Construction Week by ITP Business Publishing

SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT

Construction An ITP Business Publication

WEEK

CONSTRUCTIONWEEKONLINE.COM

SEP 26–OCT 2, 2009 [289]

NEWS, ANALYSIS, PROJECTS, TENDERS, CLASSIFIEDS, AND JOBS IN THE MIDDLE EAST

INSIDE FACE TO FACE

Great expectations for this week’s Cityscape Dubai PAGE 14

VIRTUAL

TRAINING COULD IT BE THE FUTURE?

TOP 10 PROJECTS

The biggest projects currently underway in Saudi Arabia PAGE 24

HOW TO

Experts reveal the best way to reduce carbon footprints

C O M PA

GERM

PAGE 38

CITY UPDATE SP

ECIAL

The latest news and projects from Yanbu, Saudi Arabia PAGE 52

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CONTENTS SEPTEMBER 26-OCTOBER 2, 2009 | ISSUE 289 7

FEATURES 24 TOP TEN CW identiﬁes 10 mega projects in Saudi Arabia.

27 SPECIAL REPORT Experts ﬁll us in on how the downturn is affecting German companies operating in the Gulf.

38 HOW TO CW takes a look at the best ways to reduce your carbon footprint.

CHUNG SUNG-JUN/GETTY IMAGES

DIRECTORY 44 SHOWCASE 46 TENDERS 47 PROJECTS 48 SPECIALIST SERVICES

REGULARS 2 ONLINE 4 MAIL

FRONT 7 A STRANGE WEEK OF TURNAROUNDS FOR CITYSCAPE CW reports on how major companies pulled out of Cityscape Dubai at the beginning of last week, only to change their decisions two days later.

9 KOREA DISCOVERS MIDDLE EAST SUCCESS A revival in Middle East factory demand has seen the region “re-emerge as a goldmine” for specialist South Korean construction companies.

10 NEWS IN BRIEF

14 NEWS ANALYSIS Can the answer to lowering on-site incidents lie in virtual reality?

17 FACE TO FACE Industry experts discuss their thoughts on current industry affairs.

52 CITY UPDATE

19 EVENTS Industry dates for your diary.

The latest news and projects from Yanbu, Saudi Arabia.

20 COMMENT

54 CONSTRUCT SAFE

Sheriff Hashem sheds some light on the importance of portfolio management during the ﬁnancial crisis.

The industry’s very own comic strip on health and safety best practices.

56 DIALOGUE

Highlights of the week.

12 NEWS IN PICS Topical images with the latest news.

BACK

22 LEGAL Scott Aitken discusses the new laws of procurement procedures in Abu Dhabi.

Al Fara’a Properties’ Natasha Gangaramani discusses the status of her company’s projects.

SEPTEMBER 26–OCTOBER 2, 2009 CONSTRUCTION WEEK

ONLINE

www.ConstructionWEEKonline.com MOST POPULAR

REPORT: UAE CONSTRUCTION SUFFERING THE MOST IN GCC EMAAR TO STAY OUT OF CITYSCAPE DUBAI KUWAIT SIGNS US $2.65 BILLION POWER CONTRACT OMAN ISSUES US $480 MILLION WORTH OF TENDERS DAMAC AWARDS THREE TENDERS IN DUBAI AND ABU DHABI

HAVE YOUR SAY

WHAT DO YOU THINK THE MOOD IS GOING TO BE LIKE AT CITYSCAPE DUBAI? Are you positive or pessimistic about the local real estate industry?

JOBS OF THE WEEK IN PICTURES: TOOTHPICK TOWERS AND TEMPLES Stan Munro is an American artist with an unusual skill – the ability to construct models of real-world buildings entirely out of toothpicks. His Toothpick City II: Towers and Temples project is currently under construction and contains some of the most notable buildings in the Middle East including the Burj Dubai. See more images atwww.ConstructionWeekOnline.com

MEP

Design

FIRST PRINCIPLES Richard Smith from Atkins on what makes a “winning ﬁrm.”

Q&A NAZNEEN SABAVALA Designing rooms without roofs. Architect

STRENGTH IN DEPTH MAF Dalkia CEO on market opportunities.

ONLINE POLL ARE YOUSTILL CONCERNED ABOUT LEED COMPLIANT PROJECTS?

50.0% 25.0% 25.0%

Yes, they’re a vital way of attracting new business and interest

FEATURES

Senior QA/QC Engineers, Doha,Qatar Construction Director, Dubai General Manager, Kuwait

WEAVE BRIDGE Arup’s new bridge spanning railway lines.

CONSTRUCTION WEEK SEPTEMBER 26–OCTOBER 2, 2009

Of course, just because times are tight doesn’t mean we can neglect the environment

No way, we need to concentrate on cutting costs rather than pandering to the ‘green’ lobby

TO VOTE IN THIS WEEK’S SPOT POLL GO TO www.ConstructionWEEKonline.com

MAIL operator was scared of the engineer’s aggression, but he should not have taken the law into his own hands. In any case, engineers deﬁnitely need to exercise diplomacy while communicating with their subordinates.

an unprecedented urge to prevent injury or death.

JAGANNATHA

The vital question is where are the real estate buyers now? They’re vital players who will reactivate massive construction business opportunities.

The crane operator was right not to execute a job, which is dangerous or endangers the life of others. Secondly, why did the engineer climb the tower crane? I am sure it was not for exchanging pleasantries. However, any crime should be dealt as per the laws of the country. MB SUSAIL

ADRIAAN VENTER

RE: REPORT: UAE CONSTRUCTION SUFFERING THE MOST IN GCC

BRUNO F MONTERO

It’s okay looking at cancelled or on hold projects, but, to my knowledge, the place that is promoting new projects at the moment is Abu Dhabi. MARK KERR

RE: WHAT WILL BE THE METRO EFFECT? A big applause should go to the Dubai Government for launching the metro on time. However, I feel that most of the newly developed areas need to be connected to the metro system as these are going to be where almost 50% of Dubai’s population is going to live in the future. And, with a proper lack of public transport system in these areas, there is a risk that congestion will be created.

CLARENCE S LEWIS

RE: DISCOVERY OWNERS IN SERVICE CHARGE PROTEST

RE: CRANE FIGHT FATALITY DRAWS BIG RESPONSE

I have a problem with my door lock and have been complaining about it since February. Still nothing has been done. There is no security provided in the building either.

The victim and the accused failed to follow the right protocol of communication and discipline action. If an engineer thinks he is superior then he has to discipline the operator instead of climbing the crane. Maybe the

MUKUL JOSHI DG

RE: TENDERS OUT SOON SAYS AL FARA’A The Dubai property market still need a few more years to digest the available units rather than adding to the problem. Inventors should stop building any new residential or commercial projects and rather focus on Industrial and other sectors of the economy. I don’t see these announcements as good news. The government should encourage other sectors of economy to grow at this stage. HASSAN

RE: MOVE INTO THIRD GEAR Attitude is the main buzzword in safety; it is the psychological condition of a person that determines how he/she may react. All right-minded people have

RE: SEVERE NEED FOR SAUDI WASTE SOLUTION Having lived and worked in the GCC and having been actively involved in waste management and recycling, I feel that Saudi Arabia has a long way to go until recycling is accepted. It’s not that it can’t be done but people need to be educated. There is no quick ﬁx and it will be a long hard battle. PHIL FINLAY

I have spent 25 years in Germany and learned to understand why the Germans are number one in waste management. I have seen their waste powered power plants and the many products, resources and jobs that waste can create or provide. TIMOTHY TATE

WRITE TO THE EDITOR Please address your letters to: Post, Construction Week, PO Box 500024, Dubai, UAE or email editor@ConstructionWeekOnline.com. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest Middle East business articles. The opinions expressed in this section are of particular individuals and are in no way a reﬂection of the publisher’s views.

CONSTRUCTION WEEK SEPTEMBER 26–OCTOBER 2, 2009

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>News in brief >News in pictures

>News Analysis

>Face to Face

NEMANJA SESLIJA/ITP IMAGES

FRONT

>Green line to see six month delay

NAKHEEL AND EMAAR HAVE BOTH MADE U-TURNS AND DECIDED TO PARTICIPATE AT CITYSCAPE NEXT MONTH AFTER ANNOUNCING THEIR DROPPING OUT.

A STRANGE WEEK OF SNUBS AND TURNAROUNDS FOR CITYSCAPE By Matt Warnock

It was a curious week for Cityscape Dubai, one of the region’s biggest events for the development and construction trades. The eighth edition starts on October 5 but Construction Week discovered that neither Nakheel nor Emaar – developers behind projects such as The Palm and Burj Dubai respectively – were due to exhibit. In a statement to Construction Week, Emaar explained that it was concentrating on completing projects and “as such, we have taken a strategic decision not to participate in Cityscape 2009, but will evaluate our participation in Cityscape 2010 based on our objectives, strategy and announcements next year”. Nakheel followed suit: “After careful consideration, Nakheel has decided it will not participate in Cityscape Dubai 2009. Nakheel is determined it was more prudent to focus on property handovers on several of its developments that are close to completion.” However, just two days later, both developers made u-turns with Nakheel now “exhibiting

communal properties on several of its developments that are close to completion…following discussions with various industry stakeholders, including partners and the leading event’s organisers.” Emaar also changed its decision after “discussions with the various agencies involved in organising the event.” Meanwhile, Dubai Properties Group, another of the emirate’s biggest development players with projects including Remraam, The Tiger Woods Dubai and Dubailand, conﬁrmed that it would be displaying at the exhibition. “DPG looks forward to participating in this year’s event,” said Group CEO Khalid Al Malik. “Our participation at Cityscape Dubai 2009 not only allows us to showcase the diversity of our projects, but also to demonstrate the tremendous progress we have achieved in delivering a remarkable number of unique communities in 2009, all contributing to the growth of Dubai.”

Limitless – part of the Dubai World group and the developer behind the Arabian Canal and Downtown Jebel Ali, however, said that it would not be exhibiting. “We continue to support the event and will participate in the Green Day conference on October 7, where we will share our thoughts on environmental sustainability,” said corporate media relations manager Rebecca Rees. “The decision also applies to other exhibitions at which we have previously been present,” she added. In spite of the no-shows and uncertainty surrounding Cityscape, organisers remained conﬁdent. “Thousands of participants from more than 100 countries throughout the world have already registered to attend. “They are serious players searching for speciﬁc answers, which is why Cityscape Dubai 2009 is embracing realism and transparency,” said Cityscape group director Chris Speller.

SEPTEMBER 26–OCTOBER 2, 2009 CONSTRUCTION WEEK

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FRONT TENDERS OUT SAYS AL FARA’A

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By Sarah Blackman

EXCAVATORS AT HYUNDAI HEAVY INDUSTRIES IN ULSAN, SOUTH KOREA WAITING TO BE HIRED OUT AGAIN.

KOREAN CONTRACTORS SEE MIDDLE EAST SUCCESS By Matt Warnock A revival in Middle East factory demand has seen the region “re-emerge as a goldmine” for specialist South Korean construction companies, according to the Korean Plant Industries Association (Kopia). “Performances of Korean companies have got back on track in Middle Eastern countries over the last two months,” a Kopia spokesperson told Korea Times last week, after the country’s contractors won orders worth US $9.6 billion (AED35 billion) in July and August – up $1.6 billion in the same period last year. During H1 2009, Arab orders with Korean construction companies fell 55% year-on-year. But, this week, Doosan Heavy Industries and Construction, along with local partner Bemco, received the $1 billion contract to build The

Qurayyah Combined Cycle Thermal Power Plant near Dammam, KSA, having scored a $249 million order for another Saudi power plant earlier in the month. “The acquisition of this order attests to international recognition for Doosan’s strong technological capacity and the ability to conduct projects, which we demonstrated through power plant projects overseas, including in the Middle East and India, in recent years,” said Doosan Heavy Industries and Construction executive VP Dongsoo Suh. “Saudi Arabia, which is suffering from serious power shortages, has ample funds thanks to recent spikes in oil prices and is aggressively pushing for the construction of new power plants.”

