Ced magazine june 2017 edition

JUNE 2017

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SPECIAL INTERVIEW REAL GROWTH STRATEGY Engr. Samson Opaluwah, FNSE speaks on the growth strategy for Nigerian professionals and the importance of understanding government’s procurement standards

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ENGR. KASHIM ABDUL ALI, FNSE PRESIDENT, COREN

ENSURING ENGINEERING PRACTICE STANDARDS AT THE HEART OF ENGINEERING PRACTICE EXCELLENCE IS STRONG REGULATION THAT ENSURES REAL PRACTICE STANDARDS - ENGR. KASHIM ABDUL ALI, FNSE, SITS ATOP THE REGULATORY AGENCY - COREN

Nigeria’ No. 1 Development Professional Journal

COUNCIL FOR THE REGULATION OF ENGINEERING IN NIGERIA NO. 22 ADDIS ABABA CRESCENT, WUSE ZONE 4, ABUJA ITY & UN

FAITH, PEACE & PROG

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CONGRATULATORY MESSAGE

On behalf of the Council for the Regulation of Engineering in Nigeria, COREN, I heartily congratulate our own President and Chairman of Council, Engr. Kashim Abdul Ali, FNSE, NPOM, mni on the auspicious occasion of his 59th Birthday Anniversary Celebration and Conferment of the prestigious CED Magazine Professional Special Recognition Award.

We celebrate your commitment, dedication, determination, professionalism and contributions to the Engineering Industry.

As you celebrate your special day, may you look back at your successes and achievements over the years with joy and look forward to a bright and even more fulfilling future.

May God bless you with good health, long life, more success and prosperity.

Happy Birthday sir.

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Engr. W. Kamila Maliki, FNSE, mni Registrar.

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Century 21 www.cedmagazineng.com Systems Comm. Ltd.

GLOBAL PERSPECTIVE

without more human labor.

Indeed, for some employers, the prospect of a fully automated, workerless production facility is the final goal. When you run a largely automated assembly line, or production line, it is relatively easy to adjust production to meet demand and market conditions - simply turn a few dials up or down.

The image of coal miners using shovels and picks to remove coal from the earth is not the typical mode of production. About half of coal

production today takes place in Wyoming, where vast open mines are run by giant (and increasingly smarter) machines, vehicles, and drills. And with each passing year, coal mine operators have a broadening array of labor-saving products and services to choose from.

Here is a short list of automated technologies already being used in the mining industry, according to the Brookings Institution: "autonomous haul trucks and loaders; autonomous long-distance haul trains; semiautonomous crushers, rock breakers,

RELIEF COMING FOR INFRASTRUCTURE 2017 budget: Nigerian govt set to release N350 billion for capital projects

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he Minister of Finance, Kemi Adeosun said that the federal government was ready to release N350 billion, being the first tranche for implementation of the 2017 budget.

Mrs. Adeosun said this on Monday in Abuja at the public presentation of 2017 Appropriation Act. She said that the Federal Government had enough cash available to immediately commence the execution of key projects and initiatives scheduled for the 2017 fiscal year.

"We are ready, we are having a cashplan meeting very soon and after that, N350 billion will be released as first tranche of capital releases for the 2017 budget,'' she said.

Also speaking, the Minister of Budget and National Planning, Udoma Udoma, said funding of projects would now be on Project-Based Release System to curb waste of public funds by Ministries, Departments and Agencies (MDAs).

He said also that part of the requirement for capital releases was evidence of compliance with the Bureau of Public Procurement Act. Mr. Udoma said that henceforth, no MDA was authorised to enter into a foreign denominated contract without the approval of the Ministers of Budget and National Planning, and Finance.

He also said the federal government 50 | www.cedmagazineng.com June 2017

Minister of Finance, Kemi Adeosun

would strengthen its monitoring and evaluation framework to improve physical inspection and impact assessment of projects and programmes implemented by MDAs. "We are worried and concerned about the number of abandoned capital projects scattered in their thousands throughout the country, which we inherited from previous administrations.

"We know that you can't continue doing things the same way and expect different result, so we have to do things differently. We need to have more

and shovel swings; automated drilling and tunnel-boring systems; automated long-wall plough and shearers; autonomous equipment monitoring; and GIS and GPS technologies." (In Australia, a company that runs iron ore mines is already deploying dozens of driverless trucks.)

The conclusion? In today's economy, it's hard to base your assessment of an industry's health - or trajectory - simply by looking at the number of people it employs.

By Daniel Gross

ENSURING ENGINEERING PRACTICE STANDARDS

is executive editor of strategy+business.

targeted releases. We have to look at the projects which are important and can easily be completed.

"The ministers are working together to ensure that over time, we concentrate our resources on completing important projects, so that we have maximum impact," he said.

Mr. Udoma also said that his ministry was working with the National Assembly to get the country's fiscal year adjusted to between January and December.

He said this could only be achieved when the executive and legislature work together to ensure that the budget was submitted, passed and signed before December 31, 2017.

In his remarks, the Director-General, Budget Office of the Federation, Ben Akabueze, said the Office had introduced a new system known as Citizen Portal.

According to him, the portal which can be found on the budget office website, provides insights into the 2017 budget in a non-technical way for Nigerians.

"It is important for citizens to understand the budget, especially its key deliverables and their role in its implementation.

"When citizens do not fully understand the budget, it significantly limits their ability to engage with the budget process and hold government accountable for the prudent management of financial resources entrusted to it," he said.

At the heart of engineering practice excellence is strongregulation that ensures real practice standards, - Engr.Kashim Abdul Ali, FNSE, sits atop the regulatory agency - COREN

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SPECIAL INTERVIEW

THE NEW FELLOWS OF NSE

DESTINED TO LEAD

Repositioning the education sector in relation to engineering profession on the card

SEEDING GROWTH

MIDAS TOUCH

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In association with Strategy + Business

GLOBAL PERSPECTIVE

A JOBLESS RECOVERY IN COAL Demand for the product is on the rise and the future looks bright.

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23 Nigeria petroleum minister addresses NOG on oil industry challenges and sustainability 45 ENERGY WHY IS AFRICA STILL IN THE DARK? “I think the problem is the lack of credible master plan - Dangote

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46 EVENT SEASONED PRACTITIONER HONOURED

The Nigerian Institution of Estate Surveyors and Valuers inducted 28 new fellows,calls for growth strategy 8 DEVELOPING STORY

ver here, there's an industry in which employment has been s i n k i n g r a p i d l y f o r y e a r s.

Underlying demand for the product it produces is shrinking because newer technologies produce alternatives that either cost less or have greater functionality - or both. In some areas, there are regulatory regimes set up to discourage the use of the product. In the past year, the sector has added a mere 1,200 jobs in the U.S. Then there's another industry that is undergoing what seems to be explosive growth. Demand for the product is on the rise. Through the first five months of this year, production was up 17 percent from the first five months of 2016. On the heels of this growth, new production facilities are opening, for the first time in years, to make even more. The future looks bright.

You can probably guess the punch line. I'm talking about the same industry: coal mining. And the paradoxical descriptions of the same industry highlight how tricky it is to discern the links between demand and employment in the 21st-century economy.

Let's review. Coal, in fact, has been in a long-term decline in the U.S., as power plants - the main consumers - switch to

cheaper, abundant natural gas (thanks, frackers!), and as emissions-free technologies such as solar and wind gain more traction and policy support.

In 2016, coal accounted for about 30 percent of electricity production in the U.S., down from 48 percent in 2007.

Since 2007, annual U. S. coal consumption has fallen about 35 percent (pdf). Not surprisingly, in the past decade, coal mining employment has fallen by about one-third.

At the same time, according to the Energy Information Administration, coal production is actually soaring so far in 2017. In the most recent week, production was up 23.7 percent from the same week in 2016; year-to-date, production is up a healthy 17.7 percent.

Daniel Gross,, executive editor of strategy+business.

(That's particularly impressive when you consider the overall economy is growing at about two percent annually.)

While demand for coal to produce electricity remains muted, the demand for metallurgical coal - which is used in steel production around the world - is growing nicely. Earlier this month, the first new U.S. coal mine in six years opened in Pennsylvania, to produce metallurgical coal.

So how can it be that while production is up 20 percent, employment in the sector, according to the Bureau of Labor Statistics, has risen by only 1,200, or 2.4 percent?

This is both one of the blessings and curses (depending on where you sit) of the modern economy, and should make us realize that the discussion about what creates jobs and how jobs are done needs to be more nuanced. Before widespread mechanization and automation, there was typically a oneto-one correlation between demand for production and the demand for workers. If you needed ten times more trees chopped down, or ten times more ditches to be dug, or ten times more coal to be shoveled out of the earth, you had to hire ten times more people to get it done. Hiring a person was the first resort.

But now that logic has been turned on its head. Hiring people is often a last resort. Often, the first response to an increase in demand is to try to get more out of existing employees. Companies are often reluctant to hire in part because demand can come and go quickly, and because - especially in rural areas - it is hard to find skilled people who are available. The next step is to try to get more out of the machines you already have. Meanwhile, the market is continually developing machines - and, increasingly, software - that enables employers to get more work down

One industry has been sinking for years. Another seems to be undergoing explosive growth. Can you guess the punch line?

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4 | www.cedmagazineng.com June 2017 Daniel Gross, executive editor of strategy+business.

INFRASTRUCTURE

FOLLOW THE ADVANCEMENT Experts task government, engineers on modern infrastructure system

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ace with declining infrastructural facilities, engineers have urged to embrace technology based devices in infrastructural management.The government at all levels has also been tasked to focus on building infrastructure that would address the challenge posed by inefficient transport services.

Speaking at a Business Luncheon, themed: "Business Infrastructure For The Internet of Things" organized by the Nigerian Society of Engineers (NSE), Apapa Branch, Lagos, the Director in charge of Innovations and Value Added Services, Inlaks Limited, Oladimeji Koyejo, said that technology provides complete business t r a n s p a r e n c y, t i m e l i n e s s o f intervention in terms of adverse effects.

He explained that the initiative is about maximizing the use of technology to harvest data that have hitherto been trapped in operational technology devices thereby starving the business enterprise of what the data could have been used for in business management review and innovations.

Koyejo who is an engineer posited that since the technology is about the release of trapped treasure of data present in leg acy operational technology infrastructure, Nigerian engineers must therefore brace up to determine data that are precious to their 48 | www.cedmagazineng.com June 2017

enterprise which are trapped in operational infrastr ucture and introduce things like sensors, network interfaces and protocols to harvest the information. He said, they could thereafter work on the data, and developed them into applications that could be used for the analytics and business intelligence.

While inducting about 19 fresh fellows, the National President of Nigeria Society of Engineers, Otis Anyaeji represented by Felix Ibitoye charged them to be innovative, and disciplined in discharging their duties to the society.

The NSE branch Chairman, Dr. Ombugadu Garba assured that the

Engr. Otis Anyaeji, NSE President

"The three tiers of government should promote the use of non-motorized mobility in the urban centres that now qualify as metropolis and megalopolis.

Light rail system should be encouraged from the city centre to the outskirts of the urban area.

Nigeria engineers would not relent in its roles in providing expert advice to government through programmes.

According to him, advancement in technological infrastructure have not been fully utilized in both public and private sectors of the economy thereby, making businesses to squabble amid lots of challenges.

Meanwhile, a Professor of Transport Geography, Emman Ogunbodede who spoke at the 10th Inaugural Lecture of Adekunle Ajasin University, Akungba Akoko, Ondo State with the theme, "Trading space for a Cost: A Transport Geographer's View", said government should prioritize its programmes towards solving the transportation problem as the country urgently needs infrastructural development to meet the relative growth in human population especially in the urban space.

Ogunbodede urged government to encourage the construction of circular roads in cities with over two million populations in order to aid efficient distribution of traffic within the urban centres.

He said that the movement of traffic that are not destined for the city centre should be diverted to circular roads or bye-passes with a view to assisting to distribute traffic not meant for the city centre to the periphery.

"The three tiers of government should promote the use of nonmotorized mobility in the urban centres that now qualify as metropolis and megalopolis. Light rail system should be encouraged from the city centre to the outskirts of the urban area. This will greatly discourage and reduce the congestion experienced in the Central Business District (CBD). Traffic Information System (TIS) should be incorporated into the existing traffic management system of cities", he said. www.cedmagazineng.com June 2017 | 5

ENVIRONMENT

PROFILE

A strong presence With hand-on experience in the profession and the practice, Engr. Kashim Abdul Ali, PPNSE, FNSE, NPOM, MNIM, FNATE, mni maintain strong presence in the engineering regulation ensures practitioners practice practice with pride and sense of belonging

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ngr. Kashim Abdul Ali, was born on June 10, 1958 to the Ali family of Ofugo, Ankpa Local Government Area of Kogi State, where he had his early education.

After his secondary education, he wanted to be a fighter pilot, but a false blood genotype result however cut short the dream and an opportunity for possible fame for a young man, growing up in a military era.

He therefore proceeded to acquire a Higher National Diploma from Kaduna Polytechnic, then a Bachelor of Engineering degree from the Federal University of Technology, Owerri both in Civil Engineering, and several other professional trainings, within and outside Nigeria.

On his Professional Career, Engr.

Ali commenced his professional practice with the Benue State Government in 1982 and was involved in several engineering Engr. Kashim Ali, FNSE projects few of which are: Direct labour construction of a 54m - length Reinforced Concrete Bridge at Ikpa-Mbatierev, on Wannune - Igbor Road; Planning/Progress Engineer responsible for the collation of designs and co-ordination of the annual Traffic Census for Federal Roads within Benue state; Resident Supervision for internal roads and civil works in the Commissioners' village and the Benue Hotel Markudi projects. Planning, Engineering Design and Direct labour construction of erosion control structures for heavily eroded sections of Anyigba - Idah Road in Kogi State, and part of Katisna -Ala township roads in Benue State.

In 1992, he joined the services of the Federal Capital Development Authority (FCDA) as a Principal Engineer, and rose steadily with a trail of legacy projects in Water supply and railway as testimonial. He was appointed Director/CE of the FCT Water Board in September 2005, where he proved his Midas touch, when under his leadership the Water Board moved from a distressed utility with heavy debts, to a buoyant one with surpluses in the first year! He repeated a similar feat in 2012, on the Abuja Rail Mass Transit project, moving the progress status rapidly, and now running its planned schedule.

Engr. Ali has also served nationally in various capacities at 6 | www.cedmagazineng.com June 2017

different times: Member, Board of the National Inland Waterways Authority (NIWA) , Member, Governing Board of the National Agency for Science and Engineering Infrastructure (NASENI); Member, Nigeria Integrated Infrastructure Master Plan (NIIMP) Committee; Member, Vision 2020 Steering Committee Co-Chair, Infrastructure Policy Commission of the Nigerian Economic Summit Group (NESG) Member, Policy Support Group (Technical Advisory Committee of Nigerian Economic Management Team), Special Adviser (Utilities) to the FCT Minister, Member, InterMinisterial Technical Committee on Additional Potable Water Supply Sources for the Southern Part of the FCT- 2004.

An avid and consummate professional engineer and recipient of the World Federation of Engineering Organizations (WFEO) Presidential Gold medal, Engr.

Kashim is a Registered Engineer, Fellow and Past President of the Nigerian Society of Engineers (NSE) and current President of the Council for the Regulation of Engineering in Nigeria (COREN).

He is also a Member of the National Institute (mni), Nigerian Institute of Management (NIM), the American Water Works Association (AWWA), and member of the governing board of the International Science, Technology and Innovation Centre (ISTIC) for South - South Cooperation under the auspices of the UNESCO. Engr. Kashim was conferred with the National Productivity Order of Merit (NPOM) Award in 2017 by His Excellency, Muhammadu Buhari, GCFR, President, Commander-in-Chief of the Armed Forces, Federal Republic of Nigeria. He holds the royal title of Olimene-Ata by His Majesty, the Attah Igala and Galadima Ankpa by His Highness, the Eje of Ankpa.

A family man and great respecter of women, Engr. Ali enjoys reading, current affairs, travelling, walking and watching extreme sports. He is happily married to Hajiya Hadiza Ali and they are blessed with children.

We at CED Magazine congratulate you this milestone achievement and as you receive the CED Magazine special recognition certificate Award. Congratulations!

technology or country by country.

Almost certainly I would choose country by country in an attempt to tap into the competitive dynamic between countries and their utility service territories.

Fifth is that, to the extent I could save money on the Global 100's energy procurement against their 2017 spend, I get to use a portion of that savings for a marketing/PR campaign on behalf of the Global 100. While this green dream of mine is innately collaborative, it is not naive. There will be laggards and recalcitrants. I need to have the ability to play into the competitive dynamic between companies: Coke versus Pepsi.

McDonald's versus Wendy's. Marriott versus Hilton.

If one protagonist in a competitive sector is 'all in' - doing the right thing by the planet - and the other is not, I want to let the customers they compete for know, particularly millennials.

Sixth, I want to be able to pump a second portion of the savings we achieve into a dedicated venture capital or private equity fund to address energy poverty around the world with cleanenergy solutions. Why, you ask? Because it is the right thing to do, and that is simply who we are as an industry.

Seventh, I get regular access to the Csuite of the Global 100, particularly their CFOs. Not only are the CFOs critical, because they are the de facto impediment to sustainability progress in most corporations, but because there will be a lot of financing associated with our global clean-energy build-out, and I will need the CFOs to play along on such ideas as collective offtake

THE INTERNET OF THING A company can keep track of their entire fleet; there is satellite vehicle telematics to monitor the equipment. Push-to-talk service with the use of satellites in a no cell service area is useful. Lone worker protection, for a utility worker for example, in a remote area can benefit from the tech."

