Big Project ME March 2017

Publication licensed by Dubai Production City

132

MARCH 2017 meconstructionnews.com

THE BUSINESS OF CONSTRUCTION

“it’s about bringing into focus what our clients really want, and what they really need”

Wael allan on bringing drakE & Scull intErnational back to thE top

Driving profitability

VOLVO’S I-SHIFT AUTOMATED MANUAL GEARBOX maximises uptime and makes your transports more efficient. Thanks to built-in intelligence, it quickly and automatically chooses the right gear. The result is less wear and tear, optimised fuel consumption and safer, easier and more comfortable driving. Or put differently, I-Shift makes transports with your Volvo trucks more profitable.

For MORE INFORMATION ABOUT I-SHIFT please visit volvotrucks.com

Volvo I-shift Gearbox

Contents

Issue 132 March 2017 08

18

26

34

38

44

04 ME Construction News.com OnlIne

The biggest stories from Big Project Middle East’s home on the web

14 Creative financing on the way 44 Metro Delivery news analysIs

Karim Nassif analyses the impact of the Basel III regulations on project finance lending

sITe vIsIT

Gavin Davids travels to Alstom’s Katowice plant, home of Riyadh Metro’s trainsets

07 Expo 2020 to award contracts 18 Wael Allan Preparations for mega event to see $3 billion in construction contracts awarded in 2017

Gavin Davids meets Wael Allan, the new CEO of DSI, as he looks to return it to the top

50 Middle East Electricity 2017

10 UK’s Balfour Beatty exits JVs

26 Deira Islands

52 Top tenders

12 Bahrain key sector overview

42 The benefits of the cloud

56 Changing construction

The bIg pIcTure

InTernaTIOnal news

Construction giant sells stakes in Dutco Balfour Beatty and BK Gulf MarkeT OvervIew

CBRE report looks at the Q4 2016 performance of three key real estate sectors in Bahrain

In prOfIle

prOjecT prOfIle

Big Project ME takes a tour of Nakheel’s massive Deira Islands project clOud daTa

Eric Law looks at how construction companies can benefit from using the cloud on their projects

shOw revIew

Big Project ME recaps the latest edition of Middle East Electricity Tenders

Big Project ME lists the Middle East’s biggest construction tenders for March 2017 lasT wOrd

Fabrizio Nicoli and Milena Dimitrova discuss changing construction’s mind-set to sustainability.

March 2017 1

Introduction

Protecting our heights

O

ver the past seven years that I’ve covered construction in the GCC region, two names that always come up in conversation are Drake & Scull and Wael Allan.

The former has enjoyed a strong reputation in the region, thanks to the work that it has done on a number of iconic projects. Despite recent struggles, it has always been regarded as a contractor of high calibre and reliability, with main contractors and consultants consistently praising it for its quality of work and capabilities.

Wael Allan is someone I’ve known professionally for close to five years now, having first met him when he was heading up Hyder Consulting. From there, he moved on to Arcadis, and now I’m delighted to have had the chance to speak with him as the new CEO of Drake & Scull International.

An intelligent and forthright man, my interview with him for this month’s cover story was illustrative of his character and capabilities. Together, I think DSI and he will be going on to do great things. Good luck to them.

On a wider note, I’ve recently become aware of a growing and disturbing trend on social media.

I’m sure many of you have seen the recent viral video of the Russian model hanging off the side of the Cayan Tower. This is by no means an isolated incident. A quick YouTube

PUBLISHING DIrector RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 eDItorIAL DIrector VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5472 Supported by

M

‫ﺟﻤﻌﻴﺔ اﻟﺸﺮق اﻻوﺳﻂ ﻟﺼﻨﺎﻋﺎت اﻟﻄﺎﻗﺔ اﻟﺸﻤﺴﻴﺔ‬

Middle East Solar Industry Association

Empowering Solar across the Middle East

2 March 2017

eDItorIAL eDItor gAVIN DAVIDS gavin.davids@cpimediagroup.com +971 4 375 5480 oNLINe eDItor BEN FLANAgAN ben.flanagan@cpimediagroup.com SUB eDItor AELRED DOYLE aelred.doyle@cpimediagroup.com

DeSIGN

ADVertISING coMMercIAL DIrector JUDE SLANN jude.slann@cpimediagroup.com +971 4 375 5496 SALeS eXecUtIVe JOANNA COLACO joanna.colaco@cpimediagroup.com +971 4 375 5495

DIStrIBUtIoN MANAGer

MArKetING MArKetING MANAGer LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498

search finds dozens of videos of these socalled daredevils, climbing construction cranes and hanging off the edges of buildings.

While these stunts are certainly spectacular, they do raise concerns about the lack of security around construction sites. I’m sure any contractor would go pale at the thought of an accident happening on one of their sites, especially through no fault of their own, so the question is, why are these sites so unsecure?

Surely more can be done to prevent such easy access to the site, while security systems and CCTV can be installed to cover as much area as possible?

It would certainly be interesting to hear what the thoughts of the industry are about this issue. Do get in touch!

Gavin Davids editor gavin.davids@cpimediagroup.com @MecN_Gavin

PUBLISHeD By

Art DIrector SIMON COBON simon.cobon@cpimediagroup.com PHotoGrAPHy MAkSYM PORIECHkIN cIrcULAtIoN & ProDUctIoN SUNIL kUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476 ProDUctIoN MANAGer VIPIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713 WeB DeVeLoPMeNt MOHAMMAD AwAIS SADIq SIDDIqUI

CPI Trade Publishing FZ LLC licensed by TECOM PO Box 13700 Dubai, UAE Tel: +971 4 375 5470 Fax: +971 4 447 2409 www.cpimediagroup.com FoUNDer DOMINIC DE SOUSA (1959-2015) PrINteD By PRINTwELL PRINTINg PRESS LLC © Copyright 2017 CPI. All rights reserved while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

The awards are a great platform to share knowledge and the achievements of the industry. We enjoy the opportunity to network and collaborate at the event, as it is very well organised with a great turn out from all players in Construction.

The Big Project ME awards highlights the best projects, people and innovations in the region.

KEZ TAYLOR

CHIEF EXECUTIVE OFFICER ALEC

27 November 2017 19:00 - 23:00 Habtoor Grand Dubai Al Andalus Ballroom United Arab Emirates bigprojectmeawards.com

Online

MOST POPULAR

fEATURED

READERS’ COMMENTS

MACHINERY

BALfOUR BEATTY

IronPlanet auctions world’s largest demolition excavator

MIDDLE EAST MARkET

ExIT NO REfLECTION ON

It was surprising, but not particularly alarming, to read about Balfour Beatty’s departure from the Middle East. As you CONSULTANT

reported (“Balfour

SSH designs world’s largest children’s hospital

Beatty to exit Middle East joint ventures”, February 22), the UK In pictures: Trump sons in Dubai for Damac golf course launch

group is selling its stakes in Dutco Balfour Beatty and BK Gulf. The contractor has been

PROPERTY

active in the region

Developer renames Trump golf community Damac Hills

for as long as I can remember – back to the 1970s. But the decision should be seen in light of the other moves made by Balfour Beatty, such as its pulling out from Indonesia

PROPERTY

and Australia, rather

Dubai property sales ‘increase by 30%’

than read as a signal about the Middle East market. Infrastructure projects in this region – especially the Gulf – are continuing apace, even during the depths

CONSTRUCTION

Expo 2020 Dubai to award contracts worth $3bn 4 March 2017

of the oil-price crash.

Video: ‘flying car’ being tested in Dubai

Ali Malouf, via email

RIGHT WHERE YOU NEED US.

We now have a permanent base in the Middle East.

Purlins supply and support for the Middle East ยง Engineered Solutions: Metsec works closely with structural engineers and steel fabricators to add value and design expertise ensuring long term compliance and performance ยง Complete System Delivery: Metsec provides complete systems, including all accessories, that are compliant with quality accreditations including ISO9001, CE Marking and PAS 99 ยง Regional Experience: Metsec has already supplied a range of landmark projects in the Middle East ยง Reliable and Trustworthy: Metsec considers all work with customers as a partnership, priding itself on its superior customer service and technical support in all areas ยง Design software: Our free MetSPEC software optimises the design of our systems that are also covered by our Professional Indemnity Insurance

To discuss your purlin needs for the Middle East call us on +971 (0) 4 8870704 ext. 226 or visit the website: metsec.com/middle-east

by voestalpine

INTEGRATED DIGITAL CONSTRUCTION PLATFORM u

THINK DIGITAL / BUILD DIGITAL

IEAG HAS DEVELOPED A PIONEERING DIGITAL COLLABORATION PLATFORM THAT BRINGS DESIGN, CONSTRUCTION, PROJECT, AND CONTRACT MANAGEMENT INTO ONE DIGITAL HUB.

OUR VALUE PROPOSITION Up to 4% savings on the Overall Construction Cost when compared to Conventional Method Up to 50% Reduction in Site Re-work Up to 50% Savings on Design Management Process Fully Customizable Platform Up to 20% saving on Operation and Maintenance when compared to Conventional

BIM MANAGEMENT

CONSTRUCTION MANAGEMENT

u

CONTRACT MANAGEMENT

info@iea-group.com / iea-group.com

The Big Picture

Expo 2020 to award $3bn in contracts Preparations for the mega event to see 47 construction deals awarded in 2017 The Expo 2020 Dubai organisers plan to award 47 construction contracts worth $3 billion this year in preparation for the event, according to UAE state news agency WAM. A further 98 nonconstruction contracts totalling more than $98 million will also be distributed before the end of the year. These will range from legal advisory services to event management and merchandising.

The construction contracts for 2017, which are open to local, regional and international businesses, include the third and final infrastructure package for the event’s support areas, including car parking.

Other key awards for the year ahead include the construction of three thematic districts that will host the majority of the pavilions, as well as the public areas and the design, development and delivery of all temporary architecture and infrastructure required to stage the event.

The Expo 2020 Dubai eSourcing Portal includes details of upcoming tender opportunities, as well as announcing contracts already awarded. These will range from smaller contracts to larger, multibillion dirham opportunities.

The announcement shows that the Expo is on track to complete the majority of

1,200 Number of contracts awarded in 2016

by Expo 2020 Dubai

Construction contracts 47 construction contracts worth $3bn will be awarded in 2017, in the build-up to Expo 2020.

construction a full year ahead of the event opening in October 2020, and is delivering on its commitment to bring major opportunities to both local and global companies.

Reem Al Hashemi, Minister of State for International Cooperation and Director General, Dubai Expo 2020 Bureau, said: “We are committed to working with leading businesses from across the world in order to deliver an exceptional event of this scale on time and on budget. This is particularly true when it comes to the development of the physical site, which will live on long beyond 2021 to become an anchor for the UAE’s developing knowledge economy in Dubai South.”

“But just as importantly, the non-construction contracts to be procured this year will allow us to spread the investment made in the Expo as far as possible and enable local, regional and international businesses of all sizes to be part of what will be the most inclusive and international event in Expo history.”

In 2016, Expo 2020 Dubai awarded over 1,200 contracts, investing more than AED 2 billion ($544.5m) in the economy. This includes the appointment of an Orascom-Besix joint venture at the end of the year to develop the deep infrastructure at the Expo site in Dubai South. This work includes irrigation and sewerage, pipes and cabling, roads, electrical and water, and telecommunications ducting.

Once complete, the site will cover 4.38 sq km and host up to 300,000 people a day between October 2020 and April 2021.

March 2017 7

The Big Picture

Diversification of investment There are a lot of diversification of investment opportunities in Dubai for GCC nationals.

