Infrastructure ME October 2015

ISSUE 019 | OCTOBER 2015

ISSUE 019 | OCTOBER 2015

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Back on track Tehran’s metro ambitions revealed

ANALYSIS

Gulf turbulence Low oil prices to impact projects

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p46

RAIL LEADERSHIP

Alstom Transport’s Henri Poupart-Lafarge bets on integrated railway systems to solve urban mobility challenges

PLUS TOP 10 OMAN INFRASTRUCTURE PROJECTS

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INTRODUCTION

Smart choices 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 & MARKETING COMMERCIAL DIRECTOR JUDE SLANN jude.slann@cpimediagroup.com +971 4 375 6842

DESIGN DESIGNER ULYSSES GALGO

CIRCULATION AND PRODUCTION DATABASE AND CIRCULATION MANAGER RAJEESH NAIR rajeesh.nair@cpimediagroup.com +971 4 375 5682 PRODUCTION MANAGER JAMES THARIAN james.tharian@cpimediagroup.com

ntegration was an oft-quoted word at the panel discussions and presentations that made for a busy month in September.

Consolidation and integration trends come to the fore during economic slowdowns, so the conversations were about working together – not just companies but also industries and countries.

Whether it is a regionally integrated petrochemicals industry, which is suffering growth pangs as the Chinese economy slows down or the multi-billion GCC Rail, a project which promises to transform the logistics scenario for movement of goods and passengers across the region or more electricity grid interconnections, (which is the theme of this editorial), the spotlight was on opportunities from a regional integration standpoint.

The energy-rich Gulf region faces a paradoxical situation where it suffers from shortages in electricity supply especially during the summer. Interconnections within the region’s biggest countries should be the number one option for addressing the imbalances in the supply of electricity.

When it comes to interconnection technologies, HVDC seems to be the best bet as it enables transmission of large amounts of electricity over very long distances. The primary cost of long-distance electricity transmission, apart from the expense of the infrastructure itself, is the loss of electricity, which HVDC helps reduce.

Apart from interconnections, there are smart metering and grid technologies that can help manage electricity demand. In the traditional Transmission and Distribution model, the utility could only control the supply-side. But with smart technologies, utilities will be in a position to implement Demand Side Management. Another solution, which seems to be on the path of economic feasibility, thanks to Tesla, is energy storage.

There are numerous choices for tackling electricity shortages, but implementing them requires building the requisite infrastructure. More and more countries in the region are designing and planning such infrastructure.

I

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October 2015

INFRASTRUCTURE MIDDLE EAST 01

CONTENTS

019 October 2015 COVER STORY

REGULARS

Rail leadership

06 Regional update

Alstom Transport’s Henri Poupart-Lafarge bets on integrated railway systems to solve urban mobility challenges

28 34

10 Sector update 15 Global update 16 Quote Board

By Anoop K Menon

17 In Focus GDP worth $367bn at risk; Bechtel to train UAE engineers; Gateway to Asian markets

SPECIAL REPORT

TRANSPORT 32 FUTURE READY Interview with Rabii Ouadi, Head of Business Development, Transportation Solutions, Huawei Enterprise MENA

33

CLOUD-READY TICKETING Thales’ evolutionary fare collection solutions for public transport systems

34

MENA RAILWAY PROJECTS UPDATE

36

BACK ON TRACK Tehran’s metro ambitions revealed

21 Infrastructure tenders 44 Spot Light Systemair

60 The Big 5 Preview 63 Events 64 Infrastructure Milestones This month: Dubai’s plan for functional printed buildings

INDUSTRY SECTORS

TOP 10 FEATURE

24 Oman infrastructure projects Despite the oil price slump, Oman could be on track to beat the previous year’s record of $14.8bn in contract awards

ANALYSIS

UTILITIES

46 Turbulence in

52 Renewables to lead

the Gulf

global power market

Corporates and infrastructure issuers will likely feel the weight of lower oil prices, says S&P

As costs fall and emerging economies drive growth, IEA sees opportunities but policy uncertainties remain

TRANSPORT

SUSTAINABILITY

SOLUTIONS HUB

38 Highway through

50 Water means

53 Konecranes’ new

the sands

business

Volvo CE played a crucial role in helping build the first ever highway through the the Empty Quarter

Interview with Dow Water & Process Solutions’ regional commercial manager Zakia Bahjou

FISCAL DEFICIT

CONSTRUCTION

50 Is it 2009 all over again?

50 BIM shortens

Considering the havoc the economic woes of 2009 caused, should the construction and HVAC industries be worried?

02

INFRASTRUCTURE MIDDLE EAST

construction time Sharing model data with detailer helps Octapharma save $2m

October 2015

heavy-duty overhead crane

53 Schréder launches Shuffle EXECUTIVE INSIGHT

56 A historic year HE Salem Ali Al Zaabi, Director General, National Transport Authority (NTA) on the railway milestones in the UAE

Bringing you Container Terminal 3 at Jebel Ali Port, Dubai 3 World’s largest semi-automated facility 3 Capacity of 4 million TEU, taking total capacity at Jebel Ali Port to 19 million TEU DP World, UAE Region P.O.Box 17000 Dubai Tel. +971 4 881 5555 marketing@dpworld.com www.dpworld.ae

3 19 automated quay cranes and 50 automated rail-mounted gantry cranes 3 Quay length of 1860 metres, 70 hectare storage yard and 17 metres depth

L AU N C H PA RT N ER

Big Project ME’s home on the web MOST POPULAR

EDITOR'S CHOICE

READERS' COMMENTS

1

Crane collapse: Saudi Binladin Group barred from new projects

Construction giant’s executives not allowed to travel after Mecca tragedy in which at least 107 died.

2

Mecca crane “could not withstand intense winds”

Crane was reportedly fixed to the ground with four 1000-tonne foundations.

PHOTO GALLERIES

Construction underway at Dubai’s Marina Gate

A visit to the under-construction mixed-use The Residences at Marina Gate development.

See photo galleries at: meconstructionnews.com/photos

3

Mecca crane collapse: Saudi king promises

public investigation King Salman visits the

Craig Smith-Jones, comment to story ‘Mecca crane collapse: Saudi king promises public investigation’

Grand Mosque.

4

Dubai’s $272m Mall of the Emirates expansion completes

READER POLL

The UAE-based retail giant

Can Dubai sustain another ‘megaproject’ like Meydan One?

Majid Al Futtaim opened the mall’s 36,000sqm retail extension on September 28.

5

Cityscape: $5.4bn Sharjah Waterfront

City officially launched

VIDEO

Nissan Patrol breaks world record in Jordan

agreements for two hotels to be

The Nissan Patrol has clinched a Guinness World Record for the fastest production car to ascend a 100m sand dune.

part of the upcoming project.

See videos at: meconstructionnews.com/videos

Sharjah Oasis Real Estate Development has signed

“The Mecca crane disaster was truly tragic and my thoughts go out to those involved. Those responsible – if indeed someone is at fault – should be brought to justice. And the construction industry across the Gulf certainly needs to take note of the safety issues raised. But Saudi Arabia’s quick action to investigate the incident, and disclose the results publicly, is worthy of praise – as is the speedy announcement of compensation to the families of the many victims.”

22%

25%

20%

33%

No: There is insufficient demand

No: The focus should be on affordable projects

Yes: Demand is already there in the market

Yes: Build it and they will come

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

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REGIONAL UPDATE

UAE The UAE intends to enforce a new labour law at the start of 2016 to better regulate the relationship between employers and workers.

The reforms are being implemented through three decrees, said Minister of Labour Saqr Ghobash. These govern labour contracts for workers from abroad, terminating contracts between the employers and workers and the issuance of a new work permit to a resident worker. The new decrees build on the 2011 labour law that simplified the process of ending a contract with one company and moving on to another employer The UAE is home to 4.5m registered migrant workers from Asia, Africa and the Middle East.

Curbing imports The UAE plans to reduce its reliance on imported natural gas to 70%

The UAE is to invest $35bn dollars to diversify energy sources and reduce dependence on natural gas imports to generate electricity, said the Minister of Energy Suhail Al Mazrouei.

Delivering the keynote at Power-Gen Middle East in Abu Dhabi, he said the UAE aims to reduce its dependence

on imported natural gas from 100% to 70% by 2020 while increasing domestic production of natural gas.

He said that the UAE continues to increase its oil production capacity to reach 3.5 million barrels per day by 2017, pointing out that there is no delay in this due to the fall in the price of crude oil.

Oman Oman and Iran have signed an agreement to study a subsea gas pipeline for carrying Iranian gas to the Sultanate, the Times of Oman reported.

The offshore section envisages building a pipeline for 200km from Kuh-e Mubarak in Iran to Oman’s Sohar port; the onshore section of the pipeline in Iran will be built for another 200km from Rudan to Kuh-e Mubarak.

The offshore deal was signed between the Iranian Offshore Engineering and Construction Company (IOEC) and Oman’s Ministry of Oil and Gas. For the onshore section, an agreement was signed between the Pars Consulting Engineering Company and the Ministry.

Oman has agreed to foot the entire cost of the project.

06

INFRASTRUCTURE MIDDLE EAST

Strategic line Oman is looking to purchase natural gas worth $60bn from Iran

Oman was ranked 62nd among 140 global economies in terms of competitiveness, dropping 16 places from last year, according to the 201516 Global Competitiveness Report released by the World Economic Forum (WEF).

The country’s performance was dismal as far as labour market efficiency, innovation, business sophistication,

October 2015

market size and technological readiness are concerned.

The report calls for productivity-enhancing reforms to break the hindrances in raising efficiency and attracting foreign investments.

The Sultanate is way behind for parameters like innovation (103), labour market efficiency (89) and higher education and training (88).

The 2015-16 Global Competitiveness Report issued by the World Economic Forum (WEF) places the UAE at first position globally in the Quality of Roads category.

Dr Abdullah bin Mohammed Belhaif Al Nuaimi, the UAE’s Minister of Public Works attributed the win to the sophisticated infrastructure projects in the country aimed at achieving the UAE 2021 vision.

The Quality of Roads Indicator takes into consideration the quality of railroad, port and air transport infrastructure.

Al Nuaimi said the Quality of Roads Indicator not only tackles standards of technical aspects but also includes supporting standards in terms of providing a supportive road network for international trade in the country.

Oman’s projects market is set for another recordbreaking year, according to the latest data from MEED Projects.

Though a small market by regional standards, the past 18 months have seen a steep change in activity as the government looks to proceed with a number of key projects such as the Muscat International Airport and the modernisation of the Sohar refinery.

“Oman is reliant on oil income and will be under pressure to cut spending,” says Ed James, MEED Projects Director of Content and Analysis.“If it is to maintain a steady flow of new projects, then the sultanate may well have to look at new ways of raising finance such PPP-type deals and bond and sukuk issuances.”

REGIONAL UPDATE

Kuwait Kuwait is yet to decide on issuing bonds to finance public expenditure, reported Kuwait Times.

The reported quoted Undersecretary in the Finance Ministry Khalifa Hamadah saying that the ministry had discussed with both the Public Institution for Social Security (PIFSS) and Kuwait Petroleum Corporation (KPC) their capability to issue annual bonds in the range of $1014bn. The ministry has awarded a contract to Ernst & Young (EY) to study rationalisation of subsidies.

Hamadah also said a draft corporate tax law is expected from the International Monetary Fund (IMF) in December 2016.

The new tax will enable Kuwait to raise $2.6-3.3bn annually.

The 3Ps Kuwait is looking at Public Private Partnerships to build its infrastructure

Kuwait is planning to offer nine infrastructure projects worth $36bn to private investors over the next two years, reported Gulf Times.

These projects will be implemented through publicprivate partnerships (PPP) route.

“This has become an inevitable necessity because it reduces the burden on the state budget in

light of falling oil prices,” said Adel Mohammad al-Roumi, the President of the Kuwait Authority for Partnership Projects (KAPP).

A new PPP law announced this year provides for creation of joint stock companies to handle projects, with Kuwaiti citizens owning 50%, the government 6% to 24% and foreign investors the remainder.

Saudi Arabia Saudi Arabia has withdrawn as much as $70bn from global asset managers as its seeks to plug its budget deficit, reported The National.

According to financial services market intelligence company Insight Discovery, it’s difficult to determine when Saudi Arabia will “be back in the market to give new mandates” to fund managers.

The kingdom’s growing budget deficit could rapidly erode its reserves unless drastic action is taken, the IMF has warned, adding that the budget deficit may widen to 20% of gross domestic product (GDP) this year.

At present, oil accounts for 90% of fiscal revenues, 80% of current account revenues and 40% of GDP. The decline in oil prices is impacting the fiscal reserves.

08

INFRASTRUCTURE MIDDLE EAST

The Madinah Airport Saudi Arabia is steadily privatising its aviation sector

Roads and residential real estate accounted for approximately 57% of the value of the awarded contracts in Saudi Arabia during the second quarter of 2015, said an NCB report.

According to NCB Construction Contracts Index, the power sector came third, with 14% of the value of awarded contracts. The total value of the

October 2015

awarded contracts was $22.09bn.

Though the construction contracts awarded in the first half 2015 showed a higher pace than 2014, the same is likely to weaken in 2016. Following the pattern of 2014, the physical and social infrastructure related projects continued their growth in the second quarter of 2015, with fewer of industrial mega projects.

Kuwait plans to start an offshore oil exploration programme within two years, said a Reuters report.

Kuwait Oil Company’s (KOC) manager of planning, Bader Al Attar, was quoted as saying his country aimed to add a total of 700,000 bpd of crude oil production capacity from offshore and onshore areas. Al Attar did not identify the potential offshore locations.Most of Kuwait’s production is from the onshore Burgan field, the world’s second largest.

Kuwait also extracts reserves from an offshore Neutral Zone where it shares facilities with Saudi Arabia. Al Attar said Kuwait aims to boost production capacity to 3.5m bpd by the end of 2015, including from the Neutral Zone.

The General Authority of Civil Aviation (GACA) is planning to expand its privatisation programme to more airports, reported Al Arabiya.

Sulaiman Al-Hamdan, president of GACA, said the authority’s move to privatise international and national airports will improve services and raise quality. He added that the authority will work to achieve the objectives of the strategy, which involves encouraging investment in all aviation sectors including airports and air navigation. GACA has tasted success with Prince Mohammad Bin Abdul Aziz International Airport in Madinah, which is fully managed by the private sector.

Frost & Sullivan estimates that Saudi Arabia has close to 11m tourists annually of which 5.7m are aviation passengers. Aviation traffic is likely to grow at a CAGR of 27.2% over the next decade or so.

REGIONAL UPDATE

Qatar The 2022 FIFA World Cup in Qatar will begin on November 21 and conclude on December 18, FIFA announced last month.

The tournament will be 28 days, making it one of the shortest World Cups in the past two decades, In March, FIFA decided to switch the 2022 tournament from June-July to avoid Qatar’s summer heat.

In an interview with Inside World Football in Berlin recently, Nasser Al Khater, secretarygeneral of tournament operations for Qatar’s Supreme Committee for Delivery and Legacy, saidcConstruction on all the World Cup stadiums - including two with yet-to-be confirmed locations - will be completed by 2020.

Long-awaited changes to Qatar’s kafala sponsorship system have been green-lighted by the Cabinet, bringing reforms one step closer to becoming enshrined in the law, reported Doha News.

The Cabinet approved the draft law during its regular weekly meeting, which was chaired by the

Prime Minister Sheikh Abdullah bin Nasser bin Khalifa Al-Thani.

However, the new rules still require final approval from the Emir and are unlikely to come into force until late 2016 at the earliest.

Once they take effect, the reforms are expected to make it easier for expats to leave the country and change jobs.

Qatar is moving ahead with more than $40bn worth of planned transport projects, delegates at MEED’s 4th Annual Qatar Transport Forum were told last month.

These include the expansion of Hamad International Airport (HIA) and Hamad Port, the Doha Metro and long-distance passenger and freight network, and the expressway programme.

On the roads side, Eng. Nasser al-Kuwari, Manager of Highway Projects department at Ashghal, presented an overview of the $10.8bn expressway programme.

The massive project, which involves 1,000km of new or upgraded roads, 240 major interchanges and 360 bridges, has already seen 43 major contracts awarded. A total of 15 contracts are either in the market or are being prepared while a further 23 are in the planning stage.

All set for 2022 Qatar has assured that all the stadiums will be ready by 2020

October 2015

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SECTOR UPDATE

Utilities Dubai Electricity and Water Authority (DEWA) has invited Expression of Interest (EOI) for the 800MW phase three of the Mohammed bin Rashid Al Maktoum Solar Park.

The project will be based on the Independent Power Producer (IPP) model. DEWA will start accepting Expression of Interest proposals from international developers by end of September 2015. The project’s tender is expected to be released in Q4 of 2015.

The 13MW first phase of the Solar Park became operational in October 2013 while the 200 MW second phase will be operational by 2017. Dubai aims to generate 7% of its energy from renewables by 2020 and 15% by 2030.

EOI call DEWA hopes to release the tender for the third phase of Solar Park in Q4

Oman’s Haya Water purchased the 4 millionth Flygt wastewater pump for deployment at its central pumping station at Azaibah, Muscat.

The station pumps wastewater across 8km to the Al Ansab treatment plant.

Saud Salim Ambusaidy, senior maintenance manager,

Haya Water said: “This central pumping station is a crucial part of the sewage system in Oman - we need reliable, robust pumps to ensure that we provide a dependable service.

Since 2006, Xylem has supported us to do this and we are confident that the company will continue to facilitate an efficient water service into the future.”

Oil & Gas Offshore reserves will account for approximately 50% of total oil production in Abu Dhabi by 2018.

Dagher Al Marar, CEO, Abu Dhabi offshore services company (ESNAAD), and ADIPEC 2015 Offshore and Marine Conference Advisory Board Member, said tapping into offshore oil reserves has always had its specialty and challenges, and advances in technology have been helping the industry overcome such challenges.

The Abu Dhabi National Oil Company (ADNOC) is planning to invest $25bn in offshore oil projects over the next five years.

Currently, an estimated 40% of oil produced in Abu Dhabi comes from offshore reserves while the global average is 30%.

10

INFRASTRUCTURE MIDDLE EAST

Off shore focus ADNOC is planning to invest $25bn in offshore projects in next 5 years

Emerson Process Management has provided automation and engineering services for Qatar Gas’ Jetty Boil-Off Gas (JBOG) Recovery facility.

Now fully operational, JBOG is expected to recover more than 600,000 tonnes of LNG per year – equivalent to the energy supply for more than 300,000 homes. The facility is designed to recover the gas

October 2015

flared during LNG loading at the six LNG berths in Ras Laffan Port. The gas is compressed and sent to the Qatargas and RasGas LNG production facilities for use as fuel or as LNG. Emerson’s solution for the project included the DeltaV DCS to control and monitor operations, as well as the company’s Fisher control valves and Rosemount measurement instruments.

Muscat Electricity Distribution Company (MEDC), a subsidiary of Nama Group, plans to invest $155m in the expansion and modernisation of its supply infrastructure, said Oman Observer.

MEDC’s capital outlay for 2015 includes around $59.75m for 11 kV investments, and $83.13 m towards 33 kV investments, as well as RO5 million for a variety of other projects,” said Ala Hassan Moosa, senior manager — projects delivery, MEDC. With budgetary spends for 2016 and 2017 expected to be largely in line with 2015 expenditure trend, Omani contractors and service providers can look forward to substantial business opportunities from MEDC,” he said.

