When the concept is also part of the bidding process, a lot of design work is required, which in turn requires people with strong engineering background and training. Of course, there is a cost involved in terms of investing time, resources and multiple design tools for what is essentially a preliminary stage of a project. In other words, the conceptual design requires a lot of effort, complexity, and investment. The solution lies in conceptioneering, whereby engineers can balance the demands of creative designs with the financial, environmental, and engineering performance requirements of modern infrastructure projects. Bentley Systems’ new OpenRoads ConceptStation CONNECT Edition provides conceptioneering whereby throughout the project, users can explore design alternatives through optioneering, applying engineering analyses to improve decision making. Conceptual design workflows would take weeks as each concept had to be designed and involved collaboration with different disciplines, like drainage or utilities. Engineers can explore preliminary design options, leverage functional component catalogues, optimise project performance, and rapidly make decisions in the pre-bid phase to avoid costly errors. They can evaluate designs and associated costs faster and more easily since everything is available inside a single product. The design workflow takes full advantage of reality modelling – to enable engineering in context, including reality meshes from ContextCapture software, and then to enliven the engineered environment through LumenRT software by including moving traffic and dynamic landscaping. The engineer can geo-reference the actual location, grab GIS data, place the road, determine the road class, design speed and lane marking, put in the city furniture including lighting and moving vehicles. With OpenRoads ConceptStation, weeks can be reduced to days. In other words, you can design a number of conceptual roadway designs in the morning, show the product manager the rendered aspects in the afternoon so that they can take a decision and take the concept in your laptop to the client next day to show them. So great concepts for roads with cost estimates. But what about the folks at the site?

SITEOPS CONNECT EDITION Bentley has launched the CONNECT Edition of SITEOPS, a cloud service for conceptual and preliminary site design. SITEOPS enables users to parametrically optimise site designs and includes 3D terrain models putting all planned infrastructure into positional context, the layout of buildings; parking lots and access routes; utilities; grading and drainage plans; and detailed cost estimates. To use SITEOPS, engineers upload a digital terrain model of the proposed site and enter design requirements such as building footprints, parking requirements, setbacks, roadway parameters and other constraints. SITEOPS weighs hundreds of thousands of options, and provides the grading and storm water drainage plan that meets the speciﬁed design constraints and is cost-effective. The number of possibilities considered, and, therefore, the most effective solution, would simply not be possible through the use of manual design alternative methodologies. Work that may have taken days previously can now be completed in a few hours. The new CONNECT Edition of SITEOPS enables sharing of i-models or PDFs through Personal Share, a new CONNECT Edition Cloud Service; the SITEOPS Documentation Centre helps users progress conceptual designs to ﬁnal deliverables while integration with LumenRT helps create realistic site visualisation by adding seasonal trees, moving vehicles, animated characters, windblown skies. A common data environment means one can do the data acquisition directly from SITEOPS, bring in the alignments or the surface information, making it seamless for the user to take the data from napkin to the dozer. After site and road concepts, how about some geotechnical work?

Bentley technology enabled HDR to deliver Texas’ first modern streetcar system

GINT CIVIL TOOLS Bentley Systems’ geotechnical product gINT has worked well for data acquisition, reporting and analysis of geotechnical data. With the new gINT Civil Tools, Bentley is taking gINT into BIM by integrating gINT with its civil design products so that geotechnical data can be incorporated into civil design workflows. gINT Civil Tools provides a collaborative environment for taking conceptual design, developing the drilling plans and site layouts for geotechnical work on into 3D modelling and subsurface terrain models. gINT Civil Tools incorporate gINT databases into engineering workflows with 2D mapping data, 3D geotechnical data, and 2D profile views. The user can manage subsurface data with data management tools for data acquisition, validation, queries, reporting, and data sharing The engineer can start with the conceptual layout, take all the strata information to model the stems, the boreholes or piles, and to extrapolate the actual subsurface terrain. He or she can also visualise virtually any type of subsurface geotechnical report. Whether one is doing roadways or bridges, conceptual or preliminary design or detailed design, gINT Civil Tools aims to increase productivity and data quality with data integration and information sharing between geologists, geotechnical engineers, and civil engineers. The result is streamlined processes for subsurface reporting of field explorations, lab testing, and more. gINT Civil Tools is fully integrated with OpenRoads and allows users to work with a gINT database to query and display the geotechnical data. Users can generate surfaces from borehole data as well as display and label boreholes properties and values BIM ADVANCEMENTS FOR TRANSPORTATION Managing the information throughout the workflow - from concept to reality - is key through planning, design and construction, onwards to operation and maintenance. UK’s Highways England and Network Rail are great examples of where the information is being used during operations and maintenance to make more informed decisions and save money. A case study discussed was that of UK’s Track Access Services (TAS) working for

