The Big Project Middle East

MARCH 2011

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MARCH

Contents 13

REGULARS

FEATURES

Editor’s letter 4

13 Comment

News bulletin 7 News in focus 16 Utilities company Tabreed announce 2010 financial results for 2010

On site 24 The Big Project visits Damac’s Burjside Boulevard development at Downtown Dubai

24

Event insider 31 Exclusive preview of the Saudi Construction Show 2011

34

Market explorer 43 The drive to create a tourism based economy will see 24 mega projects initiated in the capital alone

Trends 49 Experts from the region’s aluminium industry gather in Dubai to analyse industry strengths and weaknesses

Tenders 69

49

Diary 73 Your shout 74

Ahead of the introduction of Dubai’s Law 27, The Big Project finds out how regulation can improve real estate

20 Market report A round up of the current political situation across the region

34 Infrastructure top 10 A round-up of the regions top 10 infrastructure projects

41 Project update The latest news on the development of Brighton College Abu Dhabi

47 Talk Woods Bagot CEO and global executive chairman talks about a new software design platform

56 Construction acoustics Acoustic expert Paul Schwarz helps investigate noise complaints around Dubai Marina.

64 Supplier hotseat 67 Career ladder

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EDITOR’S COMMENT

Publisher Dominic De Sousa Chief operations officer Nadeem Hood Associate publisher Liam Williams liam@cpidubai.com TEL: +971 (0)4 440 9158 Chief marketing officer Kimon Alexandrou kimon@cpidubai.com TEL: +971 (0)4 440 9149

Turbulent times

T

his month, a much-discussed topic among The Big Project team has been the effect of the recent political turbulence across the Middle East on the region’s construction market.

The situation is bound to negatively impact the region’s industry.

Our thoughts are with those caught up in the violence and the hundreds of expats, many of whom are in the construction industry, that have been forced to — or are still attempting to — flee the most volatile areas.

Last month, I read in the local newspaper the story of one Dubai senior project manager who had been working on a construction project in Libya since June. He was evacuated from Tripoli along with 30 colleagues, but said some of his coworkers are still stuck in Libya.

“I could hear it [automatic

Director business development Alex Bendiouis alex@cpidubai.com TEL: +971 (0)4 440 9154 GSM: +971 (0)50 458 9204

weapons being fired] from my hotel room. No one knew who was doing it,” he told Dubai’s 7Days newspaper, adding that he feared for his life as he and his colleagues were forced to plot their escape to the airport on dirt tracks to avoid the trouble.

“You can be attacked any time,” he added. “It was a challenge to reach the airport.”

Last month, hospital sources in Libya alone estimated 1000 people had been killed during the military’s effort to gain control of the streets.

In next month’s issue of The Big Project, we will feature more stories from those in the regional construction industry that have been affected, as well as an analysis of the impact on the market.

For now, turn to page 22 for a brief overview of the situation, as it transpires across the Middle East.

Louise Birchall Editor

Business development manager Rhiannon Downie rhiannon@cpidubai.com TEL: +971 (0)4 440 9152 GSM: +971 (0)50 554 0116 Business development manager Nayab Rafiq nayab@cpidubai.com TEL: +971 (0)4 440 9153 GSM: +971 (0)55 542 6032 Senior sales manager Scott Woodall scottwoodall@cpidubai.com TEL: +971 (0)4 440 9144 GSM: +971 (0)50 557 3677 Editor Louise Birchall louise@cpidubai.com TEL: +971 (0)4 440 9118 GSM: +971 (0)56 605 8091 Assistant editor Melanie Mingas melanie@cpidubai.com TEL: +971 (0)4 440 9117 GSM: +971 (0)56 758 7834 Designer Marlou Delaben Photographers Helen Riley Webmasters Troy Maagma Elizabeth Reyes Jerus King Bation Erik Briones Printed by Printwell Printing Press LLC Published by

Head Office PO Box 13700 Dubai, UAE Tel: +971 (0)4 440 9100 Fax: +971 (0)4 447 2409 Web: www.thebigprojectme.com © Copyright 2011 CPI. All rights reserved.

While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

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Property market knowledge “poor” Industry survey concludes 25% have poor understanding

Chris Speller, group director for Cityscape Abu Dhabi

A survey conducted by Cityscape Abu Dhabi has found 25% of property professionals have a “poor” understanding of the market.

The survey aimed to establish how property investors get access to the information they need. Of the total sample, 14% claimed to have excellent knowledge of the industry.

Respondents cited a lack of industry awareness, which highlights “a requirement for more transparent processes and a steady stream of up to date information”, according to Cityscape.

“There is a clear need for the provision of easily accessible and straight forward information as the shape of the market continues to transform and diversify,” said group director for Cityscape Abu Dhabi, Chris Speller.

“It is encouraging, however, to see that exhibitions and conferences are regarded by over 40 percent of our survey participants as such an effective way of finding out information.”

It was also concluded that one third of respondents claimed their access to information on the industry was poor, with exhibitions and conferences named the top source for increasing knowledge.

Government support drives construction recovery Shaikhani Contracting announces expansion plans as market recovers The “strong support” from Dubai’s government is supporting growth in the construction industry, according to Shaikhani Contracting.

In a statement released last month, managing director Rizwan Shaikhani said the UAE, particularly Dubai, is enjoying continued growth.

Other key markets include Kuwait, Qatar and Saudi Arabia with a number of new and delayed projects now underway.

In response, the company has announced a “strategic region wide plan targeting growth and expansion” in the UAE and wider region. They will also recruit a number of technical and nontechnical staff, including engineers.

“Our region wide expansion plan will allow us to enter and branch out into new markets across the region; creating new partnerships, opportunities and projects,” said Rizwan Shaikhani, managing director for Shaikhani Contracting.

“This move gives us the opportunity to bring

Growth predicted for regional MEP sector Market to reach value of $22.4b by 2013 A report by growth partnership advisors Frost and Sullivan has concluded the regional mechanical, engineering and plumbing (MEP) industry will be worth $22.44 billion by 2013, double its value in 2008.

The report predicts a compound annual growth rate (CAGR) of 10.8% during the period, due to infrastructure, tourism related developments and the Qatar 2022 world cup, which are spurring the recovery of the construction sector.

“As the construction industry throughout the Gulf perks up, driven by new projects such as those resulting from Qatar’s win for the 2022 Fifa World Cup, new airports and touristic developments, demand for MEP products and services is bound to increase – it is a logical development,” said Ahmed Pauwels, CEO of Epoc Messe Frankfurt, organisers of the Hardware and Tools Middle East exhibition.

The report, “Strategic Analysis of the Machinery, electrical and plumbing services market in the Middle East”, also listed investment in commercial and residential projects and highlighted the significance of the MEP markets in Qatar, Saudi Arabia and the UAE. According to the data in the report, the MEP sector is led by electrical services, which account for a 43.2% market share.

Mechanical services account for 37.6% of the market, with plumbing representing 19.2%.

Rizwan Shaikhani

the Shaikhani brand to newer heights and to allow us to live up to our reputation of working closely to deliver projects on time,” he added.

It is reported US$1.3 trillion worth of construction projects are in development across the region.

According to the 2010 Regional Economic Outlook by the International Monetary Fund (IMF) the UAE is forecast to grow 3.2% this year, a figure Shaikhani comments is “not bad”. There are currently US$714.8 billion worth of projects in progress or in the planning stages.

Ahmed Pauwels, CEO of Epoc Messe Frankfurt

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NEWS | REGIONAL

NEWS BULLETIN

NEWS | REGIONAL

$706.7bn Predicted worth of the building materials market by 2015

“Projects need quality control consultants to be appointed by the client, so right now part of this chain is missing somewhere”

Quality standards require regulation Industry experts agree a shortfall in unified standards damages project quality

Modar Mohamed Al Mekdad.

A shortfall in quality between the materials specified and those provided for Governmentled construction projects is occurring, due to a lack of quality control.

The comments were made by Gulf Extrusions general manager Modar Mohamed Al Mekdad, during an interview with The Big Project.

“Government projects demand high quality standards but what happens is that when the project is executed we find a big gap between specifications and actuality. We have seen in many government projects certain certifications are insisted upon for certain products but then

Saudi power capacity to double Real estate and industry to drive energy demand Electrical power capacity is forecast to increase by 49% by 2019, to meet a 9% per capita increase in consumption.

The increased consumption is underpinned by a growing real estate industry and energy intensive industrial development.

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for other products they are not developed,” said Al Mekdad in the interview.

Calling on the need for quality control managers on projects, he added: “The government really pays for a good quality product, where is this gap? Which pocket is it going to? At the end of the day, some of the products are really of inferior quality.

“Even if the project is ‘low-cost’ housing, still there are specifications to be met.”

Al Mekdad was joined by a panel of experts from the aluminium industry to discuss quality standards and regional supply chains.

Echoing his concerns, Phil Ellerby, managing director and owner of Rigidal Industries, commented: “If one is to improve specifications generally then it is through client’s representatives in a private investment or through the various government departments; any of the institutions which are building high levels of infrastructure that they want to last.”

Mekdad also voiced concern about quality specifications in private sector projects and a lack of regulation industry wide.

“Projects need quality control consultants to be appointed by the client, so right now part of this chain is missing somewhere. I’m not expecting the developer or client to know everything about the products, but there are specialists who know what quality should be.

“There should also be supervision from the government to say this is the minimum that should be met for a particular industry or product. This is where we are still yet to catch up.”

The full interview can be found on page 47.

Power consumption is projected to reach 220 terawatt-hours per year by the end of the forecast period with a per capita consumption increase of 9 per cent, according to data provided by Riyadh Exhibitions Company.

An official statement released by the Saudi cabinet at the end of last month confirmed an agreement had been signed between the Kingdom and France to develop a nuclear energy programme.

The agreement was signed by Hashim Yamani, President of the King Abdullah City for Atomic and Renewable Energy, and French Minister of Industry Eric Besson.

Key projects include a number of bridges and railways.

Massive investments to be made in GCC transport development Multi-billion dollar projects include bridges and rail networks Qatar, Saudi Arabia and the UAE are to fund transport projects worth US $170 billion over the next 15 years.

More than two thirds of the investment has already been ploughed into rail projects, with Saudi Arabia contributing 85% of the total.

Key projects are to include a number of new bridges; one a 1000km link between Jeddah and Dammam, expected to carry 300 million passengers and one billion tons of freight annually.

Rail projects include the 500km Haramain high-speed rail link, to meet the needs of pilgrims travelling between Mecca and Madinah. Construction of the GCC wide rail network, is expected to begin shortly, with completion due 2017.

“Saudi Arabia’s comprehensive and longterm national plan to enhance transport infrastructure requires an efficient and extensive network of partnerships, expertise and resources,” said Jamie Dowswell, conference director, for Bridges Saudi Arabia 2011.

“Putting all of these elements under one roof provides an excellent platform for the country’s decision-makers and developers to choose the best partners, suppliers and technologies to ensure the success of the Kingdom’s infrastructure developments,” Dowswell added.

Saudi Arabia’s Islamic Development Bank has also announced plans to invest $511million in megaprojects in Albania, Turkey and Pakistan.

XXXXXXXX NEWS | REGIONAL | XXXXXXXXXX

5.1% The rate of growth the IMF has Predicted for regional GDP

DAMAC welcomes new RERA codes Dubai-based group praises Dubai’s new real estate regulations Damac Properties has praised Dubai’s Real Estate Regulatory Authority (RERA) for introducing new regulations to the market, which the company says will be a “model for other developing property markets”.

With a remit to boost confidence and increase transparency, Dubai’s new ‘Strata Law’ outlines the requirements for developers to provide full disclosure statements about all of their projects in Dubai, as well as prepare Jointly Owned Property Declarations, which include definitions of internal floor space and

DAMAC Properties ‘Ocean Heights’ tower in Dubai Marina.

share of ownership of common areas. A third direction outlines the framework for establishing Owners Associations.

The new regulatory frameworks, including escrow accounts and a real estate register, have been initiated to ensure that further growth of the real estate market is sustainable and viable.

“The regulatory and legal framework that now underpins Dubai’s property market is on par with international standards. RERA is to be commended for creating a regulatory environment that will become an example for other countries in the region” said Niall Mc Loughlin, Senior Vice President, DAMAC Properties.

Dubai’s Strata Law, also known as Law 27, could act as a framework for markets in Egypt and Saudi Arabia, he added.

“Countries such as Saudi Arabia and Egypt are already making significant progress with regard to implementing their own regulatory framework to support growth in their respective real estate sectors.

“There is the potential for Dubai’s Strata Law to be used as a template for neighbouring countries, which are also planning to introduce regulations that define multiple-ownership” Mc Loughlin added.

Egypt is currently developing a mortgage finance regulation.

DAMAC claim the MENA region will be a “powerhouse” for the global economy this year, following IMF predictions that regional GDP will increase 5.1%, double the pace of the US and countries in the EU.

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NEWS | REGIONAL

33%

“Overall, we expect the MENA contractors under our coverage to post an 18% quarteron-quarter increase in earnings”

EMAAR’S QuARtER-ON-QuARtER INCREASE IN PROFItS, Q3 tO Q4 2010

Emaar reports “landmark year” Q4 revenue increase of 38% sets developer on track for 2011 Retail and commercial developments have contributed to a “landmark” year for Emaar Properties, with the developer reporting revenues of AED 12.2 billion in 2010.

In its strongest quarter, Q4, Emaar reported a 38% increase on Q3, with net operating profits of AED 691 million (US$ 188 million) for the same period.

It has also been announced that Emaar will hand over homes in Jeddah Gate and Al Khobar Lakes in Saudi Arabia, in addition to projects in Syria, Turkey and Egypt.

Emaar say this demonstrates “commitment to project delivery and increased focus on creation of prime real estate assets globally”.

The largest contribution to the figures was made by shopping malls and other retail and hospitality subsidiaries, contributing a combined 24% of total revenues. Healthcare and education assets were transferred to “renowned service providers”.

“In a year that was marked by cautious optimism, timely delivery of property and consolidation of core businesses, Emaar Properties took bold initiatives that have a far-reaching

“There is the potential for Dubai’s Strata Law to be used as a template for neighbouring countries”

potential in driving sustained returns for our stakeholders,” Mohamed Alabbar, Chairman, Emaar Properties PJSC said in a statement.

Listing the grand inauguration of Burj Khalifa, and the Downtown Dubai community, Alabbar added: “Dubai, having entered its next phase of growth under the visionary leadership of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai, will continue to be a key market.

“We will continue delivering a superior lifestyle experience to our customers. We see 2011 to be a signature year for Emaar with significant revenue streams from international operations kicking in.”

A statement from the developer added: “Emaar Properties will continue to strengthen the operations of its subsidiaries, Emaar Malls Group and Emaar Hospitality Group. This year, Emaar Hospitality Group will further consolidate its international footprint with the management agreements for operating luxury retreats in Morocco, South of France and Indonesia making significant progress.”

UAE construction industry set to pick up this year Conclusions based on performance of some of region’s largest construction companies The UAE construction industry is starting to capture investors’ attention, according to industry analysts.

After a “dreadful third quarter”, Deutsche Bank expected the sector to pick up in the weeks ahead, based on seasonal increases in business.

“Overall, we expect the MENA contractors under our coverage to post an 18% quarter-on-quarter increase in earnings,” the bank’s analysts Nabil Ahmed and Athmane Benzerroug wrote in a report.

For its top pick Deutsche Bank singled out Drake & Scull International (DSI), which yesterday announced a two billion Saudi riyal deal with Saudi Aramco to help build the King Abdullah Petroleum Studies and Research Centre project in Riyadh.

Last year DSI won deals worth AED1.2 billion in Saudi Arabia and the company expects further

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AbOVE: Emaar says 2011 will be a “significant” year with revenue streams from international operations coming in.

business from its largest market in the region. Last month, DSI said it was bidding on AED 4 billion worth of projects in Qatar. Khaldoun Tabari, the DSI chief executive, said at the time the company was also planning to expand through acquisitions, according to reports in The National newspaper.

Deutsche Bank predicted Drake & Scull would post a 15% increase in its backlog in the coming quarter, and an estimated 7% for Arabtec Holding, the largest construction company in the UAE. Arabtec secured more than AED 2.6 billion in contracts last quarter, its best performance since the second quarter of 2009, Deutsche Bank estimated.

Last week Alembic HC Securities singled out Depa, the Dubai interior contractor, for an upgrade.

Its analyst Majed Azzam cited the company’s diversification away from Dubai, low exposure to payment delays and ability to cover many sectors as among the company’s positive attributes, continued the newspaper report.

Depa is 36% undervalued, according to Alembic but it downgraded DSI from “overweight” to “neutral”, saying “fierce competition and tight liquidity raise concerns about margin compression and working capital deterioration”. The company maintained a “neutral” rating on Arabtec.

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COMMENT | REAL ESTATE

Re-building real estate Championed as a model practice for the region’s real estate market, five experts comment on how the introduction of the Dubai Strata Law will affect the industry

The developer

Niall Mc Loughlin, senior vice president, Damac Properties The regulatory and legal framework that now underpins Dubai’s property market is on par with international standards. RERA is to be commended for creating a regulatory environment that will become an example for other countries in the region to follow.

Countries such as Saudi Arabia and Egypt are already making significant progress with regard to implementing regulatory framework to support growth in their respective real estate sectors. There is the potential for Dubai’s Strata Law to be used as a template for neighbouring countries planning to introduce regulations that define multiple-ownership.

