Infrastructure Middle East May 2015 by Infrastructure ME

ISSUE 015 | MAY 2015

construction

cities

Top-down FM Facilities Management’s sustainability role

New urban paradigm IoT opens up economic opportunities in cities

p28

p39

special report

oil & gas

Solar express DEWA’s sustainable utility strategy

Data-driven oil fields Rewards and risks of leveraging data

p34

p42

exclusive interview

Global Game Changer ACWA Power’s Paddy Padmanathan strikes a blow for renewables

PLUS top 10 airport projects in the gcc

#IamWSPPB

I AM WSP PARSONS BRINCKERHOFF

I AM INNOVATIVE TRANSPORT SOLUTIONS

NOOR HAJIR ENGINEER - TRANSPORT PLANNING

www.wspgroup.com I www.pbworld.com

INTRODUCTION

Buzz about batteries 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 ADVERTISING COMMERCIAL DIRECTOR JUDE SLANN jude.slann@cpimediagroup.com +971 4 971 4 375 6842 MARKETING MARKETING MANAGER LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498 DESIGN HEAD OF DESIGN GLENN ROXAS DESIGNER JOHN MAGNO CIRCULATION AND PRODUCTION DATABASE AND CIRCULATION MANAGER RAJEESH NAIR rajeesh.nair@cpimediagroup.com +971 4 4409142 Production Manager JAMES THARIAN james.tharian@cpimediagroup.com +971 4 440 9136 DIGITAL DIGITAL SERVICE Director TRISTAN TROY MAAGMA

he newsfeed lit up just as I put finishing touches to a piece on how solar became the ‘unofficial’ theme of WETEX this year thanks to its organiser, the Dubai Water and Electricity Authority (DEWA), going full throttle with solar power; in this case, soliciting project consultancy bids for an 800MW solar PV-based independent power project (IPP). As to the newsfeed: Tesla Motors’ CEO Elon Musk had just launched Powerwall, the electric car maker’s long-awaited cross-over battery systems for home and commercial use, in combination with rooftop solar panels among other things. The jury is still out on the Total Cost of Ownership (TCO) improvement that a Powerwall represents over existing battery technologies. But I am inclined to agree with my favourite tech blog in cyberspace – The Register – that it represents an “incremental change” than a “radical disruption” as everything hinges on how quickly large-scale or commercial users cosy up to it. If the Tesla marketing machine can do for battery technology what it did for electric cars, you can bet on the total market getting bigger as consumers start demanding affordable systems. UAE-based tech outfit MICCGreenTec attracted a lot of attention at WETEX with its ‘electric rickshaw,’ which served as a prop for the launch of its Super Capacitor technology in the region. According to the company’s CEO and director Waseem Qureshi, applications that stand to benefit the most are ones that require quick charging and discharging with a large amount of energy. This technology can also be combined with existing battery systems to enhance overall performance. On a sadder note, the recent earthquake in Nepal has left a trail of death and destruction in its wake. Our prayers are with the people of Nepal but the tragedy holds important lessons for countries in the region in terms of disaster preparedness. With infrastructure build up, building codes should be enforced strictly. This has been the key learning from past natural disasters in the US and Chile, which led to the development of some of the best building codes in the world today. Governments in the region should also invest in designing resilient infrastructure and systems that can blunt the edge of natural disasters or extreme weather events resulting from climate change.

Published by

REGISTERED AT IMPZ PO BOX 13700, DUBAI, UAE TEL: +971 4 440 9100 FAX: +971 4 447 2409 WWW.CPIMEDIAGROUP.COM Printed by Printwell Printing press LLC

Anoop K Menon Editor Infrastructure Middle East anoop.menon@cpimediagroup.com

© Copyright 2015 CPI. All rights reserved 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.

May 2015

INFRASTRUCTURE MIDDLE EAST

CONTENTS

015 May 2015 30

COVER STORY

REGULARS

Global Game Changer

06 Regional update

ACWA Power’s Paddy Padmanathan strikes a blow for renewables

UAE to have new transport law

10 Sector update

Orpic finalises the FEED for Liwa Project

14 Global update

Shell to acquire BG Group for $70bn

15 In focus

Baggage expectations

policy report

21 Infrastructure tenders

‘It is worth considering DC to achieve demand reduction targets’

46 Spotlight

In conversation with HE Eng. Fathima Al Foora Al Shamsi, Assistant Undersecretary for Electricity, Clean Energy and Desalinated Water Affairs at the UAE Ministry of Energy

45 Infra people

Advantech: Focus on IoT Interview: WSP | Parsons Brinckerhoff

46 Executive Insight 47 Events 48 Infrastructure milestones This month: CHAdeMO, anyone?

INdustry sectors Top 10 FEATURE

cities

24 GCC Airport Projects

39 New urban paradigm

Airport projects are yet to feel the sharp edge of the fiscal axe being wielded by GCC countries. Will their luck hold?

construction

technology

28 Top-down facilities

40 Reality computing

management MEFMA’s Alan Millin argues why facilities management needs to re-claim its rightful place in the sustainability framework

Technologies that capture the physical world digitally and deliver digital information physically are transforming civil infrastructure projects

special report: WETEX 2015

OIL & GAS

34 Solar express

42 From digital to data driven oil fields

Dubai Electricity and Water Authority (DEWA) is building its sustainable utility strategy on a solid solar foundation

The convergence of physical things with the internet present new economic opportunities for business and people in cities. By Volker Bischoff

INFRASTRUCTURE MIDDLE EAST

May 2015

A Booz Allen Hamilton study analyses the rewards and risks involved in leveraging oil field data

Presents

2015 Seminar on Energy Efficiency & Energy Management 24 May 2015  Habtoor Grand Beach Resort Dubai Marina, UAE As the UAE continues to move towards a sustainable country, what initiatives in energy efficiency are being undertaken including the harnessing of renewable energy? And how is this being effectively managed? At the Infrastructure Middle East Seminar panels of speakers will be discussing RETAIL Building automation developments Innovations in technology Laws and scope for amendment Campaigns and initiatives Improving air quality Energy Saving case studies

HOSPITALITY Building Management Systems Energy saving through sensor technology and smart metering Controlled room automation Energy efficient lighting Energy saving case studies

ROOF TOP SOLAR The economics of rooftop solar Structural considerations Getting all stakeholders on-board Typical efficiency for panels

To register, go to: www.cpi-industry.com/events/infrastructureme/ FOR SPOnSORSHIP OPPORTunITIES PLEASE cOnTAcT Jude Slann, Commercial Director // jude.slann@cpimediagroup.com // +971 50 4563924

SponSored by

ASSociAtion pArtnerS

mediA pArtner

‫ﺟﻤﻌﻴﺔ اﻟﺸﺮق اﻻوﺳﻂ ﻟﺼﻨﺎﻋﺎت اﻟﻄﺎﻗﺔ اﻟﺸﻤﺴﻴﺔ‬

Middle East Solar Industry Association

Empowering Solar across the Middle East

orgAniSed by

Online

LAUNCH PARTNER

The Big Project’s home on the web MOST POPULAR

EDITOR'S CHOICE

READERS' COMMENTS

MENTAL HEALTH fOR CONSTRUCTION wORkERS IN SPOTLIGHT

Construction workers torch building site,

17 cars in UAE strike Protest in Ras Al Khaimah apparently sparked by death of worker after fall from fifth floor of under-construction building

Dutco Balfour Beatty wins $408m Dubai Creek project

Meraas appoints contractor to build waterfront hotels, markets, restaurants and retail outlets

PHOTO GALLERIES

Site visit: Volvo CE road machinery on show in Abu Dhabi FAMCO, local distributor for Volvo Construction Equipment (CE), organised an event for customers in Abu Dhabi. See photo galleries at: meconstructionnews.com/photos

Migrant workers ‘forced to run Qatar marathon’

Workers allegedly “press-ganged”

- SIMON CROMPTON, Comment to the

into participating, although

story, ‘Mental health of construction

organisers deny claims of coercion

workers needs more thought’

Nakheel unveils threeyear plan for Dubai

READER POLL

projects worth $3.8bn

Are Gulf governments doing enough to ensure fire safety?

Dubai ruler Sheikh Mohammed briefed on developments, which

12% 12%

include extensions to Dragon Mart and Ibn Battuta Mall

Dubai property prices drop, rents flat in Q1, says JLL

Residential rents remain ‘relatively flat’ while sale prices see ‘marginal decline’, consultancy says

It is certainly a good thing that this website has addressed the issue of the psychological impact of construction work – which is, as you say, a labour-intensive, highstress environment. And while I would applaud more focus on this in the Gulf, it is surely worth noting that the availability of easily accessible mental-health services is lacking across the board, not just in construction.

VIDEO

‘Spiderman’ climbs world’s tallest twisted tower in Dubai French climber Alain Robert, also known as ‘Spiderman’, scaled Dubai’s Cayan Tower without a safety harness. See videos at: meconstructionnews.com/videos

Yes: Regulation Yes: It’s up to the in place is private sector to adequate address

31% 43% No: Better legislation is needed

No: There should be stricter enforcement

Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com 4

CONSTRUCTION

MIDDLE EAST

April 2015

regional UPDATE

UAE HH Sheikh Mohammed bin Rashid Al Maktoum, VicePresident and Prime Minister of the UAE and Ruler of Dubai, has endorsed the ‘Route 2020’ Project, encompassing the extension of the Red Line of the Dubai Metro from Nakheel Harbour & Tower Metro Station to the site of Expo 2020. HH directed RTA to start the project construction works immediately, and complete it on time. HE Mattar Al Tayer, Chairman of the Board and Executive Director of the Roads and Transport Authority (RTA) said that as per the timeline, the project is expected to be released for tendering in July. The project will initially serve 240,000 people.

Route 2020 The Red Line extension spans 15 km and includes 7 stations

The Ministry of Environment and Water launched the UAE’s first ever HydroAtlas at WETEX 2015 last month. Developed in cooperation with the UAE University, HydroAtlas, is a public data base that aims to provide decision makers and water resource specialists with essential water-related information on the country. The data featured

in the HydroAtlas, which will also be available in digital format, focuses on water security and promotes the integrated management of water resources. The atlas comprises 10 main chapters that contain statistics, studies and maps tackling crucial subject matters such as the quality of soil, surface water and groundwater, among other things.

Oman The government’s continued investment in the development of infrastructure is aiding Oman’s transformation into a major logistics hub in the southern Gulf, according to a research report by Cluttons. The report singles out the warehouse sector as being a stand out performer in the commercial market, with improved infrastructure and connectivity driving demand from occupiers, and catalysing the development of modern warehouse estates. Philip Paul, head of Cluttons Oman said: “In Rumais, which is located to the west of Muscat International Airport, First Logistic Services is developing warehousing units ranging in size from 500-1,000 sqm on an 81,000 sqm site.”

INFRASTRUCTURE MIDDLE EAST

Muscat harbour Oman scores high on the transport infrastructure front

Oman’s oil minister has described as a “mistake” OPEC’s decision to preserve its share of global crude sales amid a global production glut instead of trimming output to prop up prices. According to a Bloomberg report, Mohammed Al-Rumhy criticised OPEC’s decision not to cut production as a “non-starter” for countries May 2015

outside the organisation. “I think they are wrong, those who are sticking to market share and cutting their income by half,” said Al-Rumhy. “I’d rather reduce my production by five, 10% and increase my revenue by 100%, to double it.” The Bloomberg report also noted that Oman and Iran are discussing the route for a planned natural gas pipeline.

HE Abdullah Bel Haif Al Nuaimi, Minister of Public Works told the Federal National Council (FNC) last month that the UAE will have a new transport law this year. Responding to a query from Ali Eisa Al Nuaimi, an FNC member from Ajman, the Minister said that 70% of the federal transport rules covering safety and operational standards have been completed. The new law would also pave the way for more than $22bn of investments in railroads and metros, said Al Nuaimi, who also chairs the National Transport Authority (NTA). He added that the aim is to make the UAE rank among the top 10 countries, in terms of availability and quality of transport infrastructure by 2021. The World Economic Forum (WEF) ranks the UAE first regionally.

Petroleum Development Oman (PDO) is targeting long-term oil production of an average 600,000 barrels per day (bpd) by 2019. At the Ministry of Oil & Gas’ annual Media Briefing in Muscat last month, PDO chief Raoul Restucci said: “In the past five years, we have added 700m barrels to our production profile despite working in some of the most testing conditions in the oil and gas industry.” The average PDO daily oil production for 2014 was 570,534 bpd, well above the existing plateau target of 550,000 bpd, representing PDO’s highest oil production since 2006. PDO said it was pursuing a robust growth programme despite the volatile oil price environment and also unveiled a series of “promising” new hydrocarbon discoveries.

regional UPDATE

Kuwait Kuwait has decided to stop expatriates entering the country in order to “fix imbalances” in its population, Kuwait Times reported. According to the report, which cited government sources, the Kuwaiti cabinet has ruled that while the country would maintain its existing expatriate population, it should allow foreigners only to replace those leaving. Barring Saudi Arabia and Oman, expatriates outnumber locals in rest of the GCC. Kuwaitis currently make up over 31% of the country’s population. Last year, MP Khalil Abdullah stated that Kuwait should deport 280,000 expatriates per year for the next five years to bring their numbers down to 1.1m.

Population imbalance Kuwait MPs have called for deporting ‘non-skilled workers’

Kuwait is studying proposals to introduce the same tax rates for local and foreign companies. A Reuters report quoted Finance Minister Anas Al Saleh as saying there are suggestions from international institutions to study the unification of the ratios on both sides. Last month, former

Commerce and Industry Minister Abdulmohsen al-Mudej said that Kuwait is talking to the International Monetary Fund (IMF) to find ways of introducing corporate taxes for local and foreign companies. Kuwait currently imposes no taxes on local companies, citizens and expatriates but foreign firms are taxed 15% of their profits.

Saudi Arabia Saudi Arabia’s Supreme Economic Council has approved a restructuring of oil giant Saudi Aramco, separating it from the oil ministry. The Supreme Petroleum Council, which previously set oil policy and was led by the king, will be dissolved. Instead, a 10-member supreme board, led by Deputy Crown Prince Mohammed bin Salman, has been announced to oversee the company’s affairs. Saudi Aramco’s chief executive, Khaled Al-Falih has been appointed as chairman of the oil firm and the kingdom’s health minister while Aramco senior vice-president Amin alNasser has been appointed as the acting CEO. The octogenarian Petroleum Minister Ali Al-Naimi continues to retain his post.

INFRASTRUCTURE MIDDLE EAST

Big wastage KSA’s energy consumption stands at 4.2m barrels of oil equivalent/day

Saudi Arabia should eventually consider raising its domestic water and power prices to limit rapid growth of consumption, said a Reuters report, quoting deputy electricity minister Saleh Al-Awaji. Water and power demand is growing by 8%annually, and while the government can for the time being, find enough funds and energy resources to meet May 2015

domestic demand, this will not always be true, said Al-Awaji, who is also chairman of Saudi Electricity Company (SEC). Al-Awaji reiterated that the kingdom planned to spend more than $213bn over the next 10 years on water and electricity projects. The total generation capacity in the kingdom currently stands above 65,000 MW.