December 2015

INFRASTRUCTURE MIDDLE EAST

EVENT REPORT

Network Rail on the Cross Rail project. TAS was required to create a set of ‘as is’ information on Crossrail West’s 60-km route, including coordinated video and 3D asset information. This was to be delivered to Network Rail to be able to develop a detailed design for that stretch of track. TAS was able to collect 60km worth of information using train mounted laser and video equipment in just two hours. More importantly, they were able to do that without taking possession of the track. Track possession involves a whole lot of administrative effort upfront; it involves taking possession of the track and closing it to traffic so that personnel can go to the site in a safe manner. TAS was able to accomplish the job without taking possession of the track because their vehicle could be threaded into the existing train time table. The savings for this project alone are estimated at $355,000, roughly a quarter of the typical cost of static laser scanning, which previously was considered to be the only viable alternative. With three further surveys required on this section, the potential savings on this project are estimated to be around a million dollars. NEW CAPABILITIES IN OPENROADS OpenRoads was introduced in 2012 as a set of capabilities embedded in InRoad, GEOPACK and MX product lines. The new OpenRoads CONNECT Edition combines InRoad, GEOPACK and MX to form a single roadways design product along with a lot of innovations. The new product has a brand new user interface; contextual layouts; performance modelling gains that leverage core capability in multi-threaded, multi-core hardware; functional components tied to Bentley’s catalogue services [ a non-linear world like street furniture, utilities, lighting, signage, gantries]; and documentation centre for producing ﬁnal deliverables. OpenRoads CONNECT Edition also comes with tremendous data acquisition capability data can be used from almost any source and linked with any design object - to kick start the project. Users also have the power to use the auxiliary information associated with the geometry like user-deﬁned properties and costing information. The new product also meets the challenging and changing deliverables

INFRASTRUCTURE MIDDLE EAST

TAS, Network Rail, Crossrail Laser Positional Video Survey for Crossrail West

gINT Civil Tools allows users to display borehole stems in 3D and combine with other data

requirements of models and drawings for submittals, construction, mobile and scheduling simulation. The product will be made available for general access in December 2016. OpenRoads Navigator app is a new mobile app that provides civil and transportation professionals an easy-to-use, dynamic app for quick access to civil design information in the field. Users can view, analyse, and enhance a wide variety of project information, including terrain, 3D models, and 2D topographies. It is also GPS aware – if the models are geo-coordinated, the detailed or conceptual design can be taken into the field and calibrate it to the actual project site and do a walk-through. It has linear referencing functionality with station and offset. Field workers will be able to use the app to associate design elements with pay item tracking for field inspection With the Personal Share; designers can publish engineered models directly to the cloud for quick and easy access within OpenRoads Navigator while in the field. The app is available on Apple Store and Google Play for download. ADVANCEMENTS FOR BRIDGES At the heart of BIM is nurturing the information and fostering the use of that