The slumping oil prices and the economic slowdown in China have hit GCC petrochemical industry revenues.

According to the GCC Petrochemicals and Chemicals Facts and Figures 2014, industry revenues have declined to $88bn in 2014 from $89.4bn in 2013.

“Given that the GCC petrochemicals producers are not price-setters, it means that Arabian Gulf producers need to be more agile, collaborative and innovative to succeed,” said Dr Abdulwahab Al-Sadoun, Secretary General, Gulf Petrochemicals and Chemicals Association (GPCA). “Looking ahead, the long term scenario is more positive. The industry is forecasted to grow at 6% per annum over the next five years, with the region producing over 190m tonnes of petrochemicals annually by 2020.”

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SECTOR UPDATE

Transport HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister and Ruler of Dubai approved infrastructure projects related to Expo 2020. during a visit to the Roads and Transport Authority (RTA).

These include airport road expansion project aimed at absorbing the increase in the passenger traffic, which is projected to reach 95m by 2020, designs of metro stations for Route 2020 and Expo 2020 -related road expansions, including Al Yalayis road, the Gardens parallel roads and the university city road. He also viewed the progress of work in the Bluewaters Island project and the Deira Islands Canal.

Multimodal MoU Etihad Rail has signed an MoU with Transworld Logistics

Saudi Arabia’s Public Investment Fund has extended Italferr’s contract to undertake design work for the planned Landbridge, reported The Railway Gazette.

The Landbridge project comprises a 950 km doubletrack mixed traffic line running from the Port of Jeddah to Riyadh, where it would connect

with the existing railway which would be upgraded to complete a 1,300 km corridor linking the Red Sea with the Gulf.

Along with local partner Arabian Consulting Engineering Centre, the engineering consultancy subsidiary of Italian national railway group FS was awarded an initial 14-month design contract in 2013.

Construction The Tilal City project is set to be a game changer for the real estate sector in Sharjah, said Sheikh Sultan bin Ahmed Al Qasimi, Chairman, Tilal Properties at the Cityscape event last month.

The $650m Tilal City development project includes 1,855 land plots, offering the GCC nationals and UAE residents for the first time an opportunity to buy or lease land and develop properties in Sharjah.

“The completion of the initial roadworks marks significant progress for the project,” said Al Qasimi. This will be followed by the laying of sewage and water pipelines and electricity cables.

The developers are on track to hand over the first plots to owners in 2016 as per project schedule.

12

INFRASTRUCTURE MIDDLE EAST

DEWA’s Solar Innovation Centre The centre is scheduled for completion by Q1 2017

Towell Infrastructure Projects has been awarded a $214m contract to build the infrastructure for the new Liwa City project being established by the Omani government in North Al Batinah Governorate.

The Ministry of Housing is investing around $1.3bn in the project, designed to provide alternative housing to residents displaced or impacted by the

October 2015

establishment of Sohar Port and Freezone. The master plan envisages the construction of an estimated 2,500 – 3,000 housing units along with the requisite infrastructure.

When fully completed by early 2018, Liwa City is expected to be home to around 30,000 people.

The contract’s scope covers the full spectrum of utilities and other support infrastructure.

Etihad Rail has signed a MoU with Transworld Logistics, a multi-faceted shipping and logistics company, and part of UAE-based Transworld Group.

The MoU was signed by Faris Saif Al Mazrouei, CEO, Etihad Rail, and Mannan Balasubramanian, General Manager, Transworld Logistics. The MoU will help the company deliver high volume service across rail and shipping networks.

Apart from Transworld Logistics, the Transworld Group represents two more organisations - Orient Express Lines, which is a common carrier feeder service connecting the Indian Sub-Continent with hub ports at Colombo and Jebel Ali and Balaji Shipping Lines, the leading carrier of refrigerated cargoes between Indian SubContinent and the Middle East.

Dubai Electricity and Water Authority (DEWA) has appointed Hadeed Emirates Contracting Company as contractor for the construction of the Solar Innovation Centre at the Mohammed bin Rashid Al Maktoum Solar Park.

The Solar Innovation Centre, with its landmark design which celebrates the Park’s identity, will act as a museum and exhibition for solar and renewable energy. It will attract tourists, universities, schools, companies, and partners.

The Centre will be open to solar energy manufacturers and developers as it has a specialised place and permanent convention centre for events and conferences, business meetings, training and meetings on subjects related to solar and renewable energy and other green initiatives.

The Solar Innovation Centre is planned to be completed by the first quarter of 2017.

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SECTOR UPDATE

Cities The Dubai Electricity and Water Authority (DEWA) has added eight electric cars to its fleet, becoming the first government organisation in Dubai to use electric cars in support of Dubai Plan 2021.

“This move is in line with the strategy to reduce carbon emissions in Dubai by 16% by 2021 and also supports Dubai’s ambition to achieve a 10% increase in the total number hybrid and electric cars by 2030,” said HE Saeed Mohammed Al Tayer, MD and CEO, DEWA. “ The move represents the implementation of the Green Charger initiative launched

by DEWA to establish the infrastructure to build 100 electric vehicle charging stations this year.

Health honour Sharjah is the region’s first World Health Organisation Healthy City

The Roads and Transport Authority (RTA) held its 2nd Government Innovation Lab session to thrash out innovative ideas for resolving the congestion of metro carriages and stations during peak hours.

The CEO of RTA Rail Agency Abdullah Yousef Al Ali joined more than 50 participants

including RTA staff, university students, metro riders, strategic partners (such as Dubai Police) and the metro operator SERCO for the session.

The lab came up with 20 ideas for easing the congestion of the metro and stations. RTA officials have assured that the ideas will examined, improved and considered for implementation.

Finance ADCB and Gulf Related have signed a $630m agreement to provide senior debt project financing for the construction of Al Maryah Central mixeduse retail development.

The 2.3m sq. ft. regional mall, scheduled to open in March 2018, will have 400 retail stores and 145 restaurants and cafes, a 20-screen cinema complex, a medical center, a creche, a health-club, a public library, a food market as well as three rooftop parks atop the mall. Subsequent phases of the development will include residential units and a hotel in two high rise tower.

Vertical construction commenced in August 2015 following the appointment of Brookfield Multiplex as the main contractor for the project.

14

INFRASTRUCTURE MIDDLE EAST

China flavour Chinese banks are major investors in SKAI’s Dubai real estate projects

Dubai-based real estate group SKAI has successfully completed a $300m syndicated finance package to support the construction of its Viceroy Dubai Palm Jumeirah and Viceroy Dubai Jumeirah Village projects.

The international syndicate for the dual Islamic and conventional facility is backed by seven financial institutions,

October 2015

including Abu Dhabi Islamic Bank, Industrial and Commercial Bank of China, Agricultural Bank of China and Bank of China. The syndication marks another example of China’s growing interest in the UAE. Nearly 75% of Viceroy Dubai Palm Jumeirah and 15% of the Viceroy Dubai Jumeirah Village are complete, putting them on track for opening during 2016-17.

Sharjah was formally declared the first World Health Organisation (WHO) Healthy City of the region after the emirate met the majority of criteria set by the WHO Healthy Cities Programme.

WHO has lauded the emirate for taking measures to improve the healthcare system and social welfare infrastructure, while embracing responsible environment policies and practices, such as waste management and sustainable development, in line with the WHO Healthy Cities Programme. WHO officials also praised the emergency response and crisis management centre in the emirate, describing it as one of the best in the region.

The achievement came after more than three years of mobilising efforts and harnessing resources.

The current low price of crude oil and natural gas is unlikely to have a widespread impact on the credit quality of rated global project finance debt over the next year to 18 months, said a S&P Industry Report Card.

However, if prices remain in the $40-$50 per barrel range for a sustained period or fall further, the outlook may prove problematic for projects with refinancing risk, market exposure, or input prices.

In an earlier report published in April 2015, S&P had pointed out it expects many of the projects to continue to benefit from long-term contractual agreements, break-even points that were designed with low oil and gas prices as a base, the presence of substantial available liquidity to the issuer, or varying degrees of sovereign support.

GLOBAL UPDATE

Round Up A build-up of credit in emerging market economies since the global financial crisis has made them vulnerable to the expected increase in interest rates in advanced economies, said the International Monetary Fund (IMF).

The debts of non-financial firms in emerging market economies quadrupled, from $4tn in 2004 to well over $18tn in 2014, according to the IMF’s twiceyearly Global Financial Stability Report. This borrowing binge has taken business debt as a share of economic output from less than half, in 2004, to almost 75%.

IMF also warns that borrowing appears to have risen fastest in sectors that would be most vulnerable to an economic downturn, including construction, and oil and gas.

Moody’s has slightly revised its GDP growth forecast for China in 2016 to 6.3% and maintained its forecast of 6.8% for 2015.

In subsequent years, the growth is likely to slow towards 6%.

While this represents a significant slowdown over prior years, the growth rate remains well ahead of most other developed countries, and further policy support is likely to ensure that the economic slowdown remains gradual.

The IMF has maintained growth projections for China at 6.8% this year and 6.3% in 2016.

According to Moody’s, metals and mining sectors are the most exposed to weaker Chinese demand, in terms of export volumes and the knockon effect of lower prices.

The coal, oil and gas, steel, and chemical sectors also have indirect exposure via the impact of weaker demand on prices.

Deja vu Debts have risen in the construction sector in emerging markets, says IMF

RAG-Stiftung (Foundation) Investment Company has bought a majority stake in the international engineering consultancy Pell Frischmann.

The Top 20 UK civil and structural consultancy has its head office in London with regional headquarters in Mumbai and Abu Dhabi. Pell Frischmann has led the design of some of the world’s most iconic construction projects, including Centre Point in London and the refurbishment of the Bank of England. In the Middle East, the company was involved with the extension of the Etihad Training Centre in Abu Dhabi and the Mid-Western Water Supply project in Iraq.

Post-sale, Pell Frischmann senior management team members, Tushar Prabhu and Richard Barrett, will become Co-CEOs.

Specialty chemicals company LANXESS and Saudi Aramco have entered into a strategic alliance to establish a joint venture for synthetic rubber.

LANXESS and Saudi Aramco subsidiary, Aramco Overseas Company, will each hold a 50% interest in the JV .

LANXESS will contribute its synthetic rubber business to the JV. This will include the Tire and Specialty Rubbers (TSR) and the High Performance Elastomers (HPE) business units, their 20 production facilities in nine countries and some 3,700 employees and additional support staff.

Matthias Zachert, Chairman of the Board of Management of LANXESS and Abdulrahman F Al-Wuhaib, Senior Vice President Downstream of Saudi Aramco, signed the agreement.

Stake sale Lanxess plans to spin off its synthetic rubber unit into a JV with Aramco

October 2015

The value of the global power transformers market will increase from $11.3bn in 2015 to $14bn by 2020, driven by the nine major markets of the US, China, India, Saudi Arabia, Brazil, Japan, Germany, Canada and the UK, according to GlobalData.

The company’s latest report states that growth will primarily be driven by extensive power plant capacity additions, economic growth, and the need to improve access to electricity in emerging economies.

The report also states that the market faces increasing fragmentation, as even major companies possess single-digit shares of the global market.

Global GDP growth slowing as a result of the financial crisis will continually affect the power transformer market as investment in infrastructure development projects declines.

China has built a 122km expressway using construction waste as building material for the roadbed, reported Xinhua.

With a design speed of 120kmph, the expressway links Lintong District with Huxian County under the provincial capital of Xi’an.

A total of 5.7m tonnes of construction waste was used to build the expressway, with an average of 46,700 tonnes used per kilometer.

The use of recycled waste has helped the project avoid using 3.4m m3 of sand and burning 32,000 tonnes of coal. The Xinhua report noted that while construction waste is stronger and more stable than traditional materials, it is difficult to separate and extract useful materials such as steel bars and bricks from the garbage. Therefore, special equipment has been developed for garbage separation.

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QUOTE BOARD

NATRANS ARABIA 2015 OCTOBER 25-27, ABU DHABI [PREVIEW] “NATRANS will also see the launch of the Last Mile Consortia (LMC) which is a collective of capable UK companies that together are able to provide every aspect of the scope required to enable new and usable railway connections and terminals. The LMC is about providing a total service to greatly benefit rail operators and suppliers, and enable connections to be made that maximise the use and potential of the railway infrastructure ” Mike Shears, UKTI Specialist – Railway, UK Trade & Investment

“Last Mile Consortium (LMC) in conjunction with NATRANS and Fleming, the organisers, are hosting a free of charge forum (LMC Forum @NATRANS) on 27th October which will feature the largest platform of world class speakers, thought leaders and specialists drawn from the LMC membership.”

John Greaves, Secretary General, LMC

THE BIG 5 NOVEMBER 23-26, DUBAI [PREVIEW] “GCC nations are often listed among the top nations in terms of emissions, waste, and other environmental impacts. These are real problems that can be addressed, can be reduced, and can be fixed, dare I say it, by smart cities driven by the Internet of Things (IoT)” Alaa Dalghan, Director of Middle East and Africa, B&B Smartworx

“The impact of having proper envelopes, especially in the GCC, is also massive in terms of the amount of the resources and the type of materials we use in construction and the savings that come from not expending the time, energy, and materials to build poorly designed envelopes in the first place” William Whistler, MD, Green Building Solutions International

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October 2015

“In this day and age we have seen technological advancements that previous generations could never have thought possible, and yet we still face barriers to harnessing the true potential of these innovations. Every hour, our world consumes around a million tonnes of oil, not to mention other fossil fuels, and last year carbon dioxide emissions exceeded 40bn tonnes.”

Through Solar Impulse 2, we want to demonstrate that incredible achievements can be obtained with clean technologies, like flying day and night with an airplane consuming no fuel” Dr Bertrand Piccard, Co-Pilot, Solar Impulse 2 comments prior to speaking at GulfSol 2015 last month

IN FOCUS

STRATEGIC VISION

GDP worth $367bn at risk Across the Middle East, the largest GDP exposures are to market crash, earthquake, human pandemic, sovereign default, and terrorism. he Middle East’s 16 largest centres of economic growth could have $367bn of GDP at risk from a series of threats over the next decade, according to new research for Lloyd’s, the specialist insurance market.

Lloyd’s City Risk Index presents the first ever analysis of economic output at risk (GDP@ Risk) in 301 major cities from 18 manmade and natural threats over a ten-year period.

Based on original research by the Cambridge Centre for Risk Studies at the University of Cambridge Judge Business School, the Index finds that a total of $4.6tn of projected GDP is at risk from manmade and natural disasters in these cities around the world.

Lloyd’s has produced this Index to help increase the understanding of, and shape the world’s response to, the shifting risk landscape. The Index, which will be updated every two years, is aimed at stimulating further discussions between insurers, governments and businesses on the need to improve resilience, mitigate risk and protect infrastructure.

In the Middle East, the Index found the cities of Abu Dhabi, Ahvaz, Amman, Baghdad, Beirut, Damascus, Doha, Dubai, Esfahan, Jeddah, Jerusalem, Karaj, Kermanshah, Kuwait City, Mashhad, Riyadh, Sana’a, Shiraz, Tabriz, Tehran, Tel Aviv-Yafo, and Qom together will generate an average annual GDP of $2.4tn in the coming decade. However, 15% of this economic growth is at risk from the combination of 18 manmade and natural threats.

Across the region, the largest GDP exposures are to market crash ($143.3bn), earthquake ($85.17bn), human pandemic ($41.40bn), sovereign default ($30.16bn), and terrorism ($25.68bn).

Tehran has the most GDP at risk with $64bn exposed, more than half of this

T

Tehran The Iranian capital has the most GDP at risk

($34.5bn) is from earthquake as the city lies on several major fault lines. It has the second largest amount of GDP at risk from earthquake behind Lima.

Riyadh has the most GDP at risk from human pandemic in the region at $5.16bn reflecting the flow of almost two million pilgrims who make Haj each year.

In the financial trading hubs of Dubai and Abu Dhabi, market crash is the greatest exposure accounting for almost half of the GDP at risk.

Globally, the Index identifies three important emerging trends in the global risk landscape: 1. Emerging economies will shoulder twothirds of risk related financial losses as a result of their accelerating economic growth, with their cities often highly exposed to single natural catastrophes.

2. Manmade risks such as market crash, power outages and nuclear accidents are becoming increasingly significant, associated with almost half the total GDP@Risk. A market crash is the greatest economic vulnerability – representing nearly a quarter of all cities’ potential losses.

3. New or emerging risks, such as cyberattack, are also increasingly significant.

Together, they account for more than a

third of the total GDP@Risk with just four – cyber-attack, human pandemic, plant epidemic and solar storm – representing more than a fifth of the total GDP@Risk.

The findings show the need for governments and businesses to work together to build more resilient infrastructure and institutions. How quickly a city recovers after a catastrophe is a key component of the total risk, and the impact of events is mitigated by rapid access to capital to help restore the economy.

Inga Beale, CEO of Lloyd’s said: “Lloyd’s City Risk Index highlights the economic exposure of 301 major cities across the world. Governments and businesses, together with insurers, must work together to ensure that this exposure – and the potential for losses – is reduced.

“Insurers, governments, businesses and communities need to think about how they can improve the resilience of infrastructure and institutions. Insurance is part of the solution.

“Insurers must continue to innovate; ensure their products are relevant in this rapidly changing risk landscape, offer customers the protection they need and, as a result, contribute to a more resilient international community.”

Mark Cooper, Lloyd’s Middle East General Representative, said: “Lloyd’s City Risk Index highlights the economic exposure of the major cities in the Middle East and the significant levels of GDP at risk from both manmade and natural threats.

“We are all too familiar with some of the natural threats and have robust contingency plans in place; however, we should be increasingly aware of a number of manmade and emerging threats highlighted in the report and the importance of risk management to mitigate the potential economic impact. The study shows that a market crash is the greatest economic vulnerability and this is also true in the Middle East, where $143bn could be at stake.

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IN FOCUS

STRATEGIC VISION

Gateway to Asian markets Fujairah offers Gulf Cooperation Council (GCC) countries an integrated corridor to the lucrative Asian markets ujairah, the only emirate that lies on the eastern side of the UAE with direct access to the Indian Ocean, is well placed to offer the Gulf States a gateway to lucrative Asian markets as an extension of an ever increasing integrated energy infrastructure, industry experts and officials said at The 5th Gulf Intelligence Energy Markets Forum, held in Fujairah last month.

The Abu Dhabi-Fujairah oil pipeline is the latest piece of critical regional connectivity that offers export channels from the Port of Fujairah direct to India and beyond to Asia and presents a template for other exporting countries to consider. The infrastructureled approach has gone some way towards fostering greater economic integration among GCC states, with the regional electricity grid and the Dolphin gas pipeline network that culminates in Fujairah being cases in point.

“Fujairah sits at the heart of the new South-South energy corridor at the spearhead of an integrated infrastructure opening up the East of Suez region to Asia, “ said HE Dr Matar Al-Neyadi, Undersecretary of the UAE Ministry of Energy and Chairman of the Gasoline and Diesel Prices Committee. “Not only is Fujairah a world-scale bunkering and storage centre, but it is also now an important crude oil export centre and emerging as a downstream destination thanks to a unique mix of geography and strategic vision.“ After years of stability above $100/barrel, Brent crude oil has lost half its value over the last year, with three dramatic 50% swings in the interim period. The uncertain outlook has triggered the cancelation of many projects, jeopardising much-needed investment in long-term oil production capacity.

