Big Project ME

083

FEBRUARY 2013

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Key Project

Casablanca Tram

In Profile

Philippe Dessoy

Onsite

Al Hamra Village

VILLAGE LIFE Big Project ME visits RAK’s Al Hamra Village for a taste of the quiet life

PUBLICATION LICENSED BY IMPZ

ALSO INSIDE: Aldar and Sorouh merger Tender updates project delays PPP green paint technology

M IDDLE EAST M

CONTENTS

PAGE 34 Figure out how to resolve delays

FEBRUARY 2013 06

biggest news

Aldar and sorouh agree to merger Boards agree to form the UAE’s second largest property firm

14 News analysis A need for alarm Experts tell us what needs to be done to raise fire safety standards

22 In Profile SIX SHOOTER Six Construct’s Philippe Dessoy on Dubai’s construction competition

26

on site

VILLAGE LIFE Big Project ME takes a tour of Ras Al Khaimah’s Al Hamra Village

30

special report

CASA TRAM Big Project ME travels to Casablanca for the launch of its tramway

34 project delays Dealing with Delays Investigating what can be done when projects grind to a halt

38

Private Public partnerships

GOING PRIVATE Jonathon Savill finds out if interest is returning to PPP finance

42

time and Money

STEEL BENEFITS How can stainless steel reinforcement save contractors time and money?

44

Comment

An integrated approach Jason Whitehead of Honeywell on why BMS is essential in the Middle East

46 Special feature taking the stress Finding out the latest from the post-tensioning industry

52

tenders

top tenders Listing February’s biggest tenders

56

Constructive Criticism

One step forward

FEBRUARY 2013

MIDDLE EAST

Gavin Davids says that Sharjah’s edorsement of BIM is a big deal

3

EDITOR’s COMMENT

M MIDDLE EAST

bigprojectME.com

Under price pressure

Publisher Dominic De Sousa GROUP COO Nadeem Hood Managing Director Richard Judd EDITORIAL GROUP EDITOR stephen white stephen@cpidubai.com +971 55 795 8740

I’ve been told that you shouldn’t expect anything to move quickly in Saudi Arabia unless it’s a Mercedes. So I was surprised to hear a senior government official lay the blame squarely on contractors for delays on road projects. Their pace must be glacial.

Saudi is stuffed full of contractors all vying for contracts and I’m sure many of those that missed out first time around will be rubbing their hands with glee at the prospect of the ministry of transportation chucking their rivals off sites.

Should it get around to it.

It has been suggested that the Saudi government is paying the price for taking the cheapest option in its contract awards. While this is an overly simplified view, it highlights problems when contract prices are driven down in the market and the inevitable pressures it puts on a company’s ability to deliver a project.

deputy EDITOR GAVIN DAVIDS gavin@cpidubai.com +971 4 440 9118 CONTRIBUTING EDITOR JONATHON SAVILL editorial@cpidubai.com +971 4 440 9100 MARKETING & ADVERTISING PUBLISHING Director RAZ ISLAM raz@cpidubai.com +971 4 440 9129 COMMERCIAL DIRECTOR MICHAEL STANSFIELD michael@cpidubai.com +971 4 440 9128 SALES DIRECTOR CARLO MENEZES carlo@cpidubai.com +971 4 440 9151 Sales Manager Dhanushka Arjuna dhanushka@cpidubai.com +971 4 440 9163 MARKETING MANAGER CAROLE MCCARTHY carolem@cpidubai.com +971 4 440 9157 DESIGN SENIOR GRAPHIC DESIGNER REBECCA TEECE rebecca@cpidubai.com +971 4 440 9168 JUNIOR GRAPHIC DESIGNER PERCIVAL manalaysay CIRCULATION & PRODUCTION Circulation and Distribution Manager ROCHELLE Almeida rochelle@cpidubai.com +971 4 368 1670 Database and Circulation Manager Rajeesh M rajeesh@cpidubai.com +971 4 440 9147 Production Manager James P Tharian james@cpidubai.com +971 4 440 9146 EVENTS & CONFERENCES

Contractors in the mature market of Saudi’s neighbour the UAE are facing similar challenges at all scales. Many large local firms and global players have found themselves forced into niche – or as they say core competence – areas and high value contracts to maintain their operations in the country. Many others are pushing their prices down to be competitive and at the same time pushing smaller contractors – mostly homegrown companies – out to the fringes. While I firmly believe in freedom of choice for the end-users – action is required to ensure fairness before a layer of the industry disappears.

We’ll be looking at this in greater detail in the next issue. If you would like to participate drop us a line.

Events Director Nayab Raffique nayab@cpidubai.com +971 4 440 9157 Business Development Manager Preijesh Pillai prijesh@cpidubai.com +971 4 440 9162 DIGITAL www.bigprojectme.com Digital Services Manager Tristan Troy Maagma Web Developers JOEL AZCUNA online@cpidubai.com +971 4 440 9100 Published by

Registered at IMPZ PO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 Printed by Printwell Printing Press LLC

Stephen White

Group Editor

© Copyright 2012 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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NOW ONLINE You can now get the online edition every month at: www.bigprojectme.com

FEBRUARY 2013

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BIGGEST NEWS

Aldar and Sorouh boards agree to merger

Boards to call an extraordinary general meeting of shareholders after year-long discussions come to successful conclusion big project, big numbers 37% Percent of new firm owned

by Abu Dhabi government entities $13bn Worth of assets owned by the newly formed company $13.4bn Debt of the combined entity $4.1bn Projected cash inflows from government contracts $871.2mn Amount the Abu Dhabi government will pay Sorouh for infrastructure assets and units

The boards of Abu Dhabi’s biggest real estate developers, Aldar Properties and Sorouh Real Estate, have approved a state-backed, all share merger of the firms, following almost a year of discussion.

A Reuters report said that the merger would go through with a share swap. The new business will have $13bn in assets.

“The boards have officialised it and will soon be calling an extraordinary general meeting of shareholders for approval,” an unnamed source told the newswire.

Aldar and Sorouh have been in discussions for nearly a year, with the government of Abu Dhabi backing the talks, which centred on asset valuations, financial terms and a new management structure.

The tie up between Aldar and Sorouh, will create the second largest listed property firm in the UAE, and one of the biggest in the Middle East, the report said.

The Abu Dhabi government has, over the past two years, bailed out Aldar with around $10bn in funding, the Reuters report added.

“It is very important for the combined entity to be aligned with the overall strategy of Abu Dhabi,” Abubaker Seddiq Al-Khouri, Sorouh’s managing director and proposed chairman of the new business, said on a conference call.

“We will be building a company that helps in the overall development of real estate in the emirate but also doing that in a cost-efficient way.”

Sorouh will be dissolved and delisted once the merger goes through, Al-Khouri said, though he declined to provide further details.

The Abu Dhabi government will own a 37% stake in the new firm, and will also pay Sorouh $871.2mn in exchange for infrastructure assets and units in the The Gate development.

The new firm, to be named Aldar Sorouh Properties, will be 57% owned

by Aldar shareholders and 43% held by Sorouh stakeholders.

The companies expect one-off integration costs of about $16.3mn.

JANUARY 2013

MIDDLE EAST

Big project me takes an in-depth look at the state of uae’s fire and life safety standards on page 14

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THE BIG PICTURE

bigprojectME.com

30 million

annual Capacity of planned KAIA terminal

Arabtec awarded Louvre contract Contractor to build the Abu Dhabi branch of the Louvre museum Arabtec has been awarded the contract to construct the Abu Dhabi branch of the Louvre museum, the Dubailisted contractor has said. Construction will begin immediately with completion in 2015. The contract was awarded by Abu Dhabi’s Tourism Development and Investment Co (TDIC).

24,000m²

$653mn

size of the museum

Saudi Arabian government preparing bonds to finance airport upgrades

Value of contract

Government of KSA will issue airport bonds this year Guggenheim

The government of Saudi Arabia will issue bonds this year to pay for upgrades to the airports of Riyadh and Jeddah.

In an interview with Al Arabiya television, Finance Minister Ebrahim Al Assaf said his ministry will look for private investment to follow the $4bn from Islamic bonds (Sukuk) it raised in 2012.

“The rest of the bonds for King Abdul Aziz Airport in Jeddah and King Khalid Airport in Riyadh will be issued this [coming] year],” confirmed Al Assaf.

The bond for King Abdulaziz Airport in Jeddah is expected to exceed $7bn.

In mid-2012, Hill International, the construction management firm, was appointed to oversee control management and oversight services for the $1.5bn airport.

The one year contract was awarded by the General Authority of Civil Aviation,

and will include overall improvement programmes for the airport.

The contract has an overall estimated value of $3.8mn, and the expansion will be “a landmark development for the Jeddah region and for the Kingdom of Saudi Arabia,” said Raouf S. Ghali, president of Hill’s Project Management Group.

KAIA plans on meeting the projected annual volume of 70 to 80 million passengers by 2035, with plans that include a technologically advanced terminal facility with a 30 million passenger annual capacity rate.

The massive project will also see the development of a new air traffic control complex, a transportation centre and a railway station that will accommodate the high-speed railway between Makkah and Madinah, and an air-side and land-side road network as well as taxiways.

completion date 2017

LOUVRE

Completion date 2015

30 years

ARABTEC

Zayed National Museum

the length of the agreement between Abu Dhabi and the French government

Completion date 2016

Najaf prison to be converted to museum One of the Iraqi city’s most famous historical landmarks is set to be restored One of Najaf’s most famous landmarks is finally set to be restored after more than half a century of neglect, city officials have announced.

The Khan Al Shilan building was once the local headquarters for the Ottoman adminstration before being used as a prison by the British

in the aftermath of the First World War. According to French press agency AFP, the local authority will turn the building into a museum commemorating the city’s heritage. The conversion will be done by the year’s end.

Khan Al Shilan, which housed the city’s first electrical generator and was later used as a mill, covers 1,500m2 and its decaying facade hides Islamic designs which will be restored.

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Big project me interviews Philippe dessoy, gm of six construct, who talks about competing, on page 20|

FEBRUARY 2013

THE BIG PICTURE

Lending cap has stalled Dubai property purchases Proposal to cap mortgages to 50% of the home value has unsettled the market according to Dubai real estate agents.

The recent proposal to cap mortgages to 50% of the home value has inevitably unsettled the market according to Dubai real estate agents.