Saudi Arabia is taking monumental steps to provide clear legal frameworks to advance growth in the property sector. Damac is also eagerly awaiting the issuance of the mortgage law, which will play an active role in stimulating local and foreign investment in Saudi Arabia’s real estate market.

“RERA is to be commended for creating a regulatory environment that will become an example for other countries”

The Investor

Ahmed Shaikhani, managing director, Memon Investments In the Dubai Land Department and Real Estate Regulatory Authority, we are very much appreciative of the new regulations and they are a positive development for our operations here at MemonInvestments.

They will stop inexperienced real estate companies and set regulations for all experienced companies and institutions operating in Dubai and the UAE. The practices the authority wants to regulate and implement are correct, in the shape of the municipality codes, escrow accounts, and appointing auditors and consultants for the construction and financial sectors.

The market is more secure now; the payments are coming in and no person, organisation or institution can spend the hard-earned money in the wrong way.

If I was an investor in any country, my first question would be ‘how safe is my investment?’

If there was no regulation, I would cancel, but if I know there is regulation and that there are laws for land and laws for buying an apartment then I am interested in buying there.

The regulations are appropriate for the market right now. We see the authority implementing the laws and expect that it will gradually implement all of the necessary and correct regulations covering every aspect of the industry.

The regulatory body

Marwan Bin Ghulaita, chief executive officer, Real Estate Regulatory Authority I would like to see the real estate market being part of the economy. It can’t lead or drive economic performance; it should be part of it to attract professionals to the market.

Dubai is the most transparent market in the region, based on international standards. Three or four years ago, the regulation was not there.

Today, speaking as a regulator, if you want to buy a property a developer would be regulated and registered; if you want to gain a broker’s advice the broker is being registered, regulated and educated, enabling all in the sector to be controlled and regulated by us.

The best we can do is to tell each and every investor, even if he is sitting at home in the UK or the US, that there is a regulated market here.

People did get hurt in Dubai but they will reinvest in Dubai again because this is the right time to invest. This is how we are adding more professionalism to the market.

Let me share with you one fact, firstly, today we are making sure that only professionals up to our standards will come to Dubai. Secondly, the banks will start lending but we will have every lender in Dubai working by the book, not like before.

Today we are saying owners’ association management and the valuing of property will be based on international standards.

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COMMENT | REAL ESTATE

“If Dubai remains income and corporate tax free, it is only a question of time that will help improve matters further narrowing the supply and demand”

COMMENT | REAL ESTATE

“While the strata regulations are a necessary and important step in the evolution of the market, they alone are unlikely to restore investor confidence” “I would like to see the real estate market being part of the economy. It can’t lead or drive economic performance; it should be part of it”

STRATA AT A GLANCE The agent

Phil Sheridan, group chief executive, Fine and Country Estates Oversupply will continue to stall the prospect of growth in the property market. Those of us who live and work in Dubai, appreciate how welcoming a city it is and consequently, for the city to thrive once again, it needs to attract people; that is business.

To do that, it needs to be affordable and in that respect, Dubai has already become consumer friendly.

Therefore, if Dubai remains income- and corporate tax free, it is only a question of time, together with a range of initiatives, that will help improve matters, further narrowing the supply and demand gap.

Such matters include re-instating the threeyear residency visa with property ownership and the maturing of ‘body corporate’ when it comes to property maintenance charges.

Ultimately, the market still needs liquidity which must be delivered in the form of affordable mortgage finance.

This is something the banks are working hard to deliver, evidenced with Tamweel’s recent offering of 4.99%.

I also believe that Dubai International Financial Centre (DIFC) is crucial to Dubai’s financial standing. As many other parts of the world contend with radical change, high taxation and government intervention, so the financial sector could flourish.

In conclusion, demolishing a few buildings may not be the worst idea where the structure is evidently tired. But the supply demand balance will return.

In the end, the picture lies in the hands of us all. If everyone stopped knocking it and realised how lucky they were to live in this wonderful city, the future would be positively assured.

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The lawyer

Philip Corfield-Smith, associate, Pinsent Masons LLP We are advising developers and investors on the association establishment process but are aware that a number of regulatory issues have yet to be fully tested.

One such issue arises out of the historical lack of financial transparency provided by the management companies appointed by developers. It remains to be seen how any debts that remain outstanding at the time of establishment will be dealt with and whether the associations will have to assume liability and look to recover such amounts from the incumbent management companies through local courts.

The issue with this approach is that the associations will be tied up in costly and time-consuming litigation and potentially face difficulties in enforcing favourable judgments.

On balance it appears that the benefits of establishment outweigh the concerns and would break the deadlock that currently exists in many developments where, due to the lack of transparency and trust, owners are refusing to pay service charges, leading to the suspension of utility services.

Once the management of the building and funds are in the hands of the associations, it is hoped that the payment of the service charges that are necessary for the upkeep of the buildings would be made in a timely manner and the associations would then be able to use the mechanism contained within the regulations to deal with any defaulters.

While the strata regulations are a necessary and important step in the evolution of the market, they alone are unlikely to restore investor confidence and a number of other issues will need to be addressed to provide the right environment for a recovery.

•

Law No. 27 of 2007 Concerning Ownership of Jointly-Owned Properties in the Emirate of Dubai

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Ownership of jointly-owned property, including utilities, land, maintenance and safety provisions

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Disposal of units of jointly owned property; covering permission to divide assets between registered owners, right of refusal and division of common areas

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Authorisation and regulation of Owners’ Association groups

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Insurances for jointly owned-properties

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Direction for Association Constitution 2010

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Constitution covering annual charges; assets; codes of conduct; functions and powers of the association; voting and roles of the board, management and owners

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Direction for General Regulation 2010

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Disclosure statements and consumer protection; issues with disclosure statements; recovery of maintenance charges, community rules and the election of a board

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Direction for Jointly-Owned Property Declarations 2010

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Jointly-owned property declarations; longterm leaseholds

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Circular No. 1 of 2010 - Circular with regards to Service Charge for Jointly Owned Property

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The regulatory role of RERA and the payment of service charges

COMMENT | REAL ESTATE

NEWS XXXXXXXX IN FOCUS | XXXXXXXXXX | UTILITIES

13 The number of Tabreed new cooling plants that were delivered last year

Tabreed announces 2010 financial results UAE utilities company positioned for growth based on region’s demand for water-cooling infrastructure

A

bu Dhabi-based utilities firm National Central Cooling Company (Tabreed) is to refinance AED 2.6 billion with its lenders, it reported following the release of its 2010 full financial results.

For the 12 months ending December 31, 2010, total revenue increased by 31% to AED 1023.7 million and net profit, excluding the non-cash impairment declared for 2009, increased by 147% to AED 146.3 million over the same period in 2009.

Its bank lenders have unanimously approved the principal terms of an agreement to refinance AED 2.63 billion of liabilities and to extend Tabreed a new AED 150 million revolving credit facility.

The approved refinancing will convert Tabreed’s existing short-term bilateral and syndicated bank debt facilities into a consolidated facility with an extended tenor and lower total cost of borrowing, giving Tabreed long-term flexibility to deliver its business plan.

Tabreed has also secured an additional AED 400 million in short-term financing from Mubadala Development Company, in the form of an amendment to the current AED 1.3 billion bridge loan. This bridge loan will provide

“Tabreed’s wholly-owned subsidiary, Gulf Energy Systems, was the biggest contributor to the results reflecting completion of several projects and progress on others including Sowwah Island”

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Tabreed with funding while the company completes its recapitalisation programme.

“Today’s [February 10] announcement is significant not only because of the strong fullyear unaudited results for 2010, but also because the approval of terms of the refinancing by our bank lenders is a decisive step towards the successful recapitalisation of Tabreed. The board and management of Tabreed are pleased to have reached this significant milestone and the company continues to work hard with all stakeholders to close the recapitalisation programme,” Tabreed’s managing director Khaled Al Qubaisi said.

Sector performance

Last year, 13 plants and two plant expansions came online adding 155,800 of gross capacity and bringing Tabreed’s gross total installed cooling capacity to 541,525 TR across 49 plants.

Tabreed’s core business of chilled water produced revenues of AED 753.3 million, an increase of 73% when compared to AED 435 million in the same period in 2009. Gross profit increased to AED 320.6 million from AED 165.8 million in the same period the year before.

“The management and staff improved operational performance by refocusing on the core chilled water business. This has resulted in improved overall profitability and has positioned the company for growth given the region’s demand for cooling infrastructure,” said Tabreed’s CEO Sujit Parhar.

The company’s contracting segment recorded revenues of AED 132.3 million, a decrease of 26% when compared to AED 178.2 million over the same period in 2009, with gross profit of AED 31.1 million compared to AED 23.1 million in the 12 months of the

previous year. The increase in gross profit was due to less uncertainty around costs to complete as projects reached completion. Tabreed’s wholly-owned subsidiary, Gulf Energy Systems, was the biggest contributor to the results reflecting completion of several projects and progress on others including Sowwah Island.

Meanwhile, Tabreed’s manufacturing segment reported revenues of AED 95.9 million, a decrease of 34% when compared to AED 145.3 million in the same period in 2009, while gross profit fell to AED 28.2 million compared to AED 45.5 million in the same period of 2009.

This decline was attributed to reducing order books and an increase in competition at Tabreed’s 60%-owned subsidiary, Emirates Pre-insulated Pipes Industries.

Tabreed’s services segment, involved in the design and supervision of building electrical and mechanical works, reported revenues of AED 76.3 million, a decrease of 9% compared to AED 83.7 million in the same period in 2009, while gross profit decreased to AED 48.4 million compared to AED 51.6 million in 2009.

Financial highlights, 2010 •

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•

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Total revenue increased by 31% to AED 1023.7 million, compared to AED 783 million in the same period in 2009 Gross profit increased by 53% to AED 426.4 million, compared to AED 278.1 million in the same period in 2009 Net profit, excluding the non-cash impairment declared for 2009, increased by 147% to AED 146.3 million, compared to AED 59.2 million in the same period in 2009 Chilled water revenue for the period was AED 753.3 million, a 73% increase over the same period in 2009 Basic and diluted earnings per share were AED 0.15, compared to AED (1.22) in the same period in 2009

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ESTIMATING: Pricing libraries, Take-off, Indirect costs, Free-format worksheets. Sub-contractor enquiry, comparison and award, Alternative Tendering, Mark-up, Production, manhour and wastage allowances and analysis, Reporting, Integrate the Estimate with the Program, Immediate forecast cash flow, Tender Finalisation

VALUATIONS: Job Modelling, Sub-contract control and payment, Monthly valuations, Analytical variations pricing, Allowable vs Cost reconciliation, Engineering information, Cost to complete by cost rate resources and cost worksheets, External Cost import for cost vs allowable reconciliation and cost at completion FORECASTING: Integrate the Bill of Quantities with the Program, Forecast the bill and resources, Summarise into Project Codes ( With, What & Where), Forecast summary cost codes ( When), Base forecast, Monthly allowable, Collect costs, Forecast allowable and costs PLANNING: Critical path planning, Resourcing, Organising, Progress, Information schedules, Integrate schedule with the Estimate, Time/ location CASH FLOW: Payments, Receipts, Nett Present Value, Currencies and exchange rates, Integration with the Bill and Program

report | MIDDLE EAST PROTESTS

RIGHT: Bahrain is one of many Middle East countries affected by the protests.

BELOW: Protests in Egypt began in January.

Shifting foundations After a month of political protests, resignations and revolutions across the Middle East, real estate services company CB Richard Ellis analyses the unfolding situation in Bahrain

S

ince unrest erupted in Tunisia at the end of 2010, a domino effect has spread across the Middle East and North Africa, amplifying the weekly protests predominantly held in Bahrain’s Shia villages over the last decade.

As the situation developed in Tunisia and Egypt, demonstrations in the Gulf state of Bahrain escalated; to date seven protestors have died in clashes with security forces. The country’s image has swung 180 degrees, placing the Kingdom alongside troubled hotspots such as Tunisia, Egypt, Yemen and Libya.

Anti-government protests began on February 14, with an estimated 500 people taking to the streets. On February 17 a government clampdown on protestors resulted in four deaths,

Protests in Amman, Jordan, resulted in a new government cabinet.

20 | www.thebigprojectme.com

prompting duel demands to remove the royal family and install a constitutional monarchy.

The ongoing protests have generally been focused on the need for more employment, higher wages, adequate housing and equal opportunities and are fed by a perception among the Shia majority, that the Sunni royal family is not acting in the best interests of the population. The political shift of the recent protest movement is largely the result of the domino effect, which has swept the region and has been more focused on deeprooted political change.

Only last year, Bahrain was ranked third in a “best expat experience” poll conducted

by HSBC. Yet, as in other Arab countries experiencing unrest, the protests are now beginning to impact on the economy.

On February 23, 2011, Moody’s Investors Service placed Bahrain’s A3 Government bond ratings on review for possible downgrade. The rating action was motivated by Moody’s concern that the ongoing political turmoil in Bahrain has sharpened fiscal and broader economic downside risks. The review will focus on the degree to which political risk has increased and how significantly the credit fundamentals of Bahrain are threatened.

The hospitality and leisure industries are already affected after the Formula 1 was “called off”.

Other sectors, citizens and investors are forced to adopt a wait and see policy as the

Crown Prince attempts to establish a national dialogue with opposition groups.

According to other media reports, Atkins instructed its 170 Bahrain-based employees to work from home on three occassions at the end of last month, as did design and engineering consultancy Scott Wilson.

The demands printed in Bahraini state media include: •

•

• •

•

•

•

The release of all political prisoners and an end to court proceedings against them An immediate, impartial and independent investigation into the seven protesters’ deaths Objectivity and neutrality in the official (state) media The resignation of the government and formation of an interim government The drawing up of a contractual constitution by an elected constitutional assembly, paving the way for a constitutional monarchy and elected government Amendments to the electoral system to “ensure just and fair representation of all political and societal components” The leadership should provide guarantees that any agreements will be honoured

report | MIDDLE EAST PROTESTS

The situation at a glance TUNISIA In December 2010, a street vendor in the town of Sidi Bouzid set himself on fi re to protest humiliation infl icted on him by a municipal offi cial. His actions sparked a revolt against Ben Ali who fl ed a month later, after 23 years in power. Further protests demand the resignation of current Prime Minister Mohamed Ghannouchi and an end to the actions of Libyan forces.

Look out for The Big Project’s Market Explorer special next month, examining the impact of the political unrest on the region’s construction industry.

22 | www.thebigprojectme.com

EGYPT At the end of January activists called for an uprising; seven days later Mubarak announced that would not run for re-election but would not step down. After further protests, Mubarak announced his resignation and the handover of power to the military on February 11.

LIBYA Ongoing protests have been held in a number of towns and “minor clashes” were reported in Tripoli. More than 100 people are reported to have been killed and internet services have been cut, making reporting and business diffi cult. Many Libyans have fl ed to Tunisia.

SAUDI ARABIA Although no protests took place in February, leading academics are reported to be calling for “sweeping reforms” in relation to King Abdullah’s powers. Social media websites are calling. for a rally on March 11.

OMAN Protestors demand greater transparency in Sultan Qaboos bin Said’s cabinet. To date, six cabinet members have been replaced and the minimum wage has increased by more than 40%. Riots have mainly been confi ned to the town of Sohar.

YEMEN The largest pro democracy rally in recent history, 30,000 reportedly demonstrated in Sana’a; other small yet violent protests have taken place across the country. Protestors demand political reform and better living conditions.

www.thebigprojectme.com | 23

report | MIDDLE EAST PROTESTS

JORDAN Up to 5000 protestors gathered in Amman; in response King Abdullah II sacked Prime Minister Samir Rifai. A new cabinet was sworn in on February 10, tasked with promoting “practical, swift and tangible steps to launch a real political reform process”.

ON SITE | BURJSIDE BOULEVARD

Room with a view The Big Project takes a tour of Damac’s 49-storey Burjside Boulevard development, under construction in Downtown Dubai

S Damac Projects SVP John McNamara.

“Due to the slenderness of the building and the sway we had to do more than the usual windtunnel modelling” 24 | www.thebigprojectme.com

ince the concept was delivered in 2007, progress on Damac’s Burjside Boulevard has been rapid, with construction beginning in March 2010 and interior fit-outs due to begin early 2012.

On Damac’s first serviced apartments, the developer is responsible for both the frame and fixtures, fittings and equipment (FFE).

“During the construction period we are keen to get the building pushed on as quickly as possible. There is a committed programme but we are pushing to work ahead,” explains senior vice president of projects John McNamara.

Speaking onsite during the casting of the first residential floor, McNamara details how the project has evolved since the initial design phase; from moving the outdoor pool to offer “exclusive” views of the Burj Khalifa, to eliminating the building’s damper.

“Due to the slenderness of the building and

the sway, we had to do more than the usual wind-tunnel modelling. We worked with an Australian company, Windtech, which produced a study concluding it was possible to eliminate the damper, making the design much more efficient. We wouldn’t usually go to that extent and it’s a process that takes time.”

One element which exceeded timescale expectations was laying the slabs; reducing the cycle from 28 to eight days. McNamara credits the speed of the phase to additional resources, double shifting and specialist formwork.

“We double shifted the labourers as it coincided with the hottest months, but because there are no neighbouring buildings we were able to use table formwork for the slabs and jump formwork for the core wall.”