State-run Kuwait National Petroleum Co (KNPC) is in talks with banks to raise a loan worth around $10bn for its Clean Fuels project, said a Reuters report A key component of Kuwait’s $99.6bn economic development plan, the Clean Fuels Project will upgrade and expand two of KNPC’s largest existing refineries to focus on producing higher-value products such as diesel and kerosene for export. NPC is said to be seeking funds which will last between seven and 10 years. NBK Capital, a part of National Bank of Kuwait, is advising KNPC. The Clean Fuels Project is expected to be completed by May 2018 and to be fully operational by the end of 2018, Mohammed Ghazi al-Mutairi, chief executive of KNPC, told Reuters in September.

Saudi Arabia expects to save 1.5m barrels of oil equivalent per day by 2030 on the completion of all activities of the Saudi programme for energy efficiency. Speaking at the 18th annual meeting of the Saudi Economic Association, Prince Abdulaziz Bin Salman, Deputy Minister of Petroleum and Mineral Resources, Chairman of the Executive Committee of the Saudi Centre for Energy Efficiency, and Honorary President of the Association said the daily energy consumption in the kingdom has risen from less than 1m barrels of oil equivalent per day in 1980 to 4.2m barrels of oil equivalent at present. “This consumption is expected to rise to over 8m barrels oil equivalent per day in 2030 if “we do not work seriously to curtail the big wastage in energy consumption,” said the Deputy Minister.

regional update

Qatar Qatar hopes to house up to 12,000 football supporters on boats during the 2022 World Cup. A report by The Telegraph, quoted a Qatar Tourism Authority statement, which said that “Qatar will be extensively benefiting from cruise ships over the 2022 World Cup, as a means of providing additional accommodation supply for fans and visitors over the period.” Therefore, “QTA will be contracting a minimum of 6,000 rooms on cruise ships for 2022 tournament.” The 6,000 rooms figure equates to about five average-sized cruise ships, and would represent approximately one-third of the 16,000 hotel and apartment hotel rooms currently available in Qatar.

Floating hotels Qatar has revived a plan to lodge football fans in cruise ships

Qatar has officially opened the Jetty Boil-Off Gas Recovery (JBOG) Project in Ras Laffan Industrial City (RLIC), one of the largest environmental investments in the world. The $1bn JBOG Project is part of the Common Facilities Projects at RLIC and is designed to recover the gas flared during Liquefied Natural Gas (LNG) loading at the

SYNTHETIC FIBRE REPLACING STEEL IN CONCRETE EUROPE – AFRICA – MIDDLE EAST- NORTH & SOUTH AMERICA – AUSTRALASIA

six LNG berths in Ras Laffan Port. The project will result in a 90% reduction in flaring at the six LNG loading berths at Ras Laffan, equivalent to annual Green House Gas (GHG) savings of 1.6m tonnes of CO2. The project will help recover 29bn standard cubic feet (bscf ) of gas per year which is enough gas to produce 750MW of power or to power 300,000 homes.

Qatar has opened the Middle East’s first centre for clearing transactions in the Chinese yuan last month, said a Reuters report. “The launch of the region’s first renminbi clearing center in Doha creates the necessary platform to realise the full potential of Qatar and the region’s trade relationship with China,” Qatar’s central bank governor Sheikh Abdullah bin Saud al-Thani said at a ceremony. Industrial and Commercial Bank of China’s (ICBC) Doha branch is the clearing bank for the centre to serve companies from around the region. With the GCC’s non-oil imports from China growing rapidly, banks servicing the trade may want to use Qatar’s clearing centre rather than having deals cleared in Shanghai or Hong Kong.

Do you want to save time, money and maintenance costs? NOW USED IN ALL SECTORS OF THE CONSTRUCTION INDUSTRY

Marine Structures

Mining

Concrete Paving

Residential Development

Civil Infrastructure

Civil Tunnelling

Industrial Flooring

Precast Elements

Other Concrete Applications

Elasto Plastic Concrete Ltd. Paul Hamilton P.O.Box 66523, Dubai, UAE Mob: +971 50 137 2083 | Office: +971 4 443 2912 E-mail: phamilton@elastoplastic.com | Website: www.elastoplastic.com http://bit.ly/EPCCorporateVideo May 2015

INFRASTRUCTURE MIDDLE EAST

sector UPDATE

Utilities DEWA has entered into an agreement with Etisalat to utilise the latter’s G-PON Fibre service for DEWA’s 29,000 substations. The first phase will cover 3,200 substations in four zones across Dubai. HE Saeed Mohammed Al Tayer, MD & CEO, DEWA said:“We have signed this partnership with Etisalat in support of its key role in building the communications infrastructure. Phase one of this project will be completed by the end of 2015.” “This partnership supports our efforts to deliver fiber optic and 4G network capabilties to support the public and private sectors in the UAE,” said Saleh Abdullah Al Abdouli, CEO of Etisalat.

DEWA-Etisalat pact DEWA’s smart initiatives will utilise Etisalat’s fibre network

Wärtsilä has received orders to supply two power plants for Rural Areas Electricity Company (RAECO) in Oman. The power plants, with a combined capacity of 104 MW, will supply electricity to rural areas in Southeastern Oman, outside the national grid. “These projects support our strategy of providing

reliable distributed capacity with Smart Power Generation technology. They also illustrate our performance in hot and dry conditions,” said LarsÅke Kjell, Regional Director of Wärtsilä Power Plants. Wärtsilä recently announced a 120MW power generation project in the Musandam governorate of Northern Oman.

Oil & Gas Orpic has finalised the frontend engineering design (FEED) of the $3.6bn Liwa Plastics Industries Complex. Developed by Orpic, in partnership with Chicago Bridge and Iron Company (CB&I), the FEED, delivered in a record time of 12 months, is now ready to be submitted to the companies that were pre-qualified to participate in the the Engineering, Procurement and Construction (EPC) tender process. The EPC awards are expected to be made in the last quarter of 2015. “The Liwa Plastics Industries Complex will put Oman in the roadmap of the international petrochemicals marketplace, reinforcing Orpic’s position as a significant player,” said Musab Al Mahruqi, CEO of Orpic.

INFRASTRUCTURE MIDDLE EAST

FEED completed The Liwa EPC packages will be awarded in the last quarter of 2015

Emerson and Kuwait Oil Company (KOC) have signed a Memorandum of Understanding (MoU) on Competency Development. Emerson will support KOC by providing educational services consulting. The two companies will work together to promote automation knowledge and technology transfers, identify necessary technical training for May 2015

the company’s operations and maintenance staff, and develop learning and development programs in order to prepare personnel for future projects. The MoU follows training provided by Emerson to KOC’s engineers in 2013 on field instrumentation, DeltaV automation system, cyber security and process control at its training centres in the US.

Empower has awarded a $50.64m contract to Gulf District Cooling to develop a new district cooling facility in Business Bay. The 45,000 Refrigeration Tonne (RT) plant is expected to come on-stream by Q2, 2016. The upcoming Business Bay facility is Empower’s third project in the neighbourhood, in addition to the existing two plants operating since 2010 and 2014 with a capacity of 45,000 RT each. “Because of its complexity, reach and size, Business Bay represents one of the most important facets of Empower’s growing project portfolio,” said HE Ahmad Bin Shafar, Chief Executive Officer, Empower. “Our newest facility reaffirms our commitment to this dynamic and vibrant community.”

The current low price of crude oil and natural gas is likely to increase the overall cost of funding for regional projects, the Gulf News reported. However, the low price is unlikely to have a widespread impact on the credit quality of project finance debt, the report said, quoting Standard & Poor’s credit analyst Karim Nassif. While there have been no evidence of large scale project cancellations or funding crunch for GCC projects, S&P believes that funding could face higher costs in the context of squeeze on liquidity in the banking system and a potential change in the risk perception of debt capital market investors, if the oil prices remain depressed over a long period. They said the UAE don’t face any immediate challenge as the country has a robust AA rating.

■ ■ ■ ■ ■ ■ ■ ■

www.megger.com

Power Transformers Current transformers Voltage transformers General AC insulation testing Resistance testing Circuit breakers Primary testing Protection relays

sector UPDATE

Transport Louis Berger has been awarded a $100m programme management office consultant (PMOC) contract for implementation of the AlMadinah AlMunawwarah Public Transportation Program (MPTP). With a major expansion of both the Prophet’s Mosque and to the city’s airport, projections indicate as many as 8.6m Umrah visitors and 3.6m Hajj pilgrims will visit the city in 2040. The programme will address current and future challenges related to crowding, traffic congestion and environmental pollution caused by vehicle emissions. The contract will extend over a five year period and also involves knowledge transfer.

James Hogan The Etihad Airways chief said his company adds value to Europe

The President and CEO of Etihad Airways, James Hogan, met the European Commission Transport Commissioner, Violeta Bulc, to highlight the multi-billion euro contribution which Etihad makes to European economies. He said research conducted by Oxford Economics showed that in 2014, Etihad Airways’ core

operations in the EU contributed a total of $1bn to the combined GDP of the EU28 member nations and supported more than 11,000 jobs. Additionally, the airline’s 2014 capital spending on aircraft and other aviation equipment contributed $2.6bn to the EU GDP, and supported more than 28,100 jobs during critical phases such as mobilisation.

Construction Dubai Investments Park (DIP) is planning eight new hotels and serviced apartments, amid “surging demand and growth potential” derived by its proximity to the Al Maktoum International Airport and the Expo 2020 site. The eight new properties will be built over the next five years by “individual investors” and be of various star categories, a DIP statement said. The owner of the Dubai community said the total number of hotels within the area will grow to 11, comprising around 2,000 hotel rooms. The DIP statement pointed to the 25m visitors expected at the Dubai Expo 2020 as a factor behind an expected rise in demand for hotel rooms.

INFRASTRUCTURE MIDDLE EAST

Master plan Nakheel has unveiled an ambitious three-year spending programme

Charles Russell Speechlys, a leading international law firm, has advised Bahraini private developer Diyar, on the development and construction of nearly 3,100 housing units on Bahrain’s largest master planned development project. Charles Russell Speechlys’ advised and finalised the agreement between Diyar and the Ministry of Housing May 2015

(MoH) in which the MoH has essentially committed to acquire social housing units, affordable housing units and supporting infrastructure from Diyar at a cost of over $1bn. According to a number of reports, over 50,000 people are waiting for social housing in Bahrain alone and demand is increasing with population growth.

HE Mattar Al Tayer, Chairman of the Board and Executive Director of the RTA, announced that the Authority has accomplished the transformation of all customer services into smart services. About 173 services have transformed into smart services offered via nine apps available via platforms of various smart phones (Android, Apple, Blackberry, and Windows). Al Tayer said: “RTA has completed the reengineering and redesigning of 36 services that have been transformed into smart services. It also engaged about 80 students from five universities as well as several companies in designing and testing the smart services.” Last January, RTA launched a contest amongst university/college students to develop smart apps. The winners will be announced in July.

Leading Dubai-based developer Nakheel unveiled a three-year plan for new and ongoing projects worth $3.8bn, reported WAM. HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai was briefed by Ali Rashid Lootah, Chairman of the Board of Directors of Nakheel on the components and designs of the projects, which also includes the Deira Boulevard project, to be built on an area of more than 9m sq ft and extensions to the Ibn Battuta and Dragon Mart Malls. HH also toured the Al Khail Mall project, which occupies an area of 1.25m sq ft in the first phase and inspected the designs of ‘Dragon City,’ the new name of the Chinese City on the Dubai-Al Aweer street, which is being constructed over an area of 3.6m sq ft.

GLOBAL UPDATE

Round Up General Electric (GE) has announced that it is selling the bulk of its finance business to focus more on its industrial business. GE will sell about $30bn in real estate assets and buy back $50bn of its shares over a two-year period as part of the execution of a new plan to generate more than 90% of its earnings from high-return industrial businesses by 2018. GE will retain its ‘vertical’ financing businesses –GE Capital Aviation Services, Energy Financial Services and Healthcare Equipment Finance – that directly relate to its core industrial businesses. The assets targeted for disposition, in addition to real estate, are most of the commercial lending and leasing, and all consumer platforms, including all US and international banking assets. Royal Dutch Shell has announced that it will acquire its rival BG Group for $70bn. The acquisition of BG puts Shell in a better position to tap into the growing market for liquefied natural gas (LNG) logistics, which is the former’s forte. “The addition of BG’s competitive natural-gas positions makes strategic sense, ahead of the long-term growth in demand we see for this cleaner-burning fuel,” said Shell CEO Ben van Beurden, Writing in The National, Robin Mills, Head of Consulting at Manaar Energy said by the end of the decade, the combined company will be the corporate world leader in LNG, with 45m tonnes per year of sales, more than half as much as Qatar.

INFRASTRUCTURE MIDDLE EAST

Jeff Immelt The GE Chairman and CEO is reshaping his company for the future

Tesla Motors has adapted the technology it uses for its $70,000 electric cars for use in the residential and commercial markets. “No incremental CO2 is the future we need to have,” said Elon Musk, CEO, Tesla Motors at the battery packs’ launch. Compatible with rooftop solar systems, the Powerwall is a rechargeable lithium ion battery which comes in two models – a 10 kWh model for grid backup and a 7 kWh model for daily loads. During the launch, Musk pointed out that in places where there are no utility lines, the battery pack “allows you to go completely off grid. It’s analogous to the way that mobile leapfrogged landlines.” Tesla partnered with several companies to test out the battries, including Amazon, Target and Jackson Family Wines.

The IEA Oil Market Report for April raised its forecast of 2015 global oil demand by 90,000 bpd to 93.6m bpd, a gain of 1.1m bpd on the year. The change was attributed to cold weather causing a greater need for fuel to heat homes, offices and other buildings in Western countries. OPEC crude oil output soared to 31.02m bpd, on sharply higher Saudi Arabian, Iraqi and Libyan supplies. IEA has predicted that the world’s supply of oil would fall back in line with demand starting from the second half of 2015, when US producers are expected to begin cutting back production because of low prices. The Annual Energy Outlook 2015 (AEO2015) released by the US Energy Information

Powerwall Tesla Motor’s new batteries are a potential game changer for the grid

May 2015

Administration (EIA) noted that new technologies and policies are promoting slower growth of energy demand in the US. AEO2015 presents updated projections for US energy markets through 2040 based on six cases (Reference, Low and High Economic Growth, Low and High Oil Price, and High Oil and Gas Resource) that reflect updated scenarios for future crude oil prices. US net energy imports decline and ultimately end in most AEO2015 cases, driven by growth in US energy production—led by crude oil and natural gas— increased use of renewables, and only modest growth in demand. EIA Administrator Adam Sieminski said: “The US has been a net importer of energy since the 1950s. In cases with the highest supply and lowest demand outlooks, the US becomes a significant net exporter of energy.” The G20 has launched a joint probe into global financial risks posed by fossil fuel companies investing in costly ventures that clash with international climate goals, The Telegraph reported. The G20 has asked the Financial Stability Board in Basel to convene a public-private inquiry into the fall-out faced by the financial sector as climate rules become much stricter. All member countries have agreed to co-operate or carry out internal probes, including the United States, China, India, Russia, Australia, and Saudi Arabia. The Bank will issue its verdict in July. The IEA warns that two thirds of all declared energy reserves become fictional if there is a binding deal limit to C02 levels to 450 particles per million by the year 2100.

