FEBRUARY 2012
PLUS Jordan’s potential Imdaad CEO in profile Shaikhani lookS to 2012
BFE Architects on re-designing the school
Riyadh P.O.Box: 753, Riyadh 1421 Phone: 01 491 4624 / Fax: 01 491 4404 E-mail: mdrsales@ruh.kanoosa.com Kanoo Machinery LLC P.O.Box: 290, Dubai, U.A.E. Phone: +971 4 3378400 / Fax: +971 4 3373660 E-mail: exec.assistant-machinery@kanoo.ae
Dammam P.O.Box: 37, Dammam 31411 Phone: 03 857 1265 / Fax: 03 857 7139 E-mail: mddsales@kanoosa.com
Jeddah P.O.Box: 812, Jeddah 21421 Phone: 02 263 6171 / Fax: : 02 263 2979 E-mail: mdjsales@jed.kanoosa.com
Bahrain Yusuf Bin Ahmed Kanoo WLL P.O.Box: 45, Manama KSA Phone: +973 17738200 Fax: +973 17732828 E-mail: ajit.s.nair@ybakanoo.net
www.kanoogroup.com/ kanoomachinery
FEBRUARY 2012
Contents
25
REGULARS FEATURES
31
Editor’s letter 6
16 News analysis
News bulletin 9
Investigating research that reveals a growing trend for depression among construction labourers
Talk 19 Shaikhani Group on the “year of stability” and 2012 outlook
Market explorer 25
43
Jordan may not have oil, but it does have new finance models and legislation
Career ladder 31 Clyde and Co’s Adrian Creed on PPP and international expansion
Supplier news 54 Tenders 61 Diary 65
56
Your shout 66
23 Comment: HLG Habtoor Leighton Group head of sustainability on re-using construction waste
38 Cover: Powers of construction The region’s power projects and the race to turn renewable
43 Onsite The British School Al Khubairet, Abu Dhabi
56 Roundtable: design school The architects behind Abu Dhabi’s BFE design competition
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EDITOR’S COMMENT
Publisher Dominic De Sousa Chief operations officer Nadeem Hood
“Power shift” H
ow the power needs of tomorrow will be met is one of the most urgent questions the world faces today. At last month’s World Future Energy Summit, held in Abu Dhabi, UN secretary general Ban Ki Moon launched the ‘sustainable energy for all’ initiative, with a promise of “universal access to modern energy services”. Under current estimates, the GCC will require 100GW in additional power capacity over the coming decade alone, due to the ever expanding needs of both the population and regional industries. Yet already, the six GCC countries make the list of the world’s top 25 polluters. It’s a heady, and unstable, combination. There are a number of developments in the pipeline that look set to break to fossil fuel ‘addiction’: Masdar City; four nuclear power projects planned for the UAE alone; and massive solar ambitions across the region. Will the Middle East forge itself a reputation for pioneering the latest technology and construction techniques required to meet the UN’s
Associate publisher Liam Williams liam@cpidubai.com TEL: +971 (0)4 440 9158 Editorial director Melanie Mingas melanie@cpidubai.com TEL: +971 (0)4 440 9117 GSM: +971 (0)56 758 7834
challenge? We look at the situation in detail on page 40 and also hear from Taylor Wessing senior associate, Michael Krämer, on the viability of a local solar industry. January also saw Abu Dhabi Executive Council announce massive spending plans for the Emirate; among these is a strategy for 100 schools, 24 of which will be sustainable. The Big Project went onsite at the British School Al Khubairat and spoke to architects from Broadway Malyan and Planar, about their designs for seven recently completed schools in the capital. Also in this issue, is commentary from Habtoor Leighton Group’s senior sustainability advisor Wissam Yassine and EC Harris’s Paul Foster and Nick Hayes. Next month, the focus will turn to Saudi Arabia, with an exclusive preview of one of the largest urbanisation projects to date and an in-depth report on the opportunities in Jeddah. Until then you can keep up to date with the latest news via our daily podcast and bulletins at www.thebigprojectme.com
Melanie Mingas Editorial director
Assistant editor Dan McAlister dan@cpidubai.com TEL: +971 (0)4 440 9118 Business development manager Junaid Rafiq junaid@cpidubai.com TEL: +971 (0)4 440 9150 GSM: +971 (0)50 104 7864 Business development manager Stuart Roe Stuart@cpidubai.com TEL: +971 (0)4 440 9125 GSM: +971 (0)56 758 7710 Business development manager Rhiannon Downie rhiannon@cpidubai.com TEL: +971 (0)4 440 9152 GSM: +971 (0)50 554 0116 Designer/Photographer Marlou Delaben Photographer Cris Mejorada Webmasters Troy Maagma Jerus King Bation Erik Briones Joel Azcuna Printed by Printwell Printing Press LLC Published by
Head Office PO Box 13700 Dubai, UAE Tel: +971 (0)4 440 9100 Fax: +971 (0)4 447 2409 Web: www.thebigprojectme.com © Copyright 2012 CPI. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
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Capital master plan Cultural and infrastructure projects revived in Abu Dhabi
F
unding for a string of new projects has been confirmed by Abu Dhabi Executive Council, signalling the start of tangible economic recovery in the capital Emirate. A flurry of reports from the government body at the end of January addressed huge social and transport infrastructure projects, and also renewed optimism in the Emirate’s troubled cultural district projects. The total value of the projects is still unspecified, but among those detailed were 100 schools; two major news roads, one of which will link to Ghweifat border with Saudi Arabia; thousands of homes; and confirmed progression of the midfield airport terminal (see box). Boosting public transport, Abu Dhabi will benefit from a new metro and tram system and utilities infrastructure will also be reinforced, with a new drainage system. “These investments reflect the growing importance of development to Abu Dhabi’s economy,” a statement from the council read. The first announcement was made on January 23, with subsequent details released in the following days. These included confirmation of opening dates for Saadiyat Cultural District. The Louvre Abu will open in 2015;
Zayed National Museum in 2016; and Guggenheim Abu Dhabi in 2017. Primary infrastructure projects will take place in Liwa, Ghayathi, Al Hayer, Al-Shuaib, Bida Al Mutawaa, Mazyed, Um Ghafa, Nema, Al Salamat Umm Alashtan and Alybanh. Residential areas in north of Al Wathba, Al Falah, Mohamed bin Zayed, and Emirati neighborhoods in metropolitan and other areas, will also benefit. The Emirate’s educational development strategy will also receive a huge boost under the plans, with 100 new schools planned – 24 of which will be ‘sustainable’. Last month the final schools designed by Broadway Malyan, under ADEC’s regeneration programme, were handed over. “These investments are aligned with the long term strategy of the Government to support infrastructure projects, and upgrade the level of services provided to its residents, investors and visitors. All projects take account of projected population growth, rates of urbanisation and growth in tourism,” the statement concluded. Abu Dhabi’s educational building programmes are covered in detail on pages 47-56
Abu Dhabi: Development highlights 100 schools by 2018 24 sustainable schools 6 special needs rehabilitation centres 14 new hospitals 364-bed Cleveland clinic to be handed over 13,000 new homes in North Wathba, in addition to other Emirati housing developments 7,608 residential villas to be handed over this year 700,000 midfield terminal at Abu Dhabi International Airport to be completed by Q4 2016 2.5KM² Madinat Zayed industrial zone and Al Rowais industrial zone 246km of roads to be developed 15 new overhead bridges Kizad budget approved Metro and tram system to be developed in Abu Dhabi and Al Ain 7% of energy to be renewable by 2020. Projects include Al Shams solar power plant. Masdar will provide 100MW of power 2015 expected opening for Louvre Abu Dhabi 2016 predicted opening of Zayed National Museum 2017 predicted opening for Guggenheim Abu Dhabi 327-kilometre three lane motorway between Mafraq and Ghweifat border point to be operational by 2017
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NEWS | REGIONAL NEWS
NEWS BULLETIN
NEWS | REGIONAL NEWS
$20,000 prize fund pledged for ctbuh research proposal into tall buildings
CTBUH calls for research proposals Prize fund of US$20,000 to assist R&D
A
call for proposals has been launched by the Council on Tall Buildings and Urban Habitat, for the body’s 2012 International Research Seed Funding initiative. The competition, which has a prize fund of US$20,000 aims to assist researchers in the development of projects and ideas related to tall buildings, in conjunction with the council. According to research from CTBUH, 2011 marked the fifth consecutive year during which the record for the most 200 metre or higher buildings completed in a given year, was broken. The rules state: Research proposals should directly relate to the tall building typology and/or urban habitat, but can come from any topic or discipline – including but not limited to: architecture, construction, energy issues, energy harvesting, environmental engineering, façades, financial and cost issues, fire and life safety, geo-technics, humanities, infrastructure, interiors, maintenance and cleaning, materials, MEP engineering, policy making, resource management, seismic, social aspects, structural engineering, systems development, urban planning, vertical transportation, wind engineering, etc. There are no institutional or geographic restrictions. The submission deadline is May 15, 2012 and the winning proposal will be announced at the 9th World Congress, Shanghai, China, from September 19-21.
