Saudi Projects Magazine Issue 44 by tpg media

44 ISSUE / 2019 JUNE

ACCIONA AGUA A RELIABLE PARTNER IN BUILDING THE LARGEST DESALINATION PLANTS

ILF CONSULTING ENGINEERS PIONEERS IN THE WATER SUPPLY WITHIN THE KINGDOM OF SAUDI ARABIA

PROJECT FOCUS SHUAIBAH 3 EXPANSION II INDENPENDENT WATER OPENS EARLIER THAN PLANNED

SAUDI TABREED O&M COMPANY THE CHANGING FACE OF THE KINGDOM’S “ENERGY EFFICIENCY”

Editors Foreword

ACCELERATING THE TECHNOLOGY REVOLUTION TECHNOLOGY HAS NOT ONLY PLAYED A ROLE IN USHERING IN THE AGE OF GLOBALISATION, IT HAS ALSO BEEN THE MAIN CATALYST FOR ITS ADVANCEMENT, AND SO THE ANNOUNCEMENT THAT THE SOFTBANK GROUP IS WORKING WITH THE GOLDMAN SACHS GROUP TO RAISE MONEY FOR ITS SECOND $100 BILLION TECHNOLOGY INVESTMENT FUND IS CERTAINLY NEWSWORTHY. Moreover, Saudi Arabia, along with several other countries, are said to be in preliminary talks over the new fund, which it is believed, will start formally soliciting investors in July. SoftBank’s first Vision Fund has stakes in many of the world’s leading technology companies, including Uber and WeWork. SoftBank may perhaps contribute up to $50 billion, up from $28 billion in the first fund, as a result of what founder, Masayoshi Son, sees as potentially rewarding returns. The aim will be to close the fund by March 2020. Even though Son has made no secret of his intention to raise more capital following the first Vision Fund, there’s been some question as to whether he would manage to generate yet another $100 billion grant. The original fund was the largest ever of its kind, raising concern it could increase start-up valuations and damage returns. This belief was backed-up by the first public offering by Uber Technologies, which was something of a failure. However, it is now among the fund’s highest-profile investments. There is no doubt that SoftBank has gained confidence after it was contacted by a number of sovereign wealth funds and received favourable early responses from other investors. The discussions are preliminary and the fund might not close as planned next year, or may possibly raise less money than expected. Son has been quoted as saying: “Because we have made great results and performance in SoftBank Vision Fund I, a majority of investors have shown high interest in Vision Fund II. On top of that, many investors around the world showed their interest to be part of Vision Fund II.” Saudi Arabia dominated the first Vision Fund, contributing $45 billion of the total amount, and Mohammed bin Salman, the Crown Prince and Chairman of the kingdom’s sovereign wealth fund, told Bloomberg in October, 2018, that he would pledge the exact same sum of money for the next Vision Fund.

Rod Millington EDITOR

MANAGING DIRECTOR Eddie Rayner e.rayner@tpg.media PUBLISHING DIRECTOR Laura Wojciechowski laura@tpg.media

EDITORIAL EDITOR IN CHIEF Rod Millington r.millington@tpg.media

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Contents

COVER STORY

ACCIONA AGUA

A RELIABLE PARTNER IN BUILDING THE LARGEST DESALINATION PLANTS FEATURES

ADVANCED WATER TECHNOLOGY

SAUDI TABREED OPERATION AND MAINTENANCE

AL SALEM JOHNSON CONTROLS

ENGINEERING CONSULTANTS GROUP

Contents

WATER SECTOR FOCUS

14 WATER FOR FUTURE GENERATIONSâ&#x20AC;¦ PRICELESS ALSO IN THIS ISSUE

GET TO KNOW

PROJECT FOCUS

PORT PROJECT FOCUS

LOCAL NEWS

GET TO KNOW ILF CONSULTING ENGINEERS

K ARL TOBLER, MANAGING DIRECTOR OF ILF SAUDI ARABIA

Saudi Projects: How would you describe

water transmission system in 1977 (Jubail

the beliefs and values of ILF? What

- Riyadh Water Transmission System).

are your main areas of operations? Karl Tobler: ILF is committed to achieving the highest standard of client satisfaction and thus maintaining long-term business

Water for Arabia AT ILF, THEIR PASSION IS TO MAKE A CONTRIBUTION TO A BETTER QUALITY OF LIFE GLOBALLY. THIS IS WHAT DRIVES THE COMPANY AND GIVES ITS WORK REAL VALIDITY. MANAGING DIRECTOR KARL TOBLER EXPLAINS MORE ABOUT THE BUSINESS, ITS PHILOSOPHY, AND PLANS FOR THE FUTURE.

Since then, we have been committed to Saudi Arabia, participating in more than 200 projects during the last 40 years. We have been engaged in most of the

relations with its clients. We help our clients in

key water transmission systems existing

the sectors of energy and climate protection,

within Saudi Arabia. The delivery of potable

water and environment, transportation

desalinated water is a very important

and structures, as well as in the oil and gas

economic growth factor for the kingdom

industry, to reach their ambitious goals. In

and its population. ILF has also contributed

the Kingdom of Saudi Arabia, water projects

to Vision 2030 in other aspects, such

are our main business field and indeed

as creating a comprehensive training

this has been our main remit since 1977.

programme for young Saudi talent. Over

SP: How do you see progress over the next

the years, we have trained and developed

5-10 years, how does ILF contribute in terms

approximately 100 young graduates, taking

of the development of upcoming projects in

them through to become experienced

the water sector, and how do you position

engineers. Also, as one of the first western

yourself in relation to KSA’s Vision 2030?

companies, we have given Saudi women the

KT: ILF has been a great witness of the history in the Kingdom of Saudi Arabia

opportunity to start a professional career. All together, we have contributed by these

and a full participant in the development

measures to Saudisation and to the goals

of its national water supply objectives.

of Vision 2030. By delivering creative ideas

We are pioneers as designers of the first

to our clients, we have supported also the

GET TO KNOW ILF CONSULTING ENGINEERS

transition process of the Saudi economy diversification, participating in projects for the

 ILF OFFICE IN RIYADH, KSA

international tourism sector, among others. SP: How do you see yourself in terms of your relationship with the government directives in the development of water projects? KT: Our strongest relationship with governmental institutions has been with Saline Water Conversion Corporation (SWCC). For more than 40 years, SWCC has been our partner in Saudi Arabian water projects. Furthermore, we have completed projects for the Ministry of Environment, Water and Agriculture, and other governmental institutions. Our history in Saudi Arabia and the relationship with the government has been based on trust, professionalism, and commitment.

“ ILF is proud of having been engaged in most of the key Water Transmission Systems in the Kingdom of Saudi Arabia since 1977”.

SP: What makes your products or services stand out in the industry within the KSA market? KT: ILF is a family enterprise and

On top of this, we are currently working

SP: Have you any plans for expansion,

on the following projects: NEOM Water

short-term and long-term? KT: We opened an office in Al Khobar in 2014.

sustainability is a major concern of our

Transmission System, Shoaiba Tank Farm

owners and all employees. This desire

Phase 4, Makkah Road Tunnel, Yanbu - Medina

In 2015, lacking space, we changed the location

to make a better world is a fundamental

Water Transmission System Phase 4, and

of our Riyadh office to one of the buildings that

ingredient in all our projects, be it the

various other projects with clients like Metro

are part of the skyscrapers of the kingdom’s

avoidance of waste, the saving of energy, or

Riyadh, Marafiq, NWC, and Al Awwal Bank.

capital, to the ‘Olaya Towers’. Offices in the

the reduction of water usage by developing innovative solutions for our clients. SP: What is the biggest challenge

SP: What has been ILF’s biggest achievement to date in the KSA? KT: The first water transmission project

that ILF faces in KSA at this stage? How

from Jubail to Riyadh in the late 70s;

do you overcome these challenges?

this was the world’s first closed water

KT: Due to the high number of projects we are working on currently, we have to be very focused to manage the recruitment

western area will follow. Our development has been remarkable; at the moment we have in excess of 200 employees within KSA, of which more than one third are Saudi nationals. SP: Where would you like to

transmission system and the longest high

see your company in five years’

pressure water transmission system.

time in the KSA market?