The Gulf Arab States should combat this

F

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The forum was attended by top 200 energy industry officials and executives

period of extreme volatility in the oil and gas markets by accelerating the integration of their regional energy infrastructure and extend the network’s connectivity to include regional neighbours in South Asia such as India and Pakistan, industry leaders and analysts said.

“In order to minimise the risks associated with oil price volatility, oil companies are adapting, expanding across the energy value chain and diversifying operations to become fully integrated oil and gas companies,” said Petri Pentti, Chief Financial Officer, Emirates National Oil Company (ENOC).

“Integration is the answer for stability as it reduces dependency on other industry players while allowing them to partner, compete, and grow alongside the leading international and regional, national oil companies.”

“Greater integration of the region’s energy infrastructure is certainly one winning strategy to tackle volatility,” said HH Sheikh Saleh Bin Mohammed Bin Hamad Al Sharqi, Chairman of the Department of Industry and Economy, Fujairah & Chairman of the Board of Port of Fujairah, told the audience at the Forum.

CENTRE OF THE STORM The outlook for China’s economic growth, which is experiencing its worst performance in decades, is the trigger of greatest uncertainty in the global energy markets, according to 32% of respondents in a Gulf

Intelligence Survey conducted with 200 industry professionals.

Even at the Chinese government’s targeted growth rate of seven per cent for this year, China’s economy is heading for its slowest annual expansion in a quarter of a century.

Producer prices slumped 5.4% in July, credit to the real economy plunged, and consumer inflation remains at about half the target of three per cent this year. Though many analysts believe the Chinese government is exaggerating current growth rates, with independent analysis claiming they are closer to 6%.

“We know that there will be an end point to the uncertainty as oil markets will balance again when increase in global demand is large enough to offset growth in supply,” said Christof Rühl, Global Head of Research, Abu Dhabi Investment Authority in reaction to the Survey results. “It is important to understand the transition of the Chinese economy is what China terms as the rebalancing of the economy away from industrial sector towards more service sector towards and more light economic activity.”

Brent crude oil prices are expected to continue to experience dramatic swings through 2016, according to 56% of the Survey respondents, with Brent crude expected to average in the $50 range according to 42% of the respondents, while 24% were more optimistic in their outlook with forecast for oil prices to average in the $60 range.

IN FOCUS

SKILLS DEVELOPMENT

Bechtel to train UAE engineers Ten-year training programme launched in collaboration with the Abu Dhabi Department of Municipal Affairs ngineering and construction major Bechtel has reached an agreement with the Abu Dhabi Department of Municipal Affairs to launch an innovative training programme involving engineers in Abu Dhabi.

The Department of Municipal Affairs acts as the main focal point of all municipal planning and oversees public works projects in the Emirate of Abu Dhabi.

Over the next 10 years, up to 100 trainees from Abu Dhabi will be deployed at Bechtel projects for deployments of at least 12 months, with the aim of enhancing the practical and technical skills of Emirati engineers in building and construction areas.

This new programme continues Bechtel’s longstanding commitment to capacity building, skills training and development of local workforces on its projects around the world.

David Welch, President, Europe, Africa, Middle East, Bechtel said: “We are pleased to be working with HE Khalifa Mohammed Al Mazroui, Undersecretary of the Department of Municipal Affairs, to contribute towards professional development training for Emiratis. This innovative programme will provide Emiratis with practical experience and training on projects, where they will work with our experts to enhance their knowledge of project delivery, business priorities, and leadership skills.”

HE Khalifa Mohammed Al Mazroui, Undersecretary of the Department of Municipal Affairs, said: “Working with a reputed and specialised company such as Bechtel, which has an all-round experience in infrastructure and large projects worldwide, adds considerable value to our training initiatives.”

E

David Welch, President, Europe, Africa, Middle East, Bechtel

Abu Dhabi has launched multiple education and skills development initiatives over the years to support its long-term economic sustainability. The Bechtel training programme complements these efforts by offering Emirati engineers the opportunity to work on major infrastructure projects.

RAISING THE BAR In an interview with Infrastructure Middle East, Welch said that the programme is a way of Bechtel giving back to the society. The on-going infrastructure build-up in Abu Dhabi, he notes, has created capacity demands in the public sector as well, whether it is project management or delivery or asset management. A long-term training programme can help the municipal affairs department in addressing this challenge.

“The candidates for the programme will be selected by the Department of Municipal Affairs from middle and senior management levels,” explains Welch.

The training programme, he continues, will also act as a career and knowledge pathway for these experienced candidates while developing multi-skilled workforce that enhances the overall capability of the municipal affairs department in the areas of project management, delivery or asset management.

“We have already started the process of selecting the first set of candidates for the training programme,” he adds.

Bechtel has a longstanding presence in the Gulf region and has contributed to some of its most significant infrastructure projects over the years, including most recently the Khalifa Port and Khalifa Industrial Zone in the UAE and the Hamad International Airport in Qatar.

The company is currently involved with Riyadh Metro, Jubail Industrial City, and new economic cities and industrial areas in Saudi Arabia, Muscat airport in Oman, the Al Taweelah Alumina and Borouge 3 petrochemicals complex in Abu Dhabi.

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MIDDLE EAST INFRASTRUCTURE TENDERS

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

OMAN NATIONAL RAILWAY PROJECT

LNG IMPORT & REGASIFICATION TERMINAL PROJECT - AL ZOUR

MAKKAH MASS RAIL TRANSIT SYSTEM DEVELOPMENT PROJECT

PTA & PET COMPLEX PROJECT SOHAR PORT

BUDGET: $15,000,000,000

BUDGET: $3,300,000,000

BUDGET: $16,000,000,000

BUDGET: $600,000,000

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

Period: 2018 Status: New Tender

Territory: Kuwait Client Name: KNPC Description: EPC contract to build a an onshore Liquefied Natural Gas (LNG) import and re-gasification terminal.

Period: 2020 Status: New Tender

Territory: KSA Client Name: Makkah Mass Rail Transit Company Description: Development of a 188km metro system with four lines and 88 stations.

Period: 2020 Status: New Tender

Territory: Oman Client Name: Oman Oil Company Description: EPC contract to build a 1.1 MTPA Purified Terephthalic Acid plant and 250,000 TPA Polyethylene Terephthalate plant.

Period: 2016 Status: New Tender

October 2015

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MIDDLE EAST INFRASTRUCTURE TENDERS

Top Tenders UAE

AL SHARIA PARK DEVELOPMENT PROJECT Project Number: (IO) 95/2015 Client Name: Abu Dhabi Municipality Address: Salam Street, Abu Dhabi Phone: (+971-2) 678 8888 Fax: (+971-2) 677 4919 Website: www.adm.gov.ae Description: The Al Sharia Park is located along E11 highway between Abu Dhabi and Dubai at an interchange near Al Rahba in Plot P2, Ajban Sector. Developers will fund, build and operate the project under a Musataha contract, which entitles them to benefit from the land and facilities for 32 years following which the ownership reverts back to the Municipality at nil premium. Tender closing date is September 29, 2015.

Status: New Tender Tender Categories: Construction & Contracting Leisure & Entertainment

Tender Categories: Power & Alternative Energy

WEST YAS VILLA COMPLEX PROJECT YAS ISLAND ZONE KT Project Number: WPR758-U Client Name: ALDAR Properties Address: 13th Floor, Abu Dhabi Chamber of Commerce Tower Phone: (+971-2) 810 5555 Fax: (+971-2) 810 5550 Website: www.aldar.com Description: Development of 1,017 four and five-bedroom villas, each comprising a ground floor and an additional floor, including all community facilities. The villas, located along the island’s mangroves, are expected to be handed over to buyers by the end of 2017.

Bids have been submitted for the main contract and are currently under evaluation. An award is expected in October 2015.

Status: New Tender Tender Categories: Leisure & Entertainment; Construction & Contracting; Hotels

OMAN NEW SULTAN QABOOS HOSPITAL CONSTRUCTION PROJECT Project Number: 17/2015-O/11 Client Name: Ministry of Health Address: Opp. Khoula Hospital, Bldg. No. 105, Muscat PC 103 Phone: (+968-24) 602 177 Fax: (+968-24) 602 647 Website: www.moh.gov.om Description: Construction of a new hospital in Salalah comprising 5 storeys offering 700 beds and specialist units. The project will cover an area of 200,000 sqm and offer adult and pediatric emergency services, physiotherapy, nuclear medicine, dietary services, warehouses, a pharmacy and a laboratory. Sixteen construction firms have been prequalified for the project. Client has again extended the closing date to submit bids for the main contract from the previous deadline of August 31, 2015 Status: New Tender Period: 2018 Tender Categories: Construction & Contracting; Medical & Healthcare

DARIS COPPER GOLD PROCESSING PLANT PROJECT Project Number: ZPR648-O Client Name: Daris Resources Address: Al Tammam Trading Establishment Building, Muscat Phone: (+968-24) 794 331 Fax: (+968-24) 780 180 Website: www.althammam.com Description: The project involves the development of a Copper Gold processing plant with production capacity of 800,000 TPA. The plant will process mineral ores extracted from deposits discovered in the Washihi and Daris areas of Dakhiliyah and Batinah North governorates.

Australia-based minerals exploration and mining development company Alara Resources has announced the formal launch of a study into the feasibility of establishing this plant, which will be completed in four months.

Period: 2016 Status: New Tender Tender Categories: Industrial & Special Projects

KUWAIT

CONSULTANCY SERVICES

KABD WASTE-TOENERGY PLANT PROJECT

Project Number: 2131500047 Client Name: Dubai Electricity & Water Authority (DEWA) Address: Head Office, Near Wafi Shopping Mall, Zabeel East, Dubai Phone: (+971-4) 601 9999 Fax: (+971-4) 601 9995 Website: www.dewa.gov.ae Description: Provision of consultancy services for utilisation of coal combustion byproducts from the Hassyan clean coal power complex. The closing date for the tender is October 25, 2015.

Status: New Tender

Project Number: MPP2620-K Client Name: Kuwait Authority for Partnership Projects (KAPP) Address: Touristic Enterprises Co. Bldg., Shuwaikh Phone: (+965) 2496 5900 E-mail: (+965) 2496 5901 Website: www.ptb.gov.kw Description: Build-Operate-Transfer (BOT) contract for the development of a waste-to-energy plant with initial capacity of 3,275 tonnes/day. Client will enter into a 30-year contract with the winning investor. This will include 2 years for construction

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October 2015

MIDDLE EAST INFRASTRUCTURE TENDERS

JEDDAH PUBLIC TRANSPORT DEVELOPMENT PROJECT

and equipment installation. The client has prequalified five groups to participate in the BOT contract from France, Spain and Austria.

Period: 2015 Status: New Tender Tender Categories: Power & Alternative Energy; Sewerage & Drainage

AL KHIRAN INDEPENDENT WATER & POWER PROJECT - PHASE 1 Project Number: ZPR250-K Client Name: Kuwait Authority for Partnership Projects (KAPP) Address: Touristic Enterprises Co. Bldg., Shuwaikh Phone: (+965) 2496 5900 E-mail: (+965) 2496 5901 Website: www.ptb.gov.kw Description: The project involves a Build-Operate-Transfer (BOT) contract to build an independent water and power plant (IWPP) with capacity of 1,800 MW of power and 125 MIGD of water.

Client has prequalified seven consortiums to participate in the bidding process for the main contract. They are the same seven lead developers for the AlZour North 2 IWPP. Client is also expected to stagger the submission date by six months due to the size of this project.

Period: 2015

Status: New Tender Tender categories: Power & Alternative Energy; Water Works

KSA HASBAH SOUR GAS FIELD EXPANSION PROJECT Project Number: WPR749-SA Client Name: Saudi Aramco Address: Dhahran 31311 Phone:(+966-13) 872 0115 Fax: (+966-13) 873 8190 Website: www.aramco.com Description: This project involves expansion of the offshore Hasbah sour gas field, which will feed the planned Fadhili gas plant with 2bn standard cubic feet per day (scfd) of gas, while the remaining 500m scfd will come from Khursaniyah.

The project is an important component of Fadhili project.

The client has extended the deadline to submit bids for the EPC contract by almost a month from the previous deadline of September 20, 2015, as firms needed more time to prepare the offers.

Period: 2018 Status: New Tender Tender Categories: Gas Processing & Distribution

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

Period: 2022 Status: New Tender Tender Categories: Public Transportation Projects

October 2015

QATAR QATAR LONG DISTANCE RAILWAY NETWORK PROJECT Project Number: MPP1592-Q Client Name: Qatar Railways Company (QRC) Address: Doha Fax: (+974) 4497 4333 Description: The project involves construction of a 400-km-long railway network.

The client has prequalified 15 consortiums for the Phase 1.

Period: 2018 Status: New Tender Tender Categories: Public Transportation Projects

PRODUCED IN ASSOCIATION WITH MIDDLE EAST TENDERS

INFRASTRUCTURE MIDDLE EAST

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TEN OMAN INFRASTRUCTURE PROJECTS

OMAN INFRASTRUCTURE PROJECTS Despite the oil price slump, Oman on track to beat the previous year’s record of $14.8bn in awards as the government proceeds with key projects

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October 2015

KHAZZAN & MAKAREM GAS FIELDS DEVELOPMENT

Owner: Ministry of Oil & Gas Budget: $16bn Progress: EPC contracts BP is developing tight gas reservoirs in Block 61 and the Khazzan and Makarem gas fields that cover an area of some 2,800 sq. km. The Khazzan Project has the potential to deliver up to 30% of Oman’s gas supply in 2020. BP plans to drill around 300 wells over 15 years to deliver plateau production of 28.3 Mcm/d of gas and 25,000 bpd of gas condensate. The company has awarded several contracts, including a $1.2bn engineering, procurement and construction (EPC) contract for building the central processing facility (CPF), two long-term drilling contracts totalling $730m and a contract worth $110m to build and install a gas gathering system.

TEN OMAN INFRASTRUCTURE PROJECTS

OMAN NATIONAL RAILWAY PROJECT

Owner: Oman Railway Company (ORC) Budget: $15.5bn Progress: EPC stage Oman’s national railway network comprises 2,244km of track with 35km of tunnels, 40km of bridges, 50 terminals and eight marshalling yards. The network, which will connect the ports of Sohar, Duqm and Salalah, will comprise a double non-electrified track carrying both freight (120km/h max speed) and passenger (220km/h max speed) traffic. A consortium headed by Técnicas Reunidas was awarded the $149m project management consultancy (PMC) contract.

Oman Rail is studying the prequalification bids for the EPC contract covering three key segments of the railway project. Technical and commercial submissions for Segment One - a 207 km-stretch that links Sohar Port with Buraimi are currently under evaluation.

DUQM OIL REFINERY DEVELOPMENT PROJECT - PHASE 1

Owner: Oman Oil Company Budget: $6bn Progress: Expression of Interest (EoI) stage The project is being developed by Duqm Refinery and Petrochemical Industries Company (DRPIC), a 50:50 JV of Oman Oil Company and Abu Dhabi’s International Petroleum Investment Company (IPIC).

In March, Foster Wheeler was awarded the Front-End Engineering Design (FEED) contract for project. The first phase will see the development of a 230,000bpd grassroots merchant export refinery within the Duqm Special Economic Zone (SEZ).

Designed as a full conversion refinery, the plant will use delayed coking technology for bottom-of-the-barrel processing.

The second phase is being planned as an associated petrochemical complex.

LIWA PLASTICS COMPLEX

Owner: Oman Oil Refineries and Petroleum Industries Company (ORPIC) Budget: $5.2bn Progress: RFQ stage ORPIC plans to award four EPC packages for building the Liwa Plastics Industries Complex in the fourth quarter of 2015. The programme is divided into four major schemes - a polymers plant in Sohar industrial area, a natural gas liquids (NGL) extraction plant in Fahud, a steam cracker plant and a 300-km-long pipeline from Fahud to Sohar. Liwa Plastics Industries, which will go on stream by 2018, will produce polyethylene, polypropylene and butene.

ORPIC is aiming to raise $4bn from international financial institutions and targeting to sign financing agreements concurrently with the award of the EPC contracts. Five bids have been received for the polymers plant in Sohar Industrial Area, and three bids for the NGL plant in Fahud.

October 2015

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TEN OMAN INFRASTRUCTURE PROJECTS

BATINAH EXPRESSWAY CONSTRUCTION PROJECT

SOHAR REFINERY IMPROVEMENT PROJECT

BIDBID - SUR DUAL CARRIAGEWAY PROJECT

Owner: Ministry of Transport & Communications Budget: $3.9bn Progress: Work underway

Owner: ORPIC Budget: $2.1bn Progress: Construction underway

Owner: Ministry of Transport & Communications Budget: $1.1bn Progress: Under construction

One of the biggest road projects in Oman, the Batinah Expressway will act as an extension of the Muscat Expressway and run for 265km to the Oman-UAE border. To be complete by 2018, the expressway will have four lanes on each side, with 75 interchanges and tunnels.

The first 11 packages, including six main packages, have already been floated and are under various stages of planning and construction. Work has started on Packages 2, 3 and 4 while contracts are being finalised for Packages 6, 7,8,9,10 and 11. Parsons International and Turkey’s Bosphorous Technical Consulting Corporation (BOTEK) rendered consultancy services for the project.

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SRIP aims to overcome the existing technical constraints resulting from the change in the quality of the Oman Export Blend (OEB) and meet the increasing demand for refined products. Sohar Refinery will add 82,000bpd to its existing capacity of 116,000bpd, taking the total capacity to 198,000bpd. The ground breaking for the project was done in June 2014. A joint venture of Petrofac and Daelim was awarded the EPC contract in November 2013. Recent developments include the appointment of Trowers & Hamlins as legal counsel to advise the consortium of 21 local and international financial institutions funding the project.

In November 2014, Majis Services was awarded a contract for long-term supply of cooling seawater to the project.

The project connects the cities of Bidbid and Sur by a 247km long, six-lane highway, and also includes the building of nine interchanges, two underpasses, two overpasses, associated retaining wall structures and about 171 reinforced concrete culverts. In February 2011, a joint venture of Italy’s Astaldi and Turkey’s Ozkar Insaat was awarded $325.2m Phase 1A while a JV of UAE’s Habtoor Leighton and Turkey’s STFA was awarded $300m Phase 1B. Phase 2 was awarded in February 2014, with $251 Phase 2A going to L&T Oman and local KAS Construction bagging the $233m Phase 2B. In August 2014, Hill International was awarded the Project Management Services contract.

TEN OMAN INFRASTRUCTURE PROJECTS

INDEPENDENT WATER PROJECTS (IWP)

YIBAL KHUFF SOUR GAS DEVELOPMENT

Owner: Oman Power and Water Procurement Company (OPWP) Budget: $1bn (cumulative) Progress: RFQ phase

Owner: Petroleum Development Oman Budget: $900m Progress: EPC awarded

Five consortiums have been prequalified by the OPWP to participate in the next phase of a competitive tender for a license to build the Barka and Sohar water desalination projects on Oman’s Batinah coast. The two projects, at $500m each, constitute the single biggest procurement of new water desalination capacity in Oman’s history. The bidding groups that have been ‘unconditionally’ qualified to participate in the tender are Abengoa Consortium, GDF Suez, Hyflux, Valoriza and Veolia Consortium.