When it comes to the digital connectivity market, there are things that contractors need to know. Case in point: implementing new technology requires

agreements.

Eighth, I will have to beg the CFOs' indulgence to play hardball with the financial institutions with which they do business. My message to the banks is that if you want to do business with the Global 100, you need to help finance our clean-energy build-out. Plus, I need competitive ter ms and I need innovation from lenders in terms of financing these new clean-energy facilities.

Specifically, given the pace of change in every one of the Global 100's core businesses, it is nonsensical for corporates to sign up for more than a 10-year power purchase agreement in any location. There needs to be a new financing solution to "the tail" risk. That risk should not, need not, be taken by the corporate off-takers.

My ninth and 10th conditions require the personal commitment of the Global 100 CEOs. Ninth, I want the CEOs, individually and collectively, to sign on to a "no more excuses" pledge because, quite frankly, the planet has no more time for them.

The fast-food chains that can't install solar because of the franchisees; the hotel management companies that say they are stymied by the actual hotel owners; the big-box store occupants who shrug their shoulders because they don't own the big boxes they occupy.

I could go on, but you get the point.

The pledge I want CEOs to make is simple. In short form, "If your brand The pledge I want CEOs to make is simple. In short form, 'If your brand name is on a building, a storefront or a box, you own its carbon footprint.'

name is on a building, a storefront or a box, you own its carbon footprint."

If you thought that one was rough, wait for my final condition.

Tenth, as my mandate is to make the Global 100 carbon neutral by 2025, eight years into the future, more than 90 percent of the CEOs who launched this initiative in 2017 will be gone by then. I want the current Global 100 CEOs to pledge that to the extent they are involved in the orderly selection of their successors, that as a precondition to that selection they will insist that their successor reaffir ms his or her commitment to our "carbon neutral by 2025" effort.

Those are the 10 conditions of my "what-if."

If we, the Global 100, reorder our own energy procurement so that it is carbon neutral, we will have done a lot.

We truly will have moved the needle towards a clean-energy society. We will have reaffirmed our own core values.

We will sleep better at night feeling good about ourselves.

But we won't have won the war against global warming. Energy consumption outside of the big corporate sector dwarfs that from within. We need our collective initiative to create a huge ripple effect.

If we successfully can leverage our collective purchasing power to get a country or a utility to go 100 percent carbon-free itself, then we truly are on the path to victory in the pivotal battle of our generation.

But how to do that is a green dream for another day.

David Crane, Senior Operating Executive Pegasus Capital Advisors

and investment in both time and money.

Cohen says, "They need to realize this

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ENVIRONMENT

DEVELOPING STORY

POWER PLAY My clean-energy green dream

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was privileged to participate last week in the Corporate Eco Forum's annual confab - a remarkable event in which top sustainability professionals from our biggest and most forwardleaning corporations get together both to ideate and to speak practically about overcoming obstacles on the road to becoming carbon neutral.

This year's challenge to each participant was to ask themselves "What if ?" I used my time there to answer the question: "If I could be anything and do anything I want right now to win the fight against climate change, what would it be?"

My answer: I would have the world's 100 largest corporations put me in charge of their collective energy procurement worldwide, with the mandate to make them all 100 percent carbon-free by 2025.

My thinking was that with the power to exercise their collective purchasing power, the changes we would bring about in the way energy is produced, transported, financed and consumed would be transformative. And in this political environment, the catalyst to transform the way we live can only be demand-driven.

The world's biggest companies, 46 | www.cedmagazineng.com June 2017

David Crane The world's biggest companies, acting together, have a level of demand that can compel society towards the clean energy economy.

acting together, have a level of demand that can compel society down the road towards the clean energy economy.

As this is my green dream, I am not only going to assume that the world's 100 biggest companies, who represent roughly $15 trillion in market cap, will entrust in me their energy budget for the next eight years, but also that they are literally begging me to do it. They consider me the Mother Teresa of clean energy and, as such, I have the clout to

dictate the terms of my procurement engagement.

I concede only one condition, which is that they will not spend more on energy in 2025, in real terms, than they did in 2017. In exchange, they agree to the following 10 conditions.

First, my procurement organization is not a club, alliance or association but an actual unified purchasing entity. The Global 100 assign to me its annual energy budget and I deliver physical energy to meet its needs which, by 2025, will be carbon neutral. It is very simple.

Second, I get to be responsible for all corporate energy procurement, not just electricity. I get to be responsible for transportation fuels as well. This is important because we will be able to optimize only if we can more fully integrate our two massive conventional energy delivery systems - electricity into buildings and gasoline into cars - into one system, thereby enabling the use of the latent secondary storage potential of battery-powered transportation as a partial remedy for the fundamental intermittency of renewables and, equally, using car charging as an energy sink for excess renewable energy at times when it is not needed for traditional uses.

While I am at it, I also want to talk to those of the Global 100, typically the beverage companies, which include in their long-term sustainability goals "fresh water neutrality," about helping them with desalinated fresh water produced at night by with excess wind power and during the midday duck's belly with excess solar.

Third is that I get to be responsible for energy management at the Global 100 so that I can implement large-scale energy-efficiency programs. It is nonsensical for me to be responsible for energy procurement, production and delivery but not for how energy is consumed. It would be like trying to pass off counterfeit $100 bills with Ben Franklin on one side and nothing on the other. It just won't work.

Fourth, I get unilateral discretion to decide when, where and how I roll out my 100 percent green procurement company by company, technology by

CHARTING ROAD PATH Nigeria requires US$215.1m to complete East-west road

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he commission and the Ministry of Niger Delta Affairs need over US$215.1m to complete the construction of the East-West Road in Nigeria. Mr. Nsima Ekere, the Managing Director, Niger Delta Development Commission (NDDC) revealed.

However, the NDDC is looking to

partner with its supervising ministry and private sector investors on the construction of the East-West road.

"Over N70 billion is needed to complete the road. So, the strategy will be to harness private sector collaboration to complete the road. The portions that have totally collapsed will be addressed

ENERGY EFFICIENCY Musanze hydropower plant in Rwanda launched

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usanze hydropower plant was officially commissioned last week with the ceremony presided over

by Rwanda's infrastructure minister.

The plant, which is expected to inject at leasr 3.6MW to the national grid will be developed in stages.

According media reports, the publicprivate partnership (PPP) project will be constructed in two phases: Rwaza I and II to generate 2.6MW and 1MW respectively.

The plant is projected to reach completion in July next year having connected over 100,000 households to the grid.

Media reported that the publicprivate partnership (PPP) power project will be constructed on the Mukungwa

River, Nkotsi Sector in two phases; Rwaza I to produce 2.6MW, and Rwaza II will start later along the same river to add one megawatt to the national grid.

The plant is expected to be complete by July next year, connecting more than 100,000 households to the grid.

Rwanda's DC HydroPower, identified and developed the project through the viability stage and signing of the Power purchase Agreement (PPA) with the Rwanda Energy Group.

The firm's CEO Chad Bannick expressed his optimism of being included in Rwanda's initiative to reduce greenhouse gasses and provide clean, renewable energy to the citizens.

According to media reports, Frontier Energy Company from Denmark and

immediately," said Nsima Ekere.

He added that, the Eleme-Refinery junction section was in a very terrible state.

"It is so bad that a 10-minute journey on that axis now takes three hours. That section of the road has failed and we will get contractors to the site immediately," he said.

Nonetheless, the construction of the remaining sections of the East-West road will be handled by many contractors. The road, which is a strategic link to the oil and gas industry in Nigeria, connects Edo, Delta, Bayelsa, Rivers, Akwa Ibom and Cross River states.

The commission is embarking on a centralised e-project management scheme, which will reduce waste and costs on project management and rather improve on the project management capabilities.

NDDC projects will be managed from a central project management platform all over the region.

"The essence of this is to ensure a robust project management portfolio and reduce waste and costs," said Nsima Ekere. "We are determined to do things differently.

We are determined to leave behind a new and improved NDDC. We are determined to reform our systems to help us reduce the incidents of abandoned projects," he added.

ResponsAbility Renewable Energy Holding joined DC HydroPower as investment partners during the final stages of development.

The Musanze hydropower plant is being supported by the German and US governments as part of the US government-led electricity access initiative, Power Africa, and Germany's state-owned development bank KfW. It is reported that Germany injected $6m while the US was more involved in feasibility studies. The US ambassador to Rwanda Erica Barks-Ruggles assured Rwanda of USA's support as far as their energy initiatives are concerned.

She also said that American companies will be driving investment into the company's mini-hydro sector while pointing out the progress so far with an aim to reaching the set energy targets.

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ENERGY

DEVELOPINGSTORY STORY DEVELOPING

INTEGRITY TEST

of Africa", Eko Atlantic will contribute 10 million square meters of new After testing, seven tower blocks found to have similar cladding as Grenfell residential, commercial, retail and Tower. These blocks will undergo further testing to determine if they are safe. recreational space to the Nigerian capital. The new-build city will rival similar cities such as Dubai and AbuDhabi, and will be one of the most vibrant and desirable locations in East Africa.

Structurally sound and sustainably engineered, a bounding wall, known as the Great Wall of Lagos, will separate the new city from the sea beyond, and a 24/7 power supply will facilitate all of the residents' needs around the clock.

As part of the new development, accommodation for over 400,000 residents will be provided as part of the residential side of the project. Offering additional housing for dwellers in fter the tragic fire that swept these seven blocks are safe. If, after Nigeria's capital city, which is currently through London's Grenfell Tower these subsequent tests, the cladding is suffering from a housing shortage, a on June 14, killing an estimated 79 deemed to be unsafe, the residents will mix of short and long term apartments, people, the British government ordered be rehoused until the cladding can be houses and condos will be available tests to be carried out on buildings replaced. across a broad pricing spectrum, across England with similar cladding.

Meanwhile, the London borough of making potential residents a priority for Information is still coming out about Camden has immediately begun the new island. what caused the fire and why it spread removing cladding from five tower The Marina District will not only so quickly, but the initial belief is that blocks deemed to be unsafe according provide business opportunities and cladding added during a recent to independent testing by the Camden commercial spaces, but also residences refurbishment may have played a large council. The cladding was found to and hotels. A number of new hotels are role in causing the fire to spread. An possess similarities to the cladding used planned within the scheme, including a ongoing criminal investigation will on Grenfell Tower. As this cladding is 500-key new-build 4 star hotel and determine if the cladding complied removed, 24-hour safety wardens are resort that will feature a wellness centre with the relevant fire and building stationed in each of the blocks, and business and conference facilities. regulations. according to The Telegraph.

Residences and hotels will be situated In total, tests for 600 high-rise Grenfell Tower's displaced residents on the Azuri Peninsula overlooking the buildings have been ordered by the are being moved to a currently marina and benefiting from idyllic British government. It is unknown how unfinished luxury block about two views across the waterfront and many of those buildings have already miles south of the scene of the fire. The cultivating a world of "effortlessly been tested, but according to Corporation of London purchased 68 luxurious living". The first of these theguardian.com, seven blocks have units for the families displaced by the hotels and residences are set to open been found to use combustible cladding fire. This plan has drawn mixed this year. similar to that used on Grenfell Tower. reactions since it was announced Further tests will be done to ensure Eko Atlantic Hotels Eko Atlantic is a dynamic new city that will rise from the Atlantic Ocean, Eko Atlantic Hotels to open in new Nigerian city adjacent to Victoria Island in Lagos, Nigeria the biggest and fastest growing city in West Africa. It will be built on new swathe of reclaimed land land that is being reclaimed from the from the Atlantic Ocean and close sea, and is now for sale.Eko Atlantic will to Victoria Island in Lagos, become home to at least 250,000 Nigeria, will be home to a series of new residents, with commuter volume hotels that will form part of the Eko expected to exceed 150,000 people Atlantic development. daily.

Billed as the "new economic capital

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NEW CHAPTER UNFOLDS

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THE INTERNET OF THING Top 3 Construction Challenges Solved by Technology

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he Internet of Things (IoT) brings digital connectivity to everything.

Sensors and software use analytics to process the data in a manner that generates alerts when appropriate. This technology is rapidly being applied to many application on the construction jobsite.

Worldwide IoT markets are poised to achieve significant growth with the use of sensors, cameras, equipment, telematics, and platforms that are used to help implement precision digital control and send alerts for the management of devices and machinery. Visualization and digitization let people better control devices and mechanical things.

Providers of IIoT (Industrial IoT) aim to implement asset efficiency solutions.

The explosion of data comes from the IoT digital onslaught of streaming information so quickly that it needs to be paired and processed in realtime to look for anomalies, changes, set alerts, and provide automated service and response to shifts.

Transparency is a key benefit of IoT. Use of IoT sensors and cameras represents a key milestone. Digital controls are further automating flying and driving. New materials and new designs are bringing that digital transformation forward.

The uses of the IoT are quite diverse and powerful. Digital connectivity can be very useful on the jobsite for those that respond quickly. Taking equipment, people, and materials and connecting

them will all jobsite personnel to make realtime decisions about materials, supply chains, telematics, and ultimately, the construction project.

Connectivity in Construction Some problems have been identified that can be solved through connectivity.

Jeffrey Cohen, vice president, asset & security solutions, Telogis, says the challenges at the top of the list for c o n t r a c t o r s a r e v i s i b i l i t y, standardization, and lost administrative time at the jobsite.

The good news is the jobsite is becoming more connected-and providing a means to create the visibility needed in the field.

Tim Last, vice president and general manager, IoT line of business, Iridium, says as technology becomes cheaper and more prevalent, we are seeing constr uction professionals put connectivity into more things.

At the jobsite, for example, the ability to keep track of "things," is becoming more prevalent. He says tracking tools to equipment is growing. Being able to locate items improves efficiency and makes the jobsite safer, explains Last. He adds, knowing where everything is keeps the jobsite moving. Projects in remote areas have unique needs and the ability to keep track of everything makes for a more efficient jobsite.

Even though the benefits are apparent, adopting the IoT can take some time and there can be some push

back.

Cohen says adopting technology in general and getting away from traditional behavior or "what was done in the past" always seems to cause stumbling blocks for adoption. Cohen explains while there are many ways to slice and dice the data, It can take time and it forces everyone to think about their business and create a benchmark of what they holistically want and how they want to achieve it.

Additionally, he adds, there is always some hesitation on the part of contractors to adopt all this new technology right away, which is holding back widespread adoption.

Iridium's Last goes on to say, adopting new solutions comes down to the use of technology in the industry. "It isn't exactly in the DNA of the owners and contractors, but it is getting easier because people are getting used to the amount of technology they use."

Still, the cost of the tech is also a challenge. For most construction companies it has to make sense from a return on investment perspective. Most contractors want to know exactly what the ROI will be and when. However, on the flip side regulations can create drive technology innovation or it can do the opposite and it can slow down progress because it has to be monitored and reporting systems can be much more complicated. "Contractors need to find the right companies," says Cohen Benefits Realized Despite the opposition, the benefits of having a connected jobsite are numerous.

Technology solves three challenges: 1.

Visibility 2.

Standardization 3.

Administrative Time Cohen says, "Technology solves three challenges: visibility, standardization and administration time. There is increased visibility, the standardization of the data, and lower administrative time, which ultimately optimizes your work."

Additionally, there are some ancillary benefits that come along with this technology such as heightened safety and lower costs, as data is more readily available to the contractor.

Last says, "A project can move along faster with technology. With any business solution it will help the jobsite. www.cedmagazineng.com June 2017 | 45

ENERGY

AFRICA REPORT

MEETING ENERGY AFRICA NEEDS Why Uganda is the next energy investment destination

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ganda's immense power potential and enormous energy investment opportunities will be in focus when stakeholders and decision makers meet for a strategic two-day conference and showcase during the inaugural Future Energy Uganda in Kampala from 12-13 September 2017.

"The numbers in Uganda's energy sector speak for themselves: the country is without a doubt the next energy investment destination," says Future Energy Uganda event director Le-ann Hare-Keymer.

She explains: "Uganda aims to grow installed capacity from 868MW to 4100MW, 2002km of transmission lines and 100% of household electrification all by 2030, as part of projects worth USD92 billion.

Furthermore, IPPs account for 58% of generation capacity which is set to grow as a number of renewable energy projects develop. Future Energy Uganda aims to facilitate and fast track the progression and growth of the energy sector."

Future Energy Uganda will provide a meeting platfor m for project developers, finance houses and multilateral investors, construction and planning companies as well as technology providers from Uganda, the 44 | www.cedmagazineng.com June 2017

region and from the rest of the world.

The event will demonstrate the proactive nature of Uganda to develop the sector efficiently and effectively.

"We welcome this initiative" Future Energy Uganda is officially supported by the Ministry of Energy and Mineral Development. "We welcome this initiative, realising that it fits within our plans of providing adequate and reliable energy for social and economic development of our country," says the Ugandan Minister of State for Energy, Hon. Eng, Simon D'Ujanga, in a letter of support, adding:

Yoweri Kaguta Museveni Uganda's president

"we recognise the importance and role power plays in fulfilling the industrial, economic and social potential of Uganda".

He adds: "we are glad that you have chosen to have this conference hosted here in Uganda. We note that Future Energy Uganda will be part of a national event "The Energy Week", which has been running for over 10 years, and highlights the need to use renewable and alternative sources in a sustainable manner."

Uganda's energy future Some more exciting, current statistics about the Ugandan power sector and development plans include: Grid expansion is set at 1.42 million new rural connections by 2030 to connect 570 000 rural households - a USD 6.2 billion project.

