Big Project ME

JULY 2013

088

ALSO INSIDE BECHTEL ON TRACK PUMPED UP TOWERS BRAZIL UNCOVERED: WORLD CUP LESSONS GETTING IT COVERED

CONSTRUCTION in GOOD HEALTH Big Project disects the region’s healthcare industry

CONTENTS

M MIDDLE EAST

PAGE 24 How the Mané Garrincha stadium is moving towards LEED Platinum status

JULY 2013 09

The Big picture

Emirates GBC warns of retrofitting expenses

Offers recommendations for uptake of energy efficient retrofitting

16

News analysis

Moving on up

GIH report finds reasons for local contractors to cheer

18 In profile Pushing for perfection

Bechtel’s Amjad Bangash outlines his plans for the GCC

24 Site visit SPECIAL

The little bird’s home

Big Project ME flies to Brazil to see the Mané Garrincha stadium

30 Special Report What qatar can learn

The lessons Qatar can learn from Brazil as it prepares WC2022

32

Main feature

Lets make things better

Big Project ME talks to the experts about healthcare construction

40

Time & Money

Construction computer software

CCS Gulf outlines why contractors need their software

50 Special features Pump it up

Designing pumping systems for high-rise buildings

A protective coat

How coatings can help preserve the lifecycle of buildings

59 Comment Improving healthcare

Why GCC governments need to step up social infrastructure

60

Tenders

Big Budget tenders

Outlining the region’s biggest tenders

66 Constructive criticism Why Brazil matters Gavin Davids says planning for World Cups go beyond the games

JULY 2013

MIDDLE EAST

3

You’re smart

You’re in the highly competitive construction industry. You are tendering while still overseeing existing construction projects, not getting information from all your sites on time. Accounts are battling to give you up to date reports. It’s seat of the pants stuff, and all the time... you are signing cheques.

EDITOR’s COMMENT

M MIDDLE EAST

bigprojectME.com

A labour of love I HAD PROMISED myself that I would try and avoid talking about Qatar this month as I felt that the tiny state has had far too much attention considering its slothenly haze. However the protests in Brazil – timed to coincide with World Cup curtain-raiser the Confederations Cup – served as a timely reminder that hosting the event places countries under intense scrutiny.

The construction industry has benefitted greatly from investment into the country. While most of the energies of protestors and NGOs are focused on how the government has chosen to spend its money, a likely moratorium on who has benefitted most could possibly highlight the way construction contracts have been handled to ensure that building is completed on time.

Comparing Brazil with Qatar may be a little like oranges and lemons – one of the world’s largest populations versus one of the smallest, an average national wage of $698 per month versus $2,142 per month – but now is the time for Doha to take the initiative and ensure that its house is fully in order when it comes under the media spotlight.

Yes, its sustainability creditentials will be hotly contested and, yes, it will be continued to be dogged by questionmarks over its right to host the event. In my view, any valid criticism along these lines should be directed FIFA’s way as there are other goals in need of impetus.

Publisher Dominic De Sousa GROUP COO Nadeem Hood Managing Director Richard Judd EDITORIAL GROUP EDITOR stephen white stephen.white@cpimediagroup.com +971 55 795 8740 deputy EDITOR GAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 440 9118 features EDITOR JONATHON SAVILL MARKETING & ADVERTISING PUBLISHING Director RAZ ISLAM raz.islam@cpimediagroup.com +971 4 440 9129 COMMERCIAL DIRECTOR MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com +971 4 440 9128 SALES DIRECTOR CARLO MENEZES carlo.menezes@cpimediagroup.com +971 4 440 9151 SALES MANAGER CAROL D’SOUZA carol.dsouza@cpimediagroup.com +971 4 440 9163 MARKETING MANAGER CAROLE MCCARTHY carole.mccarthy@cpimediagroup.com +971 4 440 9157 DESIGN SENIOR GRAPHIC DESIGNER REBECCA TEECE rebecca.teece@cpimediagroup.com +971 4 440 9168 JUNIOR GRAPHIC DESIGNER PERCIVAL manalaysay CIRCULATION & PRODUCTION Circulation and Distribution Manager ROCHELLE Almeida rochelle.almeida@cpimediagroup.com +971 4 368 1670 Database and Circulation Manager Rajeesh M rajeesh.nair@cpimediagroup.com +971 4 440 9147 Production Manager James P Tharian james.tharian@cpimediagroup.com +971 4 440 9146 DIGITAL www.bigprojectme.com Digital Services Manager Tristan Troy Maagma Web Developers JOEL AZCUNA online@cpidubai.com +971 4 440 9100

I think now is the time to make good on promises to overhaul the existing employment rules. The Migrant Workers Welfare Charter introduced last year is a worthy programme for reform; the Qatar Foundation has said it is prepared to enforce its standards. If it sees it through, Qatar will quickly win friends and the support it so desires at international level.

Stephen White

Group Editor

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 © Copyright 2013 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.

6

MIDDLE EAST

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

JULY 2013

xyleminc.com | Bell & Gossett | Lowara | Goulds Water Technology Š 2013 Xylem Inc. Lowara and Bell & Gossett are trademarks of Xylem Inc. or one of its subsidiaries.

Goulds is a registered trademark of Goulds Pumps, Inc. and is used under license.

You know what we’re doing this summer.

We are getting ready for you.

Our website is currently on holiday, getting a makeover. We will be back soon, looking fresh and fantastic.

THE BIGGEST PICTURE

Emirates GBC: building owners can’t

afford green retrofitting

Council recommends financing scheme to strengthen the uptake of viable, energy efficient retrofitting projects in the UAE big project, big numbers 80% Percentage of total power usage that buildings account for

40% Percentage by which power demand will increase by 2020 8,271 Kilogrammes of oil equivalent energy per annum consumed by a UAE resident on average 170% Percentage increase in regional energy use from 1990 to 2008

The Emirates Green Building Council has proposed the creation of a financing scheme to promote the green retrofitting of existing buildings, to make them more energy efficient.

According to the proposal, Emirates GBC will serve as the facilitator of the project, which aims to strengthen the uptake of financially viable, energy efficient projects in the country. It will meet with financing institutions, insurance agencies, suppliers and regulators to lend momentum to the project, the Council said.

A dedicated taskforce has been set up to support the creation of the green financing scheme. It has worked with various stakeholders to address the current challenge of funding green retrofit projects, and has been in discussions with banks and financial institutions to obtain their inputs.

“One of the key issues identified in our extensive studies to promote sustainable built environments is the lack of adequate financial support for retrofitting existing buildings to new green building standards. We observed a lack of awareness in the market about opportunities for energy retrofitting, and a scarcity of funds among landlords to make the necessary changes. Building owners also do not have any incentive to implement the energy savings because electricity bills are largely paid by the tenants,” Adnan Sharafi, Emirates Green Building Council chairman, explained.

“This encouraged us to focus on promoting the creation of a green financing scheme for existing buildings, as making them ‘greener’ will be a strategic step to address the energy sector challenges we face today. A

concerted industry approach, where stakeholders come together to create a financing scheme will significantly boost the green building sector of the UAE, and in turn contribute to the nation’s sustainable development.”

Research conducted by the Intergovernmental Panel for Climate Change (IPCC) has highlighted that improving the efficiency of existing buildings – estimated to contribute 80% of total power usage – has the highest potential for cost-effective reductions in carbon emissions.

“With the nation now focusing more on a strong energy management strategy led by renewables and boosting efficient use of existing resources, green buildings can complement the approach effectively by reducing power consumption,” added Adnan Sharafi.

JULY 2013

MIDDLE EAST

Big Project ME talks to Amjad bangash, mD of rail at bechtel civil, about his plans for 2013 – on page 16

9

THE BIG PICTURE

bigprojectME.com

Emirates to open indoor aviation attraction in London First of its kind attraction opens this month

RONALdO not coming to RAK REsort RAK investment authority confirms that plans to build Real Madrid-themed resort are indefinitely on hold Plans for Real Madrid’s $1 billion fantasy island in Ras Al Khaimah have been abandoned due to lack of investment.

According to the RAK Investment Authority, one of the co-signatories behind the deal, the ambitious resort, on Marjan Island, which was set to include a 10,000-seater stadium and a Galacticos museum, was entirely dependent on funding from France and Luxembourg, which has since fallen through.

“Building won’t start any time soon,” a spokesman told Big Project ME’s sister magazine, Sports Talk. “Plans are indefinitely on hold. The resort stands no chance of opening in January 2015, if at all,” he said.

“We have been searching for funding over the past two months, but due to harsh economic times none has

materialised. We haven’t totally abandoned the project, but it will need fresh backers, since we were banking on promised funds from France and Luxembourg. Even if we got some today nothing would be open until the end of 2016, at the earliest.”

Real Madrid are highly unlikely to wait, given they now have firm links in the region courtesy of their new $39 million shirt sponsor, Emirates Airline.

“We only lent our brand to the Real Madrid Resort Island,” revealed club president Florentino Perez. “Real Madrid did not contribute financially. We hope the resort is completed in a timely and cost-effective manner, but right now that looks unlikely.

We wanted a base in the UAE to bring us closer to our MENA and Asian fan base, but that may not be possible now.”

Emirates has announced plans to open an indoor aviationthemed attraction in London this July, which will be the first of its kind in the world.

The ‘Emirates Aviation Experience’ will be located at the South side of the Emirates Air Line cable car system in London. It will cover an area of 300sqm and aims to provide ‘an insight into the operations and modern achievements of commercial air travel’.

“This high-tech facility will bring to London a one of a kind insight into the dynamic world of aviation,” said Tim Clark, president of Emirates Airline.

“The purpose of this centre is to provide a fun, yet educational, overview of just

what it takes to successfully get a 560 tonne aircraft off the ground and 40,000 feet into the sky. Our aim is to explain the intricate science of modern aviation, in a hands-on, entertaining and instructive environment,” he added.

Utilising state-of-the-art technology, interactive displays and life-size aircraft models this immersive experience will incorporate several zones that will take visitors on an interactive aviation journey. The Emirates Aviation Experience will also feature the world’s first public commercial flight simulators including two Airbus 380s and two Boeing 777s, fully equipped with landscape visuals, allowing participants to practice their take-off and landing skills.

The centre will cater to all ages and will open to the public in time for the city’s peak tourism period this July.

DSI wins $460mn Saudi tower project Contractor will oversee and undertake construction work on restarted Lamar Tower project in Jeddah

million contract value for DSi in dollars in KSA

Drake and Scull International, the Dubai based construction firm, has announced that its general contracting unit has won a $460 million contract in the Kingdom of Saudi Arabia. The contract win from Lamar Investment and Real Estate Development Company will see DSI Saudi Arabia oversee and undertake construction on the Lamar Tower project in Jeddah. Having originally been halted in 2009, the Lamar Tower project has since been restructured and refinanced in 2013 and is now expected to be completed by the end of 2015.

10

MIDDLE EAST

Big project me visits The mane garrincha stadium in Brasilia ahead of the 2014 world cup – on page 22

JULY 2013

THE BIG PICTURE

Carillion Alawai wins $202mn Oman Convention Centre contract

$11bn in contracts awarded for Doha Metro projects

Developer Omran awards Package 2 contract to Omani contractor

Qatar Railways Company hands out construction contracts to consortiums for metro line

The tender for the construction of Package 2 at the Oman Convention & Exhibition Centre Precinct, which is being developed by Omran, has been awarded to Carillion Alawi LLC, as approved by the Government Tender Board.

Worth a total of $202.6 million, the package will include the construction of exhibition halls, car park facilities and the district cooling plant.

The scope of Package 2, for the construction of a project considered one of Oman’s most highly anticipated, includes a structured car parking facility that will hold 4,200 vehicles on three parking levels over an area of 143,000sqm.

Exhibition halls of approximately 45,000sqm gross area are also part of the package. These will also provide five divisible, state of the art walls, with service trenches, plant rooms and

acoustically treated, vertically movable partitions to enable separation and sound isolation in each hall.

Additionally, the scope will also cover the ancillary buildings, namely the Energy Center which serves as the District Cooling Plant for the entire precinct, security screening facility, taxi amenity building, waste management building, a landscape maintenance building and electrical substation facility.

The project also features a number of sustainable initiatives in conservation of energy, potable water and use of treated sewage effluent for cooling and irrigation and thus targeting Leadership in Energy and Environmental Design (LEED) certification from the United States Green Building Council.

Eng Wael Al Lawati, CEO of Omran said that the award would make the first part of the project materialise within 20 months.

$5.9 billion Amount awarded in contracts by Qatar Railways Company

$2.19 billion Value of contracts awarded to QDVC to build underground sections

$2.19 billion Length of the Doha Metro line

Value of contract to be awarded to consortium led

by Saudi Binladin Group

Length of the Red Line section of the Metro

Length of underground stretch of Green Line to be built by consortium

KSA’s Al Jouf Cement to stop production line for unscheduled maintenance

202 Million dollars Value of Package 2 OCEC contract

Cement maker insists that halt in operations will not impact on its customer obligations Saudi Arabia’s Al Jouf Cement Company announced that it had to stop its production line for unscheduled maintenance work for two weeks last month.

In a statement posted on the Saudi bourse website, the cement maker said that the halt in operations would not impact on its ability to fulfil its obligations towards its customers.

Maintenance work on the plant is expected to cost $1.6 million, the cement maker said, which would be reflected in its second quarter results.

Al Jouf Cement has an annual production capacity of 1.23 million tonnes of clinker and 1.47 million tonnes of cement, according to Zawya.