IN FOCUS

AIRPORTS

Baggage expectations SICK is at the forefront of the ‘self-services’ trend in the airport sector with its automated bag drop systems ounded in 1946, SICK is a leading supplier of products and “complete automated systems” for the global airport industry. “The traveller expects state-of-the-art technology that offers intuitive and convenient processes,” says Alex Kilic, Regional Sales Manager - Logistics Automation, SICK FZE. Today, self-bag drop systems with SICK equipment are installed in airports all around the world from Australia to Japan, Europe, North America and the Middle East. Kilic spoke to Infrastructure Middle East about the company’s latest offerings. Excerpts from the interview

(Dimensioning and Weighing Systems). I can comfortably say that we have been instrumental in saving many airports significant time and money through our automation systems.

Where does the name SICK come from? Does it stand for anything? We get asked that question a lot. SICK is actually the name of the German engineer who started the company. Dr Erwin Sick was a great inventor himself and founded SICK in 1946 when he invented the world’s first photoelectric sensor. Then SICK went on to invent world’s first industrial safety systems, laser scanners and more. The company is still owned by the SICK family. Today, SICK employs almost 7,000 people worldwide, present in almost 90 countries with a product portfolio of more than 40,000 products and systems. What sort of products does SICK supply for the airports industry? SICK is a leading manufacturer of presence detection sensors, industrial safety systems and identification and measuring solutions, so we supply a range of products from all these divisions. As a company, we not only supply products, but the main focus for the airport industry is supplying complete automated systems, like ALIS (Airport Luggage Identification Systems), as well as VMS (Volumetric Measurement Systems) and DWS

INFRASTRUCTURE MIDDLE EAST

May 2015

“We have just introduced a Safe Bag Drop System which uses safety-rated laser scanners over the bag drop counter monitoring conveyor belts, ensuring safe and reliable detection of objects” Alex Kilic, Regional Sales Manager – Logistics Automation, SICK FZE BY THE NUMBER

40,000

SICK’s existing products and systems portfolio

Are new products coming up from SICK for the airport industry? We spend 10% of our annual turnover on R&D, so there is always a new product coming up. Today, SICK covers all sensor tasks for self bag drop systems. From reading the passenger’s boarding card, automatic identification of the bag tag, detecting oversized luggage, anti-intrusion solutions to avoid forbidden access, all the way through to safety control according to regional safety regulations. After the check-in process, the luggage, identified with bag tags, is securely transported to the target destination within the airport building. Sensor technology from SICK reads the bag tag information, and checks the size, position and shape of the luggage, which helps to protect system parts from damage and optimises processes for the intermediate storage and automatic loading of bags. Airlines that intend to provide passengers with information about the current location of their luggage can rely on data coming from SICK’s automatic luggage identification systems installed in the baggage handling area. SICK is now capable of supplying reading gates based on barcodes, RFID and hybrid technology (barcode and RFID). Developed completely by SICK, hybrid technology allows reliable identification and localisation of the RFID tag on the luggage. The barcode portal, the second component of the system detects the luggage label in any position and orientation. When luggage passes the system, both the barcode and the RFID tag are read. In the baggage handling facility, the ALIS400 Hybrid makes close to 100% read rates possible. High read rates lead to significant improvements in the performance of an airport’s entire sorting and transport

In focus

system, a reduction in manual work, fewer complaints, and thus increased satisfaction. We have just developed a Safe Bag Drop System which uses safety-rated laser scanners over the bag drop counter, monitoring conveyor belts, ensuring safe and reliable detection of objects. The aim is to detect unwanted persons and/or objects on that part of the conveyor belt, like a child crawling or an object being thrown across. In addition, we are now using camera and OCR – Optical Character Recognition technology to link routing information with luggage identification. That enables airlines to track and trace where the luggage is at all times. SICK is also a competent partner for cargo and catering facility sensor solutions, for passenger boarding bridges, aircraft docking systems and airport ground vehicles. What do you see as passenger and airline expectations? Today, we see a major trend and strong interest in new ‘self-services,’ like self-

check-in and self-bag drop. Similarly, passengers also demand information about the whole journey of their luggage, from check-in to the destination. The traveller expects state-of-the-art technology that offers intuitive and convenient processes. To fulfil customers’ baggage handling expectations, quality processes are required. An increasing number of airports and airlines already have self-bag drop systems in operation to improve the passenger experience by giving them the option to deposit their luggage themselves at the bag drop counter without any assistance given by an airline agent. The new automatic systems simplify the drop off process and lead to shortened waiting queues as the transaction time per passenger is significantly reduced. It also means airlines can reduce the number of counter staff. Cost-effective automation is always a requirement from the airlines and all customers alike, and they expect flexible and scalable solutions. A system that can manage

the complete data is important to them, and rapid service intervention is a must. How do you support the local airport industry and your customers? We have a regional office based in Dubai with a number of technical people to support the Middle East market. We also have competent local system integrators who can assist with the installation, commissioning and servicing of the systems that we supply. In addition to that, we have a strong support system from other SICK subsidiaries and SICK head office. Our LifeTime Services initiative means SICK offers support during the entire operating life of the SICK product; from application consultation, to sensor and system selection and feasibility studies, to installation and commissioning, maintenance, update and retrofit services. This support is available at a number of different levels – right up to network or controller integration. The peace of mind this gives to our customers is indeed invaluable.

FINISHED PRODUCT SALES HOSE & BELT MANAGEMENT HYDRAULIC TUBING & PIPING HYDRAULIC SYSTEM REFURBISHMENT GATES ENGINEERING & SERVICES

MENA Headquarters, Jebel Ali Free Zone Dubai, United Arab Emirates Telephone +971 4 886 1414 Fax +971 4 886 1413

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

policy insight

energy strategy

‘It is worth considering District Cooling to achieve demand reduction targets’ B Surendar of Climate Control Middle East in conversation with HE Eng. Fathima Al Foora Al Shamsi, Assistant Undersecretary for Electricity, Clean Energy and Desalinated Water Affairs at the UAE Ministry of Energy

INFRASTRUCTURE MIDDLE EAST

May 2015

policy insight

Abu Dhabi has allowed the synchronising with the grid. Dubai is now opening the doors for Renewable Energy to be linked to the grid? Will we be seeing a unified Federal policy regarding distributed generation?

Compared to other sectors, power generation, as of today, is getting nearly 100% of its fuel requirement from Natural Gas.

conventional meters is going on in the UAE, through which some of the electricity utilities have achieved nearly 100% smart metering systems, and others are progressing.

The UAE vision for economic development is to achieve a sustainable and diversified economy, fuelled by an equally sustainable mix of energy sources and energy-efficiency programmes, and the target for clean energy is 24% by 2021. To achieve the target and to set the longterm targets for energy mix, the Ministry of Energy and the stakeholders concerned have formed the UAE Energy Strategy Development team to develop the UAE energy mix strategy and the demand reduction targets, compared to business as usual. The UAE government is conscious about the environment and is keen on reducing the environmental footprint, which is positively affected by cleanly distributed energy production.

Is there any move to remove subsidy on the pricing of power and create a more uniform pricing strategy across the UAE?

The UAE is rich in natural gas. Now, Natural Gas is highly subsidised at 0.9-1.4MBTU. In the US, it is four dollars. Would you agree that if the subsidy is removed, there is a possibility it will encourage the internal trading of gas instead of spending energy on liquefying. From a financial point of view, would the country consider exporting oil and using natural gas internally?

When are we likely to see the details of the Energy Strategy?

The Energy Strategy will be announced after the endorsement by the government on the draft that will be proposed by the UAE Energy Strategy Development team. How can the federal and local government policies be integrated regarding Renewable Energy and broad energy-conservation measures? For example, in the case of District Cooling, Dubai has a 30%-40% penetration target, in relation to the entire cooling market. We are eager to know if Abu Dhabi and the northern emirates have set any penetration target. And if there is going to be a Federal target for the penetration of District Cooling.

The Ministry of Energy is directing attention to Renewable Energy, efficiency and conservation through the Energy Strategy, which will not be isolated from existing strategies or policies in the emirates. And it is clear to us that energy-efficiency projects are the lowhanging fruit that produce fast results. District Cooling, as an example of energy-efficiency options, helps reduce energy consumption and costs compared to conventional air conditioning and, therefore, we believe that it is worth to consider it while developing the detailed policies to achieve demand reduction targets. Will the local market in the country have priority when it comes to getting Natural Gas?

For the electricity sector to be a sustainable business, the tariff should reflect the actual cost of the service. This depends on the energy mix, the cost of fuel and the cost of utility operation. In the UAE, we have four electricity and water utilities, each with different costs for delivering the services to the consumer. Abu Dhabi has already revised its tariff, and Dubai has a slab system and fuel surcharge in place. If you look at the different sectors, some of them are already reflecting the actual cost of the service. Many countries, like Singapore, are giving realtime pricing. They send out signals to consumers on what the price will be in the next half hour. When can we hope to see real-time pricing, so as to send the message that peak hours are, for instance, three to four times more expensive than non-peak hours?

Real-time pricing is one of the demand response measures that is used to motivate changes in electricity use by end-use customers in response to changes in the price of electricity over time. It gives customers time-varying rates that reflect the value and cost of electricity in different time periods. With this information, customers tend to use less electricity at times when electricity prices are high, which helps in shaving the peak and in saving investment in electricity infrastructure. To implement a real-time pricing system, an energy market mechanism, regulation and smart infrastructure are required. The shifting to smart meters from

“The Energy Strategy will be announced after the endorsement by the government on the draft that will be proposed by the UAE Energy Strategy Development team” HE Eng. Fathima Al Foora Al Shamsi

The UAE is an importer and exporter of natural gas. The government has recognised the need for meeting the increasing local energy demand while maintaining its reputation as a reliable supplier of oil to the world. As an oil and gas producer, we have commitments to the world, and that’s one of the drivers for undertaking measures to set a strategy to reduce the demand on energy and for energy resource diversification. The UAE started the initiatives for diversification of energy resources many years ago and is leading the region in clean energy projects. In addition to natural gas, the country is looking at solar and nuclear power. We are expecting the first nuclear plant reactor to come online in 2017. And from there, we expect to add one every year towards reaching a total of 5.6GW. When it comes to solar, we have 11MW at Masdar and 100MW in the Shams project. And in the Mohammad Bin Rashid Solar Park, we have a 13MW plant in operation and another 200MW under construction. Tri-generation, it is being said, can save 75% of primary energy compared to the current standard of District Cooling. It needs Natural Gas, though, and it needs some rebate and encouragement from the government. This (offering of rebate) is what the Americans, the Europeans and the Japanese are doing. Isn’t time the UAE considered this approach to address the increase in power demand, which is putting enormous pressure on generation?

Most of the generation plants in the country are combined cycle, to achieve the highest efficiency. When it comes to tri-generation, the distance between the power plants and the District Cooling plant has to be studied. This can be one of the areas to be studied by the utilities to achieve the demand reduction target. May 2015

INFRASTRUCTURE MIDDLE EAST

MIDDLE EAST INFRASTRUCTURE TENDERS

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

Sitra Refinery Upgrade & Expansion Project

Sultan Qaboos Medical City Project

Master Gas System Expansion Project Phase 2

Mohammad Bin Zayed City Project - Fujairah

Budget: $5,000,000,000

Budget: $1,500,000,000

Budget: $380,000,000

Territory: Bahrain Client Name: BAPCO Description: Engineering, procurement and construction (EPC) contract for expanding capacity of the existing refinery to 360,000 b/d. Period: 2019 Status: New Tender

Territory: Oman Client Name: Ministry of Health Description: Construction Construction of a cluster of hospitals anchored by a huge general hospital with dedicated facilities. .Period: 2018 Status: New Tender

Territory: Saudi Arabia Client Name: Saudi Aramco Description: Engineering Procurement and Construction (EPC) contract for second phase expansion consisting 849km of pipelines. Period: 2015 Status: New Tender

Territory: UAE Client Name: Public Works Ministry Description: Construction of a City comprising 1,100 residential units, schools, mosques, clinics, parks and shopping malls. Period: 2017 Status: New Tender

May 2015

INFRASTRUCTURE MIDDLE EAST

MIDDLE EAST INFRASTRUCTURE TENDERS

Top Tenders UAE Etihad Airways New Cargo Terminal Project - Abu Dhabi International Airport Project Number: DTR125-U Client Name: Etihad Airways Address: Block 17, Etihad Plaza, Khalifa City (A), Abu Dhabi Phone: (+971-2) 511 0000 Fax: (+971-2) 511 1200 Website: www.etihadairways.com Description: Development of a new Cargo Terminal covering a gross floor area of 400,000 sqm within the East Midfield of Abu Dhabi International Airport. Client is currently in the process of completing the design scope for the project brief, which will be let on a Design & Build under a Consortium Agreement, including the Material Handling Equipment. Period: 2017 Status: New Tender Tender Categories: Airport Construction & Contracting

LNG Emission Reduction Project - Das Island

design (FEED) on this scheme. UKbased Amec has been awarded the project management consultancy (PMC) contract for FEED phase of project, which is still underway. The main contractor is expected to be appointed this month. Period: 2016 Status: New Tender Tender Categories: Gas processing & distribution

Al-Zorah Mixed-use Development Project Project Number: MPP2693-U Client Name: Al Zorah Development, Ajman Address: C2 Towers, 6-11th Floors, Bainunah Street, Al Bateen Phone: (+971-6) 703 0100 Fax: (+971-6) 740 7722 Description: Development of Al-Zorah mixed-use scheme comprising commercial, residential, recreational, educational and healthcare facilities including a golf course, marina and hotels. Local AIMS Group has been awarded a $31.3m contract to carry out the final infrastructure works on this development. AIMS Groupâ&#x20AC;&#x2122;s work

Project Number: MPP2639-U Client Name: Abu Dhabi Gas Liquefaction Company (ADGAS) Address: Corniche Road, Abu Dhabi Phone: (+971-2) 606 1111 Fax: (+971-2) 606 5500 Website: www.adgas.com Description: Engineering, procurement and construction (EPC) contract for the development of new flaring and Liquefied Natural Gas (LNG) emission reduction in Das Island. US-based Shaw Group has been awarded a contract to carry out the front-end engineering and

INFRASTRUCTURE MIDDLE EAST

involves completion of rest of the roads and utilities in Phase 1 and is scheduled for completion by end of this year. The first phase also includes four marinas that can house over 200 boats and a new highway linking the development to Sheikh Mohammed bin Zayed Road. Status: New Tender Tender Categories: Roads, bridges & infrastructure; Public transportation projects

OMAN PTA & PET Complex Project - Sohar Port Project Number: ZPR883-O Client Name: Oman Oil Company Address: AlHarthy Complex, Muscat PC 118 Phone: (+968) 2457 3100 Fax: (+968) 2457 3101 Website: www.omanoil. com Description: EPC contract to build a Purified Terephthalic Acid (PTA) plant with capacity of 1.1m tpa and Polyethylene Terephthalate (PET) plant with capacity of 250,000 tpa. A contract award is slated around June 2015. It is understood that technology license agreements have already been signed with Uhde Inventa-Fischer (UIF) for PET technology and with BP for

the PTA production know-how. Status: New Tender Period: 2019 Tender Categories: Industrial & Special Projects; Plastics Manufacturing Plants