Uganda has commissioned a 10MW solar power plant, the largest in East Africa.

The country has a strong focus on renewable energy going forward with renewable energy share goals of 96% by 2030 and 100% by 2050.

From 2011 to 2015, USD 274.96 million was invested in clean energy in Uganda.

The country is targeting a combination of on-grid and off-grid power generation through 2030 with a projected connected 11,097GWh to 14,080GWh and an off-grid projection of 233GWh to 267GWh. Uganda's solar PV market is rapidly growing with government incentives such as tax breaks and consumer subsidies aimed at attractive private sector investment.

Uganda has an estimated geothermal resource potential of 450MW. Three main large hydropower sites are planned for Uganda, with the first expected in 2018. Current hydropower projects include: - Bujagali Hydroelectric Power Station 250MW - Kiira Hydroelectric Power Station 200MW - Nalubaale Power Station 180MW - Karuma Power Station (under

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DEVELOPING AFRICA REPORT STORY UGANDA ENERGY construction) 600MW - Isimba Hydroelectric Power Station (under construction) 183MW - Ayago Power Station (proposed) 600MW World Bank: Uganda has made substantial progress In a recent World Bank study on the "Financial Viability of Electricity Sectors in Sub-Saharan Africa", Uganda was reported as one of only two countries (together with Seychelles) who have a financially viable electricity sector.

According to the study, "although these results should be looked at in context, these two countries have continued to display good operational performance. Uganda has made substantial progress in reducing transmission and distribution losses."

Leading energy platforms Future Energy Uganda is organised by Spintelligent, a multi-award-winning Cape Town-based exhibition and conference producer across the continent in the infrastructure, real estate, energy, mining, agriculture and education sectors.

Other well-known events by Spintelligent include African Utility Week, Future Energy East Africa (formerly EAPIC), Future Energy Nigeria (formerly WAPIC), Future Energy Central Africa (formerly iPAD Cameroon), Agritech Expo Zambia, Kenya Mining Forum, Nigeria Mining Week, DRC Mining Week and EduWeek. Spintelligent is part of the UK-based Clarion Events Group.

Future Energy Uganda dates and location: Strategic conference: 12-13 September 2017 Venue: Serena Hotel, Kampala Websites: http://www.future-energyuganda.com/ Twitter: https://twitter.com/FutureEnergyHu b Linkedin: FutureEnergyAfrica 10 | www.cedmagazineng.com June 2017

INNOVATION

DEGRADED RANKING South Africa's property market affected by ongoing recession

FUTURE CONSTRUCTION Innovation 2050: 10 predictions for the future of the construction industry

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outh Africa's property market has been on a steady decline for some years said sellers were holding on to their now. Property economists in the country properties for longer in the hope that have attributed this to the ongoing they would get a better price. He said they had become reluctant to sell. He further recession. advised people to buy as the prices would According to FNB's house price index, be relatively lower, owing to the low there is a growth of 4.7%. This is below demand and oversupply of houses. inflation and as a result may force sellers However, gated estates seem unaffected to sell their houses at a loss. by the economic times, a fact Dumisa For instance, a person who bought a attributes to their being generally well off. house in 2001 and sold the house now Keith Wakefield, of Wakefields estate could make a sizeable profit of anything agents, said the property industry was not up to 50 or 60%. However, a person who immune to what happened in the bought a house last year and was selling it economy; house volume sales were now would be making a loss.

According to John Loos, one of FNB's down.

Wakefield said the downturn in the economists, with the lower demand to economy would make it harder for buy property, houses stayed on the people who wanted to buy property to market longer. The fact that most that get loans for bonds, even sellers refused to lower their though the banks were keen asking price for fear of on supplying them. making a loss is also proving Sellers should have to be problematic. realistic prices.

Just as well, Loos said that the s i n c e p e o p le with stagnant economy, coupled overpriced homes who with the ongoing social f a i l e d t o t a k e i nto tension in the country does consideration the current not bode well for the future market-related prices would as it will create political and incur difficulties and may be economic instability. forced to drop the price Another economist, eventually.

Professor Bonke Dumisa, President Jacob Zuma

he construction industry will be taken over by robots. Not completely, but more and more construction sites will become human-free.

That's the message from Balfour Beatty in its latest report, Innovation 2050.

Here, we take a look at the 10 predictions for the construction industry of 2050.

It may seem far away, but with the incredible advances in technology, 2050 seems just around the corner.

1.

The industry will become increasingly focused on innovation and both contractors and customers will become less risk-avers 2.

The shape and offer of the infrastructure industry will change significantly, with new business models, products and services.

3.

Infrastructure will move on from concrete and steel to include new materials 4.

New jobs and industries will be created - and some will disappear, especially low or zero skill roles and those relying repetition of tasks.

5.

Thinking only about design and construction will become an outdated concept as infrastructure becomes multi-functional.

6.

Robots will become more prevalent in construction INNOVATION IN CONSTRUCTION

Ensuring that the digital strategy is adopted throughout the supply chain will be key to ensuring that the value of the changes is maximised.

Regulatory systems must be ready for the change To be able to embrace new technologies as they emerge, countries around the world need to be ready with the various regulatory frameworks required and infrastructure and construction companies need to ensure that they have the skills, knowledge and systems in place to build the associated infrastructure.

Infrastructure owners and designers, regulators and policy makers will need to ensure energy systems are ready for the digital revolution Infrastructure design will need to take account of climate projections and

7.

Construction will get faster, using 3D and 4D printing, and selftransforming objects which selfassemble.

8.

New, disruptive ideas will emerge, for making mass transit faster, safer and less damaging to the environment.

9.

We will increasingly use more w e a r ab l e t e c h n o l og y s u c h a s exoskeletons.

10.

Direct neutral control over devices and vehicles will be accessible to the industry How is the construction industry already utilising VR? In the UK, NBBJ in London is already using VR for stakeholder consultation on projects, speeding up both design and decision-making processes significantly.

NBBJ's partnership with start-up Visual Vocal is a breakthrough virtual reality (VR) productivity platform. The tool allows distributed project stakeholders to immerse themselves into unbuilt environments and provide instantaneous feedback to inform a collaborative design process. Currently, distributed teams design buildings using 3D modeling software. impacts as the number of sensors in the world increases exponentially, putting pressure on energy systems. The use of renewable energy may need to significantly increase and new technologies and ways of storing data will have to be developed.

To play their part in this, regulators and policy makers will themselves need to upskill and ensure that they are providing frameworks which allow industry and digital solutions to flourish, while incentivising the development of new energy solutions and ensuring that resources are not irrevocably depleted.

Infrastructure companies must be prepared to process and use huge amounts of data For the construction and infrastructure industry, aggregating and making sense of significantly increased volumes of data being continuously generated by a wide range of sources will require new software

But when it comes time to share those designs with clients, traditional communication methods such as email often result in time-consuming and inconclusive rounds of feedback. By combining VR with mobile and cloudbased communications platforms, Visual Vo c a l t r a n s f o r m wo r k f l o w communication and timeframe. In addition to visualization, the tool allows project teams to vote and comment on design choices, which then enables architects to consolidate feedback to make design decisions faster.

Visual Vocal is live on projects in the UK and the US, including the new Henry Royce Institute in Manchester.

David Lewis, Partner at NBBJ in London said: "As the design of the Sir Henry Royce Institute in Manchester continues to develop, we are experiencing the benefits of Visual Vocal in terms of how it lets us solicit input from the building's end users.

The project will bring nine university and institutional stakeholders and a number of lab typologies under one roof to support advanced materials research, and at this stage of the project meaningful decisionmaking is crucial. Visual Vocal's interface is simple and portable - all users need is a smartphone, the app and a set of inexpensive viewers that snap onto the phone - and yet the feedback is fast, productive, collaborative and enjoyable.� and algorithms, skilled data analysts, better information management and insight and the creation of mega databases which understand every part of the built environment. Data gathering and storage will have to become more intelligent to ensure that information is being used to drive improvements in the way systems operate and infrastructure is used and built.

Future-proof new infrastructure as it is built The digital technologies used to operate and maintain infrastructure will continue to evolve once the infrastructure has been built. Infrastructure owners and operators will therefore need to develop strategies to integrate and use different generations of technolog y as well as Intelligent Information, effectively managed and reused.

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INNOVATION REAL ESTATE

DEVELOPING STORY

INNOVATION IN CONSTRUCTION

10 ways the construction industry can prepare for a future of innovation

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he Innovation:2050 report from Balfour Beatty looked at 10 predictions for innovation in the construction industry, and the results were telling - as the industry continues to embrace innovation, robotics, automation and disruptive ideas will emerge resulting in a much faster, safer and environmentally friendly construction industry.

But the real question is, how can the industry prepare for the future of construction innovation?

Welll, Balfour Beatty has listed 10 recommendations: The construction and infrastructure industry must become more agile Tier 1 contractors will need to become disruptors "The business landscape will become less defined and predictable and there will be more cross-industry competition as companies try new models and products and develop multiple fields of expertise.

Pan industry partnerships will emerge between large technolog y players (Amazon, Google, Microsoft), bespoke SMEs and construction businesses as the market for ConstrucTech emerges.

Incumbents will therefore have to become agile - there will be no room, or time, for complacency. Companies which have relied on one, traditional approach will need to themselves become disruptors or 42 | www.cedmagazineng.com June 2017

put in place strong strategies to avert the disruption."

Cyber risk must be taken seriously and programmed in Governments will have to scale up and invest in national cyber defence programmes to protect critical infrastructure. However, the infrastructure industr y must take its share of responsibility in tackling these issues. It must ensure that data is treated as a major asset. Cyber risk has to be programmed in, much as any other risk would be.

Governance must be strong and best practice embedded and rigorously followed. Employees must be properly trained and security software kept up to date.

Customers will rightly become increasingly demanding on cyber-security compliance and the legal implications, given the significance of some of the data involved, are significant. The infrastructure industry must take the risks seriously and be proactive in tackling them.

Infrastructure companies will need to balance the benefits of increasing the amount of data they collect, with privacy concerns Demands for regulation around privacy are likely to escalate, and infrastructure companies embedding sensors will need to

ensure that they respond to the privacy challenge by ensuring the highest levels of encryption and anonymisation.

“AFRICAN CENTURY MAY FINALLY BE AT HAND Having the world's most youthful population and solid economic fundamentals, the continent is in the best possible position to benefit from the digital revolution.

The sector will need a more agile workforce with new skills The sector will need a more dynamic, agile workforce, skilled at challenging conventional solutions. This means that education systems around the world will have to respond to the challenge of teaching students the skills to solve problems that have not occurred or even been imagined.

The infrastructure and construction industry will also have to improve its image and to explain the wide range of exciting and challenging roles available, in order to attract the skilled individuals, it needs to undertake its digital transformation.

Customers must encourage and support innovation Customers must demonstrate courage and help companies adopt new technology by, for example, examining the incentives, both regulated and non-regulated, that govern infrastructure networks, in order to address the fact that they often promote low risk behaviour and impact on procurement processes.

Overly-detailed specification should be challenged where it prevents greater innovation and hinders suppliers in adapting to unexpected challenges which emerge once contracts have been signed.

Barriers to developing and accepting innovative ideas must also be challenged and regulators and other key players should be encouraged to facilitate innovation, while those companies which pioneer innovative new ways to drive efficiency while maintaining quality should be drawn out for reward.

Companies must drive digital throughout the business and supply chain Companies that commit to digital have to change the way they design, procure and build. They must take a strategy-based digital approach and drive it across the business, changing and improving the way the business operates and interacts with its customers.

Digital transformation cannot be the preserve of one specific team. It must be integral to the whole business at every stage, owned by those in leadership positions, in particular. ?

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ith the emergence of new technologies enabling the Energy and Fourth Industrial Revolutions, Africa has a historic opportunity to tackle challenges such as access to electricity and the mismatch between regional supply and demand, as well as to create an ecosystem that supports entrepreneurship and builds domestic markets.

Having the world's most youthful population and solid economic fundamentals, the continent is in the best possible position to benefit from the digital revolution. This will be achieved by leapfrogging outmoded models of industrialisation.

How this will come about is best illustrated by the continent's power challenge. Today, some 600m people in sub-Saharan Africa lack access to electricity.

Even in major urban centres, businesses often have to contend with power interruptions and must maintain expensive and polluting fossil-fuel generators. Until recently, solving this problem would have taken decades and required massive investment in generation and grid connections.

Today new technologies are bringing reliable and sustainable power within easy reach. The most promising solutions for Africa are microgrids powered by sunlight or wind. These

systems have yet to make big headlines, but utilities and businesses are increasingly turning to them to provide power.

Renewables-powered microgrids can help improve grid stability and offer a clean and efficient alternative to traditional generators. Renewables also often prove to be the most economical solution for new electrification projects.

Enormous opportunities On the industrial side, Africa's focus should be on the significant mismatch between regional supply and demand.

This is best addressed by developing the continent's manufacturing base and increasing its productivity levels.

Today, incomes and consumer spending are growing faster than manufacturing output, leading to rising imports of many types of goods that could and should be made within Africa, including food and beverages, processed goods and more sophisticated products like automobiles, chemicals and machinery. There is an enormous opportunity for manufacturers in Africa to serve substantial demand generated by their own markets.

The immediate goal should be to keep more of the production value chain within the continent. Exports of goods

manufactured in Africa have been rising by about 2.5% annually since 2000.

Yet the continent still accounts for less than 1.5% of manufactured exports globally. Rather than exporting raw materials and importing finished goods, the economies of sub-Saharan Africa need to develop integrated regional value chains.

New technology offers the means not only to scale up production and drive productivity at existing enterprises, but also to unleash a new generation of entrepreneurs. The internet revolution in telecommunications and financial services has already shown that Africa can leapfrog older and more established technologies.

While few households are equipped with a landline telephone in sub-Saharan Africa, more adults own cell phones in South Africa and Nigeria than in the United States, according to a study by the Pew Research Center. In East Africa mobile banking has become a part of daily life for millions.

With the digital revolution in industry Africa has a similar opportunity to make rapid progress in industrial production.

Businesses can make use of big data and connectivity to remotely monitor machines, plants and facilities, and to develop new business models that rely on digital technologies to overcome distance and operate across borders.

Industry, especially manufacturing, builds and runs the machines that enable agriculture and other sectors to become more productive. It provides the materials and tools to build and operate infrastructure.

It raises people's incomes and opens up new opportunities for growth in the service sector. Manufacturing drives innovation, accounting for up to 90% of private-sector research and development spending.

By harnessing the complete value chain, and building a strong manufacturing sector with the help of technologies associated with the Energy and Fourth Industrial Revolutions, we may find the African century is finally at hand.

By Dr Ulrich Spiesshofer, CEO of the ABB Group.

www.cedmagazineng.com June 2017 | 11

AVIATION REPORT

INFRASTRUCTURE

AFRICA’S INFRASTRUCTURE

Construction of ports will have ripple effects on trade

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ew port terminals are being constructed in all corners of the continent at present.

The largest is the new container terminal at Ghana's biggest port, Tema.

Construction work began in January that will provide annual handling capacity of 3m TEU, or standard-sized containers, by 2019, making it the biggest container facility in West Africa.

It will be operated by Meridian Port Services (MPS), which is owned by BollorĂŠ Transport & Logistics, APM Terminals and Ghana Ports and Harbours Authority. The entrance channel will be deepened to 19m and a new 1.4km quay will have a draft of 16m, allowing Tema to serve vessels capable of carrying some 18,000 TEU, up from just 5,000 TEU at present. The world's biggest container ships are now capable of carrying 21,000 TEU. Record infrastructural investment Total construction costs are estimated at $1.5bn, of which the International Finance Corporation (IFC) is providing $667m and the MPS shareholders $333m, making it the IFC's biggest ever infrastructural investment in sub-Saharan Africa.

At the time the deal was confirmed, in August 2016, IFC CEO Philippe Le Houerou commented: "This investment will have significant ripple effects on trade, economic growth, and job creation, and is an example of how private sector engagement can open doors for transfor mative improvements in 12 | www.cedmagazineng.com June 2017

transport infrastructure."

South African transport utility Transnet eventually plans to develop a new container terminal on the site of the old Durban International Airport but the country's economic downturn and lower than expected trade volumes mean that it will be many years before it opens for business. In the meantime, Transnet is focusing on making its existing operations more efficient and effective.

It is deepening several berths at Durban and has also introduced an appointment system for the delivery of containers at the port. Freight forwarders are now given a fixed slot to deliver containers in order to spread activity over the course of the week. It expects to turn all trucks around within 35 minutes under the new system.

Other ports are also seeking to improve efficiency. For instance, the government of Tanzania has instructed customs offices and other state bodies at the Port of Dar es Salaam to start working 24/7 in order to make the most of the port's capacity.

In the longer term, a massive $690m is to be invested in deepening existing berths, constructing new berths, deepening the harbour to allow access for larger vessels and making other improvement. The World Bank agreed in April to lend $305m to the government, easing its access to the remaining funding.

Although the Angolan economy is suffering under the weight of low oil prices, China Road and Bridg e Corporation is pressing ahead with the construction of Phase 1 of the Port of

Caio after it secured a $710m loan from China's Export-Import Bank. Caio is located in the Angolan enclave of Cabinda, which is located close to mouth of the River Congo. The national sovereign wealth fund, Fundo Soberano de Angola, is to invest $180m in the project in return for a 31% stake.

Luanda hopes that industrial and processing investors will be enticed to set up operations next to the port once it is complete, and also that the investment will end secessionist sentiment in the territory.