A proposal sent to UAE banks by the country’s central bank would see expat buyers only allowed to borrow 50% of a property’s value and UAE nationals restricted to 70%. The move is designed to combat speculative buying which has fuelled high inflation of house prices in the past. But it has engendered a negative effect, experts say.

“People that were going to purchase are now holding back and waiting to see what is going to happen,” said Ryan Mahoney, CEO of the Dubai-based estate agent Better Homes.

Renan Bourdeau, managing director of propertyfinder.ae, agrees: “A deposit of 20% to 30% would be appropriate for the UAE and in line with European standards,” he said. But while many budding buyers risk seeing their dream of UAE home ownership collapse, Mahoney said many can still relax-50% of his clients buy their home with cash.

197

2030 Scheduled completion date of the Metro expansion

NUMBER OF STATIONS ON THE EXTENDED NETWORK

421km LENGTH OF EXTENDED NETWORK

2020 24.1km

12 stations

30% 2025

2030

58 stations

69 stations

91 KM

OF DUBAI’S POPULATION WILL USE PUBLIC TRANSPORT BY 2030

221KM

Dubai Metro set for massive expansion RTA chief says new lines will added to network by 2030 The Dubai Metro is set for a massive expansion as the emirate’s population continues to grow, the head of the Roads and Transport Authority has said.

Three new Metro lines – blue, gold and purple – and a Jumeirah tram route will be developed as part of the project, which will be completed by 2030.

Emirates Road renaming a milestone for Dubai Emirates Road and Al Khail Road are nearing the end of construction works The 140km Emirates Road which links Abu Dhabi, Dubai and the northern emirates of Umm Al Qawain and Ras Al Khaimah is to be renamed after the Crown Prince of Abu Dhabi.

News agency WAM has reported that Sheikh Mohammed bin Rashid Al Maktoum has ordered that the road be renamed the ‘’Sheikh Mohammed bin Zayed Road’’ in a tribute to General Sheikh Mohammed bin Zayed Al

Nahyan, Crown Prince of Abu Dhabi, “for his valuable role in advancing inclusive development nationwide.”

Emirates Road is a vital artery for Dubai. 70km of the route and several previously delayed interchanges are currently under completion.

Work on the interchanges of the Al Khail Road, a route which links with Emirates Road in Dubai, are also nearing completion, the news agency reported.

FEBRUARY 2013

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Big Project ME visits the massive Al hamra village project in ras al khaimah, on page 26

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THE BIG PICTURE

bigprojectME.com

KSA and Turkey agree to build $133mn factory Jeddah Industrial City based factory aims to produce 5,000 trailers and containers in 2013 Saudi Arabian and Turkish investors have reached an agreement to establish the Kingdom’s first factory to build trailers and containers, at a cost of $133.3mn, it was announced.

The factory will be established at Jeddah Industrial City and will produce 5,000 trailers and containers in 2013, the chairman of the board of directors at Reema Group, said.

“The agreement will help the transfer of Turkish technology to Saudi Arabia,” said Anwar Basaad. He added that the prospects for the manufacture of trailers and containers in the Kingdom were good, a report in Arab News said.

“We intend to meet the local demand for trailers and containers,” Basaad said.

The factory will be established on an area of 2,000m2 in the industrial city.

According to the agreement, the Turkish investors will train Saudi employees to operate and maintain the factory.

More than 16,000 heavy trucks operate in the Kingdom and total investments into the light, medium and heavy transport sector are estimated to be around $21.3bn, studies have shown.

“We have set out for this project considering the Kingdom’s political and economic stability,” Basaad said, “We selected Turks for the project after conducting detailed studies,” he added.

$21 Billion

Total investments into transport sector

Qatar plans $27.5bn road upgrade Spending on highway projects in Qatar is set to increase significantly this year

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Qatar will award several major contracts this year as the government initiates a major infrastructure upgrade of the country’s road network.

Qatar has one of the GCC’s busiest road markets to date, with contracts valued at $1.8bn awarded to both international and local contractors over the last few years.

FEBRUARY 2013

Emaar Fire Safety chief calls for better education Mall managers need to be better educated about fire safety The director of Fire Safety Engineering for Emaar Malls Group has called for better education about life safety systems in malls, starting at the management level.

Speaking during the Fire Safety, Standards and Regulations Forum, Michael Kelly said that managers needed to be better educated about the use of fire safety systems in their malls. He pointed out that this would lead to a higher standard of safety and regulations.

The forum discussed issues concerning the correct application of building and fire safety regulations.

Major Jamal Ahmed Ibrahim of the Ministry of the Interior spoke at length on the necessity of safety enforcement and how the UAE had now taken a unified approach to many problems.

Kelly praised Major Jamal’s initiative in improving safety and said that the continual good relationship with the ministry meant that Emaar could consul them on safety issues.

This in turn will lead to a higher standard of safety due to the vigilance of the authority.

The main thrust of the forum was the application of new methods of fire safety to mega projects and very high-rises.

Break down of $1.8bn contracts awarded

$961m $640m $27.5bn

to South Korea’s Hyundai Engineering & Construction for the Lusail Expressway

to the UAE’s Al Jaber Group for Package 13 on the Doha Expressway

Future projects: for 30 highway projects

King Abdulaziz International Airport Expansion Jeddah, KSA

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THE BIG PICTURE

Investment is one the largest foreign currency inflows into Egypt since revolution Bill Gates, along with a group of US-based investors, will commit $1bn to buy a stake in Orascom Construction Industries, the Egyptian construction and fertiliser company.

The investment is one of the largest foreign currency inflows into Egypt since the 2011 revolution, a Reuters report said. The transaction also consists of an offer to acquire all of OCI’s ordinary shares in exchange for OCI NV shares or a cash amount of $42.41 per share, a 4% premium to Thursday’s closing price, the report added.

OCI will absorb all local stock and global depository receipts of Orascom

Construction Industries under a share exchange offer that has attracted more than $2bn in commitments, the company said in a Bloomberg report.

This includes $1bn from US investors, comprising of Cascade Investments, which is wholly owned by Bill Gates, as well as Southeastern Asset Management and Davis Selected Advisers.

“This transaction is proof of the existing international appetite to invest in Egypt and bodes well for the Egyptian economy, with more than $1bn committed by US investors,” said Nassef Sawiris, CEO of OCI, in a statement.

With the company due to relocate its operations to Amsterdam from Cairo, it will start trading on the NYSE Euronext from January 25. It plans to launch an American Depository Receipts programme on the NYSE, the company added.

Dubai Municipality finds 64% of city built up Share of buildings in rural areas adds up to only 3%, survey finds

40% 45,364 40,392 Number of buildings in Deira

Number of buildings in Bur Dubai

Percentage of buildings surveyed that require maintenance

88,931 Total number of buildings in Dubai

64% 3,175 4,000km² Total area of Dubai emirate

Number of buildings in rural areas

Percentage occupied by buildings or under construction projects

3% Share of buildings in rural areas

56 doha buildings have been marked for demolition and renovation

Doha conducts building safety assessment campaign Municipality sets up panel to assess safety of buildings in Qatari capital Doha has marked 56 old and dilapidated buildings for demolition and renovation, the municipality has said.

Although it did not specify how many buildings were to be demolished, and how many were to be renovated, a panel set up by the Doha Municipality said that it had assessed more than 70 buildings in the capital, and singled out 56 for immediate action, whether renovation or demolition.

In a written statement to Arabic paper Al Arab, the Ministry of Municipality and Urban Planning said that the assessment was an ongoing process.

The panel warned that the 56 buildings posed a threat to the safety of residents, both in the building and those surrounding them.

Owners of the properties have been urged to cooperate with the panel.

Engineer-members of the assessment committee are preparing a list of at risk buildings, along with collating necessary details such as owners’ names, IDs and contact details and area and plot numbers of the buildings.

FEBRUARY 2013

MIDDLE EAST

Bill Gates buys $1bn stake in Orascom

13

News analysis fire

bigprojectME.com

A need for

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MIDDLE EAST

alarm

FEBRUARY 2013

NEWS ANALYSIS FIRE

A spate of fires has raised the importance of safety in the region. Big Project ME asks what can be done to ensure that lives and money can be saved?

“This is a worldwide problem.

I bet if you go to most malls worldide the managers will not have read the Fire Procedures”

Interior. At the recent Intersec Conference he was very positive: “The UAE is now united in its response. Engineers from every emirate meet to ensure standards are high and unified.”

There is developing adherence to world safety codes, as explained by Aaron F. Vanney, of Rolf Jensen & Associates. His talk was called ‘The New Era of Developing Fire Strategies in the UAE.’ Many of the codes adopted by the UAE are taken from the UK and the USA. But, and this is a crucial point, Dubai is stretching the envelope of buildings in terms of size. We are spaceonauts, constantly designing bigger open spaces and atria for the public to inhabit.

Michael Kelly is Director of Fire Safety Engineering for Emaar Malls.

He is a distinguished fire officer and an experienced safety consultant. As he rolls over to sleep at night he is responsible for the safety of around 100,000 people walking through the Dubai Mall on a good day, and all of the inhabitants and staff of the Burj Khalifa. In essence two of his major responsibilities are the tallest building in the world and the largest mall in the world.

He suffers none of the problems he would face in Europe except one. His budgets and resources are generous. His team is motivated and highly skilled.

He has some of the most advanced fire planning in the world. Then he hands over the mall to a mall manager. To make Mr Kelly’s world perfect though, he would like the mall managers to be more aware of how fire systems work. To be very clear though, this is not an EMAAR problem: “This is a worldwide problem.

I bet if you go to most malls worldide the managers will not have read the Fire Procedures.”

He thinks it’s a problem of education: “If we say only put one car in an atrium it’s for a reason. If we say there is a 10kW limit and the manager puts in a 20kW load by having two cars, he is trying to

FEBRUARY 2013

MIDDLE EAST

T

here are four elements, earth, air, fire and water. Each has massive potential to deliver the full fury of nature in the constant fight between the natural and developed world. Any element can cause millions of dollars of damage and loss of life.

Their effect is regional in some cases.

The UAE is lucky enough not to suffer from earthquakes and land based disasters or faults, such as California does.

Obviously in a desert environment water is not a massive problem, the chances of a tsunami in the Arabian Gulf remain small. We do not suffer from typhoons or hurricanes and the consequential loss of life and property.

Of all the elements the one which is most international and thus arguably the scariest is fire. This does affect Dubai.

Certainly it is scary that in the recent Tamweel Tower an entire tower block can be reduced to scrap by a carelessly thrown cigarette end.