The forecast demand for water needed

KT: I see our ILF as THE major engineering

and associated visa processes. The projects

by Riyadh was not fully quantified. The city

and consulting company in the water

are fast track, and our clients cannot afford

was clearly short of water and some areas

sector, and also in the privatisation area.

delay, so we have to respond quickly by

could only be supplied during certain times

providing qualified people to maintain

of the day. Riyadh’s population had also

our company standards whilst retaining

greatly increased during the foregoing years,

our core beliefs and commitments.

but no exact figures were known and a social

Director of ILF Saudi Arabia, I can lay claim

demographic model was yet to be developed.

to be part of a truly historic development

SP: What other objectives and projects is ILF currently working on in KSA? KT: We have managed to prepare ourselves

At this time, Riyadh obtained its drinking

SP: Is there anything else you would like to include or highlight? KT: During my seven years as Managing

within the kingdom. I feel both proud

water from groundwater wells. However, after

and humbled by this achievement. Our

to take on the changing market, in particular

the commissioning of the Jubail – Riyadh

company is prepared to continue to support

regarding the introduction of international

Water Transmission System, the water supply

the Vision 2030 and all the upcoming

privatisation projects. We have been awarded

for Riyadh was secured for many years.

projects. We remain highly motivated, full

two of the biggest water desalination plants,

The so-called pipelines A and B are still in

of energy, and intend to keep improving our

one in Yanbu and the other in Shuqaiq. In

operation. Currently, there are five water

services to the Kingdom of Saudi Arabia.

addition, we have also been awarded other

transmission pipelines supplying Riyadh,

prestigious waste water treatment projects.

and two more are under construction.

WW.ILF.COM

Project focus - SHUAIBAH 3 EXPANSION II INDEPENDENT WATER

PROJECT NAME: SHUAIBAH 3 EXPANSION II INDEPENDENT WATER PROJECT (IWP) PROJECT OWNER: ACWA POWER PROJECT VALUE: USD 314 MILLION COMPLETION DATE: CURRENTLY UNDER REVIEW

WATER PROJECT

Opens Earlier Than Planned SHUAIBAH 3 EXPANSION II INDEPENDENT WATER PROJECT (IWP) IS A 250,000M3 PER DAY WATER DESALINATION PLANT LOCATED IN SHUAIBAH AND IS WHOLLY OWNED BY ACWA POWER.

Project focus - SHUAIBAH 3 EXPANSION II INDEPENDENT WATER

he plant utilises sea water reverse

The plant successfully started producing water

osmosis (RO) technology, at a

in April 2019, earlier than planned. This is a

projected total cost of SAR 1,179 million ($

remarkable achievement given that a plant

USD 314 million). This desalination plant

of this size normally takes two-and-a-half to

will contribute to tackling the water security

three years to construct in the region. And

challenge in Saudi Arabia, which is currently the

this assumes everything goes right and there

world’s largest producer of desalinated water.

are no major project complications. Figure

The Saudi Water Partnership Company (SWPC), previously known as the Water

1a shows the plant’s membrane skids, while Figure 1b shows the sea water intake.

and Electricity Company or WEC, is the off-

ACWA Power and their EPC Contractors were

taker, and will purchase all the water from

able to successfully achieve this tight schedule

the plant as part of a 25-year concession

in two ways. First of all, management stayed on

arrangement with ACWA Power. The

top of the project meeting regularly to assess

project is structured under a Build, Own

project progress and to overcome bottlenecks

and Operate (BOO) arrangement.

before the delivery schedule was adversely

The plant consists of 10 RO trains with

affected. The developer, EPC contractors,

a double pass through, with an expected

subcontractors and all other stakeholders

40% conversion rate from the seawater.

such as SWPC worked closely together with

Dual media gravity filters are implemented

the same objective of water delivery.

for the pre-treatment, and the project

Secondly, the entire project team focussed

includes construction of the plant along

on water production with secondary

with seawater intake and outfall.

consideration given to balance of plant matters,

The EPC contractors are Fisia Italimpianti

while still giving high priority to achieving all

from Italy and Abengoa from Spain.

health, safety and environmental requirements.

Construction commenced in May 2017 with a

In fact, the project achieved 4.5 million

challenging two-year target for commercial

worker-hours without a lost time injury (LTI)

operation and the delivery of the much-

and without a single environmental violation.

needed water for the Makkah region.

ABOUT SWPC Established in 2003, the Saudi Water Partnership Company (SWPC) is the principal off-taker of water production, sewage treatment and strategic water storage in KSA, and is responsible for tendering all related PPP Projects. SWPC’s mission is to ensure adequate water production capacity in a competitive and transparent manner and drive local content development and private sector participation. SWPC is fully owned by the Ministry of Finance. Its Board of Directors is chaired by H.E. the Minister of Environment, Water and Agriculture, and includes representatives of each of the Ministry of Finance, the National Centre for Privatization, the Ministry of Environment, Water and Agriculture, as well as a representative from the private sector.

Port Project Focus

KINGDOM’S LARGEST TERMINAL OPERATOR EXPANDS GULF STEVEDORING CONTRACTING COMPANY (GSCCO), PART OF THE GULFTAINER GROUP OF COMPANIES, HAS ENTERED AN AGREEMENT WITH RED SEA MARINE SERVICES COMPANY LIMITED TO MANAGE AND OPERATE KING FAHAD INDUSTRIAL PORT IN YANBU (KFIP). THIS TAKES GSCCO’S PORTFOLIO OF TERMINALS IN SAUDI ARABIA UP TO FOUR, CEMENTING THE COMPANY’S POSITION AS THE LARGEST AND MOST GEOGRAPHICALLY DIVERSE PORT OPERATOR IN THE COUNTRY. GSCCO will handle a variety of cargo at

communities and markets around Yanbu and

KFIP, including containers, breakbulk cargo,

throughout the Northwest of the country.”

vehicles and bulk cargo. To support operations

The existing infrastructure at KIFP enables

at the port, the company will invest in a

the handling of container vessels with up

substantial amount of new equipment to

to 8,000 TEU capacity. With roll-on/roll-off

make sure it can deliver its award-winning

(RoRo) capabilities, an array of cargo-handling

levels of operational excellence and turn KFIP

equipment and water depth of 18 metres at

into yet another jewel in the crown of Saudi

GSCCO also celebrated another significant

low tide, the port is equipped to deal with all

Arabia’s expanding maritime presence.

landmark in 2018 when it passed the 30

types and sizes of cargo to support the growing

The decision to award the operation of

million TEU mark in container volume,

developments in the Royal Commission

the port to GSCCO was taken by Saudi Ports

corresponding to a 50 % rise in throughput

for Jubail and Yanbu and the surrounding

Authority (Mawani) in recognition of the

in just five years across all of its facilities.

areas in the north-west of Saudi Arabia.

company’s longstanding track record of

Speaking on the new agreement, Richard

GSCCO’s long-term plans include things

operational excellence - both at the Northern

James, Managing Director of GSCCO, said:

like investing in additional equipment on

Container Terminal in Jeddah, which has long

“We are delighted at the well-earned trust

an extended quay in support of the Saudi

enjoyed the reputation of being the most

that Mawani continues to place in GSCCO, and

Vision 2030 objective to establish the

productive and customer-centric terminal

are truly excited at the potential to develop

kingdom as a primary hub for logistics and

in the port, and at Jubail Commercial Port,

KFIP in Yanbu into another industry-leading

transportation to serve mainline vessels

which has consistently delivered the highest

port. In line with the strong commitment to

calling on the major east-west trade lane

levels of productivity in the Arabian Gulf,

the maritime and logistics industry expressed

between Asia and Europe, and act as a regional

while achieving double-digit cargo volume

in the Saudi Vision 2030, we look forward

hub for transhipment to the fast-growing

growth year-on-year over the past five years.

to providing best-in-class services to the

markets of the Red Sea and North Africa.

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Water Sector Focus

Water for Future Generations... PRICELESS! IN ORDER TO MEET THE GROWING DEMAND FOR POTABLE WATER IN THE KINGDOM, TOWARDS THE END OF 2018 THE WATER & ELECTRICITY COMPANY (WEC) SIGNED AN AGREEMENT CALLING FOR THE PRIVATISATION OF WATER PRODUCTION AND WASTEWATER PROJECTS, BEGINNING WITH THE RABIGH-3 IWP DESALINATION PROJECT, WHICH IS EXPECTED TO PRODUCE 600,000M3 PER DAY BY 2022. THE PROJECT, WHICH IS ROUGHLY 150KM NORTH OF JEDDAH, WILL EMPLOY REVERSE OSMOSIS TO PRODUCE DESALINATED WATER.