GCC investors continue to buy in Dubai Saudis and Qataris lead GCC investment in city’s real estate market A developer has said that investors from GCC countries are still buying Dubai real estate, as the UAE’s property market continues to deliver long-term profits.

Okbah Abdulkarim, chief operating officer of ARTAR Real Estate Development, said that Dubai’s status as a safe haven for real estate investment remained intact despite fluctuations in the regional economies.

Major developments that are driving economic growth are also helping to build investor interest, particularly from within the GCC, he added in a report by The Peninsula.

“Many GCC investors still see Dubai as a desirable city 8 March 2017

to visit because it is close by, there are shared cultural values and a superb lifestyle here,” Abdulkarim told the newspaper.

“There’s a lot of diversification in the investment opportunities in Dubai and it is a city that GCC nationals know well and trust.”

According to figures released by the Dubai Land Department, the largest volume of investment from within the GCC and outside

the UAE into Dubai last year came from Saudi Arabian investors, with 3,294 investors making transactions worth $2.17 billion.

The number of Qatari investors investing in Dubai in 2016 was estimated at 770, with the total value of deals estimated at $543.7 million, Abdulkarim added. Investors from Kuwait also made investments of around the same value. 301

$2.17 billion Amount invested into Dubai real estate by 3,294 Saudi investors

nationals from Oman and 244 from Bahrain contributed a combined total of $272.2 million to the city’s real estate market.

The Dubai market continues to show strong performance levels, with the Dubai Land Department adding that it had confirmed transactions worth $8.16 billion for the month of January alone.

“More and more investors these days are focused on recreation and prefer locations which allow people to walk rather than having to drive everywhere and find parking,” says Abdulkarim.

“Areas like Downtown are the most popular because there are so many attractions close at hand,” he concluded.

The Big Picture

Six Construct completes expansion project for QPMC’s Gabbro terminal Expansion boosts terminal’s annual turnover to 30 million tons of aggregate Six Construct, a subsidiary of the BESIX Group and one of the largest Belgian construction companies operating in the Middle East, has announced the completion of the expansion project for the Gabbro terminal in Mesaieed for Qatar Primary Materials company (QPMC).

According to a statement, the company, in a consortium with Danish engineering group FLSMidth, completed the expansion of the Gabbro Terminal, doubling the capacity of the terminal by replacing the operation system (4,000 daily rotations) with a stateof-the-art conveyor system, which will help boost the terminal’s annual turnover to 30 million tons of aggregate.

To support the new, streamlined supply chain, Six Construct was responsible for building the auxiliary infrastructure, such as substations and weigh bridges, and installing the electro-mechanical equipment. Within the first few months of the project, Six Construct was also awarded two additional 33KV substations, which feed the main project under a separate EPC contract.

“The overall concept was to keep the existing offloading cranes, while optimising their maximum capacity by removing the trucking operations, which was the main bottle neck of the process,” explained Frederic Brunelle, project director of Six Construct. “In order to achieve this major upgrade, the works consisted of building a

“The overall concept was to keep the existing offloading cranes, while optimising their maximum capacity by removing the trucking operations”

conveyor system taking the material directly from the crane and transporting it at a speed of 3m/s to the stockyard, and finally discharging it through a stacker on a stockpile.”

Each stacker, weighing 260 tons, travels on a 900m rail and piles the materials up to 20m high. The total process allows material to be stored from the vessel to the stockpile in approximately 25 minutes and replaces up to 4,000 daily truck rotations in the berth, while more than doubling the current output of the existing cranes. The further distribution of the gabbro is then improved through the installation of 12 way bridges and an integrated management system.

“Although we have now completed construction works of the project, we, with a partner, are also being considered to assist the client with the initial operation and maintenance of the Gabbro Terminal,” said Valery Paquier, Resident Manager, Six Construct Qatar.

“Not only is this a true testament of our company’s good client relations, but it also highlights our ambitions as a group to be able to cover the complete infrastructure lifecycle of a project. Solid asset management is becoming a cornerstone in the diverse offerings of BESIX, and we are very proud of the range of services we are able to offer as a company,” added Paquier.

Heavyweights Each stacker weights up to 260 tons, travels on a 900m rail and piles materials up to 20m high.

March 2017 9

The Big Picture

4 2

1. Trump sons in Dubai for launch of Damac golf course Eric Trump and Donald Trump Jr were at the opening of the Trump International Golf Club Dubai at Damac Hills as guests of honour, according to a statement from the Dubai-listed developer. The 7,205-yard, par-71 course is just ten minutes from Sheikh Zayed Road at the heart of the 42 million square foot Damac Hills master development.

World-renowned golf course architect Gil Hanse, who also designed the course for the 2016 Olympics, designed this 18-hole golf course.

“Damac has worked tirelessly and closely with the Trump Organization, the premier world-class golf course operator, and Eric Trump, in order to deliver such an astounding project. We look forward to announcing the delivery of luxury villas and mansions that overlook the golf course as well as other clusters in Damac Hills in the near future,” said Hussain Sajwani, chairman of Damac Properties.

“We are thrilled to be a part of this momentous occasion in Dubai and to witness the opening of this latest offering in our portfolio,” added Eric Trump, EVP of the Trump Organization.

10 March 2017

1

9.1%

Canadian investment in new housing increased 9.1% y-o-y to $3.2bn in December 2016, compared to December 2015

2. balfour beaTTy To exiT miDDle easT joinT venTures International infrastructure group Balfour Beatty has announced plans to exit two Middle East joint ventures.

It says it has reached a cash agreement with its joint venture partner to sell

the group’s entire share of Dutco Balfour Beatty and BK Gulf – subject to regulatory approval – for a total cash consideration of $13.7 million.

In a statement released on its website, the UKbased contractor said the local partner would assume responsibility for Balfour

Beatty’s guarantees of bonding obligations in the joint ventures, as part of the transaction.

Both local firms employ around 6,000 staff each, and both have worked on a number of high-profile construction projects in Abu Dhabi and Dubai.

The Big Picture

4. uK consTrucTion inDusTry facing ‘sKills gulf’

7

Seven people were killed in Kanpur, India when an underconstruction building collapsed 3

$265m

New Zealand’s Fletcher Building had $265m wiped off its market value after posting its half-year results

3. egypT’s capiTal projecT hiT by chinese pull-ouT The proposed deal between Egypt and a Chinese state construction company to build government facilities at a planned new administrative capital has fallen through due to price disagreements, Egypt’s Housing Ministry has said.

Ambitious plans to build a new metropolis 45km east

of Cairo were announced in March 2015 by President Abdel Fattah al-Sisi as part of a wide-ranging plan to develop the economy and create new jobs for Egypt’s growing population of 91 million people.

A UAE-based developer was originally tapped to lead the project, but pulled out of the deal. Two Chinese state construction companies – China State Construction Engineering Corporation

(CSCEC) and China Fortune Land Development Company (CFLD) – stepped in to take over the project. CSCEC secured a $3 billion loan to build the government facilities for the city, but no final agreement was reached, the Egyptian Housing Ministry said.

Egyptian contractors are now set to take over the building of government facilities in the city.

Global engineering consultancy Arcadis has said its latest research report shows the UK construction industry will need to recruit more than 400,000 people annually between now and 2021 to cope with predicted workloads in the country.

The Arcadis Talent Scale predicts a rise in what it calls the MINTED workforce – the Most in Need Trades Earning Double. Among the most in-demand trades will be carpenters and joiners, where demand accounts for nearly one sixth of all national resource requirements.

Plumbers, electricians and bricklayers are also in high demand, particularly in the labour-intensive housebuilding sector.

Furthermore, the report also identified a need for more than 7,400 civil engineers, 7,300 quantity surveyors and 26,400 construction directors. These figures are independent of the impact of any eventual Brexit deal, which would further exacerbate the current labour shortage, the report said.

“What we have is not a skills gap; it is a skills gulf,” said James Bryce, Arcadis director of Workforce Planning.

March 2017 11

Market Report

Bahrain Q4 2016 key Market sectors reView CBRE report looks at performance of three key Bahrain real estate sectors

retail growth Development in Bahrain’s retail market continues to show growth, CBRE research shows.

non-oil sector, with a reported 4.7%. This was driven by the construction sector, which expanded by an annual 7.2%.

Development in the retail market continues to witness growth Development activity across the retail market (regional, subregional and neighbourhood) continues to grow in the

Kingdom, according to CBRE research. Rental rates at subregional shopping malls average BD28 per sqm per month for in-line stores and in the range of BD12 per sqm per month for neighbourhood shopping centres.

Swedish furniture developer IKEA is also expected to launch its 37,000sqm development in late 2018. The BD47

million project is planned to be the largest store in the Middle East with a selfserve and full-serve area.

“The forefront of retail development is The Avenues, an Alshaya Group-led project at Bahrain Bay Corniche phased to open partly in late 2017.

The development is expected to provide 38,000sqm of total

“The forefront of retail development is The Avenues, an Alshaya Group-led project at Bahrain Bay Corniche phased to open partly in late 2017. The development is expected to provide 38,000sqm of total leasable retail space and an impressive range of facilities”

12 March 2017

Source: CBRE

Bahrain remains committed to pressing on with key infrastructure projects despite enduring a challenging economic climate, according to the Q4 2016 Bahrain MarketView developed by CBRE. According to figures released

by Bahrain’s Economic Development Board, in Q3 2016, growth was led by the

Market Report

Bahrain prime monthly retail rent (Q4 2016)

leasable retail space and an impressive range of facilities,” said Heather Longden, associate director, CBRE Bahrain.

Residential sector stable The predominance of residential use, in both smaller projects as well as larger mixed-use phased developments, is at present a popular choice for developers in the Kingdom of Bahrain, with take-up rates, occupancy levels and rental and sales rates remaining generally stable.

Regional

Community/Neighbourhood

Average monthly rent (BD/month)

25

20

15

10

5

Anchor

In-line

F&B

Entertainment

Bahrain five-star hotel room growth (2008-2020) Supply by year

Hotel room growth

8 10

6 8 5 6

4

4

3 2

Number of rooms (000’s)

Number of new hotels

7

2

1 08

09

10

11

12

13

14

15

16

17

18

19

20

Bahrain executive villa rental market (Q4 2016) 3 bedroom

4 bedroom

5 bedroom

1,600

Average monthly rent (BD/month)

Hospitality sector continues to see development growth According to the CBRE Bahrain MarketView, the hospitality sector and luxury segment also continue to see growth in development. The 2015 announcement of the influx of 4-star and 5-star hotels continued to trend in 2016, with a number of hotels and branded residences planned to open in 2017.

There are currently 111 hotels operating in Bahrain, with the most recent opening being the Downtown Rotana. However, this figure is set to rise, with the Wyndham Grand at Bahrain Bay and the Marriott Residence Inn at Water Garden City planned to open in 2017 along with The One & Only Resort.

“The positive development in Bahrain has raised concerns over whether demand will be able to absorb the increase in stock.

“However information released by the EDB paints a positive picture, with a rise in visitor numbers to more than 12.2 million people in 2016, up by 6% from 2015, and the overall hospitality sector growing by 7.3% annually in 2016,” James Lynn, director, CBRE Bahrain, commented.

Super Regional

1,400 1,200 1,000 800 600 400 200 Traditional Compound

Private Villa

Gated Community

In late 2016, Bahrain Marina Development Company awarded Al Hassanain Contracting Company the contract to execute and complete the marine works for the Bahrain Marina project.

Aiming for completion by 2020, the planned development spans a large portion of the eastern coastline in Manama and will comprise residential, entertainment, leisure and marina facilities.

Juffair and Amwaj Islands, as well as Seef District opposite City Centre Mall, also continue to be popular as personal investment choices, particularly for GCC nationals.