The deepest berth at the container terminal will be 18m, allowing access to the world's largest vessels, so it seems likely that the port could gain most business as a transhipment port, at least in the first instance.

Enabling trade Another, smaller, port looks set to expand close to Caio. Despite being one of the most populous countries in Africa, with 78m inhabitants at present, the Democratic Republic of the Congo (DRC) has never had a significant port.

In March, international port operator DP World signed a memorandum of understanding to develop the Port of Banana. The existing port has a depth of just over 5m but the Gulf firm has agreed in principle to build a deepwater port and free trade zone.

This will require a great deal of dredging because although the river is very wide, it is fairly shallow. DP World is also close to securing a 30-year concession to develop a multi-purpose port at Bosaso in the self-declared autonomous state of Puntland in Somalia, committing itself to $336m in investment. In March it signed a 30-year concession to build and operate the port of Berbera in neighbouring Somaliland, with $442m pledged over the lifetime of the concession.

At a ceremony marking commencement of the concession, Sultan Ahmed bin Sulayem, the group chairman and CEO of DP World, said: "This is part of our vision to act as an enabler of trade and to facilitate growth by helping African countries develop their infrastructure‌ Investment in this natural deepwater port and free zone will act as a catalyst for the growth of the country and the region's economy."

Neil Ford

Mixed fortunes for African aviation Despite the travails of the global aviation industry, there is a lot to be optimistic about in the African airline sector.

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assenger numbers continue to rise year on year; 2016 was the safest year for flights in a decade; and new airlines continue to be set up even while others disappear. Perhaps the most heartening sight is the continued success of Ethiopian Airlines, which demonstrates that it is possible for African airlines to compete with their international rivals.

According to figures from the International Air Transport Association (IATA), there were no passenger fatalities in sub-Saharan Africa last year and no jet hull losses, with an accident rate of 2.30 per 1m departures, in comparison with an average of 9.73 per 1m departures over the previous five years.

Safety concerns continue to be raised over specific airlines. Although all carriers from Benin and Mozambique have now been taken off the European Union blacklist of airlines that are banned from flying in EU airspace, two new African carriers joined the list when it was updated in May: Nigeria's Med-View Airlines and Zimbabwe's national car rier, Air Zimbabwe.

Airlines grow Nigeria continues to struggle to produce airlines on a scale comparable with the size of the Nigerian economy. However, in May, the government announced that it had appointed a group of six companies, including German airline Lufthansa, to advise it on setting up a new national carrier, as well as on more general aviation sector policy. Abuja has vacillated in its attitude between seeking to set up a new flag carrier and hoping that the private

sector can fill the void.

Most recently, in February, the stateowned Asset Management Corporation of Nigeria was forced to take over the country's biggest airline, Arik Air, to p r e ve n t i t s c o l l a p s e. P r e s i d e n t Muhammadu Buhari has promised to create a national airline. The government has suggested that more than 10 existing but indebted airlines, including Arik Air, could be merged with the support of an international airline.

One airline that has been able to expand into Nigeria in the absence of a big domestic operator is Ethiopian. It has developed Addis Ababa as an important hub at the crossroads of Africa, Europe, the Middle East and the rest of Asia, and now flies to four Nigerian cities 20 times a week. It was scheduled to begin flying from Lagos to Singapore on 1st June.

Discussing the new Singapore service, the general manager of Ethiopian Airlines Nigeria, Solomon Begashaw, said: "We have a vision of being the leading African airline of the world. By 2025, we hope to have 180 destinations. We have been ordering aeroplanes and working on our human capital." In addition, Ethiopian's West African offshoot Asky, based in Togo, flies to 23 destinations, just seven years after it was set up.

RwandAir is another airline that is growing strongly, albeit from a low base. Its 11 aircraft include two Airbus A330s and three Boeing 737-800NGs, flying to 19 destinations in Africa and the Middle East at present. It plans to launch services to North America, Europe and India in the near future, starting with Mumbai,

London-Gatwick and New York.

RwandAir CEO John Mirenge told The New Times of Rwanda: "The future is very bright, especially when you look at where the airline was five years ago. We were carrying a quarter of the passengers we are flying today." The airline should be able to grow more quickly once the new airport in Kigali is built.

No progress towards single market The sector's big failing is the same as ever.

In 1999, 44 African governments agreed to introduce an open skies policy under the Yamoussoukro Decision. The aim was to open up heavily protected domestic sectors in order to increase competition, reduce costs and boost the number of passengers travelling across African skies.

Yet most states have failed to actually implement the agreement and protectionism still reigns supreme. For some reason, national airlines continue to be seen as symbols of national pride in a way that few other services are.

Speaking at the Aviation Africa conference held in Kigali in February, Elijah Chingosho, the secretary general and CEO of the African Airlines Association described open skies as now just a "pipe dream" despite the "significant economic benefits" that would accrue.

Only 15 countries are fully committed to implementing Yamoussoukro.

Given the geographical shape of the continent, the reluctance of more than 70% of countries to become involved makes it difficult to create the liberalised sector that was originally envisaged. As a result, African states are often better connected with other parts of the world than they are with each other.

IATA forecasts average growth in traffic of 5.4% in sub-Saharan Africa between 2016 and 2035, with the total number of international passenger journeys set to reach 300m by 2035. Yet there is no doubt that the sector is struggling financially.

Again according to IATA, African airlines collectively lost $700m in 2015 and $800m last year, the two worst results on record.

Chingosho said: "To reverse this state of affairs, the quest for a single aviation market should not be allowed to fail.

Failure would result in the African airline industry following the footsteps of the once-thriving African shipping industry, which has now virtually disappeared."

Neil Ford - African Business

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DEVELOPING STORY

ENERGY

ENERGY FUNDING CHALLENGE Africa Enterprise Challenge Fund boosts solar projects in Africa

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he Africa Enterprise Challenge Fund (AECF) strategizes to channel about $10 million towards solar projects in Africa with Zimbabwe at the core of this initiative.

The AECF is part of the Alliance for Green Revolution in Africa (AGRA) family and has been supported by g overnments (Australia, Canada, Denmark, The Netherlands, Sweden and United Kingdom), and international financial institutions (Consultative Group to Assist the Poor and IFAD).

AECF portfolio manager Victor Ndiege told The Herald Business that the

organisation is targeting both start up and already existing companies and the funding tenure will last up to five years.

"In 2010 we introduced a renewable energy portfolio and specifically for this session we have come to promote renewable energy projects which are focused on four countries across Africa namely Zambia, Malawi, Zimbabwe, and Sierra Leone.

"Presently we have 10 grantees in Mozambique who are profiting from our funding and they have received investment of 13 million in the last four years.

MAKE A STATEMENT WITH EXTERIOR The skillful use of exterior color for commercial buildings makes a statement about the company brand, creating an opportunity to stand out or make a statement to customers.

C

olor shapes our perceptions of the world around us. In fact, color affects us deeply on a personal and emotional level. The skillful use of exterior color for commercial buildings makes a statement about the company brand, creating an opportunity to stand out or make a statement to customers.

Although more neutral colors remain common for exteriors, vibrant accent colors are growing in popularity and creating a unique visitor experience.

The addition to the Children's Hospital of Philadelphia makes the campus inviting for children and their families 40 | www.cedmagazineng.com June 2017

with the use of bright colors. The rich hues in the Cherokee Casino Ramona represent the rich oil history in the

We have come back now with another $10million to be competed through and hoping to bring on board another 10 or 12 companies across the four countries. Our financial support thresh hold is between $250 000 to $1, 5 million for each of the companies who will be considered triumphant," said Mr Ndiege.

"Our focus is on companies which can come forward with ideas, saying we have been doing or we want to do it but the limitation is money… so would you give us money to carry on and we say yes but on a aggressive basis," he said.

Mr Ndiege highlighted that the organisation has a record of investing in agriculture across the continent and to date has availed funding totalling $256 million with them having injected $183 million.

"An example lies here in Zimbabwe where we have financed Better Agriculture a company that has been promoting chilli production with rural farmers and getting into regional and international markets.

"This has allowed a lot of farmers to get a main market for their produce and has also expanded the region's export markets;" said Mr Ndiege.

Chairman of the Renewable Energy Association of Zimbabwe Isaiah Nyakusendwa said the funding platform gives local players a big lift in terms of growing their business thereby getting a greater reach in the market.

Indian territory. The Walter Cronkite School of Journalism & Mass Communication at Arizona State University uses desert tones to create a stunning facade.

Color trends often vary regionally because they take cues from the local landscape. In the Southwest, adobe and golden summer tones are popular.

Exterior colors also look differently depending on the lighting which also varies by climate. For projects located in more extreme climates, it is beneficial to consider how the exterior will look with both lush vegetation in the summer and a stark, snowy landscape in the winter.

Valspar color experts can help bring your next project to life. Contact a Valspar to learn more.

NEW CHAPTER UNFOLD Eko Atlantic Hotels to open in new Nigerian city

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new swathe of reclaimed land from the Atlantic Ocean and close to Victoria Island in Lagos, Nigeria, will be home to a series of new hotels that will for m part of the Eko Atlantic development.

Billed as the "new economic capital of Africa", Eko Atlantic will contribute 10 million square meters of new residential, commercial, retail and recreational space to the Nigerian capital. The new-build city will rival similar cities such as Dubai and Abu-Dhabi, and will be one of the

most vibrant and desirable locations in East Africa.

Structurally sound and sustainably engineered, a bounding wall, known as the Great Wall of Lagos, will separate the new city from the sea beyond, and a 24/7 power supply will facilitate all of the residents' needs around the clock.

As part of the new development, accommodation for over 400,000 residents will be provided as part of the residential side of the project. Offering additional housing for dwellers in

FINANCING POWER Africa’s Biggest Wind Power Project Secures $870m Financing

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enya’s Lake Turkana Wind Power Project, which is meant to add an existing 300MW of reliable, low cost wind energy to the country’s national grid has reached a critical milestone, following the signing of over $870 million financial agreements in the capital city, Nairobi.

These agreements represent a major breakthrough to actualizing the biggest clean power energy project in Africa, spanning years of negotiations and fundraising, says Tshepo Mahloele, CEO of Harith General Partners, a pan-African infrastructure focused fund manager and a major investor in the project.

The project will be financed with a mixture of equity, mezzanine debt and senior debt.

The Lake Turkana Wind Power

(LTWP) project is the first of its kind in East Africa and will be the largest wind project on the continent to date, says Mahloele.

The parties at the signing ceremony were represented by lead developer and independent power producer, Aldwych, which is majority owned by the Pan African Infrastructure Development Fund (PAIDF).

LTWP is primarily responsible for the financing, construction and operation of the wind farm and comprise a grouping of investors and lenders with extensive financial and technical capabilities and experience on the African continent.

They include FMO, Vestas, Finnfund, IFU and a strong local sponsor KP&P on the equity side. The syndicate of banks is

Nigeria's capital city, which is currently suffering from a housing shortage, a mix of short and long term apartments, houses and condos will be available across a broad pricing spectrum, making potential residents a priority for the new island.

The Marina District will not only provide business opportunities and commercial spaces, but also residences and hotels. A number of new hotels are planned within the scheme, including a 500-key new-build 4 star hotel and resort that will feature a wellness centre and business and conference facilities.

Residences and hotels will be situated on the Azuri Peninsula overlooking the marina and benefiting from idyllic views across the waterfront and cultivating a world of "effortlessly luxurious living".

The first of these hotels and residences are set to open this year.

Eko Atlantic Hotels Eko Atlantic is a dynamic new city that will rise from the Atlantic Ocean, adjacent to Victoria Island in Lagos, Nigeria the biggest and fastest growing city in West Africa. It will be built on land that is being reclaimed from the sea, and is now for sale.Eko Atlantic will become home to at least 250,000 residents, with commuter volume expected to exceed 150,000 people daily.

led by the African Development Bank and comprises Standard Bank, Nedbank, EIB, DEG and Proparco.

LTWP will help diversify Kenya’s energy mix and reduce the country’s reliance on power production from oil and diesel power generators.

This project also forms part of Harith’s commitment to the United States backed Power Plan announced last year by the US President Barack Obama to bring more than 10,000 MW of electricity to sub Saharan Africa in a $7 billion investment push. Through Power Africa, Harith has committed $70m for wind energy in Kenya and $500m across the African power sector through a new fund.

In Kenya, electricity is mainly generated from hydro, thermal and geothermal sources. Wind generation accounts for less than 6MW of the installed capacity.

www.cedmagazineng.com June 2017 | 13

COVER OIL ANDINTERVIEW GAS REPORT

ENERGY

3.7

The built Environment Professionals’ Leadership Series on Sustainable Infrastructure

ENGR. KASHIM ALI, FNSE PRESIDENT, COREN

Ensuring engineering practice standards AT THE HEART OF ENGINEERING PRACTICE EXCELLENCE IS STRONG REGULATION THAT ENSURES REAL PRACTICE STANDARDS - ENGR. KASHIM ABDUL ALI, FNSE, SITS ATOP THE REGULATORY AGENCY - COREN Engr. Kashim Ali, FNSE since assumption of office as the president of the Council for the Regulation of Engineering in Nigeria (COREN) has made remarkable changes that has impacted solidly in the life of every engineering practitioners in Nigeria. With his hand-on experience in both administrative and leadership strategy, many Nigerian engineering graduates have seen reason to get registered to practice, which to a large extent has impacted positively on the economy of Nigeria .

14 | www.cedmagazineng.com June 2017

www.cedmagazineng.com June 2017 | 39

ENERGY COVER INTERVIEW

AFRICA REPORT

PERFECT CONNECTION

Uganda and Tanzania to construct electric railway lines

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ganda and Tanzania are looking to incorporate electric railway lines into their standard gauge railway transport network.

According to the East African newspaper, the two countries are planning to upgrade the SGR project after its installment to electric lines.

However, this will depend on the availability of sufficient energy supply.

Uganda's SGR project co-ordinator Kasingye Kyamugamba said the decision to go ahead with the incorporation of electric trains is as a result of assurance of adequate power from ongoing energ y projects.

Moreover, the option is more costeffective in the long term when compared to diesel.

Uganda and Tanzania are planning to buy trains with an electric element while Kenya's trains run on diesel engines.

Kenya on the other hand has announced that its newly launched SGR will have an electric line installed in the year 2021. Kenya's Transport Cabinet Secretary James Macharia said this is

because Kenya lacks a dependable source of electricity. However, he was quick to add that the diesel locomotive line that is currently operational has upgrading capabilities. A single electric line costs approximately $480m.

Electric railroads depend on the availability of electricity in a region, currently the supply is inadequate.

Uganda expects its power generation to reach 1,500MW in 2019, after the two dams inject an additional 783MW Karuma at 600MW and Isimba Hydropower at 183MW into the national grid.

Kenya's SGR was officially flagged off in May this year. The 472- kilometer project had initially been set for completion in December 2013.

Just weeks after the completion of the Nairobi-Mombasa line, phase two which will run from Nairobi to Naivasha will be an extension of the former and will run till it links up with Uganda SGR line and then to Kigali in Rwanda,

PARTNERSHIP THAT WORKS DRC seeks joint Chinese-Spanish offer to construct Inga 3 dam

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he Democratic Republic of Congo has announced its decision to consult Chinese and Spanish bidders of the Inga 3 dam project to join forces and submit a joint bid.

38 | www.cedmagazineng.com June 2017

The request will further delay the huge project that has been planned for around 30 years.

The government had said it would award the contract by the end of last

year with an aim to launch construction this year. In the running for the deal are two consortiums, one led by the Chinese Three Gorges Corporation and another grouped under Spanish construction company ACS. The Congolese government agency handling the project ADPI asked the two consortiums to present a single offer that would be suitable for both parties but did not set a deadline for starting to produce electricity. In September last year the agency said it wanted electricity production to start in 2021.

The Inga 3 dam project is expected to complement two ageing power stations built between 1972 and 1982 on the Inga falls of the Congo River 260km downstream from the capital Kinshasa and is projected to generate 4,800MW of power, equivalent to the output of three third-generation nuclear reactors, in a country where less than 10% of the population has access to electricity.

South Africa has signed an option to buy 2,500MW of power, with much of the rest planned for mining groups in Katanga in the south east which suffers from chronic electricity shortages.

The World Bank last July froze planned disbursements of a $73.1m grant aimed at funding technical assistance, saying the country had taken the project in a different strategic direction than had been agreed.

The political climate in the area has also proven as inductive for business ventures in the country.

In this Exclusive interview with Engr.

Kashim Abdul Ali FNSE, mni, PPNSE, President, Council for the Regulation of Engineering in Nigeria (COREN), he speaks on his engineering experience and the way forward for the Profession in Nigeria.

By Festus Oseji N. Family Background as an Engineer?

I was born on the 10th of June, 1958 into the family of Late Alhaji Abdullahi and Hajiya Maryam Ali, both of blessed memory, at a village called Ofugo-Ankpa in Kogi State. My early education started in 1964 with primary education at the LEA Primary School, Ankpa, and secondary education at Ochaja Secondary School, Dekina in 1971. After my secondary school education, in 1976, I enrolled in the Kaduna Polytechnic to study civil engineering and graduated in 1981 with Higher National Diploma HND in Civil Engineering. I also got my B.Sc in Civil Engineering at the Federal University of Technology, Owerri in 1988.

My career professionally started when I was engaged by Benue State Government in 1982 and while there I worked and supervised several engineering projects, and in 1992, I joined the service of the Federal Capital Development Authority (FCDA) as a Principal Engineer and rose to the pick as Director in 2006, before retirement.