Vision 2050 Arabia launched at WFES Private sector to receive advisory from PwC
G
ulf business leaders are to collaborate to “designing a sustainable pathway” for Gulf states by mid-century, under the Vision 2050 Arabia programme, Launched at the World Future Energy Summit last month. Launched on the back of the Vision 2050 Business Agenda report, by the UAE Business Council for Sustainable Development (BSD), the program is the regional adaptation of the Vision 2050 program initiated by the World Business Council for Sustainable Development (WBCSD) in 2010. Vision 2050 is the result of an 18-month effort by a core team of 29 companies including CEO’s and experts across 14 industries and dialogues with hundreds of companies and external stakeholders in some 20 countries.
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The key challenge in achieving the goals is relating to the specific needs of the GCC, said the council. “The UAE BCSD recognizes the pivotal role the World Future Energy Summit plays in bringing together global decision makers to debate and present solutions to our shared energy security and sustainability challenges, and UAE BCSD strongly believes that World Future Energy Summit is the right platform to Launch the Vision 2050 Arabia,” said Van T. Tran, head of development at the UAE BCSD. Global advisory firm PwC is supporting the 18-month project through project management, workshop facilitation and expert contributions from their global sustainability team.
• Incorporating the costs of “Vision 2050 externalities, starting with ecosystem services and is based on a carbon, water, into the structure of the sustainable marketplace; agricultural output future, when• Doubling without increasing the amount of or water used; a population• land Halting deforestation and of 9 billion increasing yields from planted people will • forests; Halving carbon emissions live well and worldwide (based on 2005 levels) by 2050 through a shift to lowwithin the carbon energy systems; limits of the • Improved demand-side energy and providing planet” BSD efficiency, universal access to low-carbon mobility.
Part of the state funded 2700km North/South track will link Riyadh to the Jordanian border.
Saudi arabia’s projected construction spend for 2012
KSA Public Investment Fund Saudi Big 5 Dedicated USA pavilion introduced signs three rail contracts $613 million for maintenance service buildings
T
hree contracts totalling $613 million were signed in Saudi Arabia on Saturday January 7, for the construction of maintenance service buildings and stations along the country’s longest stretch of railway. According to reports from the Saudi Press Agency, the state funded 2700km North/South track will link Riyadh to the Jordanian border and pass through Jubail Industrial city, Dammam Port and Rass Azzour. Upon completion, it will be the country’s longest railway. “The finance minister and head of the Public Investment Fund signed three contracts for the North/South railway, worth 2.3 billion
riyals,” SPA said in a statement. The largest of the contracts was signed with Al Rashid Trading and Contracting Co for around $200m. Other contracts were signed with Yabi Markazi Company and Sulaiman Al Qudaibi and Sons. Eventually the network will form part of the GCC wide track, linking to individual projects in the UAE and Qatar in particular. The North/South stretch of track is due for completion in 2018. The Kingdom’s wider rail project incorporates the Saudi Landbridge and Western Railway, linking Jeddah to Mecca and Medina to Yanbu. TOP: Andy White
PMV trends by Byrne rental Byrne Equipment Rental sees certain markets accelerating in demand for equipment, both rent and sale, while others (like certain civil construction markets) have reduced demand, leaving visible oversupply. Trends Byrne observes include: • Fewer large scale projects coming to the market which has caused increasing surplus plant available for the secondhand market, often at depressed prices as demand for cash increases. • A limited number of small projects which bidders look to rent equipment for rather than buy as the scale of such projects does not justify high capital spend. • More and more contractors are bidding for the same business and look to do so as cost effectively as possible. Companies are looking to reduce or eliminate CAPEX, which in turn creates opportunity for the equipment rental market. • A general trend amongst companies to refocus on core business: cut costs and outsource noncore activity, which
includes use of, and management of, plant and equipment. This in turn presents opportunity, albeit limited, for rental companies. Increased number of rental companies made up of; • Contracting companies who have no new projects in hand and look to rent or sell off plant and equipment to generate cash. • Increased numbers of rental companies coming from outside the region, mostly from markets where the global financial crisis has caused significant erosion of their home market. • Increased numbers of traditional equipment distributors and agents entering the market looking to compensate for the downturn in sales of equipment. • Increased demand for rental equipment from the many FM companies emerging in newly developed markets many of which do not have the desire or the capital to invest in equipment.
The Big 5, the region’s largest construction show, returns to Saudi Arabia next month for the second time. Building on the success of last year, The Big 5 Saudi 2012 is twice the size of last year and will also feature an outdoor area and a dedicated USA pavillion. Similarly to the Dubai show, held annually in November, there will be dedicated concrete and FM zones and outdoor PMV demonstrations and workshops. Educational seminars will focus on issues concerning LEED regulations and concrete repair. “We want to create a platform for the industry that provides access to the opportunities that the Saudi market presents now and for the upcoming years,” commented Andy White, event director for both the Jeddah and Dubai exhibitions. “The support for The Big 5 Saudi 2011, together with the event being recognised as the Best Trade Event 2011 at the Middle East Event Awards in its first year, has given us a very stable and promising foundation from which the event can grow,” White added. US$108,156m worth of construction to take place in Saudi Arabia in 2012 – an increase of over $7.1m from two previous years, according to a report by Ventures Middle East. The show will take place at Jeddah Centre for Forums and Events from 10-13 March 2012.
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NEWS | REGIONAL NEWS
$108,156
NEWS | REGIONAL NEWS
29
People died in accidents on construction sites in 2011, according to Abu dhabi municipality
MoU for US$140m lime production facility JV for Salalah Free zone, Oman
Empower CEO Ahmed Bin Shafar
Ahmad Bin Hamad Al-Nuaimi
APICORP records record profit Bank integral to development of regional energy industry The Arab Petroleum Investments Corporation (APICORP), the multilateral Arab bank in which the UAE government holds a 17% stake , has announced Q4 profits of US$57.5 million; an 86% increase and a record for the bank. “The achievements made in the fourth quarter will help further bolster the net worth of APICORP and serve to reinforce its fiscal stability in what we expect will continue to be a challenging economic environment in 2012,” said chief executive and general manager Ahmad Bin Hamad Al-Nuaimi. Jointly owned by the ten OAPEC member states, the bank has invested in 14 joint ventures since 1975 and has participated in direct and syndicated energy transactions worth an estimated $127 billion. It’s activities have been key to the development of the regional energy industry. The bank has been rated A1 for long-term debt and Prime 1 for short-term debt. Total assets at the end of 2011 amounted to US$4.63 billion.