These locations tend to return attractive annual rental yields of 8% on average, depending on rental inclusions and utilities.

Data for Q4 2016 shows that an average two-bedroom mid- to high-range apartment unit, generally targeted at the expatriate market, is now rented for between BD500 and BD800 per month, fully furnished and typically inclusive of municipal taxes and utility charges as well as internet and satellite TV connections.

A one-bedroom unit is typically priced on average at between BD400 and BD600 per month, and a three-bedroom apartment is in the range of BD900 to BD1,300 per month, depending on location.

In terms of the northwest of the island, which houses well-equipped and luxury compounds with villas to let that offer security to the predominantly expatriate community, demand remains relatively stable.

However, following the start of the school year, there has been a slight decrease in demand in Q4 2016.

March 2017 13

News Analysis

Regulation paves way foR cReative funding in gcc Karim Nassif, credit analyst at S&P Global Ratings, analyses the impact of the Basel III regulations on project finance lending and what they mean for the GCC project market

As global demand slows, economies and companies around the world are transforming, laying the groundwork for long-term sustainable growth and stability.

Infrastructure is a critical part of this evolution, and as these requirements continue to rise, so too does the demand for project finance. With increased capital requirements making bank lending more expensive, how is the growing pipeline of projects going to be funded?

According to the World Bank, the MENA population is projected to increase by more than 40% over the next few decades. This requires investment of over $100 billion per year to maintain and develop new infrastructure.

S&P Global Ratings expects Gulf government spending on projects alone, including infrastructure contracts awarded between 2016 and 2019, to be about $330 billion.

In addition, corporate entities’ refinancing needs will remain significant, with $23.6 billion in 14 March 2017

gulf government spending S&P Global Ratings expects Gulf government spending on projects alone, including infrastructure contracts awarded between 2016 and 2019, to be about $330bn.

News Analysis

capital market financings, $11.9 billion of corporate sukuk and $11.75 billion of corporate bonds due between 2017 and 2019.

Government funding requirements for infrastructure, combined with corporate refinancing needs, places additional pressure on the ability of banks to lend. However, with the Basel Committee on Banking Supervision issuing revised minimum capital requirements in January 2016, the amount of capital banks must hold by 1 January, 2019 increased by an average of 40% under Basel III regulation.

This could increase with the finalisation of Basel IV, which in its current draft form requires banks to adhere to even stricter leverage ratios. This could mean a major increase in capital requirements for long-term project financing, such as renewables

and energy infrastructure. With banks increasingly coming under pressure to provide the type of long-term funding required by infrastructure projects, the cost of project financing may have to rise to compensate.

Since banks in the GCC have traditionally operated with high levels of capital, Basel III is expected to force banks to shift capital from project finance to other activities. It is true that the implementation of the regulation will vary from country to country, with each national regulator having some degree of flexibility as to how it implements the framework.

Regardless, higher requirements will make lending more expensive and risk weights for different asset classes are expected to rise.

This has a two-pronged impact on project financing: it could both reduce tenors and increase

the involvement of European financial institutions participating in long-term lending to the region.

Coincidentally, tighter capital rules for banks come when deposit growth in the GCC is slowing, driven by a decline in liquidity on the back of lower oil prices.

Historically, the bulk of Gulf banks’ funding has been generated by locally raised deposits. However, growth in customer deposits slowed to 2.4% in the first nine months of 2016, compared to 5.4% in 2015, for GCC banks.

Customer deposits are expected to continue to slow in 2017 and 2018, as governments and related entities, whose deposits depend on oil prices, contributed between 12% and 35% of the total deposits of GCC banks as of 30 September, 2016.

With oil prices expected to remain muted, the ability of banks

to rely on customer deposits will become increasingly difficult.

This means banks will favour shorter-term lending rather than the longer-tenor lending facilities required by infrastructure projects.

Which brings me back to the original question of how these projects will be funded. We believe the Gulf will be fertile ground for alternative forms of project finance, in favour of the capital markets. We have already seen some projects tap the markets for funding, such as Ruwais Power, a power project based in Abu Dhabi.

While it remains to be seen whether full adherence to Basel III by the GCC financial sector will provide the catalyst to favour a greater mix of capital market financing for infrastructure, what is clear is that corporates and governments will need to be more creative about funding.

Global water, wastewater and processing storage solutions Epoxy coated steel tanks

Concrete tanks

Cylindrical steel tanks

Hot press GRP tanks

Hot press steel tanks

Balmoral Tanks Providing turnkey services to the water, wastewater and processing sectors, Balmoral Tanks offers what is potentially the widest range of accredited tanks from a single supplier in the world.

When this is supported by unrivalled engineering design experience and industry-leading customer service, installation, maintenance and repair services, why consider going anywhere else?

Balmoral Tanks: Not just another tank company.

Roof structures

Tank installation

Technical services

+44 (0)208 665 4100 watertanksales@balmoral.co.uk

www.balmoraltanks.com March 2017 15

In Profile

“For me, it’s about bringing into Focus what our clients really want, and what they really need. i think in the heat oF battle we can lose Focus oF what is important” Big Project ME meets with Wael Allan, the new CEO of Drake and Scull International, to hear about how he intends to return the contractor to its roots, and back to the top. Gavin Davids reports 18 March 2017

In Profile

March 2017 19

In Profile

O

n February 14, 2017, Drake and Scull International released its un-audited, preliminary financial results for the fiscal year ending December 31, 2016. With the contractor having endured a few difficult years recently, the figures finally brought some much-needed love to the Dubai construction giant.

In the 2015 fiscal year, the company had posted a net loss of $255.65 million. In comparison, the FY2016 figures showed that it had made a net loss of $214.27 million, while its ongoing order backlog hit $2.20 billion at the end of 2016. Overall, revenue for FY2016 came in at $871.24 million, compared to $1.14 billion the previous year, the contractor added in its statement.

Furthermore, the total value of project awards secured in FY 2016 stood at $221.89 million, with the UAE and the Engineering business accounting for 23% and 72% of the backlog respectively, a reflection of DSI’s strategic ongoing focus on its core home market and engineering business.

Although there continue to be significant liquidity challenges in the regional construction industry which continue to impact DSI’s operations and performance, things are actually looking up for the contractor, says new CEO Wael Allan, who took over when Khaldoun Tabari stepped down in October 2016.

A chief reason is the news that Tabarak Investment, a UAE-based investment firm, has injected new capital worth $136.13 million into DSI, subject to the 20 March 2017

Focusing on clients Wael Allan says he’ll be pushing his DSI team to focus on clients’ needs and aligning the company with its clients.

approval of DSI shareholders and the Emirates Securities and Commodities Authority (SCA).

This much-needed investment comes on the back of Allan’s appointment as CEO, and is part of a wider turnaround plan being implemented by the contractor’s new management team. In Q4 2016, PricewaterhouseCoopers (PWC) was appointed to help oversee the implementation of this turnaround, as Wael Allan and his team looked to bring DSI back to its roots.

With all this going on, the coming year is shaping up to be a crucial one Five months into his tenure as CEO, Big Project Middle East caught up with Allan at his offices in IMPZ to find out how the restructuring and reshaping of one of Dubai’s more venerable contractors is going.

“Personally, for me 2016 has been one of the toughest years

“At times when cash is abundant, people may forget the fundamentals.

I think the fact is that low oil prices will weed out the weak, and I think only the good will remain”

in my career. We had difficult market conditions generally, and actually I’m not sure that there won’t be any more difficulties than last year. For me, it’s about bringing into focus what our clients really want and what they really need. I think in the heat of battle we can lose focus of what is important,” he says, in reaction to the financial results, which were released the day before the interview.

“What went right last year was that we brought in a good management team that is focused on clients’ needs and on aligning the company with our clients. My view is very simple – without clients, we have no purpose in life. At the end of the day, they are the people who give us our revenue, and our relationship with them determines how profitable we are – and in fact, determines our reputation at the end of the day.”

Speaking about Tabarak’s decision to invest in DSI, Allan highlights the impact it will have on the company, not just in terms of monetary benefits but also with regard to the contractor’s reputation in the market, following a difficult few years.

“That’s just proof to show that they really understand and appreciate that Drake & Scull has great fundamentals and good foundations. Obviously, we’ve been through tough times, but I see now light at the end of the tunnel for all of us with the company.

“I feel that they’re really a strategic partner. Somebody who’s willing to put a significant amount of money into the company and not just support us financially, but also support us operationally. From what I’ve seen already from some of the people proposed to come on the board, they’re people who understand business very well

In Profile

“My view is very simple – without clients, we have no purpose in life. At the end of the day, they are the people who give us our revenue, and our relationship with them determines how profitable we are – and in fact, determines our reputation at the end of the day” and are commercially astute. It’s bringing a momentum of change.

“With a serious UAE-based investor like Tabarak, I really feel like we’ll see great results that will help us in the local markets in the UAE, which is our backyard and main home market. I’m looking forward to some really good opportunities to work with them,” he asserts.

Change is something Allan is very keen to bring to DSI. He

initially came on board as chief operating officer in April 2016.

Since then, he has focused on putting together a team that has a good dynamic between members, a sense of alignment with where he wants to take the company, and most importantly a sense of trust between all parties.

“What was really important for me, along with obviously taking the ship in a certain direction, was that I wanted to make sure

that the people that were with me and in the team were all aligned and supportive of the vision and direction. It’s about trust, confidence and support for one another. I really feel that with the team we have, all those dynamics are in place.”

With the majority of the company’s revenue coming from the key markets of Saudi Arabia, Qatar and the UAE, Allan states that for the foreseeable future,

the focus will be on consolidating DSI’s presence in these markets.

Saudi Arabia is especially important, given the challenges that market poses – oil prices going down, jobs being cancelled and substantial dues being owed from previous clients – he outlines.

“Saudi Arabia is a unique market in a way. I don’t think you can run it remotely or without getting too involved in it. I would say that we could have done things maintaining local supremacy DSI will be focused on consolidating its presence in key home markets, focusing on projects in the UAE, Qatar and Saudi Arabia.

March 2017 21

In Profile

better in Saudi Arabia. We’re looking to make sure that we focus on our core competencies in KSA. “I think we ventured into the general contracting arena in Saudi Arabia when maybe the market was extremely competitive.

Maybe we did not appreciate how much effort we needed to put in. So now what we’re doing in Saudi is continuing our business there, clearing some of the legacy issues and pursuing our claims vigorously, but also focusing on our core competencies

of bidding for MEP work.

“Selectivity is key – not only in Saudi Arabia, but also in the UAE and Qatar. So that means we choose clients we can align closely with in terms of objectives and that we have a good working relationship with,” Allan states bluntly.

To that end, the priority is returning DSI to its roots, and while refocusing on its core competencies of MEP might sound regressive, Allan asserts that there will be no room for

complacency; his ambition is for the contractor to be the number one in these main markets.

“At the end of the day, why do people come to Drake & Scull? It’s for our MEP capability. It’s a great brand name, with more than 100 years of experience in MEP. Our strategy is very simple – we want to be number one in any market that we play in, in the MEP arena.

“If you ask me, can we be number one in Dubai’s MEP market? Of course we can. Can we do the same in Abu Dhabi?

The answer is yes. Can we become number one in Saudi Arabia? We’re certainly in the top three and we can get there.

The same applies to Qatar.”

