Big Project ME December 2016

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129

DECEMBER 2016 meconstructionnews.com

THE BUSINESS OF CONSTRUCTION

leading lights Big Project Me celebrates the Gcc cONstrUctION INDUstrY’s achIeVeMeNts FOr 2016

GETTING CLOSER TO THE TOP...

Getting closer to the top of the tallest mountain in the UAE will soon be a lot easier, thanks to the fleet of Volvo construction equipment used in the building of the road to the Jebel Jais mountain. When it’s finished, the route will run from Ras Al-Khaimah right to the 1,910 metre summit. The road has already become a popular destination for motoring enthusiasts, who like to show off what their machines can do. But when the road runs out, that’s where the Volvo VIDEO http://goo.gl/FPsU43

operators show off their machines. And it’s impressive to see what they can do. If you want to get closer to the action, scan the code and watch the video.

Building Tomorrow.

Contents

Issue 129 December 2016 06

24

36

40

46

50

04 ME Construction News.com

16 Bahrain real estate overview

40 The Changing Nature of BMS

06 $196m Pearl Qatar projects

18 KPMG

46 The house MBRSC built

OnlIne

The biggest stories from Big Project Middle East’s home on the web The bIg pIcTure

UDC launches three new projects at Pearl Qatar development

12 DEWA CEO visits Noor 1 InTernaTIOnal news

DEWA chief travels to Morocco to visit renewable energy project

14 Getting paid in tough times analysIs

Peter Anagnostou tells contractors what they need to do to protect themselves at a time when markets are getting tougher to work in

MarkeT OvervIew

Cluttons report examines Bahrain real estate market and performance as 2016 closes In prOfIle

Gavin Davids meets Andrew Weir and Sidharth Mehta of KPMG to discuss regional construction and real estate markets

24 The Leading Lights awarDs

Big Project ME celebrates the achievements of the construction industry for 2016

36 Answering the Call prOjecT prOfIle

First Solar talks about the work done on the Shams Ma’an project in Jordan

TechnOlOgy

Koen Bogers explains how Siemens is moving BMS into new territory susTaInabIlITy

Big Project ME gets a look at the Sustainable Autonomous House built by MBRSC

50 ME BIM Summit evenT revIew

Big Project ME recaps the first-ever ME BIM Summit, held on November 1, 2016

60 Stadiums on Track lasT wOrD

The Supreme Council for Delivery and Legacy provides an update on construction of Qatar’s 2022 World Cup stadiums December 2016 1

Introduction

Bring on the new year

H

ere we are, already at the end of 2016. It feels like this year has gone by so quickly! Perhaps it’s because we, as a magazine, have had such a lot going on over the last few months?

As we move into 2017, I’ve like to indulge in a bit of a look back over the year. We held our first ever conference on November 1, 2016 – the ME BIM Summit – at the Jumeirah Beach Hotel. While the event itself was held at the end of the year, it was the culmination of months of effort and planning. I’m delighted it went down so well. We’ve had quite a lot of feedback about it, and it’s heartening to see that all our effort was not in vain. Of course, there was a bit of constructive criticism, and that will be taken on board as we gear up to prepare for round II next year!

Watch this space, because we’re not intending to rest on our laurels.

Also in November, we held our annual Big Project ME Awards, once again at the Godolphin Ballroom at the Jumeirah Emirates Towers Hotel. It was a pleasure seeing you all again this year, and it was most pleasing to see quite a few new faces as well. I’m looking forward to catching up with you over the course of the year. I’m sure there’s going to be plenty to talk about, especially with the way things are shaping up!

To complete the set, we also had our second ever ME Consultant Awards,

eDItorIAL eDItor gAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480 oNLINe eDItor BEN FLANAgAN ben.flanagan@cpimediagroup.com SUB eDItor AELRED DOYLE aelred.doyle@cpimediagroup.com

PUBLISHING DIrector RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 eDItorIAL DIrector VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5472 Supported by

M

‫ﺟﻤﻌﻴﺔ اﻟﺸﺮق اﻻوﺳﻂ ﻟﺼﻨﺎﻋﺎت اﻟﻄﺎﻗﺔ اﻟﺸﻤﺴﻴﺔ‬

Middle East Solar Industry Association

Empowering Solar across the Middle East

2 December 2016

ADVertISING coMMercIAL DIrector JUDE SLANN jude.slann@cpimediagroup.com +971 4 375 5496 coMMercIAL DIrector MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com MArKetING MArKetING MANAGer LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498

this time at the Ritz-Carlton JBR Walk, which was a rousing success as well.

All in all, it’s been a pretty good second half of the year for the Big Project ME team. And I would like to give a special note of thanks to our Marketing and Events team, led by Lisa Justice, who were the driving force behind our events. We couldn’t have done it without them.

Now, looking at the year just passed, it seems like everyone I’ve spoken to over the last 12 months has been quite apprehensive about how things are shaping up.

However, there are still reasons to be optimistic, and although times may be challenging, they also represent significant opportunity for the industry. Perhaps it’s time for us to be bold and seize the moment.

And on that note, I’d like to wish you all a happy 2017. May the coming year be a successful one for all of us in the GCC construction industry!

Gavin Davids editor gavin.davids@cpimediagroup.com @MecN_Gavin

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PUBLISHeD By

Art DIrector SIMON COBON PHotoGrAPHy MAkSYM PORIECHkIN cIrcULAtIoN & ProDUctIoN DIStrIBUtIoN MANAGer SUNIL kUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476 ProDUctIoN MANAGer VIPIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713 WeB DeVeLoPMeNt MOHAMMAD AwAIS SADIq SIDDIqUI SHAHAN NASEEM

Registered at IMPZ PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com FoUNDer DOMINIC DE SOUSA (1959-2015) PrINteD By PRINTwELL PRINTINg PRESS LLC © Copyright 2016 CPI. All rights reserved while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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READERS’ COMMENTS

CONSTRUCTION

BACkINg OFF

Sheikh Mohammed opens $1bn Dubai Canal

ON OFF-PLAN SALES?

CONSULTANT

ME Consultant Awards 2016 a massive success

In pictures: Big Project ME Awards 2016 winners

The UAE’s Khalaf Al Habtoor has called for an end to offplan property sales. This is a very interesting point for the real estate industry to ponder. On one hand, many individual property investors have become stuck when developers fall behind on projects.

But then, the industry would need to reconsider its entire financing model for new projects.

Name withheld, via email

CONSTRUCTION

Laing O’Rourke in line for Dubai South project

HOUSE RENTS ARE STILL FALLINg

Rents have been falling in Abu Dhabi for some time (Abu Dhabi rents

CONSTRUCTION

fall amid economic

Dubai invites proposals for Al Maktoum airport works

uncertainty – report, November 20). Lots of people have lost their jobs and supply exceeds demand. Many property agents won’t admit this – but it’s time to drive a bargain

INFRASTRUCTURE

Dubai to build GCC’s biggest hydroelectric power station 4 December 2016

Video: MB Crusher machines at work in Saudi Arabia quarry

when negotiating.

Simon Castle, via website

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The big picture

Five-year plan The three projects are part of UDC’s five-year business plan for the development.

UDC inks $196m Pearl Qatar project deals United Development Company announces three projects at The Pearl – Qatar United Development Company (UDC) has announced the signing of three contracts worth a total of 716 million Qatari riyals ($196.6m) to develop three new construction projects at The Pearl – Qatar.

The agreements will see UDC develop the Abraj Al Mutahidah Towers in Viva Bahriya, in addition to infrastructure in Giardino Village and ten villas to be constructed in the latter precinct. Total investments in the projects are worth $329.5 million, UDC said in a statement.

These contracts are in alignment with UDC’s fiveyear business plan, aimed at revitalising investments in new infrastructural developments at The Pearl – Qatar. This includes modernising and expanding road networks and enabling the residential locale to be prepared for the new urban plan set for the project.

Among the developments 6 December 2016

planned for the project are a hospital and school in Giardino Village, both of which will offer investors viable projects to invest in The Pearl – Qatar, UDC said.

“It is certain that the implementation of viable investment projects, such as infrastructure development and construction of luxurious villas in Giardino Village precinct, in addition to the building of Al Mutahidah Towers, which is an ambitious project comprising 480 housing units of different sizes and specifications with facilities and retail to serve this residential complex, will attract businessmen and property investors to our

480

Number of housing units in Al Mutahidah Towers development

market,” said Ibrahim Al-Othman, president and CEO of UDC. Al-Othman welcomed the first-time cooperation with the three companies, highlighting the expertise and overall competitiveness they bring to the project.

Leighton Contracting Qatar has been commissioned to carry out the construction works on the Al Mutahidah Towers’ main building. Comprising approximately 480 apartments in the beachfront precinct of Viva Bahriya, the project is expected to be completed in the fourth quarter of 2019.

“Working on a variety of property units, we believe that this investment into Viva Bahriya will certainly cater to a good mix of residential needs,” said Emad Darwish A Al-Darwish, chairman of Leighton Contracting Qatar. “Ranging from studios, apartments and penthouses, this

project will serve to enrich the portfolio of Leighton Contracting Qatar, and thus we would hope to leave a lasting mark within The Pearl and the country as a whole,” added Jeremy Lai, executive general manager of the contractor.

Meanwhile, Navayuga Engineering Co will carry out infrastructural works at Giardino Village, UDC said. The company’s general manager (Qatar), Ravi Kishore Chunduri, expressed his company’s eagerness to implement UDC’s plans for state-of-the-art infrastructure.

He said that the new district would showcase a range of fully integrated services for residents.

Finally, the ten luxury villas being constructed in a private precinct of Giardino Village will be built by Promer Qatar. The villas are scheduled to be handed over in 18 months, and will be put up for sale in the short term, the statement from UDC said.

The big picture

DSI trims losses after ‘relentless’ cost cuts Dubai contractor posts net loss of $22 million in third quarter of this year Drake & Scull International (DSI), a Dubai-based construction firm, has posted a net loss of $22.05 million for the third quarter of 2016, a major improvement on 2015’s net loss of $268.1 million for the same time period, the company announced.

The contracting giant generated revenues of $236.5 million, an increase from the $118.1 million registered during the same time period last year. However, net debt for the company increased to $598.9 million from $517.2 million, while the order backlog reduced to $2.39 billion from $3.34 billion.

According to the figures released by DSI, the nine-month 2016 financial highlights showed that revenue generated was $735.1 million, compared to the $762.3 million posted in 9M 2015. Net loss reduced significantly as well during that period, from $258.9 million to $80.86 million in 2016.

The company also registered a negative operating cash flow of $82.49 million versus a negative $93.65 million for 9M 2015.

“During the past six months we have embarked on a thorough and detailed review to identify risks and opportunities,” said Wael Allan, CEO of DSI. “We have concluded a series of new management appointments which are critical to the continuity of the business, and we have established a performance-driven and strong culture with emphasis on cost reduction while maintaining client focus and performance excellence. Concurrently, we have introduced additional corporate governance and compliance policies to foster a culture of ownership, accountability and operational rigour.”

“Our order backlog is slowly moving towards a higher-value, higher-margin portfolio of projects with a focused geographical diversification, predominately in the UAE”

“We maintained our revenues for the two consecutive quarters and continued to decrease our expenditure through our relentless cost-cutting programme. Our order backlog is slowly moving towards a higher-value, highermargin portfolio of projects with a focused geographical diversification, predominantly in the UAE. Our disciplined approach over the past six months is shaping a leaner, more adaptable company,” he asserted.

The third quarter 2016 losses were a reflection of the prolonged weakness of the construction sector in markets like Saudi Arabia and Qatar, DSI said. To a lesser extent, the broader GCC and Middle East regions also contributed to the decline, it added.

“Despite achieving progress in our home market the UAE, the

prolonged market headwinds and economic uncertainties, especially in what previously was one of our core markets [Saudi Arabia], has made us realise that it is time to be bold and engage in a real transformation,” Allan said. “We have commenced our financial review to assess our working capital and funding requirements with respect to our individual business units and the company as a whole.

The outcome will necessitate difficult executive decisions.”

The company continues to pursue an aggressive cost-cutting strategy, with third-quarter core SG&A, before accounting for provisions, reduced by $2.99 million, a decline of 16% yearon-year. The first nine months of 2016, SG&A was reduced by a total of $11.70 million, a decline of 19% year-on-year.

Focus on diversification Wael Allan says DSI are focusing on expanding their project portfolio to a more ‘focused geographical diversification”.

December 2016 7

The big picture

Qatar wage system sees worker complaints ‘drop 30%’ Number of complaints against employers in Qatar drops ‘significantly’ The number of complaints filed against employers in Qatar has “dropped significantly” since the introduction of a new Wage Protection System (WPS), officials say. In the first ten months of 2015, the number of worker complaints received by the government was 3,845.

However, with the WPS fully enacted, complaints for the first half of 2016 decreased by 30.4%, according to a statement via the Qatar News Agency (QNA).