But this is just the tip of the iceberg, as it were. According to the figures revealed by civil defence authorities, 3,359 fire incidents were reported in the UAE in the first six months of 2012 alone. The majority of these were in residential buildings and high-rises.

The UAE has responded responsibly and quickly. There is a new building code in Abu Dhabi and special attention has been given to a flammable cladding which may have been used in up to 500 other high rise buildings in Dubai.

Major Jamal Ahmed Ibrahim is Director of Preventive Safety at the Ministry of

15

NEWS ANALYSIS FIRE

bigprojectME.com

course for mall managers to deal with fire systems. But there is a strong argument that managers should be licenced and therefore directly culpable. Major Jamal Ahmed Ibrahim points out that the owners of the building take responsibility once the completion certificate has been signed. But, and this is crucial, no one person takes responsibility.

Michael Kelly is convinced that there is no space in the world, nor can there ever be, that is too big to be safe from fire: “It’s a case of planning. If there is a fire and there is smoke, that’s a good thing. It means the smoke systems are controlling the environment. If there is a fire in a large mall it only affects a tiny part of the mall. People can be shopping at the other end of the mall and not be affected.”

“Buildings are safe. It’s people who are dangerous. If buildings were empty they would never catch fire.” But Kelly thinks that the major enemy of safety is complacency: “People forget the risk and it takes a fire to remind them of the potential danger.”

So at this point the forum had discussed the building and compliance of buildings. We had heard about code compliance and its application to ultra

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MIDDLE EAST

make the systems do more than they were designed to. We need to explain why this limit exists.” The Kw rating is the amount of heat a car will produce if it catches fire. Another journalist succinctly explains the problem: ‘A car is a bomb.’

There are more mundane problems.

Some managers turn off the sprinkler systems if they are painting a vacant unit: “Sprinkler systems should only be turned off when there is no chance of occupancy by humans. At night, for example.”

It is remarkable that a manager of a mall or a large space is not directly responsible for the safety of his shoppers.

So there is a question of culpability.

The Airbus A380 can carry a few hundred passengers. A passenger liner could conceivably have a thousand souls aboard it. The Mall of the World, the proposed mall in MBR City could have a footfall of 200,000 people a day, on a busy holiday period.

There is currently no compulsory

FEBRUARY 2013

“Sprinkler systems should only be turned off when there is no chance of any occupancy. At night, for example”

large spaces and ultra-high buildings.

Tony McGuirk is the ex-chief fire officer of Merseyside. He is an advocate of early planning of fire risks. This is known as risk mapping and he demonstrated its long term effectiveness by showing a risk map of ancient Rome. It identified the Coliseum and the Chariot Racing track as potentially dangerous, and it charted water sources and fast routes access to the danger point. Dubai does not fully have this facility.

The firefighters of Rome had even more authority than our own ministries. Under Roman law each house was required to keep a bucket of sand by any open fires

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NEWS ANALYSIS FIRE

UAE gets aggressive on fire code The Tamweel Tower fire which saw 600 people escape after the cladding on the building catch fire has accelerated a change in building regulation for both existing and coming towers.

The rules include installing a ring of fireretardant panels every three floors to stop fires spreading, and external sprinklers.

The measures are an extension of the Fire and Life safety code drawn up by the Ministry of Interior and introduced late last year.

Maj Jamal Ibrahim, director of the preventive safety department of Dubai Civil Defence, said the new code needed to apply to existing buildings, not just new ones.

“In existing buildings we have been trying to find solutions that are not too costly for the owner, or that will cause the building

Another consideration in the fire safety scenario is that different buildings have different values, for various social reasons. Obviously buildings that contain people are the most important, as saving life is paramount in all firefighting, saving property should always be secondary.

McGuirk illustrates the point by showing an image of the waterfront in Merseyside, England. He points to some buildings from the 1960’s: “These are concrete boxes. If they burn down we can build some more.”

He points to the Liver building: “This building is iconic. It is the heart and soul of the city. Thousands of immigrants have sailed from this building. The Titanic sailed from here. We could never lose this it.”

If you think about it for a second you will mentally compile a list of iconic buildings in Dubai. The Burj Al Arab, the Burj Khalifa and many others have woven themselves into the fabric of our conscious.

The important point is that the way that buildings are designed. Each construction complies to fire safety codes and every fire extinguisher is strategically placed.

Engineers design safety systems and managers must comply more closely to understand and implement fire safety rules. Because there will always be a stupid man with a cigarette. n

to close,” said Maj Ibrahim. “We just want more safety requirements. One is outdoor sprinklers. Another is to have fire-retardant cladding every three floors.”

It is believed that about 70% of high-rise buildings in Dubai use cladding with a highly flammable thermo-plastic core.

“Also, there are more general safety issues,” Maj Ibrahim said. “No barbeques, shisha or gas cylinders. This will stop any cause of the fire.”

The new rules were announced at the Fire Safety, Standards and Regulations Forum at the Dubai World Trade Centre.

While most towers have indoor sprinklers and fire hoses, very few have a means of controlling a blaze if it spreads to the outside.

Maj Ibrahim said there was, as yet, no deadline for building owners to implement the new measures.

“We are still working on it,” he promised.

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MIDDLE EAST

and a bucket of water available to fight house fires. The firemen, or Vigiles carried out house to house inspections to ensure compliance. If they found a householder who did not comply, they dragged them into the street and flogged them to death as a warning to their neighbours.

McGuirk advocates the development of these risk maps. His own fire brigade visited over half a million homes to advise on fire alarms and fire safety.

From these visits they built up a profile of potentially high risk homes, and marked them as priorities.

He does stress, though, that information on these maps need to be immediately available to the men on the ground. The aim of all firemen in domestic fires is to be fighting the fire in eight minutes, the average time it takes for a fire to break out of the room it started in.

“The sad fact though is that most people who die in fires are already dead before the fire fighters are called,” he points out.

Many of the things that save our life we don’t see. Kelly points out that many stairwells are pressurised. This means that any smoke trying to enter the stairwell is forced back out.

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IN PROFILE philippe dessoy

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SIX

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SHOOTER

FEBRUARY 2013

IN PROFILE philippe dessoy

Philippe Dessoy talks to Big Project ME’s Jonathon Savill about why he thinks the Dubai construction market is about to get a whole lot tougher in 2013 9,000 are in the UAE. Of those around 2,000 are senior staff.”

Firstly he talks about the roots of Sixco: “In 1966 there were very few contractors. Dubai was a new country and nobody knew what would happen.

And as it began to develop there was a shortage of contractors.”

Now it is very different in Dubai: “The international crisis means there is not enough work in Europe. So people are coming to Qatar, Saudi, Oman – or where the money is. The Koreans are here, the Chinese are here. Korea has problems and the Chinese activity is down.”

Perhaps the secret of Sixco’s success is its versatility: “We always have around fifteen projects of which ten are major projects. We are working internationally in Qatar and Saudi. We have worked everywhere in the Middle East except Kuwait. We are currently the lowest tender for a major hospital there so who knows,” he reflects.

“We’ve tried to diversify but other markets are difficult. In Saudi we are building a major football stadium. We are happy where we work. We have been approached to build in Iraq but we feel it is still a little bit early. Perhaps in two years’ time but for the time being we are holding back.”

Of course to create a tender document is expensive: “The most costly tenders are Public-Private partnerships (PPP).

There you need a design team, you need

“We have been approached to build in Iraq but we feel it is still a little bit early. Perhaps in two years’ time but for the time being we are holding back”

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A

s in many professions you are largely as good as you last job. The problem in lean times is that you have to also be a good as your next one. In good times quality contractors such as Sixco can point to their achievements and their quality matrix.

And in Sixco’s case these are many and impressive. They have been involved in most of the iconic projects in the region.

These include the Grand Mosque in Abu Dhabi, Burj Khalifa, the Corniche in Abu Dhabi, and many others.

You’d think that a reputation like that would get them into every tender bid and it mostly does. But in these troubled times they are forced to compete with smaller companies prepared to drop their prices for turnover work.

Sixco is a Belgian Group and Six Construct is their name in the Gulf. The company came to the region in 1966 and their first job was the development of the Corniche in Abu Dhabi.

The general manager of Sixco, Philippe Dessoy, spends some time explaining how the contractor market has changed. He is an affable man, with an easy confidence.

The sort of man you’d want to buy infrastructure from.

He graduated as a civil engineer from Brussels University in Belgium in 1983.

In 1989, he got his first job at the Besix Group in the Belgian head office as a civil estimator for the international markets.

He moved to Dubai in September 1992 to be in charge of the tender department for the GCC operations of Besix. He was promoted to deputy general manager of Six Construct in 2003, and then general manager in 2007.

So Philippe has been in the Middle East for the last twenty one years and Sixco for forty seven. And the company has grown, as he explains: “Now in the Gulf we have 15,000 people of which

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IN PROFILE Philippe dessoy

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lawyers, you need financial. These are a lot of activities which are outside the scope of a contractor so these can cost up to three million dollars. Design and build tenders cost a lot of money, maybe a million dollars. Some projects are already designed, maybe a consultant has been called in. Then, they can be as low as a hundred thousand dollars.”

“We will turn down a project if we do not think we can bring something special to the project, if is too easy. That is why we try to build landmark projects. But there are limits to how big we can go. Take the Burj Khalifa. It is not too big to build it, but it is too risky. We did Burj Khalifa in a joint venture with Samsung and Arabtec. Even a massive project like that was a tender, five groups were invited.”

So why have Sixco lasted so long? “We are very selective about who we work for. We work for governments or listed companies. We have two ongoing PPPs with the Ajman Government, and another with the Abu Dhabi government for the last three or four years. These companies are proper working entities, the Abu Dhabi government own 60%, we own 20% and another contractor has 20%. So the government is controlling the revenues and costs, they are truly in control.”

“We are contractors before we are investors. A PPP is not that profitable but our revenues are more stabilised. A PPP gives you some flat revenues. Contracting is up and down, now it is down, but five years ago it was a boom.”

He explains how projects work: “We try to find more specialised projects. We have three types of activities including Marine. In Marine work we would take any projects, even small size, because marine work needs special equipment and we have it. We like projects which are machine intensive because they are more specialist and therefore more profitable.”

“In infrastructure such as Doha Metro we are talking up to $3bn so we go into a joint venture to spread the risk. In building we can put up a project in our own unless it is a really big building and we decide to spread the risk.”