However, when it comes to an international market, such as India for example, he concedes that this may not be so easy to achieve. With intense competition in the Indian MEP market, Allan says that in the long run, DSI will look to exit and focus the company’s energies on its successful wastewater

“Our primary idea is to retrench back to the base and focus on our core competencies and geographies, but it’s an ongoing process. As you know, exiting a construction market is not as easy as just making the decision”

22 March 2017

In Profile

keep on contracting While DSI will be exiting a number of its operations, it will keep its general contracting arm, GTCC, active in the UAE.

treatment firm, Passavant Energy and Environment, which is doing well there.

Of course, as a business entity, DSI’s fingers are in more than one pie. The company currently has operations across a number of market sectors: Rail and Infrastructure, Oil & Gas, Energy and Environment, Engineering, and Construction.

Although he intends for the company to return to its core competencies of MEP, Allan explains that operations in these sectors will continue, although some will need to be reassessed and looked at with an eye towards the future performance and growth of the company.

“We’ll continue to play strongly in the infrastructure area, in the building area and as well in the energy and environment area.

Passavant is really our vehicle for the energy and environment market sector. Much of what is done in Passavant is very close to what we do in MEP, so it’s really an extension of our core competencies in the MEP area.

“And again, with the oil & gas market sector – where we perform extremely well – we’re very comfortable in that area, and it’s really an extension of our MEP capabilities. But I think

where we’ve decided that we’ll exit is general contracting in all areas, except for the UAE, where we have a company called GTCC. I think we’ve gone through the learning curve, we’ve paid for it, and I feel that we’ve got something valuable there. We could make a difference and contribution to the general contract landscape in

Dubai, and possibly in Abu Dhabi.

“I think that our view is that in times of distress, we want to create stability and focus back on our core geography and home markets, so we would be less interested in expanding outside. Other markets, where it’s opportunistic or unsustainable in the long run, we’re probably going to look at

maybe exiting those markets.

“Our primary idea is to retrench back to the base and focus on our core competencies and geographies, but it’s an ongoing process. As you know, exiting a construction market is not as easy as just making the decision. Of course, we’re keen to ensure that we fulfil our existing obligations and finish whatever we’ve committed to, but I think going forwards selectivity is high on our agenda, in terms of geography, clients and market sectors.”

As part of this shift in strategy, Wael Allan adds that the changing nature of the construction market in the GCC also opens up new opportunities for Drake & Scull International as it looks to adapt to the changing attitudes and trends in the region.

To this end, the new CEO states that although the contractor will be returning to its MEP roots, it will also have to move up the value

March 2017 23

In Profile

chain by embracing technology and sustainability concepts. At present, some 60% of budgets proposed when bidding for a job are actually used on materials and equipment. Therefore, the selection of materials becomes a key factor in achieving sustainability goals, he says.

“We want to create an excellence centre in terms of engineering capabilities and actually endorse more of an EPCM model. Our strategy operationally is to do more engineering in-house and move towards modularisation and prefabrication, which will cut down on time, increase quality and also design sustainably early on.

“Bringing design and field operations of construction together is key for us, and we will adapt aggressively. I believe the long-term solution and vision for us, to enhance our profitability and to become a double-digit profit business, is to embrace more innovation. So that means increasing our technical and engineering capabilities through BIM, through sustainability and through the better selection of materials and equipment that we use in our work,” he asserts.

Of course, while it is key to evolve and adapt to a changing environment, Allan is realistic enough to know not everything can be done in-house, especially when the company is working to regain its sense of identity.

To this end, he reveals that he is encouraging his team to look at a “good split between direct hire and subcontracting”.

“Any excess will probably have to be done through subcontracting. It’s about knowing our supply chain and managing that really well, and making sure that we get into good, effective partnerships with some of our supply chain. This 24 March 2017

adapting aggressively Allan says that the key to DSI’s future is being able to embrace innovation and adapt to the demands and trends of the market.

“At the end of the day, why do people come to Drake & Scull?

It’s for our MEP capability.

Our strategy is very simple – we want to be number one in any market that we play in, in the MEP arena”

will ensure that we get the best value and services to our clients and stakeholders,” he adds.

As the former regional head of consulting and engineering giants Hyder Consulting and Arcadis, Wael Allan is probably one of the most informed people in the region when it comes to understanding the distinct challenges that arise in the relationship between consultant, contractor and client. Now that he is at the head of one of the region’s foremost contracting firms, he tells Big Project ME that there needs to be a shift in the way all parties in the industry do business, given the challenging circumstances the construction sector is facing.

“I think the problem generally is that there are too many players or fingers in the pie. Alignment is absolutely key. There needs to be a delivery model that aligns the client’s objectives with the

consultant, or the consultant and the contractor. They must align their objectives with what the client wants. In some cases, that is definitely not the case. You have different people pushing in different directions. The lack of alignment causes a lot of conflict and problems which delay payments, progress and quality.

“I’m a strong advocate, more and more, of the EPCM model, where it’s all in-house and you engineer everything, buy the equipment, execute it, commission it and deliver it,” he says, highlighting why he has been keen for DSI to move in that direction.

“Hopefully, this sort of issue will encourage our clients to think differently about how they procure and award projects. There is some work to be done in that area, and I think as contractors and consultants, hopefully we should contribute positively to that discussion and get things done in a much better way.”

And while he acknowledges that low oil prices will continue to pose challenges to the construction industry, he points out that it also affords the sector an opportunity to rethink the way it works on projects. This extends to both pricing and execution.

“At times when cash is abundant, people may forget the fundamentals. I think the fact is that low oil prices will weed out the weak, and I think only the good will remain. I have to say that we are questioning the way we do things – the way we conduct business, and the way we’re looking to increase productivity and efficiency.

“So while I think it’s been very difficult for all contractors, and all our supply chain, I think we’ll come out of this much stronger and wiser than we were before,” he concludes.

ON THE RIGHT TRACK?

Has your project budget and schedule derailed? Continuously backtracking? Steaming ahead or just blowing smoke? Climb aboard the CCS express train for a fast-track experience to project success.

For over 35 years, CCS software solutions have been developed by contractors for contractors. At the leading edge of industry trends, Candy and BuildSmart put you in complete control of your construction project – from depot to destination.

CCS proudly partnered with contractors involved in landmark rail projects worldwide including the Dubai, Riyadh and Doha Metros and Rapid, Underground and National rail networks and infrastructure across Europe, the Far East, UK, Australasia and South Africa.

“Their continuing commitment to upgrading and improvement has always maintained CCS as a contractor’s system at the leading edge of technology.”

Mike McAra, Head of Estimating - Concor Engineering, SA

Put your project on track and advance full steam ahead with CCS. Don’t miss the train, call us on +971 4 346 6456 or email info@ccsgulf.com

Project Profile

26 March 2017

Project Profile

Deira regeneration Big Project ME profiles Nakheel’s Deira Islands megaproject following an exclusive media tour of ongoing works March 2017 27

Project Profile

L

ocated on the east side of the Dubai Creek, Deira has long been considered the old quarter of Dubai. It was here that the first traders built the commercial centre of the city – a legacy that still survives to this day, with the busy dhow wharf a reminder of how important this part of the city was to trade and life in Dubai.

Even though Dubai’s commercial heart has shifted to the downtown and DIFC areas, this bustling centre still plays

an important role in Dubai’s economy, with tourists and local residents still coming to Deira to visit cultural landmarks and shop at prices far lower than found elsewhere in the city.

With connections to Dubai Metro and a number of direct road links, the area has seen a regeneration of sorts over the years, with the Dubai government backing the revitalisation of the Corniche area and the construction of a new fish market to supplement the existing space, one of Deira’s best-known areas.

Looking to build on this, Dubaibased master developer Nakheel launched the Deira Islands project in 2014 as a 15.3km2 waterfront development that will capitalise on the local area’s popularity and accessibility. Comprising

FACTS AND FIGURES 15.3km 2 Will add 40km of coastline, including 21km of beach, to Dubai Anticipated population 250,000 Expected to create around 80,000 jobs Almost 557,418sqm of retail space (by Nakheel) Around 3,000 apartments/hotel rooms (by Nakheel)

four man-made islands off the coast of Deira, these artificial islands were once planned to be the Palm Deira, but Nakheel has now decided to repurpose them into the Deira Islands project.

They will add an additional 40km – including 21km of beachfront – to the emirate’s coastline, and offer ample scope for the development of hotels, serviced apartments and residential projects, the developer says.

As construction on Islands A and B is well underway as part of the first phase of the project, Nakheel invited a select group of journalists to visit the site and get a sense of how work is progressing on the megaproject.

Ali Rashid Lootah, chairman of Nakheel, led the site tour, stating

Scope for development Deira Islands will add an additional 40km to Dubai’s coastline, offering ample space for future development.

28 March 2017

Project Profile

Works ongoing There are 2,750 workers on the Night Market construction site, which is being built by UNEC.

that the developments will “adhere strictly to what a city centre should be these days”.

The developer has awarded around $816.83 million worth of contracts to date, with more expected to be confirmed soon.

Contractors were asked to submit bids to build the $1.08 billion Deira Islands Mall by February 20, 2017, while a tender inviting contractors to bid for work on the $1.36 billion Deira Islands Boulevard site, which contains 16 residential towers available on lease, was issued in January 2017.

Once complete, it is expected that 250,000 people will live on the islands, which will also be home to 557,418sqm of Nakheeldeveloped retail space.

“There will be a few freehold options made available by yearend, mostly for commercial plots,” says Lootah. “But the emphasis of this development is going to spread between hotels, retail and residential.”

be ready for fit-out by the first half of 2018, with the public opening scheduled for the end of that year.

“The rates we have leased the units at were very attractive,” Lootah says. “People know what the rate is in Deira, so people who had a vision – they jumped on it. The market will have everything [in terms of retailers].

We wanted to give it a proper

souk concept, not make it a mall.

But naturally, with time, it’ll regulate itself. People of certain activities will enter [and the retail profile will change accordingly].

That’s why we called it the Night Market, not the Night Souk.”

At present there are around 2,750 people working on the site, which has UNEC as the main contractor and is set to be the

“We wanted to give it a proper souk concept, not make it a mall.

But naturally, with time, it’ll regulate itself. People of activities will enter [and the retail profile will change].

That’s why we called it the Night Market”

Phase one in development The Night Market is part of Nakheel’s first phase of development for the Deira Islands project.

The Night Market

The first phase of development will include the development of a night market, which will include 5,300 units and 96 cafés and restaurants, and will stretch along a 2km, 400m-wide site, Lootah said. The $427.4 million project will face the Deira shoreline and March 2017 29

Project Profile

world’s largest night market, Nakheel says. It will be the first component of the Deira Islands development to open to the public. Lootah explains that the project has been designed to “reinforce the imagery and old world charms of Dubai’s traditional souks”, including the narrow lanes, store-front shopping and smaller unit sizes.

“The whole area will be pedestrianised. There will be certain areas for parking, but mainly it’ll be for walking, and there’ll be a promenade along the beach.”

Of course, given Dubai’s summer temperatures, a lot of planning and consideration was given to the design, layout and cooling systems of the Night Market. While the plan was always to push more natural cooling, Lootah does concede that some air conditioning will be included to help with the cooling process.

“There will be a little bit of air conditioning for comfort levels, but it is costly and it’ll affect [the cost of operation and maintenance]. And it’ll defeat the idea of a night market, which is a concept of making things more affordable – so we have to control the cost,” he explains.

“There are grilles in place that will allow natural streams of air, and it will be cooler than normal souks as we’ve put in some AC units. It’ll be between 26 degrees and 28 degrees. There will be some relief cooling, but also bear in mind that we’re only operating after sunset.

The market will operate from after 5pm, to about midnight.”