In the cause of my practice, I had quite a bit of remarkable experience. For instance, in the early days as a young man, one of the challenging assignment, I had to do was to build a bridge with direct labour. It was like a thunder boat to. This particular assignment came by surprise in the sense that I was not expecting it. I was in the office one day, my boss came and asked me to follow him to his car and asked my driver to follow us with my car.

We got to a particular site and he showed me a bridge and asked me to build the bridge to link two communities, and that all the money I will require to execute the project will be made available to me. So it was a big shock and terrifying moment for me as a young engineer. But he made arrangement with an experience engineer to oversee the project as the project progresses. But most of the key decisions on the project were taken by me.

My greatest joy is that the 54m Length

My greatest joy is that the 54m Length Reinforced Concrete Bridge linking Ikpa- Mbatierev on Wannune to Igbor Road in Benue State, was successfully constructed and it's still standing till date in Benue State. So that was one of the most challenging and terrifying fulfilling experience I have had in my career.

Reinforced Concrete Bridge linking IkpaMbatierev on Wannune to Igbor Road in Benue State, was successfully constructed and it's still standing till date in Benue State. So that was one of the most challenging and terrifying fulfilling experience I have had in my career.

Other major experience I have had is Erosion Control Project on a state road, now federal road at Ayamgba to Idah road in Kogi State. I was simply asked to proffer solution to the problem, and I did as I was directed. Later, I was asked to cost the project, I did and on the day I presented the report I was given a cheque to go to the central bank for the money and carry out the project work. Again, that was another shocker for me as I was not expecting it. In fact, I was embarrassed, because I didn't know where to keep the money given to me as a young engineer.

But later I have to find a way around it and to the glory of God the project was successfully done. And till today the road was not threaten by erosion which is to say that the study and implementation was done properly.

And as I grew up, I had the opportunity of working in Abuja. I was the principal engineer and some of the successes recorded, were the construction of the 5,000m3/h 2nd Unit Lower Usman Dam Water Treatment Plant, Chief Resident Engineer, Planning and Engineering Design of the Lower Usman Dam-Bwari water Pipeline including the Booster Station and a 12,500m3 capacity reinforced concrete reservoir. These Dams are meant to protect the city from flood, while the water from the reservoir is also taken to the Botanica Garden and for other greening purposes across the capital city. That was another huge experience for me as an engineer, because I was leading at every point in these

projects.

The significant of these projects to me as a professional engineer is that we completed it on time as there was no variation, and it gives me pleasure to have done the job.

Later on while I was with FCDA, I had the privilege to be a director in the executive of federal capital territory FCT water board and before I got there, the organization was almost going down, because they were owing salaries and allowances of the workers and the whole office was a bit disorganized. And within the period I was there we were able to revive the corporation, and with a lot of funds available to run the activities of the corporation. We equally help a lot of people to have access to portable water across the FCT. The last major contribution that I did was the Abuja Mass Rail Transit System.

The project award was made in the middle of May, 2007, before a new administration took over. So the project didn't take off fully, before I was asked to take over the project which was about 22% job done.

When I came in I found out that for effective delivery of the project it will require a thorough review. So I had to set up a team of young engineers to run through the entire length of the line. This is to enable us to do a re-preparation of the project, such as costing it, getting the approval of the executive council based on our findings and the bureau of public procurement (BPP) issues etc. And because the project was to be funded with a loan, in which the bank describe it a white elephant project, so we had to handle it as such. And before I left we were almost at 65% completion of the project, but today it is at about 90% completion. It gives me joy that I was part of that project as it progresses, because it is a project that will change the face of Urban Mass Transportation within the FCT to a well organized rail transit system as it is obtainable across the developed cities of the world.

Apart from other creative approaches adapted over the years, these are the projects that gives me so much joy and satisfaction in life as a professional engineer from pupilage engineer to being a director in the federal ministry. I remain grateful to God for the grace.

? www.cedmagazineng.com June 2017 | 15

COVER INTERVIEW OIL AND GAS REPORT When growing up, what inform your choice to study engineering?

Well for me it started from my secondary school days. In my school then, there was a bit of counseling not structured counseling. But from form 3 to 4, we needed to have a session with the principal and some other teachers because with your result they already know your capacity and the subject you are good in and the likely profession or course it will lead one to study at the higher institution.

But the essence of the meeting was that they want to know from you what your ambition is as an individual.

Because we had restrictions, unlike the present day schools where one can merge many subjects in search of admission. In my school we never had subject like Agricultural Science, Economics, and Government. All these subjects were not there. Then you either do core science or do diluted science, no other option. For instance, some students doing history the still have to do Biology and Physics, which are science subjects, but they were claiming to be art students.

And preceding those period I was already winning prizes in literature so to me I thought I will be an art student, but at Form 4, I was told not to do literature because I was doing well in other major science subjects such as Chemistry, Physics and Biology. So I was advised to include additional mathematics to prepare myself fully for science courses in the higher institution. And at that time my choice was to do medicine or engineering, and I eventually settled for engineering when the opportunity came.

So that is the way the school prepared us to make our choice of course of study in the university. For me, I could say it's my secondary school that prepared me for my choice of course of study in the university, and I remain grateful to all those God used to guide me to settle for engineering as a profession in life, because there is no regret at all.

What can you say are your professional contributions to the economic growth in Nigeria?

Looking at all the projects that I have done from the beginning as a young engineer to my retirement as director in the ministry, I could say the projects at one point or the other has and is still contributing to the economic growth of the nation. For 16 | www.cedmagazine.com June 2017

DESIGN

instance, the link bridge connecting the two towns in Benue State definitely eased movement of goods and services within the state, and saving the time wasted on the road by commuters to get to their destinations. The erosion control project also made transportation easy and prevented total damage to the roads.

For instance another milestone; the Dam project and the water treatment plant project also boosted the water supply in Abuja by increasing the availability of water to 100% within the FCT. Beyond that, in my early age as a young highway engineer I was responsible to the maintenance of most federal and state road and the task then was to ensure that there is no accident within the stretch of road assigned to us to maintain. So at that time we ensure any accident at all happening within our stretch will not be as a result of bad road, but possibly caused by the driver or mechanical malfunctioning of vehicles. Those period most federal roads were in good condition and in that way we were contributing to the growth of infrastructures and economy of the nation. Everything about infrastructure provision is all about economic growth, because without roads, goods and services will not be made available as at when needed.

Lack of water supply in any urban city today, makes living very difficult.

Power which has been one of the major challenges in this nation today is as a result of lack of infrastructure and maintenance

Engr. Kashim Ali, FNSE

in that sector of the economy. If there is power the economy will grow faster than as it is today, because things will improve for the better, as there will be less dependence on the government for employment as cottage industries will spring up across the country and citizens will be engaged meaningfully.

And because time is money, infrastructural provision shorten the expenditure on commodity for the investors, because the investors have to have access to facilities such as electricity, water supply, telecommunication, etc., so anything one does requires infrastructure no matter the quantum, and the facts that one is involved in its provision is contributing to economic growth of the country.

So to some extent, all that I have done over the years has all been towards the growth and development of the nation's economy. And the most recent which is the Abuja Rail Transit Project, if it comes on board it will create a lot of employment opportunities for the youth and other economic contribution it will bring will be profound. Surely, It will change the character of Abuja, because civilization derived largely from transportation.

Because one needs to move out from his cocoon to understand that life is not what we think it is in our closet and that is the whole essence of exposure. So if you are creating a medium for people to move seamlessly then you are contributing to economic development. So in a nutshell I could say the projects I have done are critical to the economic growth of the country.

Speak on the role of Construction and Engineering as driver of Infrastructural Development in a developing nation?

When we define development in itself, we will find out that it is the extent of quality and quantity of infrastructure that we have that is development. For instance if we want to compare Nigeria with any of the developed countries across the world today, if Nigeria is placed downward, it is because if you want to travel from one city to the other one cannot guarantee how long it will take to get there, which maybe as a result of bad road, no airport, no effective and efficiently operated rail transportation etc.

VIRTUALLY REAL DESIGN Viewing a building design in virtual reality (VR) allows contributors to better relate to the experience of viewing a detailed physical model, rather than two-dimensional renderings or animations.

Old School vs New School, Screenshots from ProspectVR

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rchitects and designers use plans, sections, perspective renderings, animations or models to describe a space. Personally, I have always been drawn to building models. As a sculpture student, I always worked from a mock-up rather than detailed drawings. As an architecture student, I would walk into a critique with nothing but a pristine model and diagrammatic drawings—sometimes to the horror of my professors. I find myself drawn to modeling because this is the only method within traditional documentation that actually uses three dimensions to describe space. It seems to be how my mind can best wrap itself around converting abstract representation into a real experience.

Viewing a building design in virtual reality (VR) allows contributors to better relate to the experience of viewing a detailed physical model, rather than twodimensional renderings or animations.

While the VR experience could begin as viewing a virtual model on a table like that of a physical model, one of the beauties of VR technology is that one can be “transported” into the model. It then b e c o m e s a n i m m e r s ive, t h r e e dimensional, true-to-life experience.

Instantaneous feedback in VR allows users to “climb” a monumental stair to understand different guardrail options, or walk a corridor to “feel” changes in ceiling height. Architects and designers benefit from the ability to hypothesize and test the design thoroughly. Early schematic design models in VR help users understand the design at a spatial level. As the project moves through the design process, entire finish schemes can be tested, altered and retested as needed. To me, this experience is much more “real” than any two-dimensional rendering.

Architects and designers are experts at envisioning the feel and atmosphere of a three-dimensional space through twodimensional abstractions. We take abstractions and fill in the gaps u s i n g personal experience t o understand t h e intended reality of

the built space. Technology not only helps us prove our own predictions internally, but also makes it easier to share our vision with clients.

As a presentation tool, our industry has become comfortable with photorealistic renderings that provide an accurate depiction of the materials, lighting, and proportions of a space. Renderings absolutely serve a purpose and allow designers to apply artistic license to sell the potential of an idealized space.

Animated renderings are becoming more and more common. These animations begin to move towards an immersive experience, allowing a viewer to understand what it feels like to move through a single predetermined path in space. Both are useful to tell a story, but both have a perspective that can be authored by the creator and remain in two dimensions.

Virtual reality starts to eliminate the gaps in our abstraction and provide a real picture that clients can immediately understand. Virtual reality is tr uthful—materials, lighting, and environment may need to be preset, but the user has a freedom to move as they wish and look at what they wish. The user has the ability to instantaneously pause, rewind or change perspectives. In VR, the designer cannot hide aspects of a design that are not ideal. The instantaneous understanding that VR provides of the space more closely relates to the way we experience space every day—in 3D. As VR technology continues to advance, it will be exciting to see what comes next. In the year that SmithGroupJJR has been experimenting with VR technology, workflows have become simpler and the experiences more immersive. With each new project, we can look forward to testing what is possible and continue to evolve the way we view design.

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ENERGY COVER TINTERVIEW

THE ECONOMY Bank of Agriculture (BOA) to strength their capacities to support micro, small and medium scale enterprises (MSMEs).

Roads and Bridges About 65 road projects are included in the budget. According to Udoma, the over 65 roads and bridges undergoing construction and rehabilitation are located across the six geopolitical zones of the country. The breakdown as captured in the budget are as follows: N 1 0 b i l l i o n f o r t h e rehabilitation/reconstr uction and expansion of Lagos-Shagamu-Ibadan dual carriageway Sections I & II in Lagos and Oyo States; N13.19bn for the dualisation of Kano-Maiduguri Road, Sections I-V; N10.63bn for rehabilitation of EnuguPort Harcourt dual carriageway, Sections I-IV; N7bn for the construction of Second Niger Bridge including access roads phases 2A & 2B; N7.12bn for the dualisation of Abuja-Abaji-Lokoja road; N9.25bn for the dualisation of Obajana junction to Benin road Phase 2 Sections IIV; N7.5bn for the rehabilitation of Onitsha-Enugu dual carriageway; N7bn for the construction of BodoBonny road with a bridge across the Opobo channel; N3.3bn for the rehabilitation of Ilorin-Jebba-MokwaBokani road; N3.5bn for the dualisation of Odukpani-Itu-(SPUR IDIDEP ITAM) - Ikot Ekpene federal highway Lot 1: Odukpani-Itu bridgehead; N1.5bn for the dualisation of Kano-Katsina road

Dr. Taiwo Afolabi, CEO, Sifax Group

Phase 1; N2.24bn for the dualisation of Suleja-Minna Road, Sections I & II; N2.3bn for Gombe-Numan-Yola Phase II (Gombe - Kaltungo); N2.7bn for the construction of Kano Western bypass;

and N2.03bn for the construction of the terminal building at Enugu airport.

Given the huge amount of money that would be required for actualisation of these laudable projects, there have been growing concerns about the possibility of raising funds for the projects.

But Udoma allayed those fears when he stated that there would be prudent management of overhead costs in order to provide adequate funds to execute capital projects.

He said strenuous efforts were being made to find the resources required. "We are challenging our revenue generating agencies, particularly the FIRS and Customs, to improve efficiency and broaden their reach so as to achieve the targets set for them in the 2017 budget", he said.

The implementation of the 2016 budget was hampered by a combination of massive drop in oil prices and disruptions in crude oil production, which resulted in significant shortfalls in the projected revenue.

There are also concerns that the dwindling oil price from the 2017 high of $55 per barrel in February this year, may hinder the attainment of the 2017 target.

This development, analysts said, should compel the government to not only strive to boost internally generated revenue, but to strengthen alternative revenue sources to shore up the country's foreign earnings.

Secondly, you are working in a city and get back home from work and you turn on your light and there is no light, you turn on your tap there is no water, you pick up your phone to call the utility company and no response. In a situation like that we can easily refer to ourselves as an underdeveloped country, because such scenarios do not exist in a developed society. So if we situate development in terms of that, then infrastructure is key to any country. Because these element I have just described are element of infrastructure, telecommunication, water supply, electricity supply, road, railway and aviation are critical to nation growth, because they are the basic needs for development. Any nation without all these elements working efficiently can never be classified as a developed nation.

Your view on the p o w e r o f consulting engineers in a developing nation like Nigeria?

Consulting engineering is the highest l e v e l o f practice

ThisDay and Agency Report

Managing Director, AFC, Andrew Alli

steel stand weather station shelter

Temperature recorders

termometro per forno expansion thermometer

manometro tutto inox elettrico

digital and infrared thermometers

Weather instruments

?

Continued on page 32 Quess Muraina Aderemi K. FNIQS, MRICS, RQS

TERMAF

V. Ca' Treviglio Principal Partner Calibration certificates

35 | www.cedmagazineng.com June 2017

bimetal thermometers

Calibration certificates

Engr. Kashim Ali, FNSE

The Nigerian Consulting Engineer are the most confident engineers you can find around in the country, because it takes a lot of courage, self confident and ability to be a consultant in this profession in engineering and that is where intellect is really exuded in engineering, because in consulting engineering, it is creativity at work. For instance, if you want the shortest means of getting from Abuja to Kaduna, it is the consulting engineer that will think it out, either by road or through rail transit.

A consulting engineer is a creator, a dreamer that uses scientific knowledge to transform dreams into reality. So everything therefore that is done or seen in developed countries is the work of a consulting engineer, from the conceptualization to delivery of any project is the work of a consulting engineer.

Another angle to d e ve l o p m e n t i s implementation of projects, without the consulting engineer project implementation will fail, because the consulting engineer as the creator knows the best way and principle to adopt for e f f e c t i v e implementation of his designed project. Most project in t h i s count r y fail

ed because, we fail to engage the consulting engineer during design of such project. So the most critical step to be taken in any developmental project is to consult the consulting engineer, if not there will be problems implementing such project. So the place of consulting engineering shouldn't be toiled with if we want meaningful infrastr uctural development in our country.

Do you think the Nigerian Consulting Engineers are really doing well enough in the country?

The Nigerian Consulting Engineer are the most confident engineers you can find around in the country, because it takes a lot of courage, self confident and ability to be a consultant in this profession. As we all know, it is not easy to be a trailblazer, or to be a leader in any situation in life. Its because a consultant is like a part-finder.

If for instance his thought fails, it is always a big slap on the person's personality and profession that is why it takes a courageous person to be consultant. They are always careful in whatever methodology to use in arriving at any decision presented at the end of the day.

Another essential duty of a consulting engineer is reduction of cost of projects.

Because, a consultant ensures proper calculations and drawings are applied to execute a project, there will not be over inflation of cost for any project, reasons being that the right materials and quality products are used to deliver a project and as at when due. In engineering, we have cost engineers, whose job is to handle the financial costing and calculation of the project cost. In consulting with the tremendous improvement in knowledge and with the advent of computer software, drawings have become a lot easier and efficient to achieve at a very minimal stress. So consultants are the confident engineers, who could face all odds to ensure he deliver on time.

Some of the challenges facing the Nigerian Consulting Engineers are lack of job opportunities; that is they are not being used in doing most of the projects on-going in the country as they suppose to be used. Unlike in the sixties when most of our roads were designed by our consulting engineers. And because of that employment creation by the consultant are minimal unlike before that consulting ? www.cedmagazineng.com June 2017 | 17

COVER INTERVIEW CED LEGAL

firms assisted in engaging some engineers and other unemployed graduates from other field like accounting, administrative personnel etc, to work with them.

Presently, very few consulting firms are working in Nigeria, and that is not the right way to go as a developing country.

There is need for us as a nation to appreciate and encourage our professional engineers by giving them projects to handle. It is only when our people are engaged that they will gain experience and also employ the unemployed in the country. The engineering sector is a critical sector that requires the government attention in every ramification it needs to excel.