Designed by German architect Koschany & Zimmer, enabling works; site mobilisation, fencing, excavation, shoring and piling, were

News

XXXXXXXX ON SITE | BURJSIDE | XXXXXXXXXX BOULEVARD

351 Number of apartments in the project

Damac’s Burjside Boulevard tower is the developer’s first serviced apartments project. Damac will be responsible for the frame and interior fit outs, with construction due for completion in 2012.

short-term residents, who can buy or lease Burjside’s apartments.

Location, location

completed by Norwegian firm Stromek. An AED 200 million contract was awarded to Sun Engineering; the project’s main contractors.

Five-star touch

Upon completion, the 49-storey building will feature 39 residential storeys; a dedicated leisure floor with pool, restaurant, lounge and views of the Burj Khalifa. Residents in the 351, five-star furnished apartments, will also have fullyequipped kitchens and access to all the standard hotel services.

“Bridging the divide between high-end residential apartments and luxury five-star hotels”, the development is aimed at Dubai’s transient population; long-term business travellers and

As the developer’s first serviced apartment project, Burjside Boulevard marks a diversification for Damac’s Dubai-based operations. From its portfolio of “luxury”, residential, leisure and commercial developments, to one which combines elements of each.

“Burjside Boulevard fits with Damac’s current business plans, because it’s a very different property model. We are giving our investors more choice over their investment,;they can buy an apartment to live in, buy it as a rental investment or live in it some of the time and rent it out for the rest,” says Niall McLoughlin, senior vice president, Damac Properties.

While it is no secret the market has experienced huge turbulence since the project was first initiated, Damac maintains that demand for such multi-purpose facilities remains strong, particularly among the emirate’s many business travellers.

Explaining that the development offers “important investment choices” McLaughlin also says it provides an alternative avenue of investment for future clients.

CONSTRUCTION TRIVIA Total built-up area: 686,242ft² Average formwork cycle: eight days Time takeN to lay slabs: eight days

Project partners Architect: Koschany and Zimmer Architekten Main contractor: Sun Engineering Consultant: ZAS PSE Engineering Est. Piling: Stromlek Concrete: Emirates Beton Steel: Attieh Steel, Dubai Construction software: E Builder Wind-tunnel testing: Windtech

www.thebigprojectme.com | 25

ON SITE | BURJSIDE BOULEVARD

“Because there are no neighbouring buildings we were able to use table formwork for the slabs and jump formwork for the core wall”

168.4m Height of the Burjside Boulevard

ABOVE: Construction began in 2010 and fit outs are due to begin next year.

“Every project in Dubai has been impacted by the global downturn, however, there is always demand for quality developments in premium areas. Prices in the Downtown district have been very resilient, mostly because demand has remained robust,” he says, adding that the company has not faced the same funding issues as other developers.

The area is also one of only a few in Dubai for which developers can still secure finance; other areas banks consider low risk include Dubai International Financial Centre (DIFC), Business Bay and Dubai Marina.

Winning contracts

Naming 2009 the “year of construction”, Damac won contracts to the value of US $1 billion. Currently the developer has more than 12,000 units across the Middle East and North Africa at various stages of construction, with seven in Dubai alone due for handover in 2011.

Other projects include Executive Heights in TECOM, Dubai; Lake View and Lake Terrace, both Jumeirah Lake Towers, Dubai, and the recently announced Damac Tower, Lebanon; to be developed in association with Versace.

“We have awarded contracts worth $1 billion, including 15 in Dubai, two in Abu Dhabi and one main contract in Saudi Arabia,” McLaughlin adds.

26 | www.thebigprojectme.com

While no completion date has been set, the schedule for Burjside Boulevard will see the frame completed in 2011, with FFE beginning next year.

A phased occupation will follow to “allow the project to get up and running”.

With so many luxury developments in Dubai failing to sell or folding before completion, McLaughlin credits a combination of originality and reputation as the USPs that will secure Burjside’s success in what has been described as a saturated market.

Maintaining that Dubai is “the most favoured location” for multinational corporations, he adds that demand does, and will continue, to exist “Dubai’s future is assured,” comments McLaughlin, adding: “It’s at the gateway to Africa, Europe, Asia and the CIS States, and has secured its position as a regional finance, trade and logistics hub, and not only that, but it offers a unique and idyllic lifestyle.”

“We are aiming to do something very different at Burjside Boulevard; we want to create the type of home our customers have always dreamed of. Everything from the decor, to superior-quality linen and top-of-the-range appliances will be incorporated.”

“There is no better site that hasn’t already been developed,” says McLaughlin.

The King Abdullah Financial District, Saudi Arabia

Patrick Moran, Project Manager and Nasr-El Din Ahmed, Site Manager El Seif Engineering, Riyadh: “PERI ACS was our first choice for the multi-storey building cores in order to have a reliable solution to realise this critical area.

And for the smaller cores, RCS provided an absolutely flexible and very economical climbing formwork system.�

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ADVERTORIAL

BYRNE EQUIPMENT RENTAL

Byrne Equipment Rental, the largest diverse supplier of plant and equipment in the region, is joining forces with Algeco, the largest provider of portable rental buildings in the world Byrne Equipment Rental is to offer Algeco’s products on an exclusive basis for rental purposes in the UAE. Byrne has recently added Algeco’s buildings to its portfolio in order to further broaden the firm’s appeal and follow its “all your equipment rental solutions under one roof” vision.

Equipment supplied includes The Batex and the 4000 KD series.

Byrne will initially be offering two groups of Algeco products:

The Batex range of quick erect warehousing solutions and The 4000 KD series of structures for use as offices, accommodation, medical facilities, recreation areas, schools etc.

The 4000KD structures are built of high quality and innovative materials, with flexible layouts enabling their use in multipurpose structures up to two storeys in height, while paying particular attention to safety and ergonomic needs. The storage warehouse option is as strong as a traditional building; anti-seismic and anti-intrusion. The frame and roof are made of galvanized steel, which requires no maintenance and is resistant to extreme weather conditions.

Graeme Clack, CEO of Byrne said: “We are delighted to represent a company with the pedigree of Algeco, its quality is second to none and the firm’s products, developed via practical applications all over the world, are ideally suited to the fast moving GCC market. They are truly a world leader in their field and the products are outstanding.”

Who are Algeco:

Algeco serves more than 31,000 customers in the areas of construction and infrastructure, industry, services and administration offering space rental solutions throughout 22 European countries, including Belgium, Czech Republic, Estonia, Finland, France, Germany, Italy, Lithuania, Luxembourg, the Netherlands,

CONTACTS Further information and contacts: For additional information about Algeco and purchasing Algeco products please call UAE +97143713348.

For additional information about Byrne and renting of Algeco units please contact your local Byrne office, details are: Toll Free: 800 4134 Dubai: +971 4 3814100 Abu Dhabi: +971 2 6029411

Poland, Portugal, Romania, Russia, Slovakia, Spain, Sweden and the United Kingdom, and now the Middle East. Algeco’s fleet of more than 300,000 modular space and secure storage units is leased through a network of more than 100 locations making it the world leader in the space rental sector.

Who is Byrne:

Byrne provides equipment rental solutions to many industries including the construction, oil and gas, marine and the leisure and tourism industries, to name a few. Its plant and equipment fleet exceeds 7500 items which incorporates everything from air compressors, generators, forklifts,

loadalls, lighting towers and welding machines to temporary portable buildings including toilet blocks, offices, storage and accommodation units, to meet all rental requirements.

The level of customer service provided is second to none, with one point of contact for all required rental needs, and a genuine 24 hour call centre ensuring a backup service that remains unmatched in the market today. The group employs just under 800 people and it’s broken up into seven companies across four countries – Oman, Qatar, Saudi Arabia and the UAE – there are 11 operational depots and within those there are branches and specialist divisions.

www.thebigprojectme.com | 29

XXXXXXXX EVENT INSIDER | XXXXXXXXXX | SAUDI CONSTRUCTION

EVENT INSIDER: SAUDI CONSTRUCTION

Saudi Arabia’s largest industry event ‘Saudi Construction’ debuts on March 21-25 in Riyadh. The Big Project takes a peek behind the scenes, including a look at opportunities in KSA’s lucrative development market

T

ABOVE: The Kempinsky hotel, Jeddah.

”We’re expecting to have a large number of exhibitors showcasing a wide variety of leading brands“

he Saudi Construction Show is taking place from March 21-25 in Riyadh and is expected to be the largest construction machinery, equipment, building material and vehicles exhibition the Kingdom has hosted.

The show will provide a lucrative platform for worldwide contractors and suppliers to unite, according to show organiser, CPI. Furthermore, visitors and exhibitors will have the opportunity to discuss deals and there will also be opportunities for contractors to view and test the latest equipment available on the market.

“We’re expecting to have a large number of exhibitors each showcasing a wide variety of leading brands in the construction machinery, equipment and vehicle sector,” says CPI sales director Raz Islam.

Exhibitors include Medco, Al Rassam, GTE, Abahasain, Kanoo Group, AAA and Zahid Tractor, among many more.

Also exhibiting is Saudi Arabia-based Rajhi Steel, which has a 120m² stand at the event. The firm produces high-quality steel that is less vulnerable to corrosion and lasts longer than some alternatives due to the unique way it is manufactured, according to the company.

When asked whether customers were looking at quality, not just price, company representative Faisal Binadean says there is a mix of buyer types — the first are predominantly interested

in brand and service, and a second who simply look at price.

One of Rajhi Steel’s main objectives at the show is to meet new customers and “keep in touch” with existing ones in the Saudi Arabian and wider GCC market.

“The stand is made from steel and will host ideas about the material and how it can be used more efficiently. This is a good chance for us to be hospitable and to provide a chance for people to meet us,” says Binadean.

Binadean adds that the firm is positive about the show’s prospects and expects to make a number of business deals.

“There are a lot of opportunities and projects in Saudi Arabia. The government budget for 2011 has allocated billions and billions of dollars to be spent on construction so this will move the economy forward,” he explains.

While he acknowledges the KSA market is an “open and competitive one”, Binadean highlights that is also a “huge” market.

Right time and place

Last month, the Ministry of Industry gave its support to the inaugural Saudi Construction Show, against a backdrop of HH King Abdullah’s multi-billion dollar cash boost in the housing and infrastructure projects sector.

Riyadh alone has seen its population grow fivefold since 1960. The city’s success, according

www.thebigprojectme.com | 31

EVENT INSIDER | SAUDI CONSTRUCTION

ABOVE: The show includes live equipment demos.

”The infrastructure segment of the market has developed healthily over the last two years, with a major redesign of Riyadh’s internal road and transport system”

ABOVE: The Wadi Al Aslaa development at King Abdullah Economic City.

to the Riyadh Development Authority, is due a combination of its geography and strategic international status.

In an interview with The Big Project at the end of last year, formwork company RMD Kwikform regional manager Peter Gibson said: “There is a focus on infrastructure in the east of Saudi Arabia and there are a few mega projects in the West, but the central region seems to have covered the whole spectrum of projects.”

“The infrastructure segment of the market has developed healthily over the last two years, with a major redesign of Riyadh’s internal road and transport system; mega projects in the infrastructure market show the commitment to upgrading the Kingdom as a whole.”

In addition to the housing requirements, the city must meet the major schemes currently underway, which will contribute to an additional 1.3 million square metres of office space by 2015 and 2.9 million metres squared of retail space to be delivered by 2014.

Outside Riyadh

Meanwhile, KSA’s second city, Jeddah, has expanded a staggering 1000-fold over the past 60 years.

Last October, Ziad Aazam, director of planning and strategic studes for the Jeddah Development and Urban Regeneration Company (JDURC) told The Big Project that the city plays an important role in providing a

32 | www.thebigprojectme.com

The strategy committed a 15.7% share of the $384 billion budget for transport developments.

In Jeddah, a 15-month review is underway.

Contractors and suppliers looking to grow outside Jeddah or Riyadh, also have access to diverse developments in Dammam.

The primary industries in Dammam are oil, manufacturing and shipping, with activity concentrated in industrial zones away from residential and recreational developments.

The significance of the zones is outlined in the National Industrial Development Strategy, a blueprint for economic diversity on a national and international scale.

The city’s second industry is tourism; making the most of the area’s geography and heritage are a number of waterfront developments, recreational spaces and cultural buildings.

Unlike the religious tourism seen in other provinces, Dammam’s reputation as a holiday destination is purely about relaxation and culture, extending to the country’s largely expatriate population.

Among the ongoing waterfront developments is the King Abdullah Civic Centre and Dammam Corniche.

In fact, there are a number of communities and tourist attractions currently under construction, with private developments spearheaded by the likes of Emaar and Injaz.

With so many project opportunities, it is no wonder event organisers are looking to bring contractors, suppliers and manufacturers together in the Kingdom. At the end of last month, DMG brought The Big 5 to KSA. Look out for April issue of The Big Project for show highlights, including visitor and exhibitor comments.

Fast facts ABOVE: The Al Jawhara tower, Jeddah.

place for higher education and knowledge generation, health services, cultural exchange, governmental services and recreational, hospitality and industrial provisions.

In addition to plans for a myriad of skyscrapers and mega projects, Jeddah updated its infrastructure plans in a five-year strategy.

As well as airport expansion, plans include substations, solar-power plants, railways, roads and ongoing projects at Jeddah Islamic Seaport, which will have its capacity doubled by 2020.

Location: Riyadh, KSA. Al Khurais Road, opposite Zahid Tractor Date: March 21-25 Time: 4pm-10pm daily Categories: Construction machinery, equipment, building materials, machines and vehicles Special features: Live equipment demos, one of the region’s largest formwork and scaffolding displays Website: www.saudiconstructionshow.com

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Top 10 GCC infrastructure projects The Big Project looks at some of the most lucrative infrastructure projects underway in 2011

34 | www.thebigprojectme.com

Haramain railway, KSA

Last month, contracts were signed for the construction of four stations along the Al-Haramain High-Speed Railway project route, according to the minister of transport Dr Jubarah Bin Eid Al-Suraisiry, who is also chairman of the board of directors for the Saudi Railway Organisation.

Al-Suraisiry said the construction of the four stations, worth SR 9.39 billion, will be undertaken in 30 months from the start of the project’s implementation.

The signing marks the second part of the first stage of the project. The value of the first contract is SR 3.2 billion, the second is SR 1.6 billion, the third is worth SR 2.9 billion and the last will amount to SR 1.8 billion, representing opportunities for suppliers and contractors.

The first stage of the project, which included civil engineering works, such as construction of bridges and excavation works, was carried out at a value of SR 6.8 billion.

Al-Suraisiry added that the stations had been designed to the latest international standards. The designs, he said, bear significant characteristics of the Islamic architecture of the two holy cities — Makkah and Madina — and are inspired by the historical and cultural environment of Jeddah and Rabigh.

The stations include the main building, arrival and departure terminals, mosque with a capacity of 600 worshippers, a Civil Defence Centre, heliports, train and passenger platforms, long and short-term car-parking lots, shops, restaurants and cafes.

A joint venture between local Saudi Bin Ladin Group and Turkey’s Yapi Merkezi won the contract to build passenger stations in Medina and Makkah.

Local Saudi Oger won the contract to build stations in Jeddah and the King Abdullah Economic City. The EPC contract for phase two is expected to be awarded this month, with phase one due to be completed in April.

www.thebigprojectme.com | 35

COVER | INFRASTRUCTURE

LEFT: Contractors constructing one of ADEC’s phase one schools in Abu Dhabi.

COVER | INFRASTRUCTURE

”KBR will assist with the delivery of 20 expressway projects over five years, part of Qatar’s US $20 billion roads-building programme”

Qatar roads building

In February, the Qatar Public Works Authority (Ashghal) awarded a contract to US-based construction and engineering firm KBR to manage the design and construction of 30 major roads in Doha.

KBR will assist with the delivery of 20 expressway projects over five years, part of Qatar’s US $20 billion roads-building programme aimed at improving traffic flow and reducing congestion, travel times and environmental impacts.

The contract builds on KBR’s portfolio of programme management services for infrastructure projects in the Gulf, according to KBR president infrastructure and minerals Colin Elliott.

In 2004, the international contractor was appointed to oversee project management for the first stage of Dubai’s Palm Jumeirah.

The news marks one of a number of new tenders for road improvement works in and around the capital, Doha, which have been recently launched by Ashghal.

Last month, Qatar Building Company was awarded a $12 million contract to design and build a traffic diversion for Wakra — Ras Abu Abboud Road Intersection.

In June 2010, Ashghal awarded a main contract for the construction of the seventh phase of Doha Highway to Midmac Contracting and Turkish firm Yuksel Insaat in a JV agreement; a three-year QR 1.59 billion contract.

Qatar Exhibition Centre and surrounding infrastructure.

36 | www.thebigprojectme.com

Abu Dhabi schools

The Abu Dhabi Future Schools Programme was launched in December 2009 by Abu Dhabi Education Authority in partnership with Musanada to supply the growing demand for schools in the capital.

Phase one involves the construction of 18 new institutions across the emirate, the first of more than 100 in the pipeline.

These projects include seven Cycle One (grades kindergarten to five) schools, seven combined Cycle Two schools (grades six to 12), two Cycle Three schools (grades 10 to 12) and two kindergarten to 12th grade schools.

Also as part of the transformation of Abu Dhabi’s education system, the tender was recently launched for the development of Abu Dhabi University Education Park by the client, Mubadala Development Company. The project will comprise research laboratories,

Kuwait power projects

business incubators, offices, retail services and residential units.

The scheme is an extension of the current Abu Dhabi University campus and is currently under design. No expected delivery schedule has been revealed yet, but US-based Sasaki Associates has been appointed master planner and architect.

A rendering of one of the ADEC phase one schools.