Water Sector Focus

his was followed by the signing of

Decoupling

the final contracts for the Kingdom’s

The Kingdom’s decision to move away from

first Independent Sewage Treatment Project

developing desalination capacity as an

(ISTP), with a consortium comprising of

element of cogeneration power initiatives

the UAE from the Metito, from Saudi Arabia

has been assisted by the rise of Reverse

Mowah, and Egypt Orascom Construction,

Osmosis (RO) desalination technology, which

from which has obtained a mandate to

enables potable water to be produced by

deliver and operate the West Dammam

way of a significantly less energy intensive

ISTP under a 25-year concession. The plant

process compared to the traditional thermal

will have an initial capacity of 200,000m3

technologies utilised throughout the Gulf.

per day with a design that will enable

As well as lowering fuel costs,

The Future

expansion up to 350,000m3 per day in the

decoupling power and water makes it

As the population continues to expand

future. Subsequently, a contract has been

possible for a great deal more flexibility

and economic diversification programmes

given to a consortium led by Marubeni

across the region’s utility grids.

place escalating pressure on water supplies

from Japan to develop the 450,000m

and wastewater facilities, the industry will

per day. Shuqaiq 3 IWP and a preferred

Wastewater

bidder, has been chosen for the Kingdom’s

A further trend in the region’s utilities sector

second (ISTP), Jeddah Airport 2.

is the increasing level of investment in

projects at different phases of the planning

continue to bring in considerable investment. With a projected $101 billion worth of

Together with WEC’s IWP programme, state

wastewater infrastructure. For the 12 months

and design stage, the region’s water industry

desalination provider Saline Water Conversion

up to 1 April, $3.2 billion worth of wastewater

will continue to be a main focus with

Corporation (SWCC) has awarded an estimated

contracts were granted, making up almost 27

developers, lenders and contractors in 2019.

$480 million contract for eight satellite

% of the total spent in the region’s water sector

desalination plants, which will be located in

across the year. Much like the desalination

requirement for water is set to increase by

a variety of places on the Red Sea coast.

sector, Saudi Arabia accounted for the

approximately 62% by 2025. In a region

At the same time, SWCC received proposals

On the wider stage, within the GCC,

vast majority of these. Nearly $1.3 billion

characterised by an absence of rivers, lakes

for two large-scale desalination projects,

worth of awards were made for wastewater

and rainfall, the swift continuing development

Jubail 2 and Al-Khobar 2, which will be

treatment projects in the Kingdom over the

of cities, plus the needs of accelerating

developed under standard Engineering,

period, around 40 % of the region’s total.

populations, are driving a surge in demand

Procurement and Construction (EPC)

Together with its ambitious Independent

contracts. The Jubail 2 and Al-Khobar 2

for water supply and wastewater treatment

Water Project (IWP) programme, The Water

capacity. Demand for growth at this level

projects will have capacities of 400,000m per

& Electricity Company (WEC) is also pressing

requires sizeable capital investment in new

day and 600,000m3 per day respectively.

ahead with the Kingdom’s initial batch of PPP

capacity. This sort of investment is taking

sewage treatment plants, known as ISTPs.

place. About $80 billion worth of water and

The projects are going to be developed

wastewater projects are currently planned

Already in 2019, contracts worth hundreds of millions of dollars have been awarded for Saudi Arabia’s very first Public-Private Partnership

under 25-year Sewage Treatment Agreements

(PPP) water and wastewater schemes, and

(STAs) with sewage capacity supplied by

more awards and tenders are anticipated

the National Water Company (NWC). Similar

production from electricity generation is a

before the end of this year. In addition, Saudi

to earlier IWPP and IWP programmes, the

crucial step in obtaining water sustainability,

Arabia’s desalination sector has historically

government is providing a sovereign guarantee

as it permits greater overall flexibility in supply

been dependent on large cogeneration power

for the sewage treatment schemes.

and lowers capital costs. Nevertheless, the

and desalination plants to meet the electricity

Final contracts for the first venture, the

or underway throughout the GCC. The growing trend of decoupling water

very best way to ensure a sufficient sustainable

and potable water needs of its escalating

Dammam ISTP, were signed in January. The

water supply is to change the manner in

population. But this is starting to change

$260 million plant will have an initial total

which water is consumed in the region, and

as the kingdom moves ahead with plans to

capacity of 200,000m3 per day, which can be

this must come through education and the

decouple power and water production.

expanded to 350,000m3 whenever required.

ongoing implementation of new technologies.

Local News

Water is Life!

Investing in a Greener Future

Veolia, the global leader in optimised resource management, is supporting Saudi Arabia’s Qatrah water security initiative by supplying innovative water purification solutions to three of the Kingdom’s most strategic dams.

 J AMAL WADI, CEO OF ALFANAR GLOBAL DEVELOPMENT

 NICOLAS THEVENOT, APICORP’S MANAGING DIRECTOR, HEAD OF CORPORATE FINANCE

The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, has signed a strategic five-year Murabaha financing facility worth $75 million with Alfanar, in support of Alfanar’s renewables energy projects, including a wind project in Spain. Jamal Wadi, Chief Executive Officer, Alfanar Global Development, said: “With an existing portfolio exceeding 1.5 Gigawatt (GW) of renewable “Saudi Arabia’s Qatrah initiative is showing global

development projects around the globe, Alfanar is committed to

best practices in adopting modern techniques

further doubling its portfolio over the next few years. The signing of the

to help arid countries make the most of water

Murabaha agreement with APICORP brings us a step closer to realising

in their existing reservoirs and streamline the

our commitment. This partnership with comes at a time when Alfanar

processes by which it is made safe for human

is also diversifying its portfolio and venturing into new markets.”

consumption,” said Dr. Badr Ghawji, Managing Director, Veolia Water Technologies Saudi Arabia. Veolia Water Technologies’ complete suite of water

Alfanar is a Saudi-based company headquartered in Riyadh and engaged in the manufacturing of electrical products, design engineering, and Operation and Maintenance (O&M) services, with projects

treatment technologies includes PH adjustment,

throughout the Middle East, Europe, and Asia. Having successfully

dissolved air flotation, biological treatment, filtration,

leveraged its expertise in electrical equipment manufacturing

ultra-filtration, and reverse osmosis. Its advanced dam

and in the Engineering, Procurement, and Construction (EPC) of

water treatment technologies have been supplied in

power transmission and distribution projects in KSA to develop

various locations throughout the Kingdom since 2000,

and operate renewable energy projects globally, it is aiming to tap

including Hili, Kholais, Wadi Itwad, Beasha, and Aradah.

into the growing demand for renewable energy around the world,

“At Veolia Water Technologies, we are using our

and intends to deploy 3GW by 2022, growing to 4-5GW by 2025.

expertise, creativity, and commitment to enhance people’s lives in the Kingdom by promoting best practice at the dams on which they depend”, added Dr. Ghawji. He concluded: “Water is an increasingly precious resource. Surviving the

$75 MILLION

1.5 GIGAWATT

OF MURAHABA FINANCING FACILITY

RENEWABLE DEVELOPMENT PROJECTS AROUND THE GLOBE

3 GIGAWATT

4-5 GIGAWATT

challenges posed by desertification and climate change means Gulf States must invest in stateof-the-art water technology if they are to survive and prosper in the years and decades ahead.”

INTENDS TO DEPLOY IN 2022

GROWING BY 2025

Local News

RESULTS UNDERLINE ONGOING SUCCESS FOR NWC The four-month results

66 PROJECTS

included the completion of 66 projects across Saudi

ACROSS SAUDI ARABIA

Arabia at a cost of more than SAR 2.45 billion, extending water and wastewater

SAR 2.45 BILLION

services coverage to more than 709,000 new customers countrywide.

EXTENDIING WATER AND WASTERWATER SERVICES

Additionally, 67 contracts for infrastructure, water, and wastewater projects have

709,000

been signed, with a value of SAR 1.8 billion. The results

NEW CUSTOMERS COUNTRYSIDE

showed that the company was able to install 1,440,000 smart

67 CONTRACTS

meters across the regions, in addition to the

FOR INFRASTRUCTURE

execution of 28,358 water and 26,254 wastewater connections.

TECHNOLOGY LEADING TRANSFORMATION

 C HRIS ROBERTS, CEO OF ELTIZAM ASSET MANAGEMENT GROUP

The Middle East Facilities Management

urban centre developments across Egypt.

(FM) market remains healthy

These projects all form integral parts of the

with analysts from Eltizam Asset

strategic visions of countries in the region,

Management Group projecting

aimed at developing national infrastructure

continued robust growth throughout

capacities and diversifying economies.

2019 led by KSA, Egypt, and the UAE.

According to a recent research report

The key drivers behind FM industry

by Technavio on FM services in the Middle

growth all relate to the expanding pipeline

East, the market will deliver a Compound

of development projects across the

Annual Growth Rate (CAGR) of more than

region: government-backed infrastructure

11% during the period 2019-2023. In

projects (metro and rail projects, airports)

addition, the Middle East’s FM services

in UAE; strategic projects such as Expo

market size will grow by approximately

2020; mega projects such as Neom and

$29.9 billion during the same period.