“We are pleased to observe the very positive impact that recent government initiatives are having on protecting migrant workers

in Qatar. We are clear that challenges remain for a minority of individuals in this country, but these figures demonstrate that we are working hard to combat these issues through ongoing reforms of Qatar’s labour laws and practices,” said the Minister of Administrative Development, Labour & Social Affairs, Dr Issa

30.4% Decrease in number of wage complaints in H1 2015

bin Saad Al-Jafali Al-Nuaimi.

Qatar has come under fire for labour conditions in the country, and has banned the cash-inhand salary payments that some campaigners say put workers at risk. It implemented the WPS a year ago, obliging all privatesector employers in Qatar to open bank accounts for their workers and transfer wages electronically.

“The initiative is designed to end the cash-in-hand culture that puts workers at risk throughout the world. In addition, it also grants new powers to the Qatari authorities to monitor wage payment and ensure that migrant

Keeping track of payments The implementation of the Wage Protection System allows Qatar to ensure greater transparency and protection for workers.

8 December 2016

workers are being paid in full and on time, as stipulated in their contracts,” the QNA said.

Over 37,916 companies in Qatar are now fully compliant with the WPS, according to October 2016 figures from the Ministry of Administrative Development, Labour & Social Affairs (ADSLA).

“The remaining companies, which employ approximately 15% of Qatar’s workforce, have also committed to joining the WPS and are currently in the process of meeting all requirements. As a result, over 1.8 million of Qatar’s 2.1 million salaried workforce now receive their payment via bank transfer,” the QNA said. “The number of uncovered workers is expected to drop in the coming months, as government labour inspectors identify remaining companies that continue to operate outside of the WPS.” Al-Nuaimi said: “Throughout the world, some employers use cash-in-hand payment to exploit low-income workers. Through the implementation of the Wage Protection System, Qatar has introduced a paper trail that ensures greater transparency and greater protections for workers at risk of being cheated out of full financial compensation for their efforts.”

Since the introduction of the system, 385 violations have been issued against companies enrolled in the WPS for failing to pay salaries on time. Punishments include fines of QR2,0006,000 and a prison sentence of up to one month, or both.

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The big picture

3 4 1. DEWA CEO visits NOOr POWEr stAtiON iN MOrOCCO Saeed Mohammed Al Tayer, managing director and CEO Dubai Electricity and Water Authority (DEWA), recently visited the Noor Power Station 1 in Ouarzazate, south central Morocco, established by ACWA Power. He was welcomed

by ACWA Power officials Mohammed Abunayyan, chairman, Ishaq Alhammadi, UAE country manager and Badis Darraji, Morocco country manager, according to a DEWA press communiqué.

Noor 1 station spans over 450 hectares and uses half a million mirrors. It has an installed capacity of 160MW and is based on the IPP model.

“Through this visit, we aim to enhance collaboration on clean solar energy. Clean energy is a great opportunity for the future, as demand keeps rising around the world,” said Al Tayer.

DEWA plans to build the largest CSP (Concentrated Solar Power) project in the world, using the Independent IPP model. When operational in April 2021, it will generate 1,000MW using this technology by 2030 in the Mohammed bin Rashid Al Maktoum solar park, a $13.6 billion Dubai government initiative.

12 December 2016

1.1%

1

UK construction volumes fell by 1.1% in the last quarter, according to the Office of National Services

2. POrtuguEsE-turkish CONsOrtiuM WiNs MAjOr OMAN POrt iNfrAstruCturE WOrk A consortium of Portuguese engineering and construction company MSF Engenharia and Turkish contractor Serka Taahhut has won a major package of infrastructure works at the port of Duqm in Oman. The $281 million contract, awarded by the Special Economic Zone

Authority Duqm (Sezad), involves the construction of roads, infrastructure and buildings at the commercial terminal and operational zone areas in the Port of Duqm.

The entire work is likely to be completed in 30 months, according to a statement from MSF. Under the agreement, the MSF consortium will complete work on infrastructure (potable water, firefighting, storm water drainage, sewerage,

pumping stations, electrical and telecommunications networks). The project also includes road and paving works, buildings (offices, electrical services buildings, warehouses, workshop and maintenance buildings), port crane beam and track works.

With this project, MSF makes its first foray into Oman’s construction market.

The Portuguese company has contracts in Qatar and the UAE.

The big picture

4. ABB sAys OrDErs hAvE sLiPPED fOr sixth strAight quArtEr

$30.8bn Amount of debt owed by Russian builders to banks

2

74

Number of people killed in scaffolding accident at Chinese power plant project

3. DENMArk’s fLsMiDth sigNs $200M DEAL With irAq CEMENt CO FLSmidth, a Danish mining and cement industrial giant, announced that it has signed a contract worth more than $200 million with Iraq Cement Co, to supply a total of 6,000 tonnes of cement per day to the production line for the Al Muthana region.

The contract is a full EPC order, comprising engineering,

all FLSmidth equipment supplies, erection and construction. It will also include training and commissioning once completed. The plant will feature state-of-theart equipment, including the latest technology to ensure an environmentally friendly and energy efficient production process, the company said in a statement.

“By signing the contract, Iraq Cement Co is making the first

step in raising financing for the project, which is an important milestone in their pursuit to realise the project. We are pleased to have been selected to support them on that journey,” said Per Mejnert Kristensen, group executive vice president of the Cement Division.

“FLSmidth has a long history in Iraq and the Middle East, and is maintaining its leading role in serving the rapidly expanding cement market.”

ABB Group, the international infrastructure solutions provider, said its orders slipped for a sixth quarter, with a host of external factors likely to affect performance for the foreseeable future.

Looking at demand in Asia, Middle East and Africa (AMEA), the company said that it registered a mixed response.

“India continued to grow, and China continued its investment activities in power transmission and robotics.

Total orders for the region were down 7% as strong order development in India could not offset declines in China and the UAE. Base orders declined 10%,” a statement from the company said.

European demand was also dented by the Brexit decision, as well as “considerable investment delays”, which Ulrich Spiesshofer, ABB chief executive, blamed on the US election.

“We face continued adverse market conditions. That will not go away quickly,” Spiesshofer said during a conference call with international media. “Brexit had a massive dampening effect.” He added that he was unable to predict when ABB would return to growth.

December 2016 13

News analysis

How to get paid in a tougHening market witH low oil prices Peter Anagnostou, senior legal consultant at DLA Piper, looks at how companies need to adapt to succeed As 2016 draws to a close, the oil price is caught in a narrow range a little above $40 a barrel.

The World Bank forecasts it will increase next year, but only to around $55 a barrel. It is therefore becoming clear that those doing business in the Middle East need to adapt to succeed in this increasingly competitive market.

This evolution in doing business in the Middle East is already evident, with a number of contractors bidding selectively for construction projects based overridingly on the level of risk they place on whether an employer is likely to pay them when payment is due.

This shift in attitude of main contractors and subcontractors is largely due to the difficulties they faced after 2008 and the lessons learnt across the board. However, despite this development in the way contractors are selecting projects, the bulk of the disputes in the region have retained a significant element associated with non-payment claims.

In Dubai, a city relatively insulated from the volatile oil price, contractors are increasingly complaining about not being paid and seeking advice on the remedies available. This is despite a recent announcement by the Dubai Statistics Centre that the 14 December 2016

rate of construction has increased by 90.6% in 2016, compared to the number of buildings completed in 2015 during the same time period.

So what can a contractor do to protect against non-payment, and what remedies are available?

When tendering for a project, a contractor would benefit from adopting the following approach in order to protect it from the immediate impact of non-payment: 1. Cost Estimates – Ensure that all cost estimates are based on current market conditions and on the details of the particular project, and are not simply adopted from the previous project.

2. Price Fluctuations – Ensure that any future price fluctuations for materials are considered when preparing a cost estimate and budget.

3. Budget – Ensure that the budget is realistic and accurately reflects the planned programme of works, including adequate cash flow or working capital to take on the project. Remember that the majority of construction projects in the regions are delayed and rarely achieve the scheduled completion date.

4. Risk Management – Ensure that all risks associated with delay are properly considered and that a realistic programme is agreed in

realistic budgets Ensuring budgets are realistic and accurate reflections of the planned programme of works can help a contractor protect itself from issues further down the line.

News analysis

the contract. It is also important to consider the non-availability of specified materials and products and the cost implications of this.

5. Contract Negotiation – Ensure that the contractor has properly reviewed all provisions of the contract before signing.

The draft contract should be sent to the contractor’s lawyer before signing, to ensure that the contract terms protect the contractor’s position. In particular, the payment terms in contracts often favour the employer and provide no right of suspension or recourse in the event of non-payment by the employer. It may also be possible for the contractor to renegotiate the variation/change order mechanism to provide for pre-payment and include incentives for the employer to make payments on time.

6. Document Management – Ensure that all documents related to the project are kept in one central location and in good order.

One of the most common problems for contractors in this region is failing to establish and maintain a good document management system for the project. This should be done before works commence. There are also many third-party providers who offer systems that can be used both during the project and, if necessary, during a future dispute.

7. Joint Venture – Many contractors have decided to work with other contractors in a joint venture relationship to reduce each other’s financial exposure, increase the quality of performance through cooperation and provide more leverage when dealing with the employer. The contractor should carefully consider potential joint venture partners and execute any such agreement prior to the execution of the contract with the employer.

8. Training – Ensure that all staff, including management, are

“The construction industry in the Middle East is continuing to grow and develop, and contractors will need to adapt to be increasingly competitive in order to succeed” trained in relation to delay and the accepted causes of delay, the contractual method for claiming and the variation mechanism.

This includes training on how to prepare a clear and concise claim that demonstrates an entitlement and refers to the relevant contractual term.

When seeking payment, we suggest that the contractor consider arming itself in the contract with the following provisions: 1. Suspension – Certain contracts allow the contractor to suspend works where payment has not been made in time (e.g. FIDIC Red Book). It is important that the contractor fully understands the suspension provisions of its contract prior to suspending. Suspending works does not automatically result in

payment being made; rather, it may be used by the contractor to exert leverage over an employer which is keen for the project to be completed without delay. Where the contract does not provide the contractor with the right to suspend, the contractor may also wish to consider its options under local law. UAE law, for example, has been applied by the courts in the past to permit suspension of work, where that is a proportionate response to the employer’s default.

2. Termination – Another, more serious remedy available to the contractor might be to terminate the contract, a mechanism expressly provided in standard form contracts such as the FIDIC Red Book. Again, it is important that the contractor fully understands the termination provisions of its contract prior to terminating. By exercising a right to terminate, the contractor is also significantly reducing any chance of resolving the payment dispute amicably. The local courts might also provide assistance to a contractor with no express right under the contract to terminate. UAE law, for example, provides the contractor with an option to file an application with the local court granting termination of the contract.

The construction industry in the Middle East is continuing to grow and develop, and contractors need to adapt to be increasingly competitive in order to succeed. The suggested measures above could be valuable to a contractor seeking to limit exposure to non-payment in the construction market and could act as protection against some of the common problems faced by contractors in the region.

Contractors should, however, always exercise caution and seek legal advice before executing any legal remedies available for non-payment.

December 2016 15

Market report

Bahrain real estate market ends 2016 with continued staBility

Key commercial submarkets remain unchanged during first nine months of 2016

Despite slowing economic conditions which continue to hamper the property market in the Kingdom, there has been a marked stabilisation across most real estate sectors in H2 2016 that is expected to carry into 2017, according to international real estate consultancy Cluttons.

Cluttons’ Bahrain 2016/2017 Winter Property Market Outlook report highlights the resilience of rental budgets in the residential market which, in the face of economic fallout and rising inflation, continue to outperform expectations. In the office market, the stability borders on stagnation, with Cluttons finding largely no change in rents during the first nine months of 2016. The same can be said for a remarkably sluggish retail real

16 December 2016

2.9% Bahrain GDP growth forecast in 2016

.25%

Year-on-year increase in residential units estate market, with rents in this sector expected to hold steady for another six to twelve months.

“The stabilisation in rents across the sector is reflective of weaker underlying fundamentals in the market. Economic fragility and the ongoing impact of the

low oil price environment have curtailed job creation levels and dampened overall sentiment, and this will continue to hamper the Kingdom’s property market during the fourth quarter, continuing into H1 2017,” says Harry Goodson-Wickes, head of Cluttons Bahrain. “The few exceptions where we have seen growth include developments such as Amwaj Islands for the residential market, the Financial Harbour for the office market and Isa Town for the retail market.”

Residential Market Cluttons’ research shows that with the exception of Amwaj Islands, where there was a marginal BD50 per month rise in rents for four-bedroom villas, no other submarket in

the Kingdom registered any change in rents during Q3.

“Our experience shows that quality and perceived value for money continue to drive interest in newly launched schemes, suggesting that tenants are very much in the driving seat and can cherry pick from a range of options on the market,” explains Goodson-Wickes. “At Segaya Views and Cebarco Tower, for instance, we have recorded a steady level of enquiries for the 140 furnished one-, two- and three-bedroom apartments on offer, with rents starting from as little as BD650 per month.”