At the end of February, the Kuwait Ministry of Electricity and Water signed five contracts totalling $1.5 billion to increase the country’s power and water reserves.

The contracts signed include the second-phase conversion of the Southern Al-Zour power plant into the combined cycle system through installing additional gas turbines, the building and repair of five water reservoirs at a capacity of 80 million gallons each.

The reservoir project is expected to cost $170 million and will be delivered within three years.

A second contract will cover the repair of pipelines for drinking water, extending from Abdullah Al-Jaded Port to the western Finats area, while another contract covers the development of 220 water stations throughout the state at an installation cost of $25 million.

The final contract is related to a KD 7 million project to extend 300KV electricity cables.

Kuwait came close to pushing its power capacity to its limits last summer, with record highs placing extra pressure on power plants across the country, according to local media reports.

UAE airports

News

Infrastructure developments are rife in Qatar.

Expansion of Abu Dhabi Airport is currently underway.

The Airport Council International (ACI) and the International Air Transportation Association (IATA), predict that the sheer volume of current development activities in the region will see passenger growth rates continue for the next decade.

Based on research by the two international bodies, airports in the Middle East are expected to handle more than 400 million passengers by the year 2020.

In the UAE, allocated investments for the development of Al Maktoum International Airport in Dubai have been estimated at around $8 billion.

The airport has a blueprint to eventually handle 160 million passengers annually; however it currently caters to a limited number of cargo airlines and opened to receive helicopter and passenger aircraft with no more than 60 people on board just last month.

Meanwhile, Dubai International Airport, the existing airport in central Dubai, is building Concourse 3 that will expand annual capacity to 75 million passengers from 60 million at a cost of up to $1.17 billion.

In the capital, investment for Abu Dhabi International Airport midfield is forecast to touch $6.8 billion.

The Kuwait cityscape.

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”Kuwait came close to pushing its power capacity to its limits last summer, with record highs placing extra pressure on power plants”

”Other features of the new airport will include tunnels, corridors, train stations and communications systems” King Abdulaziz International Airport Expansion (phase one)

Design and construction of the new main passenger terminal at King Abdulaziz International Airport in Jeddah commenced last month by main contractor Saudi Bin Ladin Group.

When completed, the airport will be equipped to capacitate an additional 30 million passengers per year, with 42 departure gates connected to 72 gangways.

The client, the General Authority of Civil Aviation (GACA), has set a budget of $7.2 billion with delivery scheduled for 2014. Design consultant is Paris-based design consultant Aeroports de Paris and locally-based Dar Al Handasah (Shair & Partners) is on board as project manager.

The first phase, worth $4 billion, includes construction of a 670,000m³ terminal featuring 94 aircraft bays. The second part, worth $3.2 billion, involves construction of a 133m high airport control tower, dubbed the world’s tallest, alongside an 8200-capactity car park, three power generation and cooling centres, data administration centres, and infrastructure and road networks.

Other features of the new airport will include tunnels, corridors, train stations and communications systems; new taxiways, aprons, roads and support facilities.

www.thebigprojectme.com | 37

COVER | INFRASTRUCTURE

“Spanning a huge area of 365km², Industrial Zone B makes up stage three of the Khalifa Port and Industrial Zone project”

Khalifa Port and Industrial Zone

Located in Taweelah, between Dubai and Abu Dhabi, the 420km² Khalifa Port and Industrial Zone is a project four times the size of Abu Dhabi island.

Partially under construction, it is expected to become one of the world’s biggest industrial zones, with its own dedicated port.

There are three key elements to the project: Khalifa Port and Industrial Zone A, which are both under construction and expected to open in quarter four of 2012, and lastly, Industrial Zone B, on which construction has not yet commenced.

The Khalifa Port occupies an area of 3.4km, including onshore and offshore segments. Stage One A of the project, which comprises the offshore quay area, is 2.7km² or the size of nearly 400 football pitches.

Industrial Zone A covers 51km² and is home to the only current anchor tenant Emirates Aluminium (EMAL). Other industries targeted according to sector include: petrochemicals, steel, pharmaceuticals, life sciences, chemicals, biotechnology, food and beverage, metals and logistics. The client, Abu Dhabi Ports Company, expects the zone to be fully occupied by 2018.

Panning a huge area of 365km², Industrial Zone B makes up stage three of the project, comprising among other components: housing, high-technology, light manufacturing and logistics industries.

Infrastructure works are expected to start in 2013.

One of the latest new tenders to be launched for the project was an EPC contract to build a seamless copper pipe mill, with a capacity of 30,000 to 40,000 tons a year of copper tube production.

The latest update by Middle East tenders revealed that Germany’s SMS Group and Italy’s Danieli were the two front runners for the supplier contract.

Khalifa Port located half way between Dubai and Abu Dhabi.

38 | www.thebigprojectme.com

Hassyan IPP, Dubai

Initially planned as a power and desalination plant, the client Dubai Electricity and Water Authority cancelled the desalination component at the beginning of this year and will now develop the project as an IPP only.

A tender for the main construction contract is expected to be issued by the end of March and a contract will be signed with private developers in quarter two.

The project is expected to be completed in the third quarter of 2014 and comprises gas turbines associated with heat-recovery steam generators, auxiliary boilers, back-pressure steam turbines and all associated works.

A number of power projects are underway in the UAE.

Raz al-Zour Power and Desalination Plant, Saudi Arabia

The Raz al-Zour plant will be located 75km north-west of the industrial city of Jubail in Saudi Arabia. The desalination plant will use thermal desalination technology to generate at least 70% of the water it produces.

It can also use reverse-osmosis technology to gereate up to 30% of its water.

The client, Saline Water Conversion Corporation (SWCC), expects the plant to produce commercial power by December 1, 2012, with progress on track.

The project will begin supplying the Saudi Arabian Mining Company (Maaden) with 350MW of power. The plants are intended for full operation by December 31, 2013. Saudi Aramco will supply 500 million ft³ a day of

natural gas as feedstock for the plant. It will also provide diesel oil or Arabian extra-light crude oil as a back up to the natural gas.

Furthermore, the plant will be connected to the Saudi Electricity Company’s grid at 380KV using a new substation at Raz al-Zour.

Saudi Electricity is expected take 1050MW of the plant’s power output, while the client will take 220 million gallons a day of desalinated water.

Last month, German engineering group Siemens was awarded a contract worth more than $1 billion for the supply of components to the combined-cycle power plant and associated seawater desalination facility. Siemens will supply 12 gas turbines, 10 heat-recovery steam generators, five steam turbines along with associated auxiliary and ancillary systems.

GCC Railway project

The pan-GCC railway transportation system will run along the coast of the Arab Gulf, proposed to end in Muscat, Oman and Kuwait, passing through Saudi Arabia and the UAE. There will also be an option for a route from Saudi Arabia to Manama, Bahrain, and a 110km track from Saudi Arabia to Doha in Qatar. The full proposed network also includes a line from Turkey, all the way south along the Red Sea to Yemen, passing through Syria, Lebanon, Jordan and Saudi Arabia.

A joint venture between Kuwait’s Global Investment House and Saudi Arabia-based Parsons Brinckerhoff completed a basic preliminary study.

According to a Middle East Tenders update on January 4, 2011, the client Cooperation Council for Arab States of Gulf Secretariat General is expected to commence a study to form the GCC Rail Authority by the end of March once it has gained approval from the six member states.

The new body will oversee development of this project.

World Bank is on board as financial consultant, alongside specialist consultancy firms: Canada-based Canarail Consultants, France-based Systra and locally-based Khatib & Alami Consolidated Engineering Company.

The plant is one of many power projects in KSA.

GCC RAIL: KSA TO QATAR

110km The length of the gcc rail track between saudi arabia and qatar

Raz al-zour plant

2012 plant is expected to produce commercial power by 2012

Khalifa Port

420km2 total area of the port and industrial zone; four times the size of abu Dhabi island

www.thebigprojectme.com | 39

COVER | INFRASTRUCTURE

”The Raz al-Zour Power and Desalination plant will begin supplying the Saudi Arabian Mining Company (Maaden) with 350MW of power”

PROJECT UPDATE | ABU DHABI

“More than 1000 labourers worked around the clock to complete the structural work in record time”

Brighton College Abu Dhabi This month we look at progress on one of Abu Dhabi’s new educational institutes, Brighton College Abu Dhabi, on which structural works were completed last month

S

tructural works on Brighton College Abu Dhabi were completed last month, according to developer Bloom Properties, the real estate arm of National Holding.

Up to 15,000m³ of concrete have been poured into the school structure and more than 2500 tons of steel reinforcements have been utilised for the 34,000m² project, with 1000-plus labourers reported to have “worked around the clock” to complete the structural work in record time.

“Bloom Properties is committed to delivering on its promise of completing the project on schedule. Our joint efforts with the contractors, mandated to comply with our stringent quality standards, are beginning to bear fruit. The dedication of all involved in the project is truly commendable and has resulted in the completion of structural works earlier than forecast,” Bloom Education general manager

Hani Raydan said in a statement. Admissions for the 2011-2012 academic year have already commenced at Brighton College Abu Dhabi classes from pre-reception to grade nine.

The Brighton College campus at Bloom Gardens will offer world-class education in the British curriculum. Its differentiating factor will include a creative blend of Arabic and Islamic Studies in compliance with Abu Dhabi Education Council.

The campus is also designed to provide dedicated centres of excellence in academic, visual and performing arts, and sporting activities.

The three areas will be linked by spaces for outdoor learning and social interaction.

Bloom is the property and lifestyle development arm of National Holding, with headquarters in Abu Dhabi, UAE. The company has been in operation since 1999 with an established portfolio of completed projects.

The first development launched for sale by Bloom is its residential development, Bloom Gardens, which is located on the Eastern Corniche in Abu Dhabi. Bloom Education partnered with Brighton College to bring the school to the region.

Construction trivia •

Up to 15,000m³ of concrete have been poured into the school structure

•

More than 2500 tons of steel reinforcements have been utilised

•

Project covers 34,000m²

•

Around 1000 labourers were onsite last month

www.thebigprojectme.com | 41

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oman on a mission

oman’s construction industry is predicted to grow at nearly 6% year-on-year with 24 mega-projects planned for muscat alone. Melanie Mingas finds out how the country is planning to rebuild its economy in less than a decade

L

ike other Gulf states, Oman’s development strategy is set out in a series of five-year plans, pioneered by the government.

Since the first five-year plan was launched in 1976, the country has developed economically, socially and physically, with progress particularly linked to a number of petrochemical and industrial mega-projects; collaboratively securing the country’s wealth and increasing GDP 35 times since 1970.

This year marks the first year of the eighth cycle, which will see investment ploughed into establishing a tourism industry that will become the Sultanate’s primary economic driver by 2020.

As a result, the Omani construction industry was valued at US $3.7 billion in 2010, with growth expected to reach an annual rate of 5.8% between 2010 and 2014.

Sectors within the industry, particularly cement production continue to enjoy some of the largest gross margins of all the GCC countries, according to the Oxford Business Group.

One of two staple elements of this escalation will be the emerging tourism sector, as detailed in the 20112016 development strategy. The second, infrastructure developments, will include the creation of six new airports, the dual expansions of Muscat and Salalah Airports, port and power developments and the construction of a coastal railway line.

“In the current cycle there are many infrastructure developments such as roads and, of course, the railway, which will follow 2000km of coastline,” explains Sam

$3.7b The esTimaTed VaLue oF oman’s consTrucTion indusTry in 2010

“there will also be many harbour and port-related development activities along this coastal area, creating gateway cities”

Oliver, UK Trade and Investment Office (UKTI) at the British Embassy, Muscat.

“The government is then planning to select various locations along that line for development, where most of the inhabitable land is connected by the new rail infrastructure. There will also be many harbour and port-related development activities along this coastal area, creating gateway cities.”

Running in tandem with this initiative is Vision 2020; a concept established at the end of the country’s “first phase” of development, in 1995.

Outlining Oman’s goals for phase two of its development, the plan aims to create economic and financial stability; reshaping the role of government and globalising the national economy.

The diversification programme will encourage the youngest generation of the Omani workforce to pioneer development in digital technologies, renewable resources, infrastructure and other areas identified as crucial to development.

Majestic Muscat

arjan weerstand, salalah port .

The most significant of the current development projects will focus on the capital. Titled ‘Majestic Muscat’, 24 mega projects will be undertaken across the city, with a remit to “enhance the quality of life” for residents and visitors alike.

Aiming to develop a “cohesive, inclusive, safe, healthy and vibrant city with opportunity for all”, the projects will include development of the waterfront and

www.thebigprojectme.com | 43

Market explorer | oman

LeFT: The omani government plans to build a 2000km coastal railway network, with ‘gate-way cities’ developed at a number of strategic points. beLow: rendering of a completed project.

Market Explorer | oman

Majestic Muscat project partners •

Sultan Qaboos Boulvard, WS Atkins, Oman

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Seeb Seafront Plaza, Architecture Studio, France

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Al Mawalih Souk Gehl Architects, based in Denmark

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Waterfront Square at Shatti al Qurum, Gehl Architects

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Seeb Waterfront, Parsons International

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Muttrah Business District, Gehl Architects, Denmark

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Al Qurum Festival Square, Gehl Architects, Denmark

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Muttrah Corniche, Gehl Architects, Denmark

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Hawiyat Najim Park, Jenson and Skodvin Architects, Norway

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The Minarate, Lundgaard and Tranberg Architects, Denmark

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Landscaping projects by Atelier Jaqueline Osty Et Associes, based in France

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Al Azaiba, Atelier Jaqueline Osty Et Associes, France

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Naseem Park, Atelier Jaqueline Osty Et Associes, France

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Al Barkat Park, Muscat Municipality, Oman

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Al Khuwair and Activity Hub, Project Architecture, Australia

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Al Hamriyah Terraced Park, Project Architecture, Australia

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Al Jami Street Upgrade, Project Architecture, Australia

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Muscat Plaza, Project Architecture, Australia

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Ruwi Central Business District, Project Architecture, Australia

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Al Amerat Square, Muscat Municipality, Oman

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Wadi al Kabir Park, Project Architecture, Australia

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Al Khuwair Vegetable Market, Snohetta, Norway

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Muttrah Fish Market, Snohetta, based in Norway

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Wadi Adai Pedestrian Bridge, Snohetta, Norway

44 | www.thebigprojectme.com

5.8%

The predicted growth rate in Oman’s construction industry between 2010 and 2014

2020 The deadline has been set to make tourism Oman’s primary economic driver by 2020

ABOVE: Salalah Port as it currently stands. More than 40 parties showed interest in the US $195.6m expansion project contract.

corniche areas (see box-out), in collaboration with a number of prestigious international design firms, such as Denmark-based Gehl Architects, Australia’s Project Architecture and Parson’s International.

“The various strands of this development will be in harmony with the economic, civic and commercial aspirations of the city; providing a new look and feel, while reflecting the country’s values and heritage in a modern setting,” explains Oliver.

Dry wadis will be “transformed into architectural features” including promenades, with old campsites renovated into new residential settlements; featuring a focus on commerce and leisure developments.

In a drastic contrast to similar remits in other Gulf states, the developments in Oman will work to preserve the country’s famous rural landscapes.

“You will not find the jagged edges of chrome and steel, but a relatively unbroken skyline dotted with domes, minarets and occasional landmarks of trade and commerce all blending into an aesthetic whole.

“The project will be a stunning testament to the renaissance of, not just the metropolis, but the country as a whole,” Oliver explains.

Developing infrastructure

Supporting these developments will be a number of infrastructure projects, including the expansion of Salalah Port; with the general cargo quay extended by 1200m.

Currently under evaluation from the Omani government’s tender board, 41 parties showed interest in the tender, with 19 submitting bids for the $195.6 million contract. It was a response that senior manager of project development and implementation, Arjaan Weerstand, describes as “substantial proof of market recovery”.

“The decision to expand specifically this terminal was triggered by the growth of the Salalah Freezone in 2007 and 2008, with the start of the construction of the Salalah Methanol plant and the increase of limestone and other commodities.”

Undergoing an extensive design phase which addressed the needs of all terminal users, the project is Oman’s first public-private partnership (PPP).

Additional projects will see the construction of six new airports across the country and the regeneration of two further airports in Muscat and Salalah.

The Muscat expansion, due for completion in 2014, will increase capacity to 12 million passengers annually; with additional phases increasing this figure to 48 million by 2050.

Runway upgrades will also see the airport able to handle the world’s largest plane.

Both airport contracts were awarded to Cowi and Larsen Architects and Consulting Engineering, with project management run by Airport de Paris Ingenierie.

Extensions at Salalah Airport will increase passenger capacity to one million within three years, up from 258,000 in the first half of 2010.

In addition, six new airports will be constructed in Adam, Haima, Shaleem, Al Duqm, Ras Al Had and Sohar.

Described by the Oxford Business Group as the “most ambitious” of all the projects, Al Duqm will also develop a port and dry dock, refinery and petrochemical complex, power and desalination infrastructure. There will be an industrial area and a free-trade zone complex, as well as tourism and residential projects.

Major contracts to build two 750MW power projects have been awarded to Siemens. Barka 3 and Sohar 2 will generate electricity with surplus power used to generate steam for a turbine.

It is one of a number of key projects which has

ABOVE: CJ Paul, GM for Global Exhibitions and Conferences.

seen a rise in demand for Omani workers.

“Siemens plans to invest in significant resources and manpower in Oman, upon the award of projects,” says Siemens Oman, chief executive officer, Markus Strohmeier.