Red Sea tourism projects in KSA; and new

Local News

INEOS to Invest $2 Billion to Build Three Chemical Plants

UK-based chemicals multinational

425,000

400,000

2 BILLION

ATONNE ACRYLIC PLANT BUILD

LINEAR ALPHAOLEFIN PLANT

PETROCCHEMICAL COMPLEX IN JUBAIL 2

INEOS has signed a Memorandum of Understanding (MoU) with Saudi Aramco and France-based Total, to build three new chemical plants in Saudi Arabia. INEOS will build a new 425,000-tonne acrylonitrile plant, featuring INEOS’ technology and catalyst, a 400,000-tonne Linear Alpha Olefin (LAO) plant, and a world-scale Poly Alpha Olefin (PAO), all of which will be built as part of the $5 billion Jubail 2 petrochemical complex. INEOS chairman Jim Ratcliffe said: “This is a major milestone for INEOS that marks our first investment in the Middle East. The timing is right for us to enter this significant agreement in Saudi Arabia with Saudi Aramco and Total. We are bringing advanced downstream technology which will add value and create further jobs in The Kingdom.” The UK firm said that the three units, upon commissioning in 2025, will be the most energy efficient of their kind in the world.

Construction Contract Awards Grow by 113%

The US-Saudi Arabian Business Council

contracts covers mega-projects in various

(USSABC) has revealed that the value of

sectors, with oil and gas, water, and

contract awards in Saudi Arabia grew to

transportation projects making up 67% of

$13 billion in the first quarter of 2019,

the total value, accounting for $8.7 billion.

a staggering 113% increase from $6.1 billion in the same period in 2018. According to USSABC’s Contract Awards Index (CAI) report, the total value of

ABNAA AL KHAIR Under the umbrella of the Saudi General Entertainment Authority, Red Sea Mall conducted the ‘Abnaa Al Khair’ iftar this year, which falls within its corporate social responsibility strategy for giving back to the local community, and especially the children of charity organisations. A great number of children and their attendants gathered during the annual iftar, with Al Rayan Gadouri, General Manager of Red Sea Mall, commenting: “We are honoured and pleased to host this event. The management at Red Sea Mall conducts this beautiful iftar every year during Ramadan, as we believe in our corporate social responsibility towards our community and especially our children and orphans. Thus we conduct such events and activities to bring them joy and happiness.”

The value of awarded contracts in Q1 represents approximately 48% of the total value of contracts awarded in 2018.

Local News

BRAINS FOR BRINE CHALLENGE LAUNCHED The Red Sea Development Company (TRSDC) and King Abdullah University of Science and Technology (KAUST) have launched an

that were previously dry. However, the

Applicants have until 1st August, 2019 to submit

international competition that challenges

waste product of desalination is brine, and

their proposals. Five winners of the competition

academics, scientists, engineers, and

there is no adequate solution available to

will present their solutions at Amsterdam

the water industry to come up with new

minimise its impact on the environment,”

International Water Week, where up to three

solutions to manage the disposal of brine

said John Pagano, CEO of TRSDC.

prize winners will be eligible for a first prize of

as a waste product of water desalination

“TRSDC has pledged to help create

$10,000 each. As a longer-term plan, there is

in an effort to address one of the world’s

technological solutions to environmental

the potential for the winners to be supported

great environmental challenges.

problems. The launch of the Brains for

through angel-investment and other mentoring

Brine Challenge is an example of our

opportunities to ensure the solutions have

technology that has brought potable water

determination to set a new standard

as much chance as possible to succeed.

to millions and helped advance regions

in sustainable development.”

“Desalination is an extraordinary

AS IF MADE FROM ONE PIECE

Filling pots, preparing food, and doing the dishes after a delicious meal: Often times things have to go fast, and it can get a little hectic when it comes to hot pots and pans. The work area around the kitchen sink plays a crucial role in this process and is used countless times, day after day and encounters high levels of stress. At the same time, the kitchen is increasingly becoming the focal point of everyday life. The style and design of the kitchen sink is becoming more and more important across all price segments. Here, GROHE offers individual system solutions for every requirement, for this entire area. Quality, functionality, sustainability, and design characterise the GROHE kitchen portfolio, which is perfectly matched in form and function. Together with other kitchen accessories, the products can be combined with various design options. The GROHE Kitchen Colours now also include selected sinks, faucets, and the GROHE Blue and GROHE Red water systems, as well as accessories in timelessly trendy colours, injecting each kitchen with an individual and colourful look. New to the portfolio, GROHE now also offers waste systems that harmonise perfectly with the GROHE water systems under the kitchen sink and make freestanding waste bins in the kitchen unnecessary.

Local News

600 PROJECTS WORTH $55 BILLION The Saudi Contractors Authority (SCA) has showcased $55 billion worth of projects at the Future Projects Forum 2019 (FPF) in Riyadh, which brought together investors, owners, and local and international contractors to display and discuss upcoming opportunities for contractors in Saudi Arabia. The forum showcased 600 projects in multiple fields: projects related to the Kingdom’s Vision 2030, infrastructure, housing, petrochemical and oil, and operation and maintenance. More than 1,000 contractors, consultants, and project managers attended FPF, in addition to relevant organisations such as banks, insurance companies, and suppliers. FPF witnessed the signing of eight agreements and memos of understandings (MoUs). Among them, SCA signed five MoUs with: Saudi Aramco, Project Management Institute, Elm, Tatweer Building Company, and Jubail Industrial College.

Omani SME Wins Projects in Saudi Arabia between Omani and Saudi companies

rapidly and so are the ways of connecting

in the field of e-commerce.

with customers. SMEs in all the GCC countries

Qonsults is working closely with Saudi

are extremely welcoming to each other

small and medium enterprises (SMEs)

and they like to work together in building

based out of Riyadh and Jeddah on digital

a product with multicultural inputs.”

transformation solutions, and has now partnered with WADAL, a local Saudi company. Muhammad Haris Aslam, who leads

According to a statement by Qonsults, the projects are based on the fashion and lifestyle e-commerce industry in Saudi Arabia.

Qonsults, an Omani SME, has been

Qonsults, said, “Now that I have experienced

Qonsults has already soft launched the first

awarded three mega projects in Saudi

the SME scene in Saudi Arabia, my deepest

project, DarNijood.com, out of Jeddah.

Arabia, which will lead to collaboration

realisation is that businesses are changing

Local News

New Contract Awarded by Spark

is a three-phase 50km2 hub for energy,

Sparks will also include residential,

industrialisation, and technology. The

commercial, and recreational areas. At

completion of Phase 1 construction is

maturity, the dry port will have a total

scheduled for 2021. Phase 1 covers 12km2,

capacity of eight million metric tons of

with investments totalling SAR6 billion.

cargo, with a high degree of automation.

During the launch, Spark said that its first

According to an English-language report

Saudi Arabia’s King Salman Energy Park

10 investors and tenants included Baker

by SPA, the culmination of Phase 1 will see

(Spark), a Saudi Aramco and Modon

Hughes, a GE Company, Borets, Valvo Spain,

Spark attracting in excess of 120 investments.

mega-project that was launched by Saudi

Schlumberger, Al Rushaid Group, Halliburton,

Arabia’s Crown Prince, HRH Mohammed

Emerson, University of North Dakota

bin Salman bin Abdulaziz Al-Saud, in

Aerospace, Oilfields Supply Centre, and NESR.

December last year, has awarded a major contract’ for the construction of a road. Spark has announced that the contract

Construction work on Spark began back in September 2017, and engineering designs for the project were more than halfway concluded

covers the construction of a 23km road

at the time of its launch by the Crown Prince.

connecting the energy city and its dry port

As outlined by an Arabic language report

with the Dhahran-Abqaiq highway. It will

by Saudi Arabia’s state news agency SPA,

incorporate two lanes in each direction,

the scheme features five major regions.

and will also intersect with the project’s

Phase 1 will consist of general

rail bridge, with the company stating: “The

manufacturing, industrial facilities, a dry

road will support Spark tenants’ logistics

port area, a Saudi Aramco well-drilling and

and improve their competitiveness.”

maintenance area, in addition to a specialised

Located between Dammam and Al-Ahsa in Saudi Arabia’s Eastern Province, Spark

training zone for 10 centres focused entirely on enhancing Saudi citizens’ skills.