Ras Markaz Crude Storage Terminal Project Project Number: ZPR841-O Client Name: Oman Oil Company Address: AlHarthy Complex, Muscat PC 118 Phone: (+968) 2457 3100 Fax: (+968) 2457 3101 Website: www.omanoil. com Description: Build-Own-Operate (BOO) contract for the construction of a crude oil storage terminal with capacity of up to 200m barrels at Ras Markaz. The terminal will be located in Al Wusta region of Oman, 70km north of Duqm. It will be built in phases and serve the storage requirements of the new refinery in Duqm and provide blending facility for crude. On completion, it will be the largest crude storage terminal in the Middle East. Client has announced that this project is final stages of design. The EPC contract is expected to be tendered by end of 2015. . Period: 2018 Status: New Tender Tender Categories: Gas Processing & Distribution; Oilfields & Refineries

Ammonia Plant Project - Salalah Free Zone Project Number: WPR263-O Client Name: Takamul Investment Company Address: Bayt Muscat Bldg., Mezzanine Floor, Al Ghubra, Muscat 130 Phone: (+968) 2452 9000 Fax: (+968) 2449 4986 Website: www.takamul.com Description: EPC contract to build a a major Ammonia Plant

May 2015

MIDDLE EAST INFRASTRUCTURE TENDERS

with capacity of 1,000 tonnes a day. It is understood that a tender for the EPC contract is expected to be floated during the second quarter of 2015, after prequalifying several companies to bid. The feedstock will be sourced from the Salalah Methanol project, which is 10% owned by the client. Period: 2017 Status: New Tender Tender Categories: Industrial & Special Projects

Duqm Seawater Supply Facilities Project Project Number: ZPR1354-O Client Name: Duqm - SEZAD Address: Bareeq Al Shatti, Muscat PC 103 Phone: (+968) 2450 7500 Fax: (+968) 2458 7400 Website: www.duqm.gov.om Description: EPC contract to build a seawater supply and disposal system for a new refinery. The client has invited companies to prequalify for the EPC contract. A tender for prequalified companies is planned to be floated in the third quarter of 2015 with work expected to start in the fourth quarter. Period: 2018 Status: New Tender Tender Categories: Gas Processing & Distribution; Oilfields & Refineries

QATAR Lusail Stadium Project Project Number: ZPR223-Q Client Name: Qatar 2022 Supreme Committee Address: Al Bidda Tower, 35th Floor, Doha Phone: (+974) 4475 2566 E-mail: (+974) 4484 5496 Website: cpm@qatar2022.qa Description: Construction of a stadium with capacity to seat 80,000 people. The stadium is among the new 9 stadiums that will be built for Qatar 2022 FIFA World Cup, and will be used for both opening and closing ceremonies. After the FIFA World Cup, this stadium will be used to host other cultural and sporting events. UK architects Foster & Partners has been appointed to design this stadium, and will work with sports stadium specialists Populous and Arup on the grounds. Period: 2019 Status: New Tender Tender Categories: Construction & Contracting; Leisure & Entertainment

Client Name: Ashgal Address: Al Faisal Tower, Al Corniche Street, Doha Phone: (+974) 4495 007 Fax: (+974) 4495 0777 Website: www.ashghal.gov.qa Description: The project involves building a series of deep tunnels that will serve the Doha South catchment area over the next 50 years and will eliminate the need for pumping stations in the area. Client is finalising documents with selected contractors for three design and build contracts for main trunk sewers in this project. Award for the 45km of 3,500mm and 4,000mm pipeline, divided into northern, central and southern sections is expected to be announced imminently, with construction work commencing on June 1, 2015. All other contracts are in the tender process for prequalified bidders and will be awarded by the end of 2015. The TSE pipeline design-build contract will be issued as an open tender. Period: 2018 Status: New Tender Tender categories: Sewerage and drainage

KUWAIT Al Khiran Mixed-use Development Project Project Number: NPR045-K Client Name: Tamdeen Address: Souk Al-Kuwait, Safat Phone: (+965) 246 8881 Fax: (+965) 246 8882 Description: Development of a mixed-use scheme comprising a shopping mall, two freehold residential towers, a serviced apartment building and an upscale hotel. Period: 2019 Status: New Tender Tender Categories: Construction & Contracting

Produced in association with Middle East Tenders

Inner Doha Re-sewerage Implementation Strategy Project Project Number: IA12/13C727

May 2015

INFRASTRUCTURE MIDDLE EAST

TEN GCC AIRPORT PROJECTS

GCC AIRPORT PROJECTS Airport projects are yet to feel the sharp edge of the fiscal axe being wielded by GCC countries to cope with falling oil prices. Will their luck hold?

INFRASTRUCTURE MIDDLE EAST

May 2015

Al Maktoum International Airport expansion

Country: UAE Owner: Dubai Airports Budget: $33bn Progress: Enabling works The expansion plans for Al Maktoum International Airport was first announced in September 2013 after the start of passenger operations. Existing facilities include a single A380 compatible runway; a passenger terminal with capacity of 5m passengers per annum (expandable to 7m); a cargo terminal building with a capacity of 1mtpa and a 92-metre air traffic control tower. The planned expansion, to be executed in two phases, will enable the airport to accommodate more than 220m passengers a year. The first phase will accommodate 120m passengers annually and accommodate 100 A380 aircraft at any one time. In March 2015, UK-based Leslie Jones Architecture was commissioned to work on a commercial design strategy for the airport.

TEN GCC AIRPORT PROJECTS

Hamad International

Country: Qatar Owner: New Doha International Airport Steering Committee Budget: $18bn Progress: Phase 2 cleared After being plagued by a 10-year delay, Phase 1 of Hamad International Airport started operations in April 2014 with a capacity of 30m passengers a year and a 600,000 sqm passenger terminal building. The project covers 28 sq km. In December 2014, phase two was cleared with the fourth quarter of 2015 set as the deadline for awarding the design contract, completing the design works and deciding the budget. The government is planning to invest $3bn in the third phase, which will take the capacity to 53m passengers a year and increase the size of the terminal to 900,000 sqm. In March, the New Doha International Airport Steering Committee invited consultants to bid for the programme management of the future expansion works.

KUWAIT AIRPORT EXPANSION

Country: Kuwait Owner: Directorate General of Civil Aviation Budget: $4.8bn Progress: Delayed The project involves increasing initial capacity to handle 13m passengers a year by 2016, with the flexibility to increase it to 25m passengers in the second phase and 50m passengers a year in the third phase. The expansion includes construction of a new terminal building and extension of the existing runways, construction of a hotel, car parks and associated aprons and remote stands. In November 2014, a consortium of Kharafi National and Turkey’s Limak Holding was awarded the contract. Recently, state news agency KUNA reported that a tender committee of public works ministry has recommended that all bids to construct the new terminal be rejected. According to media reports, the lowest bid exceeded the estimated cost of the project by 39% and did not meet technical specifications.

King Khalid International Airport Expansion

Country: Saudi Arabia Owner: General Authority of Civil Aviation (GACA) Budget: $4bn Progress: Terminal 5 on track King Khaled International Airport in Riyadh is the second biggest airport in Saudi Arabia, after Jeddah. In 2013, a joint venture of Turkey’s TAV and local AlArrab Contracting Company was selected to build Terminal 5 on this scheme – currently, the airport consists of four passenger terminals (only three of which are in use). The expansion programme will extend capacity to 35m passengers a year from the existing capacity of 20m. In October last year, Al Mabani General Contractors Company was awarded a $90m contract to carry out the taxiway and airplane parking package. The entire programme is expected to be completed by 2017 with the airport starting operations in January 2018. May 2015

INFRASTRUCTURE MIDDLE EAST

TEN GCC AIRPORT PROJECTS

ABU DHABI Midfield Terminal Building

Muscat International Airport

Country: UAE Owner: Abu Dhabi Airports Budget: $3bn Progress: Opening in 2017

Country: Oman Owner: Oman Airports Management Company (OAMC) Budget: $1.8bn Progress: Behind schedule

The Midfield Terminal Building project at Abu Dhabi International Airport is expected to achieve 60-65% completion by the end of this year. In an interview with Gulf News in March, Chairman Ali Majed Al Mansouri said there has been “some changes” to the design, but that construction remains on schedule. Abu Dhabi Airports has hired the Operational Readiness and Airport Transfer (ORAT) team that will assess the readiness of the terminal, he said, while staff and dummy passengers will test the terminal from the first quarter of 2017. Alongside the MTB, work on the airfield and terminal taxiway are progressing as well. Last month, the client approved 12 bidders for the land-side support facilities contract. Also, Smiths Detection was awarded a $125m contract to supply the new terminal with security equipment.

INFRASTRUCTURE MIDDLE EAST

May 2015

According to Middleeasttenders.com, the project is set to be handed over in early 2016 almost two years behind its planned completion date of April 2014. In December 2014, Oman Air’s A330 aircraft landed on the new runway to mark the official inauguration of Phase 1 of this project which also included air traffic control tower and civil aviation building. Currently, the structural steel is almost in place, the cladding is in progress along with MEP systems and stone work. The new facility will have a capacity of 12m annual passengers in the first phase, 24m in the second, 36m in the third, and 48m in the final phase. Nearly 2.41m people used the airport for international or domestic travel in the first quarter of this year.

Prince Mohammad Bin Abdulaziz Airport Expansion - Phase 1

Country: Saudi Arabia Owner: GACA Budget: $1.4bn Progress: Test runs More than a million Hajj pilgrims use the Prince Mohammad Bin Abdulaziz Airport each year and, together with around 4m Umrah travellers, make it the fourth busiest airport in Saudi Arabia. In 2013, a consortium led by Turkish construction giant TAV was awarded the buildoperate-transfer (BOT) contract for the phase 1 expansion of Prince Mohammed Bin Abdulaziz Airport in Medina, the first airport privatisation deal in Saudi Arabia. The consortium will operate the airport for 25 years. The work on first phase 1, which involves increasing the capacity of the airport from 4m passengers per year to 8m passengers, has been completed on schedule, and test runs have commenced. The second and third phases will increase capacity to 14m and 27m passengers a year respectively.

TEN GCC AIRPORT PROJECTS

Bahrain International Airport Expansion Phase 1

Salalah International Airport Expansion Phase 1

Country: Bahrain Owner: Bahrain Airport Company (BAC) Budget: $1bn Progress: Enabling works

Country: Oman Owner: Ministry of Transport & Communications Budget: $765m Progress: Opening 2015

Bahrain International Airport is the home of Gulf Air and receives nine million passengers a year. Recently, Cyprus Building and Road Construction Company was awarded a $3.68m first phase of the enabling works on the project, which involves relocation of utility services away from the footprint of the existing terminal to make way for construction to start on the new passenger terminal building. Last year, the Transportation Ministry invited contractors to pre-qualify for the construction of the terminal and other buildings. The new terminal is expected to be completed by 2018, cover 201,467 sqm and accommodate 14m passengers a year. The project management consultant is Hill International.

Developed in tandem with the new Muscat airport, Salalah will be the second international gateway to Oman and is expected to boost tourism in the Dhofar region. Late last year, the Ministry of Transport and Communications (MoTC) had said that 93% of work on the airport has been completed. The new airport terminal will occupy an area of 65,000 sqm and have public parking that can accommodate up to 2,200 vehicles. Its annual capacity of 1m passengers per annum can be expanded up to 6m based on demand. In March this year, the ministry said that remaining works related to IT and security systems has been awarded to Thales security solutions.

Ajman International Airport

Country: UAE Owner: Civil Aviation Department of Ajman Budget: $571m Progress: Blueprint approved In September last year, Sheikh Ammar bin Humaid Al Nuaimi, Crown Prince of Ajman, approved the final plans and designs for the new Ajman International Airport project, a project first mooted in 2008. The airport, which will be located in the Al Manama area, will give additional impetus to the emirateâ&#x20AC;&#x2122;s tourism sector. It is expected to handle nearly one million passengers a year when completed. The detailed design phase is being led by Cyrrus UK and is slated to be completed this year, according to Ajman airportâ&#x20AC;&#x2122;s website. The Government of Ajman and Whitelake Consortium FZC, the development company planning to design and construct Ajman International Airport and a new city in the Al Manama enclave, have formally agreed on an action plan, noted the website. May 2015

INFRASTRUCTURE MIDDLE EAST

construction

leadership

Top-down facilities management

Alan Millin, Trainer, Middle East Facility Management Association (MEFMA) elaborates on why facilities management needs to re-claim its rightful place in the sustainability framework

or years the regional facilities management (FM) industry has bemoaned the fact that FM is not given the respect it deserves. “We must educate the client”; “we have to get developers and contractors to understand the value that FM delivers”. These are typical of the cries of frustration heard in the upper levels of FM organisations. Another all too common phrase is that FM comes from the west and we are far behind in terms of our capability. But are we? While much has been achieved in the western FM world we need look no further than the green building community to find the opportunity for improvement. While green building practices have been implemented for decades now, sometimes without the association of the ‘green’ tag, a more recent domain of green has emerged; that of green building rating systems, sustainability rating frameworks and governmental mandates. If we consider the FM progress made in the west in this green domain, we can start to see where our own regional efforts might well enable us to reverse some of our claims of western industry dominance. In the US for instance, the International Facility Management Association (IFMA) was formed in 1980. Some 18 years later, in 1998, the United States Green Building Council (USGBC) introduced its Leadership in Energy and Environmental Design (LEED) green building rating system to the world. Today LEED is enjoying its 4th incarnation, but how much importance does it give to FM involvement? Not much, judging by the number of references to FM and facilities managers in the latest

“If we can get FM activities embedded into green building and sustainability rating systems and regulatory frameworks, we can filter FM down from the top rather than trying to fight our way up on a client-by-client, developerby-developer basis” 28

INFRASTRUCTURE MIDDLE EAST

May 2015

LEED Reference Guide for Building Design and Construction. An electronic search of this LEED guide for the term ‘facilities management’ returns only seven hits. Of these, four are included in definitions. It is apparent from the LEED guide that FM is considered as an operational function. The benefits of including strategic FM on a green building project are largely overlooked yet we have convinced ourselves that the west leads the way in FM. If this is the case, how is it possible that with a globally recognised industry association that predates LEED by almost two decades, the USGBC seems to have overlooked the greater value that FM can bring to green buildings? Closer to home we have local green building initiatives. So Estidama, Abu Dhabi’s Pearl Rating System with a name that means sustainability, might be expected to give more recognition to FM. Sadly not. An electronic search of The Pearl Building Rating System (Design and Construction) Version 1 for the terms ‘facilities’ or ‘facility management’ returns exactly one hit. While Dubai’s Green Building regulations and specifications don’t represent a green building rating system, the fact that the government has issued them confirms its commitment to going green. But the number of instances of ‘facilities management’ in the guidelines? Zero. Dubai’s green building practice guide does, however, make a clear commitment to the principles of sustainability. The problem is, of course, that green buildings in isolation are not necessarily sustainable. Through both Estidama and Dubai’s green building regulations, we can see the intent to support sustainability but there is still something missing. Similarly, in Qatar, we find the