“For the power plants, we are going to employ Omani nationals to work alongside the Siemens team during the implementation. It is our plan for the Omani colleagues to take on a long-term role during the operation and maintenance phase of these plants,” Strohmeier adds.

Having worked in the country for 35 years, Siemens’ new contracts are supported by further collaborative developments in gas turbine technology, with several consortia.

Commenting on the significance of the Omani market for the company, Stronhmeier adds: “The development of the oil and gas industries, as well as the solid approach Oman has taken in optimising its infrastructure, makes it key to our own growth plans.

“Many of our technologies have been deployed in Oman in the early days and have given Siemens successful business references.

Siemens wants to be a reliable partner in building up the infrastructure in Oman with our global experience and local know-how of customer requirements.”

Destination Oman

In the country’s quest to re-brand itself as a tourism hub, a number of resorts and hotels will be developed, along with a multi-billion dollar convention centre. However, unlike that of its GCC neighbours, Oman’s ambition will see the country building to demand, rather than flooding a newly-created market, and therefore risking oversupply.

Spearheaded by Omran, the tourism development and investment arm of the Omani government, the first completed project was the site for the Second Asian Beach Games Muscat

2010; delivered on budget within 900 days.

Other projects include the Oman Convention and Exhibition Centre, in addition to hotel and resort developments throughout the country.

Omran is responsible for master-planning and development of the projects and the management of a large portfolio of hotels.

“Over recent years, Oman has taken major strides forward in attracting tourists to our many leisure resorts and hotels,” says Omran’s HE Dr Rajiha bint Abdul Ameer bin Ali. “Our strategy has always been to target the business sector too and this investment will provide us with an outstanding venue for conferences and exhibitions,” he adds.

Omran plans to invest $1.8 billion in the 10,000 capacity Oman Convention and Exhibition Centre, located near Seeb.

The centre’s exhibition halls will be ready by mid-2013, while the auditorium and the first of several planned hotels are expected to be completed by the end of 2013.

Summit of ambition

Supporting the construction industry across all sectors, the inaugural Omani Construction Summit was held in Muscat this January.

Deemed the “biggest gathering of industry professionals and leading players,” the four-day event hosted 35 conference speakers, 14 exhibitors and 240 construction professionals.

“The summit represented the biggest gathering in the sultanate of industry professionals and leading industry players that have a prominent role in the implementation of many major projects throughout the sultanate,” comments CJ Paul, general manager of organiser Global Exhibitions and Conferences (GEC).

The summit was jointly delivered by GEC and US-based International Quality and Productivity Centre (IQPC), organiser of the Saudi Urban Transport Conference, Tall Buildings Middle East and Tunnels and underground Construction Middle East, among other events.

Key focus areas during the summit included infrastructure, particularly the Omani National Rail Project; residential and tourism developments and the Salalah Port extension.

“At the Oman construction Summit, many talks focused on the industry picking up again.

The fact is that the Middle East has not been impacted by the crisis, as for instance Europe was,” said Weerstand, who spoke about the Salalah Port expansion at a summit conference.

2011 This year marks the start of the eighth five-year development plan, which will see investment ploughed into the burgeoning tourism industry

“Although no one knows if the crisis is really over there was indeed an optimistic atmosphere at the event,” he adds.

The pace of construction has seen demand for expatriate workers soar; in 2010 it was announced that thousands more would be needed to strengthen the existing 850,000-strong expatriate community and plug a national skills gap, particularly in civil engineering and labour.

Currently, expatriate workers make up nearly 30% of Oman’s 2.9 million population; an 8% increase on 2009 figures.

According to the UKTI office, other issues in the industry include short-term obstacles to new company start-ups, due to local regulations and a lack of communication between the relevant departments.

But the body maintains that such obstacles are merely communication problems rather than legislative barriers to trade and expansion within the country.

“There can be a general lack of cohesion between government departments; for instance all the relevant agencies must be approached individually, so things can take time depending on what you are doing,” says Oliver.

Yet despite the superficial barriers, investment in development is strong with major projects on course to meet due completion dates.

“The government is heading the major infrastructure projects with support from the private sector, while private-sector projects focus on malls and resorts,” Oliver adds.

“Around the country you can see that there are signs of activity.”

Vision 2020 at a glance

“To promote economic and financial stability in oman” •

Reshape the role of the Government in the national economy

•

Broaden private-sector participation

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Diversify the economic base and sources of national income

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Globalise the Omani economy

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Upgrade the skills of the Omani workforce to promote higher employment

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Develop human resources in the industry

www.thebigprojectme.com | 45

Market Explorer | oman

“For the power plants, we are going to employ Omani nationals to work alongside the Siemens team during the implementation”

AD

Woods Bagot’s global executive chairman and CEO Ross Donaldson speaks to The Big Project about a design platform that could transform the engineering and design process

Zero-E allows designers and engineers to develop buildings which “give back” to the environment.

“T

his project began with my belief that, as a profession, architecture doesn’t do enough to contribute to advancing knowledge,” says Ross Donaldson, global executive chairman and CEO for Woods Bagot.

“We rely on research and development from other sectors, but for such a critical issue as climate change, architects have a significant contribution to make.”

Aiming to fashion a “quantifiable design process”, Donaldson, in collaboration with engineering consultancy firm Buro Happold, created Zero-E; a new software platform which goes beyond modelling the environmental credentials of a building.

With potential to be utilised in both new design and retrofit projects, Zero-E is a tool for all sectors of the construction process, which considers both the efficiency of buildings and the impat they have on their surroundings.

Donaldson explains the software can be used by designers, developers and facilities management companies alike, mapping everything from curtain walls to light bulbs, while “giving back” to the environment.

“We have developed a different way to package design considerations, which illustrates the energy and carbon impact of designing buildings,” he explains, adding that there are benefits

“We have developed a different way to package design considerations that illustrates the energy and carbon impact of designing buildings” for both the commercial and residential sectors: “We are witnessing an emerging branding trend from developers where people feel there is a demand from the market to be seen selling energy-efficient units.”

The two companies undertook extensive research, developing parametric modelling tools to test the concept. Development was funded by the Woods Bagot R&D fund, which allocates 2% of annual profits to such projects.

The programme places a building’s features to maximise efficiency, based not only on the available data for the building, but also the geographical location of the development.

For example optimum floor depth is determined by calculating the resulting lighting and heat loads, while FM contractors are able to test

the “mechanics” such as utilities, fixtures and facades to increase efficiency.

Beyond these considerations, Zero-E also works to provide solutions which enable an entire community to not only be carbon neutral, but actually produce energy (see box).

Piloted on an industrial site on the Yangtze River, Chongqing, China, the study (which began in 2010) covered a 450,000 square metre mixed use development, with an 82-storey office and hotel tower, which will “continually monitor and react to internal and external climatic conditions for maximum performance”.

Labelled a “holistic resource system”, it integrates photovoltaics, solar thermal panels, absorption chillers, a biogas fuel cell and anaerobic waste processing.

Selecting the location of the pilot based on demand and challenges, the next step is to introduce the software to the Middle East and European markets.

“I think 2010 was the tipping point because any time we show people this stuff we get high levels of engagement and interest; the interest we received in China could potentially take this to a very exciting reality.”

In short Woods Bagot and Buro Happold say Zero-E “encompasses the human dimension of sustainable development, seeking to create socially and economically thriving communities”, which: • Produce zero emissions • Annually produce more energy than they require • Process their own waste • Release cleaner air than they take in • Heal compromised sites and ecosystems • Restore natural habitats • Reconnect humans with nature • Increase occupant health • Exhibit material integrity • Delight and beautify surroundings • Supply all water needs using collection and closed loops

www.thebigprojectme.com | 47

TALK | WOODS BAGOT

Engineering tomorrow’s environment

L-R: The panel included Modar Mohamed Al Mekdad, GM for Gulf Extrusions; Phil Ellerby, MD for Rigidal Industries and Tarek S Ali, show director of Aluminium Dubai, organised by Reed Exhibitions.

All about aluminium The Big Project brings together three aluminium experts at the Media Rotana Dubai to discuss developments, opportunities and weaknesses in one of the GCC’s most lucrative industries

What are the key strengths in the aluminium industry in the Middle East region?

Modar Mohamed Al Mekdad (MM): Having cheap energy is one of the key elements in this industry. To produce one ton of aluminium you require 15,000kw of electricity, therefore it’s natural to be located here.

Phil Ellerby (PE): We specialise in aluminium envelope solutions for buildings. We tend to be involved in the higher-end projects like airports and there are currently many airport contracts in the region.

MM: In the last five years, the region has witnessed a boom in primary production.

The downstream industry consumes 16% of this, with the rest exported.

If you add value in terms of extrusion, flat roll products, building influx, finished

products add a lot to the region in terms of GDP. When we talk about US $55 billion investments and how much it can be inflated on the downstream side; up to multiples of 10 or even 20.

What are the potential weaknesses you have identified in the market?

MM: You need government involvement in projects. There are not many varieties of products, just rods and billets; downstream production requires investments in technology, R&D and establishing a technologybased industry rather than just converting from aluminium shapes.

For this reason we diversified our operations into automotive, transportation, electrical and machine parts. As a result, I can say now that that decision helped us to overcome the recession.

PE: Sadly, we’re a little too remote from the primary producers of ingot billet and slab. For us to be able to utilise aluminium in our own envelope solutions there needs to be another interface, which is the hot rolling mill, producing coil. There is only one real producer in the Gulf states at the moment, which is based in Bahrain.

The panel:

Modar Mohamed Al Mekdad, general manager, Gulf Extrusions Phil Ellerby, managing director and owner, Rigidal Industries Tarek S Ali, show manager, Reed Exhibitions; organisers of Aluminium Dubai

www.thebigprojectme.com | 49

TRENDS XXXXXXXX | ALUMINIUM | XXXXXXXXXX

85% predicted level of exported aluminium from the region’s plants by 2030

“If you allow more imports to come in there will always be the contractors only buying on the basis of price” MM: We have conducted feasibility studies which concluded that without government support in terms of natural gas, liquid metal and energy tariffs, projects are less viable.

Also what scares me in the Middle East is the lack of communication between upstream and downstream industries.

What seminal events occurred to help the evolution of the industry over the last decade?

MM: When the boom began around 2002, demand was around 50,000 tons per annum and available capacities were higher in supply than demand. In 2005, the market demand reached approximately 100,000 tons and metal began flowing in from India and China.

In 2007, it was said demand had surged to around 180,000 tons per annum simply because of the pace of construction. But in the absence of clear statistics this data misled many Below: The discussion covered building standards, exhibitions, sustainability and recent developments in the industry.

investors and today 50% of factories are running at 50% of their capacities.

can meet. I believe in another three-to-four years the situation will balance out.

PE: That scenario was paralleled in most of the Gulf industries, but especially in the UAE. There is a huge amount of overcapacity now because investors were ill advised. Across the entire construction kaleidoscope, there was over capacity because people were investing in downstream industries and there wasn’t a market to support it in the long term.

How does the lack of codified regional standards impact on production and supply?

How have these events shaped the industry today?

PA: When you have an overcapacity in the marketplace like we do now — whether it’s extrusion or it’s a finished tertiary product — it results almost automatically in lower, unsustainable prices. There is so much overcapacity at the moment that anybody who invested in the last five years is now trying to keep their company alive, reflected directly in the sales price.

TA: Price fluctuations may be to the advantage of some investors, but we can probably encourage more architects to invest in aluminium. It is happening for new buildings, but what about the old buildings? There is potential in the retrofit market as well as the new build.

MM: Established companies can be more patient; in the UAE quality standards are very high and I believe we are seeing greater demand for certain specifications not every company

MM: Architects implement UK, American, Japanese or Australian norms. The problem when you have so many different standards is that sometimes you might over- or under specify because you don’t know what is applicable for the region. As the chairman of Qualico, we are trying to enhance quality and influence how standards are set through working groups.

Local government on a federal level should work on establishing proper standards to cover investors; we need local standards especially for imported material or in-house manufacturing.

PE: Having been here 30 years and coming from England, we use British standards. They are the longest-standing and most comprehensive. Standards from Germany are good and there are many from America; some relevant, others not. But it is essential to have standards fit for purpose for the area in which you are working. Europe requires high PVDF coating for UV protection, whereas the Middle East has a lot of sandstorms so we use a polyamide modified polyurethane coating system.

How does the demand for standards change within the industry and between different end users?

PE: If you are working with people who are the decision-makers and ultimately the client, or their technical advisors who are there to put together a fitting specification for a project, then people are very interested in quality. The remit is given and it’s up to the consultants and architects to write the standards.

They have won a project based on a quotation and a certain level of specifications and they are rarely interested in improving those specifications if they are there to make a commercial profit. If one is to improve specifications generally then it is through clients’ representatives in a private investment or through the various government departments; any of the institutions which are building high levels of infrastructure that they want to last.

MM: Dividing public and private projects, government projects demand high standards, but what happens is that when the project is executed we find a gap between specifications and

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TRENDS XXXXXXXX | ALUMINIUM | XXXXXXXXXX

“In the private sector, if it is a build-and-operate project they really demand good quality, but in build-and-sell, quality is not a key issue”

Tarek S Ali, Aluminium Dubai show manager, Reed Exhibitions.

Phil Ellerby, managing director and owner Rigidal Industries.

actuality. We have seen in many government projects certain certifications are insisted upon for certain products but then for other products they are not developed.

In the private sector, if it is a build-and-operate project they really demand good quality, but in build-and-sell quality is not a key issue. They just want to make a reasonable price.

Again there is the awareness of quality that is still to be developed in this part of the world. If I look at the tender document from the specification point of view versus what is actually being supplied we see sometimes we have a gap, especially when you talk about schools or lowcost housing.

We also need to develop quality control; even in low-cost housing there are specifications to be met. The government pays for a good-quality product, where is this gap? Which pocket is it going to? At the end of the day, some of the products are of inferior quality. Projects need quality-control consultants to be appointed by the client, so part of this chain is missing somewhere. I’m not expecting the developer or client to know everything about the products, but there are specialists who know what quality should be.

There should also be supervision from the government to say this is the minimum that should be met for a particular industry or product. This is where we are yet to catch up.

TA: In exhibitions today, the machinery and processing equipment profiles mostly come from the European market, which shows there is a quality in the production process, not only in the primary side.

For example today 65-70% of exhibitors come from the processing and machinery fields and the machines from Germany or Italy, reflecting the quality of the products coming from this machinery.

I think the Gulf Aluminium Council (GAC) brings expertise by tying up with associations from the UK and Germany promoting quality production. Progress is moving but not fast.

Could the introduction of more stringent building, sustainability or waste-management codes address the issue?

Modar Mohamed Al Mekdad, general manager Gulf Extrusions.

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MM: The existing codes have to be extended in detail for windows, doors and external envelopes, saving energy and green solutions.

Gulf Extrusions has a particular product, the thermal-brokered windows and doors, which can minimise the thermal transfer by 25 to

50%, yet the specifications are mandatory only in Sharjah, UAE. TA: Maybe we could go back to the specifier to educate them and use the media as well as an educational channel.

MM: There should also be a code for the building. Today I want to buy an apartment, but I don’t know what is hidden under the tiles and false ceiling. There should be somebody to rate this building.

TA: The collection process in the Middle East region is not developed very well. The way people are not educated in how to separate the cans and re-use aluminium. So maybe aluminium is green, but people must be educated.

PE: I have my own personal theory that the UAE is inundated with vast numbers of extremely poorly-paid workforce. If you were to

estimated investment in the region’s smelter expansions and new projects by 2020

financially incentivise individuals or teach people how they can recycle cans, I think you would solve all the solid-waste problems of the Middle East overnight. I think unfortunately the exceedingly low-paid workers here don’t understand that.

There have been recycling facilities here in the UAE for a very long time; Union Paper Mills has got to be in excess of 30 years old.

Lucky Recycling for aluminium in Jebel Ali has been operating for at least 25 years. The facilities are there. The great thing with aluminium is that it can all be recycled.

What are the overriding concerns in the industry?

TA: As an exhibition company we can bring any concept here, but we try to work slowly with the industry and are involved in massive market research to cover the region; focussing on innovation, applications and investment opportunities. We try to find opportunities for ABOVE AND BELOW LEFT: The panel discussed concerns about the calibre of exhibitors coming to the region from China.

small and medium-sized investors to help develop the role of the industry and meet exhibitor demand.

Quality is also considered. We have Chinese companies coming to our exhibition and we need to understand exactly what conflict this can create in a small market place.

Are there any minimum quality requirements for exhibitors?

MM: Today, when I exhibit I see low-quality companies and this can be harmful for us.

PE: It’s always a problem with exhibitions; the ones who want to exhibit are those who haven’t been here for 30 years developing and growing a business. They want the quick solution to be in the marketplace and so go to exhibitions to hand out hundreds and hundreds of cards.

TA: From the visitor’s point of view, they have the right to see what is cheap and what is expensive. It’s filtering; the size of the stand affects the visitor’s perceptions and secondly, you will be immediately identified as a quality provider in the region just by being present with your team.

MM: How do you verify the companies?

Sometimes they are just trading companies representing Chinese companies; not even

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TRENDS | ALUMINIUM

$55b

TRENDS XXXXXXXX | ALUMINIUM | XXXXXXXXXX

76%

“Price fluctuations may be to the advantage of some of the investors but we can probably encourage more architects to invest in aluminium”

of aluminium produced in the Middle East is exported in its primary form

producers yet still classified as manufacturers.