OPEC Present a United Front Oil held near $54 a barrel

Hughes data showed.

after Saudi Arabia said it

US crude has fallen about

would work with Russia

18% from a peak in late April

and other members of

and volatility has jumped

the OPEC+ coalition to

as deteriorating US-China

prevent a slump in prices.

trade relations cast a pull

Saudi Energy Minister,

over the global growth

Khalid Al-Falih said oil

outlook. Nevertheless,

producers would take

efforts by OPEC and its allies

“preventive steps” to stop

to present a united front

prices from diving, after

have helped restore some

meeting with his Russian

stability, while risk assets

counterpart in Moscow.

rallied after US President,

Meanwhile, in the US, working

Donald Trump decided not

rigs fell to the lowest level

to impose tariffs on Mexico.

since early 2018, Baker

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Acciona Agua

Securing the Future ACCIONA IS A GLOBAL COMPANY WITH A BUSINESS MODEL BASED ON SUSTAINABILITY. ITS AIM IS TO RESPOND TO SOCIETY’S PRIMARY REQUIREMENTS THROUGH THE PROVISION OF RENEWABLE ENERGY, INFRASTRUCTURE, WATER, AND SERVICES. ACCIONA AGUA IS A DIVISION OF THE GROUP AND IS A LEADER IN THE FIELD OF WATER TREATMENT, FOCUSSING ON SUPPLY OF WATER TO THE PEOPLE.

Acciona Agua 1301 API TRIO COMMERCIAL TOWER, BARSHA 1 NOVOTEL AL BARSHA BUILDING SHEIKH ZAYED ROAD P.O. BOX 118820, DUBAI, UAE T: +971 4 329 7880 WWW.ACCIONA-AGUA.COM

water treatment industry front-runner,

Celebrating a Great Year

Acciona Agua offers the design, construction,

Acciona Agua had an incredible year in 2018 in the

and operation of drinking water treatment plants,

Middle East, with the award of three RO projects in

desalination facilities, wastewater treatment plants,

KSA and one RO project in the UAE, totalling almost

and tertiary treatment plants for water reuse.

1,500,000 m3/d. These were in addition to the operation

It also offers end-to-end service management,

and maintenance of a further three RO awarded

covering each step of the water treatment process,

projects two to three years ago for 10 years. Therefore,

producing water that is fit for people to drink,

there is no doubt that 2018 consolidated what was a

delivering it to the population, treating urban and

solid performance by Acciona Agua in the Middle East,

industrial wastewater, and billing end-users.

which began in 2012 when four RO plants were added

Acciona Agua one of the water leaders worldwide, rewarded by Global Water Intellegence (GWI)

to the company’s previous four plants in the region. In the UAE, the company won its first project with

Awards as Best Water Company for three years

DEWA with the award of Jebel Ali Sea-Water Reverse

(2010, 2013 and 2017) and Best Desalination

Osmosis (SWRO), which has a capacity of 182 MLDs

Company for three years (2007, 2016 and 2018).

and is a landmark project for Acciona Agua.

Acciona Agua

to improve the final service provided to the population. This means it will need to reduce non-revenue water, increase reclaimed water use, and implement digital transformation. Acciona Agua’s project management approach has a genuine focus on excellence, which it believes can only be achieved through a true partnership with its clients and their stakeholders. The company is driven by technical excellence, and its true payback is its fast-growing reputation for delivering projects by the due date, on budget, and exceeding performance expectations. Digital transformation is deeply ingrained in our everyday activities and is an essential part of the company’s

THIS PAGE  TAMPA MARZO, USA

range of products and services. We apply international management

 COPIAPO, CHILE

standards such as PMI or Building Information

OPPOSITE PAGE  ADELAIDA IDAM, AUSTRALIA

Modeling (BIM), digital twins which allow the integrated management of all the dimensions of a project and ensure higher quality in its development and final delivery, creating new processes that help the relationship between people and water to evolve. Acciona Agua manages innovative technological solutions that allow our

In fact, as a result of its engineering capabilities,

EPC contractor and managing the Perations

clients in the public and private spheres

Acciona Agua managed to enhance the design

and Maintenance (O&M) for 25 years after

to optimise their energy, technical, and

to fit the plant within the land available

Commercial Operations Date (COD).

economic performance, always based on a

and to commit to water delivery for 2020.

Acciona Agua has completed over 80 SWRO

commitment to caring for the environment.

In KSA, Acciona Agua had an unprecedented

plants throughout the world, with a total

In 2019, Acciona Agua,will continue to

year in 2018, and was honoured to help the

installation capacity of 4.1 million m /

follow closely any water opportunity coming

kingdom fulfil its 2030 Vision, finding ways

day often in remote regions such as the

to the GCC region, either EPC, Publich Private

to implement more effective technologies

desert of Atacama in Chile or in cities like

Partnership (PPP), or Management Contract.

within the water sector. In April, the company

London, where in 2010 the company finished

This will take in not only desalination, but

was awarded Al Khobar SWRO phase 1 with

the biggest desalination plant in the UK.

also sewage treatment in order to show

210 MLDs capacity, and in December it was

Furthermore, it built a plant in Tampa,

the market how the company adds values

awarded the second phase with a final capacity

Florida, and Adelaida in Australia, amongst

with its huge engineering capabilities, whilst

of 630 MLDs, totalling 840 MLD. This SWRO

others, and today has a presence with water

providing its services at a competitive price.

facility has become the largest desalination

treatment facilities in more that 25 countries.

plant with RO technology currently under

The two main strengths of Acciona Agua are its own in-house engineering capabilities

construction with an Engineering Procurement

Every Drop Counts

(not only in Acciona Agua but in Acciona

Construction (EPC) contractual structure.

Over the next 10 years, the major challenge

Group as a whole), and the fact that it is a

will be in the use of new technologies and

company committed to utilising the latest

the reduction in the cost of energy.

technology, allowing it to approach design

Also in December 2018, a consortium in which Acciona Agua was a part of, was awarded Shuqaiq 3 Independent Water Project (IWP)

Integrated Water Cycle Management is

from the early stages absolutely free of

with a total capacity of 450 MLDs, allowing

another challenge for Acciona Agua in the GCC

any previous mindset and with the ability

the company to win its first project as a

region, with the company believing that it can

to provide the most efficient and most

developer in the Middle East, being the sole

add value to public water authorities in order

cutting-edge proposal for the client.

Advanced Water Technology

Finding Solutions to the World’s Water Shortage ADVANCED WATER TECHNOLOGY (AWT) CONSISTS OF A GROUP OF BUSINESS AND ENGINEERING PROFESSIONALS WITH CORE-EXPERTISE IN WATER SOLUTIONS, WHO ASPIRE TO BRING CHANGE THROUGH TO THE WORLD’S WATER SECTOR. A WORLD WHERE WATER RESOURCES ARE SUSTAINABLE THROUGH INNOVATIVE SOLUTIONS THAT CONTRIBUTE TO THE ECONOMIC DIVERSIFICATION OF THE KINGDOM IS THE VISION THAT DRIVES THE ENTIRE TEAM FORWARDS AT AWT, WITH INNOVATION, SUSTAINABILITY AND PERFORMANCE BEING UTILISED IN ORDER TO ACHIEVE ITS OBJECTIVES.

Advanced Water Technology P.O. BOX 47282 RIYADH 11552 KINGDOM OF SAUDI ARABIA T: +966 11 4167408 WWW.AWATERTECH.COM

Advanced Water Technology

subsidiary of TAQNIA, which is owned and funded by the Public

carbon emission desalination plant globally. Part of an initiative in the King Abdul-Aziz

World-Class Research and Development Rapidly building its capabilities in engineering,

Investment Fund (PIF) of Saudi Arabia,

City for Science and Technology (KACST),

design, innovation and project management,

and a commercial arm of KACST, AWT is

Al Khafji Solar SWRO Desalination Plant

AWT is partnering through joint-ventures with a

headquartered in Riyadh and shares with

can be upgraded to handle a maximum of

variety of industry leaders in the field of water

its parent company the strategic goal of

90,000m3 and serve 150,000 people on a

desalination and water reuse. Moreover, the

diversifying the economy of Saudi Arabia.

daily basis. The plant will make use of the

company is developing a capacity for O&M and

This means promoting a knowledge-

new Solar Seawater Reverse Osmosis (Solar

is committed to taking the role of developer

based economy, commercialising R&D,

SWRO) desalination method and use ultra-

and equity shareholder of water plant facilities.

and working with world-leading industry

filtration (UF) in the pre-treatment process.