JULY 2013

MIDDLE EAST

big project me asks the industry experts about healthcare construction – on page 30

11

THE BIG PICTURE

bigprojectME.com

Ashghal to award $329.5 million contracts for healthcare projects Seven projects part of Ashghal’s $3.9 billion plans to develop 124 buildings in Qatar over the year

Value oF contracts to be Awarded by Ashghal

Number of projects being awarded by Ashghal

Dubai’s TCI rated as world’s most sustainable commercial building

MIDDLE EAST

12

JULY 2013

Number of planned projects in Qatar for 2013/2014

Size of Al Muntazah health centre

17,165 sqm Size of the planned Al Nuaim health centre in Laebib

TAV wins $400mn terminal contract in Saudi Arabia

Building secures 107 points out of a possible 110 from US GBC Dubai is now home to the ‘most sustainable commercial building in the world’ – The Change Initiative – on Sheikh Zayed Road, it was announced after it secured the highest LEED Platinum rating from the US Green Building Council.

The Change Initiative is a 4,000sqm shop that provides sustainable solutions in Dubai. It secured 107 points out of a possible 110, making it the most sustainable commercial building in the world. The record was previously held by the Pixel four-level building in Australia, with 105 points.

“Congratulations on setting a new record with your LEED for Commercial Interiors Platinum project. The store is a great prototype for sustainable real estate applicable worldwide,” said Richard Fedrizzi, president, CEO and founding chairman of the US GBC and chairman of the World GBC, in his letter to Gundeep Singh, TCI founder and CEO. TCI incorporates all aspects of green building design on its structure, from its roofing to energy efficient lighting to its water system.

TCI has 26 technologies, including solar panels and heat reflective paint, on its roof that provides 40% of the building’s energy requirements. Its outer structure has insulation three times more than that of a normal building.

Value of projects being built in Qatar in 2013/2014

22,148 sqm

Turkish construction firm to build Terminal 5 at King Khaled International Airport in Riyadh

billion dollars Total value of TAV contracts

TAV Construction, the Turkish construction firm, has announced that it has won a tender worth $400 million from the Saudi Arabian government to build a new terminal at the King Khaled International Airport in Riyadh.

Terminal 5 is scheduled to be built within 18 months, TAV said in a press statement, adding that the tender was for the design and construction of the building. With the project win, the total contract value of projects TAV Construction has undertaken so far has exceeded $16 billion.

The King Khaled Airport Terminal 5 project is the third tender TAV Construction has won in Saudi Arabia after the Jeddah Airport Aircraft Maintenance Hangars and Medinah Airport projects.

It will involve a 100,000sqm passenger terminal and various auxiliary facilities. The project also includes a 90,000sqm, 3,000-vehicle capacity multi-

storey car park, a fire brigade building, an operations centre, power station, and an apron and other air-side infrastructure.

Furthermore, elevated roads and infrastructure work will be done to connect Terminal 5 to already existing terminals.

“As our construction company progresses to expand in the Middle East it also continues creating opportunities for our airport operations company. We won the construction project of the new terminal building in Riyadh, Saudi Arabia for a contract value of $400 million. This is a very important project,” said Sani Sener, TAV Group CEO. The design of King Khaled Airport Terminal 5 stands out as a project that will be completed at international standards, satisfy user requirements and display suitability to the local culture, as in all TAV Construction projects, Sener said.

16-20 February 2014 Dhahran International Exhibition Center Dammam, Kingdom of Saudi Arabia

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THE BIG PICTURE

bigprojectME.com

214 hotels to be built in Saudi Arabia SCTA drafts plans to boost investment in hospitality and tourism sector

being built in Saudi Arabia over the next two years

to be pumped into the hotel sector by 2020

the project is expected to provide

SCC signs fundraising package for $19.3bn KSA petrochemical complex expected to be built in Makkah

into Al Aqeer beach to turn it into a tourist destination

the project will provide to the hospitality sector

Facility will be world’s largest chemical complex ever built in a single phase

RTA will fast track $1.3bn expansion of Red Line if Dubai hosts World Expo 2020 Dubai Metro expansion project will run to Dubai World Central, chairman of authority says

14

MIDDLE EAST

Dubai’s Road and Transport Authority will fast track the $1.36 billion expansion of the Dubai Metro Red Line to connect to Dubai World Central, if the Emirate wins the bid to host the World Expo 2020, a top official has said.

Dubai has already earmarked a large venue for the Expo at Dubai World Central, a 140sqkm airport city that will host the 160 million passenger capacity Al Maktoum International Airport, which is set to be the world’s biggest greenfield airport project.

“As soon as the bid results are out and if we win — which we will Inshallah (God willing), we start the planning and development of the project,” Mattar Mohammad Al Tayer, chairman of the Board and executive director of Roards and Transport Authority (RTA), told media personnel.

Al Tayer added that the plan to extend the Red Line to DWC had been in place for quite a while.

Originally, the plan was for the project to be linked with the growth in passenger traffic at the airport, which is scheduled to launch commercial flights in October, through a temporary five million passenger terminal.

However, should Dubai win the right to host the World Expo in 2020, he said that work would begin in November of this year.

JULY 2013

billion dollars loan from the US export-Import bank for sadara

Sadara Chemical Company, a joint venture between Saudi Aramco and Dow Chemical, has signed a fundraising package for a $19.3 billion petrochemical complex being built in the east of Saudi Arabia.

Three banking sources told Reuters that the financing package totals around $12.5 billion and consists of loans from banks, export credit agencies and the stateowned Public Investment Fund. Proceeds from an Islamic bond issue will also be used. The remaining costs will be met by the two partners.

Located in Jubail City, the facility will be the world’s largest chemical complex ever built in a single phase. It will produce more than three million tonnes of petrochemicals each year when completed in 2016. The sources spoke on condition of anonymity as the matter has not been made public.

The split between the different portions of the facility were changed from an original outline released in May 2012 after the success of the sukuk, which was completed at the start of April, two of the bankers said. Sadara raised $2 billion from an Islamic bond as well as a $4.975 billion direct loan from the US Export-Import Bank – its largest ever loan.

THE BIG PICTURE

Contractors on the Up in Q1 2013

besides the existing tough competitive environment, the biggest concern for the UAE contractor is the steep fall in project awards in Q1 2013. DSI’s project awards fell 61.3% QoQ, while that of Arabtec declined 77% QoQ during the quarter. Nevertheless, the companies’ margins improved significantly in Q1 2013.

A Global Investment House report has found that construction contractors have had an upturn in fortunes in the first quarter of 2013. The report breaks down the sector and examines the major talking points.

Arabtec’s gross margin surged to 12.3% in Q1 2013 from 5.0% in Q4 2012, while net profit margin rose to 4% in Q1 2013 from 1.9% in Q4 2012. DSI’s gross margin also improved to 10.6% in Q1 2013 from 8.6% in Q4 2012, while operating margin rose to 4.6% in Q1 2013 from 2.2% in Q4 2012.

Run up in stock price of contractors In the past three months there have been significant run up in the stock price of contractors. Drake and Scull stock rose by 31% in the past three months amid speculation builder Arabtec may buy a stake in the company, a prospect denied this month by management of both Arabtec and DSI. Alkhodari stock price on the other hand witnessed a run up after it received significant number of new awards during Q113.

On a quarter on quarter (QoQ) basis the new awards almost quadrupled to SAR1.1bn while backlog rose by 31%. Arabtec stock price which witnessed significant run down after announcement of the right issue also witnessed a good ride in the last month after the terms of its right issue clarified. The stock price also rose because of rumors regarding stake purchase of DSI

The rise in margins was primarily due to a fall in construction costs. Reduced financial charges also boosted the margins.

Overall, GCC companies put up a weak performance during Q1 2013, after recovering strongly throughout 2012. A steep decline in project awards and slower execution remain major concerns for the immediate future, while rising construction costs and competition are expected to keep margins under pressure in the medium term.

GCC PROJECTS MARKEt SIZE 2,500.0

which later became untrue.

Al Khodari, KSA Arabtec, UAE

PRICE IN (LC)

702.2 31.6 1818.0 2.1

STOCK PERFORMANCE 1M

3M

12M

p/e 2013e

p/bv 2013e

5.7%

29.0%

5.4%

11.80

1.90

19.3%

5.4%

-9.9%

21.00

1.10

782.2

1.0

8.2%

31.3%

37.7%

20.80

0.80

88.1

0.2

4.0%

3.4%

22.6%

n/a

n/a

DEPA, UAE

247.5

0.4

2.6%

2.6%

-11.1%

13.60

0.53

CGC, Kuwait

537.2

1.3

0.6%

-2.3%

8.4%

n/a

n/a

Galfar, Oman

736.2

0.5

0.0%

0.0%

0.0%

12.77

1.37

DSI UAE Nass Corp, Bahrain

(USD bn)

MKT CAP (USDMN)

2,000.0 1,500.0 1,000.0 500.0 -

2004

2005

2006

2007

2008

2009

2010

2011

2012

MENA CONTRACT AWARDS 80 70 60

SOURCE: BLOOMBERG & GLOBAL RESEARCH

50

* MARKET PRICE FOR AL KHODARI AS OF 29 MAY 2013 AND FOR OTHER STOCKS AS OF 30 MAY 2013

40 30 20

4Q-13

4Q-12

3Q-12

2Q-12

1Q-12

4Q-11

3Q-11

2Q-11

1Q-11

4Q-10

3Q-10

2Q-10

1Q-10

4Q-09

3Q-09

2Q-09

1Q-09

4Q-08

3Q-08

2Q-08

The GCC construction sector’s top line was $1.4 billion in Q1 2013, down 12.1% QoQ but up 21.1% YoY. The sector’s top line was dragged down by industry heavyweights Arabtec and AKS, whose top lines declined 6.5% QoQ and 7.9% QoQ, respectively, which more than offset the 1.8% QoQ rise in DSI’s top line in Q1 2013.

10 1Q-08

Contractors Financial Performance

projects country by country 1,800.0 1,440.0 1,080.0 720.0 360.0 -

SAUDI ARABIA

UAE

OMAN

KUWAIT

QATAR

JULY 2013

GCC

MIDDLE EAST

The sector’s decline is mainly ascribed to slower execution of projects during the quarter. This could hurt revenue growth in the upcoming quarters. At the same time, a large decline in project awards during Q1 2013 could also translate into muted revenue growth. Among UAE firms, DSI remained the better performer, with revenues rising 1.8% QoQ to $334 million in Q1 2013.

In contrast, Arabtec’s revenues declined 6.5% QoQ to $420.64 million;

15

NEWS ANALYSIS

bigprojectME.com

MOVING on UP A report by Kuwait’s Global Investment House finds reasons for construction contractors to be cheerful

F

16

MIDDLE EAST

ollowing a positive first quarter, the GCC’s construction industry looks set to continue its upbeat trend in 2013, with government spending and strong economic performance fuelling growth in the sector, a new report released

by Global Investment House has claimed.

After a drop off in 2011, the construction industry rebounded in 2012 and is expected to maintain its upward trajectory going forward in 2013.

“The total value of ongoing projects in the GCC region stands at $2,620 billion, with the UAE leading the pack with $894 billion, followed by Saudi Arabia ($875 billion) and Qatar ($364 billion). We remain positive on the sector, considering the expansionary budgets of governments and focus on infrastructure development

JULY 2013

in the region. Furthermore, a favourable level of oil prices is expected to augur well for the sector,” the report by GIH said.

It pointed out that the UAE’s construction market remained attractive due to its focus on infrastructure projects and investor friendly policies. The report expects the sector to be driven by the UAE’s rapidly growing population, which is expected to reach 6 million by 2014,

from 5.4 million in 2010. Consequently, the UAE’s construction sector is expected to account for around 11.1% of the UAE’s GDP by 2013, a sizeable jump from 10.3% in 2011. Meanwhile, in Saudi Arabia, the Kingdom’s strong construction market is being driven by government spending and high oil prices, the GIH report said. For 2013, the Kingdom budgeted $219 billion for spending, up by 18.8%, year-on-year,

“I see Dubai as having huge potential and economically, things are settling down and confidence is returning. So we view it in a very positive light”

NEWS ANALYSIS

Construction surge The UAE construction sector is expected to account for 11.3% of GDP in 2013.

from 2012. Out of this, almost $76 billion has been set aside for capital expenditure on investment projects, the report added.

“The Kingdom remains focused on investing in road, railway, power and housing projects. Moreover, the introduction of a new mortgage law is expected to contribute to the growth of the residential sector in the coming quarters,” said Faisal Hasan, CFA and researcher for the report.

“High oil prices remain an important driver for KSA’s economy, which will further drive the construction sector.

Despite a projected fall in oil prices in 2013, the forecasted prices are substantially higher than the estimates for KSA’s 2013 budget. However, slow project awards continue to be a concern for KSA’s market. Despite the large pipeline of projects, the authorities have struggled to plan and approve projects,” he added.

Qatar’s construction market continues to be fuelled by its ‘Vision 2030’ and ongoing preparations for the 2022 FIFA World Cup. The Qatari government intends to spend around $200 billion in the next ten years, out of which, $140 billion has been allocated for the next five years, the report said, adding that the construction market remained focused on infrastructure projects related to transportation and commercial facilities.

Kez Taylor, CEO of ALEC, added that as a contractor, he sees Qatar and the UAE as the two major growth areas in the region, with airports and other transportation infrastructure construction the biggest drivers of business for him.

“We’re working on the Doha Airport and we’re doing the fit out of all the Duty-Free Areas there,” he tells Big Project ME. “We’ve got to look at where the market trends are.”