Infrastructure on the Islands

Once complete, the four islands that make up the Deira Islands project will contain more than 15.3sqkm of land. However, the developer has decided that only the two islands closest to Deira 30 March 2017

DEIRA ISlANDS BoUlEvARD Project construction tender released January 2017 Anticipated delivery 2020 22 towers, including 16 residential buildings 2,900 apartments and around 1,000 hotel rooms/serviced apartments

DEIRA MAll Construction

Designed for cooling The Night Market has been designed and laid out to encourage natural cooling within the structures, though some air conditioning will be included.

“All the resort plots, we’re trying to keep them for Nakheel.

We have joint ventures with interested parties – we’ve already signed two and we have two more in the pipeline.

Hopefully this year, we’ll be able to announce them”

proposals deadline was February 20, 2017 Corniche will be developed at present. 5.1km2 (Island A), and 3.2km2 (Island B) in size, the two projects are expected to be ready by the end of 2020.

Construction on Islands A and B is underway, with Stage One of infrastructure works completed in September 2016 and Stage Two of infrastructure now underway. Island A is expected to see Stage Two complete in 2018, while Stage Two on Island B is due for completion by 2019. The work on Island A will be carried out by contractor Wade Adams, while the Island B contractor is a joint venture between Target & Jima/Top Link.

“There’s also substation work going on,” Lootah says. “There are a total of eight substations being planned. For Island A, we have two currently under construction.

We plan to phase them out, so that when people start building, we’ll complete more and more substations. November 2017 is the completion schedule for the two being built currently. For

603,869sqm shopping and dining destination 418,063sqm of leasable space (including Towers/Boulevard) 1,100 shops

DEIRA ISlANDS NIGhT SoUk Under construction, completion 2018 Main contractor is UNEC 2,750 workforce and 180 items of heavy equipment currently on-site 5,300 shops, 96 quayside cafés and restaurants Stretches 1.9km along the waterfront 100% leased

Project Profile

Island B, we have one substation under construction, which is being done by Siemens.”

There are currently 157 workers involved across these projects, Nakheel adds.

Meanwhile, dredging and reclamation works for Island C – the biggest, at more than 6.7km2 – and Island D have been carried out, but Lootah says there is no start date planned for their development at the moment.

“It’s a future plan,” he says. “We’re focusing on the first two islands.”

INFRASTRUCTURE Stage 1 infrastructure (Islands A & B) completed September 2016 Stage 2 infrastructure underway Island A Stage 2 due for completion 2018 Island B Stage 2 due for completion 2019 Island A contractor

hospitality Joint ventures

Looking at the location of the Deira Islands site, Lootah has previously spoken about the targeted market for hospitality.

Speaking in 2014, the Nakheel chairman targeted the release

is Wade Adams Island B contractor is a JV between Target & Jima/Top Link

of 94 plots under the first phase of development, with more than 500 plots expected to be made available across the two islands.

More than 23,000 hotel keys and 31,000 apartment keys would be added to Dubai’s property market once the first two islands were complete, he said at the time.

“We will be targeting three- and four-star hotel operators to build on the Deira Islands site, since there is a definite lack of waterfront hotels in that price range.”

Returning to the present, Lootah says the take-up of plots for the hotels facing the water has been positive, with more than 30 plots spoken for.

These are split into the larger resort-style plots and those defined as waterfront. Nakheel has also entered into joint

ventures for two resorts, while two additional deals are likely to be announced this year, he reveals.

“All the resort plots, we’re trying to keep them for Nakheel.

We have joint ventures with interested parties – we’ve already signed two and we have two more in the pipeline. We’re talking to them, and hopefully this year, we’ll be able to announce them.”

Hotels with prime access to the beach or the breakwater have been assigned top priority in the project development planning, due to how they tie in with Dubai’s current strategic focus, a Nakheel official says, adding that the islands will add nearly 3,000 hotel rooms directly owned by Nakheel or its joint ventures.

In total, the developer plans to build five resort hotels on Deira Islands.

Life’s a beach The Deira Islands project will add 21km of beachfront to Dubai’s shoreline.

March 2017 31

Site Visit

Deira Mall and Boulevard

Envisioned as the heart of the master community planned by Nakheel, Deira Mall will be home to more than 1,000 shops, cafés, restaurants and entertainment outlets, spread across 371,612sqm of leasable space. Built across three floors, the project will feature a state-of-the-art atrium with retractable roofs, and a multi-storey car park with nearly 8,400 spaces will also be built for the project, the developer adds.

Deira Mall will be the centrepiece of the Deira Boulevard project – a $1.36 billion community which will feature 16 residential towers, 2,900 apartments and retail and recreational spaces. Combined, the two projects will offer 418,063sqm of shopping space.

The Deira Boulevard project will house 10,000 people and will be a hub for residential, leisure activities and hospitality,

“There will be a few freehold options made available by year-end, mostly for commercial plots.But the emphasis of this development is going to spread between hotels, retail and residential”

the developer says, adding that the entire project is a crucial element of the Government of Dubai’s tourism vision.

Nakheel has released a tender for the construction of 2,924 apartments and townhouses in 16 residential towers across four clusters. Each tower will house a swimming pool and retail, restaurant and recreational facilities. A 4,500-space, podiumlevel car park will also be built at the development, which will have a total built-up area of more than 650,321sqm.

The Deira Islands Boulevard project is set on an area of more than 836,127sqm, the equivalent of 120 football fields. The developer explains that it intends the project to be a self-sustaining community that offers living, leisure and retail facilities, with 20% of the development dedicated to communal outdoor space such as gardens, shaded walkways and sports facilities.

TIMElINE 2014 April: $12.79 million design and supervision contracts awarded for Night Souk and Boulevard June: Deira Mall announced as $10.8 million design contract awarded 2015 March: Phase 1 infrastructure begins June: $149.7 million contract for 23.5km coastal works handed to Van Oord July: Coastal work begins 2016 February: Nakheel and RIU sign JV for $245 million, 800-room resort August: Work begins on RIU resort September: Phase 1 infrastructure works completed September: Work begins on $1.36 billion, 20-tower Deira Islands Boulevard october: Phase 2 infrastructure begins December: Nakheel completes $40.8 million access bridge in collaboration with RTA December: Nakheel/ Centara sign JV for $122.5 million, 550-room resort 2017

Hub for the area Nakheel aims for the Deira Islands project to become a hub for the entire area of Old Dubai.

32 March 2017

January: Deira Islands Boulevard tender release

A Specialist Geotechnical Contractor who combines industry-leading equipment and technology

WE SPECIALISE IN GROUNDWORK SHORING PILING GROUND IMPROVEMENT

DUBAI

First Floor Office No. 5 Gargash - Mercedes Benz Showroom Sheikh Zayed Road, Al Quoz 3, P.O. Box 87555 Dubai, UAE Tel: +971 4 323 3378 Fax: +971 4 323 3367

ABU DHABI

Mussafah M-11 P.O. Box 37175, Abu Dhabi, UAE Tel. +971 2 555 8982 Fax. +971 2 555 8983 Email: info@gulfpiling.com Website: www.gulfpiling.com

Marine Piling

Building on the waters Darko Matijas, division manager of Ecocoast Contracting, sits down for a brief chat with Big Project ME to outline the scope for marine piling in the local market

specific techniques and systems Marine piling calls for more specificity than land piling, due to the varied environment and challenges the systems have to cope with.

34 March 2017

Dubai has always had a close relationship with the sea.

Established in years gone by as a fishing village, it grew to become an important stopping point for regional seafaring traders, before the discovery of oil allowed its rulers to develop infrastructure further and turn it into a global hub for international shipping.

That close relationship with the sea is reflected in the way its communities and suburbs have grown. Whether natural or artificially created, Dubai’s seafront is prime real estate property for residents. As a result, a number of

investments over the years have resulted in the development of key marine infrastructure such as jetties, marinas and docks.

Underpinning these key marine projects is the use of off-shore piling technology. While everyone is familiar with the use of piling on land-based projects, marine piling is a somewhat more arcane science due to the vast disparities in operating environments.

In order to better understand how marine piling works, Big Project ME spoke to Darko Matijas, division manager of Ecocoast Contracting, a

Marine Piling

specialist marine contracting firm that provides services to developers, contractors, operators and governments across the Middle East, Africa and Asia.

With piles in marine structures constantly being subjected to significant lateral and uplift forces, caused by berthing operations and wave action, it is often necessary to drive them to much greater depths than on land. As a result, the materials used are different.

“Marine piling is a bit specific, because most of the time it’s open or closed tubular piles that we’re talking about,” says Matijas.

“Traditionally, steel tubular piles are used for marine piling.

Obviously, concrete piles can be precast and there’s also wooden piles, but they’re not often used – usually only for smaller installations like marinas.”

“If it’s a bigger installation, like a jetty, then there’s a combination of vertical and rigged piles in order to make the structure more stable.

There’s a lot of prep-work involved – you obviously need barges, cranes and, for the installation of bigger piles, hydraulic impact hammers are used, which are rarely used in land piling, if ever.”

Although a number of projects are coming up along the waterfront which necessitate marine piling technology, Matijas points out that the biggest challenge in the industry is getting people to accept and adopt new methods and technologies.

“In the UAE, consultants are pretty aware of new technologies, but sometimes the biggest challenge is getting them accepted as a mainstream thing.

The industry is developing at a greater pace than ever before, and both the technology and equipment is readily available.

But for some of the equipment, consultants here aren’t really comfortable implementing them.”

This reluctance is something Ecocoast Contracting has encountered with regard to its own patented equipment, he says.

The company has developed a pile sleeve made of ultra-high molecular weight polystyrene which, when installed on existing piles, helps prolong their lifespan and protect them from corrosion and damage.

“When the sleeve is installed on the pile, it extends the lifespan of the pile to at least double the standard life, because the properties of the material are such that it has the impact

“The industry is developing at a greater pace than ever before, and both the technology and equipment is readily available.

But for some of the equipment, consultants here aren’t really comfortable implementing them” properties of steel, and it protects the pile,” says Matijas.

“So far, we’ve installed it at Dubai Marina, in the Yacht Club. It was a free-of-charge installation to show them what it is like. In the past four months, we’ve had excellent results.

Aesthetically, the way it looks is incomparable to the existing piles, while the protection of the piles is to such a level that even we were really surprised by it.

“In fact, we’re now getting contacts and enquiries. For example, a consultant is requesting us to implement this to be installed on a project. As we’re the sole distributor for the region, [it’s good for us].”

Looking at the UAE market for the year ahead, Matijas expects the Dubai market to continue to perform strongly, despite the slowdown in the construction sector. However, with the completion of projects like the Dubai Canal and the step up in preparations for Expo 2020, he expects the marine piling job market to be fairly positive.

“For Dubai in particular, the outlook is very good because of the Expo and all the other projects that have been announced recently. The market seems to be doing pretty strong.

“In fact, it seems the biggest problem would be getting the companies who are supposed to be supplying [equipment and material] to increase their production to meet the anticipation of the client.

“It seems that a lot of recreational marine projects are there [in Dubai]. We’re bidding for them, and we’ll see how it goes.

Some of them are heading our way pretty definitely, but at the moment, not all the subcontractors have been announced yet.

“However, Abu Dhabi is perhaps worrisome at the moment. Land piling companies aren’t doing too well over there at the moment, apart from a couple.

Abu Dhabi is slowing down. It might just be for this year, or for the next, I can’t predict that far ahead – but Dubai is still going strong,” he concludes.

March 2017 35

Project Management

36 March 2017

Project Management

Managing Projects

As project management moves to centre stage, Big Project ME shines the light on the industry, featuring two international companies in growth mode and planning to expand their regional PM roles March 2017 37

Project Management

o

ver the past 30 years, the traditional model where lead consultants provide a diverse set of skills has evolved into a more specialised, focused project management discipline.

