Infrastructure ME March 2014 by Infrastructure ME

MIDDLE EAST

ISSUE 002 | MARCH 2014

transport

utilities

On track? UAE, KSA, Oman and Kuwait on meeting their 2018 GCC Rail deadline

Desalination’s direction Why the Middle East industry shouldn’t ignore sustainability

p28

p40

Airports — special REPORT

crowded skies Countries must co-operate or face air chaos

PUBLICATION LICENSED BY IMPZ

PLUS our top 10 gcc airport expansion projects

CONTENTS

002 March 2014 20

REGULARS

04 Regional update COVER STORY

Crowded skies Experts warn the GCC faces air chaos if countries fail to cooperate over their airport expansion programmes. With future prosperity for the region closely linked with air travel, a solution is vital. Report by Gary Wright

News summary by country, including Arabtec’s new infrastructure division, Oman’s $1bn coastal road tender and the end of Saudi’s three-storey building restrictions.

09 Infrastructure tenders

Top tenders from across the region including contract awards and latest floated tenders.

12 Analysis

Saudi Arabia showed a disappointing level of big contract awards last year, but it was not due to lack of ambition.

Top 10 FEATURE

GCC Airport Projects

54 Events

Airport expansion projects underway in the GCC have no parallels anywhere in the world. Infrastructure ME picks the 10 most interesting projects in the region. By Gary Wright

Diary dates for key exhibitions, conferences and seminars. Where they are and what they are about.

56 Infrastructure milestone

IME revisits key projects that made a difference. This month: The Palm Jumeirah Monorail.

INdustry sectors transport

TECHNOLOGY

Middle East Rail in Dubai last month, brought together leading figures from across the GCC to reveal whether the region is still on track for a 2018 linked network. Report by Gary Wright

Dassault Systèmes’ goal is to transform the way plants and equipment are designed, installed, supported and retired using 3D technology.

46 The 3D experience

28 Rail chiefs reveal 2018 vision

32 Dubai Metro expansion

utilities

renewable energy

By 2020, the total length of Dubai’s rail network, led by the Metro, is expected to touch 110km with 70 stations.

Dr Abdullah Al-Alshaikh, President of the International Desalination Association (IDA) on the industry’s direction markers.

Absence of a cohesive approach threatens to slow the development of a vibrant solar industry in the Middle East.

Report by Anoop K Menon

40 Desalination’s direction

48 Long road to solar

Report by Anoop K Menon construction

34 Engineering a prosperous future The GCC construction market presents unique challenges for engineers. Report by Gavin Davids

36/INFOGRAPHIC: The 10 most common construction site injuries.

42 Water for future power The World Bank’s new Thirsty Energy initiative highlights the vital link between water and energy generation – without one, you cannot have the other. Report by Gary Wright

March 2014

events

50 The sparkling gateway

The 39th edition of Middle East Electricity (MEE) puts the spotlight on Dubai as the passage to lucrative energy markets in the Middle East, Africa and Asia. 38/EXTRA: WETEX 2014

INFRASTRUCTURE MIDDLE EAST

INTRODUCTION

GCC on the move e are one issue old, and the feedback has been fantastic. Our objective was to reach out to stakeholders building the region’s infrastructure, and gauging from the response, I believe we are on the right track. But GCC Rail is not on track fully. The vision is intact but outside of the UAE and Saudi Arabia, business cases remain a work in progress. Revenue is fundamental to justifying return on investment, and only the UAE and Saudi Arabia seem to have got their freight equations right. Globally, freight subsidises passenger traffic, and the rule applies here as well. Having struck out on its own with the Metro, Dubai is turning into a laboratory of sorts for public transport in the Gulf region. Immediate plans include expansion of the existing metro network and a new tram system. Expect new initiatives in the bus and marine transport areas as well as the emirate targets 30% share for public transport in the mobility of people by 2030. I believe that an integrated multimodal transit system could be the competitive differentiator that Dubai needs to seal its place as the business hub of choice for the Middle East, Africa and Asia. As GCC states leverage their geography and money to create aviation hubs to capitalise on Asia’s economic ascendance, their airspaces are beginning to get choked. Our cover story examines this issue in detail. We also have an update on the airport projects underway in the Gulf. Desalination is crucial to the region’s water security; but its impact on the environment needs to be addressed as well. The newly elected President of International Desalination Association (IDA) has declared sustainable desalination as his priority for the next two years. He shares his perspective on page 40.

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PUBLISHING DIRECTOR RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 EDITORIAL DIRECTOR VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5713 EDITORIAL SENIOR EDITOR GARY WRIGHT gary.wright@cpimediagroup.com +971 4 375 5473 EDITOR ANOOP K MENON anoop.menon@cpimediagroup.com +971 4 375 5473 ADVERTISING COMMERCIAL DIRECTOR JUDE SLANN jude.slann@cpimediagroup.com +971 4 433 2857 Senior Sales Manager Junaid Rafique junaid.rafique@cpimediagroup.com +971 4 375 5716 MARKETING MARKETING MANAGER LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498 MARKETING ASSISTANT BARBARA PANKASZ barbara.pankasz@cpimediagroup.com +971 4 375 5499 DESIGN ART DIRECTOR SIMON COBON SENIOR DESIGNER MARLOU DELABEN CIRCULATION AND PRODUCTION CIRCULATION AND DISTRIBUTION MANAGER ROCHELLE ALMEIDA rochelle.almeida@cpimediagroup.com +971 4 368 1670 DATABASE AND CIRCULATION MANAGER RAJEESH M rajeesh.nair@cpimediagroup.com +971 4 440 9147 PRODUCTION MANAGER JAMES P THARIAN james.tharian@cpimediagroup.com +971 4 440 9146 DIGITAL DIGITAL SERVICE MANAGER TRISTAN TROY MAAGMA WEB DEVELOPERS JOEL AZCUNA JANICE FULGENCIO Published by

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INFRASTRUCTURE MIDDLE EAST

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REGIONAL UPDATE

131km metro while $10.8bn will be invested in the Etihad Rail scheme linking the emirates.

UAE Dubai’s Road and Transport Authority (RTA) has announced that a new 12-lane bridge will replace the city’s floating bridge. The Al Ittihad Bridge contract will be awarded by the end of the year and will be completed in 2017 at a cost of $300m. The 24,000 vehicles an hour bridge, linking Deira and Bur Dubai, will be 15-metres above the Creek allowing marine traffic to pass unhindered. The details were announced as the RTA confirmed a $1.91bn budget for 2014 with $1.05bn allocated for road projects and $859.2m for operations. The RTA has also approved a contract for the Muhaisna 2 Internal Roads Construction Project. The $28.3m project is a part of the Five Year Plan (2012-2016), which includes the pavement of internal roads in Dubai’s residential communities at the cost of $272m. “Undertaking Muhaisna 2 Internal Roads Construction Project stems from RTA’s commitment to improve roads network to address the requirements of demographic and urban expansion in the emirate in keeping with our vision of providing safe and smooth transport for all,” said Mattar Al Tayer, chairman of the Board and executive director of the RTA. Arabtec has put infrastructure projects at the centre of its future business expansion as it announced five new subsidiaries. According to international news agency Reuters, the Dubaibased construction giant is setting up two new divisions to focus on infrastructure projects, one specifically for the UAE.

INFRASTRUCTURE MIDDLE EAST

Floating Bridge The contract for the new bridge will be awarded in 2017

In its bourse statement, Arabtec said other subsidiaries will focus on water and energy projects and the Egyptian market; the fifth will serve as an investment arm. Earlier this year, Arabtec announced that it would look to create thousands of jobs for youth in the GCC and MENA regions, with the launch of a large-scale campaign targeting job creation. Abu Dhabi’s new housing, schools, transport and other construction projects worth $100bn are set to “transform” its infrastructure, according to a new report. Fahad Al Raqbani, director general of Abu Dhabi Council for Economic Development, said: “All these mega projects will contribute in making a quantum leap in the infrastructure of Abu Dhabi.” He went on to say the projects will “sustain the local economy’s growth in a manner that will lead to accomplishing the objectives of the economic vision 2030”. At the start of last year, Abu Dhabi Executive Council announced it would inject $89.8bn into the economy over the next five years, including spending on new March 2014

homes, schools, roads and other infrastructure. Work was already underway on several other big infrastructure initiatives. The Jones Lang LaSalle report notes that an investment of two billion dollars has been earmarked for the Sheikh Zayed project, a state-of-the-art housing development between Khalifa City A, Khalifa City B and Mohammed Bin Zayed City. In the transport sector, $2.9bn will be invested in developing a

Sharpoorji Pallonji Middle East has been confirmed as the main contractor for a new medical centre in Dubai Healthcare City. The 200-bed facility is being built for the Dr Sulaiman Al Habib Group and includes an integrated centre for cardiac surgery, diagnostic clinics and a cardiac catherisation unit. In a statement on the Dr Sulaiman Al Habib Group website, the care centre was described as signalling “a massive shift in the UAE integrated health care industry”. The consultant appointed is Arif and Bintoak Architects and Engineers, whose previous projects include the Mohammed Bin Rashid Academic Medical Centre. Shapoorji Pallonji managing director and chief executive officer, MD Saini, said: “Having built our first hospital in the UAE in 1980 in Abu Dhabi, we’re proud that over 30 years later we continue to support healthcare in the market with the same diligence.”

Abu Dhabi Infrastructure projects worth $100bn will ‘transform’ the Emirate

REGIONAL UPDATE

Engineering, Parsons, Hill International, Parsons Brinckerhoff and Tecnicas Reunidas.

Oman The tender for a 65km coastal road in Oman is expected to awarded soon. The Diba-Lima-Khasab road, a project worth one billion dollars, will be constructed via a private finance contract on a 20-year design, build and maintain concession. The road runs through the sultanate’s Musandam governate and includes seven tunnels and 18 new bridges. Bidding opened last August when more than 30 companies sought to pre-qualify for the work.

PDO WELDERS Oil giant will train 445 Omanis in a new skill and offer jobs

port of Sohar, a project worth around $2.6bn. The Oman News Agency said that only companies who make this pre-qualification list will be considered for future stages of the project linking via Muscat to Duq’m and Salalah ports. The pre-

The Oman Railways Company (ORC) has issued a tender for firms to pre-qualify for infrastructure and IT systems for the first part of the line between Al Buraimi to the

qualification list is expected to be announced by August this year. The pre-qualified contractors will remain listed for four years. Last month, ORC revealed that five firms were shortlisted to provide project management services for the network: Dowha

Qualified welders are the target for a new training scheme launched by Petroleum Development Oman (PDO) and the Ministry of Manpower for young Omani jobseekers. The first 245 trainees will learn welding with successful candidates getting jobs on three PDO oil and gas projects. Another 200 places will be offered in 2015 with jobs on three PDO projects: Rabab-Harweel integrated project (RHIP), Yibal Khuff and Budour, in 2020. The two-year Welder Training Programme includes the establishment of common standards and an enhanced financial and retention package and helps boost the Omanisation programme for the country.

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REGIONAL UPDATE

Saudi Arabia With the ban on buildings over three-storeys now abolished, construction of new buildings in Saudi’s traditional neighbourhoods is forecast to increase by 30%. Investors are expected to demolish old buildings and replace them with housing units that can now reach six-storeys. The report by Arab News said demolition was happening in traditional areas of the country amid fears that roads and services serving the areas may not cope with the influx of people into the bigger buildings.

Labour crunch A government clampdown on illegal workers means worker shortage

The construction sector has seen massive spending, leading to the total value of awarded contracts at an all-time high of

The state crackdown on illegal workers has slowed projects worth millions of dollars across the country and now contractors

almost $78.2bn, according to a new report. ‘Construction Contracts Index Fourth Quarter 2013’, which includes agriculture and manufacturing, by the National Commercial Bank said the Saudi construction sector has seen a spike in awarded contracts. The annual budget released by the country’s Ministry of Finance, capital spending

between $13.3bn and $55.9bn is expected to be made across the education & manpower, health & social affairs, municipalities, transportation & infrastructure and water, agriculture & manufacturing sectors.

Qatar overseeing projects worth around $27.5bn until 2022. Causeway’s Cost and Programme Management software (CATO) will enable Ashghal’s internal consultants to monitor and track an internal rates database, based on information supplied by consultants and contractors for work issued by the authority.