He explains how the current climate affects contractors: “In the current climate customers will nearly always go to the lowest quote for the moment. This

FEBRUARY 2013

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“It should be easy to make money here with cheap labour and no taxation. But everybody has the same conditions. It is a very competitive environment”

Philippe Dessoy

was not the case four years ago. If it is a few percent then it may be okay, but for more than that, then they will go for the cheapest quote, especially if the project is not that urgent.”

“It should be easy to make money here with cheap labour and no tax. But everybody has the same conditions. It is a very competitive environment so everyone gets labour from the same places. For the developer the cost of the construction is cheaper than in Europe, not for the contractor, just for the developer,” Dessoy adds.

Asked if he is worried about new companies coming to Dubai he is definite: “New companies are not coming into Dubai anymore, they are going to Qatar.”

But it is still intensely competitive in the UAE: “I would not start a new company now though because the projects are getting bigger and bigger and are therefore more risky.”

“We are starting to see movement in Dubai. Abu Dhabi is restarting projects and Qatar is booming. We are very lucky because we have had no trouble getting paid. Still it is not always easy to be cash flow positive.” n

14-17 April 2013 Jeddah Centre for Forums & Events Kingdom of Saudi Arabia Co-located with

Saudi Building & Interiors Exhibition

The region’s largesT ConsTrUCTion

eQUiPMenT eXhiBiTion Find out more. Visit www.constructionmachineryshow.com © 2012 Corporate Publishing International. All rights reserved.

Following a successful 2012 event, the Construction Machinery Show, the largest construction machinery exhibition in the Gulf region, returns to Jeddah between 14-17 April 2013.

With the total value of awarded construction contracts reaching $72 billion in 2011 and with much more to come, the Construction Machinery Show is the ideal opportunity for buyers of construction machinery and heavy equipment to meet manufacturers, suppliers and distributors.

A total of 450 billion Saudi Riyals ($120 billion) will be spent on construction projects between 2012-2016, and much of the development is focused on turning Jeddah into a world class city, making it the perfect location for the Construction Machinery Show.

The 2012 exhibition proved that Saudi Arabia is the most dynamic country in terms of construction in the region, drawing praise from exhibitors for the quality of his attendees and the number of deals signed on the show floor.

With over 20,000 sqm of space at the Jeddah Exhibition Centre dedicated purely to construction equipment - the Construction Machinery Show in 2013 will once again stand out as an event where visitors come to buy.

We will be back in April 2013, Will you?

Gold Sponsor

Power and Lighting by

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ON SITE Al Hamra village

bigprojectME.com

Project Name

Al Hamra Village

Location

Ras Al Khaimah, UAE

Site Area

120,000m²

Building type

Mixed-use residential development

Construction cost

$720mn plus

Village Life

Big Project Me takes a tour of the Al Hamra Village development in Ras Al Khaimah, the emirate’s largest freehold residential development

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he tiny emirate of Ras Al Khaimah isn’t really known as a hot bed of construction, as focus in the emirate has traditionally veered towards industry and manufacturing.

While the likes of Abu Dhabi and Dubai hog the limelight and attention of the world, this sleepy northern emirate has gone about its business with a minimum of fuss and fanfare.

This is about to change, however, as the emirate’s ruler and government have put in motion ambitious plans to redevelop and regenerate Ras Al Khaimah by launching numerous real

FEBRUARY 2013

estate projects that are destined to put this most unassuming of emirates firmly on the map.

Central to this plan is the Al Hamra Village project, a massive mixed-use development that stretches out over more than 120,000m2 along the Ras Al Khaimah beachfront. With a built up area of 95,000m2, the project is intended to be a statement of intent for the emirate as it looks to become a destination of choice.

“Al Hamra Village is the first freehold residential development in Ras Al Khaimah,” says Binoy Kurien, general manager of Al Hamra Real Estate

Waldorf Astoria Refurbishment of the Waldorf Astoria is close to completion.

ON SITE Al hamra village

Development, the developer behind the project. “We saw the potential in this place.

Initially we had only the Al Hamra Fort Hotel in this area and it was doing pretty well. However, we saw the potential of developing this whole area into something, and that’s how we started envisioning Al Hamra Village,” he explains.

This vision has grown to encompass not just the village, but an adjacent 41,000m2 shopping mall, an eighteen-hole golf course, a 200-berth marina and Al Marjan Island, which is built on reclaimed land off the coast of Ras Al Khaimah.

Furthermore, four hotels are in the process of being built or refurbished on the grounds of the development; the Waldorf Astoria Ras Al Khaimah, the Al Hamra Fort Hotel and Beach Resort, the Banyan Tree Ras Al Khaimah Beach Resort, the Al Hamra Village Golf and Beach Resort, the Al Hamra Palace Beach Resort and the Rixos Bab Al Bahr Hotel.

Kurien points out that the project has seen significant investment from both the company and the Ras Al Khaimah government. With more than $490mn sunk in to the village alone, there is a lot riding on its success, a situation not helped by the initial obstacles the developer faced.

“One of the biggest challenges we had in this area was a lack of infrastructure, basically power, water and those kinds of things. To overcome some of these issues, the RAK government invested in a power plant, which is run by the RAK Investment Authority. That was commissioned to serve the area, including the residential parts and the industrial parts (of the area).

All of these were part of the big picture and the RAK government decided to invest in infrastructure,” Kurien says.

“Also, approvals were given to private players to open and set up water plants and utility companies. So we have more

than one service provider giving us power, water and other utilities. That was one of the major challenges, and the government took measures to mitigate those risks and put infrastructure in place,” he adds. “We still do not have FEWA power in the free hold properties. Part of the village, yes, has got federal power, but the rest is from the local government, so that was one of the major challenges.”

“Apart from that, we thankfully have our own in-house construction company, so we didn’t face many challenges on the construction side, because we were managing it ourselves. So whatever challenges, we handled it internally ourselves,” Kurien says.

This in-house company proved to be a major advantage during the completion of the project, he explains. Despite being affected by the financial crisis, the developer remained committed to complete the projects they had announced, and as a result, having an inhouse contractor helped keep costs down, while allowing Kurien and his team to control the pace of development.

“Of course construction slowed down, but it didn’t stop because we were already in development. We’d already started construction and we had commitments with owners and with people who’d already bought properties. So whatever we had announced before the crisis, we had to complete,” he adds, pointing out that the last of those announced projects was the Royal Breeze buildings, which were completed in October of 2012.

In addition to the new build taking place on the project, Al Hamra was faced with the task of refurbishing a number of hotels on site, including the Al Hamra Fort Hotel, a $30mn project which will see everything from MEP systems to furnishing revamped and redone.

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“Of course construction slowed down, but it didn’t stop because we were already in development. We had already started construction and we had commitments with owners and with people who had already bought properties”

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ON SITE Al Hamra village

This is part of a wider plan that will see the development grow to become a self-contained mini-city, complete with its own shopping mall, school, entertainment and healthcare facilities, says Kurien as he lays out his ambitions for the project.

“We have not finished everything, but we’ve finished what we’ve announced.

We still have land to build, but there’s also certain facilities that we need to provide.

For example, this locality does not have a school, so hopefully, by the end of next year, we should have a school in Al Hamra Village,” he explains. “(Additionally), we’ve engaged a master planner to plan out Al Marjan Island. It’s a huge place and we’re looking at various options as to what we need to do on that island, feasibility studies are being done and as and when we get to that stage, we’ll announce the projects and go forwards,” he

bigprojectME.com

binoy kurien

“We’re faced with a dilemma of whether to open in May or in August. There is no point in opening during the peak of summer. It’s more expensive to keep the hotel open than it is to keep it shut”

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system upgrade Work is underway to upgrade the hotels’ systems.

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FEBRUARY 2013

insists, adding that he was looking at 2015 for a potential completion date.

Meanwhile, the developer is carrying on with the development of the village, with plans afoot for an expansion of the shopping mall and the building of essential facilities such as a supermarket, pharmacy and a community centre.

Kurien adds that these projects will be going out to tender soon, with a tentative completion date scheduled for the end of the year.

On top of all this, Kurien says that the Waldorf Astoria hotel is well underway, with the project (valued well in excess of $200mn) set to be open this year, following extensive refurbishment work to bring it up to the Hilton Worldwide brand standards, who are managing the property.

“We’re faced with a dilemma of whether we open in May or in August.

There’s no point in opening during the peak of summer. It’s going to be more expensive to keep the hotel open than it is to keep it shut! If we cannot open on May 1st, we may open after the summer.”

“Right now, construction is substantially complete. What we’re doing now is snagging and interiors. The contractor is finishing snags and getting out, while the operator’s engineering team is already in the building and they’ll do some fine tuning. It’s very difficult to say whether it’s going to be one, two or even three months, everything has to come together,” he muses.

Wrapping up the tour, Kurien lays out the agenda for Al Hamra Village: “For 2013, our plans are to finish the Waldorf Astoria and get it open, finish the renovation of Al Hamra Fort Hotel and get it open by the last quarter of the year and to finish the expansion to the Al Hamra Mall.” n

special report casa tram

bigprojectME.com

Project Name

Casablanca Tramway

Location

Casablanca, Morocco

Site Area

31km

Building type

Public Transport

Construction cost

$700mn

CASA

TRAM The opening of the new Casa Tramway signals a new stage in the regeneration of Casablanca into a world class city able to look forward to a bright future

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he truck driver ahead of us is sat on top of his horn and his passenger has his head out of his window shouting at the car in front one of them. A mixture of Arabic with French swearing is fighting with the howl of the horn to be heard. The Peugeot driver hears both but he can’t move. The traffic lights have stopped working and the crossroad is in gridlock. Welcome to Casablanca the city that never sleeps when the traffic is bad.

And the traffic is always bad, the calm man at the wheel of our vehicle tells us. In two days a light railway – or more

FEBRUARY 2013

exactly – a tramway is coming to town. No sooner than we cross the great divide of the crossroad we are stationary again. The cab in front adds another three passengers to the three inside a haggard-looking Mercedes. In most cities in the world, a stranger jumping onto your lap to get to his next destination would end in fisticuffs. In the tightly squeezed streets of Casablanca it is the only way to travel.

Big Project ME is in Casablanca to see the city’s first light transportation system – a tramway – open. It is set to be a big event with the King of Morocco and the

French PM officially inaugurating the line.

For the two days leading up to that event getting around the city, like it has been for decades, requires a lot of patience and a little bit of luck.