This has allowed the project team to focus on its core strengths, be it design, technical, commercial or construction management activities.

It is now clear that project management (PM) is here to stay, as more and more companies value its importance and recognise its indispensability. The discipline has gained much traction over

the decades, moving centre stage and now coming into its own.

Client requirements still need to be identified, defined, designed and managed; cost and financial matters need to be controlled and contracts to be assembled.

Add to that the appointment of contractors, procurement of materials, oversight of construction activities and completion of processes. It is not difficult to see the all-pervading significance of project management.

The need for project management services is growing as GCC governments and developers are determined to deliver ambitious infrastructure plans. As projects become more complex, so does the scope and role of the project manager. Largescale programmes require a lot of different components to come together and coordinate complex situations and developments.

“A good project management team provides the client with an independent, overarching view and the overall guidance and leadership required to ensure a project is a success”

Early engagement

Given his long association with the industry, Bob Smith, senior vice president and programme director, Parsons, knows the worth of project management only too well. He explains the significance, scope and breath of PM. “Project management is not only critical, but early engagement is also basic and vital for a project’s success in terms of scope, scheduling, budgeting and quality control.

Projects that fall off track in any of these important topical areas rarely recover,” he cautions.

Project management is pervasive and essential to Parsons’ work. All of its divisions are engaged in executing PM services.

Each division has a focus on a particular market sector and houses all of the speciality technical and management talent required to implement projects. These divisions include master planning,

growing need The need for project management is growing in the GCC as governments look to deliver on ambitious infrastructure plans.

38 March 2017

Project Management

buildings, roads and bridges and land development. The company operates in a matrix posture, designed to allow all divisions to reach out to sister divisions globally for speciality support.

Another major integrated international PM services provider is AECOM, with a multidisciplinary background and long-standing presence in the Middle East. The PM team, in the words of Jonathan Hayes, director of Construction Services, AECOM, UAE & Oman, has the experience in the design, contracting and consultancy fields to provide a valuable blend of experience, skill sets and capabilities in alignment with the client and project-specific requirements.

“Whilst the focus is on the provision of client-facing project management services, the practice also contributes significantly to the overall company business revenues,” he adds.

company contributor Jonathan Hayes, director of Construction Services for AECOM UAE and Oman, says project management services can contribute significantly to overall company business revenues.

Opportunities despite the slump

Large footprint

Parsons is currently engaged in several big-ticket mega projects and programmes in the Middle East, including upgrading the traffic control systems for Dubai, the design of the Dubai Municipality (DM) Tunnels Project, the Abu Dhabi International Airport expansion and several key projects in Qatar and Saudi Arabia.

“Project management is the core business at Parsons. Project managers must manage the owner’s design, construction and develop processes, procedures and systems to deliver a cost-effective project on schedule and within budget,” affirms Smith. He also stresses the company’s holistic approach to project management and continued investment in people and training programmes.

Hayes also advocates the early and extensive engagement of a PM team. “A good PM team provides

most major infrastructure projects, so our customers’ planning is impacted by fluctuations in oil & gas prices. Thus the GCC countries’ efforts to diversify their economies away from a disproportionate dependence on oil & gas revenues, and their focus on infrastructure development for tourism, trade and finance, present opportunities for project management to provide solutions in multiple sectors that are not reliant on oil prices.”

According to Smith, many projects initially experienced a slowdown while customers revamped their strategies to deal with the changed market conditions. “Importantly, a number of customers have decided that they need new businesses and project management processes as a result of the financial challenges, which is creating demand in new areas of service.”

cost-effective projects Bob Smith of Parsons says that a project management team must be able to deliver a cost-effective project on schedule and within budget.

the client with an independent, overarching view and the overall guidance and leadership required to ensure a project is a success.” Hayes believes that the earlier a PM team is engaged, the greater the value it can add through the early identification of need, the development of an effective client brief, the identification and mitigation of risk, and the identification and maximisation of opportunities.

Prestigious projects

AECOM is also currently working

on several projects in the UAE. These include the Midfield Terminal Complex, Abu Dhabi, a 700,000sqm terminal building; Brookfield Place, Dubai, a 290m, 53-floor quality commercial building; and the Al Maryah Central, a 185,000sqm retail development in Abu Dhabi.

How is the current economic situation affecting PM companies?

Smith’s response may appear paradoxical, but it rings true.

“Hydrocarbon revenues contribute significantly to government budgets in the GCC, which in turn fund

Smith sees opportunities for project management in the downturn. “Parsons offers revised and enhanced business models including KPI-based returns, alternative project delivery (APD) and design-build systems that allow it to deliver right riskadjusted returns. Parsons also uses Building Information Modelling (BIM) and other modelling tools to streamline work processes.

This is another savings driver that helps the company offset the overall headwinds in the market.”

Hayes’ narrative follows a similar track. “The price of oil has historically influenced the buoyancy of the construction sector and continues to do so.

Recent socio-political instability has created uncertainty in the region, but interestingly brought economic opportunities to the UAE, as it is viewed as a haven for investment,” he asserts.

AECOM sees new realities in the new economic landscape, March 2017 39

Project Management

adding value The biggest challenge facing project management firms is demonstrating how they add value in an environment where clients are looking to cut project costs.

“Project management is not only critical, but early engagement is also basic and vital for a project’s success in terms of scope, scheduling, budgeting and quality control. Projects that fall off track in any of these important topical areas rarely recover” where the UAE has a long-term strategy to reduce its reliance on oil revenues and to diversify into other sectors to attain sustainable growth. “The PM industry is having to adapt by finding ways of becoming more competitive, improving value and through a leaner delivery team,” he maintains.

High demand for professionals

Meanwhile, PM professionals continue to be in high demand as more investments become available for infrastructural work. Given the current dearth, the Middle East will need PM professionals. Of the present staff strength of 4,500 employees in the Middle East, approximately 200 are certified project managers, according to Parsons’ internal classification that requires they formally pass certification study and examination by the Parsons PM Board.

40 March 2017

AECOM also foresees expansion and will continue to develop its capabilities throughout the region, focusing on repeat business via excellent relationships with established clients and selective pursuit of new PM opportunities in non-oil related sectors, notes Hayes.

Winds of change have also been blowing over the regional PM industry. Architects and engineers previously doubled as project managers, but recently it has become a specialised service, he observes.

BIM, the new normal

Smith says the most significant changes occurring over the past several years include the BIM concept, and tools to help increase efficiencies and lessen attrition in project risk management.

He is also all for standardising regulations, greater transparency

and open communications.

In Hayes’ estimation, the use and application of BIM is also becoming more prevalent and is rapidly becoming the new standard. He believes the use of BIM will gain thrust, coupled with planning, quantity measurement and construction sequencing strategies to achieve growth and profitability.

Countering challenges

As with any industry or business enterprise, challenges are never far away. Smith says two of the most important challenges for the PM industry are having the right tools and the right people.

Hayes has a rather different take on the industry. He says that as clients look to reduce overall project costs, the role of PM has come under close scrutiny, with many projects being delivered under a traditional model where

a lead consultant works directly with the client and contractor.

“The principal challenge facing the PM industry is, therefore, demonstrating how it adds value as clients look to reduce overall project costs.”

However, the Middle East offers good potential for the growth of the PM industry, both experts claim. “The region is very significant for our PM teams, and one third of our staff are located here. It has our largest concentration of projects outside of North America, and we continue to see new avenues for growth,” says Smith.

“Our PM team has continued to grow and perform well despite variable and challenging market conditions, with new projects and appointments being secured. I see strong prospects to continue growth of the PM business,” concludes Hayes.

Better Life...

Better

Quality

COMPANY PROFILE

Great Life styles are a symbol of beautiful living all over the world. One of the components of such a Life is the SIYARAM TILES that surround rich and famous. Modern living is about digital blasphemy surrounding us.

SIYARAM VITRIFIED group is committed to providing continuous innovations to satisfy your aesthetic demand. We provide new idea for decorating your home with special formats like 600 x 600 mm & 600 x 1200 mm Vitrified Tiles.

Our innovations never stop and all products are strictly in accordance with international standards. We have installed the latest ceramic machinery.

We shall always be more than eager & awaiting your suggestions.

An isi. 9001: 2008 Certified company

Stand Number:

1D72 India Pavillion

SIYARAM VITRIFIED PVT LTD 8 - A, National Highway, Nava Jambudiya Road, At. Jambudiya, Morbi - 363 642 (Gujarat) INDIA. Cell: +91 97277 20999, +91 99098 22444 Email: marketing@siyaramvitrified.com www.siyaramvitrified.com March 2017 41

Cloud Data

utilising the cloud By using the cloud, construction professionals can operate on a major project no matter where they are in the world, thereby greatly improving productivity and efficiency.

The BenefiTs of ConsTruCTion in The Cloud

Eric Law, senior director, Product Management at Bentley Systems, outlines how cloud data can help contractors execute their projects more efficiently The goal of construction is to create a physical structure that is put into place by construction professionals on-site. Therefore, it might seem ironic that many construction teams are now harnessing a virtual infrastructure – the cloud – to execute their very real projects.

Relying on virtual technology for building is nothing new. Builders have used ink and paper to create two-dimensional virtual representations for centuries.

While not virtual in the sense of computing, physical drawings were, and in some cases continue to be, a means for communicating a virtual representation of a structure.

42 March 2017

With the evolution of computing and networking capabilities, however, there is growing momentum to take advantage of cloud technology to move beyond the use of virtual representations of structures towards the capture and delivery of a wide variety of data throughout the project lifecycle.

The proliferation of internet availability, broadband and mobile devices is allowing teams to break free from the physical restraints of previous generation computing.

This reality is accelerating the development of cloud-based services that capitalise on the

unprecedented availability of data, and is fuelling the deployment of solutions that harness the flow of data between office, site and field.

Users can access project data and connect with each other wherever there is internet connectivity. Today, many design and construction teams are dispersed throughout the world.

The architect might be in Spain, the engineering firm might be in New York, the project might be in Dubai.

Enabling project participants to collaborate and share data improves their performance.

The concept of access to data leads us to another big advantage

of cloud-based solutions – the ability to off-load the responsibility of IT infrastructure management.

Computer networks and servers are required for data delivery and storage, and they are expensive to buy, operate and maintain. Servers must be housed somewhere and a staff is required to manage them.

Construction companies that make a strategic move to cloudbased services can provide their teams with seamless access to project data while reducing the expense of buying and maintaining their own data infrastructure.

The issue of scalability is also efficiently addressed with cloud

Cloud Data

solutions as they can quickly scale up or down to meet the changing business needs of a project-based industry. Also, cloud-based solutions have ‘instant-on’ capability for fast deployment on new projects, and your users will always be on the latest version of the solution without the inconvenience of having to update their software tools. Having your data stored in the cloud storage can also function as disaster-proof backup, as there are multiple backup servers located in different geographic locations.

No technology is going to succeed if it is difficult for teams to

use, and many organisations have made the mistake of investing in expensive custom solutions that are so cumbersome that their teams refuse to use them. The evolution of the cloud is moving hand-in-hand with a growing number of maturing solutions.

These solutions – built specifically to take advantage of the cloud – deliver an expected ease of use that makes them easy for teams to embrace. This acceptance is partly due to the improving functionality of the solutions and the increasing comfort of users, based on their increasing experience with mobile and cloud-based technology.

Effective collaboration is at the centre of successful project execution. A cloud-based design and construction solution facilitates this by providing the ability to share data and manage deliverables in a controlled, transparent, common data environment. The upshot is that these solutions close the loop between design, construction and handover.