Qatar New measures aimed at protecting immigrant construction workers have been released by the Qatar 2022 Supreme Committee, which is responsible for the FIFA World Cup. The Qatari authorities have come under fire across the world following reports of expat deaths on its construction sites. In statement, the Supreme Committee said: “The committee reserves the right to penalise contractors who are noncompliant, or in extreme cases, terminate its contract with a company that is continually in breach of them.” It also said that the labour ministry has increased the number of trained labour inspectors by 30% over the

INFRASTRUCTURE MIDDLE EAST

are calling for more recruitment firms to bridge the demandsupply gap. Saudi newspaper Arab News said industry reports suggest 36% of construction projects in the country have been delayed by the labour crisis. Recruitment companies are hiring out shortterm workers on a yearly basis to construction companies. “We are waiting for labour recruitment firms to play a major role in importing expat construction workers to complete our projects that have been badly affected after the exit of thousands of our employees,” Abdul Aziz Masnour, a Saudi contractor, was reported as saying. Thousands of workers left the Kingdom after the government set out to get rid of working illegal immigrants in a bid to increase opportunities for native Saudis in the job market.

Contractor penalties New measures aim to protect immigrant worker safety

past six months to monitor contractors’ compliance. An estimated 1.8m foreign workers are involved in projects related to delivering World Cup 2022 in Qatar. Ashghal, the Public Works Authority of Qatar, has awarded a contract to Causeway to supply March 2014

cost planning and automated measurement software for CAD drawings and Building Information Modeling (BIM). Ashghal, established in 2004, is responsible for the planning, design, procurement, construction, delivery, and asset management of all infrastructure projects and public buildings in

Qatar’s project market accelerated in 2013, overtaking the UAE in terms of contract awards midway through the year, with $12.2bn in new awards, said Edmund O’ Sullivan, chairman of MEED Events, the organisers of Qatar Projects 2014. The Qatari infrastructure plan, which includes roads, ports, rail, construction and social sectors, is reportedly worth over $62.2bn. With upstream oil schemes worth almost $16.5bn in various preexecution phases.

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MIDDLE EAST INFRASTRUCTURE TENDERS

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

Shaybah Arabian Light Crude Increment Project Budget: $410,000,000

Waad Al Shamal Transformer Station Project Budget: $25,000,000

EGYPTIAN GULF of Jebal El Zayt WindFarm Project Budget: $70,000,000

Burjeel Medical City Project, tower and villa project Budget: $327,000,000

Region: Saudi Arabia Client: Saudi Arabian Oil Company (Saudi Aramco) Description: Engineering, procurement and construction (EPC) contract for a light crude increment project Period: 2016 Status: Current project

Region: Saudi Arabia Client: Saudi Electricity Company, Central Region (Saudi Arabia) Description: Construction of a 132/13.8 kV transformer station at Waad Al Shamal Period: 2016 Status: Current project

Region: Egypt Client: Egyptian Electricity Transmission Company (EETC) Description: Engineering and construction of a 1,000MW wind farm at Jebal El Zayt area on the west bank of the Gulf of Suez, 400km south of Cairo. Status: New tender

Region: Abu Dhabi, UAE Client: 1LLH Group (Abu Dhabi) Description: Construction of a Medical City comprising six towers dedicated to specific medical conditions, including 31 villas for long-term patients Period: 2016 Status: New tender

March 2014

INFRASTRUCTURE MIDDLE EAST

MIDDLE EAST INFRASTRUCTURE TENDERS

Top Tenders UAE

Saudi Arabia

Email: info@raid.com.sa Website: www.raid.com.sa Description: Construction of three towers, a convention centre and related service buildings Status: New Tender Categories: Prestige buildings, construction & contracting Tender Products: Commercial buildings, high-rise towers

Qassim Domestic Airport Expansion Project Polymer Plant Project - KIZAD Project Number: WPR092-U Territory: Abu Dhabi Client: Polysys Additive Technologies Middle East (Abu Dhabi) City: Abu Dhabi Description: Construction of a new Polymer plant with initial production capacity of 7,000 tonnes Status: Current Project Main Architect: WH International (Abu Dhabi) Main Contractor: System Construct (Abu Dhabi) Tender Categories: Industrial & Special Projects Tender Products: Chemical Plants

Towers, Convention Centre & Service Buildings Project Project Number: MPP2855-SA Territory: Saudi Arabia Client Name: Rayadah Investment Company (Saudi Arabia) City: Riyadh Phone: (+966-1) 205 9911 Fax: (+966-1) 205 9922

Project Number: MPP2878-SA Territory: Saudi Arabia Client: General Authority of Civil Aviation - GACA (Saudi Arabia) Address: Bin Malek Street, Old Airport Area City: Jeddah Country: Saudi Arabia Phone: (+966-2) 640 5000 Ext: 2337 / 3368 Fax: (+966-2) 640 1477 / 3876 Email: gaca-info@gaca.gov.sa Website: www.gaca.gov.sa Description: Carrying out expansion of an existing airport involving construction of a new terminal building along with other airport infrastructure such as a control tower, car parks and a mosque Closing Date: March 27, 2014 Status: New Tender Tender Categories: Airport, construction & contracting Tender Products: Airports development & management

Mecca Bus Rapid Transport System Project Project Number: MPP1907-SA Territory: Saudi Arabia

INFRASTRUCTURE MIDDLE EAST

March 2014

Client: Makkah Municipality (Saudi Arabia) City: Makkah Country: Saudi Arabia Phone: (+966-2) 573 9555 / 5228 Fax: (+966-2) 574 8633 Email: info@holymakkah.gov.sa Website: www.holymakkah.gov.sa Description: Development of Mecca Bus Rapid Transport (BRT) System covering a total length of 123km and 147 stations, including major highways and smaller local roads Status: New Tender Project Manager: Parsons Brinckerhoff International (Saudi Arabia) Tender Categories: Public Transportation Projects Tender Products: Roads Construction, Roadways

Iraq

Desalination Plant Project - Basra City Project Number: MPR1449-IQ Territory: Iraq Client: Ministry of Municipalities & Public Works (Iraq) Address: Opposite King Faisal Square, Karkh City: Baghdad Country: Iraq Email: info@mmpw.gov.iq Website: www.mmpw.gov.iq Description: Construction of a desalination plant with capacity of 200,000m3 a day Budget: $115m

MIDDLE EAST INFRASTRUCTURE TENDERS

Period: 2016 Status: Current Project Main Contractor: Veolia Water (France) Main Contractor (2): Hitachi Corporation (Japan) Main Contractor (3): Arabco for Construction (Egypt) Tender Categories: Water Works Tender Products: Water Desalination Plants

Flare Gas Capture Rehabilitation Project Project Number: MPP2877-IQ Territory: Iraq Client: Basrah Gas Company (Dubai) Address: C/O Shell Upstream International Ltd., 11th-12th Floor, Dubai Convention Tower, Zaabeel City: Dubai Country: United Arab Emirates Phone: (+971-4) 405 4400 Fax: (+971-4) 329 3311 Email: info@basrahgas.com Website: w ww.basrahgas.com Description: Carrying out rehabilitation of a major flared-gas capture project Status: New Tender Project Manager: WorleyParsons (Australia) Tender Categories: Gas Processing & Distribution

Qatar Al Rayyan Road Upgrade Project , West of New Al Rayyan Roundabout to East of Bani Hajer Roundabout Budget: $275m Region: Qatar Client: Public Works Authority ASHGHAL (Qatar) Description: Construction of a new road spanning 2.9 km, consisting of four lanes in each direction, separated by a central median, in addition to two kilometres of side roads and associated service roads (approximately 5.8 km) Period: 2016 Status: Current project

Jordan Aqaba Liquefied Natural Gas Terminal Construction Project Project Number: MPP2715-J Territory: Jordan Client: Aqaba Development Corporation (Jordan) Address: 3rd Floor, Chamber of Commerce Bldg. City: Aqaba 77110 Country: Jordan Phone: (+962-3) 201 9933 Fax: (+962-3) 201 7735 Email: info@adc.jo Website: http://www.adc.jo Description: Construction of a Liquefied Natural Gas (LNG) terminal in Aqaba Economic Zone Budget: $100m Period: 2015 Status: Current Project Specialist Consultant: Trowers &

March 2014

Hamlins (Dubai) Specialist Consultant-2: Tractebel Engineering (Belgium) Main Contractor: Bam International (Netherlands) Main Contractor(2): MAG Contracting & Engineering (Jordan) Main Contractor(3): Target Engineering Construction Company L.L.C (Abu Dhabi) Tender Categories: Gas Processing & Distribution, Marine Engg. Works Tender Products: Gas Export/Import Terminal, Marine Civil Works

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Tender Products: Gas exploration & production, gas processing & separation

INFRASTRUCTURE MIDDLE EAST

analysis

ksa PROJECTS

Why Saudi contract awards in 2013 fell short of forecasts Labour issues and a shortage of cement are partly to blame for the lower-than-forecast levels of contract awards in Saudi Arabia last year, according to a new report

INFRASTRUCTURE MIDDLE EAST

March 2014

analysis

EED Projects had expected contract awards to top $75bn in 2013 in its forecast at the start of the year. But data compiled by the company indicates the final figure to be just $60bn, far below the initial estimate, $3bn down on 2012 figure and far short of 2011’s $72bn of awards. The MEED report examined contract awards across the chemical, construction, gas, industrial, oil, power, transport and water sectors. A summary appears on the Big Project Saudi website in the run up to the show in Jeddah in April, analysing the contract awarded during the final quarter of 2013. A consistent trend for the quarter has been a marked rise in the number of the new projects announced, with the focus clearly on the construction sector. The report said: “Among the sub-sectors within construction, education projects represent the biggest number. A view of the overall geographical distribution of projects in the construction sector across all provinces for 2013 to mid-December shows a strongly pronounced disparity. An overwhelming majority of the schemes (57 in total) have been awarded in Riyadh and Mecca provinces, accounting for 80% of the total value of awards. Riyadh leads with a 43% share, amounting to almost $5bn of contracts for 16 projects while Al Jouf is at the bottom with a single project at $30m.” Transport contracts accounted for $28.9bn, construction stood at $15bn, followed by $7bn in the power sector, $2.6bn in chemicals, $1.5bn in oil, $1.3bn in water, $800m in the industrial sector and $800m in the gas sector. MEED also listed the top 10 project owners over the year, which was topped by Arriyadh Development Authority with awarded contracts exceeding $23.2bn. The Ministry of

Contract sector breakdown KSA 2013 $28.9bn Transport $15bn Construction $7bn power $2.6 chemical $1.5BN oil $1.3 water $800m industrial $800m gas

Interior was placed second while the National Water Company (NWC) occupied Rank 10. The list of top 10 main contractors ranked by value of contracts awarded in 2013 was topped by the country’s oldest contractor, the Saudi Binladin Group, which landed contracts in excess of $4.6bn. Almabani, Bechtel and CCC are jointly ranked fifth. January 2014 saw 51 scheduled awards carrying a total estimated budget of $20.5bn, which included three power projects worth $7.5bn and four oil projects at $3.3bn currently under main contract bid. The top projects for the month were: Saudi Aramco’s Jizan Refinery IGCC Power Plant: Combined Cycle Power Plant ($3bn) Saudi Aramco’s Jizan Refinery IGCC Power Plant; Gasification ($3.5bn) Maaden/Mosaic/Sabic consortium’s Waad Al Shamal Phosphate City; SAP/Power Plant/ Power Dist ($1.5bn) Ministry of Interior’s Security Compound; KAP 2: Package B ($720m) The report concluded: As 2013 comes to a close, the reasons for the slowdown can be assessed in the context of the current market situation in Saudi Arabia. The labour-supply issues are well documented and the country will have consumed all the cement that it produced according to industry sources.