Today, somebody who is trading in extrusion is not an extruder. He will claim he is and will exhibit as one but how do you verify? I know the biggest companies in China will not accept small stands.

TA: We approach the companies and categorise. When we receive an enquiry the first thing is to ask them the products they deal in and what they manufacture.

MM: Around 80% of those companies exhibiting at exhibitions like this, throughout the region, are representing companies and not representing the manufacturers.

There is a problem with Chinese companies communicating, particuarly in new markets, so if you have the opportunity to solve this through trading companies you have the opportunity to represent massive companies in the region.

PE: In some cases the traditional methods used

by Chinese, Korean and other Eastern companies are to establish trading companies.

When Korean companies first entered the market, they all sold through trading houses as a natural way of selling.

They will always pose a threat to the industry here, especially with this overcapacity situation.

If you allow more imports to come in there will always be the contractors only buying on the basis of price and not quality.

There is a certain quality a company will accept, based on reputation. For example, we don’t buy from China at all, for a variety of reasons, despite the fact that the prices offered by these companies may be up to 20% less. At this stage their quality isn’t up to par.

What business strategies did you employ during the downturn?

PE: We had to improve product specifications and move on.

Now we are exporting our systems to other Gulf states, North Africa and India because of the massive drop in demand in the UAE, specifically in Dubai. But our new markets are now accepting a higher grade of specification than perhaps they have done in the past.

The envelope solutions we offer mirror the very best in the western world. Our initial and simplistic systems were then emulated by many of our market competitors, meaning we have

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Source: Frost and Sullivan Market Research Report, 2010.

had to improve those specifications and move on, again emulating the best.

We are seeing the excellence of Dubai and the UAE spilling out into the other Gulf areas with higher levels of specification. We don’t believe those specifications would have been there five years ago, but they certainly are now and the level of specification is improving all the time.

MM: There is added value in the downstream industry so we have diversified. For example, smelting adds $150, extruding $250, building a window adds maybe $500, selling and installation another $500, so you’re talking about $1100 added on the original price and there are many processes involved in that downstream.

Today we supply to Jaguar, Aston Martin, Lotus, Range Rover and Land Rover. We are going to put another extrusion plant in Abu Dhabi for non-architectural applications, investing around $300 million. India is one of the other areas we are expecting growth.

This shows you well established companies always have continuous growth. Of course, when there are financial problems we slow down but we don’t cancel.

We have taken advantage of the situation because for example, if today I want to buy an extrusion line I know that I can get it 30 to 40% cheaper than I could have done five years ago; my cost per square metre is much less than it was in 2005.

Facts •

76% of the aluminium produced in the region is exported in its primary form

•

85% of Middle East aluminium is expected to be exported by 2030

•

One ton of aluminium requires 15,000kw electricity

•

The region is expected to contribute about 15% of the total global production of aluminium by 2015

•

The Middle East Region is Currently Challenged by the Minimal Existence of the Aluminium Downstream Industries

•

Saudi Arabia and the United Arab Emirates are among the Gulf’s two biggest aluminium markets

•

1.8 million tons is produced anually by Dubai Aluminium Company (DUBAL) and Emirates Aluminium (EMAL)

•

This equates to 40% of the total Middle East production

•

US $30b is the estimated current investment in the Gulf’s industry

•

$55b is the predicted level of investment expected by 2050

Source: Frost and Sullivan Market Research Report, 2010.

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BEST XXXXXXXX PRACTICE: | XXXXXXXXXX | ACOUSTICS

Sound advice Last month, The Big Project teamed up with acoustics expert Paul Schwarz to investigate a reader tip-off that some Dubai Marina construction sites were breaking legal limits for the level of construction noise produced. Here are the findings, as well as some bonus tips on best practice

A

s we all know, construction is a noisy business and sites that fail to limit the level of sound produced during the construction process may be breaking the law, putting employees’ health at risk and causing unacceptable disruption to residents and others in vicinity of the site.

That is why when The Big Project received a tip-off from a reader in the industry that some Dubai Marina construction sites were exceeding legal building noise limits, we recruited WSP acoustic director Paul Schwarz to investigate.

Expert advice

Schwarz has a varied experience of recording and measuring sounds having worked in the worldwide acoustics sector for 15 years, moving to the UAE four years ago.

A regular speaker at the IQPC-organised GCC industry event Acoustics in Construction, he’s all too familiar with the issues surrounding industry noise pollution.

As a result, he is working to create the UAE Society of Acoustic Engineers to advise authorities on the best approach to

56 | www.thebigprojectme.com

establishing and enforcing architectural and environmental noise regulations in the UAE and – eventually – across the GCC. He explains that assessing the level of noise from a site is not as simple as one may assume: “For a full analysis, you must ensure you take a detailed snapshot over a 10-15 minute period to capture every sort of noise in the environment.

“Be confident that the target of your measurement is the loudest sound you can hear. You can prove this by taking and comparing a series of measurements; one close to the road, one closer to the site, another close to an air-conditioning unit on the roof and one close to a goods loading and unloading area, for example,” he continues.

Schwarz says it’s also important to address the ‘Canyon Effect’ when attempting to accurately measure noise limits.

If a building is made predominantly of glass or concrete, it is reflective. In a well built-up environment of glass or concrete buildings, sounds are bounced from one building to another, increasing noise levels.

The way sound is processed by the human brain is also worth considering. Schwarz asserts

that around 90% of the population would barely be able to perceive a difference between two sources of noise up to three decibels apart.

If two sources of noise were 10 decibels apart, however, these could be distinguished by up to 99% of the population, he says.

News

ABOVE: WSP acoustic director Paul Schwarz.

BELOW: Construction sites around Dubai Marina.

To put noise levels into perspective, it is widely believed the pain threshold is 140 decibels — equivalent to standing next to a jumbo jet — and likely to result in unrecoverable hearing damage. An average nightclub or concert would reach around 100-105 decibels, which your body may react to leaving your ears “ringing”.

“When you hear a ringing in your ears, it’s an indication you have suffered permanent hearing damage to the membrane in your ear and you will never be that sensitive to that particular frequency again,” he reveals, adding that if you can still hear ringing the day after – you have most certainly damaged your hearing.

So how does this relate to construction?

Well, those who work in an industrial settings, such as a construction site, are exposed to loud levels of noise daily, which often results in age-related hearing loss (referred to medically as Presbycusis) by the age of 50.

Site managers should aim to decrease the amount of noise produced on site to below the legal maximum limits in order to demonstrate best practice and become an employer of choice in this respect.

While many internationally-established companies reading this advice will be familiar with such good practice — many of which will have designated health, safety and environmental managers — Schwarz says there are still a large number of firms operating in the region that are failing to meet high enough standards of noise control.

“In established construction markets, noise control is seen as due diligence. Companies want to be seen to be doing the right thing and demonstrate transparent processes.

“Furthermore, local authorities may enforce construction noise regulations.”

The UAE has compulsory noise-limits regulations, which must be set at the site boundary.

140dB

XXXXXXXX BEST PRACTICE | XXXXXXXXXX | ACOUSTICS

“A developer receiving no complaints at all during a period of construction is very rare, anywhere in the world. Often the largest number of complaints can be a result of a lack of communication between a developer and the affected community”

widely believed to be the pain threshold.at which hearing damage is permanent

But Schwarz says these may be open to interpretation in the industry.

“They are not well defined, technically, when compared to markets where legislation is based on many years of research and experience, alongside advisory civil engineering or acoustic societies that have been in contact with the authorities for years.”

This inexperience is also reflected in the enforcement of regulations in the emirates.

“In the US, the UK and most of Europe, authorities will have specific noise teams responding to complaints made by the public, individuals or corporations. The teams will investigate the issue using an acoustic consultant and generate a report; it’s quite a lengthy process,” he says.

But Schwarz goes onto say that the process of effectively dealing with complaints of buildingrelated noise pollution are becoming more common in the Middle East.

“I have known police officers to confiscate equipment or ask sites to suspend operations if they feel noise levels are unreasonable.”

However, he adds that without full teams and procedures in place this could be a subjective method that requires further development.

Turning it down

Until then, contractors can act responsibly by independently assessing noise levels regularly and actively working to reduce them.

“The best way to deal with any noise is at the source,” says Schwarz.

If equipment is relatively new and well maintained it will most-likely be emitting the lowest noise level it is capable of. Older machinery, piling machines and JCBs will emit a “ridiculous” amount of noise whatever the situation.

In which case, staff should be provided with adequate personal protective equipment (PPE), machinery can be fitted with silencers and works can be scheduled to take place at times when they will cause the least disruption to those in the vicinity, avoiding early mornings and late nights.

Acoustic consultants help planning the phasing of work.

In the UK, US and Australia, it is common for them to be engaged at an early stage, especially if the development is close to a noise-sensitive area or building of significant historical importance, but this is not yet the case in the UAE.

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BEST XXXXXXXX PRACTICE| XXXXXXXXXX | ACOUSTICS

The authoritative view “good operating practice” construction companies should consider to reduce the likelihood of complaints from members of the public:

“For large buildings, constructing outer buildings first can create a noise barrier for the rest of the construction process. It’s all about good planning and considering practical solutions before you take the first lump of soil out of the ground,” asserts Schwarz.

Of course, he recognises that noise-reducing advice must be practical for it to be feasible. Implementing complicated noisereduction procedures that result in a noisy task taking twice as long is not the way forward; it’s simple and easy processes, rather, that Schwarz recommends. For example, construction workers can be assigned work patterns that alternate shifts on a noisy area of a construction site with shifts on a quiet part of the site, limiting the number of hours per a day that they are exposed to phenomenal levels of noise.

To the test

Upon assessment of a number of sites in and around Dubai Marina last month, all levels of noise emitted proved to be within the legal limits set by Dubai Municipality.

Yet, Schwarz tells The Big Project it is not unusual to receive complaints about construction noise, even when contractors adhere to regulations and demonstrate best practice.

“A developer receiving no complaints at all during a period of construction is very rare, anywhere in the world,” he says.

Yet there are simple solutions: “Often the largest number of complaints can be a result of a lack of communication between a developer and the affected community.

“We have found that by simply engaging with the local community and providing information on the details of the development, the duration of the works and a place where people can go to have their opinions genuinely heard and discussed will appease a surprisingly large number of people.

“This fundamental awareness of how construction activities affect the quality of people’s lives and the basic provision of communication is, unfortunately, all too often overlooked on building sites all over the world,” he concludes.

So while the many contractors operating around Dubai Marina are not technically breaking any rules, they — and other construction companies region-wide — could still benefit from ‘sound’ advice for best practice.

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•

Activities with the highest noise emissions should be undertaken during daytime standard working hours between Sunday and Thursday and not over the weekend or on official holidays

•

Diesel-engine vehicles and compression equipment should be fitted with silencers

•

Electrically-powered equipment should be preferred, where practicable, to mechanically-powered alternatives. All mechanically-powered equipment should also be fitted with suitable silencers

•

Where appropriate, bored piling techniques should be considered instead of impact piling to reduce environmental noise and groundbourne vibrations. The rotating action of this piling technique significantly reduces environmental noise and groundborne vibration compared to that from impact piling

•

Deliveries and waste removal from sites should be routed to minimise disturbance to local residents with full use being made of sheltered or remote access points.

Entrances close to residential areas should only be used for worker and visitor access

•

Delivery and heavy vehicles should be prohibited from waiting within or near the site with their engines running. The movement of heavy vehicles during the night must be avoided wherever practical

•

Independent noise monitoring should be undertaken to demonstrate that noise levels at the site boundary are acceptable. This serves to protect the local community as well as the contractor and the developer against excessive noise levels, but also from unwarranted complaints

•

Items of plant on site operating intermittently should be shut down in stand-by time and when not in use

•

Where feasible, all stationary plant should be positioned on the construction site so that the noise impact is minimised

In addition to the above, there are also several very practical measures that a contractor or developer can adopt if considered early in the construction programming stages •

With large developments, it is possible to consider the use of site offices and storage units to provide a natural barrier to noise on site. If they are positioned directly between the noisiest activities planned for the site and the nearest affected noisesensitive properties, then the reduction in noise can be significant

•

Noise cannot always be completely eliminated, but by considering the construction of units or buildings closest to the nearest noise-sensitive properties first, completed buildings will then subsequently provide a natural barrier to noise from the construction of the rest of the development

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The Big Project discusses the future of heavy equipment auctions with IronPlanet Middle East managing director John O’Sullivan

I

ronPlanet, an online marketplace for heavy equipment, announced last month that it would be expanding its Middle East operations from the firm’s Dubai base.

The firm conducts auctions most weeks, selling equipment from North America, Europe and Asia-Pacific to buyers around the world.

The US company’s first auction featuring equipment from the Middle East took place on February 23.

“We’re excited to announce IronPlanet’s expansion into the Middle East with our strategic base of operations located in Dubai,” said Jeff Jeter, executive vice president at IronPlanet.

“Dubai provides us good access to IronPlanet customers across the Gulf region and we look forward to providing these customers a better way to buy and sell their used equipment through IronPlanet’s global usedequipment marketplace.”

“Our new operations in Dubai will create the local presence necessary to quickly respond to customer needs and provide one-on-one support”

The frequency and accessibility of IronPlanet’s online auctions results in faster and more profitable sales, fair market value for equipment, low selling costs and a global audience of buyers, according to the company.

“We have more than 1240 bidders in 55 countries,” John O’Sullivan, managing director for the Middle East, told The Big Project.

Furthermore, selling equipment from the consignor’s location eliminates transportation costs for the seller. Buyers are protected by detailed inspection reports and the IronClad Assurance provided.

“IronPlanet has been successfully selling equipment into the Middle East for a number of years and has an established customer base throughout the entire region,” said O’Sullivan.

“Our new operations in Dubai will create the local presence that is necessary to quickly respond to our customers’ needs and provide one-on-one support from a multilingual, local staff of representatives.”

O’Sullivan told The Big Project that the firm was actively looking for new consignments in the Middle East, adding that online auctions were the “future” and that the region was ready to embrace it.

“It can be difficult to convert a few people from bricks and mortar, but the majority is already online.”

Business is moving online, think about the next generation – if you don’t embrace it, game is over. He said Saudi Arabia was the region’s fastest-growing market in terms of bids.

While O’Sullivan acknowledged an oversupply of equipment in the region, which was keeping prices down, he observed a demand for “quality, late-model equipment”.

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AUCTIONS | IRONPLANET

IronPlanet expands in the Middle East

Suppliers in the spotlight A round-up of the latest news and announcements from industry suppliers in the Middle East

SmartGlass

Saint-Gobain Gyproc

AC Cleaner

New international sales manager appointed to develop Middle East profile

Supplier becomes “first in the Middle East” to warrant drylining systems

HVAC company seeks Emirati partners for franchises in the UAE

Dublin-based glass supplier SmartGlass International (SGI) has appointed Martin Potter to manage the company’s international brand portfolio. As international sales manager, Potter (pictured above) will have responsibility for expanding the SGI brand in the Middle East and growing the company’s international presence and sales.

“Developers in the Middle East are looking for high-quality, innovative materials and products to fit out interiors from healthcare facilities through to hotels,” Potter commented.

“The use of intelligent smart glass provides added value and increased flexibility in new building design, improves working environments and building ergonomics, saves energy, and increases the wellbeing of occupants.”

The company exports “electronically switchable glass” to markets in more than 50 countries. SGI has been operating in the region since February 2009.

Products include LC SmartGlass and SPDSmartGlass, both developed to meet the needs of the commercial, hospitality, healthcare, marine, aviation and security and industrial and exhibition market sectors.

Users can adjust the transparency of the glass at the flick of a switch, adding value and increasing flexibility in building design.

A recent study by the University of Cambridge concluded the use of SmartGlass can reduce solar gain by up to 90%.

Abu Dhabi-based materials developer SaintGobain Gyproc has launched SpecSure, a drylining system warranty to guarantee the use of Gyproc products within its systems.

Drylining systems comprise Gyproc plasterboards, Gypframe metal components and Gyproc accessories, such as jointing compound, tapes and screws.

The company’s drylining systems, which comprise of Gyproc plasterboards, Gypframe metal components and Gyproc accessories, such as jointing compound, tapes and screws, were recently showcased to consultants, architects and project engineers at the Gyproc Seminar. The seminars are held every quarter.

Case studies conducted on the materials showed a projected saving of more than 30% when block-work was substituted for lightweight drylining partitions.

The use of the systems can also reduce the building programme by 65% and increase saleable floor space by 6%, according to information from the company.

“Our systems withstand the robust demands of today’s construction methods and building uses and provide comfortable living and working environments,” explained Gyproc technical manager Jason Hird (pictured above).

Previously active in the Middle East under the British Gypsum and BPB Gyproc brands, the first dedicated manufacturing plant opened in Abu Dhabi in 2001.

Following the development of a new method for cleaning air conditioning systems, AC Cleaner is inviting Emirati companies to join its network of franchise dealers to distribute the systems in the Middle East.

The newly-developed cleaning system reduces the likelihood of breakdown, extends the lifetime of the product and improves energy efficiency by up to 30% for every eight grams of dust removed, according to the firm.

Research published by the company claims one in five European employees has been absent as a result of illness caused by unclean or poorly maintained HVAC systems. Illnesses can include Legionnaires’ disease, fungus, allergies and sick building syndrome (SBS).

The microbiological maintenance system is a “one of a kind” industrial machine, which works to disinfect systems.

“Both scientists and politicians denounce the dangers stemming from the bad maintenance of these devices,” said AC Cleaner manager François Donadieu (pictured above).