Building a light railway in the Moroccan city has been a political and social hot potato ever since the French occupiers of the city attempted to build one at its new port in 1907. Seeing the city as a key staging point on the Atlantic coast of its expanding empire in North Africa, the European country was simply constructing what it saw as a useful link for incoming trade.

special report casa tram

Unfortunately the French misunderstood local resistance to the plan and in particular the route which travelled through one of Casablanca’s most treasured cemeteries. The events that followed were to change the history of Morocco forever. The citizens of Casablanca unleashed their anger on the streets of the city attacking and killing several French residents as they rioted. In retaliation the French army was sent in to wrestle control out of the hands of the Morocco and took Casablanca under its

protection. The Sultan would soon lose his country and crown.

It is with historical irony that a century later that the government of Morocco wants Casablanca to cash in on its prominence as the commercial centre of the country using French expertise and vision by opening the tramway as the city’s major artery.

At the turn of the 20th Century the population of the city was a few tens of thousands. The French colonisation helped take that to over a 100,000 but the number of people living in the city has exploded to almost 4 million. The existing infrastructure that has created channels,

Casa Tram – at the heart of the city n Length 31km n Trains 74 Citadis wagons

n Passengers 70,000 per annum

n Travel time 60

minutes end to end

n Frequency 4.5

minutes at peak

n Green credentials

Eco-design, reduced CO2 emissions

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“It has been a great challenge to launch Casablanca Tramway on the due date. and we are proud to have achieved it.”

from the Madinat at its centre to the surrounding French architecture and the concrete housing beyond, struggles to cope with the haphazard nature of Casablanca’s rapid growth.

A light transport system in Casablanca, once so unpopular, is now an essential element to its new regeneration into a fully functioning modern urbanised metropolis.

A major highway will follow that will join the developing tourist-friendly corniche and beaches, the stunning Hassan II Mosque, and the heart of the city. The Madinat which lies at one end of the planned road and alongside the United Nations Square and the tramway will also be redeveloped. In heavy disrepair and poorly lit, it is the sort of place that gives lost tourists nightmares. The government believes it could be a major attraction and is shifting thousands out of the city centre to the outskirts.

In reaction to the so-called Arab Spring, Morocco has quietly reformed its institutions with its Prime Minister

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Abdelilah Benkirane riding a wave of popularity into office that saw him promise to tackle corruption. One of his main targets are the operators of the bus companies who have been accused of bribery to win licenses.

The tramway could become the symbol of a new Casablanca and Morocco and Casablancans are embracing the changes to their city. On the day of its official inauguration thousands of people line the streets on a chilly December afternoon to see the King Muhammed VI of Morocco (he arrives standing and waving from the back of his official vehicle to chants of “All hail the king!”) and French Prime Minister Jean-Marc Ayrault officially inaugurate Casablanca’s new tramway.

The construction of the tramway was entrusted to Casa Tram, a company formed by a consortium consisting of the Paris Transit Authority (RATP), the Caisse de Depot et de Gestion (CDG) and Transinvest.

Constructing Morocco’s first tramway was a logistics challenge in itself. The line crosses the city from the east to the west, linking various neighbourhoods from Sidi Moumen suburb to Ain Diab coast, the city centre, the universities, its commercial centre and the main train stations.

Congestion to the already crowded city was always going to be inevitable.

Fortunately the contractors were able to turn to France’s Alstom, provider of its Citadis tram wagons, for expertise.

Alstom, which is currently working on the Al Sufouh tramway in Dubai, addressed many of the issues posed by the insertion of the tramway into the urban environment taking into account issues such as the impact on utilities, road

FEBRUARY 2013

bigprojectME.com

traffic, pedestrian traffic, landscaping, accessibility to all users, safety issues and a variety of aesthetic issues. Like their Dubai counterparts, the Citadis trams are adapated for Morocco’s Middle Eastern climate. Loic Dubois, tramway strategy manager at Altsom, says they have been fully re-engineered to match the stringent requirements of the environment (taking into account temperature, humidity, corrosion, sun exposure and sand).

Competition for the contract he says was tough with Alstom fighting off rivals from Spain and Italy.

“It was a big challenge,” he says.

First announced in 2008, the $700mn project (the Al Sufouh tramway is valued at $250mn) came in on time and under budget. In what is a world first for a project of this type, the main 31km line opened across its entire length with every one of its 48 stations opening for business at the same time. In addition, Alstom won the service and maintenance subcontract in July 2012, adding to the pressure of being ready on time. Dubois adds: “That was another big challenge. But we did it!”

Youssef Draiss, general director of Casablanca Transport en Site Aménagé SA agrees: “It has been a great challenge to launch Casablanca Tramway on the due date. 12 December 2012 was set by all the authorities of Casablanca City and we are proud to have achieved it.”

While the construction continued, RATP Dev developed the operating programme and procedures along with the regulations and the maintenance policy. It carried out all technical operating trials and signed off on non-rolling stock, energy supply facilities, signalling systems and rolling stock. At the same time, it quickly

deployed a team of RATP experts to hire and train local staff. Around 15 experts from RATP and RATP Dev were seconded to the project and over 600 direct jobs were created by it.

With time running short, the final phase of the construction, including the testing of all the equpiment used on the line began in the summer.

A dry run phase prior to entry into service was successfully concluded with operational exercises used to test the overall system and prepare facilities for welcoming passengers.

“Testing was made difficult because of this short amount of time,” says Nadia Bourhiz, the deputy director general of Casa Transport.

“There are a lot things that the public won’t get to see, but all of the equipment had to be tested.”

The testing phase included seven months of dry runs. Bouriz says that it was also a test for the road users of Morocco to get used to the trains and used to making way. Fortunately she adds wryly: “There were no major accidents...”

Casa Tram’s Drais says that there was added pressure to set up the operation and “to work out the roles of everyone” ahead of the December deadline. He adds that a second line is now on course and on time for a 2015 opening.

“The challenges of projects like these are numerous. But we wanted to show that Morocco is capable of doing what we set out to do and on time. And now, we’re in a position to operate a second line.” n

Project delays

Dealing with

delays

Big Project ME puts on its protective gear and looks into the mirky world of delays. What can be done when your project grins to a halt?

Although predominantly contractor based; PARC’s team are even handed working on the contractor or client side.

“We’re not hired guns”, explains Stephen Parker PARC’s Managing Director, “that means that the outcome is what the facts say”.

PARC’s world appears to be largely one of problem solving as a result of difficulties that arise during construction projects, many of which are related to time. Stephen Parker explains that: “Project delays can come in several different forms.”

He gives an example of how projects can become delayed: “Suppose a contractor commences excavation at site and then identifies that they can’t lay the slab on a piece of ground because the

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I

n a perfect world, projects would run to plan: the employer would specify a project; the contractor would build the project to specification and to budget. And, indeed there may even have been a project that actually worked like that! In case of one that doesn’t, allow us to introduce Parker & Rawling Consultancy (PARC).

The exact nature of PARC’s role is ‘commercial and contractual consultants to the construction industry-what that means, is they provide a range of professional services, and to work alongside their clients throughout the dispute process.

Their offerings include: contractual advice; delay and additional costs services, as-well-as expert work.

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Project delays

The Louvre is restarted Abu Dhabi’s grand vision of becoming a cultural centre was given a massive boost last month with the news that the Louvre Museum project is to be restarted.

Arabtec has been awarded the contract to construct the Abu Dhabi branch of the Louvre museum, the Dubai-listed contractor said in a bourse filing.

Piling on the Louvre was completed in 2010, but it has remained in the doldrums since then. Construction will begin immediately with completion in 2015, said Abu Dhabi’s Tourism Development and Investment Co (TDIC).

bigprojectME.com

piles are in the wrong place. And they didn’t construct the piles. The engineer may say that you examined the site, you saw the ground conditions, you took the risk - it’s your problem.”

A delay can ensue while the parties decide how to rectify the problem. One of PARC’s roles is to ascertain the cause and effect of such delay. Delays get notified at different times, the contract tells you when you’re supposed to notify. However, at the beginning of a contract there is usually a “honeymoon period”, during which contractors may be reluctant to issue notices for fear of upsetting relationships with an employer. This position changes when they can no longer absorb the time and cost implications of failing to do so.

When notices are issued, the engineer may agree that the contractor is right. The

put a line in the sand, and move on,” he clarifies to Big Project ME. “By and large time is one of the biggest issues that results in problems.

Early delays can be the hardest to resolve promptly. Agreements are more likely to be made the closer a project comes to completion”.

Shifting focus, Stephen Parker talks about money: “The lowest level of our business usually involves contracts of tens of million or so, but they can go into a number of billions of dollars.”

When times are tough a contractor may have revisited his tender several times before being awarded a project.

So a delay of a month or so, for which he was not responsible, may wipe out his margin. In that case raising a dispute may be necessary. However, if the contractor

The contract is valued at $653mn. Stateowned TDIC obtained approval from the emirate’s executive council last year to proceed with building three iconic museums in Abu Dhabi; the other two are the Guggenheim Museum and the Zayed National Museum.

“it is about balancing risks. A lot of arguments arise when one party considers that a problem is a risk item, but the other does not”

The Louvre is now due to be completed in 2015, the Guggenheim in 2017 and the Zayed National Museum in 2016.

Originally, they were to be built between 2013 and 2014.

The Louvre Abu Dhabi is part of a thirty year agreement between the city of Abu Dhabi and the French government. The museum is to be located on the Saadiyat Island complex, and will be approximately 24,000m2 in size.

A number of projects were postponed due to the economic condition last year in the wake of the global financial crisis; following the review, some projects are

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slowly proceeding once again.

FEBRUARY 2013

contractor may also be wrong. Problems occur when one party considers its right but the other says it’s wrong.

Stephen Parker explains: “This is where we get called in. One of our roles is to draft the reasons for the delay and demonstrate delays to a contractual programme - including any costs associated with the delay”.

The purpose of a contract is to protect the parties. If there is a delay there is a process to deal with it. Notices are given to protect the rights of the parties. Some contracts provide that if notices are not given, you can fall foul of time bar.

Stephen Parker dismisses that they are lawyers: “We’re not lawyers, but we work closely with lawyers on various projects”, he said.

“In a perfect world, there would be no disputes. The party that employs us is hoping they can find a non-contentious solution. In better times, some employers are more willing to say that they appreciate there was a problem, conclude the matter,

caused that delay, the employer may claim liquidated damages.