Three other groups, led by GS Inima, Itochu and JGC, were deemed ‘conditionally qualified’ to participate in the tender. Barka IWP will have a contracted capacity of 281,000 m3/day while Sohar IWP will have a capacity of 250,000 m3/day.

Petrofac has been awarded the EPC contract by PDO for Yibal Khuff sour gas project, located approximately 350 km southwest of Muscat. The development of the field will add to PDO’s future oil production whilst the associated gas will be utilised for power generation and enhanced oil recovery developments.

Under the terms of the four and a half year contract, Petrofac will be providing reimbursable detailed engineering, and construction and commissioning management support services and procurement on an incentivised pass-through basis. This will extend throughout construction and during start-up of the integrated oil and sour gas facility. The commissioning of the project is expected in 2019.

SUR STEEL PLANT PROJECT

Owner: Sun Metal Casting Budget: $400m Progress: Construction underway The project involves the setting up of an integrated steel mill with capacity of 2.5m t/y of liquid steel, which will be converted into finished sale-able products such as TMT re-bars, low alloy rounds, carbon construction and low alloy sections, and stainless steel seamless pipes. South Korea’s Posco Engineering and Construction will undertake the project planning, engineering, procurement, construction and operation and maintenance of the plant. Japan’s Sojitz Corporation has been appointed as raw material supplier and finished product offtaker. Sojitz will also supply the plant equipment. Most of the steel products are for the domestic market and the larger Gulf region. When operational tentatively in 2017, it will be the first non-petroleum based industrial investment in Sur Industrial Estate.

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COVER STORY

Henri Poupart-Lafarge 28

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COVER STORY

FULL RANGE

Rail leadership Alstom Transport’s Henri Poupart-Lafarge bets on integrated railway systems to solve urban mobility challenges ore than 50% of the world’s population now lives in cities; by 2030, this figure is set to reach 70%, which will represent almost five billion people. This trend increases the requirement for urban mobility, aiming to reduce bottlenecks and the inconvenience of congestion in public transport. Also, environmental issues are fuelling the demand for innovative solutions, which are cleaner and more environmentallyfriendly.

“More than half of the cities in the world with two million inhabitants are still not equipped with metro systems,” says Henri Poupart-Lafarge, President, Alstom Transport. “So I would say, regardless of the speed and pace of urbanisation, there are already huge markets to address, particularly in mass transit.”

According to UNIFE, the global train market is growing steadily with an annual growth of around 2.8% for the next few years.

The fastest growing market is the urban rail market, which is projected to grow at 4.1% annually for the next four-five years.

The urban rail market is growing fastest in the emerging economies of Middle East and Africa, South America and Asia Pacific that have to have to cope with rapid urbanisation.

Poupart-Lafarge says: “Alstom Transport has two basic answers to address the demand for mass transit – the tram and the metro.

With more than 2,100 Citadis trams sold to 54 cities worldwide, Citadis has become a global benchmark in the tramway market.

With more than 4,500 Metropolis sold to over 20 cities, Alstom is currently the second largest metro supplier in the world.”

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INTEGRATED OFFERINGS However, even as the momentum in the urban rail market is shifting to emerging economies, what is equally important is the shift from rolling stock to full turnkey systems.

The latter combines rolling stock, track, power supply and signalling.

“When you are talking about growth in the urban market, you are not only seeing global volume growth but also two trends - one, towards the emerging economies and two, towards integrated solutions rather than just pure rolling stock,” says Poupart-Lafarge.

According to UNIFE, between 2015 and 2017, 35% of urban rail projects will come in the form of invitations to tender for integrated solutions. This is particularly the case in emerging markets in which public authorities often finance their projects in the form of public-private partnerships (PPP).

The Alstom Transport executive says: “In our case, rolling stock represents only half of our business activity. The rest of it is made up of infrastructure, signalling, systems and maintenance. As a result, we have the unique ability to integrate railway systems.

Having mastered power supply, track laying,

“We have won more than three-quarters of the orders for turnkey systems in tramways. Apart from technical expertise, what has helped us is our ability to integrate the tramway system within the city. This has worked to our advantage as most tramway systems are becoming a kind of signature of the cities where they operate.”

HENRI POUPART-LAFARGE, PRESIDENT, ALSTOM TRANSPORT

signalling and system integration, we are uniquely placed to address this new market for integrated solutions.”

The regions with the most integrated urban rail projects are the Middle East and Africa (which represent 80%) and Latin America (50%). An integrated solution requires just one invitation to tender and a single contract for managing the project, which simplifies matters considerably for the customer. Besides, it is also easier in terms of securing financing for the project; cost optimisation and the respect of schedules are guaranteed for the customer.

Alstom manages all the stages in setting up an integrated system, from its design, to its complete validation and commissioning. In addition, the company can provide financing support to customers through multilateral agencies, export credit, bank finance and also Public Private Partnership (PPP) schemes.

In the case of metro systems, Alstom partners with civil works companies. In a totally new line, for example, civil works can represent 80% of the system. Alstom only takes up the electro-mechanical side, which includes tracks, power supply, rolling stock and signalling. However, with tram systems, civil works are far less complex due to which Alstom can take responsibility for the full system including the civil works, which is typically sub-contracted to a civil works company under Alstom’s oversight.

METRO SOLUTIONS Alstom’s range of integrated metro systems includes Metropolis and all of its associated sub-systems: signalling, Hesop energy recovery system, tracks, project management, engineering and integration The flagship integrated system called Axonis was launched two years ago at UITP 2013. Axonis is an automated metro system targeted at highly populated cities that lack metro systems and with underground areas that are difficult to access. It is an elevated metro system, which fits in with the urban

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COVER STORY

landscape thanks to a narrow viaduct but can also be run on underground lines or at street level if needed. Also, Axonis is a non-proprietary system, making it easy for cities to increase their fleet and develop line extensions through an invitation to tender process.

“We are focussing on optimising the full system in order to reduce the CapEx and the OpEx of the metro including the duration of construction of the metro,” says PoupartLafarge. “In fact, we are building part of the Riyadh Metro using the components that make up Axonis. We are also proposing Axonis for Jeddah and Baghdad.”

“I also feel that a lot of ideas can be taken from Axonis for the Dubai Metro extension.

For example, we have reversible substation Hesop that helps in recovering and saving energy. These systems help in developing new ideas that are very much suitable for the GCC.” TRAM SOLUTIONS As with integrated metro systems, there is also a growing demand for integrated tramways. Integrated tramway solutions are set to represent EUR 3.2bn in the global urban market between 2015 and 2017 - an increase of 5.7% when compared to 2012-2014.

Attractis, Alstom’s integrated tramway system, was developed to fulfil this increasing demand. It includes Alstom’s Citadis tram and all associated infrastructure: the track, power supply, passenger stations, communication and information system, line operation supervision and control systems, ticketing, and maintenance.

Launched during UITP 2015, Alstom claims that Attractis can be implemented in the record time of 30 months from the design phase at a cost 20% below a traditional tramway system.

“The 20% saving is coming from the system itself,” says Poupart-Lafarge. “The challenge is how to optimise the full system minimising the number of interfaces, taking advantage of the standard type of systems wherever you can put them in.”

To ensure the availability of Attractis in record time, Alstom has developed optimised construction methodology involving intelligent section-by-section scheduling of civil and electromechanical works to minimise construction time, disturbance

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and costs. And like Axonis, it will be a nonproprietary system.

Poupart-Lafarge points out that Attractis is also the first rail system to adopt ITxPT (Information Technology for Public Transport), an open IT architecture designed to improve interoperability between IT systems and decrease costs related to multiple equipment. With this new norm, the integration of multimodal urban transport systems (tram, bus, electric car sharing services, etc.) is synchronised, allowing transport authorities to offer passengers innovative information solutions, journey planners and e-ticketing systems.

Metro Metropolis is a key component of the Axionis solution

Trams Alstom has sold more than 2,100 Citadis trams

“We have won more than three-quarters of the orders for turnkey systems in tramways,” says Poupart-Lafarge. “Apart from technical expertise, what has helped us is our ability to integrate the tramway system within the city. This has worked to our advantage as most tramway systems are becoming a kind of signature of the cities where they operate.”

NEW INFRASTRUCTURE SOLUTIONS Autonomy and energy efficiency are essential to enable tramways to blend in with the urban environment. For 15 years, Alstom has been developing catenary-free solutions in order to ensure the full integration of the trams into

historic city centres. This range includes APS Ground Power Supply, which has been sold to 10 cities in 12 years including Dubai, as well as embedded batteries, installed on the Nice tramway in France, and supercapacitors.

It is possible to combine these technologies to reduce energy consumption, as is the case for the Citadis tramway in Rio (Brazil), which will operate at 80% on APS and at 20% on supercapacitors.

“All the systems we have sold comprise at least one catenary-less or APS portion.

We have 18m km of experience in catenary free solution,” says the Alstom Transport executive.

The latest addition to the range is SRS – an innovative ground-based static charging system - based on the technology and safety principles of APS technology. Whereas APS supplies power to the tram while in operation, SRS charges the tram when stopped at stations in less than 20 seconds. Between two stations, the tram runs autonomously in nominal and degraded modes without the use of a catenary and energy is recovered during braking phases. Energy comes from compact electrical power supply cabinets that are easily integrated into stations. SRS is a nonproprietary solution, which can be used by tramways other than those made by Alstom.

On the business front, Alstom Transport has spread its wings to be present in all continents both commercially and industrially, ensuring it has supply chains in all the continents. Poupart-Lafarge isn’t too worried about the impact of low oil prices on railway projects.

He continues: “We can still see ongoing rail projects in the GCC so it wouldn’t be fair to conclude that the current turmoil in oil markets has led to a drop in activities. We are watching the situation closely but so far the governments in the region have decided to keep their focus on public transportation.”

Poupart-Lafarge cites as examples the Saudi government’s commitment to public transportation projects in Jeddah, Medina and Makkah, the under-implementation Riyadh metro; the Expo 2020 extension of the Dubai Metro in the UAE and the Lusail Tramway and the Doha Metro in Qatar.

He says: “This is a part of the world which can easily reach EUR 1bn/year of activities, which is in line with our orders last year. Out of the EUR6bn in sales, we target EUR 1bn from this region.”

ADVERTORIAL

TRANSPORTATION

NATRANS Interconnectivity & Interoperability

bu Dhabi is gearing up to host the region’s most anticipated transport event covering the rail, road and maritime sectors. The first event of its kind, NATRANS Arabia was formulated upon the request of the Federal Transport Authority – Land and Maritime, to help showcase the $422bn projects which will integrate the region’s transport infrastructure over the next five years.

Under the patronage of His Excellency Dr Abdulla Belhaif Al Nuaimi, Minister of Public Works, Chairman of the Federal Transport Authority - Land and Maritime, the event kicks off on the 25th October at the Abu Dhabi National Exhibition Centre and has attracted some of the leading visionaries across the rail, road and maritime sectors, plus an array of key international solution providers who can help the region complete their ambitious transport projects.

HE Dr Abdulla Belhaif Al Nuaimi will inaugurate the exhibition on the morning of the 25th October and will provide the opening address to a captive audience, eager to learn about the latest transport developments.

Following the Minister’s opening address, NATRANS Arabia will head straight into the established two-day Middle East Rail Opportunities Summit, which will be chaired

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by John Greaves – Secretary General of ‘Last Mile Consortia’.

Over the two days, designs for nearly U$200bn worth of network projects will be presented. With Strategic Sponsor Etihad Rail, who will be presenting the latest updates for their mega regional rail project on the opening morning, key speakers across for the rail conference include: Mike Shears, UK Trade and Investment, UKTI Specialist – Railway; Dirk Ahlborn, Hyperloop Transportation Technologies, CEO; and Hiroyuki WATANABE, Senior Manager, East Japan Railway Company (JR East) who will share Japan’s considerable experience in high speed railways.

Mike Shears, from the UKTI, recently commented during a networking event, jointly hosted by NATRANS Arabia and the UKTI: “There is significant rail expansion in the Gulf region. Dubai and the UAE have been at the forefront of this development and other Gulf Countries are looking to replicate this success. … Abu Dhabi has plans to implement a comprehensive and integrated urban mass public transit network over the coming years.

Etihad Rail Phase one is complete and currently undergoing test running with Phase two already out to tender. Phase two will see the national main-line rail network connect with Dubai and extend, and connect, at the border with Saudi Arabia.”

On how NATRANS can support the industry, Shears went on to comment “NATRANS provides the UK, and others, with the opportunity to engage with all significant UAE Clients, Project Teams and local suppliers.

All major Clients are committed to exhibiting and participating at the NATRANS Conference and Exhibition … provide[ing] the opportunity for UKTI and UK Suppliers to promote our

capability and ensure that it considered and available to contribute to many of the upcoming Projects in the region. …Furthermore, the event will also facilitate discussions that allow us to demonstrate the depth and extent of the UK supply chain, many of whom are already engaged on Projects in the region, and potentially introduce other extremely capable suppliers that may even be new to the market.”

An exciting and eagerly anticipated presentation will come on the second day from Dirk Ahlborn, CEO of Hyperloop Transportation Technologies – the brains behind building Elon Musk’s 760MPH HYPERLOOP. HYPERLOOP is a high speed, intercity transporter using a low pressure tube train which would reach a top speed of 800 miles per hour (1,300 km/h) with a yearly capacity of 15m passengers. You can hear Dirk explain their vision on Hyperloop and the groundbreaking project in Quay Valley, California.

Running alongside the two-day rail conference will be a large scale three-day exhibition, which showcases more than 80 leading international solution providers plus provides live demonstrations and seminar theatres covering road, rail and maritime.

A major feature for road professionals, the Emirates Driving Company will occupy a large presence where they will demonstrate both their ‘rolling car’ plus their driving simulators, where trained experts will be on hand to build a broader awareness of the importance of driving safely and the value of human lives. Day 3 will see the LMC (Last Mile Consortia) host a free forum which will feature a platform of over 45 world class speakers, thought leaders and specialists who will share industry insight on multimodal transport and the interoperability of transport systems.

With Strategic Sponsor, Etihad Rail; Official Maritime Partner, Dubai Maritime City Authority; Gold Sponsor, ESI Rail; Silver Sponsor, PTV Group; Bronze Sponsor, Laborex; Parking Solutions Partner, LeanPark; Hybrid Innovation Partner, Al Futtaim - Toyota; Geo-Synthetics Partner, Terram; Solutions Provider Xrail; and Associate Sponsors Aedas, Kistler, Lecia Geosystems, Mitsubishi Electric, Pandrol, Parsons and LMC, NATRANS will be an essential, 3 day, packed event for transport professionals.

Make sure you come down to the Abu Dhabi National Exhibition Centre from 25 – 27 October, where Infrastructure Middle East is the Official Regional Media Partner. You can register for your free pass in advance – visit www.natrans-arabia.com.

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SPECIAL REPORT

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Future ready Rabii Ouadi, Head of Business Development, Transportation Solutions at Huawei Enterprise, Middle East and North Africa spoke to Infrastructure Middle East on the trends in railway communication technology hy is an ICT major like Huawei keen on the Middle East Rail sector?

Huawei Middle East is focusing on the rail sector because of the region’s drive to modernise its infrastructure and we believe that the foundation of this transformation lies with ICT. With a $200bn investment, the GCC Rail network is set to change the face of public transportation and logistics in the region, furthering a collective vision of a closelyintegrated regional community.

Huawei’s global expertise in developing tailored ‘future-ready’ 4G rail technology solutions, allows us to help build a better connected railway that will offer citizens more enhanced travel experiences. We aim to place passengers at the heart of the region’s railway transformation by emphasizing

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safety, comfort and reliability as critical components of railway infrastructure.

Tell us about Huawei’s tailored railway technology solutions?

Huawei has a range of tailored ‘future-ready’ 4G rail technology solutions, which we have implemented within railway infrastructure projects across the word.

Rabii Ouadi

Our GSM-R solution is a reliable and secure communications system, developed specifically to enable operational digital communication between train drivers and railway control dispatchers. It allows for railway signalling and operational communications to be interoperable between various railway companies and ensures the highest level of service quality at all times – even at the highest of train speeds. Delivering efficient transmission of voice and data communications, including train-control signalling based on European standard ETCS level 2, our solution enhances railway safety operations and fully complies with the EIRENE standards (European Integrated Radio Enhanced Network), while being ready for the future standard evolution thanks to its readiness for 4G-LTE. Huawei also has a range of e-LTE 4G technology that can enhance railway operations as well as station and on-board passenger experience. With a strong dedicated Mobile Broadband Network, railway operators can offer advanced features to increase the efficiency of railway staff and attractive infotainment services to passengers.

Huawei’s train-ground wireless networks, based on broadband wireless technologies, enhance passenger experiences by allowing on-board internet and mobile coverage.

It enables passengers to video-call home, connect to the office over WiFi and keep track of their travel itineraries – all from their mobile devices. Railway operators can also share information on journey updates, passenger and train status’ and keep abreast of security issues by utilising the latest in CCTV monitoring technology.

Have you deployed these solutions in the region?

Huawei has wealth of experience deploying its ICT solutions within the Middle East’s rail sector. In 2012, Huawei was chosen to work on the Etihad Rail project to provide communication network infrastructure with GSM-R, MSN (Multi-Service Networks) and a Masterclock.

Huawei also successfully deployed the mobile transmission network for the Dubai Metro Green Line, which allowed for its thousands of passengers to have access to mobile services across 18 of its metro stations.

SPECIAL REPORT

FARE COLLECTION

Cloud-ready ticketing TransCity provides payment options for all levels, from contactless passes and bank cards to smartphones hales launched TransCity, a cloud-ready range of evolutionary fare collections solutions for public transport systems at the UITP (International Public Transport Organisation) Exhibition 2015 in Milan earlier this year.

As a natural evolution of Thales’ fare collection solutions, TransCity, a weboriented technology, simplifies both passengers’ journeys and operators’ day-today operations.

TransCity redefines the concept of urban travel by providing passengers with a variety of travel passes. Travelers will be able to either swipe their cellphones or contactless bank cards to enter public transportation; or use their contactless travel cards or simply use a traditional ticket.

In addition to conventional ticket kiosks

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and automatic vending machines, payments can be processed on-line or on the go, with smartphones, or through newer technologies such as near-field communications (NFC).

François Baylot, Fare Collection Strategy Manager, Thales says: “We have tried to build a solution where we can integrate as much as possible the technologies that users have with them. It takes advantage of mobile phones and payment cards that most of the people carry all the time. The validator, for example, is capable of interfacing with smart phones using NFC or read barcodes on the screen, and even bank cards.”

Operators using TransCity will be able to better manage and supervise their network infrastructure, anticipate potential equipment failures, as well as optimising their maintenance services. In addition, with Thales’ big data analysis tools, TransCity can help operators monitor critical periods to better accommodate travelers’ needs such

as regulating train traffic or entrance-exit configuration.

According to Baylot, operators benefit by saving some of the costs associated with traditional fare collection systems.

“Typically, they need to put people at stations to sell the tickets or put vending machines that need to be maintained,” he continues. “In developed countries, the costs for operating the sales of tickets is usually between 10-20% of the cost of the ticket. That could be obvious savings because with bank cards, the main cost is the processing cost of the payment which tends to be much less.”

The TransCity line consists of five elements – customer, card, fare, traffic management, and business analytics - all of which guarantee both operators and passengers the best possible user experience. In addition, its modular architecture allows operators to choose the combination of products that best respond to their specific infrastructure needs.