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Empower’s Business Bay project complete Project complete ahead of schedule and below cost Phase four of the 70,000 refrigeration tonne district cooling network at Business Bay, Dubai, has been completed a month ahead of schedule, according to Empower. The network, covering the area from Bay Square to the end of Business Bay on north-west side, was supplied in a joint venture between Empower and Logstor Insulated Pipes Systems (ELIPS). The collaboration reduced costs total project by 25%. It marks the final phase of Empower’s district cooling provision at Business Bay. “We are delighted to complete the project with a high level of efficiency, seamlessness, precision and within the set budget and timeline. For this project, Empower supplied pipes manufactured by its joint venture partner Logstor Insulated Pipes Systems (ELIPS).This has allowed us to save 25 percent of the total cost of the project. Moreover, the site supervision was carried out entirely by Empower staff,” said Empower CEO Ahmed Bin Shafar. “We always work according to the timeline by constructing temporary and semi permanent work stations as per the actual demand. We have deployed the best technologies in constructing this world class network to ensure highest performance and quality,” Bin Shafar added.
Oman and the Salalah Free Zone will benefit from “a number of positive spin off” opportunities, after MoU papers were signed with Belgium’s Carmeuse Group for a US$140million lime production facility. The deal – to establish a joint venture production facility at Salalah Free zone (SFZ) – is part of an ongoing strategy to drive investment into the country; using natural resources to create jobs. “The new Carmeuse facility will be a key supplier to the GCC and Asia, which are increasingly using lime for industrial applications such as steel, aluminium, construction and environment. Specifically, significant demand should come from India, which is a substantial consumer of lime-related products required in a number of industries,” said Carmeuse CEO, Rodolphe Collinet. “Salalah unique location and competitiveness will enable us to serve our Asian customers more rapidly and competitively,” Collinet added. The Carmeuse facility will provide up to 300 jobs and aims to produce 50,000 tonnes of lime and limerelated products in its first year. Upon completion of all three phases of the plant in 2020, production will increase to 750,000 tonnes. “Carmeuse will be one of our core material processing anchor tenant to establish an operation facility in Salalah Free Zone. Our mandate is to leverage Oman’s natural resource and location to drive economic development and Carmeuse’s Project fit this vision perfectly,” commented Salalah Free Zone’s chief commercial officer, Ali Tabouk. Overall, the “sharp rise” in interest and applications at SFZ is expected to hit $6 billion by 2015.
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Best of ONLINE
DEWA begins work on new 17km pipeline
AIA International Committee chair announced
Fibreglass line completed in 24 months
Middle East-based Steven Miller appointed Perkins Eastman regional manager, Steven Miller FAIA, RIBA, has been appointed to chairman of the AIA International Committee. Already part of the team overseeing projects and growth in the MENA region for Perkins Eastman, Miller will hold the position for one year, after spending two years as a committee member. AIA principal and executive director Jon Stark says Miller’s experience is “unparalleled”. “Steven Miller brings an unparalleled level of experience and insight to excellence in the international practice of architecture. We are proud that Perkins Eastman is able to serve as a resource on international markets, practice, and design to AIA members by extending the expertise of our firm-wide experts,” commented Stark. The AIA International Committee is the forum where all the constituencies (the AIA representatives, the global practitioners, and the overseas members) of the AIA’s International Program converge, so that practice, policy, and
Steven miller
member service issues will inform all aspects of the program. The International Committee is a resource for the President and the Board of Directors to advise on and to monitor global issues. Miller, who was appointed to Perkins Eastman last year, previously worked with FXFOWLE and his own studio in Prague. To date, his work in Dubai includes sustainable masterplans for Nakheel’s Waterfront District, the 55,800 foot Sheikh Rashin bin Saeed Bridge and a number of commercial and residential buildings. His commercial and residential projects in Mumbai, Noida, and Delhi, India including I.T. Park master planning, were all designed to achieve LEED Gold Rating by India’s Green Building Council.
Dutch role model for development eyed during state visit Industry and technology projects such as Kizad could benefit from Dutch expertise The UAE could establish a string of joint investment ventures with the Netherlands after a meeting held between His Highness Sheikh Khalifa bin Zayed Al Nahyan and Her Majesty Queen Beatrix Wilhelmina Armgard, during her state visit to Abu Dhabi. The ventures would be cultivated via knowledge transfer in technology and industry, benefiting projects such as the Khalifa Zone and Port; set to overtake the port of Rotterdam in
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volume and size, upon completion. According to newswires, Sheikh Khalifa commented that the UAE is “sincerely interested” to learn more lessons from the Dutch. HM added that her visit to the UAE would spur her country to explore greater opportunities for joint cooperation and partnership through ”what we sense in regards to tremendous potentials and rapid achievements in various domains”.
Dubai Electricity and Water Authority (DEWA) has begun a project to supply, extend, test and commission a new main water pipeline, made of reinforced fiberglass, that will cover 17km. The 24 month project is part of the authority’s ‘strategic plan’ to develop water networks in Dubai; an integral part of the Emirate-wide infrastructure intended to highlight the city’s allure for businesses and investors, according to His Excellency Saeed Mohammed Al Tayer, MD and CEO of DEWA. The main works will focus on improving the “efficiency and reliability” of water networks, Al Tayer added. “This project is an addition to DEWA’s water network infrastructure, as it will enhance its efficiency and operational capacity to carry water to economically-important areas like Business Bay,” said His Excellency. The pipe will begin at the main water pumping station, located in Al Quoz, and extend to Business Bay, via the Camel Race Course, Al Doha Road and Al Khail Road.
“This project is an addition to DEWA’s water network infrastructure, as it will enhance its efficiency and operational capacity to carry water to economicallyimportant areas like Business Bay”
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NEWS ANALYSIS| DEPRESSION REPORT
Depression report A Study by the UAE University published late last year, concluded that 25.1% of low-paid workers in the UAE suffer from depression. The Big Project investigates the effects on construction labourers and the work of one charity that aims to help
L
ast year, UAE University commissioned a study into the effects of long hours, poor pay and impoverished living conditions on blue-collar labourers in the UAE. Despite comprising an 80% share of the country’s total population, little research has been conducted previously on the mental health and overall physical wellbeing of this large section of society. A sample of 319 workers was identified in 30 labour camps across Al Ain, but only 239
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fully completed the questionnaire. Of these, 124 worked in construction, earned less than AED1000 per month and worked more than eight hours a day on average. The results found more than half of those who earned less than AED500 per month suffered from depression. Of the sample questioned, 6.3% had experienced suicidal thoughts and 2.5% had attempted suicide. “Mental disorders impose an immense societal burden leading to functional
impairment, decreased quality of life, low productivity, lost wages and impaired interpersonal relationships,” the report reads. “People who are depressed aren’t motivated to work,” commented one of the university’s public health specialists, directly involved in the report. “Anyone who is depressed will be affected in terms of their moral, and their output will also suffer. This is all going to have an impact on productivity, not just
“The whole mentality of the camp is something which leads to emotional excess” on on sickness, illness and absences. “The death of a worker who now has to be replaced – there are all the expenses involved in that, so it’s not just those costs, it also has an effect on productivity and worker output,” the specialist added. The issue isn’t new to local media. An article by the Dubai-based 7DAYS newspaper, quoted 66 cases of suicide in Dubai in 2009, of which 95% were single people aged between 25 to 40 years old and living in poverty. The National reported on Oct 12, 2009 that “workers’ bosses should be urged to keep an eye on workers’ mental health”.