Consulting Engineering and Sustaining Procurement Standards in Nigeria. What is your view on this?

The issue of procurement over the years has always been championed by Nigerian Society of Engineers (NSE), even before and during my tenure as president of NSE, we are always trying to ensure we streamline the procurement process to fit into the international best practices. And the motivation were as a result of the way and manner projects are been given discretionally to people without qualifications and experience to deliver the projects. For instance, projects were been awarded to people without the ability, even the machinery to deliver the jobs were not adequate enough, and that is why there are a lot of abandoned projects scattered all over the country.

The work of a consulting engineer is key in ensuring the aim and objective of procurement systems in a developing country like ours is achieved. It is the 18 | www.cedmagazineng.com June 2017

NSE FELLOWSHIP

consultant that will provide the needed guideline for effective implementation of procurement process and contract awarding mechanism.

The impact of procurement system in a developing nation cannot be overemphasized, reason being that it enable the government to curb wastage of funds and time, it also guide the government in terms of policy, budgeting and planning.

Presently, in Nigeria it is not yet perfect, but gradually we are getting there, because it is a necessity as a developing nation to have a workable procurement system in place.

Do you support the idea of Local Content in the engineering sector, and do you think it can successfully be implemented in Nigeria?

In affirmative, I say 'yes'. Reason is because it is a policy that is meant to give our indigenous professional the opportunity to thrive in engineering. For instance in all the North African countries like Egypt, Morocco, Algeria, even Libya before the devastation took place, before a contract is awarded to any organization they make sure an indigene of the country is the one in charge, that is any foreigner coming into the country as an expatriate must be coming as an assistant to the indigenous engineer who will be in charge of the project. The expatriate engineer may earn more money than the indigenous engineer that is in charge, but the essence is for the local engineer to learn as he is in control. In so doing the inferiority complex will be less, you will be free to ask questions when the need arises because you are in control. In so doing too the capital flight is kept within the country

and quality of job is assured, because the person who gets the job is a national, he ensures the best hands are brought in from abroad to help him deliver the project and on time.

But here in Nigeria reverse is the case and that is why things are not working as expected and maintenance becomes a problem. But in a situation whereby an indigenous engineer is made to be part of the project implementation team, it will give us the opportunity to learn and when the need for maintenance arises our people will do the needful. In Nigeria most critical projects are awarded to foreigners without an indigenous participation.

The local content policy is a welcome policy as a developing nation and we need it in all sector of the economy. Local content policy is a policy that gives responsibility to the nationals. In China for instance, the Chinese build their country by themselves. No other nationals can go to china and get a contract to build a structure. They do every work by themselves, we employ our leaders to emulate such attitude, we should believe in the ability of our professionals to deliver on any project. The foreigners come into the country simply because they want money, not necessarily to give us the best they can offer. It is a matter of necessity for us to embrace and appreciate the ability of our professionals, because what we are presently doing is against the national law of survival. It is like giving the food meant for your children to an outsider.

It is also part of the reasons why our economy is in recession. A situation where a contract worth a billions of naira is awarded to a foreigner, he deliver the project anyhow and go away with the money to spend it in his own country, in so doing boosting the economy of his country. Then imagine when such contract is awarded to a Nigerian, he deliver and still spend the money within the country, the liquidity remains in the economy. The banking system will benefit from it as there will have funds to give to people as loan and other financial assistance to boost the economy. This policy is a necessity for the effective growth and development of the country.

Speak on COREN's most outstanding achievement since its inception?

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cost of doing business.

He attributed project failure in Nigeria to overestimate revenue and growth potential, insufficient attention to mitigating and controlling risk at the design phase, lack of confidence between the project stakeholders, ability to monitor project development and predict emerging risks and poor planning of asset operation.

Importance of Infrastructure Robust infrastructure could put millions of Nigerians to work in decent paying jobs. Electricity is crucial to fuel the economic growth of a country; a road improves productivity; Schools increase education levels and productivity. And so on. These all have important mediumand long-run implications for an economy.

A key benefit of infrastructure, especially transport infrastructure, is the reduction of transport costs, which helps to create new markets, fuels further agglomeration, which in turn fosters competition, spurs innovation, lowers prices and raises productivity, leading to an increase in living standards.

Group Executive Vice Chairman, SIFAX Group, Dr. Taiwo Afolabi, cautioned recently that the lack of critical infrastructure could hinder the success of the federal government's drive to improving the ease of doing business in the country and urged that the problem of infrastructure deficit should be urg ently addressed in order to compliment the executive orders signed recently by the acting President.

To spur economic growth and development, the federal government has taken the bull by the horn and has taken steps to bridge the infrastructure deficit.

At the third Nigerian Stock Exchange (NSE) & Bloomberg Chief Executive Officer Roundtable in Lagos recently, the Minister of Finance, Mrs. Kemi Adeosun had said the federal government was commitment to infrastructure development and economic diversifying.

She said about N200billion was invested on roads in 2016.

Adeosun said the N200 billion, which was an increased on the N90 billion spent in 2015, is out of the N1.2 trillion earmarked for capital projects to ensure ease of doing business.

Julius Berger, RCC continue work on Lagos-Ibadan expressway

According to the minister, the government will continue to prioritise infrastructure development to unlock growth potential, pointing out that the diversification of the economy would not be achieved without a g ood transportation system and power supply to improve ease of doing business.

The minister said the country was very vast and to actualise her potential, infrastructure development was very crucial for sustainable growth and development.

A 'Big Plan' for Infrastructure To this end, Adeosun said last week that her ministry was set to release N350billion, being the first tranche for the capital votes included in the 2017

Sen. Udoma Udo Udoma

Appropriation Act. The finance minister, who spoke at the public presentation of the 2017 Appropriation Act, emphatically stated that the government had enough cash available to commence the execution of key projects and initiatives scheduled for the 2017 fiscal year.

"We are ready, we are having a cashplan meeting very soon and after that, N350 billion will be released as first tranche of capital releases for the 2017 budget,'' the minister said.

Speaking in the same vein, Udoma, listed some major capital expenditure allocations as N553.71billion for Power, Works and Housing; N241.71billion for Transportation; N150 billion for Special Intervention Programmes; N139.29 billion for Defence; N104.24 billion for Water Resources; N81.73 billion for Industry, Trade and Investment; N63.76 billion for Interior; N151.91 billion for Education (including Universal Basic Education Commission); N55.61 billion for Health; and, N103.79 billion for Agriculture.

Some major initiatives in the 2017 Budget include: N100 billion provisioned for a new Social Housing Programme; N46 billion for Special Economic Zone Projects to be set up in each of the geopolitical zones to drive manufacturing / exports; N16 billion voted for the revival of the Export Expansion Grant (EEG) in the form of tax credits; N15 billion to recapitalise Bank of Industry (BoI) and

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ENERGY ENERGY COVER INTERVIEW

THE ECONOMY

projects were not utilised for that purpose, but instead, were diverted to private pockets. They reasoned that the government should hit the ground running by making funds available for capital projects.

The vice president of Nigeria, Professor Yemi Osinbajo signing the much awaited budget into law.

THE INFRASTRUCTURE BUDGET? Fixing Nigeria's decades-long infrastructure decay with 2017 budget

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cting President Prof. Yemi Osinbajo penultimate week, signed the belated 2017 appropriation bill into law.

The budget, which was passed into law by the Senate last month, was raised to N7.44 trillion from the N7.28 trillion earlier proposed by President Muhammadu Buhari in December last year.

Osinbajo stated at the signing that the budget would be implemented in line with the recently launched Economic Recovery and Growth Plan (ERGP), aimed at bolstering Nigeria's ailing economy. He emphatically stated that the 2017 budget "will trigger activities in the domestic economy, which will lead to job creation and more opportunities for employment, especially for our youth."

Details of the budget as provided last week by the Minister of Budget and National Planning, Senator Udoma Udo Udoma, showed statutory transfers of N434.41 billion; debt service of N1.66 trillion; sinking fund of N177.46 billion to retire certain maturing bonds; nondebt recurrent expenditure of N2.99 trillion; and capital expenditure N2.36 trillion (inclusive of statutory transfers).

He identified some of the major capital allocation sectors as the Power, Works and Housing Ministry, which got N553.7 billion; Transportation - N150 billion, Defence - N104.24 billion, and Interior N151.91billion. Udoma also disclosed that N40 billion was allocated to defray the electricity debts of the ministries, 34 | www.cedmagazineng.com June 2017

department and agencies (MDAs). The 2017 Appropriation bill was predicted on a benchmark crude oil price of US$44.5 per barrel and oil production estimate of 2.2mbpd.

The overall projected fiscal deficit was put at N2.36 trillion, about 2.18 per cent of gross domestic product (GDP).

The huge amount allocated for debt service in the 2017 budget proposal has continued to elicit condemnations from economic analysts, who noted that the allocation of 24.73 per cent of the overall budget proposal to debt service was a sign that another debt crisis is brewing in Nigeria. Analysts also picked holes on the dilated overheads, emphasis on spending and huge recurrent expenditure over allocation for capital projects. However, other analysts have argued that it is not a sin for a country to borrow money, but the concerns should be about how the money is utilised. They pointed out that in the past, monies borrowed for capital

He stressed that stakeholders must tackle infrastructure challenges creatively, target private sector funding and integrate training and job creation components into projects from conception, adding government must also ensure a favourable environment that would ease cost of doing business. - Andrew Alli

Need for Robust Infrastructure Nigeria's infrastructure across board is in bad shape. Most major roads and bridges are in dilapidated condition and require major repairs; the power sector is still bedevilled by sundry issues, the health and education sectors are equally in poor condition. Fixing these problems could create millions of jobs; curb the rising unemployment, reduce crime rate, and return the recessed economy to a sustainable growth path.

The United States drew itself out of the 1930s Great Depression through massive infrastructure investments. In fact, established countries like United Kingdom and Germany invest nonstop huge sums of money to ensure the continuous operation of their creaking old infrastructure networks, while many developing nations are starting from a rather clean slate and are even investing big in latest technologies.

At an advocacy roundtable organised last year, by the Nigeria-British Chamber of Commerce in Lagos, experts posited that the desired national economic development will remain a mere wish that cannot be achieved unless necessary actions are taken to bridge the infrastructure gap.

Managing Director, African Finance Corporation (AFC), said Andrew Alli, who spoke on 'Achieving Sustainable Development through Infrastructure The Role of the AFC.', argued that for a sustainable infrastructure development to happen, policy instability, poor legal and political framework, lack of a holistic view of national planning, lack of coordination between government agencies as well as limited capacity of civil servants must be addressed.

He stressed that stakeholders must tackle infrastructure challenges creatively, target private sector funding and integrate training and job creation components into projects from conception, adding government must also ensure a favourable environment that would ease

Council for the regulation of engineering in Nigeria (COREN) came to be in 1970, as a matter of fact the draft decree was done in 1969, but due to some discrepancies it was not passed into law that year, some of the prominent Nigerians that made it possible was Alhaji Femi Okunu a lawyer by profession, was the Federal Commissioner for works at that time, he was one of the proponent of the decree, with the assistance of some engineers ensure the decree was drafted.

The key idea behind it was to give total control of engineering too engineers in Nigeria. And some of the reasons why it took such a long time before COREN came to be were because there were so many contentious issues around the critical sector in the country in which engineering is key to the survival of those issues. Unlike other profession like Architects, Town Planners, etc. had theirs, some before independence.

As at the time of recognition, COREN was called 'Council of Registered Engineer in Nigeria', so COREN was an

idea that was born out of the need to move the nation forward infrastructure wise, but some people who do not want good things in the country looked for opportunity to destabilize COREN and its activities, in so doing, they created a lot of acrimony between engineers, technologist, technicians and craftsmen.

In 1992, the COREN decree was revised, such that it now accommodates technologist, technicians and craftsmen and it is now referred to as "Council for the Regulation of Engineering in Nigeria (COREN). Initially, the name sound as if it was engineers alone, but with the current name it regulate all forms of engineering in Nigeria and if it has been like this way back in 1970, we would have made more progress than now, all the acrimonies we had all these years wouldn't have been there, because engineering practices is regimented practice area, roles are well defined. The engineer is the dreamer and designer, while the technologist is an implementer, all the technicians and the craftsmen are

subordinates to the implementer. All these are because engineering is critical and complex sector that requires unity and harmony even in project delivery. So I would say the coming together of engineers, technologist, technicians and craftsmen under one umbrella is the greatest achievement of COREN since inception and all our acrimonies are handled in house.

Speak on the Challenges faced by COREN over the years?

The challenges I could say we have faced over the years has been incursion of quacks in the profession. The quacks work without anybody regulating them and in so doing they bastardize the work of the professionals. The quacks are boastful; they claim to know what they do not have iota of knowledge about in the profession. Most building collapse we are witnessing today is as a result of quacks activities and it is not good for our nation growth and infrastructural development.

Most project are abandoned is because

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WORLD ENERGY REPORT

COVER OIL ANDINTERVIEW GAS REPORT

wife do surprises me time without numbers with gift on the day and that actually reminds me of the date. I always give gratitude to God almighty internally, because many were born on that date and not all were alive to see the day. Some are alive but could not live their dreams, so I feel grateful for what I have achieved within my professional circle, as president of NSE, the first from the minority in Nigeria, in addition, as the current president of COREN, a regulatory body of engineering in Nigeria. In a nutshell, I have had a successful career; I became a director in the ministry at the age of 48 years old and retired without blemish and with good health.

Aregbesola Receives Award of Excellency from Council for Regulation of Engineering

of quackery. So we appeal to the government and the law enforcement agency to help us curb the quacks engineers in Nigeria. And COREN as a regulatory body we are doing our best to tackle this menace in the profession and some stringent measures are in place to drastically reduce quackery in engineering to the barest minimum.

Speak on your stewardship since your assumption of office as council member and president of COREN? In COREN, one does not come in as president, instead as council Member and later get elected as president by the council members.

Our stewardship as council over the years is to intensify the reform that has been on in terms of restructuring and giving sense of belonging to everybody in the engineering profession. We try to create equity in terms of managing the people in COREN. We have also tried to intensify in terms of discipline in the profession, because we believe with discipline we make ourselves ready as professional to take responsibilities as expected in this critical sector of the economy. We also try to raise the bar on accreditation and because it requires high integrity, we ensure the international community standard are carried along and

our people as well.

And as a regulatory body we make sure we are ready to apply the law when necessary, so that our people can compete favourably internationally. For all these to work effectively, we are working with ICPC on those areas. For the purpose of conducive work environment for COREN staff, we have built some zonal offices across the state, well equipped with modern office equipment. Generally, I could say we have moved COREN beyond where we met it and we are ready to do more before I leave as president.

Happy birthday Sir! What can you say at 59th Birthday Anniversary?

I give thanks to God for His mercy and I could say I have had a good time so far as a person and as an engineer. The irony of my birth date is that I share the same date with my wife, and my kind of person I don't even remember the date. But my

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Your advice to upcoming engineers and leaders in this country?

My advice is that in aspiring for leadership one should try and be himself at all time, don't copy others way of doing things. For instance, in the cause of my career I have never had to lobby for anything. So as a young engineer believe in yourself, because the earth is vast and God created everyone of us uniquely with one talent or the other.

It is difficult at times to discover our talents in life, but that does not mean the talent is not there. Our youth should try and identify where their strength lies. In indentifying your talent, those things you do with ease are yours, while those you do with difficulties are not yours. You must have passion in what you do. If there is no passion in it, know it's not your talent.

In addition, it is never too late to start a thing, because if God has said that is your route to success no man on earth will stop it. Our youth should not jump the queue at anytime in life, because it will either take backward instead of forward in life pursuit. So patience is necessary in life, because God's mercy is profound and huge, and since He promised that for every creation He has a purpose, just wait and discover God's purpose in your life.

Finally, our youth should learn to work hard, because it is the divine prescription for good life and success.

DO NOT INTERFERE Germany, Austria tell U.S. not to interfere in EU energy sector

Angela Merkel of Germany

Austria President, Alexander Van der Bellen

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according to the bill posted on the Senate website.

Engie SA , Germany's BASF SE and Uniper SE, as well as Austria's OMV AG are among five European Union companies that planned to join the Nord Stream 2 project run by the Kremlin-backed Gazprom PJSC before the deal was scuppered last year when Poland's competition watchdog objected to the joint venture.

ermany and Austria condemned a proposed expansion of U.S. sanctions on Russia, saying the measures sought to bolster U.S. economic interests and included an unacceptable intervention in the region's energy sector.

"Europe's energy supply is a matter for Europe, not the United States of America,'' German Foreign Minister S i g m a r G a b r i e l a n d Au s t r i a n Chancellor Christian Kern said in a joint statement. "Instruments for political sanctions should not be tied to economic interests."

At the center of the criticism is the planned $10-billion Nord Stream 2 gas pipeline from Russia to Germany, that to some extent would compete with U.S. exports of liquefied natural gas to Europe. The 1,220-km (758-mi) link, designed to cut Russia's reliance on gas transit through Ukraine, would double the capacity of an existing route to Europe's biggest economy.

The Nord Stream 2 pipeline will have "detrimental impacts on the European Union's energy security," and on reforms in Ukraine, the U.S. Senate said after voting in favor of tightening curbs against Russia on Wednesday. The U.S. will "continue to oppose the link,"

Eastern opposition Engie, BASF's Wintershall unit, Uniper, OMV together with Royal Dutch Shell Plc agreed in April to provide loans for Nord Stream 2 to see it ready by the end of 2019. The project meanwhile is still

opposed by politicians in Poland, Ukraine, Slovakia and the Baltic States.