Al Fara’a Properties has revealed that two of its projects could be out to tender by the end of 2009. “Bellatora Residences, in Dubai Maritime City, and Image Residences, in Downtown Jebel Ali, are very close to tender and are in the last stages of design,” director Natasha Gangaramani said. She also revealed that the company’s two Jumeirah Village projects, Mulberry Mansions and Manhattan Luxury Apartments, were under construction and on track for completion by the last quarter of 2010. “Construction on Mulberry Mansions began two months ago, while Manhattan has been under construction for the past eight months and has reached the ﬁrst ﬂoor. This project has three basements, so it took a while to come above ground,” said Gangaramani. The company’s 40-storey Burj Al Fara’a tower, also in Jumeirah Village is due to commence construction in the coming months.

METRO GREEN LINE TO SUFFER SIX MONTH SETBACK By Matt Warnock Dubai Metro faces future delays with work on its second line running six months behind schedule, according to the Roads & Transport Authority’s (RTA) chief executive ofﬁcer Abdul Majid Al Khaja. RTA chairman Mattar Al Tayer last month stated that the 34km green line would be launched in June, already three months behind schedule. However, Al Khaja said this week: “We are currently discussing with the contractor... chances are that it will be opened by the end of 2010 based on contractors’ requirements.” He later explained that this was because the contractor was “unable to complete the work due to changes and

an extension in the length of the line”. The original plans for the green line saw it running 17km through the city’s older districts, Bur Dubai and Deira; but this distance was increased to link Dubai Healthcare City with Al Jaddaf. A further extension plan could see the green line reach as far as International City. Only 10 of the 29 red line stations for Dubai Metro were completed in time for the launch on September 9, with the remaining stations scheduled for a February opening. Al Khaja conceded that this deadline was also unlikely to be met. Although some stations may be open by February, the full line will not be operational until May, he added.

SEPTEMBER 26–OCTOBER 2, 2009 CONSTRUCTION WEEK

FRONT HIGHLIGHTS IRAQ

UAE

JORDAN

UAE

DUBAI FIRM WINS US $85MN DEAL TO BUILD IRAQI PLANT Dubai-based Uruk Engineering has been awarded a US $85 million (AED312 million) contract to build a 160MW power plant north of the Iraqi capital, Baghdad. The deal was awarded by Iraq’s Electricity Ministry, and Uruk is to complete the plant in about 15 months’ time. Iraq has recommended that Canada’s SNC-Lavalin should be awarded a $86 million contract to build another power plant at Hilla. Another tender has also been launched to build a similar station in the country’s Karbala area.

PROFITS UP FOR STEEL SPECIALIST Jebel Ali Free Zone-based steel manufacturer, Fabtech International, has announced a 24% revenue growth for last year. “Our outstanding engineering capabilities and commitment to deliver efﬁcient solutions to our clients have helped us achieve double digit growth even this year when the industrial engineering sector is going through a tough time,” said Fabtech International chairman Dr Harry Moreas. Over the past 12 months, the company also built and delivered the world’s biggest Kangaroo crane, which was ordered by Qatar Petroleum.

HALCROW TO EASE AMMAN’S WATER SHORTAGE Halcrow has been appointed engineer for Jordan’s US $1 billion water conveyance system. Jordan is among the ten most water-scarce countries in the world and city residents are subject to severe water restrictions. The 325km pipeline project aims to provide around 30% of Amman’s water needs. “This is a great win for Halcrow,” said regional director for water and power, Philip Bourne. “This project will keep us busy for a number of years and will help raise our proﬁle as a leader in the search for solutions to the global water resource crisis.”

HOTEL CONSTRUCTION PIPELINE STILL THRIVING There are currently 468 hotels in the development pipeline in Mena, according to the latest figures from the STR Global Construction Pipeline Report. In the Middle East, the UAE has four times the number of projects in construction as its closest rival, Saudi Arabia. “With 54 projects currently being built in Dubai alone, they are poised to be a major factor in the pipeline for years to come,” said STR VP Duane Vinson. More than a quarter of hotels in the construction pipeline are classified ‘luxury’, with 21.2% ‘upscale’, 17.2% ‘upper upscale’ and 24.3% ‘unaffiliated’.

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NEWS IN PICS RIGHT: Emirates Steel Industries signed a US $474 million contract with Italy-based Danieli Corporation for the construction of phase II B of the company’s overall $2.45 billion expansion plan. Danieli will be responsible for construction of a heavy section rolling mill with a production capacity of 1 million tonnes per year. Emirates Steel Industries factory in Abu Dhabi is pictured. RIGHT MIDDLE: Dubai Metro could soon link up to its neighbouring cities of Sharjah and Abu Dhabi, which is already planning its own metro system. Mattar Al Tayer, chairman for the Roads and Transport Authority conﬁrmed that a federal body was looking into the issue. “Transport between the emirates is a federal issue. A separate authority has been set up to look into ways of connecting all the emirates,” he said.

LEILA CRANSWICK/ITP IMAGES

RIGHT BOTTOM: One of the world’s highest public observation decks, At The Top - located on level 124 of the Burj Dubai, is scheduled to open within the next three months according to the tower’s developer, Emaar Properties. Thomas Dempsey, General Manager, Burj Dubai, says “The At The Top experience will be the high point – both literally and ﬁguratively – for anyone visiting Dubai once we open doors later this year,” he added.

KHALED TERMANINI/ITP IMAGES

THANOS LAZOPOULOS/ITP IMAGES

BELOW: Stargate, a futuristic edutainment centre in Dubai will officially open in November, it has been announced. The US $122 million (AED450 million) project, located at Zabeel Park is expected to attract three million visitors in the first year of operation. The development has taken over four years to complete and this month the media were invited to take a tour around the project as part of the centre’s “soft opening”. The project is designed as a spaceship, covering three floors with an area of 37,161m2. Attractions include a family rollercoaster, a go-karting track and an ice rink (pictured).

CONSTRUCTION WEEK SEPTEMBER 26–OCTOBER 2, 2009

ANALYSIS Simulation innovation CAN THE ANSWER TO LOWERING ON-SITE INCIDENTS WHILE ALSO INCREASING COST EFFECTIVENESS REALLY LIE IN VIRTUAL REALITY? By Matt Warnock

Recent figures from Build Safe show that the numbers of fatalities and serious injuries occurring on the construction sites of the Middle East is finally dropping. But is this through new safety practices, extra attention to detail or merely dumb luck? And how can these numbers, still well above global averages, be lowered even further? The answer, of course, lies in training. You would rightly consider it madness if Etihad, Emirates or Gulf Air allowed untrained pilots to make their debut flights in actual A380s; yet most construction workers are actors who operate in different roles sent on to vast, hazardous sites after, in many through five different levels of the simulacases, little more than a short briefing and tor experience. “Using proven technology, the centre allows a flick through a safety manual. construction managers to test Michiel Schrijver may have the solution. and develop their technical “PEOPLE FORGET He is the owner of and people skills in a safe, THEY ARE IN the Building Mancontrolled environment which A TRAINING agement Simulation is powerfully realistic. The SITUATION AND BECOME IMMERSED” Centre (BMSC) in the simulation is so authentic Netherlands and has that people forget they are now launched ACT-UK, the world’s sec- in a training situation and become fully ond virtual reality construction training immersed in the challenge of managing centre in the UK. the virtual site,” he says. “There are three elements,” he explains. Impressive and technologically extraor“First, the whole site is projected on to a dinary it may be, but what does that transhuge screen. It’s immersive and you can late to for construction companies using interact with it like real life. For example, the simulator? “Our ten years of proven experience in the if you want to go and take a look around Netherlands shows a 90% drop in incident the 45th floor, that’s possible. “The second part is a site office, where con- levels,” says Schrijver. struction staff can learn to project manage. But even hard-nosed employers who care There are all the drawings, documents and more about bottom lines than employee facilities you’d normally find – even working safety may warm to virtual reality trainphones and faxes, so you can actually speak ing: “Then there’s a cost reduction of 10%, to suppliers or other contractors.” a quality improvement of 20% and a Finally and, according to Schrijver, most staffing quality boost of 100%, as all importantly, there are the 90 trained employees really enjoy using the technology.

CONSTRUCTION WEEK SEPTEMBER 26–OCTOBER 2, 2009

UAE 2008 INCIDENT STATS - BSU • 20 fatalities • 690 lost time injuries • 288 projects • 296,093 construction workers • 872,485,818 man hours worked

> For the latest analysis log on to www.ConstructionWEEKonline.com

FAR LEFT: BALFOUR BEATTY TRAINEES TAKE PART IN THE VIRTUAL REALITY SIMULATION TRAINING. LEFT: THE SIMULATION CONTROL ROOM AT THE MULTI-MILLION DOLLAR ACT-UK CENTRE. BELOW: A 3-D LOOK AT TRAINING. PARTICIPANTS EVALUATE THE SIMULATED SITUATION.

MAIN LOST TIME INJURY CAUSES 15% using tools 12% falls from height 11% slips or trips 10% handling materials 9% falling objects 5% contact with machinery

We’re certain that ACT-UK will produce similar improvements.” Schrijver maintains that, given its generally poor record in health, safety and training, the GCC would be the perfect place to next introduce a simulation centre. “The scale of construction in the Middle and Far East is really interesting. We only offer a few ‘standard’ courses, the rest are all bespoke, so we can even design them to meet challenges speciﬁc to each region.”

He concedes that the outlay may be a stick- this type of training will be standard in ing point for some, but larger companies the industry. Normally you have people will look at it as an investment in safety, talking to you within a group exercise – I quality and, ultimately, more cost effective liked that you are working on your own. I’d project management. never really thought before about the type of “We’d generally look for investors or person I am and that I can use my passion, authorities to work with in new regions imagination and power. The supervisors – the ACT-UK simulator centre cost almost and actors showed me new ways to work US$14.6m – but larger contracting ﬁrms may and new ways to manage people.” consider setting up their own centre. CH Construct’s Charlotte Hassey thinks ACT-UK worked with global construction that virtual reality simulation centres could giant Balfour Beatty on this pilot project and work in the GCC. “The industry in this the results appear to have impressed. region needs to continually look for ways “This takes our development and training of improving its training methods and this to a different level,” said HR director for sort of experience seems like a logical proBalfour Beatty Construction Scottish and gression,” she says. “As a company, nothing is more important Southern, UK, Adam Parker. “Using VR enables us to put our trainee to us than the safety of our employees; we’ve project managers in a live environment an exemplary health and safety record and without exposing them to any risks. This we’d fully examine any method of keeping kind of cutting-edge training also makes us our workers safer. a very attractive proposition for graduates “Perhaps regional authorities or several looking to come into companies could become the industry.” partners in creating a state“IN THE NEXT 10 OR Balfour Beatty subof-the-art training centre 20 YEARS, THIS TYPE agent, Dariusz Mruworthy of the incredible OF TRAINING WILL gala, agreed: “In the projects being erected in the BE STANDARD IN next 10 or 20 years THE INDUSTRY” Middle East.” 

SEPTEMBER 26–OCTOBER 2, 2009 CONSTRUCTION WEEK

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FACE-TO-FACE EXPECTATIONS AT CITYSCAPE DUBAI THIS WEEK

AJU SHARFUDDIN

ANI RAY

corporate HSE manager, Civilco, Abu Dhabi

country director, Simplex Infrastructure, Dubai

WHAT DO YOU EXPECT FROM CITYSCAPE THIS YEAR? I am hoping that the event will bring about a big change to the market situation. But that will depend on many things; they need to stategise at this stage and begin to formulate new ways of conducting business.

Honestly, not much if the same format for the exhibition is going to be repeated – it was a glitterati extravaganza in the boom days. The focus and shape needs to change with time and according to the current situation.

ARE YOU PARTICIPATING? We have not decided as yet. I think we’ll visit the show just to check out the opportunities but I doubt we’ll pick up any business.