“An overwhelming majority of the schemes awarded in 2013 were in Riyadh and Mecca provinces, 80% of the total value of awards” March 2014

INFRASTRUCTURE MIDDLE EAST

analysis

2013 contract awards $1.5bn oil, $1.3bn water, $800m in the industrial sector and $800m in gas sector

For 2014, therefore, contractors may have to rework their project costings while emerging supply chain factors will continue to put a lot of pressure on projects already under bidding. Saudi Arabia’s performance in November saw 10 contract awards worth $1.4bn. Out of these, the construction sector had four projects at $260m, while the chemical sector saw one award at $600m for Package 2 of the Waad Al Shamal Mining City project. At the end of the month, most of the 42 expected awards had been deferred and 13 projects at an advanced bidding stage still remain unawarded. The line-up for December indicates 21 scheduled awards out of which three construction projects at $753m have been awarded; 14 projects with a total estimated budget of more than $2bn are under main contract bidding stage. The country has to award almost all of these to be able to reach

the $60bn mark for the year, for projects worth over $30m. There were nine new projects announced in December 2013– four each in construction and transport and one in power transmission, with total estimated budget of almost $1.7bn. Two important education projects completed in the month were: 1) Technical & Vocational Training - Qurayat Higher Technical Institute for Women. 2) MOHE-Jizan University: College of Engineering & Computer Science This report does not include the four packages of the Security Compound project amounting to $3.5bn as these will be strategically located across the country. However, even for this project, Riyadh is expected to receive the greater proportion of the 304 sites, compared to the rest of the country. The overall awards status for 2013 remains similar to that in November due to

AT THE TOP At $28.9bn, the Transport sector had the highest value of awarded contracts WITH $4.6bn in Total awards, the Saudi BinLadin Group emerged as the numero uno $23.2bn was the Total value of contracts issued by the Arriyadh Development Authority

low numbers. Saudi Arabia has awarded 196 projects in 2013 to mid-December, with total contract value reaching slightly over $58bn.

“the reasons for the slowdown can be assessed in the context of the current market situation in Saudi arabia” 14

INFRASTRUCTURE MIDDLE EAST

March 2014

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Al Hamriya, Sitra Kingdom of Bahrain Email: Rosy.dsouza@ybakanoo.net Phone: +973 177 38202

Ten AIRPORT EXPANSION PROJECTS

airport expansion projects The enormous airport expansion projects underway in the GCC have no parallels anywhere in the world. Infrastructure ME picks the 10 most interesting airport projects

INFRASTRUCTURE MIDDLE EAST

March 2014

Kuwait International Airport Expansion

Country: Kuwait Budget: $6bn plus Progress: Phased opening Located in Farwaniya, 16km south of Kuwait City, the airport investment plan unveiled in May 2012 includes the construction of a $3bn, 130,000 sq m terminal. Another $3bn will be spent on runway expansion, enhanced control tower operations and the construction of a new cargo facility. In September 2013, the government said it would re-tender the terminal construction project, after previous efforts stalled in February. The airportâ&#x20AC;&#x2122;s western runway is to be extended to 4,775m, which will make it the seventh longest runway in the world and capable of handling the A380 aircraft. The other runway is planned to be 4,000m long. A new third runway is also planned in the western side.

Ten AIRPORT EXPANSION PROJECTS

Hamad International Airport

King Abdulaziz International Airport

Muscat International Airport

Country: Qatar Budget: $15bn Progress: 2014

Country: Saudi Arabia Budget: Est. $1.5bn Progress: End of 2014

Country: Oman Budget: $1.8 billion Progress: Late 2014

The project, formerly known as the New Doha International Airport, has been plagued by delays; its opening in April last year was cancelled. Now the government says it will be ready for “phased opening” from mid-2014. It is a key project for Qatar’s national development, covering 28 sq km with a 600,000 sq m terminal building. Capacity is 24m passengers a year, rising to 50m once fully operational. HIA has 80 gates, 25,000 sq m for retail and parking. The first phase of the airport construction and design was awarded to Bechtel in 2004. Takenaka will build the Emiri VIP terminal. ARINC and Thales were awarded a contract for the IT, telecommunications and security systems.

The new King Abdulaziz International Airport will be the main airport hub for the west of the Kingdom, near Jeddah. The three-stage development started in 2006. The project is designed to increase the airport’s capacity to 30m passengers, mostly Muslim pilgrims bound for the Holy Cities. Phase 1 covers construction of a 400,000 sq m terminal complex; a new control tower, access roads and utilities infrastructure. Phases 2 and 3, take the airport through to 2035 and cater for 85m passengers. It has been built using a “just in time” approach, to ensure the correct balance of capacity, quality of service and cost, providing, in effect, a new airport created within the existing boundary.

Last month, the Times of Oman reported that the new airport is “72% complete.” Test flights took place last month on the two new runways, both of which are capable of handling the Airbus A380, the world’s largest aircraft. Oman’s Minister of Transport and Communications Dr Ahmed Mohammed Al Futaisi said work on the air traffic management centre was also progressing well, but he admitted there was a delay on the passenger building due to a ship that sank while carrying steel frames for the project. The airport project is a joint venture between Bechtel, ENKA and Bahwan Engineering Company. The total covered building area is 647,000 sq m. March 2014

INFRASTRUCTURE MIDDLE EAST

Ten AIRPORT EXPANSION PROJECTS

Abu Dhabi Airport Terminal Building

Al Maktoum International Airport

Ajman International Airport

Country: UAE Budget: $6.8bn Progress: Opening 2015

Country: UAE Budget: $8bn Progress: Ongoing

Country: UAE Budget: $1.3bn Progress: To be confirmed

The Midfield Terminal Building project at Abu Dhabi International Airport remains on schedule. “A good illustration is that in the last three to four weeks the first arch has gone up. By February 24, the second will be up. So we’re on a very disciplined plan now of seeing the skyline of this part of Abu Dhabi changing forever,” Tony Douglas of Abu Dhabi Airports Company (ADAC) told Gulf News last month. In 2014, development of the roof, the four piers, the external façade and glazing will be complete. The terminal will take Abu Dhabi International’s current capacity from 17.5m passengers a year to around 50m. Existing terminals are being modified to accomodate more passengers. Work began in 2005.

Phase 1 of the Dubai World Central Al Maktoum International Airport is fully operational. Passenger services began late last year alongside the 600,000 tonnes/year freight operation. The international airport at the southern end of Dubai is 40km from Dubai International and operates 24 x7 with an A380-compatible, 4.5km runway. It currently has 64 aircraft stands, a state-of-the-art Air Traffic Control tower and a 66,000 sq m, singlelevel passenger terminal. The future vision is 12m tonnes of annual cargo capacity and 160m passengers, making it the world’s biggest passenger and cargo hub. Phase 2 of the airport, which includes the construction of an additional three cargo terminals ( two automated and one nonautomated) is currently under way.

It is frequently making news but the airport appears unlikely to be built. Project construction was originally planned to have started in the second half of 2008 in the Al Manama area of Ajman. Originally set up as an international airport, with the UK’s Wiggins Group having undertaken the build-operatetransfer contract to construct the terminal and allied infrastructure. In February 2013, Emirates 24/7 reported that the blueprint has been finalised. It said the airport would be built by a consortium of Spanish companies at a cost of $350m. The biggest challenge is coordination of air traffic across the UAE. Each emirate has the right to build its own airport, but the huge expansions in Dubai and Abu Dhabi mean UAE airspace is tight.

INFRASTRUCTURE MIDDLE EAST

March 2014

Ten AIRPORT EXPANSION PROJECTS

Prince Mohammed Bin Abdulaziz Airport

Salalah airport

Sohar Airport

Country: Saudi Arabia Budget: $1.2 - $1.5bn Progress: 2015

Country: Oman Budget: $450m (est) Progress: Late 2014

Country: Oman Budget: $400m Progress: Late 2014

This is a milestone project as the construction agreement is on a 25-year build-to-operate concession, a first for the kingdom. The airport serves Madina and will have a capacity of 5m passengers a year, mainly pilgrims to the second holiest city. The airport is the country’s fourth largest and its expansion is a key part of the air infrastructure development for the kingdom. The winning consortium comprised TAV Airports of Turkey and two Saudi contractors Saudi Oger and Al Rajhi Holding Group. A $1.2bn financing package has been put together with Saudi Arabian banks. What makes this project significant is that it is the first PPP (Public Private Partnership) project in the country. Work is forecast to be complete in the last quarter of 2015.

Last month, the Oman government said Salalah’s new airport was 85% finished. It has been developed in tandem with the new Muscat airport with an initial capacity of 1m passengers a year. Designed to allow for subsequent phased expansion in line with demand, the capacity could be scaled to 6m passengers. Salalah, almost 1,000km south of Muscat, is seen by the country’s leaders as a key tourist destination thanks to its cool climate during the summer months. In the final stages, the airport is being finished alongside Muscat through six development contracts including master systems integration, standard boarding bridges, operational readiness, baggage handling, and air traffic and navigational systems.

Sohar Airport, two hours by road from Muscat, will become the gateway to northern Oman when it opens late this year. It will cater to passenger, cargo and courier traffic and will act as a domestic and emergency alternative to Muscat International Airport. Contracts for the initial site preparation were floated in 2009 for Phase 1. Strabag Oman bagged the deal, going on to secure Phase 2 work as well for construction of a new 4km long runway and installation of aircraft landing instruments. Phase 3 involves the construction of a new passenger terminal building. The airport is also designed to accomodate the Airbus A380. March 2014

INFRASTRUCTURE MIDDLE EAST

COVER STORY GCC airport expansion risks

Our crowded skies

Experts warn that the GCC region faces air chaos if countries fail to co-operate over their airport expansion programmes. With future prosperity for the region closely linked with air travel, a solution is vital

INFRASTRUCTURE MIDDLE EAST

March 2014

COVER STORY GCC airport expansion risks

viation experts have warned there will be severe disruption to flights if the Gulf Co-operation Council (GCC) countries fail to work together as the region undergoes an unprecedented boom in airport expansion. Across the Middle East, carriers are set to spend a $450bn on 2,520 aircraft by 2030, taking the number of passenger aircraft from 1,060 to 2,710, an increase of 160%. By 2020, there are expected to be 450m passengers transported by air across the Gulf. Emirates Airlines alone is aiming for 70m passengers in 2020 and three out of four visitors to Expo 2020 in Dubai is forecast to come from outside the region.

According to the International Civil Aviation Organisation (ICAO), investment in developing new facilities and expanding existing airports to meet the demands of the region’s fast-growing airlines has resulted in airspace capacity becoming an ‘emerging’ issue as current constraints limit capacity and force ‘inefficient’ routings, adding to an increase in flight times. ICAO says that as airspace becomes more of a scarce and sought after resource, states need to take a ‘balanced’ approach to airspace management, and the need to accelerate implementation of flexible use of airspace is becoming a necessity. The airspace to the northern part of Bahrain Flight Information Region (FIR) continued to be the busiest and most complex airspace in the Middle East, while

March 2014

INFRASTRUCTURE MIDDLE EAST

COVER STORY GCC airport expansion risks

In figures

1.62m

Aircraft in and out of UAE airports by 2030

2.3m

Middle East aircraft movements by 2025

5.2%

Annual growth in regional air traffic

Air traffic controllers in the UAE already oversee one of the busiest skies in the world

Daniyal Qureshi, Director, Airport Show

Ibrahim Ahli, Director, Dubai Air Navigation Services (DANS)

the northern and eastern part of the Muscat FIR is also complex along with the airspace in the HIL in Jeddah/Riyadh FIR. There are also delays and bottlenecks in UAE’s Flight Information Region (FIR) due to heavy air traffic. Ibrahim Ahli, Director of Dubai Air Navigation Services (DANS), says: “The importance of managing the UAE airspace efficiently is obvious, but the importance of harmonisation with adjacent [and beyond] states is imperative. Without co-operation from these states, our growth will be

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March 2014

hampered, and severe arrival and departure delays are inevitable.” The UAE airspace system currently handles around 600,000 movements a year. By 2025, that will double to 1.2m movements, similar to London or New York. In line with recommendations of the Airbus Prosky study commissioned by the General Civil Aviation Authority (GCAA) of the UAE, two working groups have been formed to enhance the airspace capacity, of which one is led by DANS. Ahli says Expo 2020 will “certainly

put more pressure” on the development of the airspace and that new technologies will support a more modern airspace development and management. “We are well equipped with the expertise and knowledge, but in this rapidly growing environment, we certainly require support from leading organisations in the industry.,” he says. “We have over many years built up relationships with prominent, well reputed companies, leading the development of Sesar and NextGen [in the EU and US respectively].”

COVER STORY GCC airport expansion risks

A wide portfolio of the latest and most innovative Air Traffic Control (ATC) technology and solutions designed to make skies safer for air travel will be showcased to regional airport stakeholders at the 2014 edition of Airport Show at the Dubai International Convention and Exhibition Centre (DICEC) from May 11 to 13. Saif Mohammed Al Suwaidi, Director General of UAE’s General Civil Aviation Authority (GCAA), said: “Airspace is part of the Air Traffic Management (ATM) system; we cannot take it in isolation from the rest of the system components. To improve the system many other areas have to be collaboratively improved such as the airport design and operations. We are working to improve ATM efficiency in the region through an airspace enhancement and restructuring programme.” Civil aviation authorities in the region, which boasts of 16 globally-competitive international airports, have been good at

finding ways and means for their airports expansion drive. However, they are facing near-acute constraints in finding new solutions for more effective ATM to decongest the airspace as the region becomes the new air travel crossroads for the world. One factor that will be contributing to the mounting problem is accelerating growth in aircraft movements in the Middle East, which according to ICAO, International Air Transport Association (IATA) and Airports Council International (ACI), is witnessing a rapid aviation growth, far above the global average rate. UAE airports are projected to have 1.62m aircraft movements by 2030, while the overall Middle East region is expected to have 2.3m aircraft movements in 2025. The ICAO predicts a 5.2% annual growth in regional air traffic until 2030. If the congestion challenge is left unaddressed, the region’s aviation sector may be headed for certain turbulence.