Behind the company’s ongoing success is

This is not a simple process though, as

its capacity to draw upon world-class research

players in the transfer of knowledge.

the seawater in the region has high salinity,

and development through its established

aligns itself to support the interests and

which make filtration complex. This is further

relationship and association with KACST and

aims of various stakeholders, including, but

complicated by seasonal red tides, sea

KAUST (King Abdullah University of Science &

not limited, to WEC, ARAMCO, MOWE, MOF,

shallowness and a profusion of jellyfish. Having

Technology). Groundbreaking advancements

SWCC, NWC, and those mentioned above.

taken all of this into considerable, the plant

in water and energy are channelled through

has been designed to be extremely resistant

AWT’s R&D technology-to-market pathway.

Furthermore, the company strategically

A World First AWT exists in the context of opportunity,

to the changes in seawater conditions. The core idea behind the concept of this

AWT’s future objectives are both regional and international, even though it recognises

brought on by the shift toward

plant is that it can continue functioning even

that the Kingdom of Saudi Arabia provides

sustainability. The company is positioned

if trade lines become blocked or fuel supplies

the most immediate opportunities. The Saudi

to capitalise on this opportunity to the

run out. Khafji Solar SWRO Desalination Plant

market represents building-blocks for AWT,

benefit of its stakeholders and to those it

is able to provide a regular supply of water

as demand in Kingdom constitutes a sizable

serves. However, to take advantage of these

throughout the year, with the plant’s system

percentage of the world’s market share.

opportunities it is important to be able to spot

optimising power consumption to ensure that

them first, and this is something that AWT is

water production will be increased during peak

potential partners and stakeholders

particularly adept at. Indeed, its clear vision

power supply from the photovoltaic plant. The

who share in its vision and mission.

and core capabilities in design and engineering

state-of-the-art tracking technology will further

always allow it to execute projects on time

maximise the availability of solar power.

and to budget, no matter what the challenge. This enlightened business philosophy

This revolutionary plant will be a blessing to those who live in the region,

led to it working on the world’s first

providing clean drinking water to those

large-scale desalination plant powered

who are without and need it most.

by solar power, Al Khafji. This pioneering project is a milestone in the drive toward

New Joint-Venture

sustainability, providing a practical solution

The company has entered into a new

to a fast approaching world water crisis. By

technology partnership known as

reducing operation costs through renewable

‘CODECO’ which, under the umbrella

energy, desalination becomes an increasingly

of KACST, is a joint-venture between

viable answer to accessing clean water

AWT and NET (New Energy Transfer) that

Al Khafji Solar Saline Water Reverse Osmosis

focuses on the following objectives:

(Solar SWRO) Desalination Plant near the

 The utilisation of existing desalination

Kuwait border in Saudi Arabia is capable of

brine to increase efficiency

treating 60,000m3 of water per day, which

 Lower chemical consumption

means that it can supply over 100,000 people

 Lower Power consumption

with desalinated seawater every day. And it

 Reduction of scaling risk

achieves this without leaving any carbon trace whatsoever. The plant produces a surplus of

CODECO has now reached the joint-venture

energy during the day, which it can then use

phase and goal is to have a manufacturing

at night. This means that the plant produces

facility up and running in 2019.

zero carbon emissions, making it the first zero

AWT welcomes all interested

SAUDI TABREED OPERATION AND MAINTENANCE COMPANY

Brand New Saudi Arabia It’s All Positive! SAUDI TABREED OPERATION AND MAINTENANCE COMPANY 7429 PRINCE TURKI ST. CORNICHE RD. UNIT NO. 7432 AL KHUBAR 34413 – 2203 KINGDOM OF SAUDI ARABIA T: +966 13 8873333 E: INFO@STOM.SA WWW.STOM.SA WWW.SAUDITABREED.COM

A NEW ERA HAS DAWNED IN THE KINGDOM OF SAUDIARABIA, AN ERA UNPRECEDENTED IN THE HISTORY OF THE NATION, WHICH SEEMS TO BE GIVING BIRTH TO A BRAND NEW SYSTEM THAT IS MORE EFFICIENT AND MORE ROBUST. WHAT LIES AHEAD, THOUGH, IS A ROAD PACKED WITH CHALLENGES, BUT AS ABDUL SALAM AL MOBAYED, CEO OF SAUDI TABREED O&M COMPANY (STOM) SAYS: “IT IS ALL POSITIVE.”

SAUDI TABREED OPERATION AND MAINTENANCE COMPANY

“In a typical district cooling plant, operated by

in the Kingdom and unify efforts in this field,

various entities, a power efficiency of 1.2 to 1.5

whether governmental or non-governmental.

kW/T, and in the worst case scenarios up to 1.72 kW/T, were considered normal. At STOM, where our power efficiency varied between 0.72 to 0.9

Tarshid aims to catalyse the development of a more energy efficient Saudi Arabia. Mashroat will contribute to improving the

kW/T, we are expecting that all government /

efficiency and quality of infrastructure and

semi-government and private facilities will look

facility management across public entities.

to retrofit and optimise their cooling systems in

“The Kingdom is at a crossroads, with

order to meet the best efficiency and spending.

the old approach of going with the lowest

“The government Operation and

commercial server or the value-added

Maintenance (O&M) contracts set up

energy efficient service provider,” Al Mobayed

before used to be decided based only on

continues. “In the longer term, the latter is

the lowest price placed by the bidders,

poised to take over, but the change will be

without considering the efficiency as a Key

painstaking and cannot be done overnight.

Performance Indicator (KPI) for the service

The savings that an energy-efficient cooling

providers! Now, with the participation of four

plant could bring far offset the savings on the

l Mobayed, the man running the

professional government entities, we are

operating cost paid to the service provider.

first district cooling company in

expecting that the efficiency of power and

“If I may, I will quote a recent example that

Saudi Arabia, and someone who has played

water, as well as the lifecycle of the assets

we experienced in our company concerning a

a major role in building Saudi Tabreed,

for all district cooling systems, will need to

huge saving in power consumption of a district

shares with us some interesting insights

achieve the efficiency demanded by Saudi

cooling plant with a capacity of 25,000 TR.

concerning the changing face of Saudi

Arabia Vision 2030,” Al Mobayed explains.

What we did was change the operations to our

 ABDUL SALAM AL MOBAYED, CEO OF SAUDI TABREED

Arabia, and how the utility companies

ECRA is committed to fostering the

standard approach and added a few upgrades

such as Saudi Tabreed are perceiving and

development of the district cooling industry

to the system. Apart from energy efficiency,

preparing to be inline with the Vision 2030.

for residential and commercial purposes

the improved asset life and uninterrupted

in order to attain economic sustainability,

operations are a key benefit to the asset owner.

“In addition to the Vision 2030, the overall fabric of society is transforming

while guaranteeing that the service provided

from uncontrolled and unregulated to a

meets the highest international standards

Kingdom, while companies like STOM see

smart, intelligent, and efficiency-conscious

of quality, efficiency, and coverage.

it as a great opportunity for growth, some

society with regards the use of resources, especially utilities,” says Al Mobayed.

SEEC, meanwhile, will look to preserve the

“With the advent of the new era in the

companies face the challenge of major

national wealth of energy sources in a way that

transformation to fall in line with the energy

supports the national economy and forces.

efficient approach, or alternatively relinquish

is to enhance the focus of businesses on

SEEC aims at rationalising the production and

the business they now have to other more

economic stability. This particularly aims

consumption of energy to increase efficiency

efficient operators,” concludes Al Mobayed.

“One of the key objectives of Vision 2030

at strengthening the ground to meet the immediate need for the sustainable use of resources in the kingdom, and looking at the cooling industry power and water tops the list. Air-conditioning, which takes up almost 60% of the electrical production in the Kingdom, has also come under scrutiny thanks to the visionary leadership of Saudi Arabia. In days gone by, energy efficiency was considered as a secondary priority, with the Kingdom’s vast oil resources seeming to overshadow everything else. At this time, no one was ready to hear about the added value of STOM through energy efficiency. However, today things have turned around 180 degrees, with the attitude and priorities of organisations, both private and government owned, changing dramatically.

AL SALEM JOHNSON CONTROLS

Building Smart and Digital Transformation in Construction

 DR. MOHANAD ALSHAIKH, AL SALEM JOHNSON CONTROLS, CEO

THE KINGDOM OF SAUDI ARABIA HAS ANNOUNCED A VERY POSITIVE BUDGET FOR 2019, SIGNALLING HUGE SPENDING ON INFRASTRUCTURE AND DEVELOPMENT OF SMART CITIES, STARTING 2020. AL SALEM JOHNSON CONTROLS IS OBSERVING AND ENGAGING WITH THE DYNAMICS OF ROLLING OUT THESE PROJECTS, AND CONSIDERS ITSELF A PARTNER SHARING THE SAME VISION.