No, these days are meant to deliver the real project, and judicious spending of time and money, are absolutely necessary.

COULD WHAT HAPPENS AT CITYSCAPE THIS YEAR, BE AN INDICATION OF THINGS TO COME? Deﬁnitely, the health of the real estate industry is going to be revealed at Cityscape Dubai. It has been the central point for the construction and real estate industries for many years now and this year, it is being watched even more.

Absolutely, Cityscape Dubai is the real estate industry’s main exhibition and any sector’s position is reﬂected by the leading exhibition in that industry. So what will come out of it is going to be realistic.

DO YOU THINK THERE WILL BE ANY NEW PROJECTS LAUNCHED AT THE EVENT? I don’t think many projects are going to be launched at the exhibition this year, but many projects are planned and down on paper and I believe it will take time. We’ve been in discussion with many developers and they all say they’ve got projects that they’ve got planned, but which are on hold for now.

In the present scenario traditional launches are unlikely, but there is always a niche product and a niche market. I expect new destinations (niche real estate markets) to come up, which were earlier eclipsed by bigger launches. Even old projects have the potential to be relaunched with proper value addition, based on new market reality and market research.

ARE YOU LOOKING FORWARD TO IT? Yes, badly. Like many people, it’s mostly my curiosity to see the state of the market and how people are reacting to the current downturn. Like I said earlier, the show will reveal everything there is to reveal of the real estate and construction industries. Market forces are at play here so what comes out of the show, will be the full truth. The show is a window to the real market situation.

Surely, in this scenario I expect intelligent developers to redo their homework and launch proper projects with finance tie-ups. Even for financial institutions, I see a major opportunity to launch new home finance schemes, eg: say a buyer who has already paid 50% of the value, may still require a balance financing based on the current situation, and as lender, finance companies should have negligible risks towards them.

DO YOU THINK ITS TIME TO FOCUS ON ABU DHABI NOW? There has never been a better time to focus outside of Dubai, if you ask me. We are based in Abu Dhabi and we already have three to four projects currently underway, with some more under negotiation. Logically, Abu Dhabi also has more scope for work simply because it is bigger.

Surely, with the present demand-supply gap and economic point, the Abu Dhabi market is more resilient. However, the present pricing gap can’t continue, as eventually, both markets will come to some sort of equilibrium leading to minor pricing difference. But the Abu Dhabi construction market will maintain its momentum.

SEPTEMBER 26–OCTOBER 2, 2009 CONSTRUCTION WEEK

EVENTS

Event: Building Sustainability into the Middle East Overview: Construction Week has merged the Building Sustainability into the Middle East conference, and the GreenBuilding training series in order to offer strategic insight and practical learning in one exhibition. Date: October 25-26 Venue: Crowne Plaza Hotel, Abu Dhabi Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.constructionweekonline. com/conferences Event: Construction Week Dubai Conference Overview: A one day event with two streams running concurrently covering the vital aspects of construction and real estate. Date: November 3 Venue: Rafﬂes Hotel, Dubai Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.constructionweekonline. com/conferences

Event focus

MEP CONFERENCE KUWAIT DATE: OCTOBER 28 VENUE: RADISSON SAS, KUWAIT CITY PHONE: +971 4 435 6127 EMAIL: OSCAR.WENDEL@ITP.COM WEBSITE: WWW.CONSTRUCTIONWEEKONLINE. COM/CONFERENCES This conference aims to shine the spot-light on Kuwait and will discuss projects such as the challenges of engaging with Kuwait developers; current projects and future opportunities; the technology required now and in the future; and the long term plans for the country and how these will impact on the operations. The strong designs coming from the architects table of the City of Silk, Al Hamra Tower and Project Kuwait are becoming a reality, which offers an incentive for MEP companies to either re-locate or set up new ofﬁces in Kuwait. 

Event: Middle East Architect Awards Overview: The Middle East Architect awards are an opportunity for the industry to come together and toast exceptional performance in architecture, engineering and design. The awards recognise both regional and international architects and engineers who have made signiﬁcant contributions to

the development of the Gulf. Award categories include overall project of the year, restoration/ conservation project of the year, green project of the year, mixed- used development of the year and infrastructure project of the year. Date: September 30 Venue: The Westin, Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.constructionweekonline.com/meaa

Event: Construction Week Awards 2009 Overview: In its 5th year, the Construction Week Awards 2009 will celebrate excellence in the construction industry and exceptional performance in 15 key areas of the sector, with nominations open to contractors, developers and consultants working in the Middle East. Award categories include project manager of the year, construction manager of the year, sustainable project of the year and developer of the year among others. Date: November 4 Location: Grand Hyatt, Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.constructionweekonline. com/cwawards Event: Construction Week India Conference Overview: This event is designed to equip individuals to identify project risks and implement risk mitigating processes that can be integrated into the entire construction process which will be essential in the transformation of Indian cities. Date: November 11-12 Location: New Delhi Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.constructionweekonline. com/conferences Event: CID Awards 2009 Overview: This year’s CID Awards will celebrate the success of the Middle East design industry and demonstrate how the region’s sector can stand alongside its international peers. Date: November 15 Venue: Park Hyatt, Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.constructionweekonline. com/cidawards

Event: Build Smart 2009 Overview: Build Smart 2009 will present solutions, new technologies and best practice for improving efficiency and productivity during project development. But, the main focus at the event will be the official launch of new association, Building Smart Middle East. It will demonstrate that by establishing standards for the construction industry, Building Smart can facilitate improvements in profitability and sustainability in the region. Building Smart will eventually operate throughout the Middle East, as well as North Africa, as a not-forprofit organisation. Date: November 15-16 Venue: Yas Hotel, Abu Dhabi Website: www.itp.net/events/buildsmart Event: MEP Awards Date: December 9 Venue: The Westin, Dubai Phone: +971 4 435 6133 Email: annie.chinoy@itp.com Website: www.constructionweekonline. com/mepawards Event: Construction Week North Africa Conference. Overview: This Construction Week conference will provide a firm basis for all interested parties to come together and share their experience of the economic renaissance in North Africa. Date: December 17 Venue: Intercontinental Hotel, Cairo Phone: +971 4 435 6127 Email: oscar.wendel@itp.com Website: www.constructionweekonline. com/conferences Event: Cityscape Dubai Overview: International property and development event. Date: October 5-8 Venue: Dubai International Exhibition Centre Phone: +971 4 332 1000 Website: www.eventseye.com Event: International Symposium on Architectural Membranes Overview: The workshop will address the theoretical bases for structural analysis necessary for computer implementation. Date: October 14-15 Venue: American Univeristy in Dubai Website: http://isam-dubai.web.officelive. com/about.aspx Event: The Big 5 Overview: Big 5 is the annual meeting place for all industry professionals. Over 58,000 key buyers and decision makers from the public and private sectors attended the 2008 event. Date: November 23-26 Venue: Dubai World Trade Centre Phone: +971 4 438 0355 Website: www.thebig5exhibition.com

SEPTEMBER 26–OCTOBER 2, 2009 CONSTRUCTION WEEK

COMMENT

Portfolio management: navigating through the crisis SHERIFF HASHEM SHEDS SOME LIGHT ON THE IMPORTANCE OF PORTFOLIO MANAGEMENT DURING THE FINANCIAL CRISIS

“PORTFOLIO MANAGEMENT IS ABOUT DOING THE RIGHT WORK, RATHER THAN DOING THE WORK RIGHT”

Hashem is an associate director at WSP Middle East and has over 23 years of experience in implementation of major international civil engineering projects in Europe, Asia and the Middle East. He has had several papers published on project management in the USA, Brazil and the UAE, and is a formal contributor and final draft reviewer of PMI’s project, programme and portfolio management global standards.

The opinions expressed in this column are of the author and not of the publisher.

It all started in October 2008, at the eve of the current global financial crisis. At the time I was participating in PMI’s Global Congress 2008 held in Denver, USA, when the concept of portfolio management jumped into my mind as the way forward for organisations to navigate through the current global financial crisis and emerge as a stronger business, with a management edge over competitors. When signals of the subprime mortgage crisis were first reported in the US in July 2007, the world watched from a distance, assuming that the problem would remain local to the US, and that the government would deal with it by applying common macroeconomic theories and policies. The crisis, however, persisted and continued to grow into 2008. All of a sudden, in September 2008, a financial “big bang” rocked the world with news of conservatorship [external control], collapse and bankruptcy of several major US-based financial firms. Before the world knew it, the financial problem spread worldwide. That put the global construction sector into an unprecedented state of panic, and the Middle East was no exception. The crisis was substantial, and so was the global response. Governments announced the injection of huge stimulus packages into markets. Financial institutions enhanced protective measures. Developers and real estate investors implemented instant go/ no-go decisions on current and planned investment initiatives. This initial response at various levels helped markets absorb the initial shock by reducing stake. However it is not enough, and nor is the end of the story. Now that the dust has settled, project organisations need to reconsider their ways of doing business. The crisis has rocked the marketplace, changing its characteristics

CONSTRUCTION WEEK SEPTEMBER 26–OCTOBER 2, 2009

and bringing back to life harsh principles such as “survival of the fittest.” Resources have been reduced due to the crisis, creating the need to decline projects that are good, but not good enough, focusing available resources on projects with the highest return on investment, and managing the same in a controlled, effective and efficient manner. To accomplish this objective, project organisations need to deploy an integrated project management system of the capacity to govern and influence the process and achieve business objectives. One of the best integrated project management platforms is that published by PMI through its series of complementary project management global standards. The first is the ‘Project Management Body of Knowledge – Guide’ addressing management of single projects. The second is the ‘Standard for Programme Management’ addressing the management of a number of interdependent projects together. The third is the strategic ‘Standard for Portfolio Management’ which covers managing project portfolios consisting of a combination of projects and programmes. Portfolio management is about “doing the right work” rather than “doing the work right”. It links strategy to operations. Organisations that do not use portfolio management run the risk that misaligned or low return on investment initiatives get through and consume valuable corporate resources. It comprises a set of interactive management processes that facilitate informed decision making. The subject processes aggregate into two interdependent portfolio management process groups, namely, Aligning Process Group, and the Monitoring and Controlling Process Group. Basic inputs required to initiate the portfolio

> For the latest news and comments log on to www.ConstructionWEEKonline.com/comment

management process include a working business strategy identifying predefined performance metrics, such as key performance indicators, return on investments and critical success factors; economic and technical constraints; strategic objectives such as expansion and diversity; and a list of candidate investment projects. The aligning process group is concerned with ensuring that out of the candidate investment projects only the most efficient get through. Candidate investment projects get subjected to a sequential set of portfolio management processes, namely: categorise projects, evaluation projects, select projects, identify portfolio risks, analyse portfolio risks, prioritise projects, develop portfolio risk responses, balance portfolio, communicate portfolio adjustment, and finally authorise projects, which generates a final list of approved projects. Project portfolio is then reviewed to identify cases of project interdependency which permit implementation of certain project groups as programs under the portfolio.