“Airspace to the northern part of Bahrain Flight Information Region (FIR) continued to be the busiest and most complex airspace in the Middle East.” International civil aviation authority

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March 2014

Airport Show promises technology solutions to manage the boom A wide portfolio of the latest Air Traffic Control (ATC) technology and solutions designed to make skies safer for air travel will be showcased to regional airport stakeholders at the 2014 edition of the Airport Show at the Dubai International Convention and Exhibition Centre (DICEC). Show director Daniyal Qureshi said: “There is no doubt that the biggest challenge affecting the aviation industry in the Middle East is congestion. Airspace is an asset and just like any other asset, it can be managed and maximised. This is where technology is coming into the big picture. At the Airport Show 2014, we will have a significant presence of companies that specialise in ATC technology and solutions.” Amongst the global ATC players at the event this year will be ADB Airfield Solutions (Belgium), Cooper Crouse Hinds (US), Erni AGL and Europoles Suisse (both from Switzerland), Jotron AS (Norway) along with Bayanat Airport Engineering & Supplies, Ales FZCO, ARINC and Honeywell from the UAE. The 14th edition of the Airport Show will be held in Dubai from May 11 to 13, 2014 with the support of DCAA, Dubai Airports and Dubai Aviation Engineering Projects (DAEP) among others. The Airport Show is in its 14th successful year covering the Middle East, North Africa and Indian subcontinent. The event is co-located with the Global Airport Leaders’ Forum (GALF), an industry meeting to generate solutions for airport leaders from around the world to overcome their common challenges and Travel Catering Expo. It is the largest gathering of airport decision makers, experts and suppliers in the region and features specialised seminars and a pre-scheduled meetings programme. More details at www.theairportshow.com

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ADVERTORIAL

AWARDS

Knauf organises first of its kind customer awards night in Dubai nauf Middle East hosted its first-ever annual customer awards at a gala dinner event, held at the Armani Hotel on February 7, 2014. Senior executives from Knauf’s key customers, distributors and partners across the Middle East and the Indian Subcontinent came together to celebrate the winners. Amer bin Ahmed, Managing Director, Knauf Middle East & India pointed out that the customer event is a very important milestone in Knauf’s leadership in the drywall market, acknowledging the critical importance of the company’s customers to its ongoing success. He said: “Working closely with our suppliers, we have made significant progress in key programs such as supplier performance management, risk management, supplier quality and sustainability over the past year. I would like to take this opportunity to thank them sincerely for their efforts.” As part of its efforts to recognise and celebrate superior performance, Knauf presented awards across different categories recognising various stakeholders such as dealers, contractors and partners. The awards also acknowledged key employees of Knauf Middle East with ‘special awards’ in recognition of their dedication and commitment to drive collaboration between Knauf and its customers.

Emerging Dealer of the Year ȖȖ Al-Yusuf Building Materials, Bahrain ȖȖ Sadeer Trading & Contracting, Kuwait ȖȖ Global Gypsum Industries, Bangalore, India

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March 2014

Ȗ Ȗ Drywall Qatar, Qatar Ȗ Ȗ Modec Building Materials Trading, UAE Ȗ Ȗ Mount Décor, Oman Best System Seller Ȗ Ȗ Promer Qatar Contracting Company, Qatar Ȗ Ȗ Mainline Building Materials, UAE Sub-contractor - Heradesign 2013 Ȗ Ȗ R R India Plasters, Bangalore, India Ȗ Ȗ Croatian Technology & Business Association, Qatar Ȗ Ȗ AW Rostamani Building Industries, UAE & Oman Knauf Premium Partner 2013 Ȗ Ȗ Qatar Gypsum Products Industry (QGIPS), Qatar Ȗ Ȗ Gemini Building Materials, UAE & Gemini International, Oman

Special Recognition 2013 ȖȖ New BK Super Impex, Nepal ȖȖ Adora Carpet Splendour, India ȖȖ Glory Products, Kolkata, India ȖȖ ASHGAL, Qatar ȖȖ HBK Contracting Company, Qatar ȖȖ SEG Qatar, Qatar ȖȖ FINO International, UAE ȖȖ Al Turki Enterprises, Oman ȖȖ Building Department, Dubai Municipality ȖȖ Dubai Central Laboratory Department, Dubai Municipality Special Appreciation ȖȖ Late Mrs Kezban Onay, Promer Qatar Employee Awards ȖȖ Al Hussain Habeeb Mohammed ȖȖ Fazil Zafar ȖȖ Ghassan Ibrahim ȖȖ Jasper Balajadia ȖȖ Lee Evans

ADVERTORIAL

ȖȖ Michael Ray Ȗ Ȗ Nicolas Neusuess Ȗ Ȗ Pravin Guthale Ȗ Ȗ Richelle Tuliao Ȗ Ȗ Rodalyn Camayang Ȗ Ȗ Rosaline Lingat “I am very proud to win this award although it was unexpected,” said Hasan Abu Gheida, Managing Director, Qatar Gypsum Products Industry (QGIPS), whose company was awarded the Knauf Premium Partner 2013 award. He continued: “Thanks to the excellent support extended by Knauf for the past 12 years, we have been able to ensure that Knauf is a well-known brand in Qatar and is specified in all the major projects in Qatar. For 2014, we are planning to further increase our activities and grow the sales. With the technical and commercial support of the Knauf team, we are confident of improving our turnover in Qatar.” A spokesperson for Gemini Building Materials said the Premium Partner Award was a great recognition of the loyalty and hard work demonstrated by his company in growing Knauf’s business in the UAE and Oman. He said: “They are the largest gypsumbased building material manufacturer in the world and to be associated with them is a privilege for us. However, Knauf’s emphasis on providing support with a human touch ensures that everybody they work with progress in terms of meeting the market’s as well as Knauf’s expectations.”

Knauf’s technical and commercial support evoked praise from the company’s customers from the Middle East and the Indian subcontinent. Madan Bahadur Thapa of New BK Super Impex, Nepal who was bestowed with a special recognition award for 2013, said: “We are glad to have been appreciated for the work put in to establish the Knauf brand in Nepal. More important, it is a vote of confidence in Nepal as a country contributing to their business goals in the region.” He pointed out that working with Knauf is like being part of a family, a view echoed by other customers attending the event. “They have supported us with their branding which ensured that business would always come our way and strengthened us as company as well. With their continued support, we will grow our sales in 2014 as well,” said Thapa. March 2014

INFRASTRUCTURE MIDDLE EAST

TRANSPORT MIDDLE EAST RAIL CONFERENCE REVIEW

GCC RAIL

Face to face: the men who lead GCC rail plans Middle East Rail in Dubai last month brought together leading figures from across the GCC to reveal the current state of play in their countries and to discuss whether the region is still on track for a 2018 linked network. By Gary Wright

Kingdom of Saudi Arabia: ‘We will be at the centre of the rail network’

HE Mohammad Khlaid Al Suwaiket, President of the Saudi Rail Organisation

he President of Saudi Railway Organisation has confirmed his new national rail network will link with Qatar and Bahrain. HE Mohammad Khlaid Al Suwaiket was speaking at the

T 28

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Middle East Rail conference in Dubai last month where he talked of his country’s long rail tradition. He stated that rail was “the most efficient form of transportation” and reminded the 200 plus delegates in the conference room that his country had been involved in railways since 1951.

He said that the rail expansion over the next 10 years would ensure Saudi Arabia was at the heart of the GCC rail network. He focused on the mineral industries complex of Ras Al Khair in the north of the country, which would link via Jubail to Dammam. The Ras Al Khair complex will link to underground mining facilities and produce commodities including aluminium, phosphates, copper that rely on lowcost transport to ports. He also spoke about the line from Jeddah in the west to Riyadh (the 1,000km Saudi Landbridge project) which he says is proving major boost to the country’s efforts at economic diversification. The Landbridge Project is moving forward and the $37m design contract was awarded to Italferr last year. Al Suwaiket told the conference that the $11bn Haramain High Speed Rail Link between Makkah, Jeddah, KAEC and Medinah is 50% complete. When finished, the 450km line will run trains at up to 350km/h. He also referred to plans to examine a possible link with Bahrain, via a bridge. He said a feasibility study is underway and is expected to be finished by Q3 this year. >>

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TRANSPORT MIDDLE EAST RAIL CONFERENCE REVIEW

UAE: Oman: ‘Our railway will ‘Mountains open in 2014’ increase costs’

John Lesniewski, Sales Director of Etihad Rail

Abdulrahman Al Hatmi, Director of ONR

he first trains will begin running in the UAE by the end of the year, pledged one of the directors of the company tasked with the implementation, during last month’s Middle East Rail conference in Dubai. John Lesniewski is the Sales Director of Etihad Rail. He said: “Stage one, which is currently under construction, is almost finished and we are testing it.” The first phase is the 266-km line from Shah and Habshan to Ruwais, which will be used to transport sulphur. “We see operations starting from the end of 2014,” said Lesniewski, who told the conference that phase two will run from Dubai and Al Ain to link with the Saudi Arabian rail tracks and that project is due to be tendered and evaluated within the next few months. He said: “We are close to awarding these tenders and we expect construction will start between now and the summer. We plan to be connected to the GCC by 2018.” The final phase will concentrate on the northern emirates linking the region to Dubai and Abu Dhabi. Lesniewski message during the conference was loud and clear: the UAE is leading the GCC in terms of rail development.

man admitted it might struggle to meet the 2018 completion target for its share of the GCC rail network. Abdulrahman Al Hatmi, director at Oman National Railway is responsible for the 170km Oman-GCC link. He said: “We will award the first contract by the end of this year. Pre-qualifications for the design will be by the end of March.” During a panel debate on the first day, he said delays were possible: “I cannot say that there will never be a delay.” He also told conference delegates that the estimated cost of $3bn per km, because of his country’s mountainous terrain, makes the Oman section of the GCC railway, the most expensive and his government will likely seek finance at the end of this year once contract details were awarded. He said: “We don’t have an issue with financing. However, we are tied up with the 2018 delivery line. If you want to close a deal of financing it takes time to do that.” Last year, Oman confirmed it would spend $15bn on a country-wide, 2,244km network and expected work to begin in the last quarter of 2014. “We expect works to start in 2014 and the first segment will start in Q4,” Salim bin Said bin Salim Alami, Assistant Director-General at the transportation ministry, told Reuters.

INFRASTRUCTURE MIDDLE EAST

March 2014

Kuwait: ‘The end of 2019, probable’

Only Kuwait metro is expected to ready by 2020

design team is being recruited but Kuwait looks set to be one of the last in line with its rail project, as one of its main advisors revealed during the Middle East

Rail Conference. “I think there will be a delay, but we hope that we meet the 2018 deadline. However, the delay [to the GCC rail project] can be extended until the end of 2019,” said Mansour Al Badr, the Chairman of the advisory committee for the railway and metro project in Kuwait. “The budget and allocations have been made and we just need to start the tendering process. We are in the phase of hiring consultants to design the project,” he said. The $10bn 511km national rail project and the $7bn Kuwait City Metro were first confirmed in 2010 and passed by parliament as part of the country’s development plan. But political discussions delayed approval until 2013, scuppering original plans for metro contracts to be awarded in 2011 and completed by 2016. Now the metro is expected to ready by 2020 but the 2018 national network deadline is under threat.