Study Background
The study – entitled ‘prevalence of depression and suicidal behaviors among male migrant workers in United Arab Emirates’ – was conducted by nine professors and associate professors from the university, whose hypothesis was based on the notion of “Dubai syndrome”.
The study was conducted from October to November 2008 by a group of final year students, under permission from the administration department of the labour camp. The University reports that the student’s work was conducted under “strict supervision” from “a number of outside organisations”, including the Al Ain Medical District Human Research Ethics Committee, which granted ethical approval for the study. Considering factors such as job security, separation from families and poor living and working conditions, “Dubai syndrome” affects those whose actual situation does not match the expectations of life in the UAE, predominantly pegged to salary expectations. Compounding these factors, many workers enter the country as low skilled employees with no knowledge of the cost of living, or working conditions they will be subjected to. The majority of workers taking part in the report were from India, Pakistan, Bangladesh, Sri Lanka and Nepal.
In conclusion, the report states: “Policy level intervention and implementation is needed to improve working conditions, including minimum wages, and regulation of working hours is recommended.” The results have been passed to the Labour Ministry, supported with a set of policy recommendations. “The results weren’t surprising. The population we questioned within the labour camps are increadibly isolated,” added the university specialist. To date most action designed to target and improve these conditions, has come from charities. Adopt a Camp, founded by housewife Saher Shaikh, has helped almost 30,000 labourers in Dubai over the last six years. At the launch of her latest project last month Shaikh says she has only witnessed cases of depression in the camps that are “not so well run”. “Depression is common in labour camps. The whole mentality of the camp is something which leads to emotional excess because when there are a whole load of people, a multitude of men cooped up together, doing the same thing day after day, it tends to lead to anger getting aggravated,” she says. For the past six years, Shaikh has organised ‘care package’ donations during Ramadan, when hundreds of volunteers donate money and essential items – including tooth brushes and prickly heat power – to be packed into boxes and distributed to labour camps across the Emirate. For the charity’s latest project, 20 labourers have been given cameras to help them document their daily lives (pictured above). “It all depends on the camp conditions. There are some very well run camps and the men there are extremely happy. It’s only in the camps that are not so well run where you see cases of depression,” she added.
Adopt a Camp’s photography project will be covered next issue
Depression was associated with: Physical illness Working in the construction industry Low wages Working more than eight hours per day
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NEWS ANALYSIS| DEPRESSION REPORT
Intervention
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Bewegung mit SyStem
Following “a year of stability” in the regional real estate market, Shakhani Group managing director Ahmed Shaikhani and Memon Investments’ Arif Majeed talk to Dan McAlister about the sector’s future in 2012
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hen Shakhaini Group was established 30 years ago, the landscape – both physically and in terms of development – was a very different place. Today the group has 11 divisions spanning everything from construction to investments and even call centres (see box). Despite the diversification within the group the anchor business interest is property; investment, development and community projects. Although 30,000 property development units have been delivered to date, it’s a sector that has been hit hard. Still struggling to recover from 2008, prices in Dubai and Abu Dhabi continue to fall, despite the plethora of reports and analyses speculating that prices have “bottomed out”. The latest of these, by Jones Lang LeSalle, claims prices will only bottom out in 2012, with recovery unable to begin before 2013. An IMF report dated March 2010 indicated that real estate prices in Kuwait, Qatar and the UAE had plummeted by 60%, 40%, and 50%, respectively, from the highs of 2008. Further afield, the same problems remain. Real estate values in Lebanon dropped 12% last year, with the total value of transactions falling by $640m. Yet in defying the fate of almost every competitor, it wasn’t until financial crisis hit that Shakhani’s contracting arm really established its credentials. “During the crisis the most important thing in our company policy was not to take any financial loans,” says managing director of Memon Investments Ahmed Shaikhani. “Now we have passed this crucial point we are on the regular track, but the most important thing is that we are not taking any future loans and we are not in any debts,” he adds. It’s a strategy that looks set to pay off in dividends. Free of the “headache” of repayments, Shaikhani says the group is now in a strong enough financial position to leverage the opportunity of the soon to recover regional real estate and property development markets, allowing for further exploration into project opportunities. Currently, the firm has six projects under construction.
movement,” echoes Arif Majeed, who works directly for Shaikhani subsidiary, Memon Investments.
Crisis management
Arif Majeed
The group’s Dubai projects span residential, commercial and leisure developments such as Sports City and Silicon Oasis. Beyond the Emirate, and even Middle East, over 30 the last years Shaikhani Group has executed projects in 90 countries. In light of the continued financial instability the group’s plan for 2012 is to focus on the “big projects”, such as villas and communities, highway infrastructure and the construction and development of projects in Qatar, Saudi Arabia and Iraq. Taking on a “renewed strategy for growth”, the focus today remains on clients and end users – “the best advert”, according to the group. “2011 was setting the direction of the market. This year the projects we’ve launched on the development side have been targeted to communication and are close to completion, so 2012 will see the company expanding the projects that we have launched,” asserts Majeed, who elaborates to say that expansions will also cover geographical markets, including Russia and Europe.
The Shaikhani Group Memon Investments Rubber World Memon Real Estate (Pakistan) Shaikhani Development Shaikhani Contracting Takmeel Project Management Ahmed Shaikhani
Shaikhani Foundation Gulf O Flex Trading
“On the real estate side in 2011, there were a lot of projects here and I would say that 2011 was a year of stability. Now the market is getting a certain supply in specific areas, which 2011 is set the direction, 2012 should see
Global Express Logistics Shaikhani Autos De Express Call Centre
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TALK | SHAIKHANI GROUP
Building on stability
COMMENT | Habtoor leighton group
Waste and Recycling in the UAE Habtoor Leighton Group’s senior sustainability engineer, Wissam Yassine PQP LEED AP PMP, shares his case study reusing the waste created in construction and demolition; a sector accounting for 60% of the UAE’s total waste generation
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he UAE infamously has one of the highest per capita waste generation rates in the world. To put it in numbers, an average UAE resident produces 3150 kg of waste annually, 6 times the amount of waste generated by an average French resident. Currently more than 75% of that waste ends up in landfill; this constitutes an important lost opportunity for recycling waste and gaining environmental and economic benefits. The Center of Waste Management in Abu Dhabi estimates that the UAE economy losses AED 1.5 billion a year due to landfilling valuable waste which can be otherwise recycled into useful products.
Tapping into this lost opportunity starts by understanding the breakdown of waste in the UAE. Figure 1 demonstrates that the construction and demolition sector is responsible for more than 60% of the total waste generated in the UAE, far more than any other sector. Clearly, the construction industry can reveal great benefits by developing programs that segregate and recycle construction waste.
Construction recycling at Arzanah Medical Complex
One such pilot program was developed by Habtoor Leighton Group (HLG) for the Arzanah Medical Complex construction
22 | www.thebigprojectme.com
project in Abu Dhabi, a project aiming to be the first LEED Gold certified health care facility in the Middle East. The program was an instant success and resulted in diverting 70% of construction waste from landfill. In total 3061 tons of construction waste was generated during the 20 month period since HLG started working on the project. Of this, 2148 tons were recycled or reused and only 913 tons were sent to landfill. The breakdown of waste generated and how it was handled is demonstrated in figure 2.
Life cycle assessment
To fully appreciate the environmental benefits of the recycling program, we modeled the outcomes of the program using Life Cycle Assessment. LCA is a technique to assess environmental impacts associated with all the stages of a product or a process life from-cradleto-grave (i.e., from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling). The power of LCA lies in its ability to quantify the environmental benefits achieved by a certain environmental program by comparing it to the business as usual scenario. Many tools are available that help conduct an LCA of processes or products, these make use of readily
available environmental impact databases of all possible “unit processes”. The benefits of our waste recycling program mainly stems from avoiding the extraction of the virgin material which the recycled material replaces and avoiding the impacts of landfilling the waste material. To quantify these benefits used an LCA software (SimaPro 7.3) to model both the recycling process and the business as usual process whereby waste is sent to landfill. Comparing the lifecycle impacts of these two processes we were able to determine the reduced impacts achieved by the recycling program.