Brought to you by KONE MIDDLE EAST LLC Tel: +971 4 279 4500 www.kone.ae

construction

Global Sustainability Assessment System (GSAS). GSAS informs us that one of the societal benefits of adopting sustainability practices is reduced operation and maintenance costs. Under the Management and Operations category, GSAS lists submetering, commissioning and leak detection. All these are important but how a building actually works for its occupants is also an essential consideration. Much of the lifecycle operational cost of a facility is made up of people-related costs such as staffing and operational efficiency. This is, of course, one area where strategic FM comes pays dividends. Case studies show the impact of including FM activities such as life-cycle costing analyses, space planning and design reviews in development projects. Early involvement of FM practitioners on a project has identified opportunities to reduce building footprints, which in turn reduces the amount of land needed. Reduced wall length offers reduced resource requirements and construction costs; considerate design reduces life-cycle operational costs while space planning can reduce time lost through inefficiencies by improving layout and circulation. FM professionals know all this, so why are we still struggling to get FM involved at the outset of many projects? There are many reasons, not least a lack of understanding of what FM is and the value it offers. Indeed, some FM business leaders struggle to clearly articulate the value their organisations offer. If we can get FM activities embedded into green building and sustainability rating systems and regulatory frameworks, we can filter FM down from the top rather than trying to fight our way up on a clientby-client, developer-by-developer basis. We do not need anyone in the west to tell us that FM is a leadership function. We already know it and organisations like MEFMA and the Emirates Green Building Council (EGBC) are putting that message out for us. What we do need is active industry support to guide and help these and other regional organisations to convince regulators that FM will directly support their sustainability goals. FM offers clear environmental, social and economic benefits along with, through the specific regional expertise that we are fortunate to have available, the essential consideration for the tradition and culture of the countries in which we operate. Itâ&#x20AC;&#x2122;s time to promote it. May 2015

INFRASTRUCTURE MIDDLE EAST

COVER STORY

EXCLUSIVE INTERVIEW

Global Game Changer ACWA Power’s Paddy Padmanathan strikes a blow for renewables By Anoop K Menon addy Padmanathan, CEO, ACWA Power is all energy during our interview, the delight of achieving the lowest price for solar PV that the world has ever seen visible for all to see. In January this year, the Dubai Electricity and Water Authority (DEWA) stunned the world with the result of the bids for phase 2 of Mohammed bin Rashid Al Maktoum Solar Park. ACWA Power’s winning bid, coming in at under 5.84 cents /kWh (or just under $0.06 a kWh) without subsidies, set a global milestone for utility-scale solar power generation. After a patient chase, Padmanathan agreed to go on record to quash rumours and dispel doubts on how ACWA Power put together the lowest Levelised Cost of Electricity (LCOE) that helped it clinch the contract. The answer to that question, he notes, lies in ACWA Power’s vision and track record. In the 10 years of its existence, the Saudi Arabia-based developer, investor and operator of power generation and desalinated water production plants has grown its contracted capacity to 18,000MW of power and 2.5m m3/day of desalinated water with operations that span 14 countries across the Middle East, Africa and South East Asia. The vision driving this growth is a simple one – to be a reliable supplier of electricity and desalinated water at the lowest possible price. “Without any exception, in all the projects we have won, the tariff difference between our bid and next bidder has been from 5% all the way to 31%,” says Padmanathan. “We absolutely and relentlessly focus on the concept of cost plus reasonable margin pricing, absolutely never on market pricing,” In this part of the world, power demand is growing across the board at 7-8%, which makes it a seller’s market tailor-made for market pricing.

INFRASTRUCTURE MIDDLE EAST

May 2015

“As a supply-demand driven model, market pricing is certainly a money spinner,” explains Padmanathan. “But for us, more than just making money, it is about making money reliably and getting it.” Long TERM PERSPECTIVE

ACWA Power’s focus on delivering the lowest possible cost or tariff stems from the fact that the typical term of contracts in power and water projects tends to be 20-25 years, a long time by any standard. Hence, the tariff contracted needs to cover costs and returns over that period. Padmanathan explains: “We don’t make money on day 1 or 2 but over 25 years, and we all have witnessed how the world turned upside down in the past 10 years.” Typically, in 20-25-year contracts, the earnings in the initial first 10 years or so mainly go towards servicing the project’s debt component. Only in the later years, the developer is able to collect his time/cost adjusted return on equity. BY THE NUMBERS

2004

The year ACWA Power was founded

The number of countries where ACWA Power has its operations

5.85 cents/kWh Lowest price for solar PV project achieved by DEWA’s 200MW IPP

20%

Share of panel costs in the tariff

All the while, the developer has to ensure that his tariff stays relevant as the client will be buying new capacity at lower tariffs. By keeping its tariff low right from the outset, ACWA Power can ensure that it remains one of the lower cost service providers throughout the term. “We don’t want to be avaricious, we don’t want to gamble. We want to reliably get our money back, and for that, we believe we need to keep the cost as low as possible,” says Padmanathan. The reality that ACWA Power controls only a couple of elements of the cost means it has to closely work with the people who control rest of the elements to drive costs down while convincing them to jettison market pricing in favour of ACWA’s cost plus reasonable margin pricing philosophy. “Many of those people make their money either in a few months in some instances or in a few years. For example, the contractor who builds the plant gets all his money in three years. I, on the other hand, not only must pay him all that money but sit quietly and collect it back over 20-25 years. So, I need to convince him to develop the designs in detail, sans guesswork and margins, and get the optimum prices from the supply chain. I tell him - don’t subsidise us, but put your reasonable, normal margin and then deliver.” For example, even though cost over-run is a developer-risk, ACWA Power has had no cost over-run in any of its projects. It also claims to have consistently spent less than 50% of the smallest contingency funds built into its projects. At EVERY OPPORTUNITY

This focus on consistently delivering value ultimately helped ACWA and its consortium partner TSK deliver a “stunning tariff” for DEWA’s 200MW solar PV Independent Power Project (IPP). As with typical large power projects, the order of priority for cost reductions were capex, finance and opex. Padmanathan was at his eloquent

COVER STORY

“The reality is that PV is single digit. It is not universally 5.84 or even 6 but is single digit, for sure” Paddy Padmanathan, CEO, ACWA Power

May 2015

INFRASTRUCTURE MIDDLE EAST

COVER STORY

best when describing the different facets. “We went extensively into the market to look at the PV panels available and ended up selecting, in our view, the most efficient and cost competitively provided PV panels based on thin film technology from First Solar, the largest solar company in the world. “We selected a highly experienced, transparent, cost-competitive contractor in TSK, who were willing to roll up their sleeves and do all the detailed work, and were open minded enough to believe us that Dubai had an excellent infrastructure platform as well as excellent construction capacity and capability that we can optimise. They did the research, put it all together and arrived at a stunning Engineering, Procurement and Construction (EPC) price or capex.” “DEWA has a long track record in doing what it says it going to do, and because is very clear in the policies it publishes, DEWA has behaved itself, which means responding to contracts, honouring commitments.” “We have a fantastic track record – even if I say that myself– of delivery, getting things done over 10 years, unblemished. Of course, we had plenty of problems but we managed all those and delivered.” happy bankers

The solid track records on both sides convinced the bankers to lend more money than they normally would for such projects. “I don’t know of any power project in the region - and there have been many for the past 25 years - that has been done ever with 86% debt,” says Padmanathan, adding that the line is usually drawn at 80%. A higher debt portion, a low equity portion of 14% and the fact that debt is cheaper than equity helped check costs. The ACWA Power chief continues: “We managed to convince the banks to give a long-dated 27-year debt, something that has never been structured into a project ever in this region. That brings the cost down at a very reasonable all in a price of less than 4%.” Practising its own philosophy of taking advantage of each and every opportunity to drive down cost, ACWA Power priced its equity investment at 10%. Padmanathan explains: “DEWA is a reliable customer, the technology is reasonably safe, so why should equity be expensive?”

INFRASTRUCTURE MIDDLE EAST

May 2015

Helping contain Operations and Maintenance (O&M) costs were ACWA Power’s enormous operating capability in the region. “We have got a couple of thousand people operating 28 plants, and though all of them are fossil-fuel based, I have access to the supply chain. Therefore, when I procure consumables, I am able to optimise,” says Padmanathan. The capex, finance and opex break up of the ultra-low tariff of 5.845 cents/kWh were: 50% share for capex; approximately 33% share for financing and 16-17% share for opex costs. Under capex, PV panels account for slightly less than 40% of the cost, inverters account for 12-13% while Balance of Plant (BOP) and construction account for the rest. “I optimised my capex better than other people could have done, beat down my financing costs as much as I could and reduced my opex costs, all of which came together to give me this winning tariff,” says Padmanathan. “The important thing to understand is that we have done other renewable energy projects where we have challenged existing tariff assumptions.” In the Concentrated Solar Power (CSP) sector, ACWA Power applied its ‘lowest possible price’ model to come up with global benchmark tariffs. For the Noor 1 CSP project in Morocco, ACWA brought down tariffs from 35-50 cents/kWh globally to 18.9 cents/kWh; the competing bid was 25.1 cents/kWh. “People didn’t notice it but even in subsequent projects, we brought the tariff down further,” says Padmanathan. Thus in Noor 2 CSP project ACWA’s bid was 16.4 cents/kWh while the competitor’s was 10-12% more. pending questions

The fact remains that despite the record LCOE achieved by Dubai, the majority of the world is still thinking of solar PV in double digits and whispers about ‘trophy project’ abound. The project’s clearest endorsement came from the Director General of International Renewable Energy Agency (IRENA), who praised ACWA Power’s winning bid as “a truly landmark moment for renewables” in his speech at the World Green Energy Summit (WGES). Adnan Z Amin pointed out that “the second bidder in this contest offered a price quite close to the winner” - 6.12 cents kWhshowing that “ACWA Power’s offer, although the lowest, was not an isolated effort.” So is 5.845 cents/kWh, the new

tariff level for solar PV? “The reality is that PV is single digit,” asserts Padmanathan. “It is not universally 5.84 or even 6 but is single digit, for sure. “ He blames the “double digit” mentality on the rapid technological evolution and dramatic price changes in the renewables industry that have forced people to keep running all the time to catch up with the information. Padmanathan continues: “If I had to toss up a global PV number - provided you have the resources and don’t have to pay phenomenally for the land - the number that you should be working with is 8.5 cents/kWh and not 15 cents/kWh that most people seem to be besotted with.” As to the impact of plummeting PV panel prices on LCOE, he clarified that the panel costs’ share in the tariff is only 20% given that capex accounts for 50% of the tariff and panels make up no more than 40% of the capex. He also doubted whether the unit price will come down much further as quite a lot of efficiency has been already beaten into the system with regard to manufacturing and material sourcing. Future improvements, Padmanathan avers, will come from continuous improvement in panel efficiency, which at 16-17% leaves open the door for significant improvements. When asked whether the lowest LCOE benchmark established by Dubai has had positive spin-offs in the region, Padmanathan notes that the region’s policy makers and decision makers sought clarifications on the validity of the tariff and its repeatability. “Having understood single digit tariff is easy, achievable, realistic, they are in a position to redo the calculations and re-evaluate the cost competitiveness of renewables compared to fossil fuels,” he says. “Just like DEWA reshaped their renewables programme as a result of the benchmark tariff, I am absolutely expecting the region to be recasting its position too.” Padmanathan is confident that tomorrow, if another 200MW is bid next door on the same terms, the tariff will be the same if not lower. But this conclusion comes with a caveat: the high possibility of a US Federal Reserve rate hike. He explains: “If the base rate set by the US Federal Reserve increases, the number is going to change because the credit environment will be different, the cost of construction will be different.”

EMERGING OPPORTUNITIES IN THE WORLD’S FASTEST GROWING CONTINENT

EARLY BIRD DELEGATE DISCOUNT SAVE AT LEAST $200 IF YOU REGISTER BEFORE 17 JUNE 2015

Conference & Exhibition 15–17 July 2015 Cape Town International Convention Centre, Cape Town, Republic of South Africa For booth bookings and sponsorship enquiries, please contact: Leon Stone Exhibition Sales International T: +44 (0) 1992 656 671 E: leons@pennwell.com Andrew Evans Exhibition Sales Africa T: +27 (0) 21 930 9515 E: andrewe@pennwell.com

ADVOCATING PRACTICAL SOLUTIONS & LEVERAGING OPPORTUNITES POWER-GEN Africa and DistribuTECH Africa, will once again provide comprehensive coverage of the power needs, resources and issues associated with the current power crisis resulting in power blackouts across sub-Saharan Africa. The events will feature multi-track conference sessions covering strategic, technical and renewable topics with practical solutions and benchmark case studies and concurrent exhibition floor featuring prime movers showcasing the very latest equipment and technologies. POWER-GEN Africa and DistribuTECH Africa have quickly established themselves as sub-Saharan Africa’s leading events that cover the full power spectrum from supply to delivery, focusing on the current and future trends, as well as the needs and resources within this region of the world. This must attend event will enable you to reach and meet over 3,000 high-level industry professionals in one place, allowing networking, business and sales opportunities with key industry buyers and influencers from around the continent.