In the design phase, your team can work securely in a common environment while collaborating with other project participants on version-controlled documents. Users can share drawings, models and files of any type with authorised recipients inside or outside their organisation, and streamline document reviews by alerting project participants when their attention is required. This type of solution allows the virtualisation of talent across geographically dispersed organisations, for greater efficiency of staff resources.

A project’s construction phase requires participants who will transform the design into the completed project. Construction managers, contractors, subcontractors and consultants require a system that can support the workflow requirements of

“Effective collaboration is at the centre of successful project execution. A cloud-based design and construction solution facilitates this by providing the ability to share data and manage deliverables in a controlled, transparent, common data environment”

the construction phase – such as RFI and submittal review – and they will need to collaborate with participants involved in the design phase. The cloud is particularly suited for allowing the project supply chain to expand organically within a secure, easily accessible data environment.

Combining BIM technology with cloud delivery via desktop and mobile devices is a powerful combination for construction teams. Your teams can perform simulations to identify constructability issues, and collaborate efficiently between office, site and field to mitigate issues found in the field. Field personnel can review and mark up 3D i-models along with associated drawings and all types of documentation.

Well-designed applications can also improve the quality of data collected in the field and reduce the need for manual data entry through customisable forms that synchronise data back to the cloud.

Automated, cloud-based collaboration applications have very reliable up-time and are useful for capturing a complete record of what happens on a project. With this type of project record, you can see how your team is performing and which participants are holding up the flow of communication. Also, if the project runs into trouble, having a complete record of all project documents, communications and the actions of all project participants is incredibly valuable.

This data can be used to verify or dispute claims that might arise.

With the amount of construction data, such as the data from drones and the powerful applications that are being built for them, continually increasing, now more than ever it makes sense to adopt cost-effective, accessible, reliable and scalable solutions.

March 2017 43

Site Visit

MeTrO 44 March 2017

Site Visit

Big Project ME visits Alstom’s Katowice plant in Krakow, Poland, where the rail transportation giant is building the carriages that will run along Lines 4, 5 and 6 of the Riyadh Metro. Gavin Davids reports

delivery March 2017 45

Site Visit

i

n November 2015, French multinational rail transport solutions provider Alstom announced that it had begun production on the trains from the Riyadh Metro project, with work commencing at its Katowice plant in Poland.

The rail giant was tasked with manufacturing all 69 of the Riyadh Metro trainsets as part of a $6.2 billion contract awarded to the FAST Consortium by Saudi Arabia’s Arriyadh Development

Authority (ADA) for the design and construction of Lines 4, 5 and 6 of the network. Together, the three lines have a total length of 64.5km, which will include 30km of viaduct. 29 stations and two depots will also form part of the $22.5 billion network.

Alstom’s share of the contract is $1.3 billion. With the company scheduled to deliver the first three trainsets to the ADA in 2017, work at the Katowice plant is in full swing, as Big Project ME discovered during a recent trip to Poland to check on the progress.

Employing more than 1,000 people, the plant is one of Alstom’s largest train manufacturing sites in the world. Every step of trainset production is carried out at the plant, including the final

ALSTOM KEY FIGURES 1,200 employees 2 main sites including one depot 64,500sqm of manufacturing halls 20 years of Alstom presence in Poland in transport 20 Pendolino trains in service 40% of components sourced locally from subcontractors in Poland Over 150 years of legacy in railway manufacturing

static and dynamic tests.

Production on trains for all three lines is currently underway, with five sets completed so far.

The first trainset was completed in January, leaving the Katowice plant for Saudi Arabia via the port of Hamburg. Two of the trainsets are undergoing dynamic testing in France, while a fourth has been sent to the Rail Tec Arsenal climatic test chamber in Vienna, Austria. A second trainset was scheduled to be delivered to Riyadh in February.

At present, there are eight Metro trainsets in the production phase, with the complete order – along with infrastructure – scheduled to be handed over by the end of 2018.

When production is at full pace, the facility will be turning Working at full pace At full pace, the Alstom facility will be able to turn out five trainsets a month off the assembly line.

46 March 2017

Site Visit

enhancing passenger experience Alstom and ADA are working together to design the carriages so as to ensure that passengers get the best travel experience.

out five trainsets a month off the assembly line, Alstom says. The sets are Metropolis automated aluminium two-car systems, each one 36m long and capable of accommodating up to 231 passengers. The trains are all 100% motorised, allowing them to run on tracks with a slope gradient of up to 6%, while on the flat, they are designed to run at a top speed of 90km/h on a standard-gauge track.

Alstom is one of three Metro suppliers working on the Riyadh Metro project, and one of the key factors is that the trainsets being supplied have to be specifically designed for the conditions they’ll be operating in. Each trainset will feature a powerful airconditioning system, adaptable to the extreme heat found at the peak of summer in Riyadh.

Furthermore, as the first ever public transport system in the Saudi Arabian capital, the manufacturer is installing specific features to enhance the passenger experience, says Samir Karroum, Middle East and Africa vice president of systems and infrastructure at Alstom.

Platform screen doors are being installed to ensure safety and fluidity, he explains, adding

that the Metro trainsets will feature an advanced passenger information system that delivers real-time information through screens and loudspeakers. This will allow passengers to orient themselves more easily, while allowing smooth people flow.

The interiors of the trains have also been designed for

comfort and usability, with each carriage containing high-comfort seating and layouts specified by ADA. These will incorporate design elements that echo Riyadh’s architecture and history, with handrails shaped in the style of palm trees and seating covers that replicate patterns found in traditional houses.

“People in Riyadh don’t have experience in using public transportation.

But at some point, they will have to use it.

With the bus and Metro, they won’t need a car!

We’ve planned everything in detail to make it easier for them to use”

Manual production All the work on the Riyadh Metro carriages is being done manually by Alstom staff.

March 2017 47

Site Visit

“We are visiting retail outlets, offices and homes to introduce the project and tell them about the detours during construction.

People appreciate this because they then understand that this project will improve their lives for the future”

All social classes welcome The carriages will be divided into three classes - first class, family and single class. This will encourage all sections of society to use the Metro, ADA says.

Each train will have three classes – first, family and single class. These will be separated by glass partitions, while the exteriors will be colour-coded according to the lines they are running on. Line 4 will be yellow, Line 5 green and Line 6 purple.

Alstom will be supplying its Urbalis signalling systems for

the automatic train control and power supply, along with its Hesop braking energy recovery system, designed to “deliver the best energy efficiency and reduced infrastructure cost”.

‘Hesop’s novelty lies in its specific single convertor with dynamic regulation, which optimises the power required for

driverless trainsets The trainsets for the Riyadh Metro will be 100% driverless so as to increase efficiency and performance.

48 March 2017

traction and captures more than 99% of recoverable energy during braking mode,” Alstom says.

Pierre Delpierre, Metro product director for Alstom, says that because the trainsets are driverless, the system can be accelerated in an easier manner than it would with additional drivers being called, a process that takes hours, especially in cases of bad weather.

Additionally, the system is eco-friendly, as it shortens the distance and time between trains due to being able to programme them for maximum efficiency.

Alstom will also deploy Appotrack, a mechanised solution that allows installation of tracks three or four times faster than using normal methods. This not only reduces logistical challenges, but also cuts down on CO2 emissions, noise, dust and waste, while also limiting the disturbance to traffic.

While Alstom and the consortium have been tasked with delivering the Riyadh Metro, the Arriyadh Development Authority has also been heavily involved with the project. Khalid Alhazani, director, Architectural Project Programme and Public Affairs, the man tasked with leading

Site Visit

“We are on schedule. We have reached 48% completion and we believe that the Metro will start operating by early 2019, with no delays” the project for ADA, says one of the key elements of the project is educating and informing Riyadh’s residents about the benefits of using the Metro.

“This is the first Metro project in the Kingdom. People in Riyadh don’t have experience in using public transportation,” he says, speaking during a presentation to media. “But at some point, they will have to use it. With the bus and Metro, they won’t need a car! It will take time for people to get used to using public transportation, but we’ve planned everything in detail to

make it easier for them to use.”

The Riyadh Metro project is set to be one of the world’s largest urban transport projects, aiming to lift more than three million commuters off roads, to reduce the city’s massive traffic congestion problem.

“We are on schedule. We have reached 48% completion, and we believe that the Metro will start operating by early 2019, with no delays,” Alhazani says, adding that the six lines will cover 176km across the city, with 85 stations.

Walkways are being designed along the lines, with landscaping

and public rest areas built into the routes. 25 car parks will also be built, so that residents can use their cars to reach their nearest station before switching to the public transport network.

The Metro, along with a 24-line bus network, is part of the King Abdulaziz Project for Riyadh Public Transport. It aims to meet the demands of the city’s growing population, estimated to jump from six million to more than eight million by 2030. At present, around nine million trips are made daily in the city, causing major

congestion and air pollution issues. By implementing the new public transport system, the Kingdom hopes to reduce car trips by 803 million per year.

This will save more than 620 litres of fuel per person annually and more than $185 million in air pollution costs per year.

“We are visiting retail outlets, offices and homes to introduce the project and tell them about the detours during construction.

People appreciate this because they then understand that this project will improve their lives for the future,” he concludes.

Answering the demand The Riyadh Metro aims to meet the demand of the city’s growing population, which is estimated to jump from six million to eight million by 2030.

March 2017 49

Show Review

InnovatIon In the SpotlIght at Mee 2017

The 42nd edition of Middle East Electricity had a key focus on the development and implementation of Smart Cities across the region

touring the show His Excellency, Hussain Nasser Lootah, director general, Dubai Municipality, is shown taking a tour of Middle East Electricity 2017.

15 February, Dubai, UAE: Middle East Electricity (MEE), which concluded last week at the Dubai World Trade Centre, put innovation at the forefront of the 2017 edition, with a keen focus on smart innovations and the current market products and trends that come with it.

Hosted by the Ministry of Energy and in partnership with Dubai Municipality, the event showcased a number of

special features and content platforms designed to help the industry learn and develop in line with its goals to become smarter and more sustainable.

Speaking on the sidelines of MEE, HE Suhail Mohammed Al Mazrouei, Minister of Energy for the UAE, said, “Middle East Electricity has made an invaluable contribution to our industry over the past forty-two years and continues to highlight the

latest trends and innovations through its Smart Cities theme this year. As we put into practice the UAE Energy Strategy 2050, announced at the beginning of 2017, to provide clean, secure, affordable and sustainable energy to all residents, the opportunities this exhibition provides are more important than ever.”

Driving the discussion was the Energising the Smart City conference, which took place

on day two of the exhibition.

Opening remarks for the conference were delivered by HE Hussain Nasser Lootah, Director General, Dubai Municipality, who updated the industry on a number of key initiatives that are to be implemented in the lead-up to the strategic plan of 2021, which includes the rollout of Dubai Lamp, a bulb that has an energy usage of 1 watt and a life of 15 years. He also discussed the roll out of solar lighting across a number of parks throughout Dubai, as well as the upcoming Desert Rose City – a fully sustainable mixeduse development which will accommodate both Emirati and expat residents and will produce energy through wind, solar and bio-thermal, among others.

The fourth edition of the Future Generation Competition also took place, giving students from universities across the Middle East a platform to present their own projects and technologies around the theme of Smart Cities.

Middle East Electricity and Solar Middle East 2017 were held under the patronage of HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, and took place from February 14-16 at the Dubai World Trade Centre.

“As we put into practice the UAE Energy Strategy 2050… to provide clean, secure, affordable and sustainable energy to all residents, the opportunities this exhibition provides are more important than ever” 50 March 2017

We at Golden Rock & Aggregate, take pride in having been the preferred and chosen partner of our esteemed clients in the field of Quarrying and Supplying Granitic Gabbro Materials.