AL SALEM JOHNSON CONTROLS P.O. BOX 15019 JEDDAH 23434 KINGDOM OF SAUDI ARABIA T: +966 12 2219012 E: INFO@YORK.COM.SA WWW.YORK.COM.SA/EN

oday’s requirements are much more than

integration globally, with more than 50 buildings and

functional products and environmental

three skyscrapers. From the early design stages, Al

performance; in addition, safety standards are rapidly

Salem Johnson Controls was selected by the developer

evolving to shape demand. Johnson Controls Inc.

as the non-ICT systems integrator for the whole campus.

traces its roots back 140 years, while the JV, Al Salem

The non-ICT system included the building

Johnson Controls has a history of over 60 in the Saudi

management system, integrated security systems, fire

market. This enables it to support these standards

alarms, lighting controls, and energy metering systems.

by providing a full range of integrated products,

In addition to the detailed engineering designs and

systems and solutions, supported by the largest

integration plans, Al Salem Johnson Controls supplied,

specialised aftermarket team in the Middle East.

integrated, and commissioned the state-of-the-art

According to ‘Saudi Arabia’s Construction Market

smart building automation and security systems for

Overview 2018 and Beyond’ report, there are $284.3

the campus to ensure a safe, secure, comfortable,

billion worth of projects in the early stages of

and sustainable environment for the tenants.

development in the Kingdom, with over 700 projects

Whatever the project, Al Salem Johnson Controls’

scheduled to start in the next few months, to be

strategy is to capitalise on systems approach, to

completed by or before 2022. Al Salem Johnson

achieve the highest levels of sustainability and energy

Controls is working actively on bringing the latest

efficiency for the wellbeing of the community. And

technologies to Saudi Arabia and localising them to

that sits well with the Government directives in

support the construction infrastructure in the Kingdom.

developing smart cities and sustainable technologies.

As such, the first HVAC-R magnetic bearing chiller

It has been reported that Saudi Arabia is expected to

technology has been introduced in Saudi Arabia in 2016.

spend over $500 billion modernising its infrastructure

Furthermore, its engagement with global economies

across the 285 municipalities. The Kingdom’s move

and technological advancement allows the company to

to invest in emerging technologies has given Al

satisfy local industry’s current and future requirements.

Salem Johnson Controls the confidence, given the strong relationships and trust it has built up with the

Achieving the Highest Levels of Sustainability

Government, to work together in developing smart and

King Abdullah Financial District (KAFD) in Riyadh is

integrated solutions to develop sustainable smart cities.

the largest smart city projects in the Kingdom and worldwide too, and is one of the landmarks of system

Over the years, Al Salem Johnson Controls has collaborated with several government and private

AL SALEM JOHNSON CONTROLS

entities across multiple sectors, including

on a number of high profile projects in

largest chiller in the world to serve the guests

education, healthcare, and hospitality.

the region, some of which needed special

of Allah in Makkah, which has been installed

customisation and innovative solutions

in the Grand Mosque’s chiller plant. Al Salem

Local Manufacturing

to adapt to unique circumstances or

Johnson Controls has also worked closely

Guided by the objective to support the current

requirements of the project. One of the

with the consultant and contractor, and

transformation in Saudi Arabia, in line with

most unique mega projects is the New King

developed the largest ice storage application

Vision 2030, Al Salem Johnson Controls is

Abdul Aziz International Airport in Jeddah,

in the world for maximum cooling efficiency

actively looking for the best sustainable

as it leverages a wide range of its integrated

and to overcome monumental challenges

solutions for its clients, focusing on energy

solutions, which include HVAC solutions with

and restrictions in terms of space, water, and

efficiency and water rationalisation. Moreover,

a total cooling capacity of 135,000 TR; security

electricity usage for the Central Cooling Plant

in keeping up with the Kingdom’s effort

and control systems, including the Building

2 at King Abdulaziz University in Jeddah.

to diversify the economy, our company is

Management System (BMS) that controls all

constantly working with Johnson Controls,

major buildings and supporting facilities;

Controls is committed being the No.1 choice for

Inc. to transfer global HVAC technologies

as well as an operation and maintenance

building efficiency and smart solutions, and a

to our local YORK manufacturing facility in

service contract for the entire new airport.

main contributor to the Saudi economy through

Jeddah, were we manufacture a series of HVAC

The fact that the expected capacity of this new

its local factories, job opportunities for Saudi

with the same global quality and standards.

airport is 30 million passengers per year only

youth, training, and offering a smart, advanced,

Our expansion plans include the opening of

highlights the magnitude of this challenge.

and contemporary workplace for its employees.

than the current one, located in King Abdullah

In Line with Vision 2030

and striving towards breaking records, as it

Economic City, which will include several

The company’s achievements to date cannot

has already done on several of its projects,

testing facilities and new production lines.

be summarised over just one or two projects,

and actively contribute to diversifying

but it prides itself in having developed the

the economy in line with Vision 2030.

a new manufacturing facility, twice the size

Al Salem Johnson Controls is committed to supporting solution and system integration in order to help to achieve the Kingdom’s Vision 2030, as well as being a dynamic smart long-term partner for all of its customers and projects, through its integrated smart efficiency solutions and aftermarket support. Smart Solutions Al Salem Johnson Controls is focused on providing balanced and fair management of resources, capabilities, and technologies, for the benefit of the entire eco-system. Digital transformation is already taking place in Saudi Arabia, with benefits not only extending to smarter construction and more efficiency, but also the diversification of the economy. Additionally, artificial intelligence has the potential to boost economic growth in Saudi Arabia by 1.1 percentage points, adding $215 billion to the national economy by 2035. Artificial Intelligence will have the greatest impact on the Kingdom’s manufacturing, public services, and professional services industries, with increases of $37 billion, $67 billion, and $26 billion, respectively, in their annual gross value added (GVA), which measures the output value of all goods and services in a sector. Al Salem Johnson Controls has worked

Looking to the future, Al Salem Johnson

Al Salem Johnson Controls will keep working

Engineering Consultants Group

A VOICE OF SAUDI CELEBRATING ITS 50TH ANNIVERSARY IN 2019, ENGINEERING CONSULTANTS GROUP (ECG) OFFERS A BROAD PORTFOLIO OF SPECIALIST SERVICES TO DISCERNING CLIENTS THROUGHOUT THE WORLD, INCLUDING STUDIES AND MASTER PLANNING, ENGINEERING, ARCHITECTURE, CONSTRUCTION MANAGEMENT AND SUPERVISION, AND PROJECT MANAGEMENT.

The new century saw ECG becoming a real force to be reckoned with; with one of its most significant accomplishments being the $1 billion El Kuraimat New Combined Cycle Power Plant, in addition to winning the state-sponsored worldwide

t all began back in 1969, when

and one branch in Jeddah. Backed with

competition to develop Smart Village,

Mr. Mahmoud Sami Abdelkawi

a team of 225 dedicated staff, ECG Saudi

Egypt’s state-of-the-art communications

and Mr. Ashraf Hassan Allouba founded

Arabia has successfully accomplished more

and information technology business hub.

ECG Engineering Consultants Group as

than 100 projects in Saudi Arabia, covering

Between 2010 and 2014, ECG enjoyed

a business partnership. One of their first

all major fields of engineering. Projects

expansion across Africa, Asia, and Europe,

consultancy contracts was the Qena-

include residential compounds, hospitals,

opening branches in Assiut (Egypt), Libya,

Safaga Portable Water Pipeline in their

hotels, factories, high rise buildings, and

Tanzania, Uganda, Kurdistan-Iraq, Kuwait,

home country of Egypt, with ECG providing

educational institutions, with total construction

Al Ain (UAE), Saudi Arabia, and France. It

designs and construction supervision.

value surpassing 4 billion US Dollars.

is during this period that the company

Between 1970 and 1977, ECG found itself

As the years progressed, ECG found itself

registered with the U.S. Green Building

in demand overseas, winning its first cross-

working on a series of ground-breaking

Council, a non-profit organisation dedicated

border deal to develop the manmade river

wastewater schemes in collaboration with

to promoting sustainability in building

project in Libya, worth $2 billion. ECG also

CH2M HILL, Metcalf & Eddy, and Parsons.

design, construction, and operation.

won two momentous contracts for the Greater

Going from strength-to-strength, it changed

The last five years have seen ECG contribute

Cairo Waterworks master plan, and the Port

its status from a partnership to a joint-stock

significantly towards achieving Egypt’s national

Said Water and Wastewater master plan.

company, and between 1992 and 1995 won

vision through working on the construction

In 2011, ECG Saudi Arabia was founded

two key airport contracts to execute Terminal 3

supervision of the new sustainable cities

as a professional solidarity company

and renovate Terminal 1 at Cairo International

of New Alamein, New Mansoura, and the

established between two partners: Ms.