“Households in Bahrain have been faced with some very challenging headwinds over the past 12-18 months, with subsidy removals and job security fears

Source: Cluttons, Oxford Economics

no change in rents The Cluttons’ report has found no change in rents for the first nine months of 2016, for the office market in Bahrain.

Market report

Average residential rents during Q3 across key submarkets Apartments

Average apt rent

Villas

Average viila rent

1400 1200 1000 BD per month

denting confidence and driving down budgets, but we appear to be entering a period of stability with the market flattening out,” adds Faisal Durrani, Cluttons’ head of Research. “We had previously expected to see rents decline by 5% on average through the course of the year, but we have now revised up our forecasts for the residential rental market, with little to no declines now anticipated as we head toward the end of 2016.”

800 600 400 200 Juffair

Amwaj Islands

Al Seef

Reef island

Saar

Adliya

Average office rents during Q3 across key submarkets Fitted out space

Shell and core

8 7

BD per square metre

6 5 4 3 2 1 Al Seef

Bahrain Financial Harbour

Diplomatic area

Amwaj Islands

Average retail rents during Q3 across key submarkets 14 12 10 BD per month

Office Market Similar to the residential market, office rents across the Kingdom’s key submarkets remained largely unchanged during the first nine months of the year. The only exception was a BD0.50 per sqm rise in Financial Harbour (BD8 per sqm) and Amwaj Islands (BD5.50 per sqm) for fitted office space.”

“The limited activity in the market continues to be largely driven by internal relocation activity, although renewed stability across the Kingdom has also helped the market settle,” Goodson-Wickes says. “Landlords, however, remain reluctant to adjust rent downwards as they are already at levels not seen in over four years.

We have already seen concessions made on lease terms and expect this trend to intensify. There has been a concerted move to offer greater flexibility around lease terms, while also offering smaller amounts of office space.”

“Overall, we are not forecasting any significant swing in office rents in the Kingdom, with any changes over the next six months likely to be confined to +/- BD0.50 per sqm,” Durrani comments. “This flat outlook assumes no major regional or global economic shocks, which Bahrain remains exposed to,

8 6 4 2 Al Seef

Amwaj Islands

Isa Town

given the office market’s heavy reliance on the hydrocarbon sector and supporting industries.”

“Any further or deeper austerity measures may translate into a rapid deterioration in the market’s performance,” he adds. “More positively, the mute economic conditions are driving up demand for smaller fitted offices, which in turn is fuelling a rise in international serviced office providers. Local landlords are still warming to this idea, but it remains a beacon of positivity in an otherwise quiet market.”

Riffa

Retail Market Cluttons’ research shows that Q3 marked the sixth consecutive quarter of sluggish retail rents. Isa Town was the only exception, where rents nudged up by BD0.50 per sqm to BD7 per sqm over the summer before stabilising. Al Seef (BD12.5 per sqm) and Amwaj Islands (BD12 per sqm) remain the Kingdom’s most expensive and sought-after locations, which has helped to sustain rents.

Pressure on household budgets has to a large extent helped to keep retail rents in check. These were at risk of overheating, given the retail sector’s apparent resilience in the first few quarters following the oil price shock.

This was followed by a surge in new retail developments across the Kingdom, fuelling a string of new market entrants which has now tailed off.

“We view the current stability as positive for the market’s ongoing development. We remain cautiously optimistic that rents will hold steady over the next six to twelve months. New supply, in the form of the rapidly completing BD45 million Avenues Mall development for instance, is capable of being absorbed into the market,” says Goodson-Wickes.

December 2016 17

In profile

“If I was based In europe, I may have had a dIfferent vIew [on the expo], If you thInk about sevIlle and all the other places that have had It. but actually, why I’m very posItIve about It, Is because If there Is a wobble In global capItal markets, the fIscal stImulus of spendIng on Infrastructure projects Is a good one” 18 December 2016

In profile

Big Project ME sits down for a chat with Andrew Weir and Sidharth Mehta of KPMG to get their take on the region’s construction and real estate sectors December 2016 19

In profile

t

he last few years have been turbulent for the construction industry, as has been well documented by many media outlets, including this one.

With the drop in oil prices has come added pressure on both developers and builders, who have had to contend with dramatic shifts in market trends and a drop in easily available funding.

As governments refocus on core infrastructure projects that will fuel future economic diversification and growth, many regional developers are now looking to tap into that development by focusing on sectors that will assume importance in the coming years.

Joined by Sidharth Mehta, partner and head of Real Estate and Construction at KPMG UAE, Andrew Weir, the global chair for Real Estate and Construction at KPMG, recently sat down for a chat with Big Project Middle East to discuss these issues facing the regional construction industry, and how shifting trends across the world will have an impact on how the GCC construction and real estate sector fares.

“Globally, I think there are a lot of moving parts on the real estate side. One thing for sure is that there’s no shortage of capital looking to invest in real estate projects. Compared to 10 years ago, the universe of investors is very different. You’ve got everything from privately owned enterprises right through to sovereign wealth funds,” says 20 December 2016

no shortage of capital There is no shortage of international capital looking to invest in global real estate projects, says Andrew Weir.

Weir, speaking on the sidelines of a KPMG conference in Dubai.

“You’ve got real estate funds, pension funds, private equity funds. All of them have a much more significant allocation to real estate and infrastructure projects than before. In many ways, the challenge is finding enough investable assets and projects.”

What this means is that over the last few years, there has been a sizeable shift towards investing in real estate projects in the West from investors in the Middle and Far East. Interestingly, however, it is not countries that are receiving the benefits of this investment, but rather cities. It’s no longer a case of investing in the UK or investing in Asia, as Weir puts it, but more a case of investing in Tokyo or London, Seoul or Taipei, and so on.

“When you look at the population of cities now, more than half the world’s population live in cities, and each has its own

“It’s really about how you allocate risk relating to different parts of the project and operations.

I think there would be a significant amount of international interest in sharing PPP models with this part of the world”

market – and within that market, very segregated markets as well.

What very smart investors are doing is to focus on these major hubs, but finding different ways of getting value,” he points out.

Sidharth Mehta chimes in, pointing out that when Dubai’s real estate boom first happened, it was down to the freehold market opening up in the early 2000s. While the focus then was very much on residential, things are now changing rapidly as more and more investors look to diversify their interest.

“It was residential investment that really drove the market [back then], because people really wanted to have a sense of ownership. But now, I think it’s becoming more about alternative investment within the real estate market sector.

“The education sector, if you’d looked at it 10 years ago, not many people would have thought the quantity would have increased to what we have now.

The number of schools have exponentially increased over the last 10 years, because of the demand. That demand is from expats, no matter where they are from, and it’s because people want options. That is a testimony of the demographic structure [in the country],” Mehta says.

“It’s interesting, and it’s a global trend,” adds Andrew Weir. “The three big things are hospitality, education and healthcare – what we would call value-added real estate.”

“In Asia, the interest of private equity houses in anything healthcare and education related is amazing, and stand-alone firms in Asia are now looking at this part of the world for anything healthcare or education related. The big PE firms are very interested in it, and the IPO potential is very significant.”

Mehta points out that

In profile

about it is because if there is a wobble in global capital markets, the fiscal stimulus of spending on infrastructure projects is a good one. Infrastructure-led real estate development is quite a safe model.

“You see it in Hong Kong and in Singapore – this use of infrastructure and then building real estate and getting economic development off the back of it. It’s a well-worn model, and in China we can see the benefits of the Expo in Shanghai, and similarly of the Olympics in Beijing, where it’s just accelerated economic growth.

“Of course, some could point out, ‘Hold on, Dubai is already there. So is it really necessary?’

My response would be that I think by doing it, Dubai can consolidate its position as the leading international hub in the Middle East. That’s the way I see it. I don’t know the cost, and I don’t know the cost benefit, but big picture wise, that would seem like a very logical thing to do.”

Of course, Dubai is not the only city in the GCC hosting an upcoming mega-event, and both Weir and Mehta have been keeping a close eye on Qatar – specifically Doha – as it steps up its plans to host the 2022 World Cup. “The situation in Doha is very different to Dubai,” says Weir.

“I imagine that the World Cup is being used as a catalyst. And a very interesting question to ask is, does Dubai see Doha and Qatar as a competitor? Or do they see it as a strategic partner?

Or a strategic competitor? What is that reference point?”

“I think Qatar is developing quite a compelling case as a form of a hub, in a similar type of model to Dubai, with the airline and all that, but you’ve got to look at the scale. I think it will come back to the role of Dubai as a – or the – leading hub for the Middle East.

“But then, I’m based in Hong

medical tourism is another major real estate sector that fits Dubai’s vision for its future.

With a number of new projects coming up or opening recently, he views it as a trend that will only continue to grow.

“It fits in within Dubai’s vision. If you see the number of big hospitals that have opened up recently, I think that’s a sector that [will grow over the coming years]. If you see the number of hospitals as well, the DMG Group, for example, has expanded into every nook and corner of Dubai now. They’re everywhere, from specialised clinics to full-blown general hospitals. The trend will continue, no doubt about it.”

With regards to hospitality, both Weir and Mehta expect the focus for Dubai to be on budget hotels for the next few years, with some of the big international players coming into the market.

“I think that opens up a very different segment, specifically for tourists from Asia. You’re making the city cater to all sections of society, rather than just the luxury hotels. That does help a lot. That’s one of the reasons why occupancies have not gone down significantly, compared to the average room rate. Of course, there’s been some impact, but it could have been much more severe.”

Looking ahead at Dubai’s future development plans, Weir expects Expo 2020 to have a major impact on the city, even with the uncertain economic conditions. He predicts that the infrastructure investment in the Expo will provide a stimulus for projects, which will be very useful in the long run.

“If I was based in Europe, I may have had a different view [on the Expo], if you think about Seville and all the other places that have had the Expo. But actually, why I’m very positive

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December 2016 21

In profile

Kong and there’s always been a historical rivalry between it and Singapore. The reality is that the world is big enough for both, and the reality is that there’s more complementary behaviour between Hong Kong and Singapore than there isn’t.

“Now, is the Middle East region big enough for both Doha and Dubai? I honestly don’t know the answer to that.

But I would turn it around the other way – how would one feel about the competitive position – if that’s the right language – of Qatar going for the World Cup, and there wasn’t the Expo?

That’s one way to look at it.”

Finally, the conversation turns to the alternative financing models pursued by developers in the region following the drop in oil prices and the subsequent cuts to funding and spending.

Both experts point out that the key here for investors is to take a long-term view of the market.

“Everything is about longterm perspective,” says Weir.

“If you’re based in Europe or the USA, the average real estate fund time horizon is five years, plus two years. It’s a maximum of seven years. I think that there, and in the rest of Asia, that is a very short time horizon.”

“As long as the long-term fiscal situation is secure, and there are enough measures to protect against bubbles and those types of things, then even if the market conditions at the time aren’t quite compelling, over time it would be fine.”

Taking a more local view, Sidharth Mehta says that he feels the mortgage cap will have a role to play in pushing the need for alternative financing measures, along with the level of demand in the market.

“If you see the way payment terms have been restructured by a number of developers, 22 December 2016

even including the large ones, they’re directly taking the credit risk on their heads. They’re becoming financiers. So you see what we call the 20-80 scheme, where you pay 20% at the time of purchasing, and unless you take delivery of your unit, you don’t have a commitment to pay the 80% at any point of time. Only when you get the handover, then do you pay the remaining 80%. Some developers are even giving that 80% over a period of three to four years.

“So in fact, developers are becoming financiers as well.

The mortgage cap obviously has something to do with it.

Secondly, the investors were

“I think Qatar is developing quite a compelling case as a form of a hub, in a similar type of model to Dubai, but you’ve got to look at the scale”

the impact of the mortgage cap The introduction of the mortgage cap will have a role to play in pushing the need for alternative financing measures, says Sidharth Mehta.

losing confidence in how the market will behave, so if you have to attract sales, then you have to come up with innovative ideas.

Over the last couple of years, this has almost become the norm.

“But that has also helped the market to consolidate to a greater extent as well.

Because otherwise, we would have had a period where the transaction volumes would go down very significantly, so it’s helped the market to become more stabilised.”

With regards to Private Public Partnerships (PPP) becoming increasingly sought after in the GCC region, Weir points out that the key to their success is remembering the partnership part of the process.

“It’s really about how you allocate risk relating to different parts of the project and operations. I think there would be a significant amount of international interest in sharing PPP models with this part of the world. It’s relatively early days, but the key word is partnership.

The key is the sharing of risk, and that sharing of risk is reflected in economic return.

“I would think that there’s a lot of opportunity, and one of the best models is the linkage of transport to real estate models.

It’s called the Rail Property Model, and I think there’s an element of that already in Dubai – basically, it’s how individual investors or companies investing in real estate, how they connect your transport. The value that comes from that can be cycled back into helping finance the development of infrastructure.