The output of the aligning process group second is review and report portfolio pertakes the form of a working procurement formance that gathers and reports portfolio strategy addressing reference business compliance with predefined metrics thus strategy; portfolio layout including sub- ensuring compliance with business strategy portfolios, programmes, and projects; port- and effective resource utilisation. folio components; constraints; a high level The third and last process is monitor portfolio timeline; budget allocation; and business strategy changes which enables detailed feasibility information for fund- the portfolio management to respond to significant changes in the business environing purposes. The monitoring and controlling pro- ment which often results in a new strategic cess group is concerned with managing direction, thereby impacting the portfolio portfolio risk, ensuring that the portfolio and its components. Adopting portfolio management is a major is performing to achieve the predefined metrics. Monitoring and controlling may business decision that requires top manproceed by portfolio category, or merely agement vision and commitment. It is the across the entire portfolio. The monitoring most important accomplishment any senior and controlling process group consists of executive team can strive for, and it pays three processes. off in optimised The first is monitor and well-conand control portfolio “PROJECT ORGANISATIONS trolled operarisks which estab- NEED TO DEPLOY AN tions leading to lishes and imple- INTEGRATED PROJECT growth, increased ments a portfolio MANAGEMENT SYSTEM OF THE profit and long term business risk management CAPACITY TO GOVERN AND sustainability. programme. The INFLUENCE THE PROCESS”

LEGAL > For more legal advice log on to www.ConstructionWEEKonline.com/comment

Procurement in Abu Dhabi SCOTT AITKEN DISCUSSES THE NEW LAWS OF PROCUREMENT PROCEDURES IN ABU DHABI AND HOW THEY AFFECT ALL PARTIES INVOLVED

“THE ABU DHABI GOVERNMENT INTENDS TO PUBLISH NEW REGULATIONS CREATING A CODE OF BEST PRACTICE”

Aitken is a partner at Abu Dhabi’s Clyde & Co office. The focus of his practise is providing property development and legal structuring advice to owners, operators and financiers regarding retail, commercial, industrial and international hotel developments. Prior to coming to the UAE, Aitken was involved in a number of transactions for the Sydney Olympic Park Authority. He has also acted for a number of leading developers including Stockland and Multiplex.

The opinions expressed in this column are of the author and not of the publisher.

Enhancements to Abu Dhabi’s legislation on public tendering processes commenced last year with the passing of Law No (6) of 2008, procurements, tenders, bids and warehouses for Abu Dhabi. In part, the aims of the new law are to: • decentralise procurement processes of government departments • develop balanced and modern management methods particularly in the delegation of authorities to the private sector and • simplify, facilitate and accelerate the execution of procurement stages whilst retaining the highest levels of transparency, fairness and value for money. To achieve these aims, the Abu Dhabi government intends to publish new regulations creating a code of best practice. These regulations will set out procedures, which government departments will be required to follow when contracting with the private sector for the provision of services, work contracts and transportation contracts. Modern management methodologies While we wait for the new regulations, it may be helpful to consider procurement processes elsewhere, including: • the relevant arm of a government identifies a particular procurement need (“the Project”). Subsequently, there is an internal administrative sign-off and commitment from the government to procure the carrying out of that project. • the government determines the criteria by which tenders will be assessed – for example, costs or financial return, design, time table for delivery, reputation and reliability. Each such criterion will be weighed depending on its importance to the project. The government will also decide the stages of the tendering process by assessing the size and significance of the project and the likely level of interest from the private sector. It is common to include the following steps: i) calls for expressions of interest ii) request for proposals iii) submissions of best and final offers

CONSTRUCTION WEEK SEPTEMBER 26–OCTOBER 2, 2009

All of the matters described above are then set out in a written Evaluation and Assessment Plan (“Assessment Plan”). • supplementing the Assessment Plan is the Probity Plan, which is drafted to provide guidelines to government representatives participating in the procurement process. It is common for a Probity Auditor (usually an independent person) to be appointed as a “gatekeeper” to oversee that process. • to evaluate and assess the tender responses on behalf of a government, a committee of decision makers from across a variety of disciplines is formed. Often the committee will have an independent chairperson. To maintain a level of impartiality and avoid undue influence, the identities of members are not disclosed to tenderers. • the Assessment Plan and the Probity Plan are intended to guide the committee in its work and achieve, for the stakeholders, the highest levels of transparency, fairness and value for money. For example, the committee should make decisions within the highest standards of behaviour and avoid conflicts of interest and taking improper advantage. • often, the Assessment Plan and the Probity Plan are supplemented by a government written code of practice. Such a code would provide for policies and procedures to achieve the overriding objective that government bodies act with integrity, fairness, transparency and probity. The new regulations may accelerate the Abu Dhabi tendering process if these policies provide for variations depending on the nature and cost (and other risk factors) of each project. The lesser the significance and lower the risk profile of a particular project, then fewer of the requirements described above may be imposed. However, what will remain are the overriding aims of: • ensuring transparency of tendering for work with government departments • tenderers will be treated fairly • the successful tenderer is selected purely on merit on the basis of providing the best value for money.

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TOP 10 MEGA PROJECTS CONSTRUCTION WEEK LISTS THE BIGGEST PROJECTS IN THE KINGDOM

IN SAUDI ARABIA

By Conrad Egbert and Lutﬁ Qaraman

Projects in this feature are listed in order of value.

KING ABDULLAH ECONOMIC CITY (KAEC) Value: US $50 billion Client: Emaar Properties Schedule: Construction started in 2006. The ﬁrst phase of the project is expected to be completed by the end of 2009. The overall project will be completed in stages, with a view to ﬁnishing in Q1 of 2020. Scope: KAEC is a massive development located in Rabigh, Saudi Arabia. The master plan of the city shows that it will be divided into an industrial zone, residential zone, sea resort and sea port. The industrial zone covers an area of 63 million m2. The zone will include facilities to operate and build plants and factories. The residential zone covers an area of 51 million m2 and will include low-, mid- and high-rise structures. The sea resort provides a built-up area exceeding 3.5 million m2 to be used to build hotels, residential apartments, a golf resort, spas and water sports facilities. In addition to that, the sea port provides 14 million m2 to build a port on the kingdom’s West coast. The port will include 30 berths to serve global trade routes between Asia, Europe and Africa.

MILE TOWER Value: US $15 billion Client: Kingdom Holding Company Schedule: Bechtel has ended their involvement with the project. The main consultant is Omrania & Associates. Emaar Properties signed a memorandum of understanding with Kingdom Holding to develop the project. According to the agreement, Emaar properties will provide supervision and development experience. Construction is expected to begin next year and completed in 2014. Scope: The project calls for the construction of a mile-high tower which is a skyscraper in Jeddah, Saudi Arabia. The height of the skyscraper is around 1600m. The Mile Tower is a mixed use tower including apartments, hotels, commercial shops and malls. It will be the tallest in the world.

SUDAIR CITY Bidding DEVELOPMENT Value: US $40 billion Client: Saudi Industrial Property Authority (Modon) Schedule: Ten out of 60 companies have been short listed by Saudi Arabia’s largest industrial development agency, Modon, for the construction of the Sudair City. The contractors have been invited to submit proposals within eight weeks. The winning bidder will then be responsible for hiring sub-contractors for the project. Construction is expected to start in Q1 of 2010 with a view to being completed in Q1 of 2015. Scope: The project calls for the construction of Sudair city. The project is a mixed use development including residential, commercial, entertainment and educational facilities. Sudair City will span an area of 258 million m2 north of Riyadh.

PRINCESS NOURA BINT ABDUL RAHMAN UNIVERSITY FOR WOMEN IN RIYADH In te

constr nder for Value: US $11.5 billion uction contra ct Client: Ministry of Finance; Ministry of Higher Education Schedule: The work has been split into three packages. The ﬁrst two packages will cover the buildings and associated works. The third package will cover the infrastructure of the university. Saudi Binladin Group is the lowest bidder for the buildings package and associated works while El Seif was the lowest for the infrastructure package. Construction has begun and is expected to be completed in 3 years. Scope: The project calls for the construction of a new university for women. The university is expected to cover 8 millions m2 and located on King Khalid International Airport Road, north of Riyadh. The total built up area is around 3 million m2 and will include administration buildings, 13 faculties, a 700-bed student hospital, labs, research centres and a residence.

CONSTRUCTION WEEK SEPTEMBER 26–OCTOBER 2, 2009

> For more top 10s visit www.ConstructionWEEKonline.com

KNOWLEDGE ECONOMIC CITY (KEC)

LANDBRIDGE RAILWAY Value: US $10 billion In tender for construction Client: Saudi Railway contract Organisation (SRO) Schedule: The Saudi government is to fund the Landbridge project because banks are unwilling to finance the scheme. Construction is expected to start in the first quarter of next year with a view to finishing in Q1 of 2015. Scope: The Landbridge project is a 950km railway. It will connect Jeddah on the Red Sea with Dammam in the Arabian Gulf. The project will also include a 115km railway to connect King Fahd Industrial Port with Jubail Industrial City.

PRINCE ABDULAZIZ BIN MOUSAED ECONOMIC CITY Value: US $8 billion Client: Rakiza Holding Company; Al Mal Investment Company Schedule: The agreement for the dry port, passenger and cargo terminals was signed by the Public Investment Fund (PIF), Sagia and Al Mal. Another agreement was signed between Sagia,

Value: US $8 billion Client: Knowledge Economic City Developers Schedule: The client is in negotiation with consultants for the project. Construction is expected to begin shortly after they’re chosen. KEC will be built in phases. The project duration is expected to be 10 years with a view to ﬁnishing in Q1of 2020. Scope: The project calls for construction of Knowledge Economic City (KEC) in Madinah, Saudi Arabia. The project land area is around 5 million m2 and the total built up area is 9 million m2. The city will establish a catalyst for knowledge-based industries in Madinah; it will accommodate up to 30,000 visitors and generate 20,000 new job opportunities.

Manpower Development Fund and Cadre Economic Cities Company to train 10,000 men and women while other deals included the development of food and agricultural industries, establishing an international hotel, and building four residential and commercial towers. Construction is expected to start in Q1 of 2010 and completed by Q1 of 2022. Scope: The project calls for the construction of Prince Abdulaziz bin Mousaed Economic City in Hail. The city will cover 156 million m2 including various sectors for trade.

NORTH-SOUTH RAILWAY Value: US $3.5 billion Client: Public Investment Fund (PIF) and Saudi Railways Organisation (SRO) Schedule: The project is currently under construction and is expected to be completed in the fourth quarter of 2010. Scope: The North-South Railway is a 2400km railway project. The railway will connect bauxite and phosphate mines at Az Zubairah and Al Jalamid to processing facilities located at Ras Azur port. The railway will be used for the transport of minerals and passengers in Saudi Arabia.

YANBU IWPP

On hold Value: US $4 billion Client: Power & Water Utility Company for Jubail & Yanbu (Marafiq) Schedule: The project is on hold. Marafiq was looking to merge its planned independent water and power plant at Yanbu with a second independent water and power plant that Saline Water Conversion Corporation (SWCC) planned to build. The project was initially estimated to be completed in the first quarter of 2013. Scope: The project originally called for the construction of a new independent water & power plant (IWPP) in Yanbu Industrial City. The plant is expected to produce 1700MW and 150,000m3/d of desalinated water.

KING ABDULLAH UNIVERSITY OF SCIENCE & TECHNOLOGY (KAUST) Value: US $3.5 billion Client: Saudi Aramco Schedule: The university was expected to be completed and open by September 2009. The main contractors on the project were Saudi Oger, Saudi Binladin Group, Huta Sete Marine Works and Fayez Zuhair Engineering. Scope: Kaust is located on Thuwal, 80km north of Jeddah. It is divided into four main packages: residential buildings, civic buildings, a university campus and a marina. The university will cover more than 36 million m2.

SEPTEMBER 26–OCTOBER 2, 2009 CONSTRUCTION WEEK

AN EXPERIENCE WHICH IS TRULY...

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As the largest event of its kind in the Middle East, The Big 5 provides an unrivalled platform for architects, engineers, contractors and developers from the public and private sectors to network, source and specify the latest building and construction products and services. Featuring National Pavilions from all major exporting countries of the world, The Big 5 provides the most comprehensive product offering for the building and construction industry. The Big 5 will also be bringing together an impressive line-up of added value elements including a Key Buyers Programme, Product Seminars, a Conference Programme and the acclaimed Gaia Awards.

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SPECIAL REPORT

GERMAN FIRMS

TORSTEN SILZ/AFP/GETTY IMAGES

...AND WHAT EXPERTISE THEY CAN BRING TO THE REGION.