Airport. Its wide range of capabilities was

New Administrative Capital, as well as the

Laila Hussein (Saudi Engineer) and ECG

put to the test once more when ECG secured

Port Said Tunnels under the Suez Canal.

Engineering Consultants Group S.A (Egyptian

the contract for the Attaqa Thermal Power

Company), with headquarters in Riyadh

Plant, ECG’s first project in the power sector.

Engineering Consultants Group

A Great Team of Professionals Today, ranked 94 in the ENR Top 225 International Design Firms, ECG has

 Main Entrance: with a total builtup area of about 33,000m2

absent at the moment. Therefore, training needs to be identified as a matter of urgency

 Entertainment and Arts

to alleviate what is an acute shortage.

remained true to its roots and core values,

Neighbourhood: with a total built-

while being at the forefront of innovation

up area of about 134,200m

and global trends. Nothing demonstrates

 Investment and Commercial

At the design level, high standards of professional competence must be matched by a more practical understanding of the

this better than the fact that the company

Neighbourhood: with a total built-

needs of clients; and whilst an ability to

president personally oversees all mega-

up area of about 122,200m2

multi-task right across the industry is also

scale projects, considering the broad scope of ECG’s service portfolio, which includes architecture and landscaping, civil, structural

 Cultural Neighbourhood: with a total built-up area of about 82,500m2  Old City Neighbourhood: with a total

and electromechanical services, process

built-up area of about 187,000m2

and piping, in addition to environmental

 Residential Neighbourhood: with a

engineering and urban development. The company’s success is also down to its greatest asset – its people. ECG takes great pride in its team and understands that it can

total built-up area of about 82,500m2  Opera House: with a total built-

lacking, workers should be able to undertake a range of functions based on processes, rather than rely purely on their technical skills. Finally, there is a need to implement lean management in design and construction, in order to reduce wasted time and effort, and leverage quality.

up area of about 93,200m2  A waterway: with a total built-

Striving for Excellence

only grow by constantly hiring the best calibres,

up area of about 84,000m2

ECG differentiates itself from its

and cultivating their talents and expertise. This

 A tram track: with a total built-

competitors through its mission,

commitment has allowed it to deliver the best

up area of about 23,000m2

quality service at every stage of a project.

 Roads and parking spaces: with a total built-up area of about 250,700m2

Prestigious Projects

vision, and corporate values: Mission: a world-class engineering consultancy company that delivers the full range of engineering and architectural design services. Vision: aspiring to be in a leading global

ECG worked on a number of important and

The project’s master plan also covers a

prestigious projects, some of them including

museum, mall, mosque, church, residential

market position through upholding top ethical

Al Qassim Medical College Complex, Three

studio apartments, cinema complex, city

standards, promoting first-rate quality, and

Maarif School Complex, Al Andalus Tower,

hall, island boutique hotel, and a library.

building worldwide corporate alliances. Values: At ECG, it is fully understood that

Four Seasons Hotel Jaddah, Dhahiat Sumou and King Khaled International Airport in KSA.

Taking up the Challenge

remarkable growth is widely attributed

One of the biggest projects worked on in

ECG believes that although the future is very

to staying connected to core values.

Mecca, Saudi Arabia is Umm Al-Qura University

positive, there are a number of challenges that

It is not easy to sum up a company such

Academic Spine. The project stretches over

have to be met over the next five to ten years,

as ECG, with its commitment not only to its

a total footprint area of 100,000 m2, and the

nonetheless the aggressively competitive

clients, but also to its employees, the local

project comprises the following components:

market in the MENA region and the ability

communities in which it operates, and the

 New academic buildings: with a

to attract and retain the best people.

environment. However, what can be said

total built-up area of 155,000 m2  Extensions to existing academic

There is also a requirement in the industry, at

is that ECG strives for excellence through

project manager level, for training in integrating

the use of the latest technologies, the best

buildings: with a total built-

projects and leading performance improvement

quality assurance systems, and a pool of

up area of 74,000 m

from inception to completion. Furthermore, the

outstanding professionals. It’s a potent mix!

 Non-academic buildings: with a total built-up area of 139,000 m2 In Egypt, some of the projects include Saint Regis Hotel, Al-Masa Capital, Zone R5 in The New Capital, and New Mansoura City. The company is also rightly proud of one of its biggest projects Al-Alamein Old City, which stretches over a total area of approximately 1,091,500m2 in Al-Alamein New City and comprises the following components:

industry needs to look at the site supervisor level, with key grade people being virtually

SAUDI ARABIA CONSTRUCTION PROJECTS ANALYSIS

ProTenders examines the Q2 2019 pipeline of the construction sector in the Kingdom

scale infrastructure projects across the

The 2019 budget prioritizes expenditure

health care, transportation, tourism and

on capital investments estimated at $66

renewable energy sectors. New tourism

billion, an increase of 19.9% from the

investments such as Mega-city NEOM

previous year. Some of the construction

valued at $500 billion will spark a travel

targets announced in the 2019 budget are

boom in Saudi Arabia, and will be a game

constructing 355 new school buildings in

changer to promote diversification for

2019, building 23,000 housing units, and

cross-border and domestic tourism. Recent

handing over of more than 100 housing

social reforms and easing of the country’s

projects by the end of 2019.

The Kingdom of Saudi Arabia leads the

visa restrictions to attract international

GCC construction market with $1.2 trillion

tourists, has led to a focus on recreation

Objectives outlined in Vision 2030 put

worth of active projects, of which 54% are

projects and large-scale expansion and

within Infrastructure, followed by 27%

renovation programs.

partnerships,

major

emphasis joint

public-private

ventures

and

the

privatization of government entities. Such

in Urban construction and 19% in Oil & Gas. The Infrastructure sector is by far the

Saudi Arabia’s contractor awards across

measures will be critical to ensuring the

largest contributor to the construction

the Urban, Infrastructure and Oil & Gas

Kingdom achieves its goal of increasing the

sector with 1,654 active projects valued

sectors are forecasted to be $19.2 billion

private sector contribution to the country’s

at $670.35 billion. The Kingdom’s aim to

in Q3 this year. The Infrastructure sector is

gross domestic product (GDP) from 40% to

attract foreign and private investment

expected to register the highest contractor

65% by 2030.

has led to the announcement of large-

awards followed by the Urban sector.

â&#x20AC;&#x153;With a pipeline of about $777 billion of future projects planned in Saudi Arabia, there are plenty more opportunities to look forward toâ&#x20AC;? Value of Projects By Status

Ongoing Projects By Sector ($Bn)

Planning $477.54 Bn (27.2%)

On Hold $519.3 Bn (29.6%)

Design $165.47 Bn (9.4%)

Oil & Gas $135.4 Bn (29.6%)

$1754.24 Bn Total

Under Construction $457.3 Bn (26.1%)

Infrastructure $184.5 Bn (40.3%)

Upcoming Projects By Sector ($Bn) Oil & Gas $95.35 Bn (12.3%)

$457.3 Bn

$777.66 Bn

Urban Buildings $137.4 Bn (30.0%)

Urban Buildings $196.46 Bn (25.3%)

Total

Tender $134.65 Bn (7.7%)

Top 5 developers by value ($Bn)

Total

Top 5 contractors by value ($Bn)

Top 5 consultants by value ($Bn) 60

100

Infrastructure $485.85 Bn (62.5%)

15 40

10 40

20 5

Zuhair Fayez Partnership Consultants

Omrania & Associates

Egis Rail

Dar Al Handasah Consultants (Shair and Partners)

Consolidated Contractors Company (CCC)

Saipem S.p.A.

Daewoo Engineering & Construction Company

Larsen & Toubro

Saudi Bin Ladin Group

Saudi Arabia Ministry of Housing

High Commission for the Development of Arriyadh

Saudi Electricity Company

King Abdullah City of Atomic and Renewable Energy

Saudi Aramco

Saudi Consolidated Engineering Company (Khatib & Alami)

Construction Contract Award Forecast Q3 2019 ($Bn) Infrastructure $9.7 Bn Urban Buildings $5.2 Bn

$19.2 Bn Total

Oil & Gas $4.3 Bn 0

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â&#x20AC;&#x153;ILF is proud of having been engaged in most of the key Water Transmission Systems in the Kingdom of Saudi Arabia since 1977â&#x20AC;?.