“I know it’s very early days, and we’ve had discussions about this in Dubai before, but I can imagine, looking at the Expo 2020, that it might make sense to road-test a couple of those models,” he concludes.

Big Project ME Awards 2016

The leading lighTs

Big Project ME celebrates the achievements of the GCC’s contractors at Jumeirah Emirates Towers Hotel

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24 December 2016

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T

he 2016 Big Project Middle East Construction and Sustainability Awards of Excellence took place at the Godolphin Ballroom in Jumeirah Emirates Towers Hotel.

Held as a celebration of the achievements of the regional construction industry, the blacktie gala dinner welcomed more than 200 guests from around the region for a sit-down three-course dinner and award ceremony.

The event was kicked off with a welcome address by Gavin Davids, editor of Big Project ME, and emceed by Laura Buckwell, a local television personality.

Prior to the dinner, guests were hosted in a pre-function area which saw leading industry figures mingle and network in a relaxed and light-hearted atmosphere.

A major attraction for attendees was a Volvo Construction Equipment simulator, which allowed guests to take charge of a multi-tonne piece of machinery in the comfort of a hotel foyer.

Spread across 14 categories, the winners of the Big Project Middle East Construction and Sustainability Awards of Excellence 2016 were chosen by an expert independent panel of judges, drawn from across the spectrum of the construction industry.

Big Project ME Awards 2016

The winners were chosen in a voting process that allowed the judges to assess and debate the merits of entries, before voting for their winner.

This year, the panel consisted of Alan Ferguson – CIOB Dubai and Northern Emirates Centre; Brian Hillesdon – director of Building Structure, Middle East for WSP | Parsons Brinckerhoff; Andrea Scotti, director, BuroHappold; Robert Marinelli, project director, Construction Services, UAE + Oman for AECOM; Craig Ross, head of Project and Building Consultancy at Cavendish Maxwell; Sarfraz Dairkee, secretary of the Emirates Green Building Council; Neil Reynolds, senior vice president and managing director, MENA and India for CH2M Hill; and Suhail Arfath, industry manager – Consulting (India, Middle East and Africa) for Autodesk.

Two special presentations were made to honoured guests during the evening, with Ahmed Abou Hashima, CEO and founder of Egyptian Steel, taking home the Big Project ME Industry Leader of the Year award; while HE Hesham Abdulla AlQassim, CEO of wasl Asset Management, was presented with the Big Project ME Lifetime Achievement Award.

The Gold Sponsor of the 2016 edition of the Big Project ME Awards was FAMCO. Category Sponsors were ALEC, Autodesk, Bentley and CCS. Supporting partners for the event were Cavendish Maxwell, CIOB, JLL and RICS.

SUPPORTING PARTNERS

December 2016 25

Big Project ME Awards 2016

Sustainable Initiative of the Year Nominees: Ecocoast Contracting Green Energy Solutions and Sustainability Multiplex Winner: Green Energy Solutions and Sustainability Green Energy Solutions and Sustainability won the award for Sustainable Initiative of the Year for their Al Qusais Landfill Gas Project – Phase II, with the judges picking their nomination because of the “impact it would have on future generations”.

They felt the GESS entry not only showed remarkable technological innovation, but also set a standard for others in the region to follow. With the increased focus on renewable

energy being shown by local governments, the Al Qusais Landfill Gas Project – Phase II was chosen to highlight how authorities and private companies can work together to achieve outstanding results.

“Sustainability is breaking new ground in the region, and landfill gas is an important part of the renewable energy initiative. All landfills need to be degassed and that gas can be used to provide power,” said Anita Nouri, business development director of GESS, after she collected the award on the night.

“We are trying to be able to utilise the gas that we’re flaring and produce power from it. In the next phase, we hope to connect to the grid and be part of the renewable vision of the UAE.”

On to the next stage Anita Nouri says the next step for GESS is to connect the power produced from the landfill to the grid.

Smart Solution of the Year Nominees: Dubai Airport Free Zone Energy Solutions Group International Winner: Dubai Airport Free Zone

Reducing costs and improving performance DAFZA’s Optimisation of its Chiller Plant Performance saw it reduce long-term maintenance costs and improve efficiency.

26 December 2016

Dubai Airport Free Zone picked up the award for Smart Solution of the Year for the Optimisation of its Chiller Plants performance.

The judges found that the team’s use of new technology to develop systems that allow it to produce energy savings with rapid investment payback was worthy of recognition.

DAFZA’s use of this technology allowed it to reduce long-term maintenance costs, while also extending the life of the equipment.

The nomination outlined how the Demand Flow controlled

and sequenced operation of the chilled water plant – including the chillers, seawater pumps and the chilled water supply pumps.

It also optimised the temperature and pressure set points for the chilled water and condenser water, while also controlling pump and fan speeds to maintain optimal energy balance.

As a result of using this technology, DAFZA was able to improve its plant’s actual efficiency average from 0.99kW/tr to 0.73kW/tr for a period of 12 months.

These impressive results certainly swayed the judges, and they had no hesitation in voting for DAFZA as the 2016 winner of the Smart Solution of the Year, for their fine work in marrying technology and efficiency in an effective manner.

Big Project ME Awards 2016

Sustainable Government Department Nominees: Dubai Airport Free Zone Roads and Transport Authority Winner: Roads and Transport Authority Dubai’s Road and Transport Authority picked up the Sustainable Government Department of the Year award at the Big Project Middle East Awards 2016.

The RTA’s nomination submission showed the judging panel how it had achieved a number of significant milestones over the course of the year, across a number of projects. These varied from under-construction projects through to fully operational systems like the Dubai Metro, and the authority introduced

a number of sustainable measures across the board. It also highlighted attempts made to change the way residents and visitors in Dubai move and operate, introducing a sustainable mindset to the city’s residents.

“We are trying to incorporate the idea of sustainability within all our projects, so the award is recognition of that achievement,” said Amair Saleem, director of the Safety, Risk, Regulation and Planning Department, in the Strategy and Corporate Governance Sector of the RTA. “The idea is driven by HH Sheikh Mohammed bin Rashid Al Maktoum. Everything we do comes from his vision, and we are proud to be a part of it,” Saleem said, speaking on the sidelines of the awards.

incorporating sustainability The RTA is pushing its partners and stakeholders to incorporate the idea of sustainability within all its projects.

Sustainable Project of the Year Nominees: Al Barari DAFZA Square Majid Al Futtaim Winner: Majid Al Futtaim

First in the region The City Centre Me’aisem is the first LEED Platinum-certified building in the GCC.

Majid Al Futtaim’s City Centre Me’aisem picked up the award for Sustainable Project of the Year for the firm’s work in making it one of the most sustainable shopping malls in the GCC, if not the world.

Built in line with the developer’s sustainability vision, the mall combines a variety of technologies, ranging from water recycling through to implementing the UAE’s first solar panel lighting solutions.

It is also the first Platinum LEEDcertified building in the GCC. “I’m so proud of this project.

(To win the award) means that

the sustainability work that we do is being appreciated by the industry. On behalf of my whole team, I’m very proud,” said Ibrahim Al-Zu’bi, head of Sustainability at Majid Al Futtaim.

“Sustainability has become way more advanced. This is just the start. Such projects and such awards are an incentive for the industry to do more.

“We’ve stopped saying that we need to be green. Now we’re saying that we need to be greener. The sky is the limit.

“As for Majid Al Futtaim, we’re definitely looking at integrating more renewables in our assets.

That will be a priority. We’ll continue to do what we do best, which is enhancing people’s lives through sustainable real estate,” Al-Zu’bi asserted.

December 2016 27

Big Project ME Awards 2016

HSE Leader of the Year Nominees: ALEC Al Futtaim Carillion ASGC Winner: Al Futtaim Carillion Al Futtaim Carillion won the HSE Leader of the Year award for 2016 because its nomination impressed the judges with its comprehensive and detailed approach to health and safety across the board. Not only did the senior management of the company set the example from the very top of the company, but it also encouraged and rewarded workers from all sections of the company for taking a serious approach to on-site safety.

What impressed the judges most was the effort made to

educate and train the workforce and supply chain. Not only did the nomination highlight the key steps taken, it also showed just how the company benefited from this approach, thanks to a dramatic reduction in workplace accidents and time lost on-site.

“The key thing is to have the passion for what you do,” said Shaun Evans, project director at Al Futtaim Carillion, after he collected the award.

“Next year is going to be interesting. We’re facing a time in the region where a lot of developments have got to start, because we’ve got real delivery deadlines coming up.

We’re looking at 2017 as being a real difference in the way we contract and collaborate with each other,” he added.

Reaping the benefits AFC’s HSE plan saw a reduction in workplace accidents and time lost on-site.

Excellence in BIM Implementation Nominees: AECOM ALEC Burohappold Roads and Transport Authority Winner: Burohappold

Transformational journey Burohappold’s BIM adoption and utilisation has seen it go on a “transformational journey” over the last few years.

28 December 2016

Burohappold’s win for the Excellence in BIM Implementation Award was recognised by the judges because of the way the company implemented BIM across all sections.

Not only is the technology used extensively on its projects, but the company has also established a global network of BIM professionals that will help to facilitate the distribution of information and tools to support the continued development of Burohappold’s BIM usage.

What impressed the judges most about the nomination was how it managed to align the technology with its business strategies and goals and integrate it within its daily routines and operations, helping it become a definitive example of how BIM can revolutionise a workplace.

“We’ve had a digital transformation journey over the last few years; we’ve changed the way that we do our projects, in a better sense,” said Craig Garrett, project technology leader at Burohappold.

“As a global company, we are very strong in the Middle East and the big thing for us is that we want to make our clients’ vision viable,” he added during an interview with Big Project ME after collecting the award.

Big Project ME Awards 2016

Construction Professional of the Year Nominees: Mai Al Qaq Sherif El Geresi Sean McQue Winner: Sean McQue The Construction Professional of the Year award goes to an individual who has made a significant contribution to their company over the course of the year.

This talented individual helps their company and division achieve the highest levels of performance through their professionalism and ability.

As the winner of this year’s award, Sean McQue has shown the judges a strong sense of leadership and management in his role as project director for

ALEC. Having accumulated more than 23 years of experience in the construction industry, he has a strong reputation in the region as a natural leader who understands the relationship and balance between commercial and operational interests.

With projects such as the Al Maktoum International Airport Expansion and the Dubai Trade Centre District in his portfolio, McQue is regarded as one of ALEC’s visionaries and a future leader within the company.

“There is a lot of stuff in the pipeline with Expo 2020 approaching,” he said, speaking after collecting his award on stage. “It’s a positive sign for the industry, and I’m sure that it’s going to be a busy year ahead,” he concluded.

leadership ability Sean McQue is regarded as a future leader within ALEC.

Construction Executive of the Year Nominees: Hamad Al Ameri Kez Taylor Yu Tao Winner: Yu Tao

impressive figures In 2015, CSCECME posted a total contract value of $1bn and a total turnover of $500m.

The Construction Executive of the Year is an editor’s choice award, given to the construction executive who has demonstrated a clear sense of vision and leadership. It aims to recognise and celebrate individuals who have set new boundaries for their companies and provided a calming hand on the tiller during turbulent times.

Having overseen the continued growth and success of China State Construction Engineering Corporation Middle East over the last year, Yu Tao was a worthy winner of this year’s award.

In 2015, the company was rated as having a total contract value of $1 billion and a total turnover of $500 million.

Furthermore, it has recently spread its business into the wider GCC region, while also expanding its branches in Kuwait, Saudi Arabia and Bahrain.

“Over the past few years, ever since the financial crisis, the construction industry in the Middle East has faced a difficult situation. The oil price issue has also created a negative impact.

“Hence, we have had to take on the challenge of how to manage our cash flow, how we ensure the proper management of our employees and how we collect payments,” Tao said.

“We have always followed through on our commitments.”

December 2016 29

Big Project ME Awards 2016

Big Project ME’s Industry Leader of the Year Winner: Ahmed Abou Hashima - Chairman, CEO and founder of Egyptian Steel Founded in 2010, Egyptian Steel has undergone a rapid rise under Ahmed Abou Hashima’s leadership, becoming a highly regarded manufacturer and supplier across the MENA region.

He was recognised at the awards for his contributions to the industry.

“It is a great honour to be recognised at this event. As the only Egyptian chosen, I take pride in being a positive representative of my country,” he said.

“Although it hasn’t been the easiest year, we’ve managed to achieve great accomplishments, such as opening our third steel plant – which is the biggest so

far. It’s the first steel plant in Upper Egypt and it produces green steel, with a production capacity of 830,000 tonnes per year.

“We’ve also established Egyptian Cement this year.

Overall, despite the obstacles and challenges, I’m proud of my team at Egyptian Steel for pulling through and reaching our goals for the year,” he added.

Looking ahead, Hashima said that Egyptian Steel plans to open its fourth and final plant in Egypt, which will be identical in capacity to the plant opened in 2016.