SEPTEMBER 26–OCTOBER 2, 2009 CONSTRUCTION WEEK

CONSTRUCTION WEEK SEPTEMBER 26–OCTOBER 2, 2009

SPONSORED BY

GERMANY’S GULF OPERATIONS HAS GERMANY’S DECLARATION THAT IT IS OFFICIALLY OUT OF RECESSION AFFECTED GERMAN CONSTRUCTION FIRMS AND MANUFACTURERS OPERATING IN THE GULF, AND SHOULD YOU OPT TO WORK WITH THEM? CONSTRUCTION WEEK INVESTIGATES By Alison Luke

he number of German firms associated with the Gulf construction sector has risen greatly over the past decade. The full spectrum of the sector is covered by those that have set up operations in the region, from product manufacturers, to architects and contractors, German firms are involved in most of the major developments that are underway across the Middle East. But what is attracting clients to opt for German firms and what benefits can they bring to projects over here? At the top of the list, it appears, are the German traditions of quality and efficien-

cy. “The market here recognises German- “Governmental safety organisations have made products as technically superior and embraced these approvals and written them advanced,” states Knauf general manager into their own standards. And joint ventures Michael Morgan. “In general, German firms between German and local companies have have brought the best quality systems and transplanted the quality drive end ethos to products to the region,” agrees Hess Middle local companies,” reports Peile. East area manager Manoj Kumar. “All Knauf systems in the Middle East And this striving for quality is not just market comply with global benchmarks unwarranted reputation, it is demonstrated as well as meeting all the requirements by the demand for approval to recognised of Dubai’s stringent construction norms,” industry standards by firms operstresses Morgan. “The ating in Germany. “German comGroup’s responsibil“THE MARKET panies have driven the need for ities do not simply HERE RECOGNISES products and services, backed end with providGERMAN MADE by internationally recognised ing or installing its PRODUCTS AS testing and approvals organisadrywall systems. We TECHNICALLY tions,” states Geze Middle East offer free technical SUPERIOR AND managing director Barry Peile. ADVANCED” specification services, on site support, plus theoretical and hands-on training to contractors as part of our quality control HOW GERMAN COMPANIES CAN STRENGTHEN programme,” he explains. Such back-up is THEIR POSITION IN THE GCC? a primary benefit provided by major German firms operating in the region. • Provide good after-sales service support Skilled workmanship, reliability and expert • Ensure a ready supply of good quality, certified products knowledge are also valued assets offered • Ensure the availability of spare parts across the entire GCC by German firms, as is product reliability. • Adapt products as necessary to meet local requirements such as environmental “High quality products made in Germany conditions offer cost savings in the long-term,” assures • Offer product training sessions for contractors and end-users Reiner Kaltenbach, Advanced German Prod• Use promotional materials to further educate the market about the benefits of buying ucts (AGP). quality produced products In addition, the focus of German firms • Showcase products and services at locally held trade shows and events or at the company on developing new technology means that premises they have been able to offer fast-growing • Appoint country managers throughout the region markets such as the Middle East products • Increase their presence across the region in terms of number of offices, agents, that meet the latest industry and global distributors etc. demands. “Clients in the Middle East are • Work in co-operation with local governments and ministries very keen on designer products that simulta• Keep up to date with the requirements of clients and end-users and ensure that the firm neously incorporate eco-friendly features,” can meet these demands explains Holger Ruf, managing director, Hansgrohe Middle East. But ensuring that

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SEPTEMBER 26–OCTOBER 2, 2009 CONSTRUCTION WEEK

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new developments meet client demands is essential, he warns. “Innovation…needs to go hand-in-hand with continual dialogue and a regular exchange of views with our customers. Keeping an eye on the market is not only important to be able to respond to customer requests and market requirements as soon as possible, but especially to set any trends in the ﬁrst place,” stresses Ruf.

MARKET RECOGNITION KUMAR SAYS GERMANS ENSURE BEST QUALITY.

While those in the Gulf may recognise the expertise and attention to detail that German

ﬁrms can offer, with heightened pressure on costs and time savings in the current economic climate are these factors really top priority in the region? “The market is already learning that attention to detail is an important factor in the construction industry,” reports Morgan. “We believe that educating our clients will be critical in the longterm in the Middle “IN GENERAL, East markets.” GERMAN FIRMS The economic HAVE BROUGHT downturn has actuTHE BEST QUALITY ally increased this SYSTEMS AND demand for quality PRODUCTS TO THE REGION” products in many cas-

GERMAN COMPANIES IN THE GCC YOU SHOULD KNOW BASF CONSTRUCTION CHEMICALS BASF’s Construction Chemicals division is one of the leading suppliers of chemical systems for the construction industry. The firm’s Admixture Systems business unit serves clients in the ready-mix, precast, manufactured concrete and underground construction industries. The Construction Systems unit offers a wide range of products including concrete repair and protection materials; expansion joints; exterior insulation and finish systems; waterproofing membranes; crack repair and injection resins and tiling products. BASF has more than 30 years experience in the GCC. www.basf-cc.ae

GEZE Geze Middle East is a leading developer and producer of door and window control systems. Established in 1863 and headquartered in Leonberg near Stuttgart, Germany, the firm now has numerous branches, 26 fully-owned subsidiaries and manufacturing plants worldwide. Geze has been active in the Middle East since 1996, when a regional office opened in Amman, Jordan. Geze Middle East was established in 2003 in the Jebel Ali Free Zone. The firm now operates in the UAE, Oman, Qatar, Bahrain, Saudi and Kuwait.

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It offers products on a supply only basis or under supply, installation and annual maintenance contracts. Products include automatic sliding doors, automatic revolving doors, powered window openers and manual door closing systems. www.geze.ae

countries worldwide. Its product portfolio includes building adhesives for architects and building contractors; adhesive and sealant systems for industrial applications; and solutions for professional ﬂooring, building and construction, pipe installation, ﬁre protection and woodworking. henkel.com

HANSGROHE Hansgrohe is one of the leading international manufacturers of sanitary products. Founded in 1901 and headquartered in Schiltach in the Black Forest, Germany, the firm has manufacturing plants in Germany, France, the Netherlands, the USA and China. It also has sales and distribution companies and consultancies worldwide. The firm’s products have been offered in the Middle East since the early 1990s supported from the German headquarters; and since 2004 through Hansgrohe Middle East and Africa head office in Cyprus. The firm has a local office in Dubai and works with local partners for importers, agents and wholesalers throughout the other countries in the Mena, Levant, North Africa and Gulf. www.hansgrohe-mea.com

HENKEL MIDDLE EAST Henkel is one of the world’s leaders in adhesives, sealants and surface treatments. Headquartered in Düsseldorf, Germany, the ﬁrm has subsidiaries in more than 75

HESS GROUP Hess is one of the largest machinery manufacturers for the concrete industry, and a leader in the production of machines used in the concrete-block and pipe manufacturing sector. It is also into a major developer and supplier of the handling systems for such products. Its product portfolio includes block and pipe-making plant equipment; interlocking paver machines, concrete pipe machines, autoclaved aerated block machines, railway sleeper machines, plus concrete mixing and metering systems. Hess has been active in the Middle East market for more than 15 years through local agents and distributors. In 2005 it opened a facility in the Jebel Ali Free Zone, which is responsible for serving all GCC and other Middle East countries. www.hessgroup.com

Companies mentioned here are listed in no particular order.

SEPTEMBER 26–OCTOBER 2, 2009 CONSTRUCTION WEEK

German Formwork Technology A Total Solution Provider Relatively young company, started in March 2008, GFT is far more than just â&#x20AC;&#x2DC;anotherâ&#x20AC;&#x2122; supplier as it has vast experience in providing provides complete formwork solution (includes design work, price estimates, material supply, training on site, site supervision, and the issuing of certiďŹ cates to contractors prior to concrete pouring) to contractors from sales to rental, as it has a highly skilled management team whit many years of experience. GFT has quickly developed a reputation as a total solution provider, offering an extensive product range, preparation of detailed execution drawings and corresponding calculations, as well as on-site assistance.

GFT`s commitment to QC and Health and Safety requirements: - Ensure a high standard product quality and safety. - All products are assessed prior to marketing to identify any quality, safety concerns and to ensure that they are compliant with all necessary product safety legislation - Quality control at different phases of the production line. - Frequent visits to the manufacturing companies and production facilities to ensure that the correct quality assurance and proper production method statements are met. - Random QC checks are carried out by FUGRO laboratory in the UAE. All of these controls are undertaken to ensure that products are free of risk and provide long life performance. GFT follows both European and local regulations for the control of products, which provides a framework for the production and utilization of the material without risks.

GFT is committed to the most stringent QA/QC and Health and Safety requirements. Its aim is to produce only quality products that can be used safely and are accompanied by the necessary information. GFT believe that its clients, and others who may use its products, have a right to expect that all quality insurance, health, safety and environmental requirements are met.

Prestigious projects: -

Hospital project in Um Al Quain Coral Beach Hotel in Ajman Queens Palace Hotel in Abu Dhabi Extension of Madinat Zayed in Abu Dhabi Abu Dhabi Financial Centre (high rise)

Dubai T: +971 (0) 4 343 4154 F: +971 (0) 4 343 4155

www.gf-tech.ae

Abu Dhabi T: +971 (0) 2 551 4948 F: +971 (0) 2 551 4947

PEILE SAYS SENSIBLE FIRMS LOOK FOR BETTER VALUE RATHER THAN LOWER PRICES.

es, manufacturers report. “Difficult times Interpane Glass Germany director Micha make sensible companies look for better Pawelka. There is now more recognition of, value rather than lower prices,” reports and demand for, products from European Peile. “Many companies have suffered the companies as a whole, Pawelka reports. consequences of low price and the inevitable low quality that it buys. High quality engi- THE EFFECTS OF THE neered products and services provide good RECESSION value for money and that is what German The effects of the global economic companies provide,” he explains. downturn on German firms operating “The expertise and the details are espe- within the Middle East construction market cially important in have differed greatly. Their this region where the responses to the issue are varying “HIGH QUALITY economy was increasbetween undertaking local ENGINEERED ing so quickly that and geographical expansions, PRODUCTS sometimes quantity to reviewing the firm’s mode PROVIDE GOOD was counting more of operations and increasing VALUE FOR than quality,” stresses MONEY” the focus on new product

GERMAN COMPANIES IN THE GCC YOU SHOULD KNOW (continued) INTERPANE Interpane Glas Industrie is headquartered in Lauenförde, Germany, and is one of Europe’s largest flat glass processors. The Interpane Group comprises eleven production facilities at ten locations in Germany, Austria, and France; it also produces float glass at Seingbouse in France. The firm’s product range includes coated insulating glass, sound-proofing glass, solar-control glass, safety glass and all-glass doors and panels. Its high-end solar control and design glazing are primarily suited to building facade applications; the firm also supplies interior and fire-rated glass. Interpane has operated in the Middle East for more than ten years and opened a local office in January 2009. www.interpane.com

ISCHEBECK TITAN Founded in Germany in 1881, Ischebeck Titan is one of the world’s leading designers and manufacturers of solutions in falsework, formwork, safety and ground engineering products. Ischebeck Titan (Middle East) is a subsidiary of the UK-based Ischebeck Titan, the joint venture partner of the Germanbased Ischebeck. The ﬁrm has a local ofﬁce in Ajman and has supplied formwork to some of the Middle East’s major projects

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including Dubai International Airport Terminal 2 extension. www.ischebeck-titan.co.uk

KNAUF DRYWALL SYSTEMS Knauf is a leading drywall building materials company. Founded in 1932 as a family business, Knauf now includes more than 150 plants in 37 countries in Europe, the Middle East, Asia, USA and Latin America; a workforce of 18,000; and annual revenues of about US $8.8 billion (AED32.4 billion). Headquartered in Bavaria, Germany, Knauf was originally a producer of conventional gypsum; its portfolio now comprises more than 30,000 different gypsum boards, metal profiles and accessories, jointing and finishing compounds, dry floor elements and thermal insulation materials, plus a wide range of plaster products. It has been active in the Middle East for more than ten years; its regional operations are headquartered in Dubai. The firm also has offices in Qatar, Syria, Jordan, Egypt and Lebanon; dealers in Oman, Bahrain, Kuwait and Saudi Arabia and manufacturing plants in Syria, Egypt and Ras Al Khaimah. www.knauf.ae

around US 47.2 billion (AED26.5 billion) and almost 43,000 employees at more than 800 locations, the group is active worldwide. The product range comprises passenger and freight elevators; escalators and moving walkways; stair and platform lifts; plus passenger boarding bridges. Thyssenkrupp Elevator Seame is the business unit managing the ﬁrm’s operations in Southern Europe, Africa and Middle East. Its activities are focused on a wide range of services, such as design, manufacturing and after-sales of elevators, escalators or platforms. www.thyssenkrupp-elevator-seame.com

CAD-PLAN MIDDLE EAST Cad-Plan was founded in 1989 as a software firm specifically to provide computer aided design (CAD) software for the metal construction and façade technology sector. The firm’s primary product is the Athena AutoCAD-based application for curtain wall design and facade engineering; it also offers Flixo Professional 5, a thermal analysis and reporting package. CAD-Plan Middle East was founded in 2007, the main office being located in Dubai. www.cad-plan.com

THYSSENKRUPP Thyssenkrupp Elevator is one of the world’s largest elevator companies. With sales of

Companies mentioned here are listed in no particular order.