Environmental benefits
The results of the LCA (Figure 3) demonstrate that the recycling program had significant environmental benefits across the four impacts categories which are: human health, ecosystem quality, climate change and resource use. The most significant benefits are in the human health category. This can attributed to the fact that recycling avoids the extraction and processing of virgin material, processes with detrimental health impacts on workers. Another significant result is that recycling of steel is responsible for most of the environmental benefits, although in terms of weight it represents only 10% of the total recycled material.
This demonstrates that per unit weight, recycling steel has a significantly higher environmental and human health benefits compared to recycling other materials. It is fortunate that the economics of recycling steel are also very strong, thus most waste steel in the majority of construction sites around the world is captured and reintroduced into the supply chain, resulting in an average of 80% recycled content in a typical steel product.
Green buildings
The total climate change benefits of the construction waste recycling program are equivalent to avoiding 108,120 kg of CO2 emissions. That is equivalent to the CO2 emitted in producing 180,200 kWh of electricity, enough to power a typical UAE apartment for 5 years! Yet, construction waste recycling is often viewed as just another point collected in a green building rating system, with the focus often on optimizing the building energy and water performance. While the energy and water consumption are indeed important, we believe greater emphasis should be placed by construction and engineering professionals on recycling construction waste, as this study demonstrates the significant environmental and human health benefits achieved by recycling. This should also be complemented by governmental investments in modern and efficient construction waste recycling facilities, and legislation to ban dumping construction waste in landfills, which is something we are starting to see in the UAE. Finally, an important challenge facing construction waste recycling going forward is the wrong perception about the quality and reliability of construction material made from recycled content. This is leaving recycling plants with enormous quantities of recycled materials which are not being taken back by the market; this often leads to halting the operations of the recycling plants and sending recyclables to landfills, thus losing economic value and environmental benefits in the process. The solution would be to increase awareness of the performance of recycled material and to build trust through third part independent testing of the performance of such material. Authorities should also play a role by requiring the use of a certain percentage of recycled material in all new construction, this will increase demand for recycled construction material and close the cycle so that the environmental and human health impacts of the construction industry are minimized.
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COMMENT | Habtoor leighton group
“We believe greater emphasis should be placed by construction and engineering professionals on recycling construction waste, as this study demonstrates the significant environmental and human health benefits achieved by recycling”
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MARKET EXPLORER | JORDAN
Land of plenty It may not be oil-rich, but education, finance and legislative models mean Jordan is on the edge of big business. Dan McAlister investigates the potential of the Middle East’s new promised land
$1tr
the estimated value of infrastructure and industrial development projects in the Middle East
B
y 2020, one in every 83 people living in Jordan will be an engineer, rising to one per 50 by 2040. Jordanian universities produce 5000 engineers every year and the country has the highest literacy rate in the Arab world. Unsurprisingly, Jordan’s construction industry is booming as a result. The country’s largest planned urban development project to date, King Abullah bin Abdul Aziz City is well under way; the Queen Alia Airport is due for completion this year; affordable housing plans are in action; and a comprehensive high-way masterplan underpins the improvement strategy for Jordan’s 9000km of four lane, two lane and rural roads, taking part between 2010 and 2030. The development will be needed to support a population predicted to double by 2025, due to constant and rapid immigration. “According to the Jordan Investment Board, there are currently 150 project ideas and 75 pre-feasibility studies as part of the investment map. Several of these opportunities are in the construction industry,” explains AECOM’s manager of special projects, Firas Tarawneh. “According to government sources, there will be a number of buildings or infrastructure projects that will be launched between 2012 and 2015 as part of the country’s overall economic growth,” Tarawneh adds.
Unlike the development of its affluent neighbours, Jordan’s growth will not be funded by oil revenues. Instead the country has developed an exhaustive PPP model, with the support of built asset consultancy EC Harris and McBains Cooper on a 12 month advisory basis, in collaboration with K&L Gates and the Jordan-based Darat Consulting. Funding will partly be provided by the World Bank. The aim of the exercise is to increase the efficient use of Jordan’s public buildings portfolio; of which there are 10,000 across the country. EC Harris, will act as programme manager and technical advisor to the Directorate of Government Buildings. “The Jordanian Government is one of the few governments in the region to recognise the need to improve how they manage real estate,” says EC Harris partner, Bernie Devine. “The contract we have with the department is to centralise the management of their properties portfolio. Establishing an efficient process is a critical component to maximising the return on investments. We are helping them to understand how to manage the portfolio better,” he adds. The vast portfolio of public buildings is characterised by long term underinvestment, with many in need of refurbishment or replacement. The only significant private sector developments on Amman’s horizon are the major hotel chains such as Hilton, Four Seasons and Continental.
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60,000 the number of engineers in Jordan with a further 25,979 enrolled in universities
In terms of the public sector market in Jordan, EC Harris head of property Paul Foster believes that there is a serious potential for investors to take over and contractors agree: Jordan is a country with political stability and a favourable business environment. “The issue is the funding and that’s why Jordan established a Department of Privatisation a couple of years ago. It doesn’t take long to realise that there is a real PPP potential in Jordan and there may well be even more funded by capitalist money,” Foster says.
Decisive action
The mechanisms for growth exist; even in 2009 when other countries were faced with economic ruin, Jordan was largely unscathed and to this day banks are ensuring liquidity in the industry, according to a report by the Oxford Business Group, which stated that 2009 was “something of a paradox”. “Decision making in Jordan is not as quick as we’re used to do in some western economies but they make sound and cautious decisions that aren’t slow because of paralyses but diligence. We are in the process of starting to see that come through,” Foster asserts, praising the “superb” leisure and hotel developments, which are yet to reach their maturity and “maximize their true potential”. In terms of initiating the new projects, Jordan’s tendering regulations are managed by its General Tendering Directorate and monitored under the Investment Promotion law that: “Attracts many regional investments and eases stringent regulations to provide freedom from customs and grant investment guarantees,” Foster says.
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The average number of engineers joining various engineers’ unions every day. One in every 83 citizens will be an engineer by 2020
ABOVE: Eddy Abi Abdallah.
One area where foreign companies may find themselves disadvantaged is in the boardroom, where many meetings and conversations around the project table are conducted in Arabic, rather than English, as favoured in other Middle East countries.
Safety issue
In a 2010 article, Jordan’s Journal of Civil Engineering stated that: “Even though construction labour accounts for about 7.1% of the labour force, the Occupational Safety and Health Institute (OSHI) in Jordan reports that accidents in the construction industry accounts for about 10.5% of incidents.” Foster echoes: “The health and safety market in Jordan is not as advanced as the rest as the UAE or in Qatar. They are a couple of years behind in terms of planners.” He adds that despite this, the country is “very well organised” in terms of its standards of education concerning safety matters. “They are catching up very quickly. Even the duration of the building period on the Taj Mall project for example, we have seen that develop to actually reaching an international standard” he says.