“If you look at Dubai, I see Dubai as having huge potential and economically, things are settling down and confidence is returning. So we view it in a very positive light,” he said.

It is increasingly clear then that there’s significant positivity in the regional GCC market, but there are area of concern that need to be addressed as a matter of priority, Hasan says in the report.

“Despite the momentum gained over the previous quarters, higher costs, intense competition, and slow project execution remain the key obstacles for the MENA construction sector,” explained Faisal Hassan.

He added: “Construction costs rose significantly in the construction markets of Saudi Arabia and Qatar, while the UAE market has been struggling due to increasing competition.”

The UAE construction market has been suffering from severe competition due to the entry of new players over the past few years coupled with the ongoing consolidation in the industry.

Availability of fewer projects combined with higher number of contractors has considerably reduced margins of firms in recent times.

Meanwhile, the Saudi Arabian construction market continues to be adversely impacted by rising construction costs driven by employee costs.

Ongoing implementation of Saudisation across the Kingdom, coupled with visa issuance hurdles, continue to affect industry players negatively, Hasan explained further.

The rapidly growing construction market in Qatar remains burdened with high input costs that are driven by rising cement prices.

Current estimates show that the country’s cement production would be inadequate to meet the market demand and lead to a major supply shortage in the next three to four years.

Thus, the government has been working on signing new supply contracts with firms in the UAE and Oman to prevent a sudden increase in prices.

Moreover, the country continues to face shortage of skilled labour due to the existing salary levels being lower than those of other markets. n

GCC projects (2013) n $2,620 billion Total value of ongoing projects in GCC

n $894 billion Value of UAE projects

n $875 billion Value of KSA projects

n $364 billion Value of Qatar projects

JULY 2013

MIDDLE EAST

“The Kingdom remains focused on investing in road, railway, power and housing projects. However, slow contract awards continue to be a concern”

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IN PROFILE Amjad Bangash

JULY 2013

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IN PROFILE Amjad Bangash

Pushing for

Perfection

Big Project ME meets with Amjad Bangash, managing director of Rail and senior vice president at Bechtel Civil, to find out what his plans are for one of the fastest growing markets in Bechtel’s portfolio

“Riyadh is probably as far ahead as anybody right now in terms of advancing the development of a metro system and that’s driven just by mass transportation needs in an urban environment”

As managing director of Rail at Bechtel Civil and a senior vice president, he is responsible for overseeing a vast array of rail projects, ranging from the ambitious and complex Crossrail project in the UK to tendering for the Riyadh Metro project in Saudi Arabia.

Having worked for the company for more than 20 years, Bangash has been involved in a number of major projects in the region, most notably as project director for Bechtel at both Khalifa Port and Khalifa Industrial Zone Abu Dhabi in the UAE. Bangash originally joined the company as a senior engineer at the San Francisco head office and undertook project assignments in construction and engineering in the US, Nigeria, Thailand and Guyana. From there, he moved into engineering management and has helped lead projects such as the Kowloon-Canton RC West Rail Project in Hong Kong and the Airport MAX Light-Rail Project in Portland, Oregon.

Moving into senior management, Bangash has since been in charge of an ambitious renewal and upgrade of the London underground, specifically the Jubilee, Northern and Piccadilly lines.

Following immense success in this role, in August 2012, he was appointed as managing director for Rail at Bechtel, where he has been tasked with expanding its global rail and transit business.

With this in mind, he sat down with Big Project ME to discuss his plans for the

Bechtel by Numbers n $37.9 billion Bechtel annual revenues

n 50,000 Global number of employees

n 40 Number of

countries Bechtel is present in

Amjad Bangash Bangash aims to focus on infrastructure in the Middle East.

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E

ver since it was founded more than a century ago, Bechtel’s history has always been closely linked with the railways. In fact, according to company history, its founder, Warren A Bechtel, began his career as an employee of the US railroad industry before starting up a contracting business that specialised in railroad and highway building.

Over time, the company grew to become the largest construction and engineering company in the USA, with revenues of more than $37.9 billion annually and more than 50,000 employees working across some 40 countries.

At present, Bechtel’s portfolio extends across all sectors of the construction industry, encompassing energy, transportation, communications, mining, oil and gas and government services.

However, despite this diversification, the company has never forgotten its roots in the railway industry. This is where Amjad Bangash comes into the picture.

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IN PROFILE Amjad Bangash

bigprojectME.com

“The purpose of the office in Dubai is more about tomorrow than today. The idea is to start small and then continue to develop this”

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Khalifa Port The Khalifa Port in Abu Dhabi was a major project for Bechtel.

JULY 2013

Middle East and outline the potential he sees in what he calls ‘one of the largest global rail markets.’

“We think that this region is projected to grow at about 16% in the rail business, compared to, globally, about 9%. I’d say it’s the only region, other than let’s say China, where numbers vary, that there are lots of pockets (of growth).”

“This is one, Brazil another one. Brazil has a very aggressive rail investment plan.

Of course, in expanding the region here, Africa is right behind, but the drivers in Africa are more bulk movement, mining-related and energy-related rail development. But coming back to this region, the drivers are obvious. In KSA, you see a fairly big concentration of cities that are growing and have growing needs,” he explains.

“Riyadh being a very good example of a city that is at the front end. They’re probably as far ahead as anybody right now in terms of advancing the development of a metro system and that’s driven just by mass transportation needs in an urban environment. The other piece of course, is the huge amount of recent development in industrial zones across the Middle East,” Bangash adds.

It’s clear then that the Middle East is going to play a huge part in any future plans Bechtel has. Therefore, it comes as no surprise that the construction giant plans to set up what Bangash says is a ‘Centre of Excellence’ in Dubai.

Aiming to be a global resource of engineering talent, the centre will initially focus on rail and marine engineering projects, but will eventually branch out to all areas of Bechtel’s portfolio.

“The purpose of the office here is more about tomorrow than today,” Bangash says. “The idea is to start small and then continue to develop this. I would say that we’d probably start with about 100 people and then continue to develop that.”

Given the amount of work available in the Middle East region and its neighbouring regions, he adds that it made sense to set up in Dubai, for a variety of reasons.

“It’s not just the fact that we’re within an eight-hour flight of many of the regional centres, but it’s also because Dubai and Abu Dhabi have a lot of talent in the industry – just about every major engineering company is based here.”

“Of course, it’s a place where we can bring people from just about any country, without barriers to bringing them in,” he points out.

“Not many countries offer that sort of transparency to concentrate on the talent, rather than the passport they hold. For a business like this, we need to bring talent in globally, rather than be

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IN PROFILE Amjad Bangash

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Rail focus Bechtel believes the upcoming rail projects will be a major opportunity for business.

“Not many countries offer that sort of transparency to concentrate on the talent, rather than the passport they hold.

For a business like this, we need to bring talent in globally, rather than be limited to where we come from”

n 15% Revenue growth in 2012

n $24 billion New work booked in 2012

n $32.9 billion Total revenue in 2011

n $53 billion New

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work booked in 2011

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limited to where we come from and then get mired in immigration issues. So it’s an attractive spot.”

Situated in Dubai Marina, the Centre will initially start off small, with just one floor in an office tower near Marina Mall.

About 100 individuals will be trained at first, with the numbers continuing to grow, dependent on future success.

Bangash says that operations will start in the summer of 2013, with final preparations close to being completed.

In time, he hopes that this ‘Centre of Excellence’ will grow to be an institution that will serve a huge section of the world, taking advantage of Dubai’s central location and connectivity to South East Asia, Africa and the wider Middle East.

“Iraq is definitely on the map. We are looking (into it) and we do have a team that goes there. We’re doing some work there and as the security situation improves, you’ll see a lot more work going on there. Today, there’s still a lot caution about Iraq,” he tells Big Project ME. “In South East Asia, let’s talk about India. We have a fairly big office in India – about 600 to 700 people in New Delhi – but I think you’ll see better synergy between this office (in Dubai) and India.

The idea is to maintain the workload so that we’re not creating a bust and boom in one office versus the other. The office in India has a lot of expertise and if they have a lot of expertise in certain areas, then we may use those rather than duplicating them here,” Bangash explains.

“In Africa, we’re currently supporting Mozambique and we have a fairly large presence in Gabon. A lot of these projects (in Africa) are mining and portrelated developments. Therefore, the infrastructure, we could support from here (Dubai). Those are some of the projects that we’re currently supporting from London, which we would eventually support from here in Dubai.”

IN PROFILE Amjad Bangash

For the mean time though, the focus is firmly on the Middle East, and on the GCC in particular. Therefore, Bangash has his eye on the number of huge rail projects that are coming up in the region. The Riyadh Metro is one in particular that he’s determined to get.

“With the Metro, we’re part of a consortium with Siemens, CCC and Almabani. We were part of the original design-build qualification process, and at that stage, we did not have a global rolling stock partner with us, and we didn’t make the original cut,” he relates.

“But later on we were able to come back in and took part in it. You’re probably aware that most of the consortia changed, so that was part of the process and we were part of that development.”

“The client wants to award the contract before Ramadan, which with a job that

size, anything can happen if all parties put their heads together, but it’s a tall order.

But that still is the plan, to award that, and we’re still in the running,” he says.

“In the current bid cycle, we’ve been in the Mecca Metro, also with the SAR (Saudi Railways Company) with the JubailDammam project. There’s nothing in Doha (at the moment), but we are looking at the railway in Oman, I think that will be good.”

“And of course, we’re part of the industry consultation for the Abu Dhabi metro and we definitely have an interest in that. Right now, the interest is EPC,” he adds, making it clear that there are major plans afoot for the contractor from California as it looks to move away from its traditional Oil and Gas operations.

“The area we’d like to see a growth in is in the infrastructure business in the Middle East,” he says. n

Centre of excellence Bechtel’s global centre of engineering excellence in the UAE will initially focused on rail and marine engineering projects.

The centre uniquely positions Bechtel to provide customers with high-quality, innovative engineering solutions more efficiently and cost effectively.

“Rail and port infrastructure go hand-inhand and are the lifeline for transporting goods around the world from major petrochemical, power, and mining facilities,” said Amjad Bangash, managing director of Bechtel’s global rail business.

“The global demand for rail and port infrastructure will increase substantially during the course of the next 10-15 years.

This centre provides customers around the world with a comprehensive solution for a successful project right from the start.”

“Much of the growth for new railways and ports is in the Gulf region. We have worked in this region for more than 70 years, and our decision to base the centre in the UAE represents part of our ongoing commitment to the region,” added David Welch, Bechtel’s regional president for Europe, Africa, and the Middle East.

The centre will draw upon Bechtel’s global experience and expertise in the design and construction of railways and ports, and will offer services from master planning studies through to engineering execution.

The new centre will open in the third quarter of 2013.

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“We think that this region is projected to grow at about 16% in the rail business, compared to, globally, about 9%.”

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ON SITE Estádio Nacional Mané Garrincha

The Little

bigprojectME.com

Bird’s Home The Estádio Nacional Mané Garrincha is the first stadium in the world that is applying for LEED Platinum status. Big Project ME’s Gavin Davids flies out to the capital of Brazil to investigate.

Estádio Nacional Mané Garrincha

Location

Brasilia, Brazil

Site Area

218,800m 2

Project type

Multi-use Stadium

Construction cost

$445 million

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Project Name

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ON SITE Estádio Nacional Mané Garrincha

B

rasilia, the capital of Brazil, is a city that is known for its vibrant architecture and design, having being designed, almost completely, by the world-renowned Brazilian architect, Oscar Neimeyer.

While most planned cities can come across as fairly cold and functional, Neimeyer used his considerable talents to help imbue Brasilia with a sense of his style, turning the city into a living, breathing tribute to the art of architecture.

It was no surprise then, that when plans for the construction of a new football stadium in the city were announced, the remit from its owner, Novacap (Urbanisation Company of New Capital of Brazil) was to create a structure that would pay tribute to the ideals espoused by the creator of the city.

As such, the Mané Garrincha Stadium, which is the second largest football stadium in the country, was built as an eight storey structure that is divided into four sections. It stands at 46m tall and has a built up area of 218,800m2.

The stadium is named after the Brazilian football legend, Mané Garrincha, who starred in Brazil’s World Cup wins in 1958 and 1962. Garrincha, who’s name translates as ‘Little Bird’, was beloved by the Brazilian people, and this

Mane Garrincha in numbers n Stadium Capacity: 72,788

n Cost of Stadium: $445 million

n Height: 46m n Façade: 288 pillars surrounding the stadium

n Number of workers on project: 15,000

n Promenade area: 618 thousand sqm

n Concrete: 117

thousand cubic metres

n Pre Moulded Parts:1064

n Steel: 22.2 thousand tonnes

n Sand: 170 thousand tonnes

n Timber: 15 thousand cubic metres

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“The Estádio Nacional Mané Garrincha is one of the most modern stadiums in the world”

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ON SITE Estádio Nacional Mané Garrincha

bigprojectME.com

“(This stadium) is to be an example and a reference for using energy, recycling water and residues”

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devotion is borne out by the battle the Brazilians waged with football’s governing body FIFA to ensure that this stadium was named in his honour.

Officials at the stadium told Big Project ME that given Mané Garrincha’s chequered personal history, FIFA was reluctant to allow them to give the stadium his name.

However, they refused to be swayed and eventually the weight of public opinion won out.

Designed in a circular shape, the stadium has been built with 228 1.2m diameter pillars creating a façade that surrounds the stadium. The pillars also sustain a concrete compression ring which supports the roof of the stadium.