To register and obtain further information, visit www.powergenafrica.com or www.distributechafrica.com Owned & Produced by:

Host Utility:

Presented by:

Supported by:

Supporting Association:

Special Report

WETEX 2015

Solar express

Dubai Electricity and Water Authority (DEWA) is building its world-class utility strategy on a solid solar foundation

CWA Power’s winning bid, coming in at under $0.06 kWh without subsidies, was the lowest price for solar PV that the world has ever seen – a truly landmark moment for renewables and one that placed the UAE at the centre of the global energy transition.” “With strong political will for transforming the energy mix and solid and ambitious targets, like a 30% reduction in energy demand by 2030 and generating at least half of the energy needs of the Expo 2020 from renewables, Dubai is sending a clear and positive message to the world: a transition to sustainable energy is possible, today.” Two commendations in the course of a single speech, coming from Dr Adnan Z Amin, Director General, International

INFRASTRUCTURE MIDDLE EAST

May 2015

Renewable Energy Agency (IRENA), who was delivering the keynote at the World Green Economy Summit (WGES), is a sure indicator of the success and a rare global acknowledgement of Dubai Electricity and Authority’s (DEWA) sustainability initiatives. Nicolas Hulot, Special Envoy of the French President for the Protection of the Planet, too praised DEWA for leading the way in the renewable energy field

“Dubai proved that with the right framework, deployment of renewable power can be accelerated at strikingly low cost” Dr Adnan Z Amin, Director General, International Renewable Energy Agency (IRENA)

through Mohammed bin Rashid Solar Park and other initiatives and projects. He said: “The UAE is on the path to creating a new model of energy away from fossil fuels and towards a more sustainable future, and the solar sector here is very promising. Together, we are going to write a new chapter in the economy, and the year 2015 is a year of truth, action and ambition.” While the theme of the 17th Water, Energy, Technology, and Environment Exhibition (WETEX 2015) was ‘At the forefront of sustainability,’ it was solar which stole the show. The buzz created by DEWA’s announcements about rooftop solar and the 800MW third phase of the solar park weeks prior to WETEX carried over to the event as well. For the first time, the organisers allocated a separate hall for local and global companies providing solar energy technologies. At Hall 8, the Middle East Solar Industry Association

Special Report

at the event. The Roads and Transport Authority (RTA) pavilion displayed an electric bus, which forms part of the trial operation slated for launch this month. The Renault pavilion displayed Twizy, a battery-powered two-passenger electric vehicle already on sale in the UAE and the Zoe, a five-door supermini electric car, which will be launched next year in the country. MICCGreenTec’s solar powered electric rickshaw too made its debut at WETEX, though the product is primarily targeted at the export markets in Asia. ABB, a strategic sponsor, showcased its multi-standard electric car charging stations supporting CCS and CHAdeMO for DC fast charging and EN61851 standard for AC charging. NEW MILESTONES Alsa Solar Systems put on display a solar-diesel hybrid power generation system

(MESIA) hosted 11 workshops and lectures at its stand during the three days of the event. Re-enforcing the solar buzz was the spiral model of solar innovation centre at the DEWA pavilion (put out for tender last month) and prominent display of solar PV panels in the mock-up of the Hassyan Clean Coal Plant. The fly-ash storage facility’s roof is expected to host a 15MW roof-top solar PV plant. The solar theme carried over to the MoU signing ceremony as well. Among the most significant ones was the MoU with Dubai Properties Group (DPG) to encourage households and building owners to install solar PV panels to produce electricity. This is the first time DEWA that has tied up with a leading developer to promote its distributed generation programme. DEWA also signed a MoU with the Mohammed bin Rashid Housing Establishment to install LED lamps and solar panels for existing and new housing projects of the Establishment. BEYOND THE BUZZ

However, solar also had to share the spotlight with its non-renewable cousins. The highlight was the signing of a $400m contract between DEWA and Siemens for the expansion of M-Station power and water desalination plant. Under the agreement, Siemens will install a new combined-cycle power plant will add a further 700MW to the installed generating capacity of

“What the UAE is looking forward to achieve is to increase the diversity of sources of energy and improve its leading role as a global centre for research and development in the field of renewable energy” HE Saeed Mohammed Al Tayer, MD & CEO, Dubai Electricity and Water Authority (DEWA) M-Station at Jebel Ali, boosting its overall capacity to 2,760MW. The project will be completed by the end of April 2018. DEWA also entered into a MoU with Emirates National Oil Company (ENOC), which clears the way for the former to take advantage of the latter’s wide network in building the infrastructure of electric vehicle charging stations. In February 2015, DEWA launched its first charging station for electric cars at its headquarters. In the first stage, 100 stations will be built by the end of this year. The impact of DEWA’s ambitious charging stations programme was reflected in the higher number of electric vehicle exhibits

Outside of solar, WETEX 2015 also saw the debut of the French Pavilion, which showcased French companies specialised in energy, water, and environmental sustainability. First-time platinum sponsor, Ericsson, exhibited its future communications technology by showcasing how smart solutions can transform utilities such as energy, water and sewage. Ericsson’s state-of-the-art booth allowed visitors to experience how Smart Grid Network Management and Grid Monitoring will improve the reliability of electricity networks by transporting real-time data from substations, field devices and smart meters so that it can be turned into useful information for field staff, engineers and households. Colorado-headquartered TransPower Company presented its Maximum Power Transfer Solution, which eliminates nearly all the wasted electrical power in the system and enhances the electrical efficiency of the network to near unity. The UAE Water Aid Foundation, launched by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai in March this year, too participated in WETEX. The foundation aims to conduct research and studies to support the production of clean water using solar energy so that it provides new, cheap and innovative solutions for millions around the world who suffer from scarcity of water and polluted drinking water. At WETEX, the foundation displayed its mobile station PVRO that desalinates water by applying reverse osmosis (RO) technology. May 2015

INFRASTRUCTURE MIDDLE EAST

Special Report

WETEX 2015

Focussing on IoT

Taiwan-headquartered industrial PC giant Advantech has a one mission – enabling an intelligent planet

ndustry applications apart, IoT is seen as the key enabler of the concept of smart cities that governments are implementing to deal with the challenges of rapid urbanisation. The value of IoT in a smart city context is primarily derived by integrating multiple connected systems. Gartner estimates that 1.1bn connected things will be used by smart cities in 2015. Advantech, the Taiwan-headquartered global supplier of embedded and automation products and solutions, and the number one manufacturer of industrial PCs in the world see a significant role for itself in the region’s growing demand for automation and smart cities. The company not only established ‘Enabling an Intelligent Planet’ as its corporate vision in 2012, it has been fully engaged in the development of Smart City and IoT technology from the beginning. Given its market leadership and the fact that industrial computers are a core equipment of IoT, Advantech seems to be well positioned to grab a substantial piece of the smart city action. “Our definition of IoT is the integration of automation and information technologies,” said Hector Lin, Sales Director, Industrial

INFRASTRUCTURE MIDDLE EAST

May 2015

Automation Group, Advantech. He highlighted that the IoT uses a three-layer structure or 3i (instrumented, interconnected, and intelligence). Data for the first layer is obtained by the automation industry, which also provides the infrastructure and collects and converts information. For the second tier, companies in the telecommunications industry upload aggregated information to the cloud to form a second reliable ‘interconnected’ layer. Finally, through cooperation between the hardware and software industries, data

HIGHEST VOLUME According to IDC, by 2018, governments will spend more than a quarter of their total budgets on developing IoT-based solutions. There will be cloud-based IoT solutions, and the public sector will increasingly work together with the private sector. From a technical standpoint, the importance of location services, digital maps, and satellite imaging services will play an important role.

are analysed and used to construct the third tier. Service providers then consolidate the results and deliver the information to end users, thereby integrating three unrelated industries through the IoT. “Advantech is targeting a key role in the instrumented layer,” said Lin. “What it means is that we will instrument the world’s systems. Advantech specialises in manufacturing different types of computers including industrial grade computer, embedded computer and box computer to gather, collect, transmit and deliver the collected data and also transmit them to the cloud. That is Advantech’s role in the IoT 3i.” In 2013, Advantech announced its tie-up with Intel for the development, manufacturing, testing, marketing and selling of computing platforms for the IoT industry. In December 2014, the company announced that it will collaborate with Microsoft to build Asia’s first IoT WISE-Cloud. Advantech’s key target customers are the system integrators who bring together IoT and smart city applications whether it is air pollution monitoring, intelligent transportation or water wastewater management and monitoring systems. “As a hardware and SCADA software solution provider, Advantech provides all sorts of computers, scanners, HMI

Special Report

solutions as well as SCADA solutions for system integrators to formulate their own solutions,” explains Lin. The company is focussing its attention on the GCC region which it regards as a very important market. “We understand that GCC countries’ automation industry rely very heavily on European and American solutions. Increasingly, Asian manufacturers specialised in industrial-grade PCs and open architecture automation solutions are providing competitive replacements for existing systems supplied by European and American companies. We understand that this region requires high-end automation, so we are planning to bring Asian manufacturers as well as cost-effective automation solutions to the local market.” This year, the company exhibited at WETEX 2015 in Dubai for the first time, demonstrating its latest embedded computer technologies. Company representative Janice Chou made a technical presentation on ‘Embedded Systems Enter a New Era’ at the event. Advantech is gradually making its presence felt in the region. “Water being a very important resource in the GCC, last year, we started promoting Advantech’s solutions for water that incorporate RTU and SCADA software and have signed up customers in the UAE for the same,” said Lin.

Building the EcoSystem of Smart Cities and IoT Industries

“We understand that this market requires highend automation and are planning to bring Asian manufacturers, as well as cost effective automation solutions to the local market” Hector Lin, Sales Director, Industrial Automation Group, Advantech

According to Gartner Research, the demand for connected devices will surge to one trillion by 2040. The research further indicated that there will be $166bn invested the IoT industry in 2020, especially in the transportation, retail, warehousing, medical, and manufacturing sectors. Since many reports and studies have pointed out the tremendous opportunities afforded by the IoT; Advantech President Chaney Ho believes that any related enterprise should be clear about the areas it intends to develop. Advantech is particularly optimistic about 3D printing, industry 4.0, and robots; these three industries will be the basis of the next few years’ development, and Advantech will continue to expand related strategies. Chaney added that according to Geoffrey A Moore’s ‘Crossing the Chasm,’ the majority of IoT manufacturers aiming to develop the IoT industry are still in the innovation stage; there is a chasm that must be crossed before they can access the mainstream market. Chaney emphasized that in order to leap that chasm and become a trailblazer, Advantech has five directions of push. They are applying the Sector-Lead, industry-focused business model, developing IoTWISE Cloud (Platform as a Service, PaaS) service platform, breeding large System Integrators (SIs) to accelerate SaaS (Software as a Service) application propagation, investing in and forming alliances with key upstream and downstream players, and establishing Advantech as an Industry 4.0 Customer Experience Centre.

May 2015

INFRASTRUCTURE MIDDLE EAST

SPOTLIGHT

Robert Carr, Director - Environment & Sustainability, WSP l Parsons Brinckerhoff

Jeff Larkin, Director - Power and Water, WSP | Parsons Brinckerhoff

his year’s WETEX event welcomed who’s who of the industry, with some of the leading firms exhibiting their expertise. We met with the newly combined WSP | Parsons Brinckerhoff, and took the opportunity to ask lead directors Jeff Larkin, power & water, and Rob Carr, environment & sustainability, about the challenges and opportunities in their respective sectors. Jeff is a chartered Electrical Engineer specialising in programme and project management of power generation, transmission, distribution and SCADA projects. He has worked in the field for 33 years. Rob is Chartered Environmentalist with nearly 20 years’ consultancy experience working across a range of environmental and sustainability issues, specialising in property, infrastructure and urban development sectors.

with depleting resources and achieving the necessary power generation with minimum impact on the environment are the key challenges of today. Finding power generation solutions that can continue to do this into the future will be even more challenging. The electricity markets in the Middle East have gone through structural reform over the past 20 years, but this is not yet complete. Integrated Independent Water and Power Projects (IWPPs) have been introduced into the UAE, Oman, Bahrain and Qatar, but this is now also happening in Kuwait and Saudi Arabia. Rob Carr: While great strides have been made in recent years, a key challenge in this region is that environmental issues are sometimes not given enough consideration in the early planning stages of projects. Often specialists will be engaged only after major decisions like the site and process technology have already been selected thus limiting the scope for significant environmental improvements to be made to the project.

What do you see as the biggest challenge for this year? Jeff Larkin: Meeting growing demand

INFRASTRUCTURE MIDDLE EAST

May 2015

What are the opportunities in the market? JL: The Middle East is a growing market which therefore presents many

opportunities. There are many project opportunities as we try to keep network growth and power generation ahead of the demand curve, which with growth levels of 10-14% is a challenge for any utility. We will see greater interconnection across the region and greater use of the GCC Interconnector grid, which to date has not been fully utilised. We are likely to see more High Voltage DC (HVDC) projects being developed in the future, especially in Saudi Arabia, but also in the UAE. Power generation is very dependent upon gas at present, but we are now seeing more diversification of the fuel supply mix into nuclear, clean coal and solar. Nuclear is likely to be the biggest ‘green’ power generation source in the future and we see many opportunities in the future in this market. RC: Development of the ME region will require huge investment into new power and water projects as well as upgrading existing ageing facilities. Our experience and capability means that we are well positioned to help minimise the environmental impacts and ensure the long-term sustainability of this sector. This could be through providing environmental input to the development of power and water strategies on a national and regional level; contributing to site selection and technology studies; undertaking detailed environmental and social impact assessments of planned projects; and providing ongoing support during the construction and operational phases. How do you meet your clients’ needs? JL: Our clients want up to date technical expertise, so we must always stay ahead of the technical development curve and maintain our reputation for being able to deliver this type of knowledge. Providing clients with solutions to key power delivery problems will always be our mainstay. That is what the company was founded on and we must always maintain our focus on technical expertise. RC: Our local core team ensure our clients have hands on, on the ground support to drive their projects forward. We bring the best practices to the Middle East region based on our local and global specialists. With the newly released Dubai Green Economy Agenda and Energy Strategy 2021 we think we have a lot to contribute to our clients and to the industry.

CITIES

he Internet of Things (IoT) is something that has been spoken about widely in recent months – particularly by technology companies who see the future. But for people, businesses and governments across the Middle East and the world, it’s important that we are clear about the disruptive capabilities and advantages it offers. IoT is taking us to a more efficient, more intelligent, happier place – featuring streamlined services and greater control of one’s own time. This is crucial for cities as they look to balance rising populations with an environment in which people and business can still thrive. In what is the ‘age of dialogue,’ IoT will allow people to enjoy a ‘two-way’ exchange with physical ‘things’. For instance, think of the time people would save if city centre parking spaces could communicate with them in advance of their arrival? For public transport, no more waiting for hours on end for the next bus. City transport systems would be able to communicate directly with residents via a city app, powered by IoT to alert them to the location and estimated arrival time of the next bus or tram. Even before you leave home, you are able to communicate with your city. This real-time information exchange will save people time, mitigate environmental impact and create value for businesses. Similarly, smart homes in smart cities will save resources and save residents money – a win-win for people and governments. Think of the potential costs saved if the washing machine, heating or air-conditioning could respond when energy costs were at a low. To take the idea further, IoT is about integrating our increasingly smart handheld devices with the tasks, services, possessions and cities that directly and indirectly impact the success of our day-to-day existence. And like all great innovations, necessity is its driving force. What’s exciting is that the smart city, the smart home and the smart vehicle are not pipe dreams, but a reality. Powered by IoT – smart cities are already featuring intelligent buildings, responsive roads and public transportation systems that are all connected to each other – and people – through sensors – something Bosch leads the development of.