Engineering a future
Jordan’s engineering army looks set to steer the development of the country in the short to mid-term, with the sector largely responsible for the development of the construction industry, through the implementation of professional standards. Last year the Jordan Engineers’ Association (JEA) signed an agreements with BuildingSMART MENA, BuildingSMART ME, BIM Journal and Jordan’s Ministry of Public Works, to establish a BIM forum focused on the
4.8%GDP of GDP is generated by the construction industry
continued development and efficiency of BIM in the country’s construction industry. At the time of signing, a survey conducted by BuildingSMART ME, found only 5% of construction professionals in Jordan were utilising the software. It will be an invaluable tool considering a 20% overall growth rate is predicted for the country’s construction industry throughout the next five years, due in a large part to the needs of a growing population. Current project include the $1 billlion Abdali Urban Regeneration; “Jordan Gateway”; “Royal Village”; Saraya Aqaba and Aqaba Prototype City. The near future will see both residential (75%) and commercial (25%) markets continuing to expand. Supporting this growth will be a string of major infrastructure works, such as vast real estate projects; transportation projects including rail, airports and ports; municipality developments under the Amman Master Plan and Salt Master Plan; and the development of the Red Sea to Dead Sea Canal among others.
Cost Competitive Location Jordan offers a low cost manufacturing platform and a quicker delivery for building materials serving a regional construction market Tax and duty exemption benefits for entry to Arab markets through Free Trade Agreements Relatively low overall labour costs compared to regional competitors Policy and regulatory environment The policy and regulatory environment around the Jordanian construction industry is relatively light Few licenses are required specifically for the trades and support
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MARKET EXPLORER | JORDAN
“You have actually got a country where it is easy to do business that’s why people are looking at it”
COMMENT | EC HARRIS FROM LEFT to RIGHT: Foster, Paul & Hayes, Nick
Rising to a corporate challenge EC Harris head of sustainability Nick Hayes and head of property Paul Foster analyse the sustainability challenge facing corporations
“In cash
constrained times the industry needs to act more aggressively to address such misconceptions” 28 | www.thebigprojectme.com
A
cross the Middle East region sustainability is rising up the corporate agenda driven not only by a desire to be more environmentally friendly but also by more pragmatic, economic influences. With some commentators now stating that we’re in the midst of a double-dip recession, CFO’s across the Gulf are under greater pressure to identify ‘quick wins’ and solutions that limit their business’ overall expenditure. From a sustainability perspective this is creating new opportunities particularly for those initiatives that deliver operational efficiencies and which delivering a greater economic return.
The business case…
Traditionally, there has been a common view that adopting a sustainable approach costs more than maintaining the status quo, yet whilst this may have been the case in the past, it’s no longer so clear-cut. In cash constrained times the industry needs to act more aggressively to address such misconceptions for unless a reeducation process takes place there’s a risk that some worthy initiatives could be overlooked, in spite of the environmental and economic benefits they could help to deliver. In reality carbon is becoming an increasingly important differentiator when it comes to
more sustainable buildings attain higher rents, occupancy rates, and overall value. What CFO or CEO would not be attracted by those types of results?
Measuring success…
A greater emphasis also needs to be placed on the broader ‘value’ of sustainability as opposed to just the associated cost of adopting a greener approach. The reality is that the benefits of acting in a more sustainable manner extend well beyond the bottom line and so by measuring success in purely monetary terms there is a danger of selling short the impact that greener initiatives can have. As an example, recent research from the UK’s Westminster Sustainable Business Forum revealed that adopting a sustainable approach led to improved corporate reputation, increased employee retention and higher productivity levels. The study estimated that when combined, these factors had the potential to deliver over $12bn in additional business return.
The cost-return ratio…
assessing a property’s value particularly in such a competitive real estate market as the Middle East. If a sustainable approach is embedded in the construction phase it can help property assets stand out when they come on to the market as occupiers can see the inherent value of low carbon, energy efficient buildings where
lower water and energy use will equates to significant cost savings throughout the duration of their tenancy agreement. From a property owner perspective these types of assets can also keep maintenance costs to a minimum and insulate them against future regulatory changes that they may see them obliged to comply with environmental mandates. Furthermore, with some analysts suggesting that energy costs could rise by 100% over the next 10 years, the case for owning energy-efficient buildings becomes ever more compelling. In such an environment there is a pressing need to focus on the business case that underpins sustainable initiatives as this will help to secure buy-in at board level. Financial metrics need to be aligned to carbon reduction savings so that the full return on investment from sustainable solutions are recognised. For example, research carried out by academics at the University of Western Sydney (Australia) and Maastricht University (Europe) has shown that
With liquidity still a major issue across the Middle East, developers continue to struggle to access both capital and debt funding to build new schemes, so the emphasis is often on the need to generate more from both existing budgets and the assets they already own and operate. Where investment set aside for sustainability initiatives is reduced, it is still possible to drive significant cost savings via a more targeted approach. In 2010 the Better Buildings Partnership found that by adopting cost efficient retrofit measures across their global asset portfolio, they were able to cut overall energy use by 10% ultimately saving over 32,000 tonnes of CO2.
The next twelve months…
As ever, the initiatives that deliver the greatest value to investors are those that are cascaded down through a business from the highest level. Sustainability has evolved into a discipline that often can deliver ROI in just a few days rather than many weeks or months and which successfully meets both the ‘green agendas’ – environmental and economic. As we enter the New Year the key lesson for the industry is that it should not be shy in addressing the C-suite and promoting the role that sustainability can play in helping their firms to weather an increasingly testing financial environment.
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COMMENT | EC HARRIS
“The reality is that the benefits of acting in a more sustainable manner extend well beyond the bottom line and so by measuring success in purely monetary terms there is a danger of selling short the impact that greener initiatives can have”
News
CAREER LADDER | CLYDE & CO.
Increasing public demand will force regional governments to prioritise projects or seek alternative methods of funding.
Pathfinder project Adrian Creed speaks to Melanie Mingas about the region’s various PPP models, the legislation behind them and the continued expansion of international law firm Clyde and Co
W
ith a strong background in the finance and regulatory aspects of power, utility and infrastructure projects, Adrian Creed joins Clyde and Co with a specific remit to aid the firm in its continuing expansion throughout the Middle East, Africa and India. Already the largest law firm in the MENA region, new offices in India and Africa, are only the first step of this programme. “I am keen to develop some new solutions to help host governments, developers and lenders to social infrastructure PPPs. In particular, affordable housing is a huge issue within that,” comments Creed. “I don’t think governments can just build housing and give it to locals anymore, there need to be long term plans and new delivery models,” he continues, further elaborating
Adrian Creed, Clyde and Co.
that Bahrain is leading the way, following the recent close of the region’s first affordable housing PPP. “In my view, this will be the first of many and this project is likely to be a pathfinder project for the region,” he adds. The issue, according to Creed is uncertainty in the political and social landscape of the region; an anchor for the success of any PPP project.
“One of the trends of the last few years has been to utilise project finance techniques and to engage in wider PPP initiatives to help address this problem” He says that while there are a number of Gulf states with “significant” financial resources at their disposal, others have to prioritise their projects in line with both public needs and the continued development of the country. With a “dramatic” population growth and increasing demand for key infrastructure and services, governments are finding themselves hindered in their attempts to keep pace with the
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CAREER LADDER | CLYDE & CO.
“If you are going to develop these new long-term project delivery mechanisms, the market will need to be confident about the rules of the game” burden on the public purse, meaning they are “not equipped to concurrently manage and run the large number of projects being undertaken across a range of business sectors,” Creed says. “Historically, governments around the region have typically funded infrastructure out of the public purse but in recent years most MENA governments have been looking for alternative procurement strategies. “One of the trends of the last few years has been to utilise project finance techniques and to engage in wider PPP initiatives to help address this problem,” he adds.