The roof itself is designed as a doubleshell structure with an outer compression ring. It also has metal cables and trusses that are covered by a fibreglass membrane that is coated with Teflon, the builders say. The membrane is 40,000m2 in size.

Furthermore, there is a 618,000m2 promenade surrounding the stadium, with crowd flow facilitated by 50 ramps, four escalators, 60 stairways and 20 lifts.

Named after the iconic football player, the construction of the Mané Garrincha Stadium began by the end of 2010, following the demolition of the old ground, which was deemed unsuitable for the demands posed by the 2014 FIFA World Cup. As such, the Federal District Development Agency (Terracap), who provided the resources for construction, and Novacap decided to build a completely new stadium that would measure up to the highest levels of sustainability and design.

To that end, they first awarded the construction contract a consortium of Andrade Gutierrez and Via Engenharia to build the $445 million stadium. German, Marg und Partner (GMP) and Castro Mello provided the design of the stadium.

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n Sectors: 4 n Storeys: 8 n Gates: 19 n Turnstiles: 158 n Ramps: 50 n Escalators: 4 n Stairways: 60 n Elevators: 20 n Boxes: 74 n Toilets: 276 n Bars: 40 n Restaurants: 2 n Snack Bars: 14

Sustainable Icon The stadium is set to be a landmark for sustainable construction.

Schlaich Bergermann und Partner (SBP), along with Engserj and Belo Horizonte were appointed to provide the structural engineering services.

Not content with building the stadium to the highest levels of quality, the Brazilian government was determined to ensure the stadium embraced sustainability across the board. To that end, they decided to ensure that the Mané Garrincha Stadium would become the first LEED Platinum certified stadium in the world, and one of the few buildings awarded that recognition. “(This stadium) is to be an example and a reference for using energy, recycling water and residues,” says Aldo Rebelo, Sports Minister for Brazil, and the man tasked with ensuring that all the preparations to host the globe’s biggest sporting event are up to scratch.

“All the stadiums are up to date, in terms of the timeline and their schedule. We’ve been monitoring their schedule ever since the beginning of the programmes, the evolution of the construction work, month by month, and we conclude that they’ll all be ready for delivery by the end of the year,” he says ahead of a tour of the Mané Garrincha Stadium in Brasilia.

He adds that it was vital for the government to meet the LEED specifications, despite the costs it would

ON SITE Estádio Nacional Mané Garrincha

incur, starting with the Estadio Nacional Mané Garrincha.

“It was very important, though it’s extremely expensive to meet these specifications, but everyone values it immensely that they will receive this certificate of sustainability. Because, not only are we having a model of energy saving solutions, but we also have a management system to make the most of these projects,” he explains.

To this end, German energy and infrastructure giant Siemens were brought in to work on the project, which was no surprise given its vast expertise and experience of similar projects in Europe.

“Siemens is supplying the intelligence systems for the stadium,” says Stefano Fay, Siemens operations manager. “It is one of the most modern stadiums in the world.”

“We have a lot of experience in stadiums, many of the technologies in German stadiums have Siemens equipment, and European ones also have them. So we took this experience and brought it to Brazil and we built up a team here for this project.”

“It was done according to the requirements of FIFA first of all, and then the owners. It was a design and construction project. Several of the solutions were discussed with the customer and adapted to their needs and according to the green building council requirements,” he adds.

The first task was the development of a comprehensive Building Management System, which would help tie in all the stadium’s various systems to one central operating hub.

“The system is conceived is to gather the data and give it to operations so that they can analyse and take decisions on how to optimise the system. It’s not a fully automatic, closed loop yet, this is

something that we’re looking at in the future,” he adds.

“Our BMS monitors and controls power, fresh water and air conditioning. It is fully ready for any automation required in the future.”

Furthermore, one of the other main scopes that Siemens have been tasked with are the security and surveillance tasks for the stadium. With more than 400 cameras and 150 turnstiles, the German firm will have quite a job on its hands.

“In coordination with partners, we have a complete IT network for all the systems that are in the stadium. We also have, with partners, a complete sound system. The sound system is also digital and running on the same IT network,” says Fay. So what are the differentiators when it comes to this project?

“First off is to have all of them on IT, the videos all run on the same high speed backbone that we supplied. We have access control using our hardware and software, and this particular software has been also developed and integrated with FIFA,” he explains.

“So the ticketing system is integrated with the automated systems. So you can buy a ticket off the internet, and automatically our system will have your barcode when you enter the stadium. The system is already working, it worked in a match between Brazil and England, and

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“Our BMS monitors and controls power, fresh water and air conditioning. It is fully ready for any automation required in the future”

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ON SITE Estádio Nacional Mané Garrincha

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Security systems All security systems are integrated with the BMS.

JULY 2013

it is ready for the Confederations Cup and the World Cup,” he says during the tour of the stadium.

Pablo Bartolomeu, project manager for Siemens on the Mané Garrincha project, adds that with the security systems, access controls and turnstiles all installed, the BMS that Siemens has developed specifically for this project means that the fire detection systems, CCTV and BMS are all integrated with the software designed for the project.

“We have all the management of the electrical power, all the danger management systems, everything will be integrated in one software,” he says.

According to Bartolomeu the biggest challenge was time.

“Because it was a very tight schedule – the opening was supposed to be in March – then we postponed it a month. Time was always the big challenge.”

bigprojectME.com

“Also because it is a big building, it’s not something you build every day, so it (the BMS) is a bespoke solution for this stadium, and therefore I would say the biggest challenge was time and then the dimensions of the buildings,” Pablo tells Big Project ME. He adds that security is something that the client takes very seriously, and as a result, Siemens had to ensure that their security systems were up to the demands placed on them.

“We have around 400 cameras, in high traffic areas and in the dome. We have HD cameras in the dome for identifying people, as well as cameras to monitor and control people,” he explains.

“Furthermore, we have the TV screening systems, the access control systems, composing of the turnstiles, they’re connected with the CCTV systems, which allow people to be identified through the ticketing system.”

Given that the stadium holds more than 72,000 people when at full capacity, crowd safety was another major concern, and as such, the Siemens team had to install thousands of fire detection in the building, says Bartolomeu.

“There are 6000 fire detectors all over the building,” he says. “There’s construction under the stadium as well and it needed to be have an accurate fire detection system.”

“We have more than 6000 points on the building management system, the control rooms and the IT backbone and data centre, and we have distribution all over the stadium, so that you have IT available whenever it is necessary.”

“What’s important to say is that we have all the systems IT based and talking to one another. We have building automation talking to access control, and sending out alarms (if necessary) there. So we have a fully integrated system with the same IT network,” he adds. n

Stadium IT numbers n 6000 Points on the BMS system

n 6000 Fire detectors n 400 Cameras n 32 HD Cameras

“We have more than 6000 points on the bMS, the control rooms and the IT backbone and data centre, all over the stadium”

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Special Report Brazil 2014

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What Qatar Can Learn Following a visit to Brazil ahead of the 2014 FIFA World Cup, Big Project ME ponders on what lessons Qatar can learn as it gears up for its own challenges in the build up to 2022

W

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ith less than a year remaining for the 2014 FIFA World Cup, there is a definite sense of anxiety over whether Brazil is truly ready to host the event.

While organisers and the Brazilian government remain confident that all the issues will be ironed out ahead of the World Cup, there are valuable lessons that can be learnt from their struggles, which can be applied to Qatar as it gears up for its own considerable challenge in 2022.

Keeping that in mind, Big Project ME spoke to the one man who is best placed to judge both countries’ preparations in a fair and balanced manner.

Jan Schoenig is the Siemens program manager for the 2022 Football World Cup in Qatar. Prior to his current role, he was

JULY 2013

heavily involved in the preparations for the Brazilian World Cup. Furthermore, he has extensive experience in developing stadium technology, having been involved in global sporting events over the last eight years.

“It’s a bit early to say, there’s still nine years to go,” he says. “But all what I see (in Qatar) is perfect. They have already established a programme office, they already have the stadiums partially

assigned to architects and they even have a vision for transportation, which is going to be tendered soon.”

“I’m very optimistic that it’ll be totally different to the way things were done in both South Africa and Brazil, where things were done at the very last minute,” Schoenig says.

The advantage that Qatar has, compared to Brazil and South Africa, is that the people in charge of the World Cup have

“It’s a bit early to say, there’s still nine years to go, but all what I see (in Qatar) is perfect”

Special Report Brazil 2014

“Qatar needs to choose partners who have done it before. FIFA requirements are specific and the reliability has to be there”

“We had a conference recently, where a contractor expressed surprise at all the FIFA requirements, and I thought ‘It is publicly available!’ You can download it, so there shouldn’t be any kinds of surprise!” Schoenig asserts.

“He was complaining about the number of parking spaces FIFA requires, that is well stated in the booklet! This is what happens when companies that haven’t done it before (get involved), they think ‘oh it’s just another building and we’ll apply it just like we do in the shopping malls’ and go for it, and then they’re struggling with all these ‘surprises’,” he points out.

And this is where he says Qatar can learn its most important lessons for its World Cup. “These two countries are very different, but from the stadium perspective, there is definitely something (they can share).

Qatar needs to choose partners who have done it before. FIFA requirements are specific, the requirements for the World Cup are high in quality, and the reliability has to be there,” he warns.

“If you go for first time movers or companies who are not established in the country, you undertake a high risk of failing,” he warns grimly.

Another issue that will be taken seriously is ensuring that construction projects coordinate so as to ensure that there is no blockages in the pipeline.

“This is what programme management has to do, so that you can really access the construction sites and they are not locked due to road-works and major project work and so on,” he says. “My only concern is that the coordination of ongoing construction should be done in such a way that they don’t block each other, but apart from timing itself, there shouldn’t be any problems.” n

Qatar world cup spend n $115 billion Qatar’s

project spend on the 2022 World Cup

n $8.2 billion Doha

metro contract awarded for WC

n $10 billion New

airport being built ahead of WC

n $20 billion On

roadworks and infrastructure

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MIDDLE EAST

Bad attitude Brazil’s lax attitude has cost it, Schoenig says.

taken a long, hard look at what went wrong during the preparation process in those two countries, and have resolved not to allow the same mistakes to happen again.

The government will play a massive role in developing the stadium and assorted infrastructure, but in an effort to mitigate any confusion and hold ups, the Supreme Committee for Qatar 2022 has appointed Clifford Chance, the international law firm to be an advisor for its technical programme.

Amongst its duties, the law firm will advise on the development of the main ‘iconic stadium’ for the FIFA event, which will seat more than 85,000 fans.

It is this attitude that gives Schoenig hope that the Qatar World Cup will be a completely different experience for him, compared to the one in Brazil.

“In Brazil, they’re struggling in a lot of areas because they believe that it could have been done differently,” he explains.

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HEALTHCARE IN FOCUS

JULY 2013

bigprojectME.com

HEALTHCARE IN FOCUS

Let’s Make Things

Better

With healthcare construction set to be one of the biggest boom sectors for the region, Big Project ME talks to the experts to find out what needs to be done to ensure that our hospitals rank amongst the best

“The government’s move towards ppp is driven by a need to elevate healthcare quality”

billion on healthcare expenditure in 2011, while its analysts predict that spending will hit $133.19 billion by the year 2018.

This is backed up by AECOM’s Construction Handbook for 2013.

“Regulatory and funding reforms, together with increasing demand for healthcare services due to population and income growth, as well as an increase in lifestyle diseases, means that the Middle East healthcare market is undergoing significant changes and major development,” says Anthony McCarter, regional business line leader, Buildings + Places, AECOM. “With many governments planning further expansion of the sector, they are seeking increased private sector participation to fill gaps in services provision and infrastructure.”

Supported by large budget surpluses, GCC governments are making investments to support healthcare provision. This will bring the industry up to international standards in terms of bed capacity and the quality of healthcare services, he notes.

“Promoting the industry to private players is a priority for all GCC governments, as it is clearly stated in their strategic and development plans.”

Given the PPP healthcare projects springing up across the region it should come as no surprise that the actual construction of these healthcare project is a major concern for developers and clients. These projects no longer serve as mere places of treatment or healing.

They are meant to be landmarks, icons

Bill Jolly

GCC healthcare spend n $46.2 billion Healthcare expenditure in 2011

n $133.19 billion Expected expenditure in 2018

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MIDDLE EAST

I

n 2011, Deloitte released a report that surveyed the state of the UAE’s healthcare sector. It found that rapid growth was underway in the country, fuelled by a long-term strategy to become a preferred destination for domestic patients and a hub for global medical tourists’.

Furthermore, it predicted that there would be a considerable change in the way the UAE approached the healthcare sector, with more Private Public Partnerships (PPPs) being encouraged as it strove to improve both ‘hard and soft infrastructure’.

“In Abu Dhabi, the government’s move towards PPPs, driven by a need to elevate the quality of healthcare delivery, started in 2006, and is based on management partnerships with international hospitals such as Vamed, Cleveland Clinic, John Hopkins and Bumrungrad. A number of MoUs related to healthcare partnerships have been signed.”

So this process towards developing healthcare infrastructure and construction has been in motion for quite some time.

In the two years since the release of the report, healthcare spending has reached astronomical levels.

A report released by Frost + Sullivan, shows that the GCC had spent $46.12

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HEALTHCARE IN FOCUS

bigprojectME.com

“Construction costs for an iconic hospital are generally higher than for a typical district general hospital”

AL MAKTOUM ACCIDENT AND EMERGENCY HOSPITAL This 300 bed, 95,000sqm facility includes a four-storey inpatient unit, a large clinical space, an emergency department and a dedicated support area.

khalifa medical city SKMC is a tertiary care medical centre in Abu Dhabi.