New urban paradigm The convergence of physical things with the internet present new economic opportunities for business and people in cities By Volker Bischoff, General Manager and Vice President, Robert Bosch Middle East

“IoT is about integrating our increasingly smart handheld devices with the tasks, services, possessions and cities that directly and indirectly impact the success of our dayto-day existence”

For example, the densely populated principality of Monaco, known as much for traffic and congestion as glamour and celebrity, is exploring the full potential of IoT. Called Monaco 3.0, the pilot project aims to demonstrate – and fully realise – the competitive advantage of a smart city, delivering commercial benefits to businesses and social benefits to citizens. To elaborate, bus networks in the city will be able to connect with visitors and commuters offering real-time information on the arrival of the next bus. Drivers will be able to communicate with parking spaces in the city through their smartphones, allowing commuters to save time and energy by quickly identifying parking available parking spaces. Incidents around the city can be instantly reported by people, allowing authorities to mobilise a swift response, and traffic lights will respond when emergency services are approaching – allowing them to reach their destination quicker. It’s simply about connectivity. Dubai similarly has a great opportunity to demonstrate leadership in this newly framed urban paradigm. As the UAE continues on its journey of reinvention beyond oil to a future defined by knowledge, technology and innovation, its agility and enterprise may prove to be one of the most compelling economic success stories of the 21st century. The recent Government Summit was further evidence of this transition in action. Time and time again, the leadership of the UAE has re-emphasised its commitment to investing in technology and innovation – a strategy designed to deliver long-term opportunity, prosperity and security. And even as the oil-price instability raises the spectre of a future without oil revenue, the vision remains unyielding. “In 50 years, when we might have the last barrel of oil, the question is: when it is shipped abroad, will we be sad?” asked HH Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi during his keynote address at the summit. His response was that if the UAE continues to make smart investments in strategic sectors, that moment will be one of celebration – not sadness. Technology investment, ubiquitous network availability and clear vision are key ingredients to the IoT ecosystem that technologists envision. And, in what is the UAE’s year of innovation, I am confident that it will continue to make the strides required to realise its smart ambitions. May 2015

INFRASTRUCTURE MIDDLE EAST

TECHNOLOGY

DIGITAL METHODS

Reality computing Technologies that capture the physical world digitally and deliver digital information physically are transforming civil infrastructure projects By Terry D Bennett ny design process must take into account the physical context of the design. Wire harnesses must be mounted within a car’s structural frame. A building’s MEP systems must snake through interstitial spaces. But the design context and the size of most infrastructure projects set them apart from other design processes. The root origin of the word ‘infra’ is a Latin prefix meaning below or beneath, which points at the importance of Reality Computing for civil engineering. Infrastructure projects rest on the physical world beneath us. Their design context includes the physical world around us and, when constructed, affect the physical world in ways other projects and products do not. Existing conditions (such as surrounding landscape, existing structures, communities, and so forth) have to be accounted for before design can even begin, and for many projects, construction will occur in highly constrained physical environments. Therefore, the integration of the physical world into the digital design and delivery process is particularly important for civil infrastructure projects. Reality Computing technologies help civil engineers digitally capture existing conditions of the area below and around a proposed infrastructure project,

digitally design the project in the context of that setting, and digitally reshape existing terrain and build new infrastructure. For example: Capture: The physical world can be digitally captured using technologies such as 3D laser scanning to accurately record the physical world. Compute: Software tools are used to both process and integrate reality data directly into design and construction workflows. These tools connect the digital capture of the physical world (capture) and the physical delivery of the digital world (create). Create: Digital design information can be materialised using technologies ranging from machine-controlled grading to prefabrication. Digital designs can also be presented visually in the context of the surrounding environment. For civil infrastructure projects, the physical world is usually digitally captured using photogrammetry, ground penetrating radar, or 3D laser scanning. New capture capabilities are being introduced in ever more varied devices, such as scanners or digital cameras mounted on drones. Some of these data capture techniques have been used for decades to produce highresolution models, but were cost prohibitive for most projects. In the past several years, new technology (in the form of both hardware and software) makes capturing the physical world less expensive and time consuming.

For example, 3D laser scanning (also called LiDAR) is a relatively new technology that is quickly becoming an infrastructure industry standard for collecting data. The accuracy and sheer quantity of the data, and the speed at which it can be gathered, is opening up new possibilities in a sector that has been technologically stagnant for many years. Though many design and construction firms outsource data capture services, there is a growing trend for insourcing these capabilities as the technology becomes more accessible and no longer requires specialty firms or training. Existing conditions are often captured using a variety of technologies. For example, to document the existing conditions of an airport, the runways and surrounding terrain could be captured with laser scans, supplemented by traditional survey information for positional accuracy. Digital photography and photogrammetry software could be used to document the airport terminal and other existing structures. In addition, the power of cloud computing and social networking helps firms process and share existing conditions data more quickly and easily. This allows project teams to access and incorporate captured reality data from multiple sources, and combine that data with other existing spatial or geographical information such as GIS data, ground survey information, and digital terrain models to

The accuracy and sheer quantity of the data, and the speed at which it can be gathered, is opening up new possibilities in a sector that has been technologically stagnant for many years 40

INFRASTRUCTURE MIDDLE EAST

May 2015

TECHNOLOGY

Piers supporting elevated sections of London’s M4 motorway are being monitored and refurbished with the help of Reality Computing

Image courtesy of Atkins

more completely reflect existing conditions. Working with Reality Data

Reality Computing relies on data that captures the rich detail and variety of the physical world. This format of this data is typically point clouds (from laser scanning) or high-density 3D meshes (from photogrammetry). This data is very different from the descriptive and analytic geometry commonly associated with CAD or BIM software tools. Some scanning technology captures both XYZ coordinates and color, producing point clouds that are visually easy to understand—much like a 3D panoramic photograph that you can walk through. Compute

Existing conditions (in the form of captured reality data) can be brought into 3D modeling software to provide physical context during the design, construction, refurbishment, or management of infrastructure. This digital representation of existing conditions is used as a reference during design, to verify accuracy before and during construction, and to guide decisions for operations and maintenance. The exactness of the reality-captured existing conditions data means that the information behind decision-making is current and accurate. Designs can be digitally tested and checked to help confirm ‘fit’ before actual construction. During construction, existing conditions as well as the already as-built portions of the projects can be coordinated with future construction. The use of reality data can help avoid field rework, redesigns, work stoppages, and in some cases even lawsuits— reducing overall project costs and schedules. Project teams often combine a variety of data capture formats—including point clouds, meshes, satellite images, GIS data, and traditional survey information—based on the resolution or accuracy needed for the task, to provide a more complete view of a project. For example, existing digital terrain models, aerial photography, and GIS data alone might be sufficient to develop and present conceptual designs of a new water distribution project. But during detailed design and construction planning for the new water main, more accurate information is needed. High-definition ground-based scanning can be used to digitally represent existing conditions of the project area—developing the design of the new system using accurate terrain and above-ground utility data.

Captured reality data can also be used to analyse existing conditions of structures such as dams, bridges, tunnels for ongoing safety and/or maintenance assessments. Transportation departments for example, can use mobile LiDAR scanning with feature recognition software to survey highway bridges and extract measurements to identify sagging.

data with multiple data sources representing existing conditions of the surrounding city and landscape. These visualisations illustrated how the various design options impacted key areas along the roadway—from landscaping at tunnel portals, to various lighting alternative designs in both day and night. Physical realisation

Create

The final leg of Reality Computing is transferring captured and modified reality data back to the physical world. For civil infrastructure projects, this can be accomplished digitally (via project visualisations) or physically (with machinecontrolled earthworks, prefabrication, and other digital construction techniques). Reality Computing can also be used during the construction process to document, monitor, and validate progress—measuring percentage of completion and comparing as-built work to its as-designed state. Project visualisations

Reality data and design data can be combined to create very realistic project visualisations. These visualisations can support project communication, planning approvals, public outreach, and construction planning. For example, during the design of San Francisco’s Presidio Parkway, the project team created numerous visualisations (both still images and animations) to support project communication with the client and other project stakeholders, and for public outreach and approval efforts. The team used a specialised animation and rendering software solution to create photorealistic visualizations, combining the roadway design

The use of Reality Computing for project realisation, particularly GPS-guided grading, is becoming standard on transportation and other infrastructure projects. Other common uses of Reality Computing during infrastructure construction include: •Using 3D scanned point clouds of existing conditions merged with design data to help project teams see how their designs fit and if the construction sequences are going to work within the context of the surrounding environment. •Scanning in-place construction to help contractors and owners determine if the construction matches the design and, if not, analyse why. This helps project teams assess cost implications and make important decisions regarding future project construction. •Comparing scans of in-place construction to design models can also be used for factbased decisions regarding the release of funds to contractors (30%, 60 %, etc.) Terry D Bennett, LS LPF MRICS ENV SP LEED AP, is the senior industry program manager and lead strategist for civil infrastructure at Autodesk. Article excerpted from the whitepaper ‘Reality Computing for Civil Infrastructure’ by Terry D Bennett May 2015

INFRASTRUCTURE MIDDLE EAST

OIL & GAS

digging deep

From digital to data driven oil fields

Atif Kureishy, Principal and Dr Mahir Nayfeh, Senior Vice President – Technology and Analytics, Booz Allen Hamilton MENA outline the rewards and risks for oil fields leveraging data he recent fall in oil prices has in many ways masked a deeper endemic challenge affecting the oil industry. While lower prices have meant National Oil Companies (NOCs) are under less pressure to increase volumes – good news for the region’s aging oil fields - lower prices ultimately mean lower revenues, and regardless of the operating environment oil companies are being forced to do more with less. Lower prices generally mean slower hiring, which could exasperate an already dire labour shortage. And, regardless of the economic climate, safety should remain a top concern but with reduced budgets organisations will need to be smarter about their asset management and maintenance strategies. The answer lies in data. For the industry to overcome these challenges and secure its future it must effectively leverage the data it is producing to drive business decisions. In short, organisations must move from digital oil fields to data driven oil fields, and in doing so enhance production, gain greater labour utilisation, and improve their HSE performance. Fully utilised, digital oil fields will help maximise oil recovery, create operational efficiencies, reduce – and possibly eliminate – unplanned down time and boost profitability. Leaner, smarter and more streamlined data-driven oil fields

INFRASTRUCTURE MIDDLE EAST

May 2015

‘The truth is that today less than one per cent of the data currently available on a modern oil rig is being captured and analysed’ will also utilise talent better, instantly connecting the best minds with the critical problems wherever they are in the world. Currently, most of the major oil service companies offer real-time operation centres to centrally monitor drilling operations around the world. However, what is not being done is integrating the historical performance data from previously drilled wells to drive decisions about what parameters should be used while drilling new wells. Instead there is a heavy reliance on experience and trial and error. This process is not only inefficient and prone to result in costly down errors but also—because of the retiring of senior staff and not enough people to replace them—it’s not sustainable. Instead, organisations need to migrate to a model where they are integrating the historical data including: drilling mechanic logs, mud weights, and incident reports, with real-time operational data. This will have a two-fold impact on productivity. First, it allows organisations to move more quickly from the planning to the execution phase of drilling operation by quickly identify the optimal parameters to be used. Next, it

can help operators predict and respond to incidents (ie. Stuck-pipe) before they occur by searching for patterns in the real-time data and comparing it to historical events. And that is only the tip of the iceberg. We have seen how effective use of data can revolutionise a wide range of industries from telecommunications, to finance, to healthcare, to government and defence. While the challenges in the oil and gas industry are nuanced they are not wholly unique and could benefit a great deal from the lessons learned of other industries. However, to realise the benefits of data driven oil fields, the basic building blocks must be there. Our white paper on the future of digital oil fields focuses on the crucial elements necessary for successful implementation specifically: securing, integrating and analysing the vast data these organisations have at their disposal. Less than one per cent

The truth is that today less than one per cent of the data currently available on a modern oil rig is being captured and analysed. This means three things. First, money is being left on the table in the form of suboptimal performance. Second, human resources are being underutilised because too much of their time is being taken up doing things that computers can do. Finally, if predictive analytics aren’t being employed to monitor critical equipment operators are not doing all they can to ensure that their people are

OIL & GAS

working in the safest possible environment. That is not to say the industry has always been slow to adopt technology. In fact, it has in many ways been decisive in its deployment of technological advances and since the 1960s has moved to utilise satellite transmission for logging data, down-hole pressure and temperature gauges, on demand data delivery, web-based monitoring of Electrical Submersible Pumps (ESPs), remote operation centres, realtime fracturing control, and much more. Technological advancements in the industry have allowed for the execution of increasingly complex projects, allowing for the rapid and reliable recovery of hydrocarbons in even the most challenging environments. However, historically high-prices and large margins have meant that industry could get away with a great deal of inefficiency. Now, the rising cost of production due to increased complexity in oil recovery coupled with the volatility of oil prices are pressurising companies to optimise their performance. Here again, data holds the answer. Successful vertical data integration can optimise virtually any individual process, and when done horizontally across the production value chain, and secured with robust cyber defence measures it can give a real boost to production. If you take the Gulf of Mexico for example, a full four per cent of production is lost due to downtime, and estimates are that in regionally that number could be much higher. Greater utilisation of automation techniques and interdepartmental data could drive these numbers down significantly. Filling in the gaps

So how can digital oil fields address the knowledge deficit? Closing the labour and skills gap represents one of the industry’s major—if not primary—barriers to sustaining growth and maximising profitability against a tide of rising operating costs. Whichever way prices go, the oil industry’s ability to reach full value will be inhibited without skilled human capital. This industry-wide labour shortage means companies are struggling to capture the institutional knowledge of senior staff, and maximise the utilisation of their employees. A recent study found that 75% of international oil companies felt staffing challenges were responsible for project development delays, and 59% of companies said the skills gap was a reason for greater industry risk

‘Data driven oil fields will help defend the industry from this skills gap by automating processes and socialising institutional knowledge through management systems’ taking and their primary concern. In the Middle East, 50% of the region’s skilled oil and gas professionals are expected to retire within the next five to seven years. Data driven oil fields will help defend the industry from this skills gap by automating processes and socialising institutional knowledge through management systems New, inexperienced employees will be able to leverage the technical knowledge of former colleagues – which is be captured by effective knowledge management systems –with targeted training and competencies in the use of technology and interpretation of data. Further to production optimisation and labour utilisation and equally intrinsic to the future of oil is safety. Health, Safety, Security & Environment (HSSE) is an ever present concern in the industry. As operating environments become more complex and regulations become more stringent, companies need to remain vigilant in their efforts to produce hydrocarbons in a way that is safe and environmentally friendly. The drive to monitor and reduce operational and environmental risk must be constant, and will result in it being perceived as a more attractive industry for the younger aspiring workforce and less of an environmental demon. Again, data captured and analysed in the digital oil field will predict machine failure or pressure irregularities before a major situation arises, allowing data teams to communicate with operations personnel in real time to avoid incidents and reduce accidents. Inherent risks

What we must not forget, is that while the vast opportunities of data driven, digital oil fields are real and tangible – so are the inherent risks. The digital age brings with it the increasingly real threat of cyber-attack and the oil industry is right at the top of many criminals hit list. According to research, more than 6,500 oil and gas companies were the victims

of cyber criminality in 2014 and the cost of those breaches is sky rocketing. But what’s particularly relevant for this region, is that hacktivism, once directed at US and European-based multinationals, will continue to develop as a major threat to institutions in the Middle East. So much so, that the cyber threat is fast evolving into one of the most serious economic and national security challenges we face as a region. And that threat will only intensify. The targets are major institutions in the Middle East because economic prosperity and light-speed growth, have outpaced regional and local organisations’ ability to manage threats. That gap must be closed if we are to realise the potential of digitisation. At the heart of that threat are the region’s primary institutions – such as those operating in the energy space. The attack on Saudi Aramco in 2012 was a wake-up call to the MENA energy industry and no one wants to be the next big victim. Energy companies must move beyond simply putting up electronic barriers to protect their IP, supply chain, operations and networks and instead build the capability for proactive advanced threat detection across a now multi-dimensional threat surface. The Aramco attack was believed to be a state-sponsored advanced persistent threat (APT). The virus, called Shamoon, was delivered via USB-stick onto a personal computer connected to the company’s internal network – possibly by a rogue insider - destroying 30,000 computers. In today’s digital world, business continuity and crisis management plans must include cyber incident response plans because nations, customers and the industry can no longer risk a digital disruption that results in major physical, economic or reputational damage. With a robust cyber security strategy that is integrated into a holistic data driven approach to oil field management, merging infrastructure, data, and processes within and across departments – this critical industry can begin to answer some of its most challenging 21st century questions. (For further information on the competitive advantage offered by a data driven approach to oil and gas production in the Middle East, download the full white paper from the Booz Allen Hamilton MENA website - mena.boozallenhamilton.com) May 2015

INFRASTRUCTURE MIDDLE EAST

CONSTRUCTION AND SUSTAINABILITY AWARDS OF EXCELLENCE NOVEMBER 24, 2015 JUMEIRAH EMIRATES TOWERS, DUBAI www.bigprojectmeawards.com

AWARDS 2015

THE INDUSTRY EVENT

THAT IS GROWING EVERY YEAR REcogNISINg INDUSTRY ExcEllENcE

GOLD SPONSORS

FOR AWARD NOMINATION ENQUIRIES

FOR TABLE BOOKING & SPONSORSHIP OPPORTUNITIES

GAVIN DAVIDS EDITOR +971 4 375 5480 GAVIN.DAVIDS@CPIMEDIAGROUP.COM

RA Z ISL A M PUBLISHING DIRECTOR +971 4 375 5471 RA Z.ISL A M@CPIMEDIAGROUP.COM

SILvER SPONSOR

SUPPORTING PARTNERS

CATEGORY SPONSORS

INFRA PEOPLE

Emaar AGM re-elects board The 17th Annual General Meeting (AGM) of Emaar Properties reelected its Board of Directors. The re-elected board comprises of Mohamed Alabbar (Chairman), Ahmad Al Matrooshi, Hussain Ahmad Dhaen Alqemzi, Ahmed Jamal Hassan Jawa, Abdul Rahman Hareb Rashed Al Hareb, Marwan Iqbal Mohammad Abdullah Abedin,

Point of View

Jamal Hamed Thani Butti AlMarri, Jamal Majed Bin Thaniyeh, Arif Obaid Saeed Aldehail and Abdulla Saeed Balyoahah. In Dubai, Emaar is currently focused on two joint venture mega-developments - Dubai Creek Harbour, developed in association with Dubai Holding, and Dubai Hills Estate, a JV with Meraas Holding - jointly valued at over $55bn.