Stephen Parker is pragmatic about the role of PARC: “The contracting world is a risk game, it’s about balancing risks. Contractors have to make certain assumptions in their pricing. A lot of the arguments arise when one party considers that the problem is a risk item, but the other

project delays

“Delay cases are nearly always about time and money – at the end of the day, it’s about how much delays cost the parties”

does not.” At this point PARC are called in to help resolve the situation.

“These problems tend to spiral. At this point there may have been twenty notices of which seven or so are critical. We try to assess the delay caused by each event and start by looking at the site records and other documents. Sometimes we find flaws in the arguments. At which point we may conclude that progress delays were attributable to some of the slippage on the part of the contractor. Our preferred method of delay demonstration is the ‘Time Impact’ form of analysis, undertaken using Primavera P3 or P6 software.”

PARC’s engagement can range from a contract review which can last a few days or so to an engagement which can last for a number of years.

The larger cases require people on a full time basis, but PARC usually handle several cases at a time.

ZF technology – the intelligent choice.

“Delay cases are nearly always about time and money – at the end of the day, it’s about how much delays cost the parties”.

History has shown that hard market conditions will generate disputes and Dubai is a perfect example of this, Parker points out as he concludes the discussion. n

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PRIVATE FEBRUARY 2013

FINANCE PPP

PPP was once championed as the golden goose of infrastructure development in the Middle East. Postdownturn there is renewed interest on both sides of the public/private divide, Jonathon Savill writes Collins and Mark Godfrey, of Latham & Watkins LLP, are lawyers who have studied these partnerships. They point out some successes in their report: ‘In some sectors (e.g. power and water, waste water, etc.) and in various MENA jurisdictions (including the UAE, Saudi Arabia, Qatar and Oman) a PPP type approach has led to widespread positive commentary about the effectiveness of the chosen procurement models.’

But of course they are lawyers so they have a counter argument: ‘Other than the above, the track record of successful PPP projects has been quite limited. A number of high-profile ‘pathfinder’ projects which were being tendered on a PPP basis have not been successful and have either been abandoned completely, procured by more conventional direct procurement methods, substantially de-scoped or have been subject to substantial delays’.

In fact there are several problems with the PPP model. Projects such as this require a marriage between public and commercial interests. One model is ‘for the people’ and the other is very much ‘for certain people.’ And inevitably, in a model where one side is desperate and needs the product badly, the government will pay top market price for the project.

The other point is that many governments in the region, certainly in the UAE, can afford to pay for the infrastructure projects they need. Collins and Godfrey point out that those governments in this region have a great opportunity to learn from the mistakes made by governments in

“PPP is just taking hold, but governments are learning the lessons from the west”

FEBRUARY 2013

MIDDLE EAST

P

ublic-Private partnerships should be the answer to a government’s prayer.

The government has a project, normally infrastructure-related, such as a sewage plant or water treatment facility. In the normal course of events they tender the project, contactors bid for it, and the government pays for it.

In recessionary times the government can’t afford to pay for large infrastructure projects. But populations keep growing and shifting so the government is forced into a situation where they can no longer hold off on building them. Enter PPP. In theory it is a brilliant idea. The government gets their project and the responsibility, and money comes from the private sector.

From a government point of view it looks like a very good solution. They get their facility and move their debt out to a twenty or thirty year time frame. At the end of that period they often take control of the facility.

So why is it good for the private part of the partnership? They are getting a long term commitment from a government organisation and likely to have a cash cow for several years. In fact many PPP deals are owned by the government on one hand and an SPV on the other. These ‘Special Purpose Vehicle’ companies are equity based and typically will consist of a contractor, a maintenance company and a bank lender.

A recent example of a PPP was a power station in Egypt. The contractor built the power station and the government agreed to buy electricity at a certain price over a number of years. This is a good example because the government is buying something they needed anyway over an extended period of time.

So the major question is why PPPs have largely failed to ignite the imagination of governments in the Middle East? Nick

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FINANCE PPP

40

MIDDLE EAST

the western part of the world.

They point to a number of points to ensure that the PPP process can work smoothly. Their first piece of advice would loom out in Planet Lawyer: ‘Take time to get the procurement structure and the contractual arrangements right.’

Essentially they also advise governments to adopt regimes that have worked elsewhere in the world (e.g. the UK, Canada, etc.). But then they say ‘Governments should be wary of a ‘onesize-fits-all’ approach.

Those governments that have established a central PPP unit have historically had better results in successfully procuring PPP projects than those that have not. This means that the ruling body has a more consistent approach and can learn from its own earlier mistakes and negotiate better.

Collins and Godfrey are optimistic about the future: ‘Although PPP projects have not yet taken hold across the MENA region in the way that many commentators anticipated, the future remains bright for PPP as an infrastructure procurement and delivery model for the MENA region.

Demand for infrastructure investment remains undiminished throughout the MENA region notwithstanding the global financial crisis and the on-going uncertainty resulting from the Arab Spring. Because of the sheer scale of the infrastructure gap affecting many countries in the MENA region, PPP is still likely to become an increasingly important tool for regional governments across a range of infrastructure sectors.’

They are not betting on it happening immediately though: ‘As many regional governments are still at a relatively early stage in the adoption of PPP, it may take some time for the up-take to happen.’

The World Bank has estimated that governments in the MENA region need to spend between US$75bn and US$100bn annually in order to sustain growth rates and to boost the economic competitiveness of MENA countries.

It seems though that the PPP model exists largely so western governments can pay slightly over the odds for extended payment terms. As we have seen on several occasions in the UAE governments tend to help each other out financially, witness

FEBRUARY 2013

bigprojectME.com

PPP Projects Governments with central PPP units have better results.

several loans from the direction of Abu Dhabi, for example.

Also the existence of favourable funding in terms of Islamic banking means that local ruling parties almost certainly have access to better funding than western governments. Also Islamic funding largely relies on equity stake profit which is a similar model to PPP. Claire Grainger, of Prestige Advocates, is an expert on PPPs. She advised Aqualia on the recent New Cairo Wastewater Treatment Plant. The project closed in record time of six months, through a PPP initiative under the Egyptian Government through the PPP Central Unit.

This however is not the traditional build, own, operate, transfer. The PPP Unit has instead favoured the Build, Operate and Maintain and transfer, with intensive and comprehensive termination provisions and a short O&M lifespan. This has model can be seen replicated elsewhere in the MENA regions, including the recent award on which CG worked on for a Abu Dhabi government consortium to operate and manage the sewage and water treatment system in Abu Dhabi a seven-year contract, worth $102mn.

MENA governments generally are not willing to let the private sector manage public utilities for long periods of time, and this is reflected in the relative short O&M periods, she explains.

“PPPs are just taking hold, but so far local governments appear to be learning from the lessons of the west,” Grainger says in conclusion. n

TIME & MONEY ARMINOX

bigprojectME.com

Helping you make the smartest decisions

Steel

benefits Big Project ME talks to Torben Kerbs, general manager of Arminox Middle East about how stainless steel reinforcement can help save developers and contractors time and money onsite.

T

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MIDDLE EAST

he Middle East’s construction industry has long grown accustomed to seeing projects delayed due to a variety of factors.

These delays often have serious implications across every tier of the construction industry, with millions of dollars lost and firms buckling under the pressure of their debts.

In these fiscally tight times, developers and consultants are always looking for ways to reduce costs and save time during the construction process.

In this month’s issue, BPME speaks to Torben Kerbs, general manager of Arminox Middle East, a leading supplier of stainless steel reinforcement in the construction industry.

FEBRUARY 2013

What are the benefits of stainless steel reinforcement and how can it help the construction industry in the Middle East?

Since infrastructure is becoming more and more expensive, the demand for lifetime is also increasing. If you go back 30 years, a bridge design would be for 30 to 40 years, but now with new specifications, a bridge is to last 120 years.

There are a few ways to try and obtain that, you can either add chemicals to your concrete, that’s very doubtful, but it is done. The problem with that is that the chemicals, they wash out over time and you release them into the environment, and that’s a bad solution.

TIME & MONEY ARMINOX

How aware is the region when it comes to stainless steel reinforcement?

There is an increasing awareness, because developers are making bigger projects and if they don’t do it properly, they have the fear that even before they finish the project, the first part of it will need maintenance.

We’re seeing an increase in quality, even amongst private developers.

Although it’s a competitive market and price is one thing, the demand for quality is also increasing as well. When you decide to use stainless steel, you don’t change

everything. You look at your structure and you say, ‘okay, where do I have a problem?’ Normally, if it’s a bridge, you have a problem where the tide is moving up and down, in this area only the first area of reinforcement is stainless steel, because the chlorides will never go to the second layer in 100 years.

I can give you a very good example, Sheikh Zayed Bridge in Abu Dhabi, that was the first bridge that was designed by this new concept (in the UAE).

That has 41,000 tons of carbon steel and 900 tonnes of stainless steel. So it’s a

It is important for us to work with the owners and the architects and consultants from the beginning, because there are certain advantages when you start to design with stainless steel.

For example, from the beginning, you can reduce your costs: If you do your design for carbon steel and then we come later on, then you waste that money.

We follow which projects are planned and then we select which ones are suitable for us. Then we go see the owners and we start from there. We make a presentation and we explain the

“If you use conventional steel, you can expect a lifetime of 20 to 30 years, we can extend that to 120 years, by adding only one or two percent to the initial cost.”

very small portion to give those 120 years of maintenance free life.

The price of 1kg of stainless steel is about seven times the price of carbon steel and that is why we have to work very closely with designers, because if you over-design it, you cannot build it, it becomes too costly. And that’s where we come in, it’s our expertise.

How important is it to work with designers and consultants from the beginning of a project?

advantages they’ll have and so on.

One of the problems you have is that the more infrastructures you have the more of your budget you have to allocate to maintenance. And you’ll reach a point where there’s no money left for new projects because everything is going into the project’s maintenance.

How much time can this save a project?

We don’t sell just the steel, what we do is that we get the drawing from the contractors, so we do the cut and bend, so he gets the finished product ready to install.

Once we start a bridge, for example, it’s normally a two or three year project.

We sign a contract with the contractor and we follow them throughout. We get on a weekly or a monthly basis, the requirements for the following months.

Then we have a fully computerised optimisation system where we do the bar bending schedules and only then do we begin production.

We then deliver it to the contractor, just on time, when they need it. So they don’t have to off-load it somewhere and store it, and then get it back again. It goes directly to the site, so it saves a lot of time. n

FEBRUARY 2013

MIDDLE EAST

Another thing you can do is add to the concrete cover, but that gives you a very heavy and very costly construction. It’s difficult to maintain the cover, because you have a lot of cracks and then you don’t solve the problem in any way.