Al Maktoum a&e hospital 95,000sqm project will house four storey inpatient facility

of the UAE’s burgeoning reputation as healthcare destination.

“Construction costs for iconic/ landmark hospitals are generally higher than for typical district general hospitals.

Unlike teaching hospitals, where capital cost increases are driven by medical equipment, higher costs for iconic hospitals are due to detailed architectural design, landscaping or furnishings,” McCarter explains.

Construction costs increase with the size of a hospital but there are two key elements to note, says McCarter “First, operational efficiency of equipment and technology does not depend on hospital size as much as other requirements (ie. bigger receptions and waiting areas to accommodate larger number of patients.)”

“Secondly, capacity utilisation typically increases as hospital size increases. Up to a certain size, commonly 500 beds, the construction cost per bed decreases as the hospital size increases, due to economies of scale and optimising the use of support equipment and facilities,” he remarks.

“Construction costs for larger hospitals

Ramboll says this highly integrated design provides significant flexibility and focus on patient care and family needs, utilising the most advanced medical technology, international design and healthcare planning solutions available.

The building is planned around a significant flexibility and focus on central atrium, which creates a striking patient care and family needs, utilising visual element whilst allowing natural the most advanced medical technology, light to penetrate the interior.

The space also provides a central gathering point for patients and visitors.

Due to the high volume of occupants and significant numbers of patients who may be immobile, hospitals pose a high fire and safety threat. These risks increase in units with high-tech infrastructures and potentially volatile medical stores.

To minimise and mitigate these risks, the experienced team in the Ramboll Fire Engineering department were commissioned to produce a peer review of the fire and safety designs for the building, identifying and assessing non-compliant and high risk aspects of the design.

The team provided advice and practical solutions on how to meet international safety standards and obtain fire authority approval, while maintaining the integrity of the architectural design.

Location: Dubai, UAE Client: Dubai Health Authority Architect: Canadian brand of Perkins Eastman International

Engineering Services: Fire & life

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safety

JULY 2013

HEALTHCARE IN FOCUS

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with more beds tend to increase again as support facilities need to be larger and construction premiums associated with specialist consultants and contractor fees are added.”

Therefore, Big Project ME decided to speak to one of the foremost experts in healthcare construction in the region, to find out just what it takes to build a landmark hospital project in the GCC. Bill Jolly has worked on Central Sterilisation Services Departments and supersize decontamination facilities for the UK’s National Health Services. He has also worked on and helped design Psychiatric Intensive Care Units and numerous theatres and hospital wards.

Furthermore, he was, until recently, an international member of the ASHRAE healthcare technical committee. He currently works as director of MEP and Sustainability for Ramboll Middle East. “(When working on a project) I think the first thing to consider is the stability of its infrastructure. That’s obviously very important for a hospital, to ensure that it’s got its securities in place,” he says. “It depends on what the hospital is doing.

If the hospital is doing theatres and operations, then you need to ensure that the incoming services supplies are stable.”

“We (Ramboll) recently looked at a project in Pakistan and it was quite interesting. While we were there, there

JULY 2013

bigprojectME.com

“Hospitals are very energy intensive, so we look at how we can control the internal environment to satisfy regulations”

were maybe 15 power cuts, and we were doing the overall master-plan for that project, which included a hospital.”

“As part of the master-plan, we looked at the incoming supplies and strategies. We considered the installation of Combined Heat and Power (CHP) because we believe that Pakistan is close to signing an agreement for gas supplies.”

“So with a secure gas supply coming into the master plan, it would make more sense to generate our own electricity on site,” Jolly explains. “We look at the security of the supply, that’s a critical factor from a utility perspective.”

“We identify what it is that’s critical for the hospital, such that the MEP service engineers can provide the solutions that they’re looking for,” he adds.

“So the first thing is the security of supplies, the second thing is energy efficiency. Hospitals are very energy intensive, so we look at how we can control the internal environment so that we’re satisfying the regulations to ensure that the standards are being best achieved from a

CLEVELAND CLINiC The 7-star, state-of-the-art, 22-storey Cleveland Clinic was designed to symbolise the future of healthcare in the Middle East region.

Ramboll was commissioned to check all engineering of the facade systems, including complex double skin arrangements, glass fin walls, skylights etc.

As is often the case in a project of this scale, with a rapid building schedule, the design remit evolved.

“This raised design and technical questions that required immediate consideration and implementation,” says Ramboll.

Location: Abu Dhabi, UAE Client: Aldar/Mubadala Healthcare Architect: Aedas and HDR Engineering Services: Façade engineering

HEALTHCARE IN FOCUS

clean perspective.”

“The third thing is the critical places, how we control the internal environment, such as the clean room spaces, or the theatres, or whatever classification you’re trying to design to,” he says. “What we do identify, within the hospital, what elements of the building are energy intensive. Once we’ve identified those areas, we look at strategies about how we can reduce the energy consumption, yet satisfy the rules and regulations, the codes and standards (that need to be met).”

One of the most energy intensive areas of any hospital is its CSSD or Central Sterilisation Services Department. These are areas where the instruments used in operating theatres are cleaned, sterilised and packaged for reuse. Tremendous amounts of water, both heated and normal, are used to wash the instruments out thoroughly, and then superheated steam is used to sterilise them.

Jolly advocates a more sustainable European model that is currently in use, where the CSSD is taken out of the

hospital and a centralised ‘Supersized Decontamination Unit’ is set up to serve a number of hospitals in close proximity to it.

“What you’re actually doing is taking the energy consuming components out of the hospital and putting it in one location.

You can start to reduce the capital costs because you can have the facility working 24 hours a day, and so you start to reduce the quantity of equipment that’s required, you’re placing all the energy in one location, where you can deal with it in an energy efficient manner,” he explains.

Hospitals are notorious consumers of huge amounts of water. Not just in specialised units such as the CSSD, but during normal day to day operations as well. Therefore, sensible consultants are keen to involve suppliers and contractors as early as possible when it comes to designing the water delivery systems.

Rada-Kohler is one such supplier that deals with healthcare facilities. Russell Maycock, commercial international sales and market development manager, tells Big Project ME that his firm has been making

King Faisal Hospital Jeddah project is aiming for LEED accreditation.

KING FAISAL SPECIALIST HOSPITAL AND RESEARCH CENTRE, KSA “Our client desired to introduce sustainable design into the King Faisal Specialist Hospital & Research Centre, Jeddah, Kingdom of Saudi Arabia,” says Ramboll.

The total built up area is approximately 100,000sqm for the hospital and research centre.

“We provided a sustainability review during the master planning stage of this project to help our client achieve LEED Accreditation. Our holistic approach to design and operation was valued during the early stage of the project,” says Ramboll.

“We focused on improving the energy and environmental performance of the design, which was viewed as the most effective way of achieving LEED accreditation.

We also undertook high level energy modelling as part of the exercise. This helped with the design, and also ensured that the architect understood the impact of his design decisions during further design stages.”

Following the master planning process, the project is pursuing LEED rating based on the recommendations made by Ramboll.

Location: Jeddah, Kingdom of Saudi Arabia

Client: King Faisal Specialist Hospital and Research Centre

Engineering Services: Sustainability services

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“We identify, within the hospital, what elements of the building are energy intensitive”

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HEALTHCARE IN FOCUS

bigprojectME.com

“A key thing with hospitals is the prevention of cross infection by healthcare acquired infections”

KING SAUD UNIVERSITY, MEDICAL CITY EXTENSION PROJECT A multi-disciplinary, international team is working together on this important healthcare project, says Ramboll.

Infection focus Hospitals have stringent demands to prevent the spread of infections.

inroads into the Middle Eastern market on the back of the practical savings they’ve been able to offer in Europe.

“The two key issues in a healthcare project are thermostatic performance: that’s what we call ‘safe to use hot water’, so hospitals will have specific requirements in terms of accurate thermostatic performance of the faucets. So they’ll have particular maximum temperatures that they’ll want to achieve, depending on whether it’s for a shower, a bath or hand washing, or something like that.”

“But it’s also a product which will be able to cope with, if for example, there’s a failure in the cold water supply, a thermostatic product which will close down to prevent hot water scalding accidents within a hospital,” he says.

“The other key thing with hospitals is the prevention of cross infections by HCAIs, which stand for HealthCare Acquired Infections, an example of those would be MRSA. A lot of these infections are associated with the water supply, and so hospitals will be looking for water delivery systems which will help contain how possible sources of cross infection within a healthcare facility.”

The extension of the King Saud University Medical City comprises several new buildings for the university covering an approximate area of 350,000sqm.

The first stage includes a new National Diabetic Center, a new dental college and an expansion of the medical college.

The medical college extension project includes teaching facilities, lecture halls, public spaces, a full scale skills lab, mosques and a spectacular main auditorium with audience capacity of 1,400. The National Diabetes Centre will be a national institution for diabetes, containing research and central functions, as well as treatment for complicated cases.

The administration of KSU has been constantly committed to equipping the school with the state-of-the-art facilities beneficial to advance dental education.

The extension to the existing Dental College will provide these facilities, including the very latest technologies.

Ramboll has been entrusted with the building design for this project.

“In order to ensure high class delivery we have created project teams bringing together our experts from Ramboll Sweden, Denmark, Norway, United Kingdom and the Middle East.All together we have around 80 dedicated competencies involved. Ramboll Group is the lead consultant bringing together all of the resources to ensure a smooth design and construction process.”

Location: Riyadh, Kingdom of Saudi Arabia

Client: King Saud University Architect: Samkark Architects Engineering Services: Building

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services, fire & life safety

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HEALTHCARE IN FOCUS

Early entry Suppliers need to get involved with hospital projects as early as possible.

“One obvious area is a system that can be operated with a minimum amount of hand contact. A lot of our digital systems are completely non hand contact in terms of you being able to operate them and be able to turn them on and off without having to touch it. That’s going to be a key way for hospital management to control infections,” Maycock explains further.

Thus, collaboration between contractor, consultant and supplier is key for a hospital project to work smoothly. Jolly says that the process towards that collaboration is fairly lengthy, with consultants taking care to ensure that the design first meets the client’s specifications, and then that the contractor chosen is able to cope with the demands set before them.

“When we do designs of hospitals at the very initial stage, the contractors aren’t involved. We deal with the main consultant and the client. We understand the client’s needs, then we start to work on the design and work in conjunction with architects, because we’re just an engineering consultancy. We’ll develop the design to a certain level and then we’ll approach the client about engaging a contractor,” he says, outlining the process.

“We then go into early engagement with various contractors whilst the design work is continuing, or we’ll seek tender clarifications with the contractors and then

during the interview stages, we’ll start to engage them from a technical perspective.”

“We look at what are their capabilities for maintaining the good parts of the design.

What are their capabilities? What’s their experience? What’s their site set up? How do they propose putting people on site?

What’s the level of staff you’d put on site?

What’s the qualifications?”

We gauge an overall assessment of the contractor, both from a technical perspective and from a financial perspective. We would then make recommendations to the client of the contractor, to move forwards,” Jolly says.

However, Maycock says that as far as suppliers are concerned, they’d like to get involved in the specification process as early as possible. This helps design a system better and prevent problems.

“Our approach to healthcare, is to get onto the specification process as early as possible. That’s really at design stage. Once the facility is going up, then you’re in a situation where you’re trying to get people to change specifications, which is always a challenge. Once we know a consultant has been awarded a healthcare facility, we look to get in at a very early stage and help them design the specifications for the showering areas, for the ward basins, for the clinical basins and the scrub up areas and so on,” he explains. n

NEW MAFRAQ HOSPITAL High-rise hospital with 749 number of beds.

Ramboll Middle East was awarded the life safety and fire protection peer review subconsultancy, by Canadian Architectural Firm, Burthill.

The task is to provide the life safety and fire protection strategy guidance for the construction of their new Al Mafraq Hospital project, a new modern hospital located in the New Abu Dhabi Central Business District.

The project is intended to provide health care and the necessary medical needs of the people at this community. The hospital will contain 499 beds, and is considered for an internal expansion of up to 749 beds depending on the operational demand and growth of the population at this community. The new hospital will be distinguished by its four patient towers built in a style that resembles to the state-of-theart in medical care facilities.

Location: New Abu Dhabi Central Business District

Client: Habtoor Leighton Group, in joint venture with Murray & Roberts Contractors Middle East (HLMR)

Architect: Burthhill - Stantec Completion: 2011 - 2014 Project Value: $626.2 million Engineering Services: Fire & life safety

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“Get into the specification process as early as possible, that’s at the design stage”

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TIME & MONEY CCS

bigprojectME.com

Helping you make the smartest decisions

Construction IT Solutions Provider Big Project ME sat down with Ian Hauptfleisch, General Manager, and Pat Cooper, Senior Consultant, to discuss what the CCS solution can offer contractors Unparalleled Service CCS has been in the Middle East since 1994.

C

CS (Construction Computer Software) has been in operation for over 30 years in the construction IT sector and in the Middle East since 1994. Its success is built on dedicated development, training and support infrastructure and providing an unparalleled service to the challenging construction industry.

What is CCS and its Candy and BuildSmart products all about?

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IAN Hauptfleisch Candy is our leading project estimating and control software package that uniquely combines its powerful features of analytical Estimating, critical path Planning, dynamic Forecasting, Cash Flow

JULY 2013

modelling, monthly Valuations and Earned Value Management conveniently into a single user interface.

We have a saying that ‘estimating only ends at final account’ - whether pricing variations or pricing the job to complete, things change and your estimate or budget has to be adaptable considering all the variables and unknowns we deal with on a daily basis.