Gabriel and Kern said they "can't accept" proposed U.S. sanctions targeting European energy companies as part of measures against Russia, according to the German ministry's statement.

The Senate's proposals are a way for the U.S. "to try to favor its own gas" in Europe, Isabelle Kocher, the chief executive officer of Engie, France's former gas monopoly, told reporters in Paris Thursday. "I don't think at all that the United States can stop this project."

The bill approved by the Senate says the U.S. government "should prioritize the export of United States energy resources in order to create American jobs, help United States allies and partners, and strengthen United States foreign policy."

Under the bill, the president gets the right to impose sanctions against companies that make investments or sell goods or services to Russia's export pipelines of $5 million or more during a year.

Gazprom, which supplies about a third of the European Union's gas, has shrugged off the prospect of U.S. liquefied natural gas in Europe for years. While most analysts expected increased U.S.-Russia gas rivalry last year, only a few cargoes from North America have reached southern Europe.

The Moscow-based exporter sees no impact from U.S. curbs on its link. Nord Stream 2 is a European project, developed in partnership with European companies that had already provided funding before the latest U.S. bill was approved, according to Alexander Medvedev, the deputy CEO of Gazprom. The project is in compliance with all existing EU regulations, he said.

"If the senators believe that they can block Russian-American cooperation in energy and as a whole -- God is their judge," he said at a conference in Berlin.

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SPECIAL FEATURE

OIL AND AND GAS OIL GASREPORT REPORT

Arc. Musa Sada, Minister of Mines & Steel

BOTSWANA OILContinued from page 30 The return of West African and Libyan crude "could be a reason for the build in the North Sea," said Jorge Antequera, a crude oil market analyst at Kpler.

Because the Brent benchmark is priced in that region "even if it's a small build, it will have a significant impact on oil prices."

Earlier this month, Royal Dutch Shell Plc lifted export restrictions on Nigeria's Forcados crude, which had been shut in for more than a year after a militant attack on a subsea pipeline.

Forcados exports are now expected to average about 285,000 bpd in August, almost a quarter of the volume that OPEC has pledged to cut from the market.

In addition, Libya's biggest oil field,

Willie Mokgatlhe, CEO Botswana Oil Limited

Sharara, has restarted after intermittent halts and is now pumping about

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CED PROPERTY INTERVIEW AFRICA ENERGY

OIL AND GAS REPORT SPECIAL FEATURE

POWERING AFRICA AFC and Harith Merge Assets to Bring Power to Africa

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Continued on page 27 ?

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arith General Partners (Harith) and Africa Finance Corporation (AFC), two preeminent institutional investors based in Africa, have merged their power sector assets, expertise and experience to create a new energy entity combining both renewable and nonrenewable power generating assets in Africa.

On a continent where more than 620 million people live without electricity, this robust partnership has been formed to lead the way in power generation, and the integrated management of power infrastructure assets to deliver the requisite base load generation capacity to drive and accelerate growth in African economies.

The joint venture’s near term portfolio supplies reliable energy to over 30 million people in at least 10 African countries and has a combined gross operational and under-construction capacity of 1,575 MW. The joint venture will merge the AFC’s interests in Cenpower, owner of the Kpone Independent Power Project under construction in Ghana, and Cabeolica, a wind farm that provides 20% of Cape Verde’s energy needs, with those of the Pan Africa Infrastructure Development Fund (PAIDF) which is managed by Harith. These include the Azura Edo IPP in Nigeria, the Lake Turkana Wind Power in Kenya, Kelvin Power Station in South Africa and the Rabai Thermal project in Kenya. Collectively this portfolio

represents some of the largest projects in Africa’s energy sector.

The new venture will be in a position to develop and finance projects through corporate finance transactions and project finance, significantly reducing the lead time to bringing power projects to fruition. It will also have the benefit of a team of dedicated advisers that bring a wealth of development and operational experience in the African power sector.

Andrew Alli, President and CEO of AFC, commented on the launch: “We are delighted to be announcing this partnership with Harith. Our new joint venture will make an invaluable contribution to improving generation capacity in countries across the length and breadth of Africa and by working together we can deliver tangible benefit

for Africans, switching their lights on and stimulating positive economic growth on the continent.

“Power is one of AFC’s priority sectors and we dedicate considerable time and resources to driving development here.

Our total investments in energy amount to over $350 million and we were the first private sector institution to hit our target under President Obama’s Power Africa initiative, with total direct investments of $269 million and $1.2 billion of mobilised third party investments,” Tshepo Mahloele, CEO of Harith and Chairman of Aldwych, said: “The purpose of the proposed merger is to combine the assets of Aldwych and AFC so as to create an African power entity that will have substantial capital, sector specific experience, a critical mass of existing assets and a pipeline of credible power projects.

“This will enable the joint venture to expeditiously develop quality, cost reflective yet profitable power projects that will benefit Africans – both power users and investors alike. The timing could not have been better as the power sector in Africa presents very attractive investment opportunities and the growth in this sector is expected to continue exponentially. Needless to say, the positive developmental impact of electricity to our communities will be enor mous and welcomed,” says Mahloele.

Mahloele also said: “Through our London based IPP company, Aldwych – which has a long history of international power industry experience – Harith has a proven track record of successfully spearheading, developing and managing signature assets within the energy sector in Sub Saharan Africa. We are proud to be taking this further through our new energy venture and see huge potential for both this vehicle, and our partnership with AFC, to grow and flourish in the future.”

As a result of this merger, some of the largest and best structured renewable and conventional electricity projects in Africa during the last decade will now be held within one consolidated joint venture, alongside the requisite development experience, pipeline, expertise and equity capital for similar future projects.

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DEVELOPING STORY OIL AND GAS REPORT

Francistown oil storage facility in Botswana to cost US$58.7m

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he expansion of the oil storage facilities in Francistown in Botswana is set to cost US$58.7m as Botswana Oil Limited (BOL) seeks to buffer up supply security in the petroleum industry.

During the 14th edition of the Botswana Resource Sector conference in Gaborone, the Minister of Mineral Resources, Green Technology and Energy Security, Sadique Kebonang stated that, BOL is working on the funding model for the Francistown facility whose construction will be followed by another facility in Gantsi. " We are currently working on the funding models for the infrastructure with the Francistown one estimated to cost about US$58.7m," said Sadique Kebonang. "There are also plans to build a pipeline from South Africa to Botswana. All these are opportunities for banks to fund these projects," he added.

In August 2016, BOL appointed an Engineering Procurement Construction Management contractor for the Francistown expansion project which aims to deliver an additional 60 million litres to the current 30 million litres capacity.

However, the concept designs have already been completed and work is progressing on the detailed engineering 30 | www.cedmagazineng.com June 2017

designs. The completion date for the depot is scheduled for November 2018.

On the other hand, the Ghanzi project is yet to commence, though land for the planned depot has already been identified.

Nonetheless, BOL is engaging the National Oil Company of Namibia and prospective investors on coastal storage in a bid to diversify oil imports routes given that the State owned oil company BOL is considering securing coastal storage facilities in Mozambique and South Africa.

In the meantime, BOL has stored petroleum products in Matola, Mozambique as part of security of supply and the development of alternative routes and source.

Developments have also been made on the construction of the muchanticipated 160 million-litre Tshele hills oil storage facility in Kgatleng.

According Willie Mokgatlhe, BOL's Chief Executive Officer, construction of the access road and the road over the rail bridge is now complete.

The project is being implemented by the Department of Energy in the Ministry of Mineral Resources, Green Technology and Energy Security.

The project is made up of two phases, which are the construction of the tank farm and staff housing while

the second phase will include infrastr ucture including power connection, fencing, water and a road as well as rail spur. ockpiles.

The amount of oil stored in tankers reached a 2017 high of 111.9 MMbbl earlier this month, according to Parisbased tracking company Kpler SAS. Higher volumes of storage in the North Sea, Singapore and Iran account for most of the increase.

The build-up occurs even as the Organization of Petroleum Exporting Countries and 11 other nations led by Russia cut supplies. Since the beginning of the year, those nations have attempted to trim nearly 1.8 MMbpd from the market, though higher output in the U.S. and Africa and sluggish demand in Asia have all helped to undermine their efforts.

"If anything, it shows that OPEC cuts still aren't having enough of an impact," Olivier Jakob, managing director of consultant Petromatrix GmbH, said of the buildup at sea. "The pressure is coming from the Atlantic basin," where there are additional supplies, he said.

Companies including Trafigura Group and Vitol Group have recently chartered older supertankers for as long as eight months, and some of the vessels are likely to be used for floating storage, according to a research note Monday from Pareto Securities AS. As a result of the persisting surplus, spot prices for oil are being pushed lower than those for supplies months and years into the future. Such a structure, known as contango, can make it profitable for traders to store oil in tanker ships for delivery later, although data compiled by Bloomberg and E.A. Gibson Shipbrokers Ltd. indicate that's not the case yet.

As recently as May 1, the average volume was about 74 MMbbl, according to Kpler. Floating storage in Singapore has risen by 23% this year and 32% in the North Sea, it estimates.

Africa, North Sea Continued on page 32 ?

A CED Magazine Publication needs.

Disputes and strikes have periodically led to disruptions in fuel importation, leading to shortages across the country.

By refining oil at home, Dangote says importation will end.

"I mean, it's simple, you have it here. As you're producing, it's going into the market," he said.

Supply and demand Nigeria is Africa's largest economy and most populous country. Those aspects may ultimately undermine Dangote's ability to serve the country's fuel needs, said oil and gas analyst Bala Zakka.

Nigeria doesn't produce Africa's Richest Man Plans Refinery to End enough power to keep the Nigeria's Gasoline Woes lights on all the time, and those who can afford it rely on plan by Africa's richest man to gasoline or diesel generators.

As the population grows, Zakka says transform one of the continent's largest oil industries is taking shape demand may outstrip supply.

"Strategic domestic, strategic on a swampy piece of land outside commercial and strategic industrial are Nigeria's commercial capital, Lagos.

Nigerian industrialist Aliko Dangote is being run on generators. And those constructing a refinery that has the generators will require so much diesel and capacity to turn 650,000 barrels of oil into petrol. And that will mean we will not have gasoline, diesel, kerosene and jet fuel - even enough for the automobiles," Zakka enough to potentially satisfy all the said.

Another problem Dangote may face is country's daily needs.

When completed, it could end Nigeria's oil supply. Pipelines are targets for oil thieves and, more recently, organized reliance on imported gasoline and diesel.

A weeks-long shortage of imported militants. Attacks by a group calling itself fuel that occurred earlier this year is one the Niger Delta Avengers have cut reason why economists believe Africa's Nigeria's oil production by as much as biggest economy is poised to enter a half.

Refinery administrators have cited recession.

"By and large, you are looking at the pipeline attacks as one reason they can't future of the country," Dangote, who produce enough gasoline.

Dangote plans to build the pipeline made his $14.4 billion fortune from his sugar, flour and cement companies, told supplying oil to the refinery underwater, journalists during a visit to the in hopes that will keep saboteurs away. He construction site of the refinery and also plans to build two natural gas pipelines to feed power plants. adjoining fertilizer plant.

If Dangote's refinery pays off, Zakka When Nigerians go to the pump, they're usually filling up with imported said it will be a signal to other refiners that gasoline and diesel. The country has four Nigeria is ready for investment.

"I wouldn't want to say he's a guinea pig, refineries, but they barely work, so Nigeria exports its crude and buys back the fuel it but Dangote is definitely going to be a pilot test," Zakka said

RESCUE MISSION

A

POWERING AHEAD Nigeria's first modular refinery ready this year

W

ithout yet laying a single pipe, Integrated Oil and Gas Ltd. on Saturday, said its $116 million modular refinery would come on stream before the end of this year.

Group Managing Director of the company, Mr Anthony Iheanacho, told newsmen in Lagos that the company had been given provisional licence to commence preliminary work for a 20,000-barrel capacity modular refinery.

Iheanacho, who conducted the newsmen on tour of site of the proposed refinery at Tomaro Island Port, off Takwa Bay, Lagos, said that the preliminary approval was received from the Department of Petroleum Resources (DPR).

He said that work had commenced on the Environmental Impact Assessment (EIA) and other necessary requirements to facilitate the final approval for the refinery.

He said that funds for the project would be sourced from local and foreign financial institutions Iheanacho explained that the refinery would produce Automated Gas Oil (AGO) otherwise known as diesel, kerosene, export quality aviation fuel and fuel oil.

According to him, the refinery does not have the capacity to produce Petroleum Motor Spirit (PMS) also

ENGR. TONY IHENACHO

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OIL AND GAS REPORT

OIL AND GAS REPORT

BENEFIT OF MODULAR RIFINERY The key advantage of modular refinery lies in its size, cost differential and flexibility. It is constructed in a controlled environment and properly tested before being shipped out. By Ikenna Ifedobi

I

n the business of refining crude oil, what is good for the goose may not always be good for the gander. In essence, the modus of refining crude oil in developed nations may not always suit Third World countries like Nigeria. The fundamental developmental differences in socio-economic infrastructure and maintenance psychology demands that a more suitable approach be adopted by countries like Nigeria, to align with their stage of societal evolution and political uniqueness. This article shall focus on Nigeria as a case study to propose a better alternative for an emerging economy dealing with social vicissitudes that may otherwise make full conversion refineries inefficient when compared to small scale modular plants.

History has shown in Nigeria that large scale, full service plants are difficult to maintain and often function at the level of small scale modular plants anyway, despite their size and heavy output potential. The Port Harcourt, Warri and Kaduna plants have been almost nonfunctional due to a poor maintenance culture and the profound difficulty of Nigeria.in sustaining the industrial ethics needed for large scale refining. While it is encouraging that the 500,000 BPD plant

by Dangote will alleviate the national and regional shortages in petroleum products supply, it should be understood that the problems that crippled the older plants are still in place, and by the sheer size of the refinery, it may suffer the fate of the 24

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older ones if extensive reforms are not implemented. Modular refineries however offer some unique options that may be more suitable for emerging economies like Nigeria.

A modular refinery by definition is a prefabricated processing plant that has been constructed on skid mounted surfaces, with each structure containing a portion of the entire refining process plant connected together by interstitial piping to form an easily manageable process. Due to its manageability, it is in my opinion better suited for the Nigerian environment.

Its key advantage lies in its size, cost differential and flexibility. It is constructed in a controlled environment and properly tested before being shipped out. It is relatively easier to fabricate and erect. Also, when an area becomes unsuitable for business, it can be disassembled and reassembled in a more suitable environment. For areas with non-cohesive geopolitics like Nigeria, modular plants can be scattered throughout the country to each serve the needs of the various regions of the country. The maintenance cost is low; considering that it processes 2,000 to 15000 BPD of mainly light sweet crude, routine turn around maintenance and onstream inspections would require less personnel and down time. Modular plants are easier to secure because of the reduced surface area and perimeter; issues of internal monitoring of

equipment and external acts of sabotage can be better policed given the smaller area of operation, and in a situation where one plant suffers an incident, the other smaller plants scattered all over the country can still be operational. The impact on the environment is nothing compared to a large scale refinery.

Environmental pollution and regulation can best be controlled with small scale plants in countries that may not have the industrial ethics to manage the huge amount of pollution prevalent with large scale refining. While a full conversion plant can cost anywhere from 2 to 9 billion dollars, the same amount can be used to spread the risk potential and build various modular plants all over the country to cater to the needs of each geopolitical zone. Finally, while it may take several years to build a large refinery, modular plants can be put to service in a matter of months, and only cost about 250 million dollars.

In a volatile Third World nation like Nigeria, large scale refining has some profound disadvantages that has over the years been proven by the nonfunctionality of plants and the heavy dependence on fuel imports even after the plants were built. This shows that unlike developed countries, economies like Nigeria have not evolved to managing large scale plants and maybe should look to smaller, flexible units. The key reason here is maintenance. Large scale refineries are not easy to maintain and require a stringent quality control and jurisdictional system to ensure longevity.

Global standards stipulate that process equipment be opened, cleaned and inspected at least every five years, and an on-stream mechanical integrity program be implemented and documented. While some refineries in America built in the 1920s are still fully functional, Nigeria's oldest refinery was built in 1965 and operates at less than 15% capacity. The jurisdictional and industrial ethics are clearly absent and such levels of operation do not suit societies like Nigeria.

Because of this lackadaisical culture of maintenance, the likelihood and consequence of failure of having such huge process capacities cannot be overstated. In the event that all the Continued on page 29 ?

BENEFIT OF MODULAR REFINERY

country's refining rely on a few giant plants, once those facilities suffer a mishap, the country is immediately thrown into socio-economic shock.

However, if there are numerous small scale plants then the risk is spread and environmental and economic impact reduced. Why spend 9 billion dollars to build a 500,000 BPD behemoth, only for it to become epileptic in ten years.

The Nigerian example is the most extreme in all the Third world in evaluating the problems that a huge refinery can encounter. Due to the dependence on extensive interconnecting piping, large scale plants in Nigeria will find it very difficult to stay in business if the pipelines are not protected. Given that pipeline vandalization has never been arrested and that there is a serious problem of disgruntled elements in the country blowing up pipelines, how then do giant refineries stay in business? How do they get their crude oil feed? Is it really worth it to invest 9 billion dollars in one area and operate on a skeletal scale?

Given the stratified nature of the Nigerian population in terms of ethnic tensions, it may be advisable for regional refining to be considered, where indigenous modular plants are operated and overseen by indigenes of the region for their own economic benefit. In this case, if they blow it up, then they are really hurting themselves as opposed to seeing the facility as a symbol of g over nment or multinational domination.