December 2015

information upstream and downstream for different stages of the project and asset lifecycle. In the case of bridges, BIM applies to design to fabrication to construction, onsite as well as offsite, asset performance for maintenance and operations, integrating all the information from the different disciplines – designers, alignment engineers, and structural engineers – to deliver the benefits. When HDR was appointed to deliver Texas’ first modern streetcar system as lead designer for Dallas Area Rapid Transit (DART), the multi-million dollar project’s most important and costly segment, was the single-track, bi-directional streetcar alignment, along the historic Houston St. Viaduct Bridge. The plan was originally designed over a century ago in anticipation of the service but was not fully realised until the Dallas Streetcar project. The project links Dallas Central Business District with the walkable, mixed-use Oak Cliff area. HDR created a virtual design office, connecting 70 professionals across 18 offices using ProjectWise, enabling real-time decision making and a schedule reduction. IMMERSIVE MODELS Infrastructure professionals need no longer become computer graphics experts to integrate life-like digital nature into their simulated infrastructure designs. Thanks to LumenRT, reality modelling for architects and engineers to capture existing conditions and provide context for proposed infrastructure designs can now be enlivened with digital nature. By providing ‘live’ real-time immersive interaction, animating infrastructure environments with traffic simulations, active characters, wind-swept plants, seasonal trees, rolling clouds, and rippling water, infrastructure professionals can readily envision their proposed design alternatives as experienced in actual operation. The digitisation of construction and infrastructure is a work in progress as disciplines merge and new technologies like Unmanned Aerial Vehicles (UAV) join the fray – in fact, photo sequences from UAVs are likely to become the most feasible source for surveying, construction monitoring, and inspection workflows; LumenRT puts Hollywood movie quality into the hands of engineers. Bentley Systems has more such WOW factors under development.

EVENTS

NEXT MONTH

ABU DHABI SUSTAINABILITY WEEK 16-23 JANUARY 2016, Abu Dhabi n Abu Dhabi government initiative, Abu Dhabi Sustainability Week (ADSW) is the largest gathering on sustainability in the Middle East and a signiﬁcant forum in stimulating the international dialogue and action. ADSW is recognised as path-breaking global forum which unites thought leaders, policy makers and investors to address the challenges of renewable energy and sustainable development. Key events that are part of ADSW include the IRENA General Assembly; Zayed Future Energy Prize; the World Future Energy Summit (WFES); the International Water Summit (IWS); EcoWASTE and The Festival at Masdar City. At WFES, key themes include Solar Village, which brings solar project developers and entrepreneurs together with investors, exhibitors, solution providers and thought leaders; the Solar Expo; the Sustainable Transport Zone; Energy

Efficiency TechTalk and the 9th edition of the WFES Conference, which is hosted by Masdar. In 2015, the conference was addressed by over 150 speakers, Heads of States and Ministers who discussed the most critical issues surrounding the future of energy in front of over 2,000 conference attendees from over 50 countries. IWS, which celebrates its 4th edition in 2016, will bring together world leaders, ﬁeld experts, academia and business discuss sustainable strategies and technologies in the water industry. A key theme, apart from the IWS Conference is Innovate@ IWS, which aims to ﬁnd and accelerate next generation technologies in water sustainability. EcoWASTE is a leading international platform for advancing sustainable waste management and recycling across MENA and beyond.

Mark your diary... UAE ENERGY FORUM 12 JANUARY, 2016 ABU DHABI The theme of the 7th edition of the Gulf Intelligence UAE Energy Forum is ‘The 2016 Outlook: the Era of Energy Abundance and Disruption.’ The event is held under the he Patronage HE Eng. Suhail Al Mazrouei UAE Minister of Energy. Contact: Gulf Intelligence Tel: +971 4 4508980 www.thegulfintelligence.com THE SAUDI WATER & ELECTRICITY FORUM 7-9 FEBRUARY 2016 RIYADH

Contact: Mai Ismail Tel: +971 50 526 6736 Email: mai.ismail@reedexpo.ae www.abudhabisustainabilityweek.com

Under the patronage of His Excellency, Abdullah A Al Hussayen, Minister of Water & Electricity, SWEF is the premier strategic meeting of the Kingdom’s water and electricity industries.