PAT Cooper BuildSmart fits in on a company and project level and is the foremost construction enterprise solution for Procurement, Payroll, Plant and Accounting. BuildSmart is a webbased, Integrated Cost Management System (ICMS) that dynamically and

TIME & MONEY CCS

“Software doesn’t make people work people make software work”

to a formidable cost control challenge but this is exactly what our products were designed for.

Candy and BuildSmart’s pedigree stems from an extremely challenging construction environment in South Africa in the late 1970s and 1980s, which meant as accurate a measurement and estimate of the work to be done as possible and pedantic control of costs and budgets on site in terms of quantity, wastage, production and value.

A common misconception is that the software will do the job for you. CCS, like any software application, is merely another tool that has to be used properly and effectively to give you the best results. Software doesn’t make people work – people make software work.

• Candy produces a powerful financial and engineering model for the project – What we budget to spend and utilise.

• BuildSmart, with its web based and SQL database architecture, provide a real time analysis of what we actually are spending and utilising.

Both systems use basic resource and activity costing which then allows realtime comparison by project Activity and Cost Code – all in real time.

How does CCS and its products help contractors?

IH CCS was developed, from day one, from the ground up for contractors by contractors.

The biggest challenge most contractors face, besides securing work, is proper, effective and reliable cost control. In construction you’re dealing with productive resources like labour and plant making up a large component of the project cost as well as numerous variables and unknowns, that contribute

What’s the biggest challenge involved with convincing clients of the systems’ viability?

Real Time comparision Both systems allow contractors to track their costs in real time.

CCS Clients INCLUDE: n ALEC UAE n El Seif KSA n Petroserv Qatar n Kharafi National Kuwait

n Carillion Alawi Oman

n NASS Contracting Bahrain

n STFA Turkey n The Arab Contractors Egypt

n MID Contracting Jordan

n MAN Enterprises Lebanon

IH People don’t like change. That’s fact and also just human. However, in most cases companies are approaching us, which means they or someone in the organisation has realised the need for change and improvement, whether it be for something they don’t have or aren’t getting and/or deficiencies in their existing systems.

Secondly, software, being somewhat intangible, is often considered a grudge purchase and price plays a big role.

The real cost of any system is not in the purchase of the software, but in the immeasurable losses accumulated due to the lack of timeous, reliable and presentable information.

PC It’s an education process, getting prospective clients to understand that in order to get complete cost control, you have to start from a resourced based analytical estimate, dynamically linked to procurement, for the whole procurement to pay process, including costing and financials, which will provide information to all levels of the business. n

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seamlessly integrates with Candy estimating and project control Candy & BuildSmart together provide the most powerful tool in the construction industry today to provide critical real-time management information to you to take timely management actions to control your project cost and to increase your margins.

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CPD modules

bigprojectME.com

Effective Procurement of Construction Projects Prof Mohammed Dulaimi, of the British University of Dubai, writes this CPD module about how effective procurement can satisfy a client’s needs and objectives

P

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ractitioners and academics have progressively updated our understanding of what “procurement” is over the last 30 years to reflect not only the increased complexity of the construction products, process, and technology but more importantly the increased sophistication of the markets and their customers. This has created an immense pressure from the clients and the supply chain to develop and embrace new approaches to the way construction projects are procured The CIB, the International Council for Research and Innovation in Building and Construction (www.cibworld.nl)

JULY 2013

has defined procurement as the strategy through which clients achieve and satisfy their objectives. Procurement can also be viewed as the framework that defines the organisational structure and the roles of the different individuals, groups, and organisations that would enable the realisation of the stakeholders’ project objectives.

It is not surprising that over the last three decades we saw the increased popularity of “non-traditional” procurement methods which reflects the changes the sector and its economic environment have experienced. Increased interest in procurement methods such

as Design and Build, Management Contracting, and Partnering, Public Private Partnerships (PPP) have presented clients and their advisors with opportunities to improve the value they realise from their projects. The increased knowledge of clients gave them the courage to take advantage of the “flexibility” of such frameworks and introduce changes to whatever is the published standard framework. This has challenged project managers, consultants, and lawyers to ensure that such changes do not create legal problems or complications to the way projects are organised and managed.

The main question facing clients and

CPD modules

n Strong foundation Establish a consensus among the stakeholders as to the tradeoff between any conflicting priorities and objectives

n Formulate Select an appropriate strategy

n The right one Select the right contractor

BReaking ground Changing client attitudes have altererd the approach of PMs, lawyers and consultants.

“there needs to be enough time allowed for the advisors and consultants to establish a consensus among the stakeholders.”

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Making a successful procurement strategy

their consults/advisors when it comes to deciding on the procurement strategy to adopt is to what extent the adopted procurement strategy would give the confidence that it would enable the project stakeholders realise the desired outcomes.

Let us examine one of recent incidents that have attracted worldwide attention.

A number of reputable suppliers and retailers/supermarkets in the UK and Europe discovered that their products

do not meet their requirements on very key and critical standards. Their ‘100% beef burgers’ were tested to have horse meat. A senior manager in one of the most reputable supermarkets in the UK stated then that they could not guarantee, then, that any of such products, meet that basic requirement. In effect the client is declaring no confidence in the adopted procurement strategy and the supply chain it has created. In other words the different activities of the supply chain are no longer focused on satisfying the needs and priorities of the client. Either by design or incompetence when clients’ priorities are no longer driving the supply chain then the commercial interests of the different organisations in the supply chain takes control of the project.

The building of a potentially complex network of consultants, contractors, specialist contractors, suppliers, and subcontractors needs to be orchestrated in order to create cooperative interorganisational relationships aimed at delivering what would satisfy and even delight the different stakeholders.

Therefore, profiling of the stakeholders’ objectives and priorities and understanding their business strategies should form the foundation of effective project procurement.

The client should ensure the involvement of all key stakeholders in setting the objectives that need to be satisfied by the completed project. In order to achieve that there needs to be enough time allowed for the advisors and consultants to establish a consensus among the stakeholders as to the tradeoff between any conflicting priorities and objectives.

If this important issue is not resolved and the project is allowed to proceed then all other decisions regarding the project, including on the appropriate procurement strategy to adopt, will be flawed and form the basis for future conflicts.

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CPD modules

“in order to have an effective procurement strategy for any project there should be a strong and unbreakable thread of defined needs and priorities.�

is very little effort to explain the same for the department(s) responsible for the contractor selection. The process of selection in many cases is rigid and uses fixed criteria that would not give the same priorities that were defined earlier. It is critical that for in order to have an effective procurement strategy for any project there should be a strong and unbreakable thread of clearly defined needs and priorities that runs from the point when the client committed to the project through the different stages of the project until completion and commissioning.

Any proposed variation to the project should only be sanctioned after careful consideration of its impact on what has already been committed to. In particular, projects that require innovation in the design, process, or technology will be

MOving sites Changes to the plan should come only after proper consideration.

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The advice that the client needs to decide on the appropriate procurement strategy to adopt on any particular project should be based on firm understanding of the objectives, priorities and sensitivities of the key stakeholders. In many cases the advice clients receive tends to be focused on their cost, time and quality priorities but missing on a host of other issues that relate to not only the client but also the nature of the project, the market, and economic environment. For example the client may want to be closely involved in the development of the design and construction phases to ensure that the project would address their most detailed needs. In this case the consultant may feel fit to advise the use of the traditional procurement strategy, Design-Bid-Build (DBB).

However, this client may lack the knowledge, skills, or the capacity to embrace DBB procurement. This client may be sophisticated enough to adopt DBB procurement but lacks the resources that would enable the effective management of the interfaces that that procurement would create. This would create huge problems with serious delays due to the time the client would take to make a decision or provide and input.

The next important stage in the procurement strategy is to decide on the most suitable contractor. If clients and their advisors failed to address the issues in the previous section effectively then they will have very little chance in satisfying the requirements of this stage. Many would argue that choosing the contractor that is more suitable to delivering a particular project is so obvious. However, experience in projects here in the United Arab Emirates, and probably beyond, that this is not the case in many projects.

Anecdotal evidence shows that the main reasons for failure in identifying and engaging the appropriate contractor are the organisational structure and the set process in many client organisations.

The organisational structure in many clients’ organisations would split the responsibility for defining the objectives and priorities of the project from that of setting the criteria for contractor selection.

On the assumption that the client was successful in setting the objectives there

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CPD modules

vulnerable to pressures to conform to “this is not how we do things here” mind sets and long established processes that would gradually water down the client set objectives and priorities. For example, views from the construction industry suggest that many clients who set bold environmental sustainability targets as a key objective only to see this priority compromised through the long process of design, tendering, and construction.

It would be expected that having stated clearly the objectives and priorities during tendering that should enough to bring positive results during construction. The critical role of the client in monitoring, evaluation, and feedback to the consultant and contractor can either reinforce the stated objectives and priorities or distract and confuse the whole supply chain.

Clients and their advisors need to effectively communicate their perception of the contractor’s performance and capability to reinforce positive behaviours and give an opportunity to address gaps in the contractor performance.

The contractor and the set supply chain will be put under extreme pressure if their evaluation is based on priorities and criteria that were overlooked or not emphasised during selection process. In contrast, an evaluation and feedback that is consistent with the selection criteria

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would contribute to enhancing the contractor’s commitment that is critical to his performance.

All the above demonstrates the importance of establishing cooperative relationships across the network of organisations that have been formed from the start of the development process to the completion and commissioning of the facility to the satisfaction of the stakeholders. There may be an expectation that to orchestrate this whole network to ensure the creation of value and extracting value from this network is the responsibility of clients and their advisors. However, in certain procurement strategies that role should be that of the main contractor. In this case the client should ensure that the contractor is capable of delivering on this role and has the incentives that would ensure that it delivers on the clients’ objectives.

The orchestrator here will engage the project network, armed with full knowledge of the client’s priorities and objectives, and identify the needed`knowledge and resources that would be needed to enhance project performance.

Recent research conducted by Shaikha Al Shamsi from the British University in Dubai (MSc in Project Management) examined the concept of orchestration in

innovation project networks argued the need for the orchestrating firm to be able to articulate the vision of the project, ability to influence if not shape the network, and effective management of the process.

In conclusion clarity of what the stakeholders want to achieve should enable the client and advisors to identify the procurement strategy and the processes that would give the confidence that there outcome would be beneficial to all parties involved. n

Questions for Module 3: Procurement Provide answers below:

NAME (capitals)

n “This module will contribute 30

JOB TITLE

minutes(general) towards your CPD

Q1 There is one best procurement method

COMPANY NAME

obligations. If successfully completed,

for any one client that needs to be identified

ADDRESS

certificates will be distributed two weeks after

and deployed on every project that client

P.O.Box:

the module closes.

would commission. What is it?

MOBILE:

Ans:

FACSIMILE:

n Email carlo@cpidubai.com if you have

EMAIL:

any questions about our CPD programme.

Ans:

Privacy policy

Corporate Publishing International

n Information you supply to CPI may be used

P.O. Box 13700, Dubai, UAE

Q3. The role of the client is very important.

for publication and also to provide you with

Tel: +971 4 440 9100

Why?

information about our products or services

Fax: +971 4 447 2409

Ans:

in the form of direct marketing by email,

Web: cpidubai.com

Q2 The contractor’s selection criteria should be based on:

telephone, fax or post. Information may also

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be made available to third parties.

JULY 2013

n You can also contact us on:

Big Project ME will be hosting a Buyer & Sponsor only Golf Day in October. The aim is for you to meet the consultants and architects on a one to one basis and network in a relaxed, fun-filled environment!

GOLF DAYS 24TH OCTOBER, 2013 VENUE: EMIRATES GOLF CLUB, DUBAI. FALDO COURSE

CONSULTANTS AND ARCHITECTS CUP CONTACT: PUBLISHING DIRECTOR Raz Islam +971 4 440 9129 raz.islam@cpimediagroup.com

COMMERCIAL DIRECTOR Michael Stansfield +971 4 440 9128 michael.stansfield@cpimediagroup.com

MARKETING MANAGER Carole McCarthy +971 4 440 9157 carole.mccarthy@cpimediagroup.com

 

Special feature PUMPS

bigprojectME.com

Pump It Up

Big Project ME examines how pumping systems are evolving to meet the needs of high rise buildings, while also striving to stay energy efficient and cut down costs

I

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t’s only natural that when a visitor in Dubai looks around at the high rise buildings that make up the emirate’s impressive skyline he focuses on the architecture and the design of the buildings. After all, there’s plenty to look at and it’s the first thing to catch the eye.

But behind the bright lights and shiny façades, there are arguably more impressive engineering feats being done in these buildings, and Big Project ME decided to take a look at them and find out how they operate.

One thing no building, or indeed any habitable structure, could survive without is water. It is vital to even the most mundane of tasks in our day to day lives.

It’s vital that everyone has access to it, no matter where they are.

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So when you factor in that there are buildings in Dubai that reach heights of 400m (or in the case of the Burj Khalifa, double that), then the engineering feats behind delivering water to the upper reaches of these buildings becomes a

seriously impressive feat of engineering and planning.

“On a high-rise building, we would have what we call vertical, multi- stage pumps. They’re pumps (designed) so that basically, the discharge of one stage,

“On a high rise building, we would have what we call vertical, multi-stage pumps.