Deriving any economic benefit from modular plants is highly dependent on their proximity to marine transportation.

It is imperative that areas that border with the Atlantic Ocean be made safe one way or another. This is the responsibility of the federal government. Also it is imperative that the federal government gives strong consideration to pipeline protection from the standpoint of advanced technology. These two factors are at the root of any kind of viability in petroleum refining in Nigeria and ultimately national economic development. *Ifedobi, an economist and consultant of the American Petr oleum Institute (API) writes via ikennaifedobi@gmail.com

WALKING THE TALK FG approves 56 licenses to Modular Refinery operators means," he noted.

The lawmaker continued and said, "These licenses were issues nine days after P r e s i d e n t Muhammadu Buhari assumed office. The Vice President only came to the region to affirm what they has already discussed and Chief Bubor Fiyewei, Chief S.A Etoromi of Gbaramatu Kingdom and some investors during the second modular refinery investors meeting held at the .. concluded.

The Niger Delta boys that are operating o fewer than 56 licenses have been illegal refining business have got the approved by the Federal Government experience, they are not doing anything (FG) for the setting up of modular different from what is being done in the refineries in the Niger Delta region to end modern refineries, the only thing us that the era of illegal refining activities and while they used very crude method in youths agitation in the region, but no carrying out the work, the approved indigene of the region was given the refineries use modern technology." He approval. explained.

This was disclosed by a Lawmaker Ahiakwo was optimistic that if the representing Omoku constituency in Niger Delta youths are given the license to River state House of Assembly, Hon. operate the modular refineries, the era of Christian Ahiakwo in Port Harcourt the pull fire will be over and its consequent Rivers state capital Monday. release of dangerous black sot menace in Ahiakwo spoke ahead of the the state will gradually clear from the air. for thcoming Por t Harcour t "On the issue of black sot in the environmental Summit, scheduled to environment, I thank the state hold Port Harcourt, between June 13 and government for the proactive steps he 14, 2017. took in addressing the concern by setting He expressed doubt on the motive up a committee headed by the behind Vice President Yemi Osinbajo's Commissioner for Environment to fact finding tour of the region and the identify the emission sources. promise to approve the setting up of The committee has completed the first modular refineries for the operation of phase of the assignment, which is the the restive youths of the region when they identification of possible emission have issued the approval to those they sources and where they are, the next thing want to give none of who is from the is to ascertain the pollutant substance region. each source is emitting before moving to "As we speak, 56 companies have been confront them with the view of stopping given licenses to operate modular it. refineries in Niger Delta region, but none Earlier the Lawmaker who is the of the companies is owned by indigene of Chair man House Committee on the region. "Bearing in mind that Environment and also the chairman militancy sprang up in the region Summit steering committee, Said the following the perception of Summit among other issues would review marginalization and exclusion of the environmental issues in the state with the people of the region in oil and gas view of possible enactment of new laws business and now thus number of to accommodate areas of environmental approval have been given without the concern that were not captured in the application of any indigene of the region existing laws. scaling through, I don't know what that

N

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DEVELOPING STORY OIL AND GAS REPORT

OIL AND GAS REPORT

STRIKING AN ALLIANCE Benefits of Modular Refinery To N' Delta explained

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he Minister of State for Petroleum Resources, Dr Ibe Kachikwu, has said replacing illegal refineries with modular refineries was part of government's wider plan to develop the Niger delta region.

Kachikwu said this at the 10th edition of the annual Nigerian Association of E n e r g y E c o n o m i c s (NAEE)/International Association of Energy Economics (IAEE) conference in Abuja.

According to him, the Federal Government and operators of illicit oil refinery outfits in the region have held their first tranche of meetings to review and adopt an implementation template.

Kachikwu, who was represented by Dr Bello Gusau, the Executive Secretary of the Petroleum Technology Development Fund (PTDF), said the initiative would be carefully implemented with greater considerations to the environment of the region.

"In the past few weeks, we have had open and prospective discussions with some of the refiners and government is assiduously working to ensure that this initiative is carefully implemented without destruction to the environment.

"This will not only provide a legal job and source of income for the populace, but also contribute to our national 28

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productivity,'' he said.

The Federal Government had disclosed plans to restructure activities of illegal oil miners in the Niger Delta into consortia.

The Nigerian National Petroleum Corporation (NNPC) had also said if well coordinated, the refineries could produce up to 1000 barrels of crude oil daily.

The immediate past President of the IAEE, Mr Gurkan Kumbaroglu, lauded the activities of the NAEE in Nigeria, saying the "association is well-disposed

Dr. Ibe Kachukwu

to helping development efforts in Africa''.

The President of the NAEE, Prof.

Wunmi Iledare, speaking to newsmen on the sideline of the event, said the legislature should have passed the Petroleum Industry Governance Bill (PIGB) by now.

Part of the Bill seeks to promote transparency and accountability in the petroleum industry and create a conducive business environment for operators in the petroleum industry.

Iledare said Nigeria could have avoided the troubles of cutting an exit deal to pay off its Joint Venture (JV) cash-call debts to its International Oil Companies (IOCs) if it had passed the PIGB. The government, in Dec. 2016, had agreed on a deal with IOCs to pay off discounted cash-call debts to them on the condition of incremental oil production.

Iledare said: "let me resolutely speculate that if the industry reform has been vigorously pursued by the Federal Government, the need to cut the cashcall exit deal to ameliorate the cash-call toxin in the Nigerian economy and oil and gas industry performance over the years would have been circumvented".

"Thus, the need to pass the Petroleum Industry Governance Bill cannot be over-emphasised.

"It is the key, in my opinion, to addressing the apparent lapses and weaknesses of the Nigeria oil and gas industry governance within the context of global best practices.

"That the Petroleum Industry Governance Bill has undergone the third reading in the Senate is certainly a welcome development''.

In his goodwill message, Mr Victor Shidok, the Immediate Past Executive Secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA), assured indigenous Nigerians who have ideas for alternative energ y of government's support.

In another goodwill message, the Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Dr Maikanti Baru, lauded the NAEE for its contribution to the economy and urged it to "provide workable solutions'' to government's heavy dependence on oil.

FIRST MODULAR REFINERY

known as petrol.

"Tomaro Island with about 90 hectares is designed as one-stop shop which will comprise refinery, flour mill, ship repair yard, helipad site and resort centres.

"It will also create massive employment for our teeming youths.

Crude would come to the refinery through vessels for refining,'' he said.

The GMD said that the company was still awaiting some documents to start construction on the island, contrary to claims by one resident of the area, who petitioned that work had commenced at the site.

"We have not even started construction by the way; we are just going through the pre-application process.

"I am ready to stand by the truth and what is right at all times. I am not the one to go and appropriate property to build a refinery.

"I am not going to put my hands in your pocket and force money out of it. I am not going to force you to tell me what you do not know about building refineries. Refineries are very important infrastructure in the country and it will enhance the image and prestige of the country.

"If I think that I can articulate a business plan, that I can talk to the bank and they will then lend me money to build the refinery, while will I not do it? I do not want anybody to be deceived or fooled by fake or funny stories," he said.

Iheanacho, however, appealed to Federal Government to support indigenous oil companies which are striving to grow the oil and gas sector, adding that government should also support local companies with funding.

"We are in absolute support of growing indigenous capacity in every facet of our oil and gas industry.

"This is because the local companies are paying their taxes, reinvesting their capital and creating enormous job opportunities for the larger community.

He said that with such encouragement, Nigeria's participation in the industry would rise significantly in line with government's aspirations with the Nigerian Content Act.

SPEEDING INVESTMENT Tanzania and Uganda to speed up oil pipeline project

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anzania has agreed with Uganda to accelerate implementation of a crude oil pipeline project between the two east African nations and award the construction contract to multiple contractors.

The decision was reached during talks between Tanzanian President John Magufuli and his Ugandan counterpart, Yoweri Museveni, in Kampala on Thursday, Magufuli's office said in a statement recently.

I suggest we use the design and constr uct model to speed up implementation of the 1,410-km pipeline project Uganda said in April it would build a pipeline for its oil through Tanzania rather than Kenya, which had wanted to secure the export route.

Picking a route is vital for oil firms to make final investment decisions on developing reserves found in Uganda and Kenya, which are among a string of

4 | CED Magazine June 2014

hydrocarbon finds on Africa's eastern seaboard. Tanzania has found gas offshore.

"I suggest we use the design and constr uct model to speed up implementation of the 1,410-km pipeline project ‌ and award contracts to five or six different contractors to build different sections of the pipeline at the same time," Magufuli's office quoted him as saying.

"By doing that we will significantly reduce the time needed to build the oil pipeline and the entire project can be completed within just one year."

Uganda discovered crude near its border with the Democratic Republic of Congo 10 years ago, but has yet to start production after repeated delays.

Choosing a route to export the crude from the land-locked nation is a vital step.

France's Total, London-listed Tullow Oil and China's CNOOC have been pushing for a decision on a pipeline.

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TECHNOLOGY

TECHNOLOGY

AFRICA’S TECH REVOLUTION: Beyond the hype

F

rom the rooftop lounge of Andela's appropriately named EPIC Towers, the skyline of Nigeria's coastal economic hub Lagos is littered with telecommunication pylons stretching as far as the eye can see.

The tech startup, which trains software developers and is the poster child of the burgeoning tech scene in Nigeria, moved into the new five-story state-of-the art offices in January 2017 to cater for an evergrowing team. Just a few months prior to the move, Facebook supremo Mark Zuckerberg travelled to Lagos on a pilgrimage to visit Lagos's key tech companies, including Andela, which received a $24m Series B funding round from a consortium of investors led by the Chan-Zuckerberg Initiative founded by Zuckerberg and his wife, Priscilla Chan.

The endorsement by the social media billionaire was an affirmation not only of Andela's work but also the whole of Nigeria's tech ecosystem, according to Seni Sulyman, country director at Andela.

"People have been talking about tech in Africa, and in Nigeria specifically, for a long time," he says. "Zuckerberg's visit was a real validation that all the talk surrounding the tech sector in Nigeria was real and [his visit] helped galvanise everyone and reignite the energy in the ecosystem."

Andela's meteoric rise reflects the rapidly developing tech sector in Africa. In 2016, African tech startups raised a record-breaking total of $366.8m in investment, according to San Franciscoheadquartered venture capital firm Partech Ventures. To put this into perspective, tech companies across the continent raised $276.5m the year before.

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Partech Ventures' data only includes deals higher than $200,000 and excludes any grant or debt deals, and "megadeals" worth $100m and over. Only three countries accounted for around 80% of Africa's total funding, with Nigeria securing $109m or 29.8%; South Africa receiving $96m or 26.4%; and Kenya securing $92m or 25.3%.

The average size of the deals struck in Africa by startups also increased year-onyear at every stage of investment, with Series A funding, for example, increasing to around $3.7m. Series A refers to a company's first significant round of venture capital financing. At the same time, the number of tech hubs in Africa has risen to 310, with 173 accelerators and incubators recorded in 2016, according to the World Bank. There were 117 in the previous year.

The growth in the sector comes at a time when mobile internet adoption in Africa continued to grow rapidly, with the number of mobile internet subscribers increasing three-fold in the last six years to over 300m unique users, according to the mobile operators' trade body GSMA. An additional 250m subscribers are expected by 2020.

Mobile internet is the platform of choice in Africa due to its relatively low cost when compared to wireless broadband. The growing uptake in mobile technology has fuelled many of the innovative digital solutions and services emerging from the continent, and, as mobile infrastructure advances and the cost of smart devices falls, tech entrepreneurs are developing uniquely African tech solutions to African

problems.

The hive of activity last year alone shows that the tech sector in Africa is in a strong position. However, compared to more developed markets such as Singapore and Silicon Valley, Africa still has some way to go.

"Silicon Africa" - myth or reality?

The headline figures only tell part of the story. While the number of African startups raising funding at "Series A" level has been on the rise, the average investment amount in Africa at seed-stage is $200,000, according to the pan-African venture capital community VC4Africa.

This compares unfavourably to an average seed investment of $1.14m in the US. Seed funding is the initial investment used when starting a business in exchange for equity.

"We still see that there is plenty of early stage money in the market," says Thomas Van Halen, research lead at the private equity firm Venture Capital for Africa (VC4Africa). "So the deals at the lower end are still happening on a large scale, but the follow-up money that goes into Series A, for example, is where we need new vehicles to increase investments at the next level."

The relative dearth of funding available for African startups trying to scale up is a major challenge for those companies looking to grow beyond their local markets. One of the primary turn-offs for international investors looking at the African tech ecosystem is the lack of significant "exits", according to Femi Longe, co-founder of Co-creation Hub (CcHub).

"The main challenge in terms of getting funding is exit and there aren't that many success stories," he says. "If you look at the UK, for example, Facebook and Google are buying startups left, right and centre.

So there is a possibility for an investor to see an exit because one of those big companies could buy them out. But in Africa, we only have a few examples of this.

"To boost the number of exits, large local companies and startups should collaborate more often in mutually beneficial arrangements, where the corporation offers financial support and mentoring while the startup provides a solution that the larger organisation doesn't provide. So the natural progression will go from collaboration to acquisition." ?

The model outlined by Longe is currently the most viable option for startups because African stock exchanges tend to not hold enough liquidity for exits via an initial public offering (IPO). Some analysts believe that one of the primary reasons huge exits do not occur on a regular basis in Africa could be that most startups have focused on solving local issues rather than setting out to tackle global ones.

Africa tech rising The rapid growth of the African tech sector was mainly due to the expansion of mobile technolog y and driven entrepreneurs seeking to find answers to some of the main challenges facing the continent. In the three key tech ecosystems of Kenya, Nigeria and, to a lesser extent, South Africa, innovation has been fuelled by necessity. In Kenya, Safaricom's M-Pesa, the mobile money platform which has around 19m active users in the East African country, was launched in 2007 as a way to offer financial services to low-income underbanked Kenyans. At the time of the platform's launch, only 18.9% of Kenyans used traditional banking services.

M-Pesa provided a unique solution to a common problem in Africa by utilising already existing technology, in this case mobile, to resolve an issue. The tech scene across the continent is filled with examples of tech companies and entrepreneurs finding a gap in the market and plugging it with simple tech solutions, according to Iyin Aboyeji, co-founder of Andela and creator of digital payment service Flutterwave.

"Because we have weak institutions and poor service delivery in Africa that leave millions of people on the fringes, [tech entrepreneurs] actually have the ability to

reinvent society a r o u n d infrastructure that is built w i t h technology," he says. "T he continent is undergoing a massive digital transformation . E v e r y industry is digitising, from banking to telecoms, and right at the centre of that are technology developers who are building applications that fit into that mission and supporting business to digitise their processes."

In Aboyeji's native country, Nigeria, there are numerous example of tech companies doing just that, such as the online payment service Paystack and the ehealth app LifeBank. While the tech innovations in Kenya and Nigeria have an obvious value in their home nations, overseas investors still view startups in these markets as only dealing with African issues which do not translate to the global market, according to Paul Gabriel, Africa Analyst at Control Risks.

"If you look at the solutions that the startups in Africa are developing, they usually are local in nature with an unclear path as to how they can properly scale up," he says. "And where there is an overlap with other regions, such as the mobility sector, then the likes of Uber move in quickly and push out the local business."

However, the tech sector in South Africa, led by startups in Johannesburg and Cape Town, remains the most advanced on the continent, with the number of exits increasing year-on-year in 2016, and startups such as WhereIsMyTransport and website builder VIGO expanding to the UK and Asian markets, respectively. But despite the positive indicators, overseas investors, who are key to boosting the funding available for startups, prefer to err on the side of caution when investing in Africa.

However, this could be down to them showing a lack of imagination or an understanding of the local market, Gabriel added.

As the tech scene in Africa continues to flourish, entrepreneurs will need to be ambitious if they hope to compete on the global tech stage. One tried and tested

method would be for government to boost investment in research and development (R&D).

Future of African tech Investment in R&D has played a crucial role in the evolution of the tech spaces in Israel and Singapore. Although R&D spend does not usually bring immediate returns to the investors, the long-term benefits far outweigh any expenditure, according to Chika Nwobi, cofounder of Lagos-based Level 5 Lab (L5Lab).

In Africa, budgets are often stretched, with funding being directed towards more pressing needs such as healthcare and education. "I think that we're being unambitious about what we can do in the tech space," says Nwobi. "When you're very far behind in a race then you have to run faster just to catch the others. And investing more of our GDP in R&D is the only way Africa can reach and surpass the other [more developed] countries."

The African Union has set a target for member states to spend at least 1% of GDP on R&D. According to UNESCO data, only Kenya, Mali and South Africa are close to achieving the target, and the latter is the only country that spends a significant proportion in the business sector.

In comparison, Israel and Singapore spend over 2% of GDP, with Israel investing over 4%. Both nations have reaped the rewards of their investments, especially in the ICT sector, according to Nwobi.

"R&D is like acceleration, so the most advanced countries [in the tech sector] are also the same ones that are spending the most on R&D, even though they are further ahead than [African countries]," he says. "This is money that you spend, which might not have immediate returns, but it'll help you leapfrog your development."

But for now scalability remains an issue due to the lack of limited amount of capital flowing into the sector. In the meantime, the focus should be on skilling up young Africans so that they will be ready to shape the global economy of the future.

"We all know that we are living in the digital age and there is a huge deficit of jobs in Africa, and Nigeria has huge youth unemployment issues," Nwobi says. "So I believe that if we are to be prepared for the coming age then we need to educate an army of coders to take us into it."

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