So our solution is very simple, it saves a lot of money in construction, a lot of money in maintenance. If you use conventional steel for construction, you can expect a lifetime of 20 to 30 years, we extend that to 120 years, by adding only one or two percent to the initial cost.

When you use stainless steel, you don’t have to be very particular about the type of concrete. So to install it is very easy and you don’t have to take any precautions.

Stainless steel, you just fix it and it’s ready, so during construction, a contractor will save time because he has less concrete and a lighter structure, and so he saves costs and time because construction is faster.

43

COMMENT BMS

bigprojectME.com

JASON WHITEHEAD

An integrated approach Jason Whitehead of Honeywell argues that an integrated approach to building managament systems (BMS) are essential if the Middle East is to continue with developing large-scale projects

T

Jason Whitehead is a trained electrical engineer and project manager. Spending much of his career in oil and gas, he’s been with Honeywell for 15 years taking on the role as regional general manager in 2010.

here was a time when there was so much work that it was easy to get confused and you drifted off your strategy. That time has passed.

Following the global financial economic crisis, 2010 was a good time for us to look at the leadership at Honeywell and the strategy and structures we had in place. There were a lot of cash flow issues in the market; that made us more conservative in our approach to growth.

Typically our model at Honeywell Building Solutions is to pick the right projects that lead us to service. I think at that time we probably took on some projects that didn’t have the right service model at the end and didn’t fit our strategy. We’ve now got back to the core strategy where we perform best: critical infrastructure, healthcare, educational facility and right-sized projects in the hospitality sector.

As we saw what was happening in the construction market, we leveraged off our air-side operations. Honeywell has a very proud track record in airspace from the cockpit right down to airfield management. We’ve got great reference sites here like Dubai Airport – the whole airport and runway traffic lighting systems are Honeywell systems – Al Maktoum in Abu Dhabi is another example.

However BMS will be always our core and we realised we were one of the few vendors that can offer both airfield and

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MIDDLE EAST

Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

FEBRUARY 2013

landside solutions; such as terminal buildings, HVAC, fire systems, security, etc, and the space in between.

Design, build, integrate What we’ve added to that range is the role of being a large scale integrator for third-party vendors. On a security project, for example, 70% of that could be third-party vendors that we can interface to; such as parking traffic management systems, barriers, under-vehicle surveillance, etc. All of which hinges off our platform. We’ve set up a solution design centre here where we have some of our best design engineers.

We want to get into end-users early and place people with domain expertise in fields such as fire and security and work with consultants to embed our systems into the design. In terms of getting products approved we do a lot of that upfront with the end-user.

We want to look at what our customers want to achieve and come back with ideas. For Muscat Airport, we did a lot of work beforehand (up to ten months before) with one of the consultants and the contractor on the design and build of the terminal.

In the old days you would have an estimating team who you would give the RFQ and a pizza under the door. A week later the proposal would be delivered.

But that is too far down the value chain, and you’ll be up against three other

COMMENT BMS

engage early Early engagement on projects is necessary for success.

Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

FEBRUARY 2013

MIDDLE EAST

bidders. We want to get up early and inspect the solution. People here are learning that you have to engage early.

I would like to believe the success we’re seeing in the UAE, and in healthcare in particular - where we’re gaining market share - suggests to me that we’ve got an innovative approach.

With so much complexity, open systems and the latest technology that’s out there, it’s becoming complicated for contractors to understand what the right solution is. A system integrator like Honeywell, can come in, do the design and be product independent.

Sometimes our own products don’t always meet the required specification or the client already has an existing installation. We use an open platform to bring in others and integrate. We often try and fill in the gaps using our global experience.

In terms of healthcare, we’ve seen the governments here want to provide world class services. Look at Sidra Hospital in Qatar, they’re calling it a 7-star facility because they want to attract the best doctors.

Old hospitals used to have a fire system and BMS that would be integrated onto a central platform. You had one operator that reacted to a fire alarm, look at a security camera then control the ventilation in an area. But things have moved on. If we can integrate into the IT side of the facility we can start integrating data from medical equipment, for example. A doctor can arrive in car park, flash his card; we can align the lifts so he can be directed to the theatre. We can have the temperature, lighting and airflow adjusted according to their preferred requirements. That’s the powerful nature of integration.

Once you get that traditional control layer meshing with the IT layer, you are into another space where you start interfacing into time and attendance systems through your access control systems which interact with your HR’s systems which relate to your payroll’s systems. It really is a powerful solution.

Another area of interest for us in energy conservation. Solutions like our ATTUNE programme, an SaaS advisory offering which includes dashboards, reporting, and support services, can reduce energy and operating costs by up to 20%. There is a perception in the Middle East that energy is cheap but governments here have a solid vision that the price of energy is going to go up.

You’re going to see more mandating with rebates and subsidised energy is going to fall away. Instead of burning off energy to provide infrastructure, governments are now asking why don’t we use it more efficiently and sell it to pay for the infrastructure? The industry must be prepared for these changes. n

45

SPECIAL FEATURE post tensioning

bigprojectME.com

Taking the

stress Big Project ME talks to some of the leading posttensioning contractors in the region and finds out about the latest developments in the industry

P

ost-tensioning as a technology has been around for more than half a century in Europe, Australia and the United States, but it was only in the mid-90’s that the technology first made its appearance in the UAE. As companies from the aforementioned countries made in-roads into the Emirates, local firms began to understand the benefits of the technology and proceeded to further popularise the technology.

Starting with bridges and buildings, post-tensioning has quickly become the accepted way forward for the industry, edging out rival pre-stressed concrete methods, such as pre-tensioning.

Furthermore, the UAE and regional

construction have moved towards adopting bonded post-tensioning, a variant of the technology that sees compression being applied after the concrete is poured.

According to the Post-tensioning Institute of Phoenix, Arizona, the technology offers many advantages, including allowing longer, clear spans, thinner slabs, fewer beams and more slender, dramatic elements. In turn, this means that less concrete is used and there is a lower overall building height for the same floor-to-floor height. “Post-tensioning can thus allow a significant reduction in building weight versus a conventional concrete building with the same number of floors. This

46

MIDDLE EAST

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FEBRUARY 2013

SPECIAL FEATURE post tensioning

environmentally friendly methods of pre-stressing concrete, and that it offers significant advantages to contractors.

“It’s environmentally friendly because you’re reducing concrete quantities and reinforcing steel quantities,” he tells Big Project ME, adding that the durability of the concrete also increases significantly.

Furthermore, Engineer Mohammed Hisham Al Toubah, managing partner of Fastech Prestressing, a Sharjah-based firm that operates throughout the UAE, Saudi Arabia, Qatar and Syria, adds that bonded post-tensioning has proved to be the safest method of pre-stressing concrete in the UAE. “The unbonded system is not commonly used here because the tendons

“Post-tensioning can allow a significant reduction in building weight versus a conventional concrete building”

in unbonded systems use only one strand, with each strand is covered by a plastic protective sheet.”

There is no bond between the concrete and the strand, there’s no grout or material to catch the strand and keep it in its place,” he explains.

Although the unbonded system is used in Europe and Australia, Al Toubah expresses reservations about them, pointing out that these systems have been developed or established without structural studies based on the conditions and environments found in the region.

“We have to do grouting as per procedures; we have to use additives and chemicals. But there is no structural research that has been done on this matter,” he says.

With an increased cycle of construction, this poses a risk when it comes to

maintaining the quality of workmanship, Al Toubah adds, stressing that local knowledge of the technology is essential for its implementation.

“For sure, the staff shall have to be trained. If there’s no know-how, how will you train people, workers or helpers to go on site and work there? There has to be quality in the materials and there has to be quality in the performance of the people.”

“This means the training we give and make them able to do the work perfectly”.

As a result of this commitment, Burke adds that the industry has been looking up recently, with projects coming back on line following the global credit crunch.

With the industry dependent on how many projects are under construction in the market, the signs are looking good for the post-tensioning sector.

“I see a lot of growth coming from infrastructure. I see in the region, a lot of growth coming from rail projects that are in the pipeline, you’ve got metro schemes, so over the next five years I see a big push on infrastructure in the region, generally,” the man from VSL explains.

“Obviously KSA is a big market, Qatar because of the World Cup, Oman is developing its infrastructure and the UAE, they’ve got a lot of their infrastructure in place, but there’s still on the road to upgrading and finishing it off.” n

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FEBRUARY 2013

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reduces the foundation load and can be a major advantage in seismic areas. A lower building height can also translate into considerable savings in mechanical systems and facade costs,” a report by the Institute says.

“Another advantage of post-tensioning is that beams and slabs can be continuous, i.e.: a single beam can run continuously from one end of the building to the other.

Structurally, this is much more efficient than having a beam that just goes from one column to the next,” the report adds.

Stephen Burke, deputy general manager of VSL, an international ‘special construction methods’ specialist, adds that post-tensioning is one of the most

47

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SPECIAL FEATURE paint

Green

is the colour

Big Project ME finds out how buildings can improve their sustainability and energy efficiency levels, simply by using the right kinds of paints what’s often not considered is how a number of smaller factors can help contribute towards an increased level of performance, that will help cut down on the amount of energy that a building uses.

One such factor is the paints and coatings that cover the inside and outsides of a structure. While it’s easy to assume that this will have negligible

impact on the overall figures, research has found that they could have a small, but vital role to play.

With this in mind, paint companies have spent several millions funding research and development into producing paints that help create the best conditions for energy usage reduction and sustainability. This has lead to a range

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FEBRUARY 2013

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W

hen it comes to discussing the efficiency and sustainability of buildings, most of the attention goes towards the amount of energy expended from the structure, either from its HVAC systems or its usage of water and electricity.

Obviously these are the main drivers in a building’s efficiency, but

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“Companies, organizations and individuals from all over the world have come together to create more awareness and effect actions that can preserve our environment and its natural resources.”

green tech Manufacturers are making paints that help cut energy use.

and the use of hazardous materials and reducing the use of solvents or volatile organic content, Megeed says.

Major agrees and points out that Akzo Nobel has been working with contractors and governments to develop projects that not only reduce the carbon footprint, but also allows for the recycling of materials so that wastage is kept to a minimum.