They’re pumps (designed) so that basically, the discharge of one stage, is the inlet of another stage. You’ve therefore got a multiplier effect due to the very high pressure within a system”

Special feature PUMPS

“If you take a standard pump that operates at 2,000RPM, then when the pump kicks in, it automatically hits 2,000RPM and it might only come online for a few seconds to provide water for someone who is maybe switching a tap on. Then when the tap is closed, the pump shuts itself back off again”

Water calculations n 62.4 lbs Weight of

water per cubic foot

n 0.433 psi Mass of

pressure needed to lift water one foot

n 2.31 ft Distance

water is lifted by one psi

High-rise High Pressure Tall buildings pose major challenges to pump system designers.

designing the entire layout of the water distribution systems.

High rise design and construction poses a number of special challenges to pump system designers. One of the biggest challenges relating to the design of the systems is controlling the pressure.

This is where having variable frequency drives and pressure switches can help a building maintain a regular flow of water through the different floors. Variable speed pumps can be used to regulate the flow of water and reduce the amount of energy used. Therefore, they can provide large energy savings for buildings thanks to the pump only using the power required to meet the duty required of the system.

“What we recommend to clients is the Variable Frequency Drive,” says Hedigan, “If you take a standard pump that operates at 2,000RPM, then when the pump kicks in, it automatically hits 2,000RPM and it might only come online for a few seconds to provide water for someone who is maybe switching a tap on. Then when the tap is closed, the pump shuts itself back off again.”

“When you have a Variable Frequency Drive, if a tap opens, the pump will open up to 300RPM (for example), and then to 700 to 800 RPM if a second tap opens. So you only have the speed of the motor that you require,” he explains.

“It’s like having a car and driving it in top gear all the time, and not bothering about first or second gear. So when we have a variable frequency drive, it’s definitely more energy efficient, uses less power and adds more life to the motor.

But to actually do that comes at a cost.”

And this is a crucial factor in the uptake of the system, as Hedigan

JULY 2013

MIDDLE EAST

is the inlet of another stage. You’ve therefore got a multiplier effect due to the very high pressure within a system,” explains Philip Hedigan, Sales and Marketing director for Bin Moosa Daly, a local, Abu Dhabi based pump supplier that works with a number of international pump manufacturers.

“In a typically large multi- storey building, of 40 or 50 floors, you use pumps that are located on the ground floor, probably with a below ground tank and vertical multi-stage pump units that would provide enough pressure to overcome gravity and get up to a storage roof tank. If you’re looking at a very high building, then what you do is, maybe with the top two or three floors, is have a pressurised system to provide pressure to the top floor combination units, while below those floors, you’d operate the gravity system,” he adds.

Weighing 62.4 pounds per cubic foot, water is significantly heavier than water.

Therefore, it needs a mass of 0.433 psi to lift water one foot (62.4lbs/144in in feet).

In other words, one psi lifts water up by 2.31 feet.

While this may be seen as somewhat irrelevant in a single storey building, when extrapolated to a high-rise multi- storey building, it becomes a crucial factor in

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SPECIAL FEATURE PUMPS

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MIDDLE EAST

says that he’s noticed that clients and customers would rather not pay the upfront capital cost and would instead prefer to pay the running costs on the day-to-day operation of a system.

However, he points out that this may be changing thanks to international regulations that have made energy efficient motors a requirement for most types of pump systems.

“The thing is that everything comes at a cost, but we look at what we call MEPS, which are motors that are more efficient than normal pumps. They’re not required in the UAE, but in lots of other countries, they are,” he says, implying that this may soon filter down into the country’s market and industry.

He adds that there has been increased emphasis on pump manufacturers providing filtration systems with their systems. Although this isn’t a requirement yet, he says there has been significant interest in the technology.

“If we’re asked to, we can also provide a water filtration unit with activated carbon and a polishing unit that will clean up the water and take out some of the fluorides and taste out of it, and also any suspended solids in it. You can get into microfiltration as well, but typically, if we were looking at standard villas, they typically wouldn’t have that,” he explains. n

JULY 2013

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Hydro pneumatic pumping system Indian energy saving firm, “Bijili Bachao!”

the time of operation. The distribution of water

explains how a hydro-pneumatic pumping

from the overhead tank to the houses happens

system works.

though gravity (or the weight of water) and there is no electricity required for the same.

What is a Hydro Pneumatic or pressure booster pumping system?

Challenges with a HydroPneumatic pumping system

A hydro-pneumatic pumping system has

At a high level a hydro pneumatic system

a ground level storage tank instead of an

looks neat and sophisticated but the problem

overhead storage tank. Pressure sensors are

is with the efficiency of the system.

installed at various parts of the plumbing in a building that make sure that there is

In buildings we evaluated, every time anyone

a constant pressure of water everywhere.

opened a tap for water or used water in the

Whenever a sensor senses that the pressure

bathroom, the pumps got switched on.

is low, the pump close to the ground level storage tank starts and pushes the water up to

We observed that it started and stopped

the level where it is required. It maintains the

almost every 2 seconds. Any pump takes

same pressure everywhere.

higher current to start up (6 to 7 times more than stable operation) and since the pumps

What is a traditional gravity based storage system?

were starting very frequently, the electricity

Traditionally most high-rise buildings have a

also required to achieve constant pressure

water storage tank at the top. Pumps installed

across the building.

consumption was very high. Extra energy is

at the bottom of the building push the water to the overhead tank. The pumps are run for

The other drawback of such a system is

a few hours a day to ensure that the water is

that it will not work in places where there

adequate in the overhead tank. If right size

are frequent power cuts. From an energy

pump is used for a given load the pumps can

efficiency perspective, a hydro pneumatic

run close to the best efficiency point during

system is just too expensive to operate.

SPECIAL FEATURE coatings

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A Protective Coat

Big Project ME finds out how protective coatings can help preserve the lifecycle of structures, while also providing additional benefits that contribute towards efficiency and sustainability

W

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hen it comes to preserving the lifecycle of a building substrate, one of the simplest and most cost-effective ways of doing so is to apply a protective coat to it. Over the years, there has been many advancements in coating technology which have brought numerous benefits to the structures that they’re applied to.

Not only can they increase and protect the substrate, but they can also help reduce emissions, increase efficiency and help improve indoor air quality.

Furthermore, the technology has advanced to such an extent that exteriors and interiors made of different materials can now be coated in a protective covering, and in various colours and hues, to suit the design of a building.

JULY 2013

This is especially true of metalwork, which has long been a particular bugbear for contractors, who have been unable to customise them to meet the requirements set out by their clients.

“Advances in coating technology mean that metal ceilings can be provided with anti-bacterial coatings, which are applied during manufacture,” says Andrew Jackson, a director at SAS International, a

British manufacturer of interior products.

“Such coatings effectively inhibit the growth of micro-organisms and control potential risk when used in conjunction with routine cleaning procedures.

They are suited to various applications including hospitals, laboratories and schools.”

In addition, coatings can also be used to protect systems and units that

“Such coatings inhibit the growth of micro-organisms and control potential risk when used in conjunction with routine cleaning procedures”

SPECIAL FEATURE coatings

exhibit varying temperatures, such as air conditioning units.

One such material is HVAC paints, which works in conjunction with electrogalvanisation to increase the performance and life expectancy of air conditioning units by a considerable distance. The constant flow and convergence of hot and cold air causes damage to the base material of the main metal unit.

Traditionally, prior to applying a prime coat of HVAC paint to the unit, painters would apply a zinc epoxy primer to the unit by either brushing or spraying.

The primer consists of 3% to 4% of zinc content in the undercoat, which is then mixed with promoters, resins, solvents and more.

“When you put a layer of electrogalvanized zinc on the component, you are putting on 7 – 20 microns of pure zinc as an undercoat. Although this is seen as an extra cost, treating the base material in this way will enhance the overall life of the component,” says Rajeev Daswani, managing director of Marami Metal Plating, a firm based in Dubai.

The process of electro-galvanising forms an electrical bond between the zinc and the metal from the unit being coated, allowing for better surface adhesion. Furthermore, there is increased tensile strength and compared to other alternatives, it is extremely eco-friendly.

“An alternative to zinc coating is chrome, which is still being done today in the region,” says Daswani.

“However, using chrome-based primers is carcinogenic in nature and is causing health concerns in Europe. We would highly recommend that people opt for zinc epoxies as it is proven to be significantly effective in corrosion resistance and safe across all industries regardless of its use.”

In the long run, Daswani states that HVAC painted units can significantly

coating protection Coatings can significantly increase a project’s lifecycle.

benefit from extremely strong three-fold protection by first electro-galvanising the unit, then adding a thin layer of zinc epoxy primer and then finish with a coat of HVAC paint.

Another benefit of electro-galvanising the base metal is that painters can reduce or even eliminate the amount of zinc primer that is sprayed or brushed on the component, reducing costs, whilst still providing optimal protection.

“Initially, there will be an incremental cost to maximize protection of the units with these three steps, however in the long run, performance increases, inevitable corrosion is delayed, and the aesthetic finish is close to perfect,” he adds.

Andrew Jackson points out that this increase in longevity has additional benefits for buildings and developers.

“Interior metal ceiling solutions have a lifespan in excess of 25 years with only the need for basic maintenance,” he says. “At the end of their life they can be recycled into new virgin steel without any loss of properties and can count towards accreditation such as LEED environmental credits. They offer an inert and inherently hardwearing surface, making metal ceiling systems both hygienic and requiring little ongoing maintenance,” he says.

“Polyester powder coated metal ceilings are not susceptible to the

HVAC Paint n Zinc Primer 3% to

4% of zinc content in primers

n 7-20 microns Amount of pure zinco in undercoats

n Increased lifecycle of units can be gained using HVAC paints

n Corrosion Protection HVAC paint delays inevitable corrosion

JULY 2013

MIDDLE EAST

“Using chrome-based primers is carcinogenic in nature and is causing health concerns in Europe”

55

SPECIAL FEATURE coatings

paint chipping and accidental damage normally associated with alternative ceiling finishes. Less wastage and speed of installation are key benefits for a fit-out.”

“As the ceiling void needs to be accessed for maintenance of integrated services metal provides a long-lasting and durable option for ceiling tiles. Approved powder coatings on metal mean that the paint finish can be guaranteed for 30-40 years, and this can count towards credits such as LEED and Estidama’s Pearl rating systems,” he explains further.

“If architects and contractors work closely with manufacturers like SAS International it is easier to ensure their design and performance specifications are met. Providing long-term value of any product balanced with environmental credentials and greater design flexibility to meet occupant comfort demands is essential.”

Hans Monsebakken, a general manager at Jotun Powder Coatings, adds that his firm has been focusing on the development of powder coating technology that works on different substrates. Of particular interest, he says, is heat reflective powder coatings that are showing promising results in the lab.

“We have heat reflective powder coatings that we launched about two or three years ago. For this region (the Middle East), it’s clearly the most beneficial,” he explains. ““Current efforts made by our Research and Development (R & D) team are focused on seeing how heat reflection can help in energy reduction. Surfaces where our heat reflective paints and coatings are applied have demonstrated a 5 to 10 degree drop in temperature. The concept here is lesser heat equals to savings on cooling energy and electricity cost.””

Monsebakken adds.

He adds that Jotun has been looking at launching a number of sustainable and eco-friendly coatings that will help

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their clients meet their LEED and other sustainable requirements.

“Energy efficiency has always been a significant factor and key consideration in developing our products. Jotun is looking at working closely with façade consultants and industry experts to find out the percentage of electricity saved when using our products.”

“Our current range of powder coatings and paints reflect the new innovations that we have introduced in today’s markets. One of our key objectives is to come up with products that can undergo the process of curing at low temperatures, which in turn, allows users to save energy at the time of application,” Monsebakkan adds in conclusion. n

Jotun Reveals edge Jotun has launched a new range of powder coatings it calls ‘Reveal Edge’, which are specially formulated to ‘bring distinct visual character, colour and personality’ to interiors.

The Reveal Edge range comprises of 20 vibrant metallic colours under four main themes, including matt and sparkle effects.

Michele Azouri, project manager Industrial at Jotun Powder Coatings Middle East, says that the new range taps into a growing trend amongst regional designers to ‘inject personality into their home appliances and products, for display as forms of art’.

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MIDDLE EAST

“We’re trying to launch low temperature cure products which help you save energy at the time of application”

JULY 2013

Jotun believes that this category has the potential to grow with the demand for new housing and increased relocations amongst the region’s cities.

Big Project ME, the region’s leading monthly B2B magazine for the construction industry, is proud to announce the GCC 2014 Construction Book

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CAMPBELL GRAY

Improving Healthcare Governments in the Middle East are stepping up to the challenge of delivering much needed social infrastructure. Faithful+Gould’s Campbell Gray explains how.

Both Kuwait and Saudi are now exploring ways of mobilising PPP to develop their social infrastructure.

There are a range of economic, social and political motivations for developing PPPs including the sharing or apportionment of risk, the integration of specialist skill sets, culminating in improved efficiency, as well as the provision of a recognised investment vehicle conducive to the attraction of private sector investment.

The Middle East impetus is less fundingrelated and more focused on PPP’s key role in delivering projects more efficiently. PPP also promotes knowledge transfer to the local economy and Kuwait in particular is actively keen on this. The long-term commitment from international and local companies is critical to develop PPP facilities and operate them successfully.

Like other countries that have achieved success with PPP, the Middle East will need to build its own specific PPP models based on local requirements. n

GCC healthcare spend n $43.9 billion Projected value by 2015

n 11% Projected annual rate of growth

n $25.6 billion Market value in 2010

n 93,992 Projected demand for hospital beds in 2013

Campbell Gray is responsible for Faithful+Gould’s operations in the Middle East region, with 20 years of technical advisory experience across infrastructure, energy, hospitality, health, education and property sectors. He’s currently been elected a Fellow of the Royal Institution of Chartered Surveyors (RICS).