“With the production of all four steel plants, Egyptian Steel is forecast to acquire 20% to 25% of the market share of the steel market in Egypt, and it will remain the number one global producer of green steel,” he concluded.

ambitious plans Ahmed Abou Hashima says Egyptian Steel aims to acquire a 20% to 25% market share in the Egyptian steel market.

MEP Contractor of the Year Nominees: ALEMCO Arabian MEP Trans Gulf Electro Mechanical Winner: Trans Gulf Electro Mechanical

Better together Following the integration of two businesses in 2016, Trans Gulf Electro Mechanical has become very selective in its approach to projects.

30 December 2016

This year’s winner of the MEP Contractor of the Year Award showed judges all the qualities they were looking for in this category.

Not only has Trans Gulf Electro Mechanical been involved in a number of major projects, but its nomination showcased its stellar growth and performance as a company over the course of the year.

Not only has the company managed to expand its portfolio and expand its reach, but it has also invested heavily in the

training and education of its staff, a factor that swayed the judges’ decision in its favour.

“In 2016, we consolidated two companies, and we’ve been very selective in approaching projects and tendering for them,” said Stuart McGregor, general manager of Trans Gulf Electro Mechanical.

“We’re waiting for the rewards (of this approach) in 2017.”

“We’re working in a very challenging market, and there is no room for error. However, we’ve got new management in place now, and we’ve become more integrated now. That is going to be a benefit for us going forwards,” he added,highlighting the attitude, drive and commitment that brought the company’s nomination to the judges’ attention in the first place.

Big Project ME Awards 2016

Infrastructure Project of the Year Nominees: Dubai Water Canal Phase II Jebel Jais Mountain Road Jamal Abdul Nasser Expressway Winner: Dubai Water Canal Phase II The Infrastructure Project of the Year aims to recognise a project in the infrastructure sphere. Targeted at projects that will have a significant impact on a city or country, this year’s winner was chosen by the judges for how it will shape the future of downtown Dubai.

China State Construction Engineering Corporation Middle East took home this year’s Infrastructure Project of the Year award for its work on the Dubai

Water Canal Project – Phase II. Not only did the project fulfil the brief of being a vital piece of infrastructure, but it was also an important part of one of the most iconic projects being built in the Middle East.

CSCECME was responsible for the elevation of Al Wasl and Jumeirah Street, building two bridges that cross over the new Dubai Water Canal, creating a link between both sides and improving the traffic flow between communities.

The scope of work also included the relocation and protection of utilities, while also managing all the local traffic diversions required during the construction of the bridges, considerably increasing the complexity of the job.

Vital link CSCECME was responsible for the elevated link between Al Wasl and Jumeirah Street, building two bridges that cross over the Dubai Water Canal.

Construction Project of the Year Nominees: Al Maryah Central City Walk Phase II Etihad Museum Jebel Ali School Winner: City Walk Phase II

iconic in dubai The City Walk Phase II development saw Al Futtaim Carillion achieve more than 17,877,738 man-hours without a major accident.

The Construction Project of the Year was awarded to an iconic project in Dubai. Developed by Meraas, City Walk Phase II was completed earlier this year by Al Futtaim Carillion, with $272.2 million worth of works completed over a 24-month period.

Not only did Al Futtaim Carillion deliver the project on time and within budget, it also completed more than 17,877,738 man-hours worked without any major accidents. This was down to the exemplary HSE practices

put in place by the contractor, which wowed the judges.

Furthermore, the contractor also developed an open and honest relationship with all parties, sharing in particular its HSE best practices and sustainability policies, so as to ensure a consistent high standard was delivered across the project.

Al Futtaim Carillion’s achievements during the delivery of the project included collaboration with the project team to achieve more than $10.8 million in value engineering; delivery of an outdoor cooling system within the Mall – the first of its kind in Dubai; and delivery of unique structures of various types (the Giant Egg, the catenary flag system and the glass atrium to the internal mall). Clearly, then, the project was a worthy winner.

December 2016 31

Big Project ME Awards 2016

Contractor of the Year Nominees: ALEC Al Futtaim Carillion CSCECME Multiplex Winner: ALEC The Contractor of the Year goes to the company that has shown judges that it is a leader in its field in a multitude of ways.

Not only does it have a sterling reputation within the industry as a contractor of note, but it is also deeply involved in and committed to resolving the issues facing the construction industry today.

This year’s winner, ALEC, was chosen by the judges on the basis of its strong reputation within the industry, with a number of judges vouching personally for its

skills and abilities, having come across them in a professional capacity over the years.

Not only has ALEC established itself as a leading contractor in the industry, but it has also begun expanding into new market sectors and fields, opening three new businesses over the last year to complement its existing portfolio.

“We are delighted to have won this prestigious accolade,” said Kez Taylor, CEO of ALEC, to Big Project ME. “It is a true testament to all our staff and to the hard work which they have put in this year.”

“The main challenges in 2016 are also the biggest opportunity for the construction industry to work in alignment with each other to achieve project success.”

leading contractor ALEC has been working with clients to improve the way the construction industry operates.

Big Project ME Lifetime Achievement Winner: HE Hesham Abdulla AlQassim, CEO of wasl Asset Management

lifetime achievement HE Hesham Abdulla AlQassim took home the Lifetime Achievement Award in recognition of his work in turning wasl Asset Management into a leading developer in the UAE.

32 December 2016

Instrumental in the growth of wasl into a world-class asset management company, Hesham AlQassim has been at the forefront of its change. He has overseen its transformation from the Dubai Real Estate Corporation (DREC) into a company that owns and manages more than 40,000 residential units across Dubai – including community malls with more than 400 retail units. It also owns 5,500 industrial plots in 27 zones across the city of Dubai, with its hospitality portfolio comprising 14 hotels containing 5,500 rooms.

“I think that the UAE – overall – is a very dynamic country and that it has a huge amount of ambition in

front of it, starting from our Ruler – HH Sheikh Khalifa bin Zayed Al Nahyan, Presdient of the UAE and Ruler of Abu Dhabi – who has laid a platform for this country to be the right place to live and work.

“I would also like to pay tribute to the vision of HH Sheikh Mohammed bin Rashid Al Maktoun, Vice President and Prime Minister of the UAE and Ruler of Dubai. He has a huge vision to turn this country into an international country and for Dubai to be the capital of business trade and development.

“They have achieved what they’ve dreamed about. So if you ask me, will construction stop in the city? It will never. We are a developing city, and we’ll continue developing every day. There’s still a lot more achievements to be done.”

Big Project ME Awards 2016

Thanks to our judges 1. Alan Ferguson, CIOB 2. Brian Hillesdon Director of Structures, WSP | Parsons Brinckerhoff 3. Robert Marinelli Project Director, Construction Services, AECOM 4. Craig Ross 1

2

3

Head of Project & Building

4

Consultancy, Cavendish Maxwell 5. Suhail Arfath Industry Manager – Consulting, Autodesk 6. Neil Reynolds Senior Vice President, Managing Director – MENA and India, CH2M Hill 7. Sarfraz Dairkee Secretary, Emirates Green Building Council 8. Andrea Scotti

5

6

Dubai Canal Project

7

ADAC Abu Dhabi Airport Project

8

Director, BuroHappold

Emirates Road Project

Dubai Parks Project

Civil & Infrastructure Division Profile 基础设施事业部简介 Civil & Infrastructure Division was formed as a part of CSCEC ME in 2006. After 10 years of unremitting efforts, the division has developed from a department with 10 staff to a team with 350 around staff. During the past 10 years, there were 14 projects including many landmark projects such as the Dubai Water Canal Project, Abu Dhabi Airport Infrastructure Project, Emirates Road Project, Dubai Parks Access Road Project etc. have been awarded. The projects are located in every major Emirates, and the clients mainly cover the Department of Transport in Abu Dhabi, Abu Dhabi City Municipality, Musanada, Dubai Road & Transportation Authority, Ministry of Public Works-UAE and Abu Dhabi Airport Company etc.

CSCEC ME Civil & Infrastructure Division has become a renowned infrastructure contractor in Dubai and UAE with its comprehensive capabilities of undertaking road work, bridge work, public utility pipeline work as well as railway work.

Address: 8th Floor, 1 Lake Plaza, Jumeirah Lake Towers P.O.Box: 63932, Dubai, UAE Tel: +971 4 4537268, Fax: +971 4 4537368 | Email: info@chinaconstruction.ae December 2016 33

Project profile

36 December 2016

Project profile

Answering the CAll

Big Project ME speaks to First Solar, the EPC contractor of Shams Ma’an, the Jordanian solar power plant which is the largest PV plant in the Middle East

December 2016 37

Project profile

e

arlier this year, First Solar, an American-owned photovoltaic solar energy solutions provider, announced that it had commissioned the 52.5MW Shams Ma’an project in the Kingdom of Jordan.

With the project owned by a consortium of investors consisting of Diamond Generating Europe, Nebras Power QSC and the Kawar Group, the plant accounts for approximately 1% of Jordan’s total energy generation capacity.

Shams Ma’an currently has a 20year Power Purchase Agreement (PPA) with the National Electric Power Company (NEPCO), Jordan’s power generation and distribution authority.

First Solar significantly contributed to the development of the project before divesting

its stake and being appointed as the Engineering, Procurement and Construction contractor.

The plant produces clean electricity through the use of more than 600,000 high-performance thin film modules provided by First Solar, which deliver up to 5% more specific energy in Ma’an than conventional crystalline silicon panels, it says. The modules themselves are mounted on singleaxis trackers that allow the facility to generate up to 20% more energy.

First Solar constructed the facility with a workforce that was almost entirely Jordanian, with the company spending more than 40,000 man-hours on training alone, which had the by-product of creating a new skills resource for the country.

With the plant now up and running, First Solar’s Dr Raed Bkayrat, vice president, Business Development, Middle East, sat down for a chat with Big Project Middle East to discuss the construction and development of the plant and the impact it will have on Jordan’s energy grid, while also examining the wider implications of its success for the Middle

East’s renewable energy quest.

What did you face as EPC contractor during the construction of the project?

Building a power plant in a new market always presents its own challenges. The biggest challenge we faced was the absence of a technical knowledge base in Jordan and we addressed this by investing in over 40,000 man hours of training. I’m proud to say that, as a result of Shams Ma’an, Jordan now has a valuable pool of personnel that are experienced in building utility-scale solar in the country.

Can you talk about some of the technology used on the project?

How has it improved performance and durability, compared to existing technology in the market?

Shams Ma’an produces clean electricity using over 600,000 highperformance First Solar Series 4 thin film modules, which deliver up to 5% more specific energy in Ma’an than other crystalline silicon panels. These panels possess a superior temperature coefficient and spectral response, resulting in greater energy yield in typical

field operating temperatures and a proven energy yield advantage in humid environments.

In addition to this, Shams Ma’an is the first PV project in the region to feature the use of the First Solar Tracker, which allows the plant to generate up to 20% more energy.

What are the biggest challenges around the operation and maintenance of the plant? How is First Solar addressing them?

The primary challenge that projects in the region face is the impact of soiling on the modules.

While First Solar’s thin film modules offer a superior spectral response which minimises the impact of soiling when compared to crystalline silicon panels, our solar power plants in the Middle East still require a cleaning regime.

The Shams Ma’an power plant is being cleaned using dry brushes mounted on a trolley that is manually guided across the arrays. This is a method we piloted with the 13MW first phase of the Mohammed bin Rashid Al Maktoum Solar Park, and it has been tremendously successful in lowering the

improved performance Shams Ma’an uses more than 600,000 high-performance First Solar Series 4 thin film modules to deliver up to 5% more specific energy than other crystalline silicon panels.

38 December 2016

Project profile

impact of soiling on energy production without using water.

Other challenges typically posed by the region include the ability of PV panels to withstand the rugged conditions that they operate in. Shams Ma’an, however, uses First Solar Series 4 modules that have been independently certified for reliable performance in high temperature, high humidity, extreme desert and coastal environments.

These are among the toughest PV modules available and among a select few that have successfully passed the Atlas 25+ durability test, which is the gold standard for PV module durability.

How much of an impact will the project have on Jordan’s energy needs and production?

The development of Shams Ma’an, and other renewable projects like it, keeps Jordan on track to achieve its energy generation objectives.

The Kingdom has historically relied on imports to address its energy needs, as it does not possess large fossil fuel reserves, unlike its regional counterparts.

In fact, recent reports indicate that an estimated 97% of Jordan’s energy is imported, accounting for a big percentage of the annual government budget – budget allocations that could be spent elsewhere.

Also worth mentioning is the regional instability and the repercussions that accompany it – this has not only affected energy supply from neighbours like Egypt and Iraq, it has also increased Jordan’s refugee population, and thus its energy demand.

The development of projects like Shams Ma’an reduces the Kingdom’s dependence on foreign hydrocarbons, with solar power being a sustainable locally sourced alternative, given Jordan boasts one of the highest rates of solar irradiation worldwide.

its Jordanian workforce with a valuable set of skills.