MIDDLE EAST ELECTRICITY 1-3 MARCH 2016, Dubai iddle East Electricity (MEE), the world’s largest power exhibition, will celebrate its 41st edition in 2016 at theDubai International Exhibition Centre. Running alongside the MEE is the Solar Middle East exhibition, which will bring together a notable line-up of exhibitors from all over the world to showcase their products to an audience of key decision makers from across the region. After a successful debut in 2015, MEE 2016 will once again feature a dedicated area for the lighting industry. Other highlights include The Solar Agenda

Contact: Chris Hugall Tel: +44 20 7978 0084 Email: SWEFenq@ thecwcgroup.com

2016 conference and the MEE 2016 Awards. The MEE awards celebrate the outstanding achievements of individuals, departments, teams and organisations that contribute to the growth and development of the energy industry with a focus on the power, lighting, new & renewable energy, nuclear and water sectors.

www.saudiwaterelectricity.com MIDDDLE EAST RAIL 8-9 MARCH, 2016 DUBAI In its 10th year, Middle East Rail is the annual meeting place for railway operators, government departments and world-class solution providers from across the globe. Contact: Jamie Hosie Tel: +971 4440 2501

Contact: Feroz Parkar Tel: +971 4 407 2406 Email: feroz.parkar@informa.com www.middleeastelectricity.com

Email: jamie.hosie@ terrapinn.com

December 2015

INFRASTRUCTURE MIDDLE EAST

INFRASTRUCTURE MILESTONES

#021 Cogen configuration Fujairah 1 IWPP pioneered the hybrid desalination concept in the Middle East by combining membrane and thermal technologies he Fujairah 1 Independent Water and Power Plant (F1 IWPP) in the UAE recently completed a $200m expansion project, which increased the plant’s total seawater desalination capacity by 30% to 130 million imperial gallons per day (MIGD). When it commenced operations in March 2009, F1 IWPP, with its mix of Reverse Osmosis (RO) and multistage flash (MSF) technologies, was the first hybrid desalination plant in the Middle East, and the largest in the world. The plant’s power generation capacity stands at 893MW. The use of reverse osmosis (RO) technology for expansion has increased the share of RO in the to 67.5 MIGD with multi-stage flash (MSF) technology

INFRASTRUCTURE MIDDLE EAST

producing the remaining 62.5 MIGD. With RO delivering more than half of the plant’s desalinated water output, the Fujairah 1 IWPP is also one of the largest RO desalination facilities in the Middle East. The 30 MIGD water output from the expansion will be sold to the Abu Dhabi Water & Electricity Company (ADWEC) under a 20-year water purchase agreement. This will help to meet the increasing water demand in the UAE, and also provide additional income for the plant. The new agreement is in addition to the existing 22-year power and water purchase agreement with ADWEC for the initially contracted power and water output of 760 MW and 100 MIGD respectively. The expansed facility will use the plant’s uncontracted surplus power to produce the additional water at a highly competitive cost. It has also been

December 2015

Fast facts Location: Qidfa, Emirate of Fujairah Original desalination capacity: 100 MIGD Total initial Investment : $1.7bn Ground breaking for expansion: June 30, 2013

conﬁgured for greater environmental efficiency and energy savings. An innovative element of the expansion project is that it reuses the heat reject from the MSF facility for reuse in the RO plants The heat reject is blended with fresh seawater intake and the integrated stream is used as feed for both existing and new RO plants, thereby minimising the environmental impact related to the brine discharge. The expansion also includes a new Dissolved Air Floatation (DAF) system to improve the quality of the seawater feed and will serve both RO plants. F1 IWPP is owned and operated by Emirates Sembcorp Water & Power Company (ESC), a JV between Sembcorp Gulf Holding and Union Power Holding, subsidiaries of Sembcorp Utilities and the Abu Dhabi National Energy Company (TAQA) respectively. Sembcorp holds an effective 40% in ESC.

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The Meeting Place for the Middle East Downstream Industry Conference and Exhibition Creating Competitive Advantage via Application of Latest Technologies

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