MIDDLE EAST RAIL CONFERENCE REVIEW

dubai metro

Dubai plans rail network expansion By 2020, the total length of Dubai’s rail network, led by the Metro, is expected to touch 110km with 70 stations. By Anoop K Menon ample this: In 2006, public transport accounted for only six per cent of transport journeys in Dubai. By 2013, the same had increased to 13%. The target for 2020 is 20%; for 2030 it is 30%. It is important to view these targets in the twin contexts of Dubai’s population growth and private vehicle ownership in Dubai. At last count, Dubai’s population stood at 2.17m while car ownership continues to be more than one vehicle for every two people. Dubai’s mass transit systems, overseen by the Roads and Transport Authority (RTA), comprises Dubai Metro, public buses, marine transit modes and taxis. According to recent statistics from the RTA Statistics Section, mass transit systems ‘lifted’ 440.672m passengers in 2013 compared to 367.657m in 2012 and 346.500m in 2011. What cannot be denied is the success of Dubai Metro in changing the image of public transport in Dubai and the UAE for the better. While the share of Metro vis-àvis other public transport modes were not released by the RTA, the Red and Green Lines of the Dubai Metro lifted 137.759m riders in 2013 compared to 109.491m riders in 2012, and 69m riders in 2011. In 2013, the average daily ridership of the metro recorded was in excess of 450,000 passengers and exceeded half a million during public holidays, whereas the average daily ridership reported in 2012 was in the region of 300,000 passengers. This growth reflects positively on RTA’s goal of achieving one per cent increase in public transport’s

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March 2014

In 2013, the average daily ridership of the Metro during public holidays exceeded half a million

METRO METRICS Total length – 75km Red Line – 52km Green Line – 22.5km Stations – 47 Red Line – 29 Green Line – 18 + 2* *Two stations are common to both lines

Average daily ridership in 2013: Over 450,000 passengers

share of the commuting pie every year “The ease of owning a car in the UAE is the biggest challenge to our goal of moving people from using private cars to public transport,” said Abullah Yousuf Al Ali, Acting CEO of RTA’s Rail Agency while speaking at the Middle East Rail conference in Dubai last month. According to RTA’s analysis, 20% of the Metro users are car owners. Al Ali also shared RTA’s plans to increase rail network in the emirate which includes doubling the length of Green Line, extending the Red Line at both ends and adding more stations.

MIDDLE EAST RAIL CONFERENCE REVIEW

The last quarter of this year will see the introduction of a brand new mass transit mode with the launch of the Dubai Tram “One of our key projects before 2020 is the extension of Green line from Al Jaddaf to Academic City,” revealed Al Ali. “The green line will be extended by further 20.6km of which 8.6km will be underground with 11 new stations that will serve the areas of International City, Academic City, Dubai Silicon Oasis and Ras Al Khor.” Currently, the Green Line is served by 20 stations. While Al Ali didn’t give details about the tendering stage, it is widely expected to happen towards late 2015. The Red Line extension will comprise two parts – one, a 3.5km long extension connecting the Rashidiya-end to Mirdif City Centre and two, extension of the Jebel Aliend to the Expo 2020 site near Al Maktoum International Airport. The length of Jebel Ali extension is expected to be in the region of 10-15km depending on the alignment, which is yet to be finalised. Al Ali said that the project will be tendered soon without putting a time line to it. The Red Line extension will add 12 more stations to the existing 29. Currently, the total length of Dubai Metro network is 75km served by a total of 47 stations. By 2020, the total length is expected to touch 110km with 70 stations and by 2030, the total length will be around 421km with 197 stations. The last quarter of this year will see the introduction of a brand new mass transit mode with the launch of the Dubai Tram which serves communities such as the Marina, Jumeirah Beach Residence, Dubai Media City and Knowledge Village. The tram will link with the Dubai Metro at the Dubai Marina as well as the Jumeirah Lakes Towers stations. It will also intersect with the Monorail of the Palm Jumeirah at the entrance of the Palm off Al Sufouh Street. “The first phase of the tram project is around 10.6km served by a total 11 stations,” said Al Ali. “We hope to complete phase two of the tram project with a total length

Expansion plans Red line Part 1: Rashidiya-end to Mirdiff City Centre – 3.5km Part 2: Jebel Ali to Expo 2020 site (Al Maktoum International Airport) – 10 to 15 km Green Line Jaddaf to Academic City – 20.6 km length of both lines by 2020 110 km

of 5km and seven stations by 2020. Phase 2 will connect phase 1 to the Mall of Emirates and Burj Al Arab. hotel” Dubai Metro currently operates 56 trains (out of 79) on both lines at intervals of 3-6 minutes during peak times and 6-8 minutes during off peak times. While the current capacity is 13,000 passengers per hour per day at three minute intervals, the Metro is capable of handling around 26,000 passengers per hour per day at 90 second intervals. Dubai’s rail network will be further enhanced once Stage 2 of Etihad Rail takes off, which will connect Jebel Ali and Al Ain through a 186km long corridor. Stage 2 is expected to become operational by the end of 2017. March 2014

INFRASTRUCTURE MIDDLE EAST

Construction

Engineering a prosperous future

The GCC construction market presents unique challenges for engineers. Gavin Davids speaks with a cross section to discover what lies ahead n the wake of the global financial crisis, a huge number of industries around the world were brought to their knees and it has taken years for them recover. In fact, some of them still haven’t. Others, however, were quicker to adapt to rapidly changing circumstances, and as such managed to position themselves to take advantage of the recovery when it came. Construction is one such industry. When the bottom fell out of the American and European markets, we saw an influx of construction firms into regions such as the Middle East, East Asia and Australia. Furthermore, those firms that were already established in those regions put more effort into winning projects and securing contracts. While there have been undeniable hardships faced by construction firms as they struggled to grab a piece of the pie, there have also been tangible benefits visible to the industry, the firms and the regions they targeted. The Middle East has come to be regarded as the biggest construction market in the world, but given its relative infancy, there remains much to ensure that best practices and methods are followed. However, given its inhabitant’s ambition to have the biggest and best of everything, it affords construction

Leading the way Brian J Leavitt, Managing Engineering Middle East, KJWW Engineering Consultants

engineers the opportunity to shape the way their industry does business. Nic Alford, deputy director for Middle East and North Africa at the Mace Group, points out that the GCC market has secured significant ongoing investment into construction and engineering projects in the region. Countries like Qatar and the UAE have received significant interest and there are a large number of infrastructure and engineering projects in these countries that are either in the planning process or have begun construction, fuelling the demand for engineers and the very highest of standards.

“Given the high levels of regional investment and an ongoing focus on global iconic projects such as ‘the world’s tallest’ or ‘the world’s most inclined’, there are new and significant engineering and technological solutions being developed regionally,” says Alford. “There is a considerable regional emphasis on large programmes of work, which are subsequently leading to the implementation and adoption of cutting-edge IT platforms and systems,” he adds. One such example is the Al Bahr Towers in Abu Dhabi, which were completed for the Abu Dhabi Investment Council in 2011. The project required the use of frontline technology and

“As management consultants we have found that introducing new engineering technologies or techniques can be difficult as this change is not always embraced” Nick Alford, Deputy Director, Middle East and North Africa, Mace Group

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Construction

“We’re bringing some of the best, cutting edge engineering technology from different parts of the globe and bringing it to the Middle East” Brian J Leavitt, Managing Engineer, Middle East, KJWW Engineering Consultants IT platforms in order to: provide a unique shading system, reduce carbon emissions in the face of an uncompromising location and conditions, and to provide state-of-the-art commercial and technological spaces. “Another good example is the Abu Dhabi National Exhibitions Centre (ADNEC) Capital Gate Hotel in Abu Dhabi which is currently the world’s furthest leaning man-made tower with a unique “twisted” diagrid design. Diagrid technology has been used on only a few highprofile international buildings and is truly innovative in that the system requires less structural steel than a conventional steel frame, which reduces costs as well as benefits the environment,” says Alford, highlighting some of the challenges construction engineers face when it comes to fulfilling client’s demands in the regions. Brian J Leavitt, Managing Engineer for the Middle East at KJWW Engineering Consultants, adds that post-crisis, he has seen a marked shift in the way engineering is perceived in the region. “People call it a financial crisis, but it was more of a slowdown and a chance for everybody to collect their thoughts and really look at their projects and see if they were financial feasible and if they were meeting their mission statements (in terms) of what they wanted to accomplish,” he tells Big Project ME during a phone interview. “What we’ve seen as financial times start to recover is that people are starting to use more time for their planning and for their feasibility studies. Previously, it was put groups together, as fast as you can, and move the project out of the door as fast as you can. Build as fast as you can because everyone else is building and you want to be there first.” “Now there’s more of a team (ethos) and that team usually consists of one or more international partners and one or more regional partners, who spend more time in the planning stages and making sure that the result is really what you wanted.” With this shift towards a team based work ethic comes a move towards the

adoption of new engineering technologies and techniques, which is often driven by the international partners. However, this poses its own challenges because despite being a relatively ‘young’ construction market, the Middle East can remain stubbornly traditional in certain matters, Alford explains. “As management consultants with over 15 years’ experience, we have found that introducing new engineering technologies or techniques can be difficult as this change is not always embraced. It can sometimes prove difficult for local authorities to see the benefit in the actual innovation or new technology before it is implemented.” Challenges such as these are often overcome through the employment of expert third parties who can communicate the benefits of new technologies and create an image of how it will benefit both the client and the local authority in the long term, he adds. Leavitt agrees wholeheartedly with this, but claims there is now a gradual evolution towards modernity underway. “We’re bringing some of the best, cutting edge engineering technology from different parts of the globe and bringing it to the Middle East, but we’re working under some of the existing processes and policies that have been in place for a long period of time, in the region,” he says. “Sometimes the policies and procedures need to change along with the technologies to

allow them to work hand in hand. It’s not just taking a new piece of technology. You need to have the processes related to how to have that installed and how it relates to the other systems. So I see the processes changing over time and we’re in the evolution period right now, things are changing in the public market and in the government ministries,” Leavitt asserts optimistically. What would speed up this evolution is communication, both engineering experts say. With cities such as Dubai and Doha turning into melting pots of cultures, there is an opportunity for engineers to communicate and learn from each other. “I would like to see a continued acceptance of technological change in the GCC and subsequently the creation of a construction environment that promotes innovation better, improves efficiency and enhances the delivery of developments,” says Alford. “I believe that the industry will maintain a focus on the oil and gas economies. We do see natural eight to 10-year cycles within each GCC country and these may be driven by large global events such as Expo 2020. Since 2011, there seems to be continued stability in a large majority of GCC countries and I believe that this should promote development in the construction industry further. With this ongoing investment, I hope to see the GCC continue to be a melting pot of international contractors and consultants that will help to drive and develop new initiatives and technologies.” “There’s so much we can learn from each other. But because of cultural barriers or language barriers, it sometimes takes a little bit longer to communicate, but as long as we don’t give up on each other, and we keep working towards the dreams and goals that the region has, it’ll benefit not just the region, but it’ll be a great accomplish that the people of the Middle East should celebrate. They’re doing something and they have capabilities that the rest of the world can’t,” concludes Leavitt. March 2014

INFRASTRUCTURE MIDDLE EAST

Construction

INFOGRAPHIC

The Most Common Construction Site Injuries

According to the Centre for Disease Control, construction is one of the most dangerous industries to work in. Workers can help prevent these incidents from occurring by being aware of the common construction site injuries that are suffered, as well as through stressing safety in the workplace

Injuries to the spinal cord These construction site injuries are often suffered because of falls on the build site. Spinal cord injuries can lead to lifelong disabilities and brain damage.

CUTS AND LACERATIONS Construction workers often suffer cuts and lacerations to the skin due to poorly maintained or defective tools, unsecured machinery, exposed nails, and other onsite hazards.

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LIMB OR DIGIT LOSS Construction sites are full of heavy objects, materials, and pieces of machinery. If one of these falls on or traps a worker, it can easily cut off a limb, finger, or toe.

HEAD INJURIES Head injuries are often suffered on construction sites due to falling objects, tools, or materials, especially for workers who are digging or building from the bottom up.

LOSS OF HEARING

If workers fail to wear earplugs while operating jackhammers or other extremely loud equipment, they could affect or lose their hearing.

VISION LOSS Improper handling of or exposure to on-site chemicals, gases, and other hazards can pose a risk to workersâ&#x20AC;&#x2122; vision. In some cases, prolonged exposure can complete vision loss.

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BURNS AND SCARRING Burns are one of the most common construction site injuries around, mainly because of the likelihood of fires and explosions onsite.

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STRESS INJURIES Constant lifting, bending, or moving in a certain way can cause stress injuries over time. These often occur in the back and can have lifechanging effects for the worker.