SEPTEMBER 26–OCTOBER 2, 2009 CONSTRUCTION WEEK

PAWELKA SAYS THE ORDER BOOK IS LOOKING GOOD.

“WE ARE WORKING WITH LOCAL AGENTS ALL OVER THE WORLD SO WE ARE ABLE TO GET PROJECTS” development. “Being a zero-debt company, we escaped the worst of the credit crisis. In fact, as a global company we outperformed operations in some areas, which helped us operate in other markets with fewer problems,” reports Morgan. Such is Knauf’s confidence in the local market that the firm has invested AED500 million in a new production plant that is currently under construction in Ras Al Khaimah. Phase one of the plant became operational on September 1, the remaining two phases are scheduled to open by the end of 2010. When completed, the plant will produce gypsum boards, metal studs and channels, joint compounds, drywall accessories and plasters and have a capacity of around 40 million m2 of gypsum boards per year. Concrete cooling plant supplier KTI is also planning to undertake expansions within the Middle East. KTI marketing manager Tobias Graf reports: “[We will be carrying out an] extension of our presence - warehouses, service stations, technicians etc - in the whole region.” The firm currently owns subsidiaries in the UAE, Saudi Arabia and Qatar, and

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JACKSON SAYS IT IS DIFFICULT TO COLLECT DEBTS.

“[THE FIRM NOW HAS A] MORE CAUTIOUS GRANTING OF CREDIT TERMS” has partners in Egypt, Kuwait and Oman. “For Hansgrohe the impacts of the financial markets and economic crisis vary quite substantially from one market to another,” reports Ruf. “Despite the shortfalls in project operations, notably in Dubai, we perceive a strong level of demand for, and a pronounced interest in, our products in the Arabian countries.” As a result of this demand the firm plans to establish additional distribution branches and extend its partner networks in the Middle East. “The year 2009 will certainly remain difficult. On the other hand, we believe we are in a very good position not only to meet the challenges posed by this crisis, but also to develop an outstanding starting point for ourselves in preparation for the moment when the economy picks up again,” stresses Ruf. As the construction industry in the Middle East has been heavily affected by the recession, with a number of projects cancelled or on hold, it is inevitable that German companies have not fully escaped the effects. “It is more difficult to collect debts,” reports MC Building Chemicals general manager

KALTENBACH IS NOW LOOKING AT THE WIDER GCC.

“[AGP IS] CONCENTRATING ON PROJECTS WHICH REQUIRE HIGH QUALITY PRODUCTS” Barry Jackson. The firm has responded in two ways: “A more cautious granting of credit terms and more aggressive approach to business,” explains Jackson. However, despite these general market issues MC Building Chemicals is also expanding and is currently recruiting both sales and technical staff reports Jackson. “I don’t know of any country or for that matter any company that has escaped the global recession,” stresses Peile. “Some companies have contracted drastically from previous years in terms of business secured, profits generated and staff levels. We have been fortunate and continued growing our business marginally over previous years as demand for our products has increased,” Peile reports. In order to continue its growth in the region Geze has appointed a resident country manager in Kuwait. “We are also exploring opportunities to increase our effectiveness in the Saudi market,” reports Peile. The firm is examining its operations in all markets and has recruited local managers to ensure the firm has an understanding of the individual areas in which it is operat-

SEPTEMBER 26–OCTOBER 2, 2009 CONSTRUCTION WEEK

ing. In addition, Geze is introducing new product ranges to its portfolio. Although the number of enquiries has dropped, there are enough projects currently underway to maintain business reports Kumar. Hess is focussing on providing an improved service support and the availability of spare parts across the GCC he says, it is also looking towards business expansions. “We are trying to open new markets in north America, India, Mexico, Brazil and China and will be introducing new products for medium and small-scale operations,” says Kumar. “Once Germany is recovered from the recession the company will be able to invest more money, either directly or through the German industrial bank, which is always supporting German ﬁrms abroad,” he adds.

INCREASING BUSINESS Despite being relatively new to the region when the global downturn began, both AGP and Interpane report conﬁdence in their

future operations in the region. Security as well for interior and fire-rated glass. Its products firm AGP was established in products were available in the Middle East Dubai in 2008 and has already provided for more than ten years before the firm its high security cylinder and master key opened its regional office in Sharjah in Janusystems for several high profile projects in ary. Since then the firm has undertaken the region including the Burj Dubai-based projects in the UAE, Qatar and works in all Armani Hotel. GCC Countries from its Sharjah base. “The Kaltenbach has noted a general slowdown order situation is still very good because we of business activities in the region plus lower are mostly working in a field where special project budgets, however there is also a solutions are required and there are not stronger demand for good quality products many competitors,” explains Pawelka. “We he reports. AGP is making two strategic are already working with local agents all moves to ensure its future in the Middle over the world so we are able to get projEast: “[AGP] will be concentrating on specific ects in other countries that still have a good projects which require high quality products economy,” adds Pawelka. In addition, the and there will be a reorganisation of busi- firm is aiming to improve its existing prodness activities into different markets beside ucts, and develop new products, including Dubai, such as Abu Dhabi, Qatar, Kuwait a range of eco-friendly glass. And with high-end German and KSA,” explains Kaltenbach. companies such as these con“THE GERMAN Interpane offers tinuing to move into the Gulf INDUSTRIAL high-end solar control region, the relationship between BANK IS ALWAYS and design glazing Middle East construction firms SUPPORTING primarily for building and German industry seems set GERMAN FIRMS facade applications ABROAD” to continue. 

HOW TO… REDUCE YOUR CARBON FOOTPRINT CONSTRUCTION WEEK TAKES A LOOK AT THE BEST WAYS TO GO GREEN AND REDUCE THE ENERGY CONSUMPTION OF A BUILDING By Sarah Blackman

AROUND 120 MILLION TONNES OF WASTE IS PRODUCED IN THE GCC AND 55% OF THAT WASTE COMES FROM CONSTRUCTION ACCORDING TO THE LATEST STATISTICS.

reen building and sustainabilty have been at the forefront of most contractors’ minds despite the dark presence of the ﬁnancial crisis that rained on the construction industy’s parade shortly after a boom-time in the sector. Plans for expansion and new projects were put on hold but contractors got their priorities right when it came to helping the environment. “Sustainability has remained an important part of most development throughout the downturn, and has been embraced by the developers for those projects that have continued in spite of bad economic times,” says Middle East Centre of Sustainable Devel-

“SUSTAINABILITY HAS REMAINED AN IMPORTANT PART OF DEVELOPMENT THROUGHOUT THE DOWNTURN” opment chief technical ofﬁcer and Leed accredited professional Thom Bohlen. Whitby and Bird director for sustainability Heath Andersen adds: “I do think contractors are taking green buildings more seriously as they understand that it is a global trend that is here to stay and if they wish to compete, in what is now a very competitive market; they require world class skills to survive.” Despite this progress, it is clear that the GCC has a long way to go in terms of green

CONSTRUCTION WEEK SEPTEMBER 26–OCTOBER 2, 2009

building, as the UAE and Kuwait remain the highest carbon emitters in the world. “It is difﬁcult to change mind sets, and it is difﬁcult to get people to take steps to improve the conditions of operation of a building when the plan is to sell the building on,” explains Emirates Green Building Council chairman Jeff Willis.

WORST CARBON EMITTERS PER PERSON 1. UAE 2. Kuwait 3. USA

4. Ireland 5. Switzerland 6. Japan

Source: WWF living planet report 2008

> For the latest analysis log on to www.ConstructionWEEKonline.com

DON’T Rely on one form of technology to solve your green issues Work on land that is home to endangered plant and animal species Send all construction waste to landﬁlls Forget about micro climatic inﬂuences, such as shading devices, which reduce energy consumption Think green building is too expensive - sustainable buildings are less costly to operate and maintain BUILDING MATERIAL CHOICES CAN AFFECT THE AMOUNT OF CARBON PRODUCED. HEATH ANDERSEN BELIEVES CONTRACTORS ARE NOW TAKING GREEN BUILDING MORE SERIOUSLY.

“ENERGY USED IN THE DAY TO DAY RUNNING OF A COMPANY IS THE SINGLE BIGGEST EMITTER OF CARBON” So how can construction companies in the Middle East change the habit of a life time and reduce their carbon footprint?

MANAGE YOUR CONSTRUCTION WASTE The latest statistics from the Middle East Waste Summit show that the majority of GCC countries are ranked in the top ten in terms of waste production in the world. Around 120 million tonnes of waste is produced here and 55% of that waste comes from construction. That’s 66 million tonnes of waste created just from building up the land we live on. The biggest problem is that many construction companies send their waste straight to the landﬁlls when most building materials, with the right processes and services, be recycled. “Products that include recycled content can be reused; this not only reduces the energy consumed to make the end product, but usually involves the use of a product that would otherwise be sent to landﬁll,” reports Andersen. Compactors used on site can also reduce the need for frequent waste collection, leading to fewer waste collection trucks on the road and, in the end, less pollution. The carbon footprint of a facility can also be cut down by water consumption reduction. Water, particularly in the Middle

East, is obtained through desalination, a huge energy consuming process, according to Bohlen. “Potable water use can be reduced in buildings through the use of low water-use plumbing ﬁxtures and efﬁcient landscape irrigation systems, and the use of recycled grey water systems,” he says.

MOVE WITH THE TIMES The choice of building façade can make a dramatic difference to the energy consumption of a building. Glass is the most popular choice of envelope in the Middle East but remains the greatest contributor to heat build up inside a building, which will then lead to an increased need for air conditioning. Developers need to invest in new technologies if they wish to let daylight in and keep the heat out. For example, Emirates Glass produces solar control glass called Emicool. The company applies metallic ﬁlms on the glass that gives the surface a reﬂective property so the amount of heat that passes through a building is reduced. Mark Newberry, commercial manager of Multiforms, another cladding company, adds: “One development we are promoting

DO • Use natural materials like wood and stone where possible • Source materials locally • Monitor your progress • Team up with a sustainable consultant • Recycle materials • Compact your construction waste • Reduce the water consumption of the building you are developing

is Photovoltaic’s, a power technology built into the façade of a structure that generates electricity for the building’s use.” Concrete products that require less cement and less water during the mixing process are also available.

GO NATURAL Natural materials such as stone and wood take less energy to manufacture than steel and aluminium. Also, energy consumption can be reduced by accessing your materials locallyto reduce the need for transportation. Putting in place a vegetated roof will also help reduce a company’s carbon footprint. These ﬁlter air pollutants deposited from the atmosphere and store carbon dioxide.