The private sector role
The key is to look to the successful models employed elsewhere, such as the UK where 20 years of PPP projects have not only set a standard, but allowed legal, construction and finance professionals to hone the skill sets now demanded in the MENA region. “These new projects are normally structured on a concession basis. A private developer might, for example, design, build and then operate a hospital over a 20 year concession period and in return the government would pay a unitary tariff over the lifetime of the project. This unitary payment would be linked to the private sector’s performance and would be structured in such a way as to provide incentives and penalties for good and bad performance, respectively,” he advises. Despite the widespread use the PPP model being under-utilised in general, the most successful projects have included Saudi Arabia’s Madinah Airport, and water infrastructure, power generation, port and airport projects in a number of GCC countries. However other projects have failed, such as Abu Dhabi’s Mafraq–Gweihat rail line and the Saudi Arabian land bridge project.
“In order for a PPP style project to proceed, there needs to be a strong and sustainable payment profile over the term of the project. In addition to the payment profile risk, host governments, developers and lenders will also need to be satisfied that other risks are also properly mitigated, so that the project will be sustainable over a long period of time. “But trying to foresee what the landscape will be like in 20 years time is a challenge in this region,” Creed continues.
“Regional governments will have to look hard at building a competent regulatory sector in which everybody has confidence, because if you are going to develop these new long-term project delivery mechanisms, the market will need to be confident about the rules of the game. “In particular, they need to know that their project is not going to be adversely impacted as a result of a future change in sector regulations,” Creed concludes.
New agendas
With Creed confirming the most difficult sector in which to initiate PPP is social infrastructure, he says the event of the Arab Spring have pushed this sector to the top of domestic political agendas. He observes that there are two primary challenges to delivering successful PPPs in social infrastructure: the perception that such duty should be provided by the state; and the generally insufficient revenues generated by projects such as low cost housing, where the cost of designing, building, financing and subsequently running a new facility, requires government subsidy. “I think there is a philosophical and commercial challenge to core principles in some of these areas and this challenge needs to be addressed in order to get these new initiatives in the social infrastructure space moving in the same way as the successful developments that have taken place in the utility and transport sectors,” he asserts. Region wide, currently PPP legislation is patchy, with some countries boasting a comprehensive – or at the least, general – PPP law, and other jurisdictions taking a sector-specific legislator approach, such as Abu Dhabi, which allows private companies to take part in power and water projects.
Areas of expertise •
Advising the Jordanian government on its wind power projects at Khamshah and Fujeij.
•
Advising the Palestinian Energy Authority on a proposed IPP in the West Bank and Gaza.
•
Advising a Gulf based group seeking to set up a new vehicle to bid for and work on major utility projects in the MENA region.
•
Advising government of Palestine on proposed corporatisation, restructuring and regulation of the power sector.
•
Advising Jordanian Ministry of Energy on its Energy Master plan.
•
Advising SBG on the Hajj airport BOT project.
PPP: Projects to watch and recent developments
Some of the most significant PPP projects in the region include: Qatar: Planned metro projects, valued at more than US$25bn Abu Dhabi: Surface transport master plan, valued at US$68bn Kuwait: Umm Al-Hayman Wastewater Treatment Plant (WWTP), US$1.8bn. Kuwait, like Egypt has a blanket PPP law.
Failed PPP projects have included railways.
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Dubai: Progressing with the establishment of a PPP lawv
COMMENT | SOLAR POWER LEFT: Paul Floyd, Managing Director of FAMCO.
Creating a viable solar market Dr. Michael Krämer, senior associate at international law firm Taylor Wessing discusses ways to develop a solar investment scheme that suits the needs of the Gulf region
“Schemes that work in one country do not necessarily have to work equally well in another jurisdiction.�
34 | www.thebigprojectme.com
T
he Gulf region is blessed with sheer infinite amounts of solar energy. In theory, there is hardly any need to generate energy from other sources. There are, of course, a number of stumbling blocks that will need to be overcome, but tapping into the vast supply of solar energy that is freely available to us here in the Gulf does not have to stay a romantic vision only. Dubai has just announced its plans for the Mohamed Bin Rashid Al Maktoum Solar Park, which is supposed to have a total capacity of 1 giga watt (GW) once completed in 2030. This is a great start into a better and cleaner future and yet, it should be considered a starting point and not the final solution. Putting things into perspective, 1GW of solar capacity is an amount that more densely populated countries with incentive schemes for solar energy generation install on average in just one month! Governmental investments into renewable energy are a great start and pave the way for a viable solar market coming into existence. Such investments cannot, however, actually create such a market. The actual breakthrough will only happen if private investors start investing into the generation of solar energy. It is only
then that substantial financial resources are being mobilized, which are capable of changing the energy generation landscape of a country. Private investments into solar require a solid legal framework which provides the basis for the investment to be viable. No investor, whether private or public, will invest if the prospects of ever recouping the investment plus some profit are bleak. Taylor Wessing advises clients who are active in the Renewables industries in various jurisdictions through its offices in Europe, the Middle East and Asia. There are, of course, lessons to be learned from all the different approaches the governments in various countries take in encouraging private investment into the generation of renewable energy. Schemes that work in one country do not necessarily have to work equally well in another jurisdiction. Although best practices exist, some modifications may have to be made in order to create a solution that works best for the country in which such a scheme is supposed to be applied. Our firm has just recently joined forces with the Emirates Solar Industry Association (ESIA), many members of which are active in the solar
industry around the globe. In addition, given that our firm has been operating in Dubai since 1996 (previously under the name of Key and Dixon), we are representing many local trading families, some of which are very keen on exploring the opportunities that come with the creation of a solar market in a region such as the Gulf with its ideal environment for the use and application of solar technologies. We are in the process of bringing together global players from the renewables industries with local parties including local utilities in order to jointly develop strategies and ultimately a framework that will be the basis of a viable solar market here in the Gulf region. As a first step, we are preparing a questionnaire that we will be sending out to representatives of all relevant areas, such as utilities, solar (PV, CPV, CSP) solution providers and also providers of ancillary solar solutions, such as solar cooling and solar desalination. The aim of this exercise will be to compile assessments of all involved parties of the current situation and views on how matters could be improved in order to create a viable solar market. The next step will then be to define basic requirements, which a future incentive scheme will have to comply with in order to benefit all parties involved. Solar solution providers, for example, will be interested in high incentives, which make investments into their technologies more appealing to private investors. Utility companies here in the region, that due to the
high subsidies on energy consumption will arguably operate at a loss, are likely to be interested in generating energy more cost efficiently as they are currently able to. Last, but not least, policy makers will have a vital interest in the cost involved. Government backed incentive schemes will have to be financed, which can be difficult, while incentive schemes that operate by putting the financial burden on the general public (such as most feed-in tariff schemes) will inevitably result in (slightly) higher electricity bills. Further factors, such as mandatory participation of the local industries may well play a role as well. Despite these partially contradicting interests there will be a common denominator, around which an incentive scheme can be built. Possible scenarios for a beneficial incentive scheme are as follows: A model that has worked rather well in some countries is the introduction of feed-in tariffs (tariffs that are being paid to homeowners who feed self generated solar energy back into the public grid). Homeowners are being encouraged to invest in solar energy generation by paying them a guaranteed price per KWh for a set period of time. Such tariff is usually set at a level, which allows the homeowner to recoup his investment during a timeframe that is shorter than the time for which the payment is guaranteed, thus leaving the homeowner a profit once the installation is fully paid off. Although a great tool in principle, the