As a result, due to First Solar’s investment in the professional development of its employees, these citizens are now well positioned to play a role in their government’s ambitious efforts to achieve energy security through renewable energy.

Finally, what is First Solar’s view of the energy market in the MENA region?

Achieving energy generation objectives The development of the Shams Ma’an project will help Jordan keep on track with its energy generation objectives, says Dr Raed Bkayrat.

“Shams Ma’an produces clean electricity using over 600,000 highperformance First Solar Series 4 thin film modules, which deliver up to 5% more specific energy in Ma’an than other crystalline silicon panels”

The facility is the largest operating PV solar power plant in the region and is silently generating enough clean electricity to power 35,000 average Jordanian homes.

The plant will also reduce Jordan’s carbon footprint by displacing approximately 90,000 metric tons of carbon dioxide (CO2) per year, equivalent to removing about 20,000 cars from its roads.

The development of Shams Ma’an also contributes to the Kingdom’s energy goals in a different way. Shams Ma’an is considered a project that was built for Jordan by Jordanians, as the core team was made up of Jordanians, as were the 600 workers that were on-site at the peak of its construction.

Additionally, a number of workers were locally hired from the region of Ma’an.

Prior to working on the plant, these employees lacked any experience in the solar industry, but by the time it was completed, First Solar had invested 40,000 man-hours in the training of its workforce, thereby equipping

We foresee bright futures for the renewable energy market here in the MENA region. We are now seeing investments in solar energy being made as a genuine way of addressing the increasing energy needs plaguing the region, as opposed to just a means of complying with ecofriendly legislation. Solar energy’s proven reliability and sensible economics are driving countries like the UAE to lead the way with investments in clean energy.

In fact, the emirates of Abu Dhabi and Dubai are leading the energy transition with innovative policies designed to encourage renewables in general and solar in particular. We’re also witnessing a growing momentum in the Kingdom of Saudi Arabia, which just announced a revised target of 9.5GW as part of its Vision 2030 plan.

When you take into account that these initiatives are being taken by countries rich in fossil fuels, it only reinforces the fact that sunlight has truly come of age as a reliable and affordable energy source, capable of standing shoulder to shoulder with conventional power generators.

We believe that the industry’s continued success will stem from its technology and innovation capabilities, combined with global expertise and the local insight that can be provided to clients – qualities we take great pride in at First Solar.

December 2016 39

Technology

The Changing naTure of BMS Koen Bogers, senior executive vice president of Building Technologies at Siemens Middle East, outlines how BMS is moving into new territory

40 December 2016

Technology

December 2016 41

Technology

What work has Siemens been doing in the building management systems (BMS) field recently?

We work as a technology partner, consultant, service provider, system integrator and product supplier for building technologies, including fire safety, security, building automation, heating, ventilation and air conditioning (HVAC), as well as energy management products and services.

Building management platforms are an important part of our business, and in the Middle East we have been working on some very exciting projects. The region is really embracing the benefit of smart building technology, and there have been some landmark projects completed recently by us, such as the new Dubai Parks and Resorts theme park and the 3D-printed Office of the Future.

Globally, our own new headquarters in Munich is worth a mention – it uses our Desigo CC building management platform and, compared to the previous building, it requires 90% less electricity and 75% less water, while also reducing CO2 emissions by 90%.

How has BMS technology evolved over the years? What has been the biggest driver of change?

Transparency and efficiency are really driving demand for building management systems. You have to remember that only 20% of a building’s costs are related to its construction; the remaining 80% are operating costs.

So being able to control and optimise all the functions in a building – from heating, ventilation, lighting and shading to room automation, energy management and fire safety, as well as security disciplines, has clear financial, safety and environmental benefits.

42 December 2016

size buildings, operational and maintenance costs can be reduced, and building performance data is made transparent.

We are of course now looking at the next evolution, which is how the Internet of Things (IoT) will further enhance the potential of technology for smart buildings.

Has there been a shift towards having BMS in independent residential units? How much of an impact will that have on the use of the technology?

Driving demand The desire for transparency and efficiency is driving the demand for building management systems, says Koen Bogers.

In terms of the evolution of technology, we have come a long way in the last 30 years or so. From isolated controls such as thermostats we have moved to fully integrated building management platforms, and this change has been in part driven by the wider understanding of the value of data analytics.

This has enabled the shift from simple control of individual building functions to fully integrated optimisation.

State-of-the-art BMS systems like Desigo CC are also capable of being used as a building integration platform, integrating other smart systems in a building, like low-voltage distribution, elevators, smart meters, generators, chillers, solar panels, smart lighting, back-up power systems and audio-visual systems.

Furthermore, an iBMS can also be used multi-site, managing a portfolio of buildings from a central control room. This way BMS functionality and integration can also be made available for smaller and mid-

“Transparency and efficiency are really driving demand for building management systems.

You have to remember that only 20% of a building’s costs are related to its construction; the remaining 80% are operating costs”

So far we have seen building management platforms implemented more in commercial and large buildings, but automation is certainly a trend in residential buildings. For example, Siemens’ Total Room Automation (TRA) combines room HVAC, lighting and/or shading systems into one package, which enables occupants to adjust the environment from a single wallmounted device or a smart app.

This reduces operating costs and also ensures that a comfortable environment is maintained.

How can BMS be integrated with the IoT? What impact will that have?

The IoT is merging the physical and virtual worlds, and for this it’s important to have both the domain knowledge and the digital capabilities. For building management, the IoT enables us to integrate the asset management and analytics with the technical understanding of how buildings actually perform, in order to make building operations more reliable, cost-optimised and sustainable.

We play a key role in the ecosystem of IoT. Earlier this year, we took an important step towards this by partnering with IBM to combine their asset and database technologies with our domain knowledge, in order to maximise the potential of connected buildings and the data they create.

Technology

We are also well positioned with our Navigator cloud software, a single, integrated cloud-based platform which uses powerful analytical and reporting capabilities to give operators total control of infrastructure.

With technology like this, we are able to create complete transparency of the energy performance of a portfolio of buildings, maximising efficiency, minimising costs and reducing environmental impact. Ultimately, digitisation technologies and the IoT could radically change the business model of building management.

How can BMS improve efficiencies and create smart buildings and cities?

A building management platform such as Siemens’ Desigo CC is able to integrate all the functions of a building, such as heating, ventilation, lighting, energy management, fire safety and security, into a single system in a single location. We’re talking about building intelligence into our infrastructure – giving it a brain.

The ability to control and optimise individual elements of a building gives operators total transparency. For example, end-toend energy management through Desigo CC in global installations has reduced operating costs by up to 20%, and this of course also has clear environmental benefits.

These systems are the cornerstone of a smart city. The IoT will see buildings increasingly

digitised and connected, and this will enable the data produced by a single building or group of buildings to be analysed in the context of an entire city.

Benchmarking will become possible, occupant usage patterns can be analysed so that utilities can optimise their resource generation and distribution.

Weather patterns can be factored in. Buildings themselves can become part of the city’s energy system, storing and distributing power according to demand data.

Our digitisation technologies are generating huge amounts of data, and turning this data into intelligence creates an extremely powerful asset.

How can we lower the cost of

BMS to increase its uptake?

A building management platform like Desigo CC is in itself a cost-reduction technology, but of course capital expenditure is always a consideration. Our technology has a modular design which allows implementation to be done in stages, according to budgets or changing requirements, and this approach enables an increased level of customisation in terms of solutions and cost.

There are also costs associated with the implementation of a building management platform that change over time. Cabling, for example, is a significant cost factor, and as wireless technologies become increasingly secure and reliable, the requirement and therefore cost will be reduced.

Changing the model Digitisation technologies and the Internet of Things will radically change the business model of building management.

December 2016 43

Renewables integration of renewables The integration of renewables will necessitate a different way of managing the grid, with more automation, communication and monitoring required.

Chasing renewables N Venu, lead division manager, Power Grids, South Asia, Middle East and Africa, outlines how ABB is looking to capitalise on the GCC’s growing renewable energy market

44 December 2016

What are your thoughts on the market in 2016?

With its strategic location as a bridge between the East and the West, the Middle East is one of the fastest growing markets in the world. Hence, to manage such a diverse development, the utilities market has risen to a great extent.

This is a very exciting region of the world in what it has to offer, be it its deep history and culture, the entrepreneurship of its business people or the accomplishments in GCC countries in terms of modernisation and development.

With the oil price fluctuations,

several countries in the region are driving towards diversifying the economies away from hydrocarbon reliance in addition to improving productivity and efficiency. There is also a heightened sense for meeting the increasing demand for power in a sustainable way.

In several countries, legislation and regulatory drivers, following the historical success of COP21, will continue to drive the growth of renewables in the energy mix.

With the growing influence of renewables, the world needs power grids that can integrate renewables and allow smarter energy choices.

Renewables

This region is blessed with abundant sunlight, which is a proven renewable energy source. The region also has major opportunities to increase industrial and domestic energy efficiency. However, despite the vast potential, there are financial investments required to implement projects. In many countries the appropriate governmental policies and policy frameworks are yet to be put in place.

The MENA region is widely seen as one of the best locations for solar energy, with high-value wind locations in some MENA countries suggesting that regional lifecycle costs for renewables could lie well below those in most other regional markets, such as Europe and North America.

What are ABB’s investment plans and regional developments in the renewable and alternative energy sectors?

Looking at the GCC energy and utilities market today, what are some of the most important trends?

The most important trend today is the integration of renewables, and this necessitates a different way of managing the grid, requiring more automation, more communication and more monitoring. The second key trend is digitalisation. This results in a new way of operating the grid that helps us manage the demands of integrating distributed renewables.

What is your view on the renewables energy sector?

The GIS (Gas Insulated Switchgear) manufacturing unit in Dammam will serve these growing needs in the region.

Dammam is in the eastern part of the country and home to the largest port in the Arabian Gulf, where its proximity enables us to provide faster response times and more efficient service.

This facility brings localised solutions and services that the market requires, and enables us to tailor to the local needs and requirements of customers. In addition, the factory includes a training centre to provide training for employees as well as customers.

Digital substations will play a key role in the power system of the future. They will incorporate digital communications via fibre optic cables, substituting traditional copper connections using analogue signals. They will also enable greater flexibility, availability and safety, while reducing cost, risk

part of our next-level strategy.

What are your thoughts on the recently launched Shams Initiative in Dubai? How is ABB supporting it?

“The MENA region is widely seen as one of the best locations for solar energy, with high-value wind locations in some MENA countries suggesting that regional lifecycle costs for renewables could lie well below those in most other regional markets, such as Europe and North America” and environmental impact.

Digital substations are a key component in shaping the evolving grid, and ABB’s latest technology offering in this area will enable customers to optimise their operations. Facilitating grid automation and the convergence of information and operational technologies are an integral

Our ABB solar rooftop project supports the Shams Dubai initiative launched by state utility provider DEWA to connect solar energy to buildings, as part of the Distributed Renewable Resources Generation programme. It is one of the largest privately owned solar rooftops in the region, and the 315kW project will be undertaken at the company’s Al Quoz facility in Dubai. The electricity it generates will be used for powering the ABB office while feeding any surplus power to the DEWA grid.

The country is eager to develop a viable solar power market given the lengthy periods of sunshine it has each year. Abu Dhabi aims to generate 7% of its energy from renewable sources by 2020, while Dubai targets 15% by 2030.

ABB has been investing heavily in efficiency and automation. What are your targets and plans for this?

ABB supports efforts by customers to cut greenhouse gas emissions, raise energy efficiency within the company and its manufacturing processes, and strengthen the use of clean energy sources such as wind and renewables.

We also will focus on technologies like HVDC to integrate renewable energy sources, expand existing strongholds like transformers, substation automation and GIS, and tap new opportunities like micro-grids. We want to grow and expand our service and consulting business where we have significant potential, given our installed base. We also have an opportunity to leverage our software portfolio and help customers tap new opportunities from the digitalisation of the grid.

December 2016 45

Sustainability

The house ThaT MBRsC BuilT

Big Project ME takes a tour of Mohammed bin Rashid Space Centre’s new Sustainable Autonomous House, built to show how the UAE real estate sector can embrace green and sustainable construction

Pilot project MBRSC’s Sustainable Autonomous House aims to show the construction and real estate development sectors that sustainable and green building practices are worth investing in.

46 December 2016

Early last month, Big Project Middle East was invited by the Mohammed bin Rashid Space Centre (MBRSC) to visit an ambitious new project being developed at their base in Al Khawaneej, Dubai.

Recently inaugurated by His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai, the Sustainable Autonomous House project is the first of its kind in the UAE. This ambitious pilot project is part of the Centre’s plans to help promote and push the “use of green and smart techniques to

implement the UAE’s strategy for green development and Dubai’s Clean Energy Strategy”.

During a tour of the project, the project is described as the first model house developed to be self-sufficient and completely independent of the electricity grid. It produces autonomous energy from the sun and depends on smart technical and engineering solutions to operate efficiently.