Making the travel passes work requires close collaboration between the transport operator on the one hand, and the mobile operator and the bank on the other.

Baylot says: “Dealing with the banks is about managing risk in the case of nonpayment. Who takes what risk is negotiated between the transport operator and the bank.

For example, Transport for London (TfR) is supporting bank cards after negotiations with local banks. The same approach can be applied in the region by the transport authorities to enable people to pay for public transport using bank cards.”

Baylot notes that the big challenge in public transport with bank cards was to have a solution which is fast enough to process the flow of passengers.

He continues: “Our validator can deal with the latest generation of bank cards, and takes less than half a second to process the payment.”

Baylot admits that compared to bank cards, the business model involving telecom operators has proved to be more difficult one. This issue is addressed by Host Card Emulation (HCE) technology, which permits a smart phone to perform card emulation on an NFC-enabled device.

He says: “With HCE, you have the freedom to emulate cards so it could be transport card or payment without being dependent on the mobile operator, a great example being Apple Pay.”

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SPECIAL REPORT

PROJECT UPDATE

Railway projects worth $427bn under construction in MENA A total of 36,000km of new railway, metro and light rail lines are planned in the Middle East compared with 19,970km that exist now he total value of all projects planned or under construction in the Middle East is $427bn,” said MEED Projects director of content and analysis Ed James, Director of Content and Analysis at MEED Projects, while speaking at MEED MENA Rail & Metro Summit.

“Saudi Arabia, Turkey and Qatar are the biggest markets. But across the board, we are seeing very ambitious railway projects planned.”

The largest planned project is the RiyadhDammam high speed project worth $14bn which is under study. Other major projects planned include Tehran Metro’s lines eight and nine and four express lines and the Jeddah Metro, which is expected be tendered by the end of this year.

Infrastructure Middle East presents the updates about railway projects in the region.

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BAHRAIN: LIGHT RAIL CONSULTANCY BIDS SOON Bahrain is preparing to invite bids before the end of 2015 for the initial work on its proposed light rail network and how it will connect with the GCC railway.

“The next phase is to connect the GCC railway with Bahrain’s public transport network,” Bahrain’s Deputy Minister for Land and Post Mariam Jumaan,

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Undersecretary, Land transportation at the Ministry of Transportation and Telecommunications (Bahrain) said while speaking at MEED MENA Rail & Metro Summit. “We are looking at the possibility of light rail and we are going out to tender for consultancy for this project.”

Jumaan said that that this will involve reviewing earlier studies about possible public transport modes in Bahrain. She said that neither a metro nor a tram system would work in Bahrain which has limited available land, adding that an elevated light rail network like a monorail has better chances of success.

Jumaan said that the feasibility study into options for expanding the King Fahad Causeway between Saudi Arabia and Bahrain commissioned from Canada’s SNC Lavalin will soon be completed. It will include recommendations about whether an expansion of the causeway should include the construction of a road-only link or one that supports both road and railway traffic.

EGYPT: BIDS CALLED FOR CAIRO METRO LINE Consultant engineers have been invited to bid for work on the first phase of Cairo Metros Line 4 by 28 October, Eng. Sameh Refaat, Vice chairman of Egypt’s National Authority for Tunnels told the MEED MENA Rail & Metro Summit in Dubai.

Refaat said that a consultant is expected

to be appointed by the first quarter of 2016.

He said design consultants are finalising the tender documents for construction work on line four, which they intend to issue by the end of the year.

NAT also recently launched a signalling tender for phase 4b of line three, which is under construction.

The $297.69 contract for the construction of Line 3 Phase 4a of the Cairo Metro between the Haroun and El-Nozha stations was awarded in April 2015. The winning consortium comprised French contractors Vinci Construction Grands Projets and Bouygues Travaux Publics, and their Egyptian joint partners, Orascom Construction and Arab Contractors.

France’s Alstom was awarded two contracts totalling $85m to supply signalling systems and infrastructure work for phase 4a of Line 3.

The Cairo Metro is run by the stateowned NAT and comprises two lines that are fully operational and a third that is under construction.

JORDAN: INVESTORS SOUGHT FOR $300M RAIL PROJECT Amman is inviting investors to support a $300m railway line between Amman and Amman Airport that will follow the alignment of the Hejaz Railway.

The line will be 32 km long and have 12 stations, Jordan Hejaz Railway Deputy

SPECIAL REPORT

Housley said about the progress of Red Line South. “The enabling batching plant and precast yard are fully operational and are working at peak capacity.”

“More than 75% of all foundations and more than 60% of all piers are complete and 35% of all pier caps have been installed in readiness for viaduct installation,” said Housley, adding that nine viaduct spans have been completed. The Red Line South elevated and at grade project calls for the construction of three stations: Economic Zone, Ras Abu Fontas and Wakra.

“The stations at Economic Zone and Ras Abu Fontas have progressed to concourse level. The Al Wakra station is progressing at a pace.”

Work has started on station mock-ups where finishes and fittings can be displayed and approved.

Apart from Doha Metro, work on four of the five at grade stations on the Lusail tram scheme has been completed. Qatar is also planning to tender the first phase design and build of the long-distance freight and rail network early next year.

Director Abdullah Malkawi said, adding that plans call for the line to be extended to Zarqa, Jordan’s second city.

QATAR: TESTING OF DOHA METRO SECTIONS IN 2016 A world record 21 tunnel boring machines are being used on the Doha Metro project, which so far has completed almost 50 km of tunnels.

Tests of the first part of the Doha Metro are due to start in the autumn of 2016, setting the scene for the completions of the $15bn first phase in 2019.

Louis Berger Egis Rail joint venture (LBERJV) Project Director Peter Housley said that the civil work in the 6km elevated and at grade section of Red Line South is due to be finished in less than one year’s time.

LBERJV provides project management consultancy services for elevated and atgrade sections of Red Line North, Red Line South and the Green Line. They have a combined length of about 16 kilometres.

“Civils design is complete with only the design of stations fit-outs remaining,”

DUBAI: RTA INTRODUCES TRANSIT-ORIENTED DEVELOPMENT (TOD) CONCEPT The Roads and Transport Authority (RTA) has started the prequalification process for the Union Oasis project, which will be developed on a Public Private Partnership (PPP) basis. Work is currently underway in revising the Project Manual along with the bidding conditions for selecting the best partners to align them with the Law No (22) for 2015 governing the PPP in Dubai.

According to the new law, the agreement will be valid for 30 years in addition to 3 years as a grace period for completing construction works along with other facilities.

The Union Oasis project comprises the construction of towers above the Union Square Metro Station spanning an area of about 15,000 sqm and is the first TransitOriented Development (TOD) concept in the region. The towers incorporate residential units, offices, vital utilities, retail outlets, among others.

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SPECIAL REPORT

IRAN FOCUS

Back on track Tehran reveals its urban railway ambitions up to 2022 ran boasts of the largest gas reserves on the planet, the fourth largest oil reserves, a population of 80m with 85% adult literacy rate, a selfsufficient agricultural sector and a diversified industrial sector which includes the region’s largest automotive industry. With the imminent relaxation of trade sanctions - expected to take place by the end of 2015 - Iran promises to be the Middle East growth story of 2016.

At MEED’s MENA Metro & Rail Summit, Dr Mohammad Montazeri, Deputy Managing Director, Planning and Logistics, Tehran Metro, highlighted the ambitious plans for the capital city’s widely used metro system – to compare, the average daily metro patronage globally is 1.1m; in the case of Tehran, it is three million.

Tehran is a city of 8m people with a population growth rate of 1.5%, which is relatively low for a city of its size. The high cost of living has pushed people to satellite cities resulting in a daytime population of 12m.

The traffic congestion caused by people travelling into Tehran from the satellite cities

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and the high level of air pollution linked to it have been the key drivers for building an extensive metro system for the Iranian capital.

What exacerbates the air pollution is the fact that Tehran is surrounded by mountains, which blocks natural ventilation and air flow.

During winter, ‘air Inversion postpones air circulation and as a result, the polluted air stays in the lower layers of the air.

“More than four million vehicles account for 88% of air pollutants produced in Tehran,” says Montazeri. “More than 1,200 tonnes of air pollutants are disseminated in Tehran especially SOx, NOx and Co and also suspended particulates.”

The transport authorities in Tehran have set a goal of establishing an integrated, available, safe, easy, comfortable and clean transportation system for better quality of life in the capital by 2025.

CHOOSING THE METRO “After analysing and comparing different public transportation systems by taking into consideration criteria like speed, service reliability, space occupation, air and noise pollution and energy consumption, we decided to go with the metro,” says Montazeri.

Tehran’s initial long-term urban rail plan envisaged four express lines (192km), seven metro lines (367km) and five tram lines (60 km). Currently, Tehran Metro has five lines in operation with a total length of 170km, 95 stations and carrying 20% of public ridership.

“Lack of metro cars is the main problem,” says Montazeri. “If we buy more metro cars, we can increase our share to 30%. The headway now us about four minutes but the designed headway is two minutes.”

Lines six and seven are construction with a total length of 64km and 53 stations will be completed by the end of 2016.

Montazeri said that the city’s transport authorities revisited Tehran’s initial transportation master in view of the rapid expansion of the city and decided to expand the existing network.

“We plan to build three more metro lines as per the latest study,” says Montazeri.

“The design of Line eight has already been completed.”

Additionally, there will be three express lines (out of the original four, only one line has been constructed) and one Light Rail Transit (LRT) system.

Line eight will have a length of 32km and 25 stations; the same for line nine is 21 stations and 27km and for line 10, it is 25 stations and 39km. When the revised network is completed, Tehran Metro will carry 60% of the total passengers per day.

“We have designed the lines, but construction hasn’t started due to a paucity of

SPECIAL REPORT

funds,” says Montazeri. “Based on the revised network design, we need about 3,000 metro cars up to 2025.”

FUNDING MIX The funding for construction of the Tehran Metro comprised a mix of government, municipality, local and international funds.

Since 2006, international loans have dried up while local banks stopped funding since 2011.

Currently, the construction of metro projects is being financed through government funds (11%) and municipality funds (89%) with 50% of the latter coming through property development.

Tehran Metro has devised an interesting Public Private Partnership model for property development. Under the arrangement, the metro gives the layout of the station to private sector; the municipality provides the land and the permissions; the government gives loan and E&M system, and private sector uses all of the above to complete the metro system.

The revenue generated from the property

development model covers more than 50% of the metro construction costs. There are more than 40 station development projects underway in Tehran with a total value of $2bn.

In the case of operations, only 25% of the cost are covered by tickets. The rest of the costs are covered through government, municipality and advertising revenues.

On the jobs front, the ratio of direct and indirect jobs in the metro is estimated to be 10.

“Each line of 20km of Tehran Metro takes about five years to be constructed with 70 years in operation. Each line creates 16,000 jobs directly and 10 times more indirectly,” says Montazeri.

Interestingly, more than 85% of the metro is produced locally.

“Forty percent value of urban metro cars, 60% of the value of suburban cars and 80% of the metro equipment is produced locally,” claims Montazeri.

The other benefits of metro conserving fuel, which has been estimated at 0.67litres/

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passenger and mitigating air pollution.

“My own study shows that building new metro lines will result in less polluted days in the capital city,” says Montazeri.

Tehran’s municipality is committed to public transportation, especially the metro with the Iranian government facilitating the projects. Lack of finance, which was made more acute due to international trade sanctions, came in the way of executing to the plan. The relaxation of sanctions is expected to ease the financing constraints for transportation projects in Iran, including the Tehran Metro.

Montazeri explains. “We are looking for finance for the metro lines, civil works and equipment because we don’t want to depend only on Chinese finance. We don’t really need engineering and construction expertise as we have that within Iran. What we are looking for is technology and equipment and technology transfer from foreign companies looking to enter our rail sector.”

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TRANSPORTATION

DESERT CHALLENGE

Highway through the sands Volvo CE played a crucial role in helping build the first ever highway through the world’s largest and most barren desert – the Empty Quarter he Empty Quarter in the Kingdom of Saudi Arabia is the largest sand desert in the world. Temperatures range from 50 degrees C to - 1 degree C in the course of a single day and the sand and dust are relentless. The nearest city is 1,000 km away. Saudi contractor Al-Rosan Contracting was contracted to construct a 256km-long highway through the desert linking the Kingdom to Oman. Volvo CE was selected as the construction equipment supplier with the sourcing taking place through FAMCO. The construction of the 256 km road was completed in sections and involved gigantic amounts of sand ‘cut and fill’. The sand transported to construct the bridge was 130m m3 – the equivalent of 26 giant pyramids – and 12m m3 of material was needed to protect the embankment of sand from wind and water.

“This is the first time the region has witnessed such a remote construction site,” says Amal Almizyen, MD, FAMCO

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“Our strategic role in this project and the successful delivery of the targeted results are a great testament of FAMCO’s standards for service and aftersales support.

We employed our expertise and energy to overcome all challenges and obstacles of this unique project’’ ESSAM AL-MALIK, REGIONAL MANAGER (CENTRAL PROVINCE), FAMCO SAUDI

Saudi. “It was necessary for us to build our modular maintenance facility to support the contractors.” He spoke to Infrastructure Middle East about the challenges involved in building a road through the wilderness.

Excerpts from the interview What role does FAMCO play in the overall development of KSA’s infrastructure?

FAMCO has been involved in many important infrastructure projects in the Kingdom of Saudi Arabia. The road project of the Empty Quarter (Rub al Khali) is a great example.

Due to its reputation and quality of products and services, FAMCO has not only been an equipment supplier by choice but has been a strategic partner to many key contractors who were entrusted with several vital infrastructure project across the Kingdom.

This project has been one of the most challenging ones because it presented its own unique challenges. This is the first time the region has witnessed such a remote construction site. It was necessary for us to build our own modular maintenance facility to support the contractors.

Other examples of challenging road projects that FAMCO is involved in are the Haramain railway project connecting Jeddah-Makkah-Medina, where we had limited time, and the machines were working with very tough hard rocks. Another example is the service road plus security fence project in the Kingdom’s southern borders with Yemen and Oman, where only Volvo

TRANSPORTATION

machines were performing in the extreme environments of dust, heat and rocky environment. Another project is the Haram expansion project in Makkah.

What were the challenges unique to this project?

The Empty Quarter has been a rugged natural barrier between the Kingdom of Saudi Arabia and the Sultanate of Oman for centuries. This is one of the world’s hottest, driest and most unforgiving environments. The entire project was a huge challenge from day one whether it was the climatic conditions, the geography of the area, the distance from the nearest inhabited city or availability of spare parts, logistics and services.

The highway starts at a site near the Shaybah oil well owned by Saudi Aramco and runs up to the border of the Sultanate of Oman. One of the many challenges facing the Rub al Khali project is that the road passes through the Chiba petroleum field, requiring special care in dealing with existing services there. Within the field, there are pipes and power cabling, telephone lines and electrical towers. All the road construction had to be planned to avoid causing any disruption to the Chiba operations.

In addition to that and with temperatures ranging from 50ºC in the day to -1ºC at night, and sand blowing continuously, it was very difficult for both operators and the machines. From FAMCO’s branch in Riyadh, we established a “logistics bridge” to supply Volvo equipment to a remote and isolated area in one of the most barren deserts in the world.

What was FAMCO’s strategy concerning supporting the contractor?

The contractor - Al- Rosan Contracting established a residential area for the laborers, with some 600 workers including machine operators on site. For the construction of the road layers, they set up complete facilities, including a brand-new asphalt batching plant for the project.

FAMCO established a full-service centre on the site because providing after sales support from dealership branches hundreds of kilometers away in Riyadh was out of the question.

What kind of back-ups or redundancies were in place to deal with the unexpected?

FAMCO established mobile workshops at the work site where our technicians were available 24/7. We also ensured that spare parts replenishment are done on a continuous basis and conducted regular site visits to ensure that all Volvo machinery is well maintained and well serviced. These measurements ensured a smooth running of the operations and certainly helped in meeting the entire project’s time plan.

As the project advanced in term of kilometres, how did the support infrastructure keep pace?

The project called for a huge logistical operation to keep the infrastructure support smooth and on pace. In addition to the residential area which was established for the laborers, the contractor set up complete facilities, including a brand-new asphalt batching plant for the project. We set up a logistical bridge from our branch in Riyadh to ensure constant replacements of spare parts,

oils and lubricants as well as rotating shifts of technicians from and to the work site.

What steps were taken to ensure health and safety of the personnel involved in the projects?

The operators were provided contained residential complex designed especially for such challenging work environments. All Volvo operator cabinets were air-conditioned and equipped with special air filets, and the operators would always take a long afternoon break in order not to be affected by the extreme desert heat. In the event of a sand storm, the work will immediately stop at all work sites and operators immediately transported to the nearest camp.

Prior to the commencement of this project, an environmental feasibility study was done to ensure the safest and environment-friendly techniques to be implemented throughout the project.

We keep train and remind our team and the Volvo equipment operators about safety. Health, Safety and Environment are the core values for Volvo and FAMCO. In addition to that, Al Rosan Contracting had on site health and safety manager beside a small clinic at the site.

Now that the project is completed, what will happen to all the equipment?

All of Volvo Construction Equipment which were used on this part of the road are the property of the contractor. They will be certainly mobilised to another contractor’s project as Al-Rosan Contracting has many other projects around the kingdom, and still they are getting more. They are in need for this equipment for the new projects. We are also looking for the second lane of this road; currently, it is only a single twin road.

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FISCAL DEFICIT

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FISCAL DEFICIT

DEJA VU

Is it 2009 all over again?

With the price of oil showing signs of declining further, the IMF foresees the UAE as posting its first fiscal deficit in six years. Considering the havoc the economic woes of 2009 caused, do the HVAC and construction industries have reason to worry? Experts say the outlook is dim but not dark. By Fatima de la Cerna n early June of this year, Reuters released a story echoing what some in the local media – based on speculations from economists and results of bank-financed research – have been reporting as early as last year: the UAE is headed for a fiscal deficit.

According to the International Monetary Fund (IMF), Reuters’ source for its story, the country’s consolidated fiscal balance, which netted a surplus of five per cent of gross domestic product (GDP) in 2014, is expected to suffer a 2.3% shortfall this year due to falling oil prices.

In announcing its forecast, the IMF also pointed out that the deficit will be the UAE’s first since 2009 – a year that financial analysts and business leaders associate with market instability and profit loss.

With grim associations such as those still in people’s minds six years later, should the IMF announcement be a cause for concern for those in the construction and the HVAC sectors?

I

NOT A GLOOMY PICTURE For Asim Hashmi, Sales Director (Applied) at SKM Air Conditioning, the bad news from the IMF should, indeed, be met with concern – but only concern and not alarm. “The situation is not so bright, right now, but it is not so gloomy, either,” he said, adding that he has observed the HVAC market slowing down.

“Beginning last year, there’s been slow movement in the market,” Hashmi said, before further sharing that he expected the situation to continue on until 2016. “Projects will slow down, and government spending will go down.

I mean, there are projects on the table now,

but players will be reluctant. Everybody will be reluctant.” The reluctance, he said, was not only the result of the decline in the price of oil and the anticipated fiscal deficit but also the result of unrest in other Arab nations.

“Because of war, people are holding on to their money,” he said. “Conflict is creating uncertainty about the region.