“Facing this public health problem, AC Cleaner comes forward with the tools and the technical nature of their enforcement that bring about the solution.

“Both scientists and politicians denounce the dangers stemming from the bad maintenance of these devices, especially as cleaning is still an artisanal technics.

“This is an innovation,” he added.

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30% minimum projected saving through use of gyproc’s lightweight drylining partitions

International Copper

SAS International

Emirates Steel

Antimicrobial copper promoted by international body for use in region’s schools

Supplier completes design, manufacture and supply contract for Abu Dhabi Souk lighting

Output and sales increase takes market share to more than 50%

The International Copper Association (ICA) is promoting the use of antimicrobial copper in the Middle East following clinical trials in the UK which concluded the material can reduce the spread of infection by more than 90%.

The trials, conducted at Selly Oak Hospital in Birmingham compared the antibacterial performance of the newly-developed material against that of non-copper surfaces. The ICA claims the surfaces “continuously kill bacteria and viruses such as Influenza A, E. Coli and MRSA between routine cleans”.

The anti-bacterial copper is already in use in Mejiro Daycare Centre for Children, Hachioji City, Tokyo, Japan. The centre has replaced hand-washing basins, taps, food-serving tables, serving trolleys and door furniture with brass alloy alternatives.

“We had already implemented infection control by introducing air-purification units and ensuring children wash their hands properly, but we are still searching for better measures,” said centre director Shoji Hiiragizawa.

Local ICA representative Ravinder Bhan (pictured above) said: “The Middle East places special emphasis on public health. The use of copper alloy touch surfaces, as demonstrated through application in the Tokyo daycare centre, can serve as a model for the Middle East “The antimicrobial properties will reduce the chance of infection among children, and add to their health and safety in schools,” he added.

Lighting systems for Abu Dhabi’s refurbished The Souk, Central Market, have been supplied

by SAS International.

The interior building solutions supplier won a contract to design, manufacture and provide lighting and service channels, as well as metal ceilings. The products have been used for interior and exterior areas in the market.

The redevelopment of the Souk, headed by Aldar, follows a fire in 2003 which destroyed the emirate’s oldest bazaar.

Architect Foster and Partners, which joined the project in 2006, was responsible for the external redesign of The Souk.

SAS International and Aldar have collaborated on a number of projects including Aldar headquarters; the main building at the Science & Technology Park, Doha; and the H3SIXTY Business Centre, Bahrain. SAS International has offices in Abu Dhabi and Dubai.

It was also announced last month that SAS International has introduced a new doublehook system for its System 205 and 600 ceilings.

The panels and rafts are now demountable from either side to facilitate easier installation and maintenance.

System 205 is specifically designed for use in corridors while the double-hook adaptation for System 600 acoustic lighting rafts or modules provides “additional access flexibility for an already versatile product,” according to a statement from the company.

Emirates Steel has reported a 17.5% rise in output and a 120% increase in sales during 2010, taking the producer’s current market share to more than 50%.

The rises mark the second year of increased trade, with wire rod output increasing 64.5% and billet production increased by 150% in 2010 compared to the last three quarters of 2009; Direct reduced iron (DRI) output went up by 640% in 2010, compared to the last quarter of 2009. Rebar production increased 7.5% year-onyear from 2009.

Around 80% of finished products are sold within the UAE with the balance exported throughout the wider GCC, China, the Far East and Pakistan.

“These are significant increases in our production and sales volumes considering the challenges faced in our local and regional markets,” said CEO Gregor Munstermann.

“The construction sector is the primary consumer of our rebar and wire-rod products and our objective is to be one of the leading regional companies in steel making,” he said.

“Although some stability is returning to the GCC’s construction sector this year, we believe infrastructure projects will accelerate recovery in the next couple of years,” said Mubarak Al Khaili, VP of commercial strategy.

The company also predicts housing requirements across the region will absorb the increased capacity.

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SUPPLIER | NEWS

“These are significant increases in our production and sales volumes considering the challenges “

SUPPLIER HOTSEAT | ZAMIL AC

WINDS OF CHANGE After a strong performance in 2010, Zamil AC’s chief operating officer tells The Big Project about the research and development processes behind the company’s growing product line

A

s a leading producer and supplier of air-conditioning systems in the Middle East and North Africa, Zamil Air Conditioners is well positioned to set the pace for innovation in the industry.

Investing heavily in R&D operations, in 2010 Zamil Air Conditioners launched a new process cooling chiller system “Cooline from Zamil” and won the Barclay’s Data Centre Project award for the low-carbon Geoclima chiller line.

Zamil’s new innovation for 2011, ResisTec, is an anti-corrosion coating specifically for HVAC coils, panels and drain pans, designed to reduce lifecycle costs and depreciation.

Part of the company’s system-care catalogue, the products have been specifically designed for the Middle East region, using technology “well ahead of the demand curve”.

“One of the unique requirements of the Middle East is that the products have to operate up to 55°C,” says chief operating officer Osama Bunyan.

“During the past few years we have introduced quite a few new products that were required by the market, including high-energy efficiency chillers, process cooling and residential chillers, screw and scroll type compressors, and environmentally-friendly refrigerant gases,” he adds.

Described by company vice president Ahmed Zaatari as an “integral part of the total Zamil CoolCare service plan”, the range also includes “high-quality products and responsive maintenance services”.

Designed to address customer concerns about the longevity of AC systems, particularly in climates such as the MENA region, the anticorrosion systems are applied to coils, panels, drain pans and other HVAC system components to protect against system degradation.

The anti-corrosive coatings were developed for Zamil in collaboration with a European consultant, with the process for third party testing, field tests, technician training and sales taking almost a year.

The coating material is manufactured in Europe and applied to products at Zamil’s factories, or on site for retrofits. It is now a standard addition on all Zamil Air Conditioner

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Zamil Chief Operating Officer Osama Bunyan. chillers and applied condensing units with aluminium fin condenser coils.

Worldwide operation

Based in and manufacturing all of its products from Saudi Arabia since 1974, Zamil’s product and service portfolio includes steel, air-conditioning, glass, concrete, insulation and other associated services for the region’s building and construction sector.

Zamil Air Conditioners is one of five divisions trading under the Zamil name. the division is a subsidiary of Zamil Industrial Investment Company, a Saudi Arabia publiclylisted company.

The company has several international manufacturing facilities in Italy, Egypt, Vietnam, India and the United Arab Emirates.

Now with a string of in-house brands, Zamil operates under four service areas; residential, commercial and industrial, services and contracting and Zamil Controls. The company has supplied to buildings in Dubai’s Business Bay development and Dubai Industrial Park and

currently operates in markets across more than 55 countries.

“We started off by simply manufacturing room air-conditioners, and have grown to offer end-to-end HVAC custom solutions, right from application study, engineering, manufacturing, supply, installation, commissioning and long-term maintenance,” Bunyan explains.

The company also designs, manufactures, tests, markets and services a comprehensive range of air-conditioning products, from compact room air conditioners and mini splits to large-scale central air conditioners, chillers and air-handling units for highly specialised, commercial and industrial applications.

Products are marketed under five core brands: Classic, Cooline, CoolCare, ClimaTech and Geoclima.

“We look at expanding into new markets more from a profitable growth perspective. The select export markets we are looking at offer tremendous growth potential and we plan to expand our production facilities and introduce new products and services to our local and international clients,” Bunyan says.

“Zamil’s outstanding expertise means we can offer products and services that have been designed specifically for this region, using technological advances that are well ahead of the demand curve.”

FACTS •

1974 Zamil Air Conditioners is established in Saudi Arabia

•

90 countries worldwide currently use Zamil Air Conditioning products

•

Seven countries across three continents manufacture Zamil products

•

10,000 people are employed by the wider Zamil Industrial group

•

30% of revenues are derived from outside Saudi Arabia

•

Zamil Industries was founded in 1998 and provides products, engineering systems and services to the construction industry

Riyadh, Kingdom of Saudi Arabia Exhibition 21st - 25th March 2011

The inaugural Saudi Construction Show is showcasing construction machinery, vehicles, building equipment and tools, building material machines, formwork and scaffolding. Riyadh will be the host city for this event, on record as the largest construction machinery show yet held in the Middle East. Please visit our website for further information and registration.

We look forward to seeing you there!

REGISTER NOW

TEl: +971 4 440 9129 EMAIl: info@saudiconstructionshow.com www.saudiconstructionshow.com Organised by

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2) Concealed Fix Wall Panels—Sheikh Saeed Halls—Dubai World Trade Center

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Visit us at Arabian Construction Week at ADNEC—(Stand Number 811) 28—30th March, 2011 (On display—T-Seam standing seam, heat reflecting eco-friendly coatings and more...

1) Tapered T-Seam (Standing Seam Panels) - Paragon Mall—Reem Island

Doing it the Causeway The Big Project finds out more about Causeway’s new UAE employee, John Conmy Former RedSky IT general manager and director John Conmy has joined construction software company Causeway’s UAE office, within the construction and infrastructure division.

Conmy has five years’ experience in delivering construction software solutions across the Middle East, having established RedSky UAE. “A key reason for joining Causeway is the company’s unique approach to delivering solutions for the management of cost and value on major construction and infrastructure projects,” commented Conmy.

“The recession has put contract margins and project performance under real pressure and as a result is now forcing the industry to focus hard on controlling costs.

“This is creating a need for a more structured and controlled way of working and contractors need to have the tools to be able to react.

Causeway offers commercial management and project accounting software that complements and integrates to a contractor’s existing financial accounting systems,” he added.

In practice

The firm’s project accounting software has been implemented to manage cost and value on projects such as the Channel Tunnel Rail Link,

Heathrow Terminal 5, Cross Rail, Al Raha Beach and Abu Dhabi Airport.

Last month, fit-out, construction and management services specialist ISG reported significant time and cost-savings, as well as a higher success rate for bids following implementation of Causeway Estimating for its Middle East operations, according to a statement issued by the company.

The subsequent introduction of Causeway’s CADMeasure interactive measurement tool resulted in additional productivity benefits.

The selection of Causeway Estimating followed a rigorous evaluation of the options available, including demonstration workshops to test the products in a realistic environment.

“We had previously been using a spreadsheet-based system that had a number of inherent disadvantages,” said ISG commercial director Richard Kimber.

“It was clear we could improve our bid management process by investing in specialist software — and that this would not only reduce our costs but also enable us to deliver a better service to our customers. It also became apparent that the functionality of Causeway Estimating offered a number of distinct advantages over the alternatives,” he added.

Causeway’s Dubai offices, established in 2008 provide a platform to service the requirements of the whole GCC construction industry.

Delivering solutions

As part of his role, Conmy will focus on delivering solutions for contractors. However, with complementary divisions providing solutions for cost consultants, quantity surveyors and facility managers, Causeway offers software for the complete lifecycle of the built environment.

“Global economic pressures are changing the way in which we all work and construction is definitely no exception,” said Causeway’s divisional director James Atkinson.

“It has been a real catalyst for companies to review their processes in a drive to become more efficient. Innovative software solutions can add real value, eliminating inefficiency and providing the transparency and control required. Whether maximising profitability of construction projects, managing documents and drawings, monitoring utilisation of plant or managing supply chain performance; Causeway has the solutions required.”

Atkinson added: “With John now on board, 2011 will be an exciting year for Causeway’s entire operations globally.”

About Causeway Causeway, dubbed “the construction software people”, enables construction companies to achieve efficiency and excellence, according to the firm.

An example of an ISG designed interior.

From feasibility through to construction and facilities management, Causeway’s software powers the complete lifecycle of the built environment. The company helps customers win more profitable work, manage cost and reduce risk through the use of innovative construction software solutions.

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CAREER LADDER | JOHN CONMY

“Global economic pressures are changing the way in which we all work and construction is definitely no exception,”

Project Name Qasr Al-Ain Palace Hotel Project Client Tourism Development & Investment Company (TDIC) Project Number MPP2436-U Territory Client Email info@tdic.ae Web:http://www.tdic.ae Description Construction of Qasr AlAin palace hotel.

Budget $ 500 million Remarks This project is in Al Ain. The resort could be even bigger than the Emirates Palace hotel in Abu Dhabi that opened in 2005. Further details of this scheme have not been revealed.

South Africa's Northpoint has prepared the concept architecture for the hotel.

The local office of KEO International Consultants is acting as the architect, while South Africa's MLC is the cost consultant.

Main Architect KEO International Consultants (Al Ain) Cost Consultant MLC International (Dubai)

Project Name Fairmont Hotel & Serviced Apartments Project-1 Project Number ZPR222-U Territory Abu Dhabi Client National Investment Corporation (Abu Dhabi) Description Construction of Fairmont Hotel & Serviced Apartments comprising a 40-storey hotel with 449 rooms and a 35-storey tower with 198 apartments.

Budget $ 408 million

Period 2014 Remarks This project is in Abu Dhabi.

The scheme is currently under design.

This is expected to be completed in the fourth quarter of 2011. Local Dewan Architects & Engineers has been appointed as the consultant, while UK's EC Harris is acting as the Project Manager.

Main Consultant Dewan Architects & Engineers (Abu Dhabi) Project Manager EC Harris International Limited (Abu Dhabi)

Project Name Burjside Boulevard Tower Project Project Number SPR2155-U Territory Dubai Client Damac Properties (Dubai) Email info@damacgroup.com Web http://www.damacproperties.com Description Design and construction of 190-metre-high, 49-storey Burjside Boulevard Tower comprising serviced apartments, with an entire floor dedicated to leisure, including a temperature-controlled swimming pool, a fine cuisine restaurant and lounge overlooking the pool.

Budget $ 75 million Period 2012 Remarks This project will be located directly opposite Dubai Mall, offering guests and residents, breathtaking views of the Dubai Fountain and Burj Khalifa. There will be a choice of 1, 2 and 3-bedroom apartments, all with their own internal gourmet kitchens, complete with European stainless steel appliances. Local Sun Engineering & Contracting Company has been appointed as the Main Contractor. The contract is worth an estimated $55 million. Construction of the basement, podiums and first typical floor has been completed. Work is ongoing on the second floor. Client will soon award four additional contracts on this

project. Currently out to tender, the contracts for MEP works, lift supply and installation, cladding and metal works will all be awarded within the next two months. The firms appointed will be working alongside the Main Contractor, which is targeting five-day cycles for building the residential floors in the hope of completing the project by end of 2012.

Main Consultant Al Waha Engineering Consultants (Dubai) Main Architect Architectural Consulting Group - ACG (Abu Dhabi) Main Contractor Sun Engineering & Contracting Company L.L.C (Dubai) Foundations, Enabling & Piling Contractor Stromek Emirates Foundations L.L.C (Dubai)

$60 million contract to build the underground car park, as part of this project. The car park will contain three levels underground over a space of 22,741 square metres, a built-up area of 65,340 square metres and around 1,575 parking spaces. The project is situated underneath the public park near ADNOC headquarters and will take two years to complete.

Main Consultant Halcrow International Partnership (Abu Dhabi) Main Architect HOK International (Dubai) Project Manager Hill International Ltd. (Dubai) Main Contractor Six Construct Ltd. (Abu Dhabi), Arabtec Construction L.L.C (Abu Dhabi)

Project Name ADNOC Headquarters Complex Project

Project Name Midfield Terminal Project - Abu Dhabi International Airport Expansion

Project Number MPP1176-U Territory Abu Dhabi Client Abu Dhabi National Oil Company (ADNOC) Email info@adnoc.com Web http://www.adnoc.ae Description Design and construction of a new headquarters complex for ADNOC comprising a 342-metrehigh, 65-storey office tower, podium, basement and underground parking areas, as well as a tunnel connecting the office tower with the underground parking.

Budget $ 490000000 Period 15/05/2013 Remarks This complex will be located at the intersection of Corniche road and Bainunah street in Abu Dhabi.

It will cover a total built-up area of approximately 190,000 square metres.

Local/Belgian Six Construct Abu Dhabi has been appointed as Main Contractor to build the headquarters complex. Local Arabtec Construction has been awarded an estimated

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UAE

XXXXXXXX MENA PROJECTS | XXXXXXXXXX | TENDERS

TENDERS

The latest tenders and project updates for developments in MENA

Project Number OPP270-U Territory Abu Dhabi Client Supervision Committee for the Expansion of Abu Dhabi International Airport (SCADIA) Web http://www.scadia.com Description Construction of a Midfield Terminal at Abu Dhabi International Airport.

Budget $ 6.8 billion Tender Cost $ 13625 Period 2016 Remarks Bid Package No. WBS-1.2.3.3 Expression of Interest (EoI).

The Abu Dhabi terminal will be built between the airport's two runways; total built-up area 630,000 square metres, 20 million passenger annual capacity. and multi-storey car park.

At least 14 groups submitted prequalification applications for the main contract, including Lebanese Arabian Construction Company, France's Bouygues, South Korea's

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MENA PROJECTS | TENDERS

Samsung Corporation and local/ Belgian Six Construct Abu Dhabi; US' Bechtel Corporation, Turkey's Enka and local Al-Jaber Group; Athensbased Consolidated Contractors Company (CCC), Turkey's TAV and local Arabtec Construction; local/ Australian Al-Habtoor Leighton, South Africa's Murray & Roberts Contractors and Germany's Hochtief; Japan's Taisei Corporation; South Korea's Hyundai Engineering & Construction, Kumho Engineering & Construction; Italy's Impregilo, Astaldi, Pizzaroti and China's Sinohydro Corporation; India's Larsen & Toubro, Australia's Multiplex and local National Projects Construction; and others. Abu Dhabi Airports Company (ADAC) is yet to decide when it will issue a tender for construction of the terminal. A joint venture of Turkey's TAV Construction and Athens-based Consolidated Contractors Company (CCC) has been selected for the estimated $57 million pile caps and foundations package on this scheme.