Designed to be able to adapt to the hot and humid climate challenges presented by the region, the house is certified by the Passive House Institute

Sustainability

in Germany, making it the first Passive House to be designed and built for a hot and humid climate. It meets energy consumption and sustainability criteria set by the Institute, in accordance with standards and regulations that guarantee the efficient use of energy, meeting all environmental and comfortable living requirements.

“Since the establishment of MBRSC, we have been adopting the knowledge transfer strategy in order to develop new technology on UAE soil,” says Yousuf Hamad Al Shaibani, director general of MBRSC.

“To fulfil that goal, we built a strategic partnership with one of the leading academic institutions specialised in developing research studies on efficient houses, such as the University of Bergamo and the Passive House Institute in Germany.

“This significant partnership aims to transfer knowledge of sustainable energy house building techniques. However, we have also developed a new concept of this kind of smart home, to fit with the local environment in the UAE.” MBRSC plans to establish a laboratory that specialises in conducting experiments and tests for sustainable autonomous houses, so as to verify the efficiency of devices, systems and materials. Furthermore, a team of Emirati engineers at the Centre will conduct a series of complementary studies to optimise the condensed water in the cooling system. This in turn will allow the team to manage the humidity and high moisture processes in the atmosphere, so as to produce water for domestic use.

In addition, research and studies are underway to link the project with Dubai’s electricity grid, providing it with surplus energy storage so that the house, and others like it, will become small power plants that produce electricity from solar energy.

Al Shaibani explains that the Sustainable Autonomous House is part of the MBRSC’s initiatives aimed at “effectuating the use of green and smart techniques to implement the UAE’s strategy for green development and the Dubai Clean Energy Strategy”.

It also aims to provide an applicable model for one of the main requirements of the Dubai Smart City initiative.

“This is more than just

“This is more than just specialised scientific research. We’re looking forward to constructing an integrated model of an essential component of a smart city.

This is one of the future accelerators.

It’s essential to create a culture of effective and sufficient optimisation of renewable energy sources, in order to maintain a sustainable environment”

specialised scientific research.

We’re looking forward to constructing an integrated model of an essential component of a smart city. This is one of the future accelerators. It’s essential to create a culture of effective and sufficient optimisation of renewable energy sources, in order to maintain a sustainable environment.

“The global economy invests a great deal into renewable energy projects. This smart home transforms the housing sector from an energy consumer into an energy source, thereby reducing the central power production load on the national economy.”

MBRSC says that it was keen for government and private entities involved in the real estate sector to invest in this kind of smart building, with Al Shaibani adding that the Centre is ready to provide support and guidance if required.

“It is essential to establish the technical infrastructure that is necessary for developers, including a scientific laboratory specialised in conducting tests and experiments to verify the efficiency of devices, systems and materials used. We are planning to conduct studies to link the project with Dubai’s electricity grid, providing it with surplus energy storage, plus complementary studies to secure water sufficiency in these houses,” he explains.

Dr Ali Shaheen, director of the Sustainable Energy Programme at MBRSC, adds that the technology used in the Sustainable Autonomous House depends on condensing the generated moisture in the smart cooling systems and moisture management processes, so as to produce around 200 litres of water every day.

“This is a useful amount for

December 2016 47

Sustainability

Turning humidity into water The engineers behind the house will be looking at how to efficiently transform high humidity into a water source.

domestic use. In the next phase, we will study how to transform high humidity into a water source efficiently by applying special techniques suitable for the nature of low energy consumption,” he explains.

When it comes to the actual building of the house, Shaheen says construction actually required surprisingly little time, with the entire house model completed within 100 days. However, he points out that this was preceded by more than a year of study, comparison and application.

“During this phase, Emirati engineers at the Centre, in cooperation with our strategic partners, were committed to examining the house systems, devices, insulation and house management items, while testing their interaction to ensure efficient implementation and performance in the future.

“One of the requirements of the design stage is the orientation

48 December 2016

of the building, which should fit with the sun path to ensure best performance. Also, the house has been designed and prepared to contain all the equipment and devices found in a traditional house. For example, the sustainable autonomous house at MBRSC is constructed to cover planned future needs. It is designed to accommodate more than 30 people in a 557sqm area.”

He also highlights the key similarities and differences between the house and its traditional counterparts, explaining that while the foundations were similar for both, the sustainable energy house starts the insulation process right on top of the foundation.

The temperature range in the house is between 22°C and 25°C throughout the year.

Shaheen explains that this means the house does not require traditional cooling devices, which drastically reduces energy consumption by 75%.

“The global economy invests a great deal into renewable energy projects.

This smart home transforms the housing sector from an energy consumer into an energy source, thereby reducing the central power production load on the national economy”

He puts this performance down to the use of smart technical and engineering solutions used in the house.

One such solution is a cooling technology that is based on chilled water, another is thermal and air insulation techniques in both directions, as the fresh air spreads out across the house via a mechanical ventilation system.

The house also includes a smart management and control system which interacts with changes in the external heat and humidity.

Finally, one major technical solution is the use of heat insulating walls which are humidity and fire-resistant, made of several layers of eco-friendly processed wood.

The house also features an insulating rooftop and flooring that prevents heat absorption, while avoiding the use of heat-conductive materials which absorb heat or leak energy in the windows, bridges and steel columns.

HOW DO WE ENSURE THERE IS SUFFICIENT SOUND INSULATION IN TALL TOWERS?

#LetsTalkAbout...Tall Towers

www.wsp-pb.com | www.wsp-pb.ae

Event review

50 December 2016

Event review

ME BIM SuMMIt 2016

On November 1, the first ever ME BIM Summit was held at the Jumeirah Beach Hotel, bringing together more than 200 guests, panellists and experts to discuss BIM and its growth in the GCC construction industry More than 200 delegates from across the GCC gathered together on November 1 at the Jumeirah Beach Hotel’s Meyana Auditorium for the Middle East BIM Summit 2016, organised by CPI Media Group. Titled ‘The Future of BIM in the GCC’, the inaugural summit brought together speakers and panellists from around the world to discuss and debate the issues and challenges facing BIM implementation in the region.

The full-day event was launched by Abdulredha Abu Al Hassan, director of the Buildings and Facilities Department and chairman of the RTA’s BIM Committee, who gave the keynote address and presentation to the assembled delegates.

Focusing on the RTA’s BIM Strategic Plan and Road Map, he touched on the authority’s achievements and future objectives for the implementation

of BIM across all its projects.

“It is about implementing change across all industries.

Another potential is its capability to lower the environmental impact of the construction sector, by reducing waste, cutting carbon footprint and improving energy performance and lifecycle management of the built assets.

BIM is a key enabler [of this],” Al Hassan said, outlining the RTA’s vision for Dubai and how BIM can help achieve it.

The BIM Summit also hosted a number of other experts and executives from across the construction sector, with Richard Shennan, Mott MacDonald’s group practice manager – Buildings and Group BIM champion, also presenting fascinating insights into the application of BIM for better business outcomes.

“The ME BIM Summit 2016 demonstrated how far

Thanks to all our sponsors

December 2016 51

Event review

BIM has moved in the UAE. The event demonstrated how the understanding of BIM is moving well beyond the entry level of 3D object-based modelling and clash detection, and on towards the wider vision of BIM,” Shennan told Big Project ME after the conference. “We define BIM as being a coordinated set of processes, supported by technology, that adds value through creating, managing and sharing a digital information model of an asset throughout its lifecycle.”

“While the ultimate drivers for BIM will be to bring efficiency, innovation and commercial success into all businesses that work in the built environment and infrastructure sectors, a mandate at government level will stimulate the industry into BIM

52 December 2016

adoption and initiate the benefits that its implementation brings.

Indeed, we only need to look to the UK, which already showcases how leadership at government level can be successful.

“In Dubai, the RTA are showing precisely the leadership that is required. If this were extended to include the major utility organisations as well as the procurement of all buildings that benefit from public funding, with a challenging but achievable target for full compliance with Level 2 BIM, then Dubai could set the benchmark for the whole of the GCC,” Shennan asserted.

Christopher Seymour, regional development director for Mott MacDonald and chair of the Summit, added that one of the main takeaways from the event is that it

“It is about implementing change across all industries.

Another potential is its capability to lower the environmental impact of the construction sector, by reducing waste”

demonstrates that technology in the built environment has moved from being a supporting tool for design to being a true enabler for the industry. This shift will allow the construction industry to create better built assets faster, and with less cost, he explained.

“We need to catch the enthusiasm and innovation that was evident at the event to move in a collaborative way, and the challenge for us all will be to work together to ensure that platforms and products are connected to break down some of the barriers that will otherwise emerge,” Seymour said.

“The discussions around the use of the common data environment becoming the norm rather than the exception were very encouraging, and with automated design now emerging as a real alternative,

Event review

RICHARd SHENNAN oN THE CHAllENGES oF BIM IMPlEMENTATIoN: “One of the biggest challenges is the rate at which the whole of the supply chain can adapt to new and more efficient ways of working. A clear and consistent direction of travel is essential to give firms the confidence to invest in the necessary change.

“Asset owners also have an important part to play, recognising the need for them to look at their organisation’s requirements and, through implementation of a clear asset management strategy, provide clear information requirements to their suppliers, both consultants and contractors.

“A further challenge is the need to develop a culture of collaborative working and a review of procurement systems for major assets, to enable earlier involvement in looking at construction methodology

clients will soon be feeling the benefits to their businesses.

“This was one of the overriding themes of the event: the use of BIM must have a positive outcome for our clients, otherwise why bother? Abdulredha from the RTA made the point well, and he is expecting the industry to follow – I believe that is a very realistic request and one, as an industry, we need to take to heart.”

Three panel discussions were also held during the day, each focusing on key aspects of BIM implementation and understanding: ‘The Reality of BIM Implementation’, ‘BIM and MEP Engineering’ and ‘The Future of BIM’.

Some of the key talking points during the panel discussions were the key challenges around a

successful BIM implementation, and how to resolve them; the consequences of outsourcing the production of 3D models; whether BIM implementation is the right choice in tough economic times; understanding the role BIM plays in ensuring energy efficient designs; and how BIM facilitates collaboration in the delivery of major projects.

The ‘Future of BIM’ discussion looked at the GCC construction industry. Chaired

by Muhammed Jabakhanji, the panel focused on the evolution of technology and how BIM is changing the way people operate and perform in the industry.

Other notable presentations on the day came from Laura Smagin, digital information manager specialist in BIM at Atkins, and

and in-sequence value engineering – this is where the adoption of BIM provides a unique driver for change.

“Skills gaps have been a common issue in all countries that have adopted BIM. The transformation is as much about education of the processes.

“Investment in training in the use of particular technologies is a key requirement, and there is a wide range of good resources to meet this. The wider educational need must be addressed at organisational level. With this skill gap addressed, this will enable the clients and their supply chains to collaborate openly on projects.”

from Charles Dunk, associate director, Immersive Technologies, UAE & Oman at AECOM. Finally, the day wrapped up with two CPD-certified workshops from RICS and CIOB. Attendees at these free workshops gained an insight into the pivotal technical issues influencing the way BIM is used in the GCC. “For me, the resounding statement from today was that BIM is acting as a collaborator. We know that it’s the future. It’s not something that we’re not going to be able to do. It’s part of our industry now, and it’s a part of the future,” said Chris Seymour at the conclusion of the event.

“In a way, it’s forcing us to finally collaborate as an industry, and I think that’s a really great thing.”

December 2016 53

Events

The Big 5 2016 aTTracTs recordBreaking numBers

EvEnT LisTings: solar middle east 2017 14-16 February, 2017 Dubai World Trade Centre, UAE Hosted by the UAE Ministry of Energy and co-located with the world’s largest power event, Middle East Electricity, Solar Middle East is MENA’s leading trade-focused event for the solar industry.

Solar Middle East provides the ideal platform for international companies and regional decision-makers from across the Middle East, North Africa and the rest of the world to conduct business, network and share ideas.

middle east electricity 14-16 February 2017 Dubai World Trade Centre, UAE Hosted by the UAE Ministry

date for the diary Next edition to take place November 26-29, 2017 at the DWTC.

of Energy and based in Dubai, Middle East Electricity is the

The 37th edition of The Big 5 welcomed over 75,000 participants, breaking last year’s record, organiser dmg events Middle East, Asia & Africa announced at the end of the four-day-long event.

The largest construction exhibition in the Middle East will be back at the Dubai World Trade Centre from 26 to 29 November 2017, while the colocated Middle East Concrete (MEC) and PMV Live shows will run again in 2018 (26-28 March), as standalone events.

Following this year’s success, the next edition of The Big 5 will further focus on the theme of ‘Technology in Construction’. Event director Josine Heijmans also said HVAC-R exhibitors will be clustered in a dedicated product 54 December 2016

sector in light of the heating, ventilation, air conditioning and refrigeration industry’s strong development in the region.