BUSINESS AS USUAL Samir Thabet, the Sustainability Coordination Manager at Consolidated Contractors Company, agreed with Hashmi’s observation about the impact of war on business, but he clarified that in the case of his company, only offices in the countries affected by the unrest have felt the said impact.

The UAE office, he revealed, has been business as usual, even with the looming fiscal deficit. Thabet said that although projects were not as many as they expected, they were still coming in. He also shared that while oil prices may be slowing down decisions for new projects, he believed that they were in a good position. “This year is turning out better for us than 2014, and we are expecting growth in 2016,” he said. The anticipated deficit, Thabet stressed, has had and will have no considerable impact on the construction industry.

“This year is turning out better for us than 2014, and we are expecting growth in 2016. The anticipated deficit has had and will have no considerable impact on the construction industry” SAMIR THABET, SUSTAINABILITY COORDINATION MANAGER, CONSOLIDATED CONTRACTORS COMPANY

Mohammed Khaja, Product Leader for Unitary Systems at Trane, admitted to holding a similar optimistic view when asked if he foresaw the fiscal shortfall affecting the HVAC industry. “I don’t think there will be any impact,” Khaja said. “So far, activity has been normal, and we’ve been getting the same enquiries. Also, a lot of projects that were put on hold in the past have been activated, and there are a number of new ones coming in, such as the MBR (Mohammed Bin Rashid) City, which is a multi-million-dollar development project.”

For Khaja, the lack of noticeable impact on the industry can be partly attributed to Dubai’s diversified economy and Abu Dhabi’s vast reserves. “The major development projects in the UAE are in Dubai and Abu Dhabi,” he pointed out. “Dubai, with its diversified economy, is not dependent on oil. Abu Dhabi, meanwhile, has a deep well of reserves and is working on a lot of large Estidama projects. I heard that it also has its own multibillion project in the form of premium villas. Around 10,000 villas, if I’m not mistaken.”

Thabet attributed the sanguine state of affairs to the foresight of the government. He gave the credit to the government, saying that as a result of 2009, “many regulations were introduced to better control and stabilise the market, and improve the economy”.

LESSONS LEARNED Maintaining that the 2009 crisis and its illeffects were well behind the country, Eng Anwaar Al Shimmari, Director of Projects Planning Department, at the UAE Ministry of Public Works, expressed confidence that the UAE government is every bit prepared to handle what is coming. Sounding the caveat that she was not speaking on behalf of the government but only stating a personal opinion, Al Shimmari said: “I’m not going to say that another fiscal deficit will not have any impact on project planning, because it would. There will definitely be an impact, but the government will make sure that it will be minor. Even during the 2009 crisis, the support from the government was really strong. And it also worked hard to ensure that the private sector would not be jeopardised. Today, the government is determined that there will be no repeat of 2009.”

To support her statement, she disclosed

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FISCAL DEFICIT

that no projects of the Ministry of Public Works have been or will be shelved as a result of the news from the IMF. “The projects are in the pipeline, and the cash flow is set for the next three years,” she said. Elaborating, she added, “We, together with the Ministry of Finance, have put together some plans, and we have worked this out in the last two years to ensure that the cash flow is properly maintained for the projects.”

While many in the business community would rather scrub their memories of the national and global economic situation of six years ago, Al Shimmari said that 2009 did leave behind one positive impact: it has

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“The projects are in the pipeline, and the cash flow is set for the next three years.

We, together with the Ministry of Finance, have put together some plans, and we have worked this out in the last two years to ensure that the cash flow is properly maintained for the projects” ENG ANWAAR AL SHIMMARI, DIRECTOR OF PROJECTS PLANNING DEPARTMENT, UAE MINISTRY OF PUBLIC WORKS

made the UAE government better equipped to handle similar situations.

“Of course, it’s always better when you are ready, because it allows you to expect things, and you can have contingencies,” she said.

“Negative situations can be turned positive by learning from them. When you end up with lessons learned, you become ready to face any future issues you might encounter.

And – again I’m stating my own opinion here – I think that’s the case with the government. They did a wonderful job of taking us from 2009 to now, and they will do an even better job at taking us past this minor hurdle.”

ENERGY EFFICIENCY

Earth’s resources, the demand of energy saving solutions is increasing worldwide.

Therefore it comes as no surprise that the leading authorities such as AMCA (Air Movement and Control Association) and the Dubai Government introducing their Green Building Regulations have passed through new regulations regarding protecting the entrances to reduce energy losses. The Dubai Green Building Regulations and Specifications (section 501.04 ) stipulates “For all new air conditioned buildings other than villas, all regularly used air conditioned entrance lobbies must be protected by a door design which acts as a barrier to the loss of conditioned air.“

ŝƌ ĐƵƌƚĂŝŶƐ ƚĂŬĞ ƵƉ ůŝƩůĞ ƐƉĂĐĞ ĐŽŵƉĂƌĞĚ ƚŽ Ă ǀĞƐƟďƵůĞ ďƵƚ ŐŝǀĞƐ ďĞƩĞƌ ƉƌŽƚĞĐƟŽŶ Ăƚ ƚŚĞ ĞŶƚƌĂŶĐĞ͘ INDUSTRIAL

Air curtains – a proven choice for energy saving at the building entrance Three times more effective against the infiltration of outside air, and far more energy efficient than vestibules. This was the result when air curtains were tested by AMCA, the world’s leading authority on air movement and system equipment for air. n open door is inviting and easy to pass through, but it also means that expensive air conditioned indoor air is flowing out through the door resulting in a poor working environment and energy losses.

The amount of air that flows out through an open door depends on differences in pressure and temperature between the indoor and outdoor air. This pressure differential is

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dependent on various factors but simply put if the conditions on one side of the door differ in any way from those on the other side there will be a draught from the door opening, resulting in uncomfortable indoor climate and money flowing out the door. In air conditioned premises you lose even more since it is more expensive to cool air than to heat it. The greater the differences in temperature outside and inside, the more infiltration of air you will get.

Along with increased environmental awareness and willingness to conserve the

CORRECTLY DESIGNED AIR CURTAINS IS THE ANSWER The problem with loss of cooled air through the door opening can have many solutions such as revolving doors, sliding doors or vestibules. Studies have shown that air curtains are more effective in saving energy by keeping the air conditioned air inside.

By creating an air barrier when the door opens, the problem with infiltrating air, or the escape of conditioned air is eliminated.

A study undertaken by AMCA in 2014 clearly shows that air curtains can provide up to three times better protection than a vestibule.

The study was based on work with both reallife testing and CFD analyses developed in the 90’s when a building code for America’s colder provinces was established regarding entrances with vestibules. The result led to vestibules becoming the norm in new builds to save energy. These conclusions and methods have since been reused and some 350 different simulations have been carried out to categorically answer the question of how best to protect entrances and buildings.

The simulations took a variety of scenarios, such as climate zones, summer and winter, balanced/unbalanced ventilation, wind stresses and number of people passing through the entrance per hour, into account.

Part of the analysis focuses on examining the amount of infiltration of outside air through the entrance. The analysis clearly showed that an air curtain across the opening provides better protection from infiltrating air than a vestibule. The cases in the study show that the air curtain is not only more efficient than a vestibule but it also has a much lower installation cost and takes significantly less space at the building’s entrance. The study was

ENERGY EFFICIENCY

based on cold air infiltrating a warm building.

But the relationship between cool and warm air is the same regardless if the cold air is on the inside of the building or not. Many studies have also been undertaken on cold rooms, and the results are that a correctly balanced air curtain efficiently keeps the expensive cooled air on the inside.

The result of the study has now led to an addition of the building code IECC’s audit for 2015. The addition intends that there is no need to build a vestibule if the entrances is equipped with an air curtain. The air curtain must be tested and approved in accordance with ANSI/AMCAs requirements and installed in accordance with manufacturer’s instructions. With the new addition in the building code, air curtains will be an even more acceptable alternative in North America and other parts of the world where energy efficiency is high on the agenda.

AIR VOLUME AND SPEED – HOW TO CHOOSE CORRECTLY Many architects, consultants and property developers are used to evaluating air curtains based on air volume, but the air speed is just as important. Tests have shown that it is the relationship between speed and volume that gives the best results regardless if you want to keep warm air out, or conditioned air in.

It is important that the air barrier does not just have the correct air volume, but also reaches the whole way to the floor. The floor is where the greatest load is and where the air conditioned air gets out or where the outside air tries to enter the building. The optimum air barrier in addition to the correct relationship between air flow and air speed also has an outlet that is designed so that air leaves the unit in the correct direction and with minimal turbulence. Knowledge of these factors can create an air curtain that efficiently separates the indoor and outdoor climate and creates the optimum protection. By optimizing the air flow you also ensure that the air curtain uses exactly enough air as is required to create a protective barrier and no more. Smaller air volume means a lower noise level, because it is the amount of air that passes through the unit that creates the noise. The correctly designed and balanced air curtain delivers an optimal air barrier that is both energy efficient and creates good sound comfort.

In summary, an air curtain is a highly effective, energy efficient way to prevent

KƉĞŶŝŶŐ ǁŝƚŚŽƵƚ Ăŝƌ ĐƵƌƚĂŝŶ͘ /Ŷ ĂŶ ƵŶƉƌŽƚĞĐƚĞĚ ŽƉĞŶŝŶŐ ƚŚĞ ĐŽůĚ Ăŝƌ ŇŽǁƐ ŽƵƚ ĂŶĚ ƚŚĞ ĐŽůĚ ƐƚŽƌĂŐĞ ƌŽŽŵ ďĞĐŽŵĞƐ ŵƵĐŚ ƚŽŽ ǁĂƌŵ͘

KƉĞŶŝŶŐ ǁŝƚŚ Ăŝƌ ĐƵƌƚĂŝŶ͕ ǁƌŽŶŐ ĂŶŐůĞ͘ /Ĩ ƚŚĞ ĂŶŐůĞ ŝƐ ƚŽŽ ƐŵĂůů ƚŚĞ ŚŽƚ Ăŝƌ ŝƐ ďůŽǁŶ ŝŶƚŽ ƚŚĞ ĐŽůĚ ƐƚŽƌĂŐĞ ƌŽŽŵ͘

KƉĞŶŝŶŐ ǁŝƚŚ Ăŝƌ ĐƵƌƚĂŝŶ͕ ƚŽŽ ŚŝŐŚ ƐƉĞĞĚ͘ džĐĞƐƐŝǀĞ ƐƉĞĞĚ ĐƌĞĂƚĞƐ ƚƵƌďƵůĞŶĐĞ͕ ǁŚŝĐŚ ĐĂƵƐĞƐ ĞŶĞƌŐLJ ůŽƐƐ ĂŶĚ ŝŶĐƌĞĂƐĞƐ ƚŚĞ ĐŽůĚ ƐƚŽƌĂŐĞ ƚĞŵƉĞƌĂƚƵƌĞ͘

KƉĞŶŝŶŐ ǁŝƚŚ ĐŽƌƌĞĐƚůLJ ĂĚũƵƐƚĞĚ Ăŝƌ ĐƵƌƚĂŝŶ͘ tŝƚŚ Ă ĐŽƌƌĞĐƚůLJ ƐĞƚ Ăŝƌ ĐƵƌƚĂŝŶ ƵŶŝƚ ƚŚĞƌĞ ŝƐ Ă ƐŚĂƌƉ ƐĞƉĂƌĂƟŽŶ ďĞƚǁĞĞŶ ƚŚĞ ĚŝīĞƌĞŶƚ ƚĞŵƉĞƌĂƚƵƌĞ njŽŶĞƐ͘ However, in order to get the best result, the air curtain should be tested in accordance with AMCA and ISO standards (AMCA 220, 210, 300 and ISO 27327). Also choose an air curtain with optimal relationship between air flow and air speed, in that way you get the best air barrier all the way to the floor at the lowest sound level possible.

dŚĞƌĞ ŝƐ ĂŶ /^K ƐƚĂŶĚĂƌĚ ƚŽ ŵĞĂƐƵƌĞ ƚŚĞ Ăŝƌ ďĂƌƌŝĞƌ ǀĞůŽĐŝƚLJ ĂŶĚ ƵŶŝĨŽƌŵŝƚLJ ;/^K ϮϳϯϮϳͲϭ >ĂďŽƌĂƚŽƌLJ ŵĞƚŚŽĚƐ ŽĨ ƚĞƐƟŶŐ ĨŽƌ ĂĞƌŽĚLJŶĂŵŝĐ ƉĞƌĨŽƌŵĂŶĐĞ ƌĂƟŶŐͿ͘ conditioned air escaping from the building at the building entrance.

Energy efficiency for buildings and through their entrance design is absolutely essential, eco-friendly and cost effective throughout the world. This is definitively more important for all air conditioned buildings.

WŽŶƚƵƐ 'ƌŝŵďĞƌŐ͕ /ŶƚĞƌŶĂƟŽŶĂů ^ĂůĞƐ ŝƌĞĐƚŽƌ &ƌŝĐŽ WK Ždž ϯϵϭϵϴϵ͕ ƵďĂŝ ŝŶĨŽΛƐLJƐƚĞŵĂŝƌ͘ĂĞ ǁǁǁ͘ƐLJƐƚĞŵĂŝƌ͘ĂĞ dĞů ͗ н ϵϳϭ ϰ ϯϰϳ ϳϵϬϭ

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SUSTAINABILITY

HIGH IMPACT

Turbulence in the Gulf Corporates and infrastructure issuers in the Gulf Cooperation Council (GCC) will likely feel the weight of lower oil prices, says Standard & Poor (S&P) n an industry report card titled, â&#x20AC;&#x2DC;Some Gulf Corporates Could Feel the Heat on Low Oil Feesâ&#x20AC;&#x2122; Standard & Poorâ&#x20AC;&#x2122;s Ratings Services observed that corporate and infrastructure companies in the GCC face a weaker operating environment at present on the back of lower oil prices. Prices of oil have more than halved since June 2014, thereby slowing government expenditures, on which these companies largely depend.

According to the report, a lower oil price may translate to fewer infrastructure projects.

The drop in oil and gas prices triggered a 58% reduction in corporate and infrastructure bond and Sukuk issuances over the 12 months ended August 31, 2015, compared with the previous 12 months. This declining issuance was partly because of the tightening of

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budgets at key government-related entities (GREs) that carry out important roles in infrastructure projects on behalf of their respective governments. In some cases, limited government budgets prompted the cancellation of infrastructure projects. As for entities exposed to the oil and gas industry, a sharp reduction in capital expenditures is also leading to lower issuance.

Standard & Poorâ&#x20AC;&#x2122;s credit analyst Karim Nassif says: â&#x20AC;&#x153;We observe, however, that GCC governments continue to invest in large public sector infrastructure projects. Still, the longer the oil price remains near current low levels, the higher the likelihood of seeing more infrastructure projects postponed or dropped. We note, in particular, statements from the Saudi minister of ďŹ nance in early September 2015 that the country is looking to cut unnecessary expenditures. The minister indicated that the country would issue more

bonds and could issue Sukuk to ďŹ nance some projects before the end of 2015.â&#x20AC;?

The S&P report noted that with oil prices below the ďŹ scal break evens of most GCC countries (at current spending levels), all GCC countries are expected to report ďŹ scal deďŹ cits in 2015 and to be under some pressure to consolidate their public ďŹ nances. This has resulted in several key developments: Ć&#x20AC;É É -)0 , #!(-É " 0 É !/(É .)É #(.,) / É fuel subsidy reforms. Ć&#x20AC;É É &&É #(É &#+/# #.3É .É É )' -.# É banks because of reduced deposits from government and public sector deposits,

â&#x20AC;&#x2DC;(the) GCC governments continue to invest in large public sector infrastructure projects.

Still, the longer the oil price remains near current low levels, the higher the likelihood of seeing more infrastructure projects postponed or droppedâ&#x20AC;&#x2122;

SUSTAINABILITY

as well as GREs linked to the oil and gas sectors. S&P now expects slightly lower credit, deposit, and economic growth in Ĺ˛Ĺ°ĹąĹľĹťÉ ( É &.")/!"É &#+/# #.3É *)-#.#)(-É , É still healthy, outlook for 2016 is less certain. Ć&#x20AC;É " É )* (#(!É ) É ' ,% .-É .)É ), #!(É investment. GCC sovereigns are attempting to create more attractive conditions for the private sector and international foreign #(0 -.' (.É .)É '), É +/ &&3É #-.,# /. É ." É burden of infrastructure spending and alleviate ďŹ scal constraints on government coffers. The Saudi Tadawul, for example, opened to foreign investment, and the July 2015 nuclear deal between Iran and P5+1 may stimulate markets exposed to Iranian capital. Ć&#x20AC;É ĹŚ( ( #(!É ,#-%ĹşÉ "#& É / #É -/ -- /&&3É rolled over a number of GRE debt ďŹ nancings over the past few years Ć&#x2DC;#( &/ #(!É ')-.É , (.&3É / #É ),& É debt), approximately $14bn of debt is to fall due in 2016. The report expects that these maturities, along with some utility reďŹ nancing across GCC infrastructure entities (such as Saudi Electricity and Abu " #É .#)( &É ( ,!3É )É Ć&#x161; Ć&#x203A;Ć&#x2122;É 1#&&É encourage some capital issuance.

Some of these factors may spur GCC capital market issuance over the next 12 months but these currents will be somewhat offset by pressure on governments to reduce capital expenditures and curb subsidies, which could hamper domestic consumption and prompt headwinds for issuance. Furthermore, the US Federal Reserveâ&#x20AC;&#x2122;s discussions to raise interest rates this year could create more turbulence.

US INTEREST RATE HIKE " É , *),.É ) - ,0 -ĹźÉ Ć&#x2020; -*#. É )/,É 2* . .#)(É of a tougher pricing environment ahead, we believe a potential US Federal Reserveâ&#x20AC;&#x2122;s interest rate hike, even if it were to lead to a 150 bps-200 bps increase for Gulf corporates (based on our stress assumption), would not rock the creditworthiness of the entities we rate in the short term. In our view, the bigger issue would not be the implications of the rate hike on ďŹ nancials, but rather the effect on the economies in which these rated companies operate.â&#x20AC;?

Thus, if a rate hike begins to choke economic growth and cut consumer demand, some of the sectors that are most reliant on É !,)1."É ( É )(-/'*.#)(É ' 3É !#(É

â&#x20AC;&#x2DC;The bigger issue would not be the implications of the (US) rate hike on financials, but rather the effect on the economies in which these rated companies operateâ&#x20AC;&#x2122; to feel pinched in the longer term (such as retail malls, utility providers, and oil and gas companies because of weaker demand).

The report also notes that â&#x20AC;&#x153;the companies in our oil and gas corporate and infrastructure portfolio have sufficient cushion in their ďŹ nancial proďŹ les to absorb this rise in rates.

This reďŹ&#x201A;ects low cost production and modest debt or ďŹ xed interest rates on bonds, at least until reďŹ nancing.â&#x20AC;?

OUTLOOK FOR COMMODITIES The report cautions commodity ďŹ rms to brace for subsidy cuts. Fiscal pressures in the Middle East and North Africa, with emerging deďŹ cits in the GCC region, increase the risk to downstream corporates and will likely result in higher feedstock costs over the coming years for private and government sponsored downstream corporates in the region.

While governments are currently protecting large public sector investment budgets to support economic growth, the longer the oil price remains at current lows, the more likely these could be postponed or cut.