Main Consultant Arup Gulf (Dubai) Main Architect Skidmore, Owings & Merrill LLP (USA) Design Consultant Kohn Pedersen Fox Associates (UK) Project Manager Parsons International Ltd. (Abu Dhabi) Specialist Contractorsv TAV Construction (Abu Dhabi), Consolidated Contractors International Co. Ltd. - CCC (Abu Dhabi) Foundations, Enabling & Piling Contractor National Services & Contracting Company NSCC (Abu Dhabi)

Project Name Thermal Power Plant Project Project Number OPR453-U Territory Abu Dhabi Client Abu Dhabi Water & Electricity Authority (ADWEA) Email Web http://www.adwea.gov.ae

Budget $ 1.4 billion Description Engineering, procurement and construction (EPC) contract to build a gas thermal power plant.

Period 15/03/2014 Remarks This project will be located in Shuweihat City, 260 kilometres west

of Abu Dhabi Emirate. It is understood that a consortium of Korea Electric Power Corporation (KEPCO) and Japan's Sumitomo Corporation has been appointed as the EPC contractor.

Funds for the scheme will be raised through borrowing from South Korean, Japanese and other foreign banks by May 2011. Costs will be recovered by selling electricity produced at the plant to Abu Dhabi Water & Electricity Company, a wholly-owned unit of the Client, for 25 years.

Main Contractor Korea Electric Power Corporation (KEPCO), Sumitomo Corporation (Abu Dhabi)

- Germany's WestLB, KfW; and - UAE's National Bank of Abu Dhabi and Union National Bank.

Debt is set to carry a 20-year tenor and the pricing is set to be very competitive.

Financial Consultant BNP Paribas (Abu Dhabi) Technical Consultant Fichtner Consulting Engineers (Abu Dhabi) Main Contractor Abengoa Solar (Spain), Total (France) Specialist Contractor Foster Wheeler International (Abu Dhabi)

Project Name Shams 1 Solar Power Plant Project

Project Name Industrial Gate City Mixed-use Development Project

Project Number SPR1914-U Territory Abu Dhabi Client Abu Dhabi Future Energy Company (MASDAR) Email Web http://www.masdaruae.com

Budget $ 740 million Description Build-own-operate (BOO) contract for the construction of Shams 1 solar power plant with capacity of 100 MW. Remarks This plant will be located at Madinat Zayed in the western region of Abu Dhabi. A joint venture of Spain's Abengoa Solar and France's Total has been awarded the main contract to carry out this scheme. US' Foster Wheeler has been awarded a contract to design and supply a solar steam generator system and also perform site advisory services. Construction of the plant is in progress. The project is expected to be completed in third quarter of 2012. Financing for this project has attracted 10 banks and now looks set to reach financial close this month. The following banks are to lend on this $740 million scheme, of which about $600 million will be debt finance: - France's Societe Generale, BNP Paribas, Natixis; - Japan's Mizuho, Bank of TokyoMitsubishi, Sumitomo;

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SAUDI ARABIA

Project Number ZPR214-SA Territory Saudi Arabia Client Mawten Real Estate Company (Saudi Arabia) Email info@mawten.com.sa Web http://www.mawten.com.sa Description Development of Industrial Gate City mixed-use scheme comprising warehouses, residential areas, commercial centres, hotels, medical services and banks, including infrastructure such as modern roads, water and sewage systems, power network and a water treatment plant.

Budget $ 295 million Remarks Located close to the present Riyadh Industrial City, Saudi Arabia, project covers an area of 6.5 million square metres. The scheme is part of Saudi Arabia's strategy to involve the private sector to achieve economic development and strengthen industries.

It is understood that the project is currently under design. This is expected to be completed in first quarter of 2011.

Invitation to bid (ITB) for the main construction contract is expected to be issued in first half of 2011.

Project Name Medina Airport

Expansion Project Phase 1 Project Number MPP2374-SA Territory Saudi Arabia Client General Authority of Civil Aviation - GACA (Saudi Arabia) Email gaca-info@gaca.gov.sa Web http://www.gaca.gov.sa Description Expansion of Medina Airport to develop airside and landside facilities, including the construction of a new terminal with capacity of 14 million passengers a year, renovation of an existing runway and construction of a second runway.

Budget $ 1.5 billion Remarks This project is in Saudi Arabia.

It will be developed in two phases on a public-private partnership (PPP) basis. The airport currently handles about 3.5 million passengers a year.

Later expansion plans involve the construction of a new passenger terminal, the renovation of existing runway, the possible construction of a second runway. Client has pre-qualified eight consortiums to bid for the main contract. They include: - South Africa's Airports Company - Turkey's YDA, Spain's Aena Desarrollo Internacional and OHL - Badr Consortium comprising local Integrated Transportation Company, South Korea's Incheon International Airport Corporation, Central Japan International Airport and South Korea's Samsung.

- Local Saudi Binladin Group, France's Aeroports de Paris and Bouygues.

- The Saudi airplex consortium comprising local El-Seif Engineering, Canada's MMM Group, US' Airport Development Corporation & Houston Airport System and UAE's Emirates NBD. - Turkey's Limak Investment, India's GMR Infrastructure and Turkey's Mapa Construction.

- The Tibah consortium comprising Turkey's TAV, local Saudi Oger, Al Rajhi Holding Group and Athens-based Consolidated Contractors Company.

- The Saudi-Malaysian consortium comprising local Bakri International

Project Name PP10 Power Plant Extension Project Project Number MPP1995-SA Territory Saudi Arabia Client Saudi Electricity Company Central Region (Saudi Arabia) Email informus@se.com.sa Web http://www.se.com.sa Description Engineering, procurement and construction (EPC) contract for extension of Block C1 of the existing PP10 power plant by addition of 8 GT 7EA simple-cycle indoor turbines.

Budget $ 375 million Remarks This plant in Riyadh will have a capacity of 472 MW. US' GE will supply the simple-cycle turbines. Local Arabian Bemco Contracting Company has been selected as the EPC contractor after negotiations. Construction works have commenced on this scheme.

Main Contractor Arabian Bemco Contracting Company Ltd. (Saudi Arabia) Tender Categories Power Generation & Distribution.

QATAR Project Name Doha Mall Development Project Project Number ZPR215-Q Territory Qatar

Client Al-Futtaim Group Real Estate Email af.realestate@alfuttaim.ae Web http://www.afrealestate.com Description Development of Doha Mall comprising a full retail centre, an entertainment park and 2 hotels.

Budget $ 1.6 billion Period 2015 Remarks This project involves development of the largest complex in Doha, on the northern highway linking the airport with the Qatar - Bahrain causeway. The scheme will cover an area of 433,000 square metres and is being implemented in joint venture with Qatar Islamic Bank, Aqar Real Estate Investments Company and a private company. Construction work is expected to commence in the first quarter of 2011. Phase 1 is expected to be completed in the first quarter of 2012.

Project Name Passenger Terminal Extension Project - New Doha International Airport Project Number MPP2316-Q Territory Qatar Client New Doha International Airport Steering Committee (Qatar) Email info@caa.gov.qa Web http: www.indiaproject.com Description Carrying out an extension to the existing passenger terminal at New Doha International Airport.

Budget $ 690000000 Period 10/11/2012 Status Current Project Remarks This project is in Qatar.

Known as the north node, it will involve construction of a five-level structure; total floor area of 127,000 square metres. Ground floor will accommodate transit passengers, the first floor is for departures, while the second floor for arrivals. Third and fourth levels will house a 100-room

hotel. The extension will connect to the main passenger terminal. A joint venture of Belgium's Six Construct and local Midmac Contracting Company has been awarded the main contract.

The new arrivals terminal is close to completion and due to be handed over soon. Key features of the new terminal include additional baggage belts, more immigration counters, Duty Free retail shopping, bus and taxi stands, and larger arrivals hall.

Main Contractor Six Construct Ltd. (Qatar), Midmac Contracting Company

OMAN Project Name Terminal Construction & Associated Works Project - Muscat International Airport Project Number MPP2216-O Territory Oman Client Ministry of Transport & Communications (Oman) Email dgroads@omantel.net.om Web http://www.motc.gov.om Description Engineering, procurement and construction (EPC) contract to build a new terminal at Muscat International Airport with capacity to handle 12 million passengers a year, including a runway, taxiway system, aprons, roads, utility buildings and other civil works.

Budget $ 1.8 billion Period 2014 Remarks Formerly known as Seeb International Airport Muscat Int currently handles about 4 million passengers a year. The terminal building will cover a floor area of 332,000 square metres and built between the airport's existing runway and proposed second runway, linked to the existing terminal by rail. A joint venture of Turkey's TAV Construction and Athens-based Consolidated Contractors Group has been awarded a $1.17 billion contract to carry out

civil works. Cavotec Middle East has been awarded a $4 million contract for design, supply and installation of 95 pop-up pit systems, Cavotec will also supply its Wibe Cable Support System. The state-of-the-art pop-up pit system, composed of units that emerge from the tarmac when required. A consortium of UK's Bechtel, Local Bahwan Contracting Company and Turkey's Enka has been appointed as the EPC contractor. Mobilisation works are ongoing. Construction of the terminal is expected to commence in April 2011.

Design Consultant COWI & Partners LLC (Oman) Project Manager Aeroports de Paris - AdP (France), National Engineering Services Pakistan Ltd. - NESPAK (Oman) Design Consultant Larsen Architects & Consulting Engineers (Oman) Main Contractor Bechtel (UK) Specialist Contractor Cavotec Middle East FZE (Dubai), Bahwan Contracting Company L.L.C (Oman). Enka (Turkey) Civil Engineering Contractor Consolidated Contractors International Company - CCC (Oman), TAV Construction (Turkey)

Project Name Sur IPP Project Project Number ZPR118-O Territory Oman Client Oman Power & Water Procurement Company S.A.O.C Email ahmed.busaidi@omanpwp.com Web http://www.omanpwp.co.om Description Build-own-operate (BOO) contract for the construction of an independent power plant (IPP) with capacity of 2,000 megawatts (MW) at Sur. Closing Date March 7, 2011 Period 2014 Remarks This project will be located in Sharqiyah region of Oman. Nine companies responded to the RFQ. They include Japan's Marubeni Corporation, Mitsui & Company, Tokyo Electric Power Company; Saudi Arabia's Acwa Power, Saudi Oger; US' AES Oasis; Singapore's Sembcorp Utilities; Panama's Procomon & Asociados; and Turkey's Enka. Client

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MENA PROJECTS | TENDERS

Energy Company, Malaysia Airports Holdings Berhad, local Almabani General Contractors, Italy's Impregilo and local/Malaysian Riyad Bank.

Client extended deadline for prequalified firms to submit bids for the first phase development from the previous deadline of December 15, 2010. xtension has been granted in order to give more time for the consortiums to do their due diligence on site.

Financial Consultant International Finance Corporation - IFC (Saudi Arabia)

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GLOBAL TRENDS

$36bn The value of state handouts announced by King Abdullah bin Abdul Aziz for the citizens of Saudi Arabia. The primary areas of investment include housing, social security, education and employment.

30% The minimum shareholding required by public and closed joint stock companies to own and develop land in Oman.

$3.1bn

The cost of the recent protests to the Egyptian Economy. According to a report by investment bank Credit Agricole. The value of currency was driven to a six-year low between Janurary 25 and February 18. Libyan oil reached $116 a barrel.

DON’T MISS: ARABIAN CONSTRUCTION WEEK 2011 MARCH 28-30, ADNEC 

More than 500 exhibiting companies



Thousands of products showcased



10,000 trade visitors



20,000m2 of exhibition space



Four global summits with 800 delegates

DIARY INTERNATIONAL ISH China Beijing: March 3-5

Held at the Beijing China International Exhibition Centre (CIEC), ISH China attracts exhibitors from the sectors of sanitation, heating and air-conditioning.

Conferences and seminars are also held concurrently with the show.

Architecture and Construction Materials Tokyo, Japan: March 8-11

Architecture and Construction Materials features construction materials for commercial buildings, cultural and public facilities as well as homes and office buildings. The exhibits also include related equipment, building techniques, tools and software.

Hard Hat Expo New York, US: March 9-10

Hard Hat Expo is the only gathering of all the construction equipment and services in New York, Hard Hat Expo continues to grow each year, through continuing participation by quality exhibitors and the addition of more events for attendees to participate in.

Building Trade and Home Renovation Finland: March 11-13

Building Trade and Home Renovation targets the construction engineering and professional repair building industry in Finland.

Indian Ceramics Gujarat: March 15-17

Indian Ceramics 2011 represents the sixth consecutive year of the show exhibiting international ceramic technology for the manufacturing industry.

Bridges UK Leicestershire: March 17

The show provides a forum for the industry addressing the process from structuring to final construction of bridges.

Viatec Expo Italy: March 17-20

The international trade fair for road construction and infrastructural rationing in Alpine Regions.

Bulgaria Building Week Sofia: March 23-27

The show is an international building exhibition for building restoration, building and construction, building utensils, machines and materials.

MENA Isanbul Window Turkey: March 10-13

The 12th edition of the international window glass technology, accessory, side industry and auxiliary products fair.

Second Annual Cost-Effective Sustainable Design and Construction Riyadh, Saudi Arabia: March 13-16

The show will highlight key solutions to the latest challenges in Saudi Arabia’s sustainable building and infrastructure industry, including the benefits of sustainable design.

Architectural Lighting Saudi Arabia Riyadh: March 13-16

Find out about innovative new designs and projects from lighting experts and designers from around the region.

Building Materials and Maintenance Sharjah, UAE: March 21-23

Building Materials and Maintenance is the region’s premier trade event acting as a comprehensive sourcing platform for industry requirements of doors, windows, walls, roofs, cladding products, materials, accessories, and related equipment and services.

Saudi Construction Riyadh: March 21-25

Saudi Construction, an international gathering place for the construction machinery industry, will showcase the latest equipment, products, services and technologies. Bringing contractors and suppliers together, it will also feature conferences and workshops, and is expected to the largest construction machinery exhibition in the Kingdom.

Bridges Saudi Arabia 2011 Jeddah: March 27-30

Focused on upcoming plans to enhance existing networks and implement new construction, Bridges Saudi Arabia will unveil future projects, share advances in design and planning, construction and maintenance, and explore best practices for quality, safety, sustainability and durability of future bridges.

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DIARY | INDUSTRY EVENTS

MARCH

TEA BREAK | INDUSTRY COMMENT

Get involved: Visit: www.thebigprojectme.com Follow us on Twitter: METheBigProject Become a group member on LinkedIn Or become a fan on Facebook: Thebigproject PAUL CHANEY

Associate at Energy Control Solutions US

Many of the LEED credits are simple and direct. Why not look to them even if you are not certifying a building? Some ideas include ensuring you install efficient lighting and recycling facilities. But my favorites are the simple tips: install the best fi lters in your HVAC systems, and ensure you maintain the systems, as smart management of a building results in lower energy costs.

ROBERT HAVERLOCK

Certified building advisor US

Your Shout

This month, our international green experts offer more words of wisdom and top tips on sustainable building and designing on a budget JUSTIN WAITE

GUY HARRIS

In the UK we have Site Waste Management Protocol (SWAMP).

A large part of this is minimising waste through designing in whole product units. For example, the width of internal walls would measure the equivalent of a whole number of tiles, or rooms constructed from plasterboard in height and width multiples.

Consideration should be given to how materials are transported, stored and delivered to reduce the risk of damaging stock on site.

I recommend the use of bamboo.

It’s cheaper than timber flooring and though it may have travelled a long way it is a sustainable source; bamboo grows rapidly so stocks are replenished swift ly and it’s a good substitute for MDF. In fact, the whole property can be built from bamboo. You can use bamboo framework, insulation, cladding and roofing - even bamboo fabrics. I’m sure costs will be massively reduced.

Industry expert UK

Managing director Morgan Harris Architects UK

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As a sustainable building advisor, I have seen LEED schools that don’t work beyond helping people create code-built homes that have poor indoor air quality (IAQ).

While there are many good ideas presented, without third-party testing by a commissioning agent throughout a project the sustainability of a building is not given.

ALI NAJIM JON WEISS

Architectural designer, JOW US

Cost is no longer much of an issue. Building green is rapidly becoming standard building practice for most people and some of the best designs are cheaper to build than the available alternatives.

One of my favourite tips relates to water in residential projects. For water heating, buy a standard 40 gallon, under-cabinet water heater and place in the kitchen, or centrally between the kitchen and main bathroom. You’ll have passive, instant heat by reduced water in the pipes, and lower costs due to fewer piping connections. Furthermore, heat from the tank dissipates back in to the living area instead of an unheated basement or garage.

Senior energy consultant ASA Energy, Saudi Arabia Building green and economics go together in the short and long term. Building attached houses instead of detached ones, you saves up to around 27% in energy; intelligently using shading may save the same again. By constructing courtyard buildings, cooling towers or allowing natural light in design, further savings can be made.

In my book, ‘Effective and Economic Methods to Control the Sources of Energy Wasting’, I propose five principles for GCC countries. Three of these principals are: To consider urban planning and building design; to think seriously about the transition from buildings exposed to direct sun and shaded buildings; and base selections on insulation methods rather than materials.

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