Our Crushers located at Al Siji – Fujairah boasts Global Standards for having over 25 years of sourcing Prime Granitic Gabbro Materials to our credit. Our industrious 120 plus man power, operating 3 plants, generating 25,000 Metric Tonnes per day, with 20 hours of operational Crusher lines, Grizzly core crushers, VSI’s and Sand Classification Plants, with commitment to Quality has given us the vision to expand our Operations to increase our production capacity to 45,000 Metric Tonnes per day in the Near Future.

Our Clients list is a testament to the excellence that we deliver.

Our heartfelt appreciation and reverence to Golden Ready Mix, Delma Engineering – Abu Dhabi, Abbaza Group- RAK, Western Bainoona- Abu Dhabi, L&T Construction, SS Lootha Ready Mix, China Harbour Engineering, German Concrete Works, Gulf Rock Kuwait, Qatar Alpha Beaton (Doha).

Accountability is our Motivation and surpassing Customer Expectation is our Motto.

Thank You Clients, for your patronage while we continue to deliver excellence through our diligent competencies with inspiring Commitment and as always continue our Best Process and Practises to deliver outstanding/high results.

Golden Rock & Aggregate LLC P.O.Box 4463 Al Siji, Fujairah UAE

Division of Gokulam Group of Companies

Jebel Ali Industrial Area 2 PO Box 171929,Dubai,UAE,T +971 4 8803534/53 F +971 4 8803226

Tenders

Top tenders Palace of Justice construction ProJect

aJDan Waterfront ProJect – Phase 1

Budget $500,000,000 Project number AD/H/130-K territory Kuwait client Amiri Diwan (Kuwait) Phone (+965) 1800008 / 2846 2116 fax (+965) 2222 1417 Description Construction of a new palace comprising two towers Period 2019 status New Tender tender categories Prestige Buildings tender Products Commercial Buildings, High-rise Towers

Project number MPP2408-SA Budget $150,000,000 territory Al-Khobar 31952, Saudi Arabia client Ajdan Real Estate Development (Saudi Arabia) Phone (+966-13) 899 6999 fax (+966-13) 889 5999 Description Development of a waterfront scheme comprising two towers of 40 floors each, offering 180 residential units as well as a 275-room hotel

status New Tender tender categories Hotels, Prestige Buildings tender Products Hotel Construction, Residential Buildings

tender categories Construction & Contracting, Hotels, Leisure & Entertainment tender Products Hotel Construction, Playgrounds & Associated Equipment, Residential Buildings

north coast resort ProJect corniche toWers ProJect Budget $100,000,000 Project number MPR1524-E territory Egypt client Al Fanar Group (Saudi Arabia) Phone (+966-11) 9200 06111 fax (+966-11) 275 6699 Website www.alfanar.com Description Construction of a resort, including an 18hole golf course and a number of residential buildings status Current Project

Budget $50,000,000 Project number WPR1523-U territory Abu Dhabi, United Arab Emirates client Foundation Property Management (Abu Dhabi) Phone (+971-2) 667 2311 fax (+971-2) 667 2911 Website www.foundationproperty.ae Description Construction of 3 towers of 25 floors each with dedicated 2-bedroom, 3-bedroom and 4-bedroom apartments comprising 4 dedicated residential basement parking levels and 3 upper level parking levels for retail clients status New Tender tender categories Prestige Buildings tender Products High-rise Towers, Residential Buildings

Mix-034 toWer ProJect Project number ZPR734-Q Budget $50,000,000 territory Qatar client Private Investor (Qatar) Description Construction of a hotel apartments building comprising 4 basement levels, a ground floor and 31 additional floors Period 2018 status Current Project tender categories Hotels, Construction & Contracting tender Products Hotel Construction

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

52 March 2017

Tenders

Middle East tenders UAE caliDus facilities construction ProJect – al ain airPort Budget $50,000,000 Project number WPR1522-U territory Al Ain, United Arab Emirates client Abu Dhabi Airports Company (ADAC) Phone (+971-2) 505 5000 / 505 5555 fax (+971-2) 575 8300 email info@adac.ae Website www.adac.ae Description Construction of Calidus facilities at an airport Period 2018 status New Tender tender categories Airport, Construction & Contracting tender Products Airports Development & Management

Saudi Arabia cheMical factory ProJect – inDustrial city 2 Budget $3,000,000 Project number WPR1390-SA territory Riyadh, Saudi Arabia client Al Alamya Chemical Company (Saudi Arabia) Description Construction of a chemicals factory Period 2017 status Current Project tender categories Industrial & Special Projects tender Products Chemical Plants

riyaDh MeDical Village ProJect

reneWaBle energy PoWer Plants ProJect

Project number WPR1546-SA territory Saudi Arabia client Tatweer Group (Dubai) Phone (+971-4) 330 2020 fax (+971-4) 330 2233 / 330 2010 Description Development of a medical village comprising 10 hospitals, 33 clinic buildings, 250,000sqm of underground parking area, a hotel, a training centre, housing units and offices status Current Project tender categories Construction & Contracting, Hotels, Medical & Healthcare tender Products Commercial Buildings, Hospital Construction, Hotel Construction, Residential Buildings

Project number WPR1536-SA territory Riyadh, Saudi Arabia client Ministry of Energy, Industry & Mineral Resources (Saudi Arabia) Phone +966-11-478 7777 fax +966-11-476 9017 email webmaster@meim.gov.sa Website www.meim.gov.sa Description Development of two new solar and wind power plants with a combined capacity of 700MW status New Tender tender categories Power & Alternative Energy tender Products Photovoltaic Plants, Solar Energy, Wind Energy

Oman My city centre sur Mall ProJect Budget $39,000,000 Project number WPR1570-O territory Muscat PC 11, Oman client Majid Al Futtaim Investments (Oman) Phone (+968) 2453 7788 fax (+968) 2454 5320 email inquiry@mafgroup.ae Website www.majidalfuttaim.com Description Construction of a new community mall comprising a hypermarket as well as 50 select stores, including food and beverage outlets Period 2018 status Current Project tender categories Construction & Contracting, Hotels,

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

54 March 2017

Tenders

Leisure & Entertainment tender Products Retail Developments

iDealMeD Muscat hosPital construction ProJect Project number WPR1554-O territory Muscat, Oman client IDEALMED Muscat Hospital (Oman) email contact@idealmedmuscat.co Website http://devmuscat. idealglobaltek.com Description Construction of a high-tech hospital with a capacity of 100 beds Period 2019 status New Tender tender categories Construction & Contracting, Medical & Healthcare tender Products Hospital Construction

solar salt refinery ProJect – ras Banoot Budget $26,000,000 Project number WPR1521-O

territory Seeb PC 111, Oman client Al Ghalbi International Engineering & Contracting LLC (Oman) Phone (+968) 2421 9999 / 2421 9993 fax (+968) 2421 9955 email alghalib@alghalbi.com Website www.alghalbi.com Description Construction of a solar salt refinery with capacity of 135,000 metric tons per annum Period 2017 status Current Project tender categories Industrial & Special Projects, Oilfields & Refineries tender Products Refinery, Offsite & Utilities

Bahrain Busaiteen shoPPing centre ProJect Project number WPR1556-B territory Manama, Bahrain client Eskan Bank (Bahrain) address Seef District, Almoayyed Tower, Seef Area Phone (+973) 1756 7777 fax (+973) 1756 4114 email inquiries@eskanbank.com Website www.eskanbank.com Description Construction of a shopping mall comprising a ground floor and an additional floor status New Tender tender categories Construction & Contracting, Leisure & Entertainment tender Products Retail

Kuwait Jazeera terMinal construction ProJect KuWait international airPort Budget $46,000,000 Project number MPR1532-K territory Kuwait client Jazeera Airways (Kuwait) Website http://jazeeraairways.com

Description Engineering, procurement and construction (EPC) contract to build a new terminal for Jazeera Airways with capacity to handle 1.2 million passengers annually Period 2018 status Current Project tender categories Airport, Construction & Contracting tender Products Airports Development & Management

Jordan solar PhotoVoltaic PoWer Plant ProJect – aMMan Project number WPR1535-J territory Amman 11152, Jordan client Jordan Hospital Phone +962-6-5608080 / 30 fax +962-6-5607575 email public.relations@ jordan-hospital.com Website www.jordan-hospital.com Description Development of a solar photovoltaic (PV) power plant with a capacity of 4.7MW Period 2017 status Current Project tender categories Power tender Products Photovoltaic Plants, Solar Energy

INTEGRATED ESTIMATING, PROJECT CONTROL AND ERP SOLUTION FOR CONTRACTORS www.ccsgulf.com | Tel: +971 4 346 6456 | info@ccsgulf.com

March 2016 55

Last Word

Can Construction be More Sustainable?

Fabrizio Nicoli and Milena Dimitrova of FILA Middle East outline how suppliers can help change the mind-set of the construction industry towards sustainability Sustainability is becoming a predominant concern in our society, and there is no denying that we need to take into consideration the impact the construction sector has on the planet in the construction phase and in the long-term running of buildings if we want real change.

Locally, Dubai Green Building regulations have recently been implemented, which set down the rules for a sustainable building.

According to the Dubai Municipality, ever since their implementation the consumption of electricity and carbon dioxide emissions in the city have been reduced by 20% and waste by 50%.

On the international level, some constructionrelated companies have long been conscious of the impact of the construction sector on

56 March 2017

“There is a real culture of cutting costs to a minimum in the construction industry, although slightly more expensive products have less harmful effects and are more sustainable”

the environment and have worked on solutions to limit it. One of them is the market leader in surface protection, FILA Surface Care Solutions. Its products span from pre-grouting protectors, detergents and sealants to aftercare maintenance and stain removal solutions.

Yet getting the construction sector to stop focusing solely on the cost of surface protection is not easy.

“There is a real culture of cutting costs to a minimum in the construction industry, and although slightly more expensive products will have less harmful effects on workers and are more sustainable while also offering better protection in the long term, some contractors will still only look at the price when choosing a product,”

explains Fabrizio Nicoli, commercial manager of FILA Middle East.

Changing minds takes time and does not happen from one day to the next.

That’s why companies like FILA are constantly discussing the advantages of going green with key players of the industry.

“Today, with waterbased, VOC-free and LEED-certified products, you can have the best protection for your materials while keeping humans and the planet safe, and this is the message we are trying to pass on to leading architects. We take advantage of industry events and carry out free technical seminars with our experts to help raise awareness for green solutions,” adds Milena Dimitrova, technical manager at FILA Middle East.

Nicoli and Dimitrova

feel that the specifiers of the projects – such as architects and consultants – are the best positioned to make sure construction works follow green guidelines.

Governmental regulations are also essential, and Nicoli has noticed an increase in requests for green products among major UAE projects since the implementation of green regulations like Estidama in Abu Dhabi and the Green Building Regulations and Specifications in Dubai.

It may not yet be clear what our sustainable future will look like, but the solutions provided by eco-conscious manufacturers and the UAE government’s efforts and attention to the environmental needs of the country can only bring better practices to the construction industry in the long run.

Bringing the latest

construction news from across the GCC

www.meconstructionnews.com

I GET WHAT I NEED. WHEN I NEED IT.

At KOHLER Engines, we recognise what is exactly required.

This is why in the most arduous and demanding working conditions, KOHLERÂŽ engines provide you with exceptional performance, higher productivity, low operating cost and ease of maintenance. With a highly specialised dealer network, trained on the latest emissions standard coupled with a substantial availability of parts worldwide, you can always count on us.

W W W. K O H L E R E N G I N E S . C O M / E U