“What we’re trying to do now is say, not cradle to grave, but try to see how we have a longer product lifespan, less waste to landfill and see how much of that can we recycle,” he says, adding that it was important to approach manufacturing as not just as a cost related exercise, but an environment related exercise that is as important as cost effectiveness is in a company strategy. n

FEBRUARY 2013

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of ‘eco-friendly’ paints being produced that have a positive impact on the green movement, while also allowing users to meet the high standards demanded by efficiency watchdogs.

“We have the biggest research and development team in the world, because we’re the biggest paint manufacturer in the world. We spend the most on research as well,” says Major, adding that Akzo Nobel has several R&D centres operating around the world, each creating products tailored for its specific market.

“If any of our international R&D departments come up with a paint that’s right for their particular market, if that product becomes successful, it’s quite happily adopted by all other markets around the world,” he explains.

One such product incorporates what Major calls ‘Lumatech technology’, which is paint that absorbs a percentage of light energy and reflects the rest into its surroundings. This allows for lower energy lighting to be used in buildings and ultimately lower energy usage.

“If you’ve got walls painted in lumatech paint, you can have a 22% energy reduction to get the same lux level out of a light bulb. Instead of having a 100W bulb, you can use a 60W bulb,” he explains.

Sherif A Megeed, general manager of Jotun Paints Abu Dhabi, adds that paint manufacturers are now creating products that not only aim to preserve, but also help create safer and healthier living and working environments.

These include paints that offer high resistance against bacteria and fungi that can found in high humidity areas such as kitchens, bathrooms and hospitals, he says.

“Companies, organisations and individuals from all over the world have come together to create more awareness and effect actions that can preserve our environment and its natural resources.

With this in mind, we create products that not only aim to preserve but also create a safe and healthier environment,” Megeed explains.

Furthermore, companies are now adopting measures to ensure that the entire process of manufacturing confirms to green building standards. These include reducing energy consumption and carbon footprint, reducing waste

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Period 2015 Status New Tender Tender Categories Construction & Contracting, Leisure & Entertainment Tender Products Theme Parks Development

The Address: The Boulevard Tower Construction Project Downtown Dubai

Project Number MPP2695-U City Dubai Client Name Emaar Properties PJSC (Dubai) Address Emaar Business Park, Bldg. No. 3, Near Interchange No. 5, Shaikh Zayed Road Postal/Zip Code 9440 Phone (+971-4) 367 3333 Fax (+971-4) 367 3000 Email enquiry@emaar.co.ae Website www.emaar.com Description Construction of 340-metre, 63-storey The Address The Boulevard Tower comprising a 5-star hotel and serviced apartments consisting of studios, one-two-three

and four-bedroom apartments.

Status Current Project Design Consultant Atkins International (Dubai) Main Contractor Brookfield Multiplex Constructions Middle East L.L.C (Dubai) Tender Categories Hotels, Leisure & Entertainment, Prestige Buildings Tender Products High-rise Towers, Hotel Construction

BAHRAIN Bab Al-Bahrain Old Market Rehabilitation Project

Project Number BIP034-B City Manama Client Bahrain Real Estate Investment Company B.S.C (Edamah) Address Addax Tower, Bldg. No. 1006, 4th Floor, Seef Area, Road 2813, Block 428 Postal/Zip Code 1664 Phone (+973) 1756 1222 Fax (+973) 1758 2229 Email info@edamah.com Website www.edamah.com Description Carrying out rehabilitation of Bab Al-Bahrain Old Market.

Period 15/03/2014 Status New Tender Tender Categories Construction & Contracting, Leisure & Entertainment

Tender Properties Construction & Addition Works, Retail Developments

Dragon City Retail Project - Diyar Al Muharraq Development

Project Number BIP019-B Client Name China Middle East Investment & Trade Promotion Centre (Chinamex) Territory Bahrain Address F308, Ocean Plaza, No. 158, Fuxingmennei Street, Xicheng District City Beijing 100031 Country China Phone (+86-10) 6554 2775 Fax (+86-10) 6554 2771 Email mail@chinamex.com.cn Website www.chinamex.cn Description Construction of Dragon City shopping mall with initial capacity for up to a 100 Chinese companies and businesses.

Period 2014 Status New Tender Tender Categories Construction & Contracting, Leisure & Entertainment Tender Products Retail Developments

SAUDI ARABIA Al Bayt 57 Mixed-use Development Project

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UAE

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TENDERS

OMAN Jasmine Residential & Commercial Complex Project

Project Number WPR014-O Budget $39,000,000 Client Name Taameer Investment Company (Oman) Address Al Khuwair, Business Centre, 5th Floor, Office No. 508 Postal/Zip Code 1244 Country Oman Phone (+968) 2448 8871

Fax (+968) 2448 8872 Email info@taameerinvest.com Website http://www. taameerinvest.com Description Development of Jasmine Complex comprising residential and commercial facilities.

Period 15/11/2013 Status Current Project Main Consultant Arab Engineering Bureau (Qatar) Financial Consultant Ahli Bank (Oman) Financial Consultant-1Bank Muscat S.A.O.G (Oman) Main Contractor United Golden Construction Company (Oman) Tender Categories Construction & Contracting, Leisure & Entertainment Tender Products Commercial Buildings, Residential Buildings, Retail Developments

QATAR Smart Power Grid Project

Project Number BIP032-Q Client Name Qatar General Electricity & Water Corporation (Kahramaa) Address Corniche Street, Number 61, Sheraton Roundabout, Dafna Area City Doha Postal/Zip Code 41 Phone (+974) 4484 5484/ 4484 5555 Fax (+974) 4484 5496 Email contactus@km.com.qa Website www.km.com.qa Description Implementation of a pilot project to introduce a smart power grid system with capacity to produce 3-5 megawatts and about 500 cubic metres of water.

Status New Tender

Tender Categories Power & Alternative Energy Tender Products Electric Power Transmission & Distribution, Geothermal Energy, Photovoltaic Plants, Power Generation Plants, Solar Energy, Wind Energy

JORDAN Maan Wind Power Project

Project Number BIP028-J Client Name Ministry of Energy & Mineral Resources (Jordan) Address Mahmoud Al Moussa Abaidat Street, Al Swaifiah City Amman Postal/Zip Code 140027 Phone (+962-6) 580 3060 Fax (+962-6) 586 5714 Email memr@memr.gov.jo Website www.memr.gov.jo Description Engineering, Procurement and Construction (EPC) contract to build a wind farm in the area of Maan with capacity of 65-75 MW. Status New Tender Tender Categories Power & Alternative Energy Tender Products Wind Energy

Mixed-use Tower Project-6

Project Number WPR030-J Territory Jordan Client Name Abdali Investment & Development Company - ADIC (Jordan) City Amman 11190 Postal/Zip Code 925309 Country Jordan Phone (+962-6) 468 0084 Fax (+962-6) 468 0087

Email abdali@abdali.jo Website http://www.abdali.jo Description Construction of 36-storey mixed-use tower comprising a five-star hotel, an eight-level podium containing highend retail and office units.

Budget $200,000,000 Period 2015 Status Current Project Design Consultant Perkins & Will (USA) Main Contractor Dubai Contracting Company L.L.C. (Dubai) Tender Categories Hotels, Construction & Contracting Tender Products Commercial Buildings, Construction

IRAQ Al Nakheel City Project Phase 1

Project Number BIP036-IQ Budget $5,000,000 Client Name Basra Governorate (Iraq) Website www.basragov.net Description Development of Al Nakheel City featuring housing units, an airport, a seaport as well as industrial and trade facilities.

Period 2014 Status New Tender Design Consultant Dewan Architects & Engineers (Iraq) Tender Categories Airport, Construction & Contracting, Industrial & Special Projects, Marine Engineering Works & Seaports Tender Products Airports Development & Management, Industrial Zones, Residential Buildings, Seaports

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Project Number ZPR886-SA Client Name Al Bayt Development Company (Saudi Arabia) Address Khorais Road Post code 92151 City Riyadh Phone (+966-1) 212 2222 Fax (+966-1) 212 3333 Email info@al-bayt.net Website http://www.al-bayt.ne Description Development of Al Bayt 57 mixed-use scheme comprising (9 Nos.) 22-storey towers, including a branded 5-star hotel, (1,500 Nos.) two, three and four-bedroom apartments as well as penthouses, Grade A commercial office space and a Galleria retail mall covering 25,000 square metres.

Period 2015 Status New Tender Design Consultant Dewan Architects & Engineers (Saudi Arabia) Tender Categories Construction & Contracting, Hotels, Leisure & Entertainment, Prestige Buildings Tender Products Commercial Buildings, High-rise Towers, Hotel Construction, Residential Buildings, Retail Developments

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CONSTRUCTIVE CRITICISM

bigprojectME.com

One Step Forward Gavin Davids says that the Sharjah Directorate of Public Works’ endorsement and encouragement of BIM could be a significant step forwards for the technology in the GCC

GAVIN DAVIDS

Earlier this year I was invited to the annual Tekla Managers Day at the Address Marina, where I caught up with a number of passionate BIM advocates and experts. It was quite an insightful experience and it was interesting to hear people’s thoughts on the progress of BIM adoption in the region.

What heartened me the most though, was a conversation I had with Engineer Mahmoud Farag Mahmoud, the keynote speaker at the event. As part of the Directorate of Public Works for the Government of Sharjah, he has been heavily involved in a number of government projects and the development of engineering systems.

As regular readers will know, we here at Big Project ME have been longterm advocates for the adoption of BIM technology, and we’ve featured a number of experts who have expressed the same

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“We encourage our partners to use and apply (the technology) in our projects, because it gives us more accuracy and control of our projects.”

FEBRUARY 2013

views. One of the biggest stumbling blocks so far has been that there has been a lack of government support for BIM, and a reluctance to mandate the technology in the region.

However, this could be about to change, if what Engineer Mahmoud had to say was any indication. While the government of Sharjah has stopped short of mandating BIM to its project partners, he said that the Directorate of Public Work has been heavily encouraging them to adopt the technology, representing a significant step forwards for the industry.

“We encourage our partners to use and apply (the technology) in our projects, because it gives us more accuracy and control of our projects. Also, BIM has a lot of benefits, such as reduced time and accuracy of progress. You have more control over your processes and design of the construction stages,” he says.

“We don’t force anybody to use BIM, but we encourage it.”

These are hugely encouraging words to hear for anyone who has advocated BIM adoption. It’s long been felt that all the technology needed to take off was an endorsement from a government body, and it looks like Sharjah could be about to provide it. n

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