Mouchel’s new Delivery Director for the UAE International infrastructure and business services group Mouchel has strengthened its Middle Eastern Infrastructure team with the appointment of Leighton Greenland to lead the operational delivery of projects and client relationships for the UAE. With over 20 years’ experience gained in Europe and the Middle East, Leighton joins Mouchel with a wealth of experience in business development, project management and operational management.

Atkins appoints new Middle East Property MD Atkins has appointed Tom Hasker as managing director for its 750-people strong property division in the Middle East. Tom has been with the Atkins group, as Middle East director of project management for Faithful+Gould, since 2013. Tom will be responsible for spearheading Atkins’ strategic growth in the property sector across the Middle East, with a focus on the UAE, Saudi Arabia, Qatar and Oman. He has more than 18 years’ experience in client and design management, project management and property development.

Deputy CEO for World FZO The World Free Zones Organisation (World FZO), the notfor-profit association for free zones around the world, has announced the appointment of Abdulla Qassem as Deputy CEO. A UAE National, Qassem was previously Senior Vice President of the Dubai World Trade Centre (DWTC). With 22 years of global business experience, he has served as the UAE Delegate to UNESCO and was one of the key members of the 2020 World Expo bid committee. In his new role at the World FZO, Qassem will focus on creating long-term relationships with multilateral organisations and government entities.

Adnan Z Amin, Director-General, International Renewable Energy Agency (IRENA)

We undertook our first REmap study across the 26 countries responsible for three-quarters of global energy demand in 2030. It found that doubling the share of renewables in these countries by 2030 can reduce CO2 emissions by 8.6bn tonnes compared with business as usual. By 2030, the net savings of this doubling, from substitution of conventional energy and health and environmental benefits, will at least amount to $123bn and could amount to a huge $738bn. And incidentally, this is probably the most cost-effective and quickest way for us to ensure that we remain below the threshold of catastrophic climate change. The UAE is taking advantage of this opportunity, not just with the development of solar plants. Here in Dubai, rooftop solar PV projects totalling 8.5GW are to be linked to the electricity grid. This will result in cost savings for consumers via net metering and create a new distributed energy model that will become an example to all. With strong political will for transforming the energy mix and solid and ambitious targets, like a 30% reduction in energy demand by 2030 and generating at least half of the energy needs of the Expo 2020 from renewables, Dubai is sending a clear and positive message to the world: a transition to sustainable energy is possible, today. (Excerpted from the speech delivered at the 2nd Annual World Green Economy Summit in Dubai last month) May 2015

INFRASTRUCTURE MIDDLE EAST

EXECUTIVE INSIGHT

Ossama Tawfick

â&#x20AC;&#x153;Over-pressurisation of equipment or piping is a major safety concern in a (process) plantâ&#x20AC;?

Managing under pressure Ossama Tawfick, Regional Senior Director, MENA, AspenTech, explains how the use of dynamic simulation ensures process safety and accuracy afety is of paramount importance within the petroleum and chemical industries. The aim of safety systems in processing plants is to prevent damage to equipment, avoid injury to personnel and eliminate the risk of endangering the environment and surrounding community. The main concern for engineers is to plan systems that are reliable and meet standards while considering safety associated with many diverse types of systems like pressure vessels, columns and flare stacks. In particular, over-pressurisation of equipment or piping is a major safety concern in a plant. In order to prevent dangerous bursts, explosions and fires, pressure relief valves and rupture disks are designed and installed to bleed out excess liquid or vapour causing pressure build-up. Process conditions vary considerably at each location in the process plant where there is a pressure relief device. Completing the design of a pressure relief device manually is a time-consuming and labour intensive exercise. To solve this problem, cutting-edge engineering

INFRASTRUCTURE MIDDLE EAST

May 2015

software contains relief sizing, which uses process simulation data to help automate relief valve and rupture disk calculations. Safety concerns arise from unexpected deviations from predicted behaviour, which cannot be explored effectively with traditional steady state modelling. Therefore, engineers require a solution that is rigorous, but also easy-to-use and will not require rebuilding all the existing models. They cannot afford to lose time building models twice and need dynamic software tools to utilise existing steadystate models to evaluate all areas of the plant without wasting funds. Key priority areas include maximising safety without over-designing pressure relief systems, designing control schemes effectively and having reassurance that the tools used meet the industry standard for reliability. DYNAMIC SIMulation

Dynamic simulation modelling enhances the precision, capability and credibility to develop realistic and reliable solutions for the actual plant system. Engineers can perform relief device design analysis, sizing and documentation from within the process

simulation, reducing the time spent to complete overpressure protection studies. Many companies have turned to AspenTechâ&#x20AC;&#x2122;s aspenONE Engineering software suite for improved safety through better operational procedures, control system design and proper relief-valve and rupture disk sizing. They are able to meet tighter product specifications through improved understanding of plant operability issues, ensure faster and safer plant start-ups, and avoid unplanned downtimes resulting in maximum plant availability and productivity. Another advantage is the competitive advantage derived by automating engineering knowledge, which dramatically reduces the steps required to set up a dynamic model, affording experts more time to focus on solving tough engineering challenges. Operators can also achieve better design decisions through detailed analysis of the trade-offs between process operability and process integration. Equipping engineers with powerful tools relieves the pressure to perform safe, accurate engineering models and ensure that projects meet standards and that their companies will save equipment, costs and, most importantly, lives.

events

happening IN MAY

2015 Energy Efficiency & Energy Management Seminar 24 MAY 2015, Dubai he 2015 Energy Efficiency & Energy Management Seminar, organised by CPI Media Group, will delve into the energy efficiency and management challenges in retail and hospitality sectors in the context of Expo 2020. With 70% of the visitors to Expo 2020 expected to come from outside the UAE, both sectors are attracting huge investments. At the same time, energy is the highest cost faced by hotels and large retail establishments, and their fastest growing operating costs.

At the 2015 Energy Efficiency & Energy Management Seminar, panel discussions dedicated to Hospitality, Retail and Rooftop Solar will discuss how energy efficiency/management challenges are best tackled in new-build as well as retrofit environments keeping economic feasibility and Return on Investment (RoI) in mind.

Mark your diary... FM EXPO 19 – 21 MAY, 2015 DUBAI FM EXPO is the region’s largest and most established event focused on the facilities management industry. This year includes Free Certified Workshops and the World FM Congress. Contact: Cresida Aguiar Tel: +971 4 445 3699 Email: CresidaAguiar@ dmgeventsme.com www.fm-expo.com

Contact: Jude Slann Tel: +971 50 456 3924 Email: jude.slann@cpimediagroup.com www.cpi-industry.com

power-gen africa & distributech africa 15 – 17 july, 2015 cape town The 3rd annual POWERGEN Africa and 2nd annual

MENASOL 2015 13-14 MAY 2015, Dubai ENASOL 2015 is the largest dedicated solar industry event in the Middle East and North Africa which brings together leading international and local investors, developers, EPC and suppliers to discuss future large-scale solar strategy, new plant opportunities and to launch new products & services into the market. Day 1 of MENASOL is dedicated to PLENARY SESSIONS – from investment and bankability to policy announcements and regulation, while Day 2 splits into the PV TRACK and the CSP TRACK. The plenary sessions will focus on MENA solar markets, Egypt’s new Feed-in-Tariff for renewable energy plants, Morocco’s future plans, NEPCO’s plans for sustaining renewable energy growth to identify the future MW’s up for grabs in Jordan’s energy mix, DEWA’s official announcement on accelerating the timelines of the Solar Park, Kuwait Oil Company’s plans to develop several hundred MW’s of PV and CPV

DistribuTECH Africa conference & exhibition returns to Cape Town. Contact: Sue McDermott Tel: +44 992 656 632

and Appetite for project finance in MENA. The PV TRACK will cover project updates from winning PV bidders in MENA, country breakdown of where PV components will be manufactured in the MENA and how the Round Two tender in the UAE has impacted other solar procurement programmes in MENA. Key speakers from Dubai include Taher Diab, Director – Strategy & Planning, Dubai Supreme Council of Energy, and Pedro Banda, R&D Manager, Dubai Electricity & Water Authority – DEWA. The MENASOL conference is also complemented with a joint PV and CSP exhibition zone.

Email: suemc@pennwell.com www.powergenafrica.com Building Healthcare 8 – 10 JUNE, 2015 dubai Building Healthcare Exhibition & Conferences is the regional hub for healthcare facility planning, design, construction and management. The show attracts 150 exhibiting companies and 6,500 attendees and provides a key platform to discuss new healthcare projects. Contact: Informa Tel: +971 4 336 5161 Email: buildinghealthcare@ informa.com

Contact: Brandon Páramo Tel: 1800 814 3459 ext 4302 Email: brandon@csptoday.com www.csptoday.com/menasol

www.buildinghealthcareexhibition.com

May 2015

INFRASTRUCTURE MIDDLE EAST

Infrastructure Milestones

#015 CHAdeMO, anyone? The UAE served as a test bed for the Middle East’s first-ever pilots for electric vehicles and rapid charging technology lectric vehicle charging stations are the new additions to Dubai’s ‘Smart City’ landscape thanks to Dubai Electricity and Water Authority (DEWA) accelerating its charging stations programme to have 100 stations in place by the end of this year. However, if you thought that charging stations or electric vehicles are a brand new phenomenon in the UAE (or even the region), you are mistaken. The story begins with the launch of an electric vehicles (EV) pilot project in mid-January 2011 in Abu Dhabi as a collaborative effort between Japan’s Mitsubishi Heavy Industries (MHI) and Masdar City. The objective of the pilot was to test and validate the performance of EVs and various charging solutions in the region’s climate conditions. Twelve

INFRASTRUCTURE MIDDLE EAST

Mitsubishi Motors Electric Vehicles i-MiEV were put on road in Masdar City to cater to its internal transportation requirements. A five-door hatchback that seats four people, each i-MiEV runs on a 16 kWh lithium ion battery with a cruising range of about 150km and a top speed of 130kph. Today, these EVs enjoy the distinction of being the first mass-produced, 100% electric vehicles to be deployed in the UAE. In July 2012, as part of the same collaboration, a CHAdeMO-certified rapid charger was installed in Masdar City to charge the EV fleet. Against the 360 minutes of continuous charging required with standard electrical outlets, the new rapid charger promised to recharge EV batteries to up to 80% of their capacity in a mere 30 minutes. This high-efficiency DC charger was supplied by Efacec, a leading manufacturer of AC and DC chargers. The most recent Masdar

May 2015

Fast facts Launch of the region’s first rapid charging pilot: July 30, 2012 Pilot location: Masdar City CHAdeMO: CHArge de MOve or ‘move by charge,’ a quick charging technology from Japan Time required for charging: 30 minutes

Sustainability Report 2014 notes that the pilots constitute one of the two alternative transportation systems in place at Masdar City, the other one being Personal Rapid Transit (PRT) system, comprising driverless vehicles controlled by an advanced navigation system. Today, as part of Masdar City’s ride-sharing programme, the i-MiEVs take passengers to various locations in Masdar City and throughout Abu Dhabi, such as the Al Mamoura Building and Abu Dhabi National Exhibition Centre (ADNEC). In fact, during the 2012 World Future Energy Summit (WFES), they were used to shuttle visitors between ADNEC and Masdar City. The EV and rapid charger pilots helped confirm the operational ability and functionality of electrical vehicles in the region and remove misconceptions about their ability to withstand desert heat and its impact of battery life.

HIRING NOW! SALES ENGINEER - INDOOR CLIMATE SOLUTIONS

SALES ENGINEER FOSTER PRODUCTS

Client: A leading international HVAC supplier

Client: HVAC Trading Company

Qualiﬁcations:  6-10 years of experience, including proven specification sales experience with M&E consultants  Preferably with technical sales background in chilled beams as well as displacement ventilation, grilles, diffusers and VAV systems  Must understand the building service industry  Comfortable with application sales, modifications of design, etc as we are not selling an off-the-shelf HVAC product  Preferably have contacts among M&E consultants and M&E contractors

Qualiﬁcations:  3-5 years of experience with Foster products and other HVAC related equipment  Willing to accept a salary package in the range of AED 8,000 - 12,000

PRODUCTION MANAGER – HVAC

ARABIC SPEAKING SALES MANAGER - HVAC

Client: A leading HVAC company

Qualiﬁcations:  Must have a degree in Mechanical Engineering  0-5 years of experience with Preinsulated Duct Production and AHU  Preferably with experience in a multinational company

Qualiﬁcations:  Must be fluent in Arabic  10-20 years of experience with HVAC sales in the region  Must have a degree in Mechanical Engineering  Preferably with experience in a multinational company and a great MEP clientele

For more details, e-mail alissa@careersbay.com or contact +971 50 3580708

www.careersbay.com • Your HVACR recruitment partner

thalesgroup.com

Security solutions Everywhere it matters, we deliver BORDER CONTROL Citizen authentication, e-borders and territory surveillance

SMART CITIES Citizen-centric information infrastructure AIRPORT SECURITY Optimise security operations while complying with ICAO standards

URBAN SECURITY Intelligent detection combined with security agency responses CYBER SECURITY Actively securing information systems against cyber attacks INFRASTRUCTURE PROTECTION From alarm management to integrated multi-site supervision

Millions of critical decisions are made every day in security. Thales is at the heart of this. We develop resilient solutions that help governments, local authorities and civil operators protect citizens, sensitive data and infrastructure against complex threats. This gives decision makers the information, services, equipment and control they need to make more effective responses in critical environments. Everywhere, together with our customers, we are making a difference.