BROKEN, FRACTURED OR CRUSHED BONES Bulldozers, cranes, and other equipment, if not secured properly or operated correctly, could inflict serious injury on workers.

event wetex 2014

Sustainability is central to WETEX 2014 WETEX 2014 attracts strong participation from regional and international companies in electricity, water, renewable and fossil fuel sectors ustainability returns as the main theme of Water, Energy, Technology, and Environment Exhibition (WETEX) 2014. If the 2013 theme was ‘Sustainable development for all,’ for 2014, which also the marks this annual event’s 16th edition, it is ‘At the forefront of sustainability.’ WETEX 2014’s theme emphasises the environment sustainability policy of the Supreme Council of Energy and the Dubai Electricity and Water Authority (DEWA), says HE Saeed Mohammed Al Tayer, Managing Director and CEO of DEWA. The exhibition, he explains, will promote conservation culture through specific channels such as SmarTech, which focuses on solutions, products and green buildings related-technologies for commercial and industrial sectors, and through seminars addressed by industry experts from local, regional and international companies. The annual exhibition will held over the three days, from April 14-16, at the Dubai International Convention and Exhibition Centre. It will take place alongside the World Green Economy Summit, held by the Dubai Green Economy Partnership under the theme ‘Global Partnerships, Sustainable Future.’ WETEX 2014 is held under the directives of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and under the patronage of HH Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai, Minister of Finance of the UAE and President of Dubai Electricity and Water Authority (DEWA).

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The World Green Economy Summit will be held alongside WETEX 2014

“We are pleased with the overwhelming response from companies engaged in the energy, water, environment and oil and gas sectors to participate in WETEX,” says Al Tayer. “The event provides a perfect platform for forging partnerships and promoting business as well as consolidating trade relations between the public and private sectors on one hand and between private sector companies engaged in electricity, water, environment, oil and gas, and renewable energy on the other,” he adds. This year also marks the launch of SmartTech shopper targeted at consumers to

increase their awareness about eco-friendly products and solutions. “We have signed during previous editions of WETEX a series of agreements and memorandum of understanding to provide these products to consumers with the goal of reducing electricity consumption and conserving resources,” says Al Tayer. “We recognise the importance of providing environmentally-friendly products and solutions as part of our vision of raising awareness among consumers about the importance of sustainable environment for future generations.”

PROMOTION/GULF ETERNIT INDUSTRIES

Pioneers in Fibreglass Pipes With its huge product portfolio of large diameter fibreglass pipe systems, Dubaiheadquartered Gulf Eternit Industries (GEI) is the only company in the world which provides bespoke solutions across the three sectors; oil & gas, water and industrial. Vice President GCC Sales Mounib Hatab discusses his company’s competitive differentiators in the GCC’s water sector s a member of Future Pipe Industries Group, what have been the key milestones in GEI’s journey towards the top position in the market for fibre glass pipes in the region’s water sector? GEI has played a pioneering role in converting pipe demand in the GCC region into fibreglass; today, the GCC has one of the largest penetration rates for fiberglass pipes at 22%. Over the last10 years, the use of fiberglass pipes has increased dramatically due to their advantages over pipes made out of traditional materials, whether it is their superior anti-corrosion properties, safety, longer life cycle or cost-effectiveness. One of our biggest achievements was the introduction of GRE H20 pipes in water lines, a first for the region. We introduced them in UAE through Dubai six years ago. This is a unique offering as no other company offers it. GRE H20 pipe systems minimise water losses in the network to the maximum. They are flexible, corrosion-resistant and styrene-free, and were developed mainly to serve potable water transmission and distribution networks. The H20 pipes range from 80mm to 4,000mm in diameter and are able to withstand pressures up to 25bar, making them suitable for use in a wide range of applications for both underground and above-ground installations.

region for Glass Reinforced Polyester (GRP) pipe systems. The group also spends considerable time and money acquiring and maintaining international certifications and accreditations that support our quality offering.

In a highly competitive market, what does your company do better than any of your competitors? Our strategy is based on offering integrated engineering solutions and bespoke products to support our customers, by providing manufacturing, supply, engineering, site installation, field support and fabrication support. As we always work in close partnership with our customers, we are able to anticipate and

respond to their changing needs and schedules to develop products and solutions that answer their requirements, on time and on budget. Today, the technology has matured and the industry appreciates the product’s advantages, from reliability to low cost of maintenance, greater life span and anti-corrosive attributes. The group has manufacturing facilities across the region, and can increase its production capacities as per project requirement in relatively short periods. The group’s integrated business model gives it the opportunity to control the complete process, from quality of the materials to end product testing. Our testing facility in Abu Dhabi is the largest in the region and utilises the latest state- of-the-art equipment. The facility is assessed and certified by the independent agency, TÜV Rhineland. We offer both short term and long term testing for optimised quality and long term performance. Our pipe systems have a 50-year lifespan. Our engineered products have also been recognised for their quality and excellence, receiving the first ever Kitemark award in the

Where are you seeing the strongest demand for your products and solutions? The strongest demand is coming from the water distribution and transmission sector. Thanks to fast growing population and increasing urbanisation, there has been a surge in the demand for power and water across the region, which is already ranked the largest in terms of consumption. Last year, during the meeting of the GCC Electricity and Water Co-operation Committee, a $10.5bn water network project including two desalination plants to serve the entire GCC was discussed. Therefore, the increase in demand for pipelines is also likely to be fuelled by the massive growth of the desalination sector. What are your plans for investment and growth for the next 2-3 years? We want to invest in R&D. We are constantly striving to expand the envelope on pressure and diameter, the two critical components of a pipe, where we already enjoy the highest product capabilities in the world. We will also focus on strategies to explore customer-driven innovations. Through a strong focus on customer service, we strive to offer sustainable and reliable integrated solutions and further develop and improve our technologies and leverage our existing capabilities. Customers can help us identify the problems we need to focus on solving and provide new insights on how to better deliver our products and services. Contact sales@gulf-eternit.com Visit us at WETEX 14-16 April at Stand MS-01 March 2014

INFRASTRUCTURE MIDDLE EAST

utilities

interview

Desalination’s direction Nearly 50% of the world’s desalination capacity is located in the Middle East, or more accurately, the Gulf region, where the dependence on desalination as primary water resource is the greatest. Dr Abdullah Al-Alshaikh, President of the International Desalination Association (IDA) and Deputy Governor for Planning and Development, Saline Water Conversion Corporation (SWCC), Saudi Arabia spoke to Anoop K Menon on the industry’s new direction markers n your keynote during Abu Dhabi Sustainability Week, you repeatedly emphasised that sustainability is one of the most important paradigm shifts of the modern era. To what extent is this universal trend impacting the desalination industry, which is a key part of the region’s critical infrastructure? I have little doubt that sustainability will determine our future. The change it is driving is as major as the industrial revolution of the late 18th century, the manufacturing and electrification revolutions of the late 19th and early 20th centuries. In our region, especially among the Gulf States, it is a strategic choice; it is not a question of supplementing any existing water resource because technically, we don’t have any other source besides desalination and water demand in the region is growing steadily. In recent years, our industry pursued sustainability by appealing to the higher senses, whether it is social responsibility, humanity or common good. Unfortunately, once the conferences and workshops ended, we returned home to our work and worries. But many among us have been consistent, seeing in sustainability an opportunity to overcome the challenges of high costs and shortage of energy supply. A great example of a technology being driven by cost reduction is Reverse Osmosis (RO). Some companies have embraced sustainability to get, what they hope, would be a jump start on the raft of regulations

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and mandates coming out of the corridors of government. A few, who were already put on notice, are racing to meet compliance by embracing sustainability. But what is missing in this conversation is an understanding of the great opportunity before us. What have been the opportunities created by this drive towards sustainability? I subscribe to the viewpoint that sustainability equals innovation, first put forward by the late business thinker C K Prahalad. Innovation is the outcome of sustainability, which is the way forward for everybody, including the desalination

industry. I see the industry moving towards more energy efficient methods of desalination like RO, while also perfecting them, as exemplified by the gains in nanotechnology and nanofiltration over the past two years. Sustainability-led innovation could even re-invigorate our traditional mainstay of thermal desalination through the use of renewable energy. We will also need to rethink and redesign training, manpower planning and management systems in our industry. In fact, sustainability will reshape our business models, redefine our practices and transform our industry.

Future Vision Sustainability-led innovation could re-invigorate traditional thermal desalination

utilities

membranes with bigger element sizes. The project’s overall objective is to reduce the energy requirements and environmental impact of desalination through RO.

How is the industry addressing the challenges of energy efficiency and cost reduction? I think renewable energy is poised to induce a paradigm shift in the way we approach desalination in the Gulf. How to be sustainable while providing the power to desalinate water is a big challenge, and renewable energy could be a solution. Power constitutes 40% of the cost of desalinating water. Masdar in the UAE and K.A.CARE in Saudi Arabia are already working on harnessing solar energy for desalination. In fact, renewable energy can also address concerns about air pollution from power plants that help run desalination plants.

There is a debate on whether RO is suitable for the Gulf but I feel that RO has a lot of scope in terms of hybrid systems. We have a lot of investment locked up in thermal desalination technologies; therefore, to increase capacity, a clever option would be add RO so that you can blend water with less cost and same power. I think Japan’s Mega-ton Water System project, which aims to develop the world’s first megaton per day (or one million m3/ day) desalination plant (equivalent to the daily needs of about four million people), could herald a new desalination era. A key feature of the project is its use of low-pressure

Coming to the business of desalination, do you feel the region has missed the bus in terms of developing an industry around the largest desalination market in the world? As a region, we woke up late to understanding the benefits of developing an industry around this strategic source of water. But coming in late is better than never. In fact, water technology leaders like Toray and Dow are building membrane manufacturing plants in Saudi Arabia. Also, in the new contracts being awarded, there is a condition that selected bidders have to manufacture most of the equipment and spare parts in the region. In the past five years, there has been a paradigm shift with local manufacturers entering into joint ventures with international companies to manufacture valves, pumps and other equipment for the industry. We will be seeing more and more value addition taking place in the region which will also help reduce the costs. R&D activities focussing on desalination are on an upswing in the region, especially in the UAE and also in Saudi Arabia, where my organisation SWCC has been particularly active, getting a few patents to its name. I think the government and industry would like to arrive at a point where we can carry out advanced research here. The challenge is to move the technology from the lab to the industry for which you need a solid industry base. That is now coming up, and who knows, the Gulf region could end up exporting desalination knowledge. Any concluding thoughts? I think the future of desalination and renewables are intertwined, at least in the Gulf. This is the only way forward because with renewables, you kill two birds with one stone – first, you leave the environment better; second, you will have more benefit from the oil you are blessed with and your economy will be much better.

“sustainability will reshape our business models, redefine our practices and transform our industry” March 2014

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UTILITIES

WATER DEMAND

Water is vital for future power The World Bank’s new Thirsty Energy initiative aims to educate governments around the world about the vital link between water and energy generation – without one, you cannot have the other. By Gary Wright ater shortages have affected power supplies across the developed and developing world. For example, in the USA, power plants have been affected by low water flows or high water temperatures. In India, a thermal power plant was shut down due to severe water shortage and in France, energy production in nuclear power plants has been reduced by high water temperatures threatening cooling processes during heatwaves. In Sri Lanka, China and Brazil, droughts are seriously threatening hydropower capacity. The worldwide demand for energy will increase by more than a third over the next 20 years, and it is a central requirement for continued growth in developing countries. The balance between energy and water is straightforward: generating energy requires reliable water supplies, whether it is from hydropower or the cooling of power plants to its use in the extraction and process of fuels. Equally, a reliable energy supply is vital for the water sector so that it is able to extract, treat and transport that water, which is vital for the production of crops, including those used to make biofuels. The World Bank says that energy planning and production is often made by governments without taking into account existing and future water constraints. “Planners and decision-makers in both sectors often remain ill-informed about the drivers of these challenges, how to address

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them, and the merits of different technical, political, management, and governance options,” it says. “The absence of integrated planning between these two sectors is socioeconomically unsustainable.” The new Thirsty Energy Initiative backed by the World Bank specifically aims to educate governments to think across both sectors when planning for the future.

The initiative was launched at the World Future Energy Summit in Abu Dhabi in January with four aims: ȖȖ Increasing awareness regarding the water

requirements of energy projects among political decision makers. ȖȖ Enhancing stakeholder capacity to plan and manage energy and water resources to help assess the economic, environmental and social implications of water constraints in energy expansion plans. ȖȖ Fostering interdisciplinary collaboration between the energy and water sectors and promoting knowledge exchange. ȖȖ Developing innovative technical tools and approaches and policy-oriented material to help countries develop and manage their energy and water resources sustainably.