Most recently: Ć&#x20AC;É " É /É " #É !)0 ,(' (.É /.É /.#&#.3É subsidies from the beginning of this year, while on July 21, 2015, the UAE federal government announced a change to the policy of ďŹ xed fuel prices, which will Ť .É /É " #É ( É ." É )." ,É '#, . -ĹşÉ From August 1, 2015, petrol prices are set in accordance with global oil price benchmarks (after adding transportation, operation, and distribution costs). Ć&#x20AC;É In Bahrain, debate among the key stakeholders is increasingly focused on countering the continued ďŹ scal deterioration and mounting debt burden.

Tabled consolidation measures have an -.#' . É 0 &/ É ) É $/-.É )0 ,É ĹłĆžÉ ) É ĹşÉ 3É among these measures are plans to reduce subsidies to expatriates and corporates

over periods of three and four years, respectively, and to reallocate transfers to poorer sections of society. Ć&#x20AC;É In Oman, the minister responsible for ĹŚ( ( # &É Ĺ¤ #,-ĹťÉ ,1#-"É &É &/-"#ĹťÉ reportedly stated that the Omani government is likely to start cutting fuel subsidies this year amid the slump in )#&É *,# -ĹşÉ Ć É 2* .-É ." .É ." É . ,#É government will make similar deliberations about its subsidy bill. Ć&#x20AC;É In Kuwait, some fuel subsidies were removed in early 2015, but other planned cuts were postponed after public criticism of the initial round of price increases.

STABLE OUTLOOK FOR UTILITIES â&#x20AC;&#x153;We think that the current low price of crude oil and natural gas is unlikely to have a 1# -*, É #'* .É )(É ." É , #.É +/ &#.3É ) É )/,É rated global project ďŹ nance debt over the next year to 18 months,â&#x20AC;? says the reports.

The stable outlook for S&P rated utilities -/ "É -É ĹťÉ ' (É )1 ,É ( É . ,É Procurement Co, and Oman Electricity Transmission Co. largely reďŹ&#x201A;ects the stable )/.&))%-É )(É /É " #É ( É )(É ' (ĹşÉ .É ." É same time, the decline in oil prices could lead to an increased focus on renewables across the GCC as a means of securing energy supplies that are less dependent on the cyclicality and volatility of oil prices. / #ĹťÉ ),É 2 '*& ĹťÉ " -É - .É . ,! .-É .)É diversify its fuel mix by 2020 so that renewable energy meets 7% of the emirateâ&#x20AC;&#x2122;s energy needs. (É , "É Ĺ˛Ĺ°ĹąĹľĹťÉ É (()/( É ." É & /( "É ) É " '-É / #ĹťÉ É */ &# Ć?*,#0 . É * ,.( ,-"#*É (PPP) aimed at encouraging and regulating the development of commercial and residential solar power projects.

The report observes that a general trend toward subsidy reform in the GCC has elevated the importance of cost-reďŹ&#x201A;ective tariff arrangements and market-based pricing. â&#x20AC;&#x153;We think this will pave the way for more private-sector participation in the utilities sector, particularly by way of participation through PPPs in competing generation plants,â&#x20AC;? says the report.

On the other hand, the decline in oil prices is also expected to beneďŹ t aviation-related project ďŹ nancing as well as port infrastructure.

Large government-backed airlines, including Emirate Airlines, are entering into a period of expansion and further capital raising amid the cheaper fuel environment.

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How can companies manage the water consumption of their operations?

There are a plethora of things businesses can do to influence change. It can be as simple as engaging with employees to educate them on the importance of conserving water in the workplace or investing in efficient water filtration and purification technologies, which can help optimise consumption and quality.

In terms of technology, businesses can begin implementing Dow Water & Process Solutions innovative technology and solutions into their daily operations. The Park Hyatt in Dubai is a great example of a business working to improve their water efficiency. The hotel uses Dow reverse osmosis and ultrafiltration technologies to filter wastewater, which is then used to operate the resort’s HVAC cooling towers. In one year, the project saved 37m gallons of water, enough to fill 62 Olympicsized swimming pools. By implementing these kinds of innovative technologies, businesses can begin to make a real impact on Zakia Bahjou HIGH VALUE

Water means business Zakia Bahjou, Regional Commercial Manager – Dow Water & Process Solutions, Middle East, Africa & Turkey speaks to Infrastructure Middle East on why businesses in the region should care about water hat are the risks associated with water that businesses in the region should be worried about?

Many countries in the Middle East, including the Kingdom of Saudi Arabia and the United Arab Emirates (UAE) are facing real water challenges. In these arid cities, groundwater and surface water resources are dwindling due to population growth and climate change. Businesses play a direct role in the amount of water consumed in the region and should begin to think about how they can influence sustainable consumption.

Water use affects businesses bottom line, not just when it comes to sustainability, but saving money.

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Could you clarify the linkages between water consumption and cost of operations? How do these linkages impact industrial and business end-users?

The dimensions in valuing water are tied directly to business resilience, continuity, social license to operate and overall contribution to brand value. Efficient water management increases energy and cost savings, but also has a major impact on end users.

Water management is just as crucial for businesses as any other cost saving measure.

If water scarcity remains unaddressed, prices will continue to rise and companies will be forced to factor the added cost into the price of their products. Water has an impact on nearly every industry, and can ultimately affect competitiveness.

What are the products and solutions that Dow Water & Process Solutions has developed to help companies deal with their water footprint?

A great example of how Dow Water and Process Solutions is meeting the challenge of reducing energy consumption in desalination is DOW SEAMAXX, which help reduce the high amount of energy typically needed to create freshwater from saltwater by up to 10%, significantly reducing costs for businesses, municipalities, and consumers.

Some of the most prominent technologies used in the region include reverse osmosis (RO), such as DOW FILMTEC SEAMAXX and DOW FILMTEC ECO, which allow the removal of minerals from brackish water or desalination of seawater, while producing the same amount and quality of freshwater and reducing energy consumption by up to 30%.

Dow Water and Process Solutions is committed to research and development (R&D). In 2009, Dow partnered with the King Abdullah University for Science and Technology (KAUST) to develop a centre for research and development, focusing on advancing water-related technology, as well as developing desert irrigation projects to improve water availability for agriculture in the region. The centre remains committed to developing the latest technology that can make a real impact on water sustainability.

"My grandfather is my hero. He taught me the value of hard work. He started in 1966 with a small street stall, working incredibly hard to give his family the opportunities he never had."

Ahmad, Commercial Officer

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You are the writer of your own story. With hard work, you can start a new chapter anytime you choose.

Our mission at Bayt.com is to empower you to write the story you want, starting with your career. We have the tools to make your story better, and to share it with the right people, in the right places. Together we work.

What’s your story? Start now by building your profile on Bayt.com: Bayt.com/WhatsYourStory #WhatsYourStory

SUSTAINABILITY

HIGH VALUE

Using BIM to shorten construction times Sharing model data with detailer helps deliver steel faster and more efficiently, saving Octapharma $2m

By Katherine Flesh

hen Octapharma determined that centralising its storage and lab processing would save the company $1m per month, accelerating the construction schedule of its new North Carolina facility was paramount. Fitzpatrick Engineering Group was able to compress the construction schedule by eight weeks, by sharing accurate structural model data early and often with the detailer in the design phase. Using Bentley software, Fitzpatrick Engineering implemented a better, more efficient way to deliver structural steel, reduce RFIs and change orders, and help Octapharma save $2m.

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SHORTENING THE SCHEDULE WITHOUT SACRIFICING EFFICIENCY With $1m per month on the line, meeting the tight schedule was crucial on this project.

Technology and BIM have helped facilitate faster projects, but faster doesn’t always mean more efficient. Doug Fitzpatrick, president of Fitzpatrick Engineering Group explains: “Even though we work in BIM now, in 3D, most of our projects require delivery of 2D construction documents. The construction team, and ultimately the fabricator’s detailer, must then recreate its own 3D data from our 2D documents and do so in a fraction of the time that we had to create the 3D models in the first place. It is an outdated linear process still overly reliant on 2D drawings and a costly waste of effort on every project.”

New construction delivery processes (such as design-build, integrated project delivery, and fast tracking) seek to speed the process, but haven’t necessarily addressed the efficiency problem. “The traditional detailing process has simply been pushed earlier into the structural design phase,” explains Fitzpatrick.

“Sometimes there is a one-time electronic hand-off of structural information; a noticeable improvement, however, any information after that has to be recreated manually from 2D drawings.” This meant that the earlier the detailing started the less design information there was to transfer electronically, and the more data the detailer had to recreate by hand.

AECOsim Building Designer creates a complete ĚĞƚĂŝůĞƌ ŵŽĚĞů͕ ƌĞĂĚLJ ĨŽƌ ĚĞůŝǀĞƌLJ ŽĨ ĨĂďƌŝĐĂƟŽŶ data to the steel supplier

CONSTRUCTION

“Working in RAM Structural System and AECOsim Building Designer to share our model data has allowed our small firm to provide a $2m savings for this project by compressing the delivery time of the structural steel package” DOUGLAS G FITZPATRICK, PRESIDENT, FITZPATRICK ENGINEERING GROUP SHARING 3D DATA IS CRUCIAL Fitzpatrick Engineering Group used RAM Structural System for structural analysis and design, AECOsim Building Designer for modeling, and MicroStation PowerDraft for drafting.

Bentley software’s interoperability made it easy for Fitzpatrick Engineering Group to collaborate. For this particular project the architect, mechanical, electrical, and plumbing firms all worked in Revit; the contractor worked in Navisworks; and the freezer specialist worked in AutoCAD. “We shared our AECOsim model as a Revit model for the design and construction teams via the Integrated Structural Modeler (ISM),” explains Fitzpatrick. “The ISM allowed us to easily update models for the team members on a weekly basis yet still leverage all the AECOsim features and functionalities that make our new process more efficient.”

Fitzpatrick Engineering Group realised that keeping the steel detailer’s data in 3D as long as possible was essential. With AECOsim Building Designer’s enhanced CIS/2 export, Fitzpatrick Engineering Group could share accurate model data repeatedly with the detailer during the design phase.

This ensured the detailer had the most accurate and up-to-date information and virtually eliminated the need for the detailer to recreate data from 2D documents.

Fitzpatrick Engineering Group and the detailer also worked to ensure the steel fabricator’s preferences were incorporated into the model.

Organisation: Fitzpatrick Engineering Group Location: North Carolina, United States Project Objective: Optimise the product delivery schedule Implement a faster, more efficient way to deliver structural steel Products used: AECOsim Building Designer, RAM Structural System, MicroStation PowerDraft Fast Facts The tight integration and interoperability among RAM Structural System, AECOsim Building Designer, and third-party software allowed Fitzpatrick Engineering to develop a sustainable process.

Staying in 3D as long as possible and sending incremental updates to the detailer enabled a faster, more efficient process.

ROI Shortened construction schedule by eight weeks Eliminated RFIs and change orders Helped Octapharma save $2m A FASTER, MORE EFFICIENT PROCESS “The ability to share model data multiple times during the design phases of the project was the key component to meeting the demanding schedule,” notes Fitzpatrick. “The process allowed us to reduce the traditional 12- to 14-week delivery time of the fabrication package down to just six weeks. Best of all, this new process enabled by AECOsim is sustainable. It can be applied to all of our projects going forward allowing us to provide real value to our clients.”

With accurate data in an accessible format, the detailer eliminated errors reentering and recreating data. As a result, Fitzpatrick Engineering Group needed about one-third less time to review the fabrication package.

“Because we can now reliably send accurate data, the menial task of checking lengths, section sizes, cambers, steel grades, and so on has virtually been eliminated. We can now focus our attention on the more unique aspects of our design,” explains Fitzpatrick.

With interoperability through ISM, complete ĐŽŶƐƚƌƵĐƟŽŶ ĚƌĂǁŝŶŐƐ ǁĞƌĞ ĐƌĞĂƚĞĚ ƵƐŝŶŐ Z D Structural System and AECOsim Building Designer “The ISM and IFC export have been key enablers in sharing our model data,” he notes.

“They allow us to work in a robust Bentley analysis and design environment yet still provide useful information for other members of the design and construction team.”

The link between RAM Structural System and AECOsim Building Designer also helped shorten the time needed to prepare construction documents.

“With AECOsim we are able to produce accurate drawings quickly at any phase of the project. This speed and accuracy would not have been possible without AECOsim,” says Fitzpatrick.

Katherine Flesh leads the marketing strategy and positioning for Bentley’s structural analysis, design and documentation software products. She has more than 20 years of experience in channel sales, marketing and technical writing for high-tech solutions in the enterprise, mid-size and consumer markets.

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UTILITIES

energy will be higher than today’s combined electricity demand of China, India and Brazil.

The report says the geography of deployment will increasingly shift to emerging economies and developing countries, which will make up two-thirds of the renewable electricity expansion to 2020. China alone will account for nearly 40% of total renewable power capacity growth and requires almost one-third of new investment to 2020.

Renewables are key to the pledges ahead of COP 21 2020 FORECAST

Renewables to lead global power market As costs fall and emerging economies drive growth, IEA report sees major opportunities but policy uncertainties remain enewable energy will represent the largest single source of electricity growth over the next five years, driven by falling costs and aggressive expansion in emerging economies, the International Energy Agency (IEA) said in an annual market report.

Pointing to the great promise renewables hold for affordably mitigating climate change and enhancing energy security, the report warns governments to reduce policy uncertainties that are acting as brakes on greater deployment.

“Renewables are poised to seize the crucial top spot in global power supply growth, but this is hardly time for complacency,” said IEA Executive Director Fatih Birol as he released the IEA’s Medium-Term Renewable Energy Market Report 2015 (MTRMR) at the G20

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Energy Ministers Meeting. “Governments must remove the question marks over renewables if these technologies are to achieve their full potential, and put our energy system on a more secure, sustainable path.”

Renewable electricity additions over the next five years will top 700 GW – more than twice Japan’s current installed power capacity. They will account for almost two-thirds of net additions to global power capacity – that is, the amount of new capacity that is added, minus scheduled retirements of existing power plants. Non-hydro sources such as wind and solar photovoltaic panels (solar PV) will represent nearly half of the total global power capacity increase.

The report sees the share of renewable energy in global power generation rising to over 26% by 2020 from 22% in 2013 – a remarkable shift in a very limited period of time. By 2020, the amount of global electricity generation coming from renewable

DECLINING COSTS DRIVE GROWTH Renewable generation costs have declined in many parts of the world due to sustained technology progress, improved financing conditions and expansion of deployment to newer markets with better resources.

Announced prices for long-term generation contracts at reduced levels are emerging in areas as diverse as Brazil, India, the Middle East, South Africa and the United States. As such, some countries and regions now have the potential to leapfrog to a development paradigm mainly based on increasingly affordable renewable power. This is especially true in Sub-Saharan Africa.

“Affordable renewables are set to dominate the emerging power systems of the world,” said Birol. “With excellent hydro, solar and wind resources, improving cost-effectiveness and policy momentum, renewables can play a critical role in supporting economic growth and energy access in Sub-Saharan Africa, meeting almost two-thirds of the region’s new demand needs over the next five years.”

Financing remains key to achieving sustained investment. Regulatory barriers, grid constraints, and macroeconomic conditions pose challenges in many emerging economies. In industrialised countries, the rapid deployment of renewables requires scaling down fossil-fired power plants, putting incumbent utilities under pressure.

Wavering policy commitments to decarbonisation and diversification in response to such effects can undermine investor confidence and retroactive changes can destroy it. Consequently, global growth in the report’s main case forecast is not as fast as it could be – and annual installations level off, falling short of what’s needed to put renewables on track to meet longer-term climate change objectives. “While variability of renewables is a challenge that energy systems can learn to adapt to, variability of policies poses a far greater risk,” said Birol.

SOLUTIONS HUB

LIFTING EQUIPMENT

Konecranes’ new heavy-duty overhead crane UNITON is suitable for process duty applications in a variety of industries, such as steel, mining, automotive, or in shipyards onecranes new builtup trolley crane was developed in close cooperation between customers and Konecranes industry experts and engineers. Available in a wide range of load options, hoisting speeds, lifting heights, trolley gauges, frame sizes, and capacities from 6.3 to 160 tonnes with a single trolley and up to 320 tonnes with two trolleys, Konecranes’ UNITON can be built to meet project-specific requirements. Factors like temperature, humidity, and corrosive elements are all taken into consideration during manufacturing, which helps extend the lifetime of the crane.

UNITON is easy to use for crane operators, due to the availability of variable frequency drives on all motions (bridge, trolley, and hoist). This provides a smoother lifting experience and helps the operator to keep

K

the lifted load steady while a reduction in wear on mechanical components can be seen compared to contractor-controlled cranes.

Ease-of-use is further supported by a large variety of pendants and radio control devices as well as with a new patented hook safety latch, which holds the latch open to avoid pinching of fingers.

With load control features, like Extended Speed Range (ESR), which comes as standard and ESR+ (available for selected motors), energy costs can be reduced, while the productivity can be increased. The stepless inverter hoisting technology enables loads with less than 20% of the rated capacity to be operated at twice the nominal speed. With ESR+, loads carrying less than 10% of the rated capacity can even travel up to 300% of the nominal speed. Crane operators are able to use the right speed at the right time and therefore not only work more efficiently but can also save on costs. The savings are achieved by drawing only the power necessary to perform each lift, which reduces the monthly operating costs significantly.

In addition, optional load control features, like sway control, inching and microspeed, further help to improve speed, accuracy, and safety.

UNITON’s design and construction make maintenance and part replacement easy. An example of this is the box-end trucks with a 90-degree MCB-type bearing housing.

This eliminates the need for heavy jacks or other special tools and makes the removal of trolley and bridge wheels an easy and safe operation.

The robust design also benefits from a two-point drum suspension, which inhibits deflections of the rope drum from causing misalignment in the connection between the drum and gearbox.

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SOLUTIONS HUB

monitoring, controlling and metering) with or without detection scenarios (PIR sensor).

LIGHT RING Apart from creating ambience, it can be used as a tool to manage living spaces. For example, in flashing mode, it can guide people in the right direction in an emergency situation. It could also indicate if the EV charger is being used.

WLAN Two wireless internet versions are available - campus scale (for shopping centres or business complexes) as an extension of an existing network or urban scale (for city applications) so multiple users can connect at the same time. The bandwidth can be divided to assign a part to city operators with the remaining WiFi offered to the public so people can stay connected.

CONNECTED CONCEPT

Schréder launches Shuffle A single column integrates multiple infrastructure services for cities and communities to save space and lower carbon footprint ne of the core objectives of Dubai’s Smart City Initiative is to achieve social happiness through round-theclock integrated and connected services that meet daily living requirements. Shuffle, a new integrated concept from lighting leader Schréder, aims to transform public and private spaces into more sustainable, safer and convivial environments.

By providing multiple services in a single lighting column, Shuffle helps managers of public and privately-managed spaces to engage people with their environments, creating social cohesion, boosting local trade and fostering civic pride.

Much more than a lighting column, the Shuffle integrates control systems, loudspeakers, surveillance cameras, hotspots, electrical vehicle chargers and signage among several things to make people feel at home.

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Managers of cities and privately-managed sites can integrate up to five modules in each column to suit the specific needs of their environment, securing better services and infrastructure for themselves and their citizens.

LIGHT State-of-the art LED technology and a wide range of photometries adapted to various applications such as roads, streets, squares, pedestrian crossings, footpaths and architectural illumination ensure all lighting requirements are met in one column.