Moreover, The Big 5 2017 will go smart. Thanks to the introduction of new Konduko smart technology, exhibitors will be able to send digital content to visitors while capturing and qualifying leads from their smartphones. All visitors will be equipped with a Smart Badge that will interact with the exhibitors’ Smart Readers.

“With its record-breaking number of exhibitors and visitors attending the event, The Big 5 2016 was a great success, and the show will be even bigger and smarter next year,” Heijmans stated.

To learn more about the show, visit www.thebig5.ae.

“With its record-breaking number of exhibitors and visitors attending the event, The Big 5 2016 was a great success, and the show will be even bigger and smarter next year”

largest international trade event for the power industry, covering the generation, transmission and distribution of electricity, including the renewable and nuclear energy sectors.

The event is the world’s leading platform for the power industry to come together, conduct business, share ideas and network at the highest level. Middle East Electricity drives innovation in the international industry by providing a forum for the world’s thought leaders, government policy-makers, academics and senior executives to meet and discuss the latest issues and challenges faced by the power sector.

FIRE SAFETY & BUILDING SECURITY REPORT Next month, Big Project ME takes an in-depth look at the GCC’s fire and life-safety industry for the 2017 Fire Safety and Building Security Report.

Some of the topics we’ll cover are: Changes to the UAE Fire Code Integrating security systems into the design and build process Insulation Standards Access Control, Automation and Security Building Security Camera Technology Fire Safety Clothing Advertising deadline: 15 December 2016 If you would like to participate, contact: ADVERTISING Jude Slann Commercial Director +971 4 375 5714 jude.slann@cpimediagroup.com EDITORIAL Gavin Davids Editor +971 4 375 5480 gavin.davids@cpimediagroup.com A supplement of:

Tenders

Top tenders Hessa al Mubarak Mixeduse developMent project budget $5,000,000,000 project number WPR1298-K territory Safat 13100, Kuwait client Kuwait Projects Company (KIPCO) phone (+965) 805 885 Fax (+965) 243 5790 email kipco@uggi.com Website www.kipcogp.com description Development of a comprehensive mixed-use scheme comprising 82 plots for residential buildings (high-, medium- and low-rise apartment buildings and duplexes); serviced apartments; offices; clinics; health clubs; commercial activities; retail; as well as food and beverage (F&B) outlets period 2020 status New Tender tender categories Agriculture & Irrigation, Construction & Contracting, Leisure & Entertainment, Prestige Buildings tender products Commercial Buildings, Gardens/Parks Development & Maintenance, High-rise Towers, Mixed-use Developments, Residential Buildings, Retail Developments

a new hotel comprising 25 floors, offering 1,600 rooms period 2020 status New Tender tender categories Prestige Buildings, Hotels, Tender Products, Hotel Construction

le caMpbell Gray aMMan Hotel project budget $150,000,000 project number WPR1410-J territory Amman 11194, Jordan client Al Seraje Real Estate Development (Jordan) address MSDR Complex, Rafiq Al Athem St. 1 phone (+962-6) 568 6867 description Construction of a 5-star hotel comprising 188 guestrooms, two restaurants, meeting rooms,

a ballroom, screening room, a spa, salon, indoor and outdoor swimming pools, cigar lounge, library and a royal suite atop the tower period 2018 status Current Project tender categories Construction & Contracting, Hotels tender products Hotel Construction

creek Horizon toWers project – dubai creek Harbour budget $150,000,000 project number WPR1406-U territory Dubai, United Arab Emirates client Emaar Properties PJSC (Dubai) phone (+971-4) 367 3333 Fax (+971-4) 367 3000 email customercare@emaar.ae Website www.emaar.com description Construction of a residential tower comprising 40 floors consisting of over 500 contemporary apartments ranging from 1-, 2- and 3-bedroom flats to penthouses period 2020

status New Tender tender categories Prestige Buildings tender products High-rise Towers, Residential Buildings

avenues Mall project – sHarjaH budget $200,000,000 project number WPR1407-U territory Sharjah, United Arab Emirates client Line Investments & Property LLC (Abu Dhabi) phone (+971-2) 414 0555 Fax (+971-2) 642 8700 email leasing.eng@lineinvestments.ae Website www.lineproperty.com description Construction of a new shopping mall comprising two levels, including a 10,300sqm hypermarket and a 5,700sqm department store period 2018 status New Tender tender categories Construction & Contracting, Leisure & Entertainment tender products Retail Developments

park inn by radisson Hotel project – Mecca budget $200,000,000 project number WPR1391-SA territory Saudi Arabia client Private Investor (Saudi Arabia) description Construction of

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

56 December 2016

Tenders

Middle East tenders UAE Hydroelectric poWer station project – Hatta project number WPR1401-U territory Dubai, United Arab Emirates client Dubai Electricity & Water Authority (DEWA) address Head Office, Near Wafi Shopping Mall, Zabeel East phone (+971-4) 601 9999 / 324 4444 Fax (+971-4) 601 9995 email customercare@dewa.gov.ae Website www.dewa.gov.ae description Construction of a hydroelectric power station with capacity of 250MW status New Tender tender categories Power & Alternative Energy, Water Works tender products Power Generation Plants, Solar Energy

Mayan luxury residential project (pHase 1) – yas island project number WPR1404-U territory Abu Dhabi, United Arab Emirates client ALDAR Properties PJSC (Abu Dhabi) address 13th Floor, Abu Dhabi Chamber of Commerce Tower phone (+971-2) 810 5555 Fax (+971-2) 810 5550 email info@aldar.com Website www.aldar.com description Development of a luxury residential scheme comprising 512 apartments offering studios, one-,

two-, three- and four-bedroom units, as well as a select number of golf course homes and beachfront villas status New Tender tender categories Construction & Contracting tender products Community Development, Residential Buildings, Villas Construction

Qatar Hotel apartMents buildinG project budget $15,000,000 project number WPR1385-Q territory Qatar client Private Investor (Qatar) description Construction of a hotel apartments building comprising 3 basement floors, a ground floor,

mezzanine floor and 14 floors period 2017 status Current Project tender categories Construction & Contracting, Hotels tender products Hotel Construction

residential buildinGs project budget $170,000,000 project number MPR1231-Q territory Doha, Qatar client Sharaka Holdings (Qatar) phone (+974) 4444 2202 Fax (+974) 4435 1529 email info@sharakaholdings.com Website www.sharakaholdings.com description Construction of (4 Nos.) low-rise residential buildings, including all associated infrastructure period 2019

status Current Project tender categories Communications / Telecommunications, Construction & Contracting, Power & Alternative Energy, Roads, Bridges & Infrastructure, Sewerage & Drainage, Water Works tender products Infrastructure, Residential Buildings

Saudi Arabia cHeMical Factory project – industrial city 2 budget $3,000,000 project number WPR1390-SA territory Riyadh, Saudi Arabia client Al Alamya Chemical Company (Saudi Arabia) description Construction of a chemicals factory

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

58 December 2016

Tenders

period 2017 status Current Project tender categories Industrial tender products Chemical Plants

pp15 ipp project – al Wasia project number MPP3085-SA territory Riyadh 11416, Saudi Arabia client Saudi Electricity Company – Central Region (Saudi Arabia) address Burj Al Faisaliyah Bldg, Floor 22, King Fahad Road phone (+966-1) 461 9030 / 461 9009 Fax (+966-1) 403 2222 email informus@se.com.sa Website www.se.com.sa description Construction of an Independent Power Project (IPP) with capacity of 5,400MW status New Tender tender categories Power & Alternative Energy tender products Independent Power Plants (IPP)

Bahrain ikea retail store project – salMabad budget $125,000,000 project number WPR1374-B

territory Bahrain client Ghassan Ahmed Al Sulaiman Development Company Ltd (Saudi Arabia) address Bin Sulaiman Centre, 8th Floor, Intersection of Prince Sultan Road with Rawdah Street phone (+966-12) 606 9033 Fax (+966-12) 606 9022 email info@ghassanco.com Website www.ghassanco.com description Construction of a retail store comprising a 6,200sqm showroom, a 6,000sqm market hall for accessories, 5,000sqm self-serve area and 4,000sqm full-serve area period 2018 status Current Project tender categories Construction & Contracting, Leisure & Entertainment tender products Retail Developments

railWay netWork project project number MPP2353-B territory Manama, Bahrain client Ministry of Transportation & Communications (Bahrain) phone (+973) 1732 1105/ 1732 1055/ 1753 4534 Fax (+973) 1753 0243 description Construction of

a railway network spanning approximately 105km period 2022 status New Tender tender categories Public Transportation Projects tender products Railways

Oman inFrastructure Works project – FaHud Field budget $60,000,000 project number WPR1384-O territory Muscat 113, Oman client Petroleum Development Oman (PDO) address Mina Al Fahal Street phone (+968) 2467 8111 Fax (+968) 2467 7106 email external-affairs@pdo.co.om Website www.pdo.co.om description Execution of infrastructure works period 2020 status Current Project tender categories Construction & Contracting,

Oilfields & Refineries, Roads, Bridges & Infrastructure tender products Earthworks, Infrastructure, Roads Construction

telal al QurM toWnHouses project – pHase 4 budget $50,000,000 project number WPR1402-O territory Salmiya 22060, Oman client Alargan International Real Estate Company (Kuwait) address Street 6, Plot 125, Shuwaikh Industrial Area phone (+965) 2226 3222 Fax (+965) 2226 3232 email info@alargan.com Website www.alargan.com description Construction of 46 townhouses, including a community clubhouse, a gymnasium and a swimming pool period 2018 status Current Project tender categories Construction & Contracting tender products Villas Construction

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

December 2016 59

Last word

Stadiums on track Qatar’s Supreme Council for Delivery and Legacy provides an update on the progress of construction work for the eight stadiums being built for the 2022 World Cup Construction work on eight of the proposed host venues for the 2022 World Cup is in full swing, the Supreme Council for Delivery and Legacy says.

The stadiums have been designed by a variety of leading architects to reflect different aspects of Qatari culture while also keeping three key priorities in mind – access and comfort, sustainability and posttournament legacy.

renovation and upgrading works will be underway.

The 60,000-seat Al Bayt Stadium at Al Khor C is scheduled to host the semifinals. Construction of the project is well underway, with the recent successful installation of elements of the main structure.

Current ongoing works include the construction of access tunnels and bridges to the venue.

2. The Al Bayt Stadium’s

1. For the Khalifa

International Stadium, the Supreme Council for Delivery and Legacy (SC) says that construction is moving at a rapid pace, with external cladding and LED screens coming up around the exterior of the venue. The complex system of cabling for the roof of the stadium has also been completed, with the canopy roof likely to be fixed in place within the coming weeks. Once the roof has been completed, the countdown towards the finalisation of the

60 December 2016

design is meant to mirror a Bedouin tent, a symbol of Qatari hospitality. It will also have a retractable roof able to close within 20 minutes, for optimal playing conditions.

SC says the workers’ accommodation for the project has been completed, and has been built according to the SC Workers’ Welfare Standards.

3. The Qatar Foundation

Stadium, located near Doha’s Education City, is scheduled to be completed

by the end of 2019. The venue will host fixtures up to the quarter-final stage. Further bulk excavation works of a total volume of 650,000m3 to formation level, and the implementation of a dewatering system, have been completed in recent months. By the end of 2016, the main works contractor is expected to be fully mobilised on-site with work progressing on the schematic design, while foundation works will be finished. The securing of a large portion of the structural steel for the superstructure will also be completed by then.

within the stadium bowl on-site, and works are advancing to prepare for the start of above-ground construction by year-end.

A total of six 60-tonne cranes will be working on-site to bring the structure of the stadium up from the ground.

5. For the Al Rayyan

4. The Al Wakrah Stadium,

Stadium, SC says the first concrete was recently poured on the West Stand area. The main contractor for that project is continuing to advance on the construction of the 40,000-seat stadium.

More than 100,000m3 of concrete and 6,700 tonnes of structural steel will be used on the project.

a 40,000-seat venue designed by the late Zaha Hadid, has seen the main contractor come on board and work is underway to prepare the stadium design to be issued for construction. Foundation works on the project are progressing well. Three cranes have been installed

6. Construction work on the Lusail Stadium – the opening venue of the tournament and the host of the final – is also moving smoothly, the SC says.

The 80,000-seat stadium is expected to be complete by the end of 2020.

Schematic design work is

ongoing, while early works have been completed and the project team has relocated to the site.

7. The Ras Abu Aboud Stadium currently has early works underway, the SC says. The stadium will bring the ‘design for legacy’ concept onto the world stage, as it will be one of the first sports venues with the ability to transform into a dynamic mixed-use urban neighbourhood once the tournament is over.

8. Finally, the eighth proposed venue – the Al Thumama Stadium – will have a capacity of 40,000 seats, which will then be reduced to a maximum of 20,000 seats following the tournament.

Early works are currently underway on that project, with preparations taking place for the main construction work to commence. These include levelling and grading works, the SC concludes.

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