UTILITIES

interview

Satisfying the thirst for power Diego Rodriguez, Senior Economist and Team Leader of Thirsty Energy, Water Unit, The World Bank speaks to Infrastructure ME about its new Thirsty Energy initiative Why did you choose to launch the Thirsty Energy initiative at the World Future Energy Summit? The process to develop Thirsty Energy as a global initiative took some time as we needed to ensure that we had a good understanding of the main challenges. One key aspect we found is that we lack a thorough understanding of energy in the water sector and vice versa. It is clear that we required an unconventional way of thinking in which we do not tackle the interlinkages from a water perspective but rather from an energy perspective. As such, the Thirsty Energy initiative needs to work initially with the energy community and then bring the water community to ensure that we develop integrated planning and integrated investment solutions. Hence, we decided to launch Thirsty Energy at a large global energy event. The Abu Dhabi Sustainability Week, which included the World Future Energy Summit and the International Water Summit, presented the ideal venue for this and the organisers of the WFES embraced the idea when we presented Thirsty Energy to them in summer 2013. Furthermore, Water & Energy is the theme of World Water Day, which is celebrated on 22nd March every year as well as the Stockholm World Water Week this year. WFES presented the perfect opportunity for promoting the water-energy topic and the Thirsty Energy initiative early in the year. The aim of Thirsty Energy is clear for developing nations but how does the World Bank use its expertise to help GCC nations?

The World Bank has been working for several years with GCC countries on their strategies for managing water, energy and food security nexus issues in the context of both our advisory services, as well as through regional studies such as our work on Renewable Energy for Desalination. We have been encouraged by the increasing interest of GCC partners to develop more sustainable approaches to

managing water, energy and food security issues in ways that explicitly recognise fiscal and natural resource trade-offs, as well as the climate implications. Our experience to-date has emphasised the value to GCC partners of the three elements of our support: ȖȖ Analysis of current and alternative approaches to managing water, energy and food security which highlights the real costs and trade-offs in a way which can be discussed across sectoral interests. ȖȖ Dialogues amongst different sectors such as water, agriculture and energy - to facilitate common understanding and work towards consensus on necessary changes in strategies, regulations and institutional approaches. ȖȖ Providing access to relevant, global experience in addressing similar issues so that GCC countries can benefit from that experience in designing approaches, which are appropriate to their own country. We look forward to expanding this work amongst GCC partners, given their increasingly important role in convening discussions on sustainability issues globally as well as regionally, and to support the next step which is to demonstrate leadership in moving towards more sustainable natural resource and climate management in the context of rapid economic development.

“before addressing additional supply side options, it is important to improve efficiencies” March 2014

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UTILITIEs

The World Bank Group has set two goals for the world to achieve by 2030: 1. End extreme poverty by decreasing the percentage of people living on less than $1.25 a day to no more than 3%. 2. Promote shared prosperity by fostering the income growth of the bottom 40% for every country The World Bank Group is: • the world’s largest funder of education • the world’s largest external Which nations are already being assisted by the World Bank’s Thirsty Energy Initiative? Thirsty Energy is a brand new initiative and we want to ensure that it is demand-driven, not a top-down approach. By this we mean that we must ensure that our client countries and governments are the ones demanding support in order to address interdependent energy and water challenges in a more integrated approach. We have started collaboration in South Africa, and we are having ongoing discussions with Morocco and Brazil. The bank aims to provide continuous support to other countries and we expect that the demand will grow. Our objective is to assist and collaborate with all growing economies in various world regions in which energy production and water risk will increase in the next few decades. Do wealthy nations face potential problems in decades to come if they believe hard cash is the simple answer to water supply? Available financial resources are a necessary but not sufficient condition to manage water resources properly. The problems in water are complex and require complex responses. Many current water supply systems have high inefficiencies in terms of water losses, low collection rates, insufficient operational and financial management, etc.

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So before addressing additional supply side options, it is important to improve efficiencies. Water infrastructure requires lumpy investments and high operations and maintenance costs. Once decisions on expansion of the supply side have been made, governments must have proper allocation mechanisms, and institutional, legal and regulatory frameworks in place. The economic, environmental and social aspects of future expansion in supply must be properly analysed in order to understand the potential impacts of new infrastructure. Desalination, for example, is providing water supply in many regions of the world. But these technologies can still be rather expensive, in terms of initial capital investments and recurrent operations and maintenance costs. The costs of mitigating environmental impacts must be properly incorporated in the costs of the investment. High costs can impact the poor, as tariffs structures may need to be adjusted upward to reflect the increasing costs of service provision. If social policy is not adequate, increasing tariffs can have a regressive impact on the poor by increasing expenditures as the poor will not be able to spend more on water services. It is crucial that nations think about the long term sustainability and have a clear understanding of the importance of water to equitable economic growth.

funder of the fight against HIV/AIDS • a leader in the fight against corruption • a strong supporter of debt relief • the largest international financier of biodiversity projects • the largest international financier of water supply and sanitation projects It is a source of financial and technical assistance for developing countries. Its mission statement says: “We are not a bank in the ordinary sense but a unique partnership to reduce poverty and support development.” Established in 1944, the World Bank Group is headquartered in Washington, D.C. and employs over10,000 people in more than 120 offices.

Welcome to the future of environmental technology

May 5–9, 2014

World’s Leading Trade Fair for Water, Sewage, Waste and Raw Materials Management Be a part of this get-together of the worldwide environmental technology sector— at IFAT 2014 in Munich. Come and experience innovative new products and learn about successful strategies for the future. And benefit from the exclusive supporting program at IFAT and the opportunity for international networking.

www.ifat.de Visit IFAT’s sister events around the world: May 20–22, 2014 www.ie-expo.com

October 9–11, 2014 www.ifat-india.com

Information: German Emirati Joint Council for Industry and Commerce (AHK) | Dubai Tel. 04 447 0100 | sruthi.s@ahkuae.com

technology

The 3D experience Dassault Systèmes’ goal is to transform the way plants and equipment are designed, installed, supported and retired using 3D technology By Anoop K Menon esign, build, operate, maintain and decommission/retire plants or products without breaking sweat (or full-scale physical prototypes); get things right the first time and every time, save time, money and even paper. To do all of these, and more, all you need are virtual universes created with 3D software. “The Boeing 777 was first jetliner in the history of aerospace business to be designed using our 3D Computer Aided Design (CAD) software without any physical prototyping,” explains Olivier Leteurtre, Managing Director EuroWest, Dassault Systèmes. “Even the first simulation of the flight was done on a digital mock-up saving huge amounts of cost and time. We then started to think about how to manufacture, maintain and service the plane to complete the cycle.” That quest led to the development of Product Lifecycle Management (PLM) software. “Even otherwise, our customers in engineering, production and maintenance were asking us to integrate the supply chain because they had to work with different companies,” says Leteurtre. “With PLM, we were able to provide product design, manufacturing and service applications on one axis and collaboration between engineers inside and outside on the other.”

Today, Dassault Systèmes’ provides 3D design software, 3D digital mock up and Product Lifecycle Management (PLM) solutions across 12 separate industries ranging from aerospace to transportation to energy, process and utilities (EPU) to life sciences and even financial services. In 2012, the company embarked on the next stage of its evolution with the 3DEXPERIENCE platform, which capitalises on its 30 years of experience with digital mock-up and PLM to enable customers to not only model and simulate products, manufacturing processes and environments but also simulate the way products are bought, felt, used or to put it in a nut shell, experienced. “Essentially, we are using the power of the virtual world to improve the real world,” says Leteurtre. Digital troubleshooting Russia’s NIAEP used the 3DEXPERIENCE platform to develop a 3D digital nuclear plant management model, an industry first, with features for integrated design management, in particular for the creation and modification of a 3D model, construction management, field engineering, purchase and supply management, as well as facility commissioning and operation decommissioning. The result is reduced construction time and costs and better work efficiencies, quality and safety of NIAEPdesigned plants.

Leteurtre points out that in a 3D environment, safety and security elements of a nuclear power plant can be demonstrated more effectively as one can simulate behaviour or show how everything is certified instead of calling on people to trust presentations or papers. He continues: “Till recently, you needed to build physical mock-ups that costs millions of dollars. Today, using our software, it is possible to digitise all the mock ups that can be subsequently used during operations and maintenance of the nuclear power plant.” In fact, whether it is building a nuclear power plant or designing an industrial equipment or a building, virtual models enable operators, contractors, workers or even endusers, as the case may be, to simulate various aspects of their tasks before getting on with the job, saving time, money and avoiding disastrous consequences. “In a virtual environment, you can optimise any decision you take which ensures that you always have the best option,” says Leteurtre, adding: “Playing out the scenarios virtually doesn’t cost anything. But if you make a mistake once the plant is operational, the consequences can be disastrous.” For example, on a major construction project, even before putting the shovel to the ground, the owner-operator or the Engineering Procurement Construction (EPC) contractor can simulate movement of materials, equipment and personnel,

“Once you have the 3D mock-up, you can live with your

assets; eACH time you modify something in the real world, you modify the same in the virtual world too” 46

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technology

Olivier Leteurtre, Managing Director EuroWest, Dassault Systèmes

optimise the paths, check if there are collision or obstruction issues and fix them virtually. Once construction starts, they can simulate operations and maintenance processes to train and certify personnel virtually instead of doing that onsite with its associated health and safety risks. The normal practice is to build the plant and give training in the plant, which can be quite time consuming. The 3D digital design and mock-ups continue to serve the plant even during its day-to-day operations. Leteurtre notes: “Once you have the 3D mock-up, you can live with your assets; each time you modify something in the real world, you modify the same in the virtual world too.” In the end, you have a digital mock-up which is the exact image of the physical plant which means pinpointing issues, carrying out replacement or refurbishment of equipment or parts become easier and quicker.” The Social Enterprise With the 3DEXPERIENCE platform, Dassault Systemes hopes to help its customers create ‘social enterprises’ that involve their designers, engineers, marketing managers and consumers in the innovation process to create the best value. The platform comprises social and collaborative applications (ENOVIA for collaborative innovation and 3DSWYM for social innovation) for working in structured

and unstructured environments; 3D modelling applications (CATIA for digital product experience, SOLIDWORKS for 3D design, and GEOVIA for virtual planet) for shaping ideas into reality; Content and simulation applications (SIMULIA for realistic simulation, 3DVIA for 3D communication, and DELMIA for digital manufacturing and production) where virtual worlds meet reality; and information intelligence applications (EXALEAD for search and NETVIBES for dashboard intelligence) for dash-boarding and transforming big data into actionable intelligence. “Innovation is no longer just an engineering problem,” says Leteurtre. “The world is facing bigger challenges, whether it is urbanisation or shortage of energy or food and these problems cannot be fixed by prototyping. At the same time, we are getting a flood of data that could be used to simulate and optimise for a better world; this is exactly what we are doing with 3DEXPERIENCE, which is an extension of what we have been doing for past 30 years,” he explains. Thus, 3DSWYM, which Dassault describes as a social innovation application, allows companies to expand innovation by tapping into skills, expertise and experiences of their employees, including human resources, IT, R&D, marketing & communications, finance and legal, as well as external partners, suppliers and customers. The EXALEAD

semantic search engine blends search with intelligent, in-context content suggestions while NETVIBES dashboard intelligence, among other things, monitors and manages all internal systems and data sources, and the social web on a single dashboard. “You can now drive your business not only by having very nice and great engineering people but also having your finance, sales and compliance teams innovate and add value and using information from outside to give you better control over your business,” says Leteurtre. To make it easier for customers to implement solutions quickly and efficiently, Dassault Systèmes’ is offering industry solution experiences that cherry pick functionalities and technologies from its applications portfolio to create a single, powerful solution for a specific industry which is easy to deploy and use and deliver a faster return on investment. For example, the Optimised Plant Construction experience for EPU industries provides a single source of up-to-date project information which enables EPC companies, owners-operators and other project stakeholders to share information and collaborate effectively in a distributed project environment. Similarly, the Lean Construction experience for the Architecture, Engineering & Construction (AEC) industry provides a collaboration based project backbone that enables centralised project and data management and construction simulation for better planning and execution among other things. Ultimately, the 3DEXPERIENCE platform and the industry solutions experiences riding on it aim at enabling companies to put customers at the centre of innovation. Leteurtre claims that thanks to 3D, Intellectual Property (IP) too has become virtual. He says: “For example, if you disassemble an aircraft to two to three million pieces, it is impossible to get the knowledge of how to make that aircraft because the intelligence is embedded in the digital mock up. All the systems that describe the behaviour of the aircraft are inside the computer. In fact, the virtual world is becoming stronger than the real world because you can simulate and take best decisions on any number of scenarios. So the digital mock up, in effect, becomes your IP.” March 2014