CONTROL SYSTEMS One controller can command all the lighting modules of a Shuffle and propose different scenarios per module. Schréder claims that its lighting and control systems can achieve energy savings of up to 85%. The company offers controls for autonomous or interoperable networks (managing,

CCTV CAMERAS A compact CCTV camera with night vision efficiency, high brightness compensation and advanced event detection helps reduce crime and increase public safety.

LOUDSPEAKERS An integrated sound system can be used for advertisements, public service announcements or to broadcast music or a local radio for specific events or simply for convivial open spaces.

EV CHARGER As an advanced AC charging station, it offers an integrated solution for E-Mobility.

Applications recommended for Shuffle include squares and pedestrian areas; urban roads and streets; residential streets; monuments and façades; railway stations and metros; roundabouts; bridges; parks; bike paths; car parks and eco-systems.

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EXECUTIVE INSIGHT

HE Salem Ali Al Zaabi “The coming years will be important and decisive for the successful implementation of the railway transport system in the UAE and the Gulf”

A historic year HE Salem Ali Al Zaabi, Director General, National Transport Authority (NTA) on the milestones crossed by the UAE’s emerging railway sector ailroads play a major role, either as a sustainable enabler for countries’ economies or as a strategic connection between parts within those countries, and between them and their neighboring countries.

It is no wonder that we see statistics of transport amounting to 2.8tn passengers per km and 9.8tn tonnes per km in 2013 (Source: UIC), being transported all over the world on railroads exceeding a million km in length.

Rail was also used in transporting 18% of the total tonnes/km of goods transported by land or via internal water passages in the EU countries in 2013 (Source: Eurostat), and at slightly higher or lower rates in other countries, based on the availability and competitiveness of alternative means of transportation in those countries.

Thanks to Allah, and to the directions and kind patronage of our wise leadership, the UAE – within a short time - gained a leading position in the rail sector on both the regional and international levels.

The UAE is an important link for global international transport lines within the GCC Region. It is the transit point between

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Oman and Saudi Arabia, while the UAE’s seaports, especially those of Jebel Ali, Khalifa and Khorfakan, are considered among the world’s biggest seaports in terms of the volume of goods handled and distributed, and in terms of infrastructure.

The UAE’s railway network – as part of the GCC railway network – will play a vital role in serving the key ports in the GCC region, which will in turn enhance its competitiveness and its ability to secure and facilitate the circulation of goods through the world’s main maritime and land passages.

The coming years will be important and decisive for the successful implementation of the railway transport system in the UAE and the Gulf. The Federal Transport Authority (FTA) and the other concerned authorities play a vital role on three axes: First: Finalising the development of the organisational and control structures necessary for executing and operating the federal railway network.

Second: Control and continuous follow up of the safety levels in the country’s railway system.

Third: Achieving integration between the UAE’s federal rail network and that of the GCC. This year has been a historic year for rail

transport in the UAE, as the first federal control license was issued to enable Etihad Rail to make experimental operating tests for the first phase of its network, which is 264 km long, in preparation for its imminent commercial operation.

The first part –148 km – will be used in transporting Sulphur granules from Gasco’s natural gas field in Habshan to Ruwais port.

The second part of the first phase, which is approximately 116 km, will facilitate transporting Sulphur granules produced

by Al-Hosn field from Shah to Ruwais.

This will be followed by completing two more development phases by the end of 2018, when the federal railway system will be completed at a cost exceeding $20bn and a length of more than 1,200 km of two-way railroads, of which 685km will be part of the GCC rail network.

The federal railway network has been constructed using state of the art solutions and international techniques, enabling the operation of cargo trains at a maximum speed of 120 km/hr and passenger trains at a maximum speed of 200 km/hr.

(Excerpted from the opening speech at 11th Annual MENA Rail & Metro Summit)

INFRA PEOPLE

Milaha’s new president and CEO Milaha has appointed Abdulrahman Essa Al-Mannai as President & Chief Executive Officer. He succeeds Khalifa Ali Al-Hetmi, who had previously announced his plan to retire.

Al-Mannai previously led the commercial planning and allocation functions at Qatargas, where he has overseen many areas, including

Point of View

the commercial function of UK’s South Hook LNG Terminal, which is Europe’s largest LNG regasification terminal.

Mannai brings to the table considerable experience in LNG, gasto-liquids, condensates, shipping and commercial marketing.

dmg events appoints new VP for Energy Division dmg events, an international exhibition company, has appointed Paul Wilson as the new Vice President of the company’s Energy Division for the Middle East. Paul will oversee the current portfolio based in the Middle East, which includes the region’s leading oil & gas event ADIPEC, Pipeline magazine, as well as number of specialist energy-related events including The Oil Barons Charity Ball. Paul will lead the current team based in Abu Dhabi and Dubai as well as being responsible for the expansion across the Middle East.

Tony Tyler, Director General & CEO, International Air Transport Association (IATA)

Former AECOM executive joins ARCADIS as regional director of programme management Design and consultancy firm Arcadis has appointed Ian Williamson as regional director of programme management and buildings global business leader for the Middle East.

In his new role, Williamson will work closely with the leadership team to strengthen its regional programme management positioning and help service clients in utilising the firms newly integrated capabilities to solve their business challenges in the UAE, Qatar and Saudi Arabia.

Williamson brings over 30 years of experience across many sectors including commercial, retail, health, aviation and infrastructure in both local and international markets.

Before joining Arcadis, he developed AECOM’s programme and project management capability in Europe and moved to the Middle East in 2009 to lead

several major projects and build the regional programme management capability. He also led a major programme of investment covering new facilities and remodeling of a portfolio of 1,400 hyper markets, supermarkets and stores across the UK and USA.

In just one century, the connectivity that only commercial aviation can deliver has changed our world for the better. And we are determined to grow in that vital role while reducing our environmental impact.

I would take that one step further to say that aviation’s growth is essential to a more sustainable future for our planet— economically and environmentally.

Let me put it another way: aviation creates the connectivity that helps make our world a more prosperous place: a source of 58m jobs and $2.4tn in economic activity. That prosperity drives the innovation that is needed for societies to move forward sustainably.

Wherever you look, you see examples of how wealthier societies are able to prioritise the environment. Rising living standards lead to greater technological advances, far more efficient use of resources, and political pressure for environmental safeguards.

So ultimately, in addition to its own efficiency efforts, aviation’s greatest environmental service is to do what it keeps on doing – driving social and economic growth in every corner of our planet. To be a facilitator of trade and the exchange of knowledge. To be a force for good, spreading peace and prosperity around the globe.

In short: to save the earth, take to the air.

(Excerpted from remarks made at at the ATAG Global Sustainable Aviation Summit in Geneva last month)

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INFRA PEOPLE

New MD of DC Pro Engineering

New President of the International Desalination Association Emilio Gabbrielli has been elected President of the International Desalination Association (IDA) for the 2015-2017 term.

Gabbrielli is Director, Overseas Business Development – Global Sales of Water Treatment for Toray.

Involved in the water treatment industry for more than 40 years, Gabbrielli has worked with Italconsult/Weir , Italimpianti, Permutit Australia and Thames Water. In 2003, after four years as Managing Director of Thames Water in Brazil, Gabbrielli was

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appointed Executive Secretary of the Global Water Partnership (GWP), an international network of institutions committed to the sustainable development and management of water resources founded by UNDP, the World Bank and the Government of Sweden. He joined Toray in 2009 and is based in Brazil.

Gabbrielli said: “My vision is a better world through water security. Desalination and water reuse have an important role to play in this. I am committed to supporting those mechanisms of IDA that encourage the sharing of experiences and ideas, and promoting a broader appreciation of water resources issues within the desalination community with the goal of facilitating the effective application, whenever appropriate, of more advanced, reliable, efficient and effective desalination, reuse and filtration technologies.”

Born in Florence, Gabbrielli holds a degree in Chemical Engineering from the Bologna University, where he also obtained a post-graduate specialisation certificate in Computer Modelling as part of a research programme developed on the bases of his degree dissertation.

He has authored and co-authored over 20 technical publications. Active in IDA since the Association’s founding, he also holds the honorary position of Global Ambassador of the Australian Water Association.

As part of DC Pro Engineering’s five-year growth strategy to leverage mega regional construction projects including Expo 2020 Dubai and the 2022 FIFA World Cup in Qatar, Fouad Younan - an experienced senior executive in the District Cooling & HVAC industry - has been appointed as the company’s new Managing Director with immediate effect.

Younan has served as the CEO of Qatar Cool and General Manager of EMICOOL. The Lebanese national also helped establish and develop City Cool with the Al Rajhi Group for the UAE, Saudi and Bahraini markets.

“With an impeccable delivery and innovation record, DC Pro Engineering is rightfully considered one of the region’s leading electromechanical consultants,” said Younan. “With the GCC hosting mega events such as Dubai’s World Expo in 2020 and Qatar’s FIFA World Cup in 2022, the company has great potential for continuous growth and employs a diverse cross-section of talent committed to providing high quality standards of service.”

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EVENTS

THE BIG 5

Building skyward We explore what is in store for visitors to The Big 5 and how the region’s biggest construction event is shaping up n an increasingly connected and fast-paced world, infrastructure development has helped transform economies and provide enormous opportunities for economic growth. Nowhere is this more apparent than in the Gulf Cooperation Council (GCC) region where sea and road transportation links have helped uplift the regional economies. In fact, the GCC is home to the world’s biggest port in the Middle East and Africa – the Jebel Ali Port - and is consistently ranked in the top 10 globally.

Billions of dollars are also being ploughed into the region’s port infrastructure as the growth in shipping ports in the GCC region continues at an unprecedented level. Current estimates put the investment in port facilities at $35bn.

Saudi Arabia, for example, has a fiveyear plan to expand its ports capacity with an estimated $30bn. At the same time, the region has embarked on its biggest and most ambitious intra-regional rail network – the eagerly anticipated GCC Railway, often

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described as a game-changer for the logistics industry.

In terms of domestic investment in the sector, Saudi Arabia remains the largest market in terms of project awards followed closely by Qatar, Kuwait, United Arab Emirates, Oman and Bahrain.

Saudi Arabia’s strong growth can be attributed to the government’s help in investing in major infrastructure projects, including the upgrade of Kingdom’s railway network. Together with UAE and Qatar, Saudi Arabia is also among the biggest spenders and market leaders in the GCC, with total planned investment of $106bn for various rail projects alone within their countries.

CPD-CERTIFIED WORKSHOPS In this context, The Big 5 this year, which will be held from 23rd to 26th November at Dubai World Trade Centre, is shaping up to be one of the most exciting and engaging opportunities for businesses in the infrastructure sector to connect in new and exciting ways. As in previous years, visitors to the show will have guaranteed access to no less than 64 free CPD workshops and

seminars led by some of the top minds in sustainable construction.

Each workshop will be delivered by an industry specialist, who will share cutting-edge insights into an ever-evolving business landscape by drawing on real-world experience. Importantly, the opportunities to connect with GCC construction professionals, improve industry credentials and work towards career goals have been designed with the visitor in mind, and will focus on five topics: sustainability, business and market intelligence, design and architecture, affordable housing and sustainable communities, and technology in construction.

Among the highlights will be an update on Dubai Municipality Green Building Regulations, which will include an overview of progress made to date and the challenges that the industry will face in the coming years. The United Arab Emirates has also asserted itself among the top countries for LEED certification (or Leadership in Energy and Environmental Design) outside the US. With the total registered and certified leasable LEED space in the country quickly reaching 47m gross sqm, a session on updated energy modelling strategies for LEED v4 is expected to provide key insights and draw a crowd on the opening day of the 4-day event.

DOING BUSINESS IN THE UAE There will also be a seminar on How to Trade in the UAE for exhibitors looking to increase their presence or set up operations in the country. The seminar will offer information on navigating the complex regulatory framework to set up a business and win work in the region’s booming construction markets, as well as providing information on laws and effective business practices within the UAE. Since free zones have been pivotal to the growth of the non-oil economy in the UAE, the ‘How to’ seminar will also include a session on how free zones can help foreign companies gain unrestricted access to free zone trade that increased by 7% year-on-year in the first half of 2014 to $73bn. Imports through free zones expanded by 10% to $41bn, while direct exports and re-exports from free zones increased 5%, to $3bn and $28.8bn respectively, according to data published by the Federal Customs Authority.

In an effort to better align local, regional, and global suppliers with the specific needs of local markets, The Big 5 will also feature a plethora

EVENTS

of live product demonstrations of technologies and innovations shaping the industry.

Participating exhibitors will bring experts to showcase products in action, giving all visitors the opportunity to assess the suitability of a product for their projects in real-time.

A key highlight of The Big 5 is the Gaia Awards, launched in 2008 to honour industry players whose products and services have demonstrated a reduction in impact on the environment. The nominations are open to exhibitors and non-exhibitors whose products are distributed within the MENA region. The winners are eligible to receive $50,000 in marketing support to showcase the winning product to market.

Another popular feature at The Big 5 is the Design Summit, which will be held on the second day of the show. The summit brings together leading architects, consultants, urban planners, engineers and contractors and is the only conference in the region to offer comprehensive insights into the latest design trends, technologies and techniques whilst also providing an unparalleled analysis of local and regional GCC markets.

SETTING NEW RECORDS With 3,000 exhibitors and 85,000 visitors expected to descend on Dubai World Trade Centre when The Big 5 opens its doors, the event is bracing for another recordbreaking year. Last year’s edition broke all attendance records in the show’s 35-year history. Available floor space is also set for an 8% increase from 52,265sqm in 2014 to 56,400sqm in 2015, following the expansion of Dubai World Trade Centre and strong demand from exhibitors.

Together with strong demand, extra floor space will also be used to accommodate a new hall called The Big 5 Focus, which

will be making its debut at the 2015 event.

As the latest addition, The Big 5 Focus has been created to serve the increasing number of visitors seeking information on the challenges and opportunities for technology in construction and project management. dmg event director Ashley Roberts said: “The 2014 edition of The Big 5 was a recordbreaking year, which was attended by 80,178 participants. To continue with the expansion and development of the event, The Big 5 Focus is a hall dedicated to a range of features that have been introduced specifically to meet the needs of our visitors providing additional value.”

SNAPSHOT OF THE BIG 5 CPD WORKSHOPS AND SEMINARS 1. Updates to Dubai Municipality’s green building regulations 2. GCC construction sector update: Market potential and business development opportunities 3. Introduction to smart cities and the Internet of Things 4. Updated energy modelling strategies for LEED v4 5. How to trade in the UAE 6. Can sustainable and affordable housing become a reality in the Middle East?

7. A cost-benefit analysis of energy efficient technologies 8. Improving supply chain competitiveness 9. Fire safety in facades 10. Managing a culturally diverse team to optimise organisational performance 11. Construction contract management and ethical issues 12. Navigating the complexities of designing healthcare facilities 13. Life cycle cost assessment (LCA) of green buildings 14. Life cycle costing: Theory vs practice in the GCC region 15. Introduction to the UN Global Compact Principles: Sustainability and ethicality in real estate and construction For the full agenda and complete information about the free workshops and industry speakers taking part at The Big 5, please visit https://www.thebig5.ae/freeeducation/certified-workshops/agenda/

SKILLS SHORTAGES A MAJOR CHALLENGE FOR REGIONAL CONSTRUCTION INDUSTRIES A report commissioned by the organisers of The Big 5 has revealed that a shortage in labour is currently one of the biggest challenges facing the Middle East construction industry.

In addition to technical skills, soft skills are said to be in increasing demand across the region, and in some cases, are seen as being as important among increasingly selective employers.

“The implications of skills shortages in the GCC are such that project delays and costs are becoming a real possibility,” said Andy White, vice president of dmg events, Middle East and Africa.

“However, when you consider that some skills shortages are emerging due to renewed confidence in construction, economic growth, rising populations, and a revival of projects put on hold during the global economic recession, the report is very positive”.

“It is also something we fully expected based on industry trends and feedback received from The Big 5 over the last few years.”

However, while engineers rank highly among the top jobs held by expats, shortages are not present across the board.

In fact, junior and senior level skills are said to be readily available.

The fact that strong growth in construction is driving diversification from oil means mid-level skills-gap will need to be filled in countries like Saudi Arabia.

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CONSULTANTS & ARCHITECTS CUP 2015 Not only is the Golf Day a great day out, it also represents an ideal opportunity to network with potential clients and entertain existing ones, while giving you a chance to get to know the people who make up the consultant and architect industry. Whether youâ&#x20AC;&#x2122;re part of the industry or if you provide services to it, itâ&#x20AC;&#x2122;s an opportunity not to be missed!

The 2015 Consultants & Architects Cup is an invite-only, free-to-attend event for consultants and architects. We offer various sponsorship opportunities for those companies that provide services to the construction industry. All sponsorship opportunities include a free day on the golf course - you might even call it working!

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INFRASTRUCTURE MILESTONES

#019 Living in printed buildings In June, Dubai announced plans to develop the world’s first fully functional 3D printed building as part of the ‘Museum of the Future’ initiative n June 30, 2015, HE Mohamed Al Gergawi, the Chairman of UAE National Innovation Committee revealed plans for the world’s first fully functional 3D printed building in Dubai.

Speaking on the occasion, he said the UAE aims to deploy the latest technologies to improve people’s lives and to develop its economy in line with the country’s National Innovation Strategy and the vision of HH Sheikh Mohammed bin Rashid Al Maktoum,Vice President and Prime Minister of the UAE and Ruler of Dubai.

The ‘Office’ will be approximately 2,000 sq ft in size and will be printed layer-by-layer using a 20-foot tall 3D printer, and then assembled on site in Dubai in just a few weeks. All interior furniture, detailing, and structural

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components will also be built using 3D printing technology, combining a mixture of Special Reinforced Concrete (SRC), Glass Fibre Reinforced Gypsum (GRG) and Fibre Reinforced Plastic (FRP). This combination will make it the most advanced 3D printed structure ever built at this scale and the first to be put into actual use.

In addition to prototyping new technology, the ‘Office’ reflects the latest input from experts and researchers in workplace design and the future of work. Located at a busy intersection in the heart of Dubai, the ‘Office’ is designed to bring together different professionals, community members, and experts through a mix of public events.

The space is open and flexible, allowing for a range of uses and team sizes. It will also feature a small digital fabrication facility and a 3D printing exhibition space.

October 2015

Fast facts Launched by: Govt. of Dubai Size: approx: 2,000 sq.ft In partnership with: WinSun Global, Gensler, Thornton Thomasetti, Syska Hennessy Umbrella project: Museum of the Future

Experts estimate that 3D printing technology can reduce the production time of buildings by 50 -70%, reduce labour costs by 50-80%, and can save between 30-60%of construction waste. These savings translate to enhanced productivity and increased sustainability.

The project is the first major initiative of the ‘Museum of the Future’, launched earlier this year by HH Sheikh Mohammed. It highlights the Museum’s model of industry – government – designer collaboration, which is intended to develop and deploy cutting edge prototypes across the city of Dubai. It will act as the temporary headquarters for the staff of the ‘Museum of the Future’ while the permanent Museum is being built.

This project is part of UAE’s innovation strategy to create new designs and new solutions in education, healthcare and cities.

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Back on track Tehran’s metro ambitions revealed

ANALYSIS

Gulf turbulence Low oil prices to impact projects

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RAIL LEADERSHIP

Alstom Transport’s Henri Poupart-Lafarge bets on integrated railway systems to solve urban mobility challenges

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