REVIEW AND IMPROVE Monitoring energy efﬁciency on a regular basis is vital if a construction company wishes to reduce its overall carbon footprint. Energy used in the day-to-day running of any construction company is the single biggest emitter of carbon, according to Andersen. If a company has a structured energy efﬁciency programme in place, they will not only reduce the carbon footprint of the operation, but save money on utility bills as well. Bohlen adds: “In the very near future, all facilities will be required to know and report their carbon footprint, as part of their social responsibility and asset management.” “For those developers who have educated themselves on the advantages of sustainable principles, the next decade of this 21st century will be bright and successful. For those developers that stick to the ways of the pre-melt down era, it won’t. It is as simple as that.” 

SEPTEMBER 26–OCTOBER 2, 2009 CONSTRUCTION WEEK

Emicool keeps you COOL

Emirates Glass, L.L.C., P.O. Box 29769, Dubai, UAE Tel: +971 4 7094700 Fax: + 971 4 3471440 E - m a i l : e m i g l a s s @ e m i r a t e s . n e t . a e W e b s i t e : w w w. e m i r a t e s g l a s s . c o m

www.ConstructionWEEKonline.com/directory

§ § § § § DIRECTORY

DIRECTORY TENDERS | PROJECTS | SUPPLIERS | CITY UPDATE

SHOWCASE 44 Al Wahda Road Project, Sharjah 46 TENDERS 47 PROJECTS SPECIALIST SERVICES 48 Building materials 49 Construction chemicals/concrete 50 Education & training/ﬂooring 51 Recruitment/steel CITY UPDATE 52 Yanbu, Saudi Arabia

To advertise please call Shishir Desai +971 4 435 6375, or email shishir.desai@itp.com

SEPTEMBER 26–OCTOBER 2, 2009 CONSTRUCTION WEEK

¦SHOWCASE

To buy images within these pages please email itpimages@itp.com or visit itpimages.com

ITP IMAGES TO BUY IMAGES WITHIN THESE PAGES PLEASE EMAIL ITPIMAGES@ITP.COM OR VISIT WWW.ITPIMAGES.COM

ABOVE: Construction continues on Al Wahda Road, one of Sharjah’s biggest infrastructure developments. The contract for this project was awarded in April 2006. RIGHT: Last month, the first phase of the Al Wahda Road Project, including the underpass at Cultural Square and the Flying Saucer junction, were opened to the public and is expected to ease traffic in an around the emirate. Here, construction workers apply the finishing touches.

CONSTRUCTION WEEK SEPTEMBER 26–OCTOBER 2, 2009

To buy images within these pages please email itpimages@itp.com or visit itpimages.com

CLOCKWISE FROM BOTTOM: Before construction could begin utilities such as a 2.2 diametre water pumping main, as well as 132kv cables and 30 inch gas pipelines had to be diverted; the entire project involves the development of a 6km-long road consisting of four interchanges; a rather happy construction worker takes out a little time from his busy schedule, to pose for ITP shutterbugs.

AL WAHDA ROAD PROJECT, SHARJAH Photos by Khaled Termanini The US $217 million (AED800 million) Al Wahda project in Sharjah, is set to be completed in September 2010. The Cultural Square interchange consists of an underpass along Al Wahda Street, passing below Cultural Square roundabout and leading traffic to and from Sheikh Mohammad bin Saqr Al Qassimi Road. The interchange at the Flying Saucer junction is gradeseparated with a viaduct around 550m-long. The second phase consists of a 1.6km double deck road, which is being built between King Faisal Interchange and the Gold Centre intersection. The elevated part will have two lanes in each direction and will allow the free flow of traffic along Al Wahda Street, bypassing the congested junctions at Abu Shagara and the Gold Centre.

SEPTEMBER 26–OCTOBER 2, 2009 CONSTRUCTION WEEK

TENDERS §

¦TENDERS FREE TENDERS AND SERVICES IN THE CONSTRUCTION INDUSTRY TO INCLUDE YOUR TENDERS IN THIS SECTION EMAIL TENDER DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM

Tender focus

HAYA WATER Haya Water, formally known as Oman Wastewater Services Company, was established in December 2002 and was incorporated as a joint stock company owned by the Government of the Sultanate of Oman. The organisation is currently working on the Muscat wastewater master plan, which consists of the planning, design and construction of needed wastewater infrastructure for the Muscat Governorate. The overall development plan is divided into three phases and it is planned to serve 80% of Muscat population by the end of 2014 and 90% by 2017. Haya Water has recently invited construction companies to bid, by September 28, for the construction of Darsait wastewater treatment plant. 

To include your tenders in this section email tender details to editor@ConstructionWeekOnline.com

BAHRAIN Issuer: Bahrain Electricity and Water Authority Tender No: 226/2009/5310 Description: Supply an underground 11KV power cable. Closes: September 30 Fees: BHD50 Bond: BHD5000 Contact: www.tenderboard.gov.bh Issuer: Central Stores Directorate Tender No: TC/NB/PT-2605/08/09 Description: Supplying spare parts for Al Door Substation. Closes: September 30 Fees: BHD15 Contact: www.tenderboard.gov.bh EGYPT Issuer: Potable Water and Sanitary Drainage Company Description: Companies specialised in waste water solutions to design lifting stations at villages within Kafr El Sheikh Governorate. Closes: October 7 Fees: EGP5000 Bond: EGP500,000 Contact: Potable Water and Sanitaty Drainage Company, opposite the court yards complex, Tanta OMAN Issuer: Ministry of Manpower Tender No: 244/2009 Description: The scope of work includes construction of a Ministry of Manpower Building at Airport Height. Closes: September 27 Fees: OMR1500 Contact: www.tenderboard.gov.om Issuer: Ministry of Transport and Communication Tender No: 261/2009 Description: The scope of work includes construction of airﬁeld infrastructure for Sohar Airport in Oman. Closes: September 28 Fees: OMR1500 Contact: www.tenderboard.gov.om Issuer: Oman Wastewater Services Company

HAYA WATER IS WORKING ON A WASTERWATER MASTER PLAN.

Tender No: 258/2009 Description: The scope of work includes the construction of a car park for Haya Water Headquarters in Al Ansab. Closes: October 5 Fees: OMR686 Contact: www.tenderboard.gov.om QATAR Issuer: Public Works Authority Tender No: PWA/GTC/048/07-08/R2 Description: Construction of a service building in Um Salal. Closes: September 29 Fees: QAR1000 Contact: Contracts department, Public Works Authority Issuer: Qatar Petroleum Tender No: GT09109900 Description: The scope of work includes irrigation, landscape maintenance and refurbishment works at Qatar Petroleum locations. Closes: October 4 Fees: QAR500 Contact: Qatar Petroleum, PO Box 3212 Issuer: Public Works Authority Tender No: PWA/GTC/009/09-10 Description: The design and construction of trunk and internal sewers within Musaimeer. Closes: October 13 Fees: QAR6000 Contact: Contracts department, Public Works Authority Issuer: Public Works Authority Tender No: PWA/GTC/010/09-10 Description: Construction of trunk and internal sewers within Musaimeer – phase one. Closes: October 27 Fees: QAR6000 Contact: Contract department, Public Works Authority Issuer: Public Works Authority Tender No: PWA/GTC/009/09-10 Description: Construction of trunk and internal sewers within Ain Khalid Area – phase 2. Closes: November 10 Fees: QAR8000 Contact: Contract department, Public Works Authority

CONSTRUCTION WEEK SEPTEMBER 26–OCTOBER 2, 2009

SAUDI ARABIA Issuer: Royal Commission for Jubail and Yanbu Tender No: PIC G-1589D Description: Construction of housing units for bachelor medical staff at Haii Al Nawa 3 at Yanbu Industrial City Closes: September 28 Fees: SAR1000 Contact: Director, Purchasing and Contracting Department, PO Box 30031, Yanbu Industrial City Issuer: Royal Commission for Jubail and Yanbu Tender No: 325-S13 Description: Operation and maintenance of infrastructure including roads, storm drainage, material handling facilities in Jubail Industrial City. Closes: October 12 Fees: SAR12,500 Contact: Contract section, directorate general of Royal Commission in Jubail, PO Box 10001, Jubail Industrial City Issuer: Holy Makkah Municipality Tender No: 4/00/00/296/1/2/19 Description: Construction of pedestrian facilities in several areas of Makkah. Closes: October 24 Fees: SAR5000 Contact: www.holymakkah.gov.sa Issuer: Royal Commission for Jubail and Yanbu Tender No: 655-C13 Description: Construction of sports centres at Al Ferdos and Jalmudah. The work includes site preparation, construction of new roads, sidewalks and utilities. Closes: October 25 Fees: SAR9000 Contact: Contracts section, directorate general of Royal Commission in Jubail, PO Box 10001, Jubail Industrial City UAE Issuer: Dubai Electricity and Water Authority Tender No: CNW/0132/2009 Description: Construction of Al Ghafat reservoirs phase one and two in Dubai. Closes: October 21 Fees: AED2000 Contact: DEWA, PO Box 564 > For more tenders check online at www.ConstructionWEEKonline.com/tenders

¦PROJECTS

> For the latest projects information visit www.ConstructionWEEKonline.com/projects

§ PROJECTS

A OMAN DATABASE - BUILDING PROJECTS FOCUS TO LIST YOUR PROJECTS IN THIS COLUMN EMAIL DETAILS TO EDITOR@CONSTRUCTIONWEEKONLINE.COM

Project focus

AL DUQM PORT – MARINE WORKS In the last quarter of 2007, development of a new port complex, worth US $1.25 billion (OR481 million), began in the Gulf state of Oman. The scope of work includes the construction of breakwaters and quay walls including dredging of the access channel and harbour basin. The length of the breakwater is 7.7km, while the length of the quay is 2.8km. Khatib and Alami Consolidated Engineering Company conducted the feasibility study before construction began. And, in April 2007, a consortium of Jan de Nul, CCC and STFA Marine Construction Company was awarded the engineering, procurement and construction contract. Project is expected to be completed in 2nd quarter of 2012. 

CLIENT

CONSULTANT

MAIN CONTRACTOR

VALUE (US$MN)

STATUS

BURAIMI UNIVERSITY COLLEGE BUILDING

Buraimi University College

Gulf Engineering Consultancy

Not Appointed

31 - 100

project under design

RENOVATION OF INTERCONTINENTAL HOTEL IN MUSCAT

Omran Ofﬁce

Pentago Spowers International

Not Appointed

16 - 30

project under design

DHOFAR UNIVERSITY IN SALALAH - PACK 1

Dhofar University

National Engineering Ofﬁce

Al Hashemi and Al Rawas Company

project under construction

NEW TELEVISION STUDIO COMPLEX

Ministry of Information

Austro Consult

Bahwan Contracting Company

project under construction

HEADQUARTERS BUILDING FOR BANK OF MUSCAT

Bank of Muscat

Atkins

Galfar Engineering and Contracting

project under construction

DEVELOPMENT OF JABAL AL AKHDAR RESORT HOTEL

Omran Ofﬁce

AW2

Not Appointed

31 - 100

project under design

COMMERCIAL/RESIDENTIAL BUILDING AT WADI KABIR

Al Taqdeer

Al Saqf Consulting

Not Appointed

2.5 - 15

award awaited for the construction contract

RESIDENTIAL BUILDING AT AL WALJA

Al Taqdeer

Al Saqf Consulting

Technical Trading Company

2.5 - 15

project under construction

HOSPITAL IN SOUTH SALALAH

Ministry of Defence

Ibn Khaldun

International Contractors Company

16 - 30

project under construction

PSYCHIATRIC HOSPITAL AT AL AMERAT

Ministry of Health

Khatib and Alami

Bahwan Contracting Company

107

project under construction

RENOVATION OF SHERATON OMAN HOTEL

Al Hasher Group

Atkins

Zubair Furnishing

project under construction

THE MALKAI AT BARKA

Al Maeen Real Estate Services Company

Triad Oman/AW2

Not Appointed

OFFICE BUILDING AT AL KHUWAIR

Ministry of Housing Electricity & Water

Al Hatmy Engineering Consultant

Burj Oman

2.5 - 15

project under construction

BONE MARROW TRANSPLANT UNIT BLOCK

Sultan Qaboos University Hospital

Gulf Engineering Consultancy

Not Appointed

16 - 30

project under design

OMAN

250

project under design

To list your projects in this section email details to editor@ConstructionWeekOnline.com

PROJECT TITLE

THE DUQM PORT WILL BE COMPLETED BY Q2 OF 2012.

CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4 435 6375, OR EMAIL SHISHIR.DESAI@ITP.COM

Supplier focus

AL MUHAIDIB TECHNICAL SUPPLIES

SUPPLIER OF FASTENERS AND FIXING MATERIALS Al Muhaidib Technical Supplies (MTS), a subsidiary of the Al Muhaidib Group, is a leading Saudi-based supplier of fasteners and fixing materials for industries such as construction, energy and oil and gas. Established in 1975, the company serves customers in the GCC region through its 17 branches in Saudi Arabia and Dubai, and 37,500m² of warehouse space in Riyadh, Dammam and Jeddah, which accommodates more than 20,000 types of fixing materials such as bolts, nuts, washers, and fasteners. These items are made of iron, steel, stainless steel, copper, aluminum, and plastic. MTS is registered to ISO 90012000 Quality Management System as part of its effort towards improvement of services and product quality, as well as to solidify its management structure. In 2008, MTS acquired two established companies - Saudi Bea Fasteners Manufacturing (Saudi BEA), and Metal Industries and Technical Services Company (Mits). Saudi BEA is an ISO 9001:2000 certified and registered to Saudi Aramco and its products are used by the petrochemical, energy and aerospace industries. Mits is an approved vendor for large companies such as Saudi Electric Company and Royal Commission. This year, MTS has focused on increasing its market share to compensate for the downturn, which has affected the construction sector in the region. The company employs around 350 people. 

To advertise please call +971 4 435 6375 or email shishir.desai@itp.com

SPECIALIST SERVICES §

¦SPECIALIST SERVICES

MTS MANUFACTURES AND SUPPLIES BOLTS, NUTS, WASHERS AND FASTENERS.

BUILDING MATERIALS

CONSTRUCTION WEEK SEPTEMBER 26–OCTOBER 2, 2009

BUILDING MATERIALS

HARD LANDSCAPING SUPPLIER

CONCRETE

ยง SPECIALIST SERVICES

> For directory information visit www.ConstructionWEEKonline.com/directory

CONSTRUCTION/MANUFACTURERS

CONSTRUCTION CHEMICALS

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DEWATERING

Engineering Works Foundation Infrastructure (L.L.C.) P.O. Box: 111245, Dubai - U.A.E. P.O. Box: 2752, Abu Dhabi - U.A.E. Tel: +971 4 340 9022 Fax: +971 4 340 8952 E-mail: brian@ewfi.ae

SPECIALIZED DEWATERING SERVICES: โ ข Specialized in Deepwell, Wellpoint, Open pumping techniques โ ข Professional Service

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OTAL (LLC) Dubai, U.A.E Phone: (+971-4) 267 9646 e-mail: otal@eim.ae website: www.otal.ae

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¦SPECIALIST SERVICES CONSTRUCTION PRODUCTS AND SERVICES MADE EASY IN CONSTRUCTION WEEK’S DIRECTORY TO ADVERTISE PLEASE CALL +971 4 435 6375, OR EMAIL SHISHIR.DESAI@ITP.COM

CONTRACTORS/MANUFACTURERS

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FLOORING

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CONSTRUCTION WEEK SEPTEMBER 26–OCTOBER 2, 2009

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SEPTEMBER 26โ OCTOBER 2, 2009 CONSTRUCTION WEEK

CITY UPDATE YANBU, SAUDI ARABIA

Reﬁned development

YANBU IS POISED TO BE THE NEXT HOTBED FOR CONSTRUCTION.

SAUDI ARABIA’S SECOND PORT HAS A VERY BRIGHT FUTURE AND RICH PICKINGS FOR CONTRACTORS By James Boley

lthough less well known than Makkah, Jeddah or Dammam, it looks highly likely that in years to come, Yanbu will be a major hotbed of construction within Saudi Arabia. Yanbu’s rise to prominence began in 1975 when the Saudi government designated what was then a small town to be one of two new industrial centres – the other being

Jubail on the east coast. Since then, Yanbu has grown to be KSA’s ‘second’ port after Jeddah as an important petroleum shipping terminal. The city also acts as a port for the important city of Madinah. As a result, the city of 250,000 provides some strong opportunities for construction projects relating to the petrochemical industry and its related infrastructure. This summer, King Abdullah opened several projects in the industrial city, including the US $5.3 billion (SR20 billion) Yanbu

CONSTRUCTION WEEK SEPTEMBER 26–OCTOBER 2, 2009

National Petrochemicals Company, road and bridge projects worth $35 million and other developmental projects worth $533 million, all based in Yanbu 2 Industrial City. He also opened a Sabic development, as well as a $800 million power capacity expansion. Meanwhile, a $3.7 billion desalination plant has been approved, and an expansion plan for the Prince Abdul Mohsen bin Abdul Aziz Airport has been launched. Conﬁdence in the future of Yanbu remains very high. “Jubail and Yanbu are very successful stories. When they were started in the 1980s everybody was saying ‘these people are crazy, don’t bother doing it’ – everybody was gambling about its failure and now everybody is talking about its success. It proved to be the right decision at

RAJESH RAGHAV/ITP IMAGES

CARLOS ALVAREZ/GETTY IMAGES

“SAUDI ARABIA’S ECONOMY AND RESOURCES ARE SOUND, AND IF IT IS THE WILL OF THE GOVERNMENT TO SUPPORT IT, THEN IT [ECONOMIC CITIES] WILL GO ON” medical staff accommodation planned for the industrial city. Construction on the $12 million clinics package by Rezayat Trading began in Q1 this year and is expected to be completed by Q1 2011. 

AL SHAIKH SAYS YANBU WILL BE A SUCCESS STORY.

KSA’S KING ABDULLAH BIN ABDUL AZIZ AL SAUD.

the right time,” says Saudi Arabia’s deputy minister for town planning, Dr Abdulrahman Al Shaikh. “I know there are some people who have their doubts about the success of the economic cities, but this is the nature of people. I believe they will prevail, because Saudi Arabia’s economy and resources are sound, and if it is the will of the government to support it, then it will go on.”

Despite the economic slowdown, Yanbu appears to be a city getting back on its feet. At the end of June, Saudi Aramco and ConocoPhillips reopened the tender to construct a 400,000bpd reﬁnery project in Yanbu, worth an estimated $12 billion. Bids need to be submitted by January 31. Meanwhile, the current tenders list for the city indicates strong growth in the healthcare sector, with several health clinics and

TOP PROJECTS Waterfront Development at Yanbu - Dredging Package Expansion of Plaster Plant Public housing Doctors’ housing Yanbu industrial College and Yanbu Technical Institute dormitories

$100m $100m $80m $50m

$45m

ConstructSAFE Construction Week and Build Safe UAE have come together to bring you an illustration to communicate health, safety and welfare risks to all construction stakeholders (especially the workforce) to prevent accidents on site. Exclusive to Construction Week.

CONSTRUCTION WEEK SEPTEMBER 26â&#x20AC;&#x201C;OCTOBER 2, 2009

> For the ConstructSafe comic strip log on to www.ConstructionWEEKonline.com

Introducing the Construct Safe lead characters (from Left to Right)

experience. Poor health, safety & welfare knowledge

Raoul: Senior Supervisor with 30 years experience and good health, safety & welfare knowledge

Farik: Apprentice labourer new to the industry with no experience. Poor health, safety & welfare knowledge

Achmat: Construction labourer with little

Illustrations by Jincom Publishing

If you have a health & safety or environment issue that you would like to see addressed through this comic strip email your ideas or comments to editor@ ConstructionWeekOnline.com. Alternatively, log onto www. ConstructionWeekOnline.com to see the comic strip.

SPONSORED BY: Murray & Roberts Contractors

SEPTEMBER 26â&#x20AC;&#x201C;OCTOBER 2, 2009 CONSTRUCTION WEEK

DIALOGUE NATASHA GANGARAMANI Better together As the construction industry struggles to complete projects on time, Al Fara’a Properties director Natasha Gangaramani explains how working within a group can help a business deliver the goods

By Sarah Blackman

What does Al Fara’a Group consist of?

Al Fara’a is an integrated construction group and has been in the UAE for about 30 years now. We have Al Fara’a Contracting, which is our construction arm, and we have Al Fara’a Properties. Unibeton Ready Mix is also part of our group and has supplied concrete to projects such as Le Grande Chateau, which has recently been handed over in Jumeirah Village. In addition, we have Al Fara’a Belgium Aluminium and Glass Industries; and Al Fara’a Joinery. The fact that we are an integrated group allows us to start a project very early and make sure any issues are resolved quickly.

Do you tend to award contracts to the companies within the Al Fara’a Group?

Whenever we tender a job we are fair in that we evaluate pricing and compare quality. Our buildings are going to be standing the test of time and we wanted to ensure that everything we do is of the highest quality. Unibeton was very competitive with its pricing when it made a bid for Le Grande Chateau and we knew the quality of its product is excellent. But, we do an across the table evaluation, whenever we have a project, so our group companies will not always win a contract. Do you have projects outside Jumeirah Village?

We have Bellatora Residences in Dubai Maritime City and Burj Al Fara’a is a commercial tower in Jumeirah Village, Image Residences in Downtown Jebel Ali. These projects are which is currently under mobilisation and is due to start very close to tender and in the last stages of design. We cannot construction anytime soon. This project will be completed reveal information regarding the tenders right now. in around 24 months and has 40 floors. Manhattan has been How do you ensure the safety of your construction workers? under construction for the last eight months and has reached Al Fara’a Group has a separate safety department for all the first floor. It has three basements, so it took a while to labourers. We also have a labour university so we can enhance come above ground. We will be delivering this in the last our workers’ skills and train them. At the same time, while quarter of 2010 and Mulberry Mansions, which incorporates they are attending the university, they are trained on safety. a mix of Italian and French architecture, will be delivered We use constant training, dialogue and visuals that help around the same time. Construction on Le Grande Chateau workers learn not to take safety measures for granted. We have started in January 2007 and was completed in July this year. safety managers on all sites and we have a communications It consists of 170 apartments and a string of townhouses. department that is also dedicated to safety. This is important Jumeriah Village has about 900 plots and, within those plots, because we have a labour force of about 16,000. we were the first to start construction and the first to deliver a project. This is a huge milestone for us. Whatever project Are you planning to expand outside the we launch we are very, very quick to UAE and work on an international level? get to ground and to mobilise so we can Natasha Gangaramani’s was born into We have been looking at expansion for a commit to deliver on time. while now and we have been in dialogue the second generation of the family who owns the UAE-based Al Fara’a Construction, Why did you decide to integrate the with certain countries in the GCC and French/Italian theme? Industrial and Property Group. Backed outside the region. It’s just about finding with an academic degree in Electrical You don’t see this kind of beautiful the right opportunity. We have a few Engineering, Gangaramani officially architecture in Dubai anymore. What joint ventures in place that obviously assumed her role in the business in 2006 you see is people trying to make quick benefit us here in the local market. as the director of Al Fara’a Properties, the and easy design decisions but we really But, now we are looking at expanding wanted to invest in the architecture so flagship subsidiary of the Al Fara’a Group. In outside and partnering with strong firms the future, she envisions a bigger and more residents can be proud of where they are who have parallel values and product formidable reputation for the company, staying. Manhattan is the same – it is a knowledge. We want to enhance our within the region and on a global level. very wide building and it reminds me of quality; we don’t want to take a huge buildings in New York. step back. What stages are your projects at within Jumeirah Village?

CONSTRUCTION WEEK SEPTEMBER 26–OCTOBER 2, 2009

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