Prior to joining the ME business, Campbell held the position of International PPP Director, with expertise on all three sides of the transaction process including; public sector advisory, consortia and funders.

JULY 2013

MIDDLE EAST

I

n a departure from the predominantly real estate focus of previous years, the GCC countries are currently investing in housing, healthcare and education for their young and growing populations.

Both Saudi Arabia and Kuwait are exploring ways of improving and investing in their social infrastructure.

Healthcare facilities have come under the spotlight for both countries.

Increasing life expectancy, together with the Middle East’s high prevalence of non-communicable diseases such as cardiovascular disease, diabetes and obesity, are putting considerable pressure on existing systems of care. Preventative and primary care are therefore seen as priority areas for the future.

In Saudi the Ministry of Health covers more than 60 per cent of healthcare expenditures and is encouraging more private sector involvement by providing grant assistance through the Ministry of finance to private healthcare companies.

A number of international healthcare providers are interested in moving into the buoyant Saudi market to capitalise on the growing middle class and to provide an alternative to Saudi’s going overseas for ‘medical tourism’. In Kuwait the healthcare sector is undergoing rapid expansion, with the government currently spending an additional US$178 million to upgrade existing hospitals.

Governments in the Middle East are increasingly turning to the private sector for support in developing and delivering large scale projects. There is huge potential and growing appetite for Public Private Partnership (PPP), which has to date been popular in the services and utilities sectors.

59

TENDERS

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TOP TENDERS Project name: Sulaimaniyah Tramway System Project

Budget $1,100,000,000 Client Ministry of Transport & Communication (Iraq)

Region Kurdistan, Iraq Description Construction of 58-kilometre-long tramway system for Sulaimaniyah

Status New Tender Project name: Viceroy Resort Project - Palm Jumeirah

Budget $272,000,000 Client SKAI Holdings Ltd (Dubai)

Project name: Jebel Ali Theme Entertainment Development Project

Budget $2,700,000,000 Client Meraas Development (Dubai)

Region Dubai, UAE Region Dubai, UAE Description Construction of Viceroy Resort comprising (481) rooms and (221) residences, including (10) restaurants, an 800-square-metre spa, a 350sqm gymnasium, a 106-metre swimming pool and a beach club

Description Development of five different theme parks in Jebel Ali area to promote tourism Status New Tender

Status Current Project Project name: Bahrain - Saudi Arabia Railway Line

Budget $5,000,000,000 Client Bahrain Government Region Bahrain Description Construction of a 90-kilometre-long railway line linking Bahrain and Saudi Arabia

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MIDDLE EAST

Status New Tender

JULY 2013

Project name: NMC Specialty Hospital Project - Khalifa City

Budget $200,000,000 Client New Medical Centre Group - NMC (Abu Dhabi) Region Abu Dhabi, UAE DescriptionConstruction of New Medical Centre (NMC) Specialty Hospital comprising basement and ground floors, as well as three upper floors, capable of accommodating (250) beds, offering (170) beds, seven operating rooms.

Status Current Project

TENDERS

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MIDDLE EAST TENDERS Provided by Tel +9712-6348495 Web www.MiddleEastTenders.com Email sales@MiddleEastTenders.com

UAE Dubai Frame Tower Project - Zabeel Park

Project Number NPR026-U Territory Dubai, UAE Client Name Dubai Municipality Address Deira City Dubai Postal/Zip Code 67 Country United Arab Emirates Phone (+971-4) 206 4620 / 324 3666 / 206 3030/800 900 Fax (+971-4) 221 0530 / 324 7465 / 224 8026 Email info@dm.gov.ae Website www.dm.gov.ae Description Construction of Dubai Frame (Al Berwaz) Tower, a window-shaped, 150-metre by 105-metre complete glass, transparent structure resembling a huge window frame Period 2014 Status New Tender Main Consultant Hyder Consulting Middle East Ltd (Dubai) Foundations, Enabling & Piling Contractor Bin Ladin Contracting Group LLC (Dubai) Tender Categories Leisure & Entertainment, Prestige Buildings Tender Products High-rise Towers, Museums/Art Galleries

Saadiyat Rotana Resort Project Project Number MPP743-U Territory Abu Dhabi Client Name Rotana Hotels, Suites & Resorts (Abu Dhabi) Address 7th Floor, East Wing, Abu Dhabi Mall City Abu Dhabi Postal/Zip Code 45200 Country United Arab Emirates Phone (+971 2) 699 4444 Fax (+971-2) 699 4445 Email sales.abudhabi@rotana.com Website www.rotana.com Description Construction of 5-star Saadiyat Rotana Resort comprising (354) rooms and (13) beach villas Period 2015 Status New Tender Main Architect Gazi Awad Architects & Engineers (Abu Dhabi) Project Manager EC Harris International Limited (Abu Dhabi) Tender Categories Construction & Contracting, Hotels, Leisure & Entertainment Tender Products Hotel Construction, Villas Construction

Saudi Arabia Riyadh National Aquarium Project - King Abdullah Financial District

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MIDDLE EAST

Project Number MPP2669-SA

JULY 2013

Territory Saudi Arabia Client Name Arriyadh Development Authority (Saudi Arabia) City Riyadh 11614 Postal/Zip Code 94501 Country Saudi Arabia Phone (+966-1) 488 3331 Fax (+966-1) 482 9331 Email info@arriyadh.com Website www.ada.gov.sa Description Construction of Riyadh National Aquarium Closing Date July 13, 2013 Status New Tender Design Consultant Cambridge Seven Associates Inc. (USA) Tender Categories Construction & Contracting, Leisure & Entertainment Tender Products Civil Works, Construction & Addition Works

Aldara Hospital & Medical Centre Project Project Number NPR025-SA Territory Saudi Arabia Client Name Aldara Medical Corporation (Saudi Arabia) City Riyadh 11431 Postal/Zip Code 1105 Country Saudi Arabia Phone (+966-1) 463 1667 Fax (+966-811) 142 9679 Email info@aldaramed.com Website www.aldarahospital. com Description Construction of sixstorey Aldara Hospital & Medical Centre covering a total built-up area of 107,000 square metres Budget $110,000,000 Period 2015

TENDERS

Status Current Project Main Contractor Arabtec Construction L.L.C (Saudi Arabia) Tender Categories Construction & Contracting, Medical & Healthcare Tender Products Construction & Addition Works, Hospital Construction

Medina Metro Project

City Muscat PC 113 Postal/Zip Code 393 Country Oman Phone (+968-24) 602 177 Fax (+968-24) 602 647 Website www.moh.gov.om Description Construction of Sultan Qaboos Medical City comprising more than (2,000) beds and five specialist tertiary hospitals Budget $1,000,000,000 Status New Tender Tender Categories Construction & Contracting, Medical & Healthcare Tender Products Hospital Construction

Address Q-Tel Tower, Diplomatic Area, West Bay City Doha Postal/Zip Code 23224 Country Qatar Email qhinfo@qatarholding.qa Website www.qatarholding.qa Description Construction of a light-emitting diode (LED) lighting systems factory.

Budget $36,000,000 Period 2014 Status New Tender Tender Categories Industrial & Special Projects, Power & Alternative Energy Tender Products Factories

Qatar

Warehouse Development Project - Bahrain Investment Wharf

Oman Sultan Qaboos Medical City Project

Project Number BIP147-O TTerritory Oman Client Name Ministry of Health (Oman) Address Opposite Khoula Hospital, Bldg No. 105

LED Lighting Systems Factory Project

Project Number BIP139-Q Territory Qatar Client Name Qatar Intermediate Industries Holding Company Ltd. (Qatar)

Bahrain

Project Number BIP146-B Territory Bahrain Client Name Majaal Warehouse Company (Bahrain) Address Bahrain Investment Wharf, Hidd

City Manama Country Bahrain Phone (+973) 1756 7553 Fax (+973) 1756 7554 Email info@majaal.com Website www.majaal.com Description Construction of a warehouse spanning a land area of 252,000 square feet, which will serve as a new distribution centre Budget $45,000,000 Period 2014 Status Current Project Main Consultant Mohammed Salahuddin Consulting Engineering Bureau - MSCEB (Bahrain) Design Consultant Mohammed Salahuddin Consulting Engineering Bureau - MSCEB (Bahrain) Cost Consultant Baker Wilkins & Smith (Bahrain) Main Contractor Abdulaal Construction Services (ACS) – Bahrain Tender Categories Construction & Contracting Tender Products Warehouse Construction

JULY 2013

MIDDLE EAST

Project Number MPP2757-SA Territory Saudi Arabia Client Name Madinah Development Authority (Saudi Arabia) City Madinah Country Saudi Arabia Description Construction of an urban metro system in Medina aimed at easing congestion in the Holy City during the pilgrimage season Budget $1,000,000,000 Status New Tender Design Consultant Khatib & Alami Consolidated Engineering Company (Saudi Arabia) Design Consultant 2 Istanbul Ulasim (Turkey) Tender Categories Public Transportation Projects Tender Products Metro

63

DIARY JULY

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HAPPENING THIS MONTH...

International The 15th China International Building and Decoration Fair

Guangzhou, China July 8 – 11, 2013 The number one trade show for interior decoration and materials in Asia, with more than 320,000sqm of exhibition area. There are five sub-shows and nine pavilions, with more than 2,400 exhibitors. Approximately 120,000 visitors, from around 50 countries, visit the show annually.

4th Eco-Friendly Office/EcoFriendly Factory Expo

Tokyo, Japan July 10 – 12, 2013 Eco-Office / Eco factory EXPO is a professional exhibition of negotiations energy-saving and power-saving measures.

This exhibition is a place of great that you can compare and introduction consultation on the spot all the energysaving and power-saving measures products and services. In addition, it set up a special three zones, including energy-saving lighting.

Building and Home Improvement Expo 2013

Melbourne, Victoria, Australia July 12 – 14, 2013 The Build & Renovating Expo showcases the latest trends, building technologies and innovative products by industry leaders specialising in: bathrooms, kitchens, flooring, lighting, heating/ cooling, doors and windows, energy efficiency & solar products, roofing, fencing & gates, building materials, pools & spas, sustainability solutions and more.

Dalian Summer Real Estate Fair 2013

Dalian, China July 18 – 22, 2013 The largest scale and most influential real estate expo in the North of China that promotes national brand real estate, as well as being a bridge for the overseas real estate establishments to march into China. Attending the fair will bring exhibitors considerable economic and social benefit.

4th Modular Construction and Prefabrication 2013

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MIDDLE EAST

Brisbane, Queensland, Australia July 23 – 24, 2013 Modular Construction and Prefabrication 2013 will explore modular project delivery and how this can be utilised across a range of sectors. If you want to discover and understand the many benefits of modular construction, prefabrication and the risk mitigation strategies deployed to optimise project quality, shorten timelines and minimise

JULY 2013

project risk, then this event is for you.

Performance Excellence for Construction and Engineering

Atlanta, Georgia, USA July 24 – 25, 2013 Join Big Data IQ at the Performance Excellence for Construction & Engineering conference where thought-leaders and top performing construction and engineering firms will share key insights and strategies to help you achieve performance excellence in your organizations.

Modular Construction and Prefabrication Asia Singapore July 31 – August 1, 2013 It is the objective of this event to bring together decision makers and influential personnel from across South East Asia and Australia in order to directly assess and confront the most daunting industry challenges.

BOOK YOUR STAND TODAY To enquire about exhibiting email Patrick Gedeon on patrickgedeon@dmgeventsme.com or call +971 (0)4 445 3639

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GAVIN DAVIDS

Why Brazil Matters Gavin Davids says that the protests going on in Brazil are a wakeup call to Qatar about its own priorities when it comes to hosting the 2022 World Cup

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MIDDLE EAST

Having spent a week in Brazil last month, touring the Mané Garrincha Stadium and other assorted projects currently underway in Sao Paulo, Brasilia and Rio de Janeiro, it’s with some interest that I’ve been viewing the demonstrations that have broken out across the South American country.

The concerns that have been put forward by the Brazilian people are very real and hold the government and leaders of the country to an uncomfortable truth.

Just what will be the long term benefit of the World Cup and Olympics to the country and its people?

While FIFA and the IOC has often sold its premier event as a force for good, the reality is that host nations often end up massively in debt and forced to tighten their belts economically. According to data collected by the BBC, South Africa’s World Cup saw FIFA rake in revenue of $3.2 billion on a budget of $1.23 billion.

Meanwhile, South Africa’s budget for the event was a mammoth $5.3 billion, or 1.72% of GDP....on one month-long event. This included building and redeveloping stadiums, creating new transport infrastructures and upgrading the country’s security systems.

JULY 2013

This is what Brazil’s people are protesting about. While these sporting events are massive prestige building exercises, there needs to be tangible long term benefits from them. Otherwise, the money could be better spent on education, healthcare and other social benefits.

This is what Qatar must realise as it continues to build for the 2022 World Cup. The need for transport infrastructure is vital in the Gulf state and the growth of its planned public transport network must continue on past the World Cup. Right now, a lot of what I’m hearing from Qatar seems to be short term thinking. ‘Get everything sorted out for the World Cup and worry about the rest later,’ is the general attitude and that is deeply worrying for the future.

Yes, Qatar deserves to hold the event and it should be given every opportunity to prove that it can, and I’m confident that it will. But equally importantly, the country needs to ensure that its people benefit from the work that’s gone into the building for the World Cup. This is why Brazil matters to Qatar. We need to look at what is happening there as a wakeup call. Sometimes, there’s more to life than football. n

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