INFRASTRUCTURE MIDDLE EAST

RENEWABLE ENERGY

Long road to solar Absence of a cohesive approach threatens to slow the development of a vibrant solar industry in the Middle East o feed the electricity demand fuelled by infrastructure development, industrialisation and population growth, the Midddle East region is expected to significantly increase its installed power generation capacity to 345 GW by 2020. In 2010, it stood at 234 GW. However, supply of fuel (liquid fuel and natural gas) could fall short with production of liquids (crude oil and other liquids) likely to grow at a Compound Annual Growth Rate (CAGR) of 2.5% while gas production is likely to grow at 3.2%. This shortfall could be bridged by boosting investment in renewable energy resources. According to the MENA Solar Energy Report 2014, published by MEED Insight

INFRASTRUCTURE MIDDLE EAST

March 2014

in association with the Middle East Solar Industry Association (MESIA), up to 37,000 MW of new solar, wind and hydroelectric projects are planned to be commissioned by the end of the decade, of which between 12,000MW and 15,000 MW will be sourced from solar energy projects specifically. “Of the 14 countries covered in-depth by this report, installed electricity generating capacity totals almost 260,000 MW,” says Ed James, Head of MEED Insight and author of the report. “Of this, installed solar capacity, excluding the thermal elements on integrated solar combined-cycle schemes (ISCC), stood at just 271 MW as of January 2014. Renewable energy as a whole including hydropower and wind power comprises over 16,600 MW, representing over six per cent of the total, came from renewable energy sources. The

majority was in the form of hydroelectric power plants with a capacity of 15,205 MW, while wind energy contributed 1,129 MW.” According to a Frost & Sullivan report, the contribution of renewable energy to the region’s total energy mix is expected to touch 9.5% by 2030, led primarily by solar as wind energy has lower potential in the region. The GCC countries, that together account for over 50% of Middle East’s total GDP, are expected to exert a strong influence on the development of the renewable energy industry in the region. MEED Insight notes that the region’s solar energy capacity could grow to 15,000 MW by the end of 2020, split equally between photovoltaic (PV) and concentrating solar power (CSP) technologies. If current plans materialise, the estimated direct investment in solar energy projects, excluding transmission

RENEWABLE ENERGY

and distribution investments, will amount to approximately $50bn at 2013 prices. “By far the largest potential solar power market in the region is Saudi Arabia. In its recently published white paper, the King Abdullah City for Atomic & Renewable Energy (K.A. CARE), the body responsible for overseeing the kingdom’s renewable and alternative energy programmes, said it envisaged installing 23,900 MW of renewable energy by 2020,” says James. “The majority of that total would be split between CSP and solar photovoltaic PV projects. If realised, the programme would be one of the largest single solar power initiatives not just in the region but in the world.“ While Saudi Arabia is set to become the undoubted leader in solar power in the region, a number of other countries have set themselves ambitious targets. Morocco, Egypt and Algeria plan to have at least 1,500 MW, 1,800 MW and 3,000 MW of solar power in place, respectively, most of which will be solar based. To achieve their ambitious objectives, each country will have to work hard to ensure the right regulatory frameworks and conditions exist in order to attract the necessary investment. “Currently, there lacks a cohesive approach to developing a renewable energy industry,” says James. “Governments need to provide the necessary financial and regulatory incentives such as feed-in tariff, net metering and tax breaks if investment is to be attracted and to grow. While there is evidence that this is happening, it needs to accelerate if the ambitious 2020 targets are to be achieved.” Dr Steve Griffiths, Research Director at Middle East Solar Industry Association (MESIA) adds: “Prior work by MESIA has shown that solar power has become commercially viable in the MENA region due to dramatic reductions in solar equipment costs, a good fit of solar resources with regional power demand patterns, and increasingly limited access to cheap hydrocarbons for power generation.

a big deal 44.5 GW will be added globally in 2014 In 2013, global investment in solar touched $102bn China added 12 GW of solar capacity in 2013 41,000 MW – Saudi Arabia’s solar energy target for 2030

Nonetheless, regional challenges exist for achieving widespread deployment of solar power, including lack of supportive policy frameworks, subsidies for fossil-based power generation and access to financing.” Opportunities for local industry development Apart from alleviating demand-supply gap and making a case for clean energy, solar power projects can also aid local value creation and employment opportunities. The Frost & Sullivan report concurs that implementation of solar power projects could result in a market potential of more than $50bn for local services and products such as mirrors, modules, Engineering Procurement

and Construction (EPC), and Electrical Balance of Plant (BOP). EPC services hold the highest localisation potential ($25bn), considering their higher dependence on manpower, which is mostly localised. Localisation potential of EPC services is followed by mirrors and components as a result of relatively cheaper access to land, power and manpower. The advantages of localisation are creation of employment, development of intellectual capital within the region, and development of core and allied industries of solar power systems. According to a study by International Renewable Energy Agency (IRENA) titled ‘Renewable Energy and Jobs’, currently, biofuels and solar PV provide the most jobs. By 2030, employment for all renewable energy technologies combined is projected to rise to approximately 16.7mn. One of the factors likely to contribute to the success of localisation in the value chain is adequate availability of funds such as public funds or fiscal incentives, which ensure policy driven support. The Frost & Sullivan report suggests regulations like Renewable Portfolio Standard (RPS) which mandates increased production of energy from renewable energy sources, such as wind, solar, biomass, and geothermal and in turn, ensure component availability and promote export trade. “There is a strong economic case for the renewable energy transition,” says Adnan Z Amin, Director-General, IRENA. “When considering climate change mitigation, health impact and job creation, the transition practically pays for itself. More renewables in the energy system provide greater flexibility, increase energy independence and make the system more resilient.” However, the adoption of renewable energy in the region is currently facing hindrances like decline in prices of oil & gas, insufficient commitment on the part of governments, insufficient local research and development on increasing energy efficiency, and intermittency and costly storage solutions.

“When considering climate change mitigation, health impact and job creation, the transition practically pays for itself” Adnan Z Amin, Director-General, International Renewable Energy Agency March 2014

INFRASTRUCTURE MIDDLE EAST

Event Middle East electricity

His Highness Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance and Industry of the UAE officially opened Middle East Electricity and Solar Middle East

The sparkling gateway The 39th edition of Middle East Electricity (MEE) puts the spotlight on Dubai as the passage to lucrative energy markets in the Middle East, Africa and Asia ver the years, Middle East Electricity (MEE), an annual highlight in Dubai’s industry events calendar, has transformed from a regional event centred around the power sector to become a global event with additional focus on lighting, renewables and nuclear energy sectors. “MEE is the world’s foremost energy event, but what makes us particularly unique is our

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March 2014

truly international participation with visitors coming from Europe, the Americas and Asia as well as the whole Middle East region,” said Anita Mathews, Director of Informa Energy Group, the event’s organisers. MEE is held under the patronage of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai. With the region’s power sector expected to grow at a rate of seven per cent over the next 10 years, the event has always attracted the biggest names in the global electrical industry. For the

2014 edition, top exhibitors included Cummins Power Generation, Al Fanar, FAMCO, Rittal, Larsen & Toubro, Ducab, Hyundai and Panasonic. “MENA power demand is booming, and billions of dollars’ worth of investments being pumped into the region’s power sector indicate lucrative opportunities for global players in the energy industry,” said Mathews. “This year, the show grew by 10% year-onyear in terms of exhibitor numbers.” The 39th edition of MEE, which ran from February 11-13 at the Dubai International

event middle east electricity

Convention and Exhibition Centre, also heralded a brand new initiative called ‘Future Generation Competition’ aimed at encouraging undergraduate students from UAE universities to develop and present innovative solutions focusing on alternative energy, energy efficiency and energy conservation. The winning project was voted by visitors. The UAE’s brightest engineering students showcased their talents to a global audience which also included a tidal power project by the first Emirati female engineers to come from the country’s Al Gharbia western region. The tidal prototype, created by Anood Al Hamadi and Aisha Al Hamadi, students of Higher Colleges of Technology (HCT), Ruwais, comprised an electricity generator, water pump and rotating turbines that simulate the energy created from ocean tides. The energy is then converted into 220 AC volts using a power distribution system, which is sufficient to power their model of a college building, featuring light fixtures and water fountains. “Tidal power is an endless source of energy and doesn’t produce greenhouse gases,” said Aisha Al Hamadi. “As 71% of the earth’s surface is covered by oceans, there is scope to generate tidal energy on a large scale, and its efficiency is around 80%, making it far more efficient than coal, solar, or wind energy.” Other shortlisted projects included a performance model for one of the world’s largest solar power plants, Shams 1 in Abu Dhabi, by Sara Al Hanaei and Sara Al Shomali of Khalifa University and two projects from Ajman University of Science and Technology in Fujairah - a solar powered water pump and storage system by Muna Dahir Ali and Mohammed Rehan and a wind-powered water lifting system by Zulfa A Rasheed, Amna Abdullah, and Muna Alia, with the latter winning the top honours. The second edition of Solar Middle East exhibition, co-located with MEE, attracted over 100 international manufacturers, suppliers and developers of solar related products and services eager to tap the region’s solar energy market, which is expected to exceed a combined output of 10 GW by 2017.

Power Personality of the Year H.E Abdulla Saif Al Nuaimi, Vice Chairman of TAQA and Advisor to ADWEA

Solar Project of the Year First Solar for Phase 1 Mohammed bin Rashid Al Maktoum Solar Park project

Emphasis on knowledge Over the past two years, the exhibition component has been supplemented by an expanding knowledge component driven by technical seminars and conferences. This year too there were two dedicated industry conferences - the Green Energy Conference, covering sustainability within the energy sector

and the Solar Middle East Conference, covering the delivery of solar projects in the Middle East. Eng. Abdullah Rafia, Assistant Director General of Dubai Municipality, delivered the inaugural keynote at the second edition of the Green Energy conference, presenting Dubai Municipality’s latest initiatives to reduce energy consumption by over 20% in the next

“This year, the show grew by 10% year-on-year in terms of exhibitor numbers.” Anita Mathews, Director of Informa Energy Group

March 2014

INFRASTRUCTURE MIDDLE EAST

Event Middle East electricity

Ajman University of Science and Technology’s windpowered water lifting system won the inaugural ‘future generation’ competition MEE 2014 FACTS • 39th Year • 1,250 exhibitors from 55 countries • 50,000 sq m of exhibition space • 22 country groups and national pavilions

Solar Middle East exhibition attracted over 100 international manufacturers, suppliers and developers of solar related products and services

three years and mandatory green building regulations for all new buildings effective from this year. Other expert speakers included Graeme Sims, Executive Director of Regulatory & Supervisory Bureau Dubai, Omar Al Wahaibi, CEO of the Electricity Holding Company Oman and Professor Gurkan Kumbaroglu, President, Turkish Association of Energy Economics (TRAEE) and the Vice President at the International Association of Energy Economics (IAEE).

Key speakers at Solar Middle East conference were Vahid Fouthi, President of Middle East Solar Industry Association, Timothy Kim, Senior Transaction Manager, Office of Renewable Energy and Environmental Finance, US Export-Import Bank, Steve Mercieca, CEO, Clean Energy Business Council, Marwan Abdulaziz, Executive Director Science Cluster, DuBiotech and EnPark and Dr Michael Kraemer, Senior Associate, Taylor Wessing; Board Member and Legal Counsel,

Emirates Solar Industry Association. At the third edition of the annual MEE Awards 2014, His Excellency Abdulla Saif Al Nuaimi, Vice Chairman of TAQA and Advisor to Abu Dhabi Water and Electricity Authority (ADWEA) was bestowed Power Personality of the Year award for his significant contribution to the region’s energy sector while His Excellency Hussain Nasser Lootah, Director General of Dubai Municipality was given the Green Champion of the Year award for pioneering a number of green initiatives in Dubai. MEE 2014 was supported by Abu Dhabi Water and Electricity Authority (ADWEA), Dubai Municipality, Emirates Green Building Council (EGBC), Society of Engineers-UAE, ECAT, Clean Energy Business Council (CEBC) and The Energy Institute (EI); Solar Middle East was supported by the above and additionally, Enpark, Middle East Solar Industry Association (MESIA), Saudi Arabia Solar Industry Association (SASIA), Global Solar Alliance and TAITRA.