introduction of feed-in tariffs will inevitably lead to higher electricity costs for end consumers, at least until such time when solar electricity generation has reached “grid parity” (which means that the cost of generation of solar energy is equal to that of conventional energy generation). The tariff that utilities are legally obliged to pay to investors is usually higher than the amount utility providers charge their customers. This leaves the utility companies with reduced profits, which the utilities will aim to recoup from their customers, thus resulting in higher electricity costs. Higher electricity bills can be avoided if selfuse of all generated solar energy is encouraged. Under such scheme homeowners are obliged to use all energy they produce themselves without feeding it back into the grid. This results in the relevant utility company having to supply only a smaller amount of electricity, which constitutes a saving for all utilities that are forced to sell electricity at a loss, such as those in this region. Some part of these savings could be diverted to the homeowner, thus providing further incentive to invest into the generation of renewable energy without any party losing out. A typical win-win situation. The possibilities are endless and there will be a scheme that suits the needs of the Gulf countries as well. Taylor Wessing is determined to assist in finding the right solution and preparing the legal basis for a solar market that benefits all parties involved. We cannot do it alone, however, and therefore invite all interested parties to assist us in our quest. To contact Dr. Krämer, email: m.kraemer@taylorwessing.com
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COMMENT | SOLAR POWER
“Dubai has just announced its plans for the Mohamed Bin Rashid Al Maktoum Solar Park, which is supposed to have a total capacity of 1 giga watt (GW) once completed in 2030”
COVER STORY | POWER PROJECTS
Powers of construction The GCC will require an additional 100GW of power over the coming decade as demand increases 58% on 2006 levels. Current fossil fuel consumption rates have catapulted all six GCC countries to the top 25 list of polluters in the world, and the needs of burgeoning population and industry will feed requirements further. Melanie Mingas investigates the viability of alternative energy projects in the region
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While the construction of a number of ‘traditional’ substations continues – some areas still achieving firsts in such projects, such as Kuwait’s first 300/400 kV substation in Sulaibiya district – other projects are gaining pace. The plans also align with Vision 2050 Arabia; a sustainability initiative to ensure ‘humanity can live well and within the limits of the planet’, under an 18 month programme to identify and tackle the challenges surrounding such a shift. It is estimated the power sector will require investments to the value of US$50 billion, in order to meet demand and a further $20 billion for desalination projects. Coinciding with WFES, the Supreme Council of Energy
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COVER STORY | POWER PROJECTS
D
uring his key note address at last month’s World Future Energy Summit, Ban Ki Moon, UN secretary general made two bold pledges; not only does he was to end the worldwide fuel poverty that sees one in five of the world’s population without access to electricity, but he wants to achieve ‘sustainable energy for all’ by 2030. Requiring actions from governments, the private sector and general public, to aim could see the use of fossil fuels dramatically reduced years ahead of earlier predictions. In its place, a who new generation of power plants will be required to harness solar, geothermal, wind, hydro and even nuclear power sources.
COVER STORY | POWER PROJECTS
$20 billion billion value of contract for the construction and staffing of four nuclear plants in the UAE
(SEC) announced the launch of the Mohammed bin Rashid Al Maktoum Solar Park; its flagship project to be managed and operated by Dubai Electricity and Water Authority (DEWA), a first of its kind in the region. At a cost of US$3.3 billion, the photovoltaic park will be capable of producing
“Energy consumption per capital by 2030 will be two or three times of what it is today" 10MW of power by 2013 and 1000MW upon full completion. Despite the scale of the project, at full capacity – expected by 2030 – it will still only meet 5% of Dubai’s energy needs. From 2020 the panels will only produce enough energy to meet 1% of the Emirate’s requirements. “Although the targets to overall energy
production appear negligible, this is actually not the case as energy consumption per capita by 2030 will be two or three times of what it is today; so the production capacity will actually reflect an estimated 1,000MW on completion,” explains Goktug Gur, country president for the UAE and Oman, for Schneider Electric, who praises the wider MENA region as “doing good work” to diversify energy sources.
New power
Combined with the energy mix set out in Dubai’s Integrates Energy Strategy 2030, this share contributed by solar energy will be supported by a 12% generation from nuclear power and 12% from ‘clean coal’, with gas providing the remainder. Significant modifications will have to be made to the electricity grid before the panels can contribute more to the Emirate. This year, 44 new power and water projects will begin in the GCC, reaching estimated values of $31.9 billion. Of these, the most controversial on the world stage is the UAE’s nuclear projects. In total, four plants will be constructed, with the final online by 2020. With the first phase of tenders announced in recent months for the construction of workers’ accommodation, Abu Dhabi will be the first Emirate to have a nuclear facility online, with a deadline set for 2017.
$31.9 billion value of new power projects to begin in the GCC this year
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25
FROM TOP to BOTTOM: Goktug Gur, Schneider Electric; Colin Calder Passivsystems; Dr Ashok Sood.
The Emirates Nuclear Energy Corporation (ENEC) has awarded the contract to a consortium headed by Koren Electric Power Corporation (KEPCO), the third largest nuclear energy company in the world. According to ENEC, the entire contract, including training , HR and education programmes, is worth US$20 billion. The plants will use APR 1400 nuclear reactors, featuring ‘advanced design features’,’ evolutionary design’, and ‘competitive’ power generation, according to the manufacturers. In development since 1992, the reactor received standard design certification in May 2002. Under a remit to achieve ‘competitive’ power generation, the APR1400 works on economics of scale and design improvements to save costs during construction and operation. The technology requires 11% less concrete; 15% less rebar; and 26% less pipe. Excavation work on the first APR reactor, at Shin-Kori, Korea, began in January 2008 with the reactor online and operating commercially in September 2013 (see graphic). The UAE isn’t the only GCC country to be talking about nuclear energy. With Qatar the only country possessing the required resources to meet energy needs from indigenous gas reserves, nuclear power is increasingly likely to play a larger role in the meeting the energy needs of all GCC countries.
Even Saudi Arabia has earmarked massive budgets rumoured to top $100 billion in order to build 16 nuclear energy plants over the “next few years”, according to reports in the regional media. “Apart from Abu Dhabi’s nuclear plant and Dubai’s solar plant, wind power is also being effectively pursued with North Africa and Morocco in particular leading the way,” observes Gur. Schneider Electric recently signed MoU papers with MASEN (Moroccan Agency for Solar Energy) for a project that will create a concentrated photovoltaic (CPV) segment to serve domestic needs as well as generate exports of electricity in Morocco. Schneider also won the large corporation’s category in the World Future Energy Prize, awarded during WFES. “Overall, the combination of investment in renewables and significant reserves of natural resources will ensure a sustainable energy future for the Middle East,” Gur adds.
Is the future bright?
“During WFES there were many examples of Middle Eastern countries and cities setting a leading example among hote regions of the world, for diversifying energy sources. However, more attention needs to be pid to making these sources more affordable, by reducing consumer demand,” asserts Colin Calder, CEO for UK PV supplier PassivSystems.
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COVER STORY | POWER PROJECTS
“Apart from Abu Dhabi’s nuclear plant and Dubai’s solar plant, wind power is also being effectively pursued"
All six GCC countries make the list of top 25 polluters in the world
COVER STORY | POWER PROJECTS
2.4%
23.6%
of global gas emissions are produced in the GCC. 0.6% of the world’s population live in the region.
of the world’s proves gas reserves are held by the GCC
“To extract maximum value from renewables requires a detailed understanding of when energy is being used and for what" Country: UAE Projects: 11
Value: $10 billion Highlight: $800 million Hassyan 1 Independent Power Plant
Country: KSA Projects: 11
Value: $8.6 billion
“Efficiency has historically been associated with cold northern countries seeking to cut down heating costs, but air conditioning presents an equally great opportunity for savings,” Calder adds. Once again, in terms of supplying the necessary technology, China could dominate due in large parts to government subsidies. Providing low-cost loans in order to build a strong manufacturing base for Chinese PV panels, Dr Sood from American-based development company Magnolia Star, believes it will become increasingly difficult to compete with the manufacturing superpower, when procuring the equipment necessary to produce solar power.
Region-leading
While the UAE has the highest value power projects of the GCC, with 11 separate developments totalling $10 billion, and Saudi Arabia comes a close second, it is Oman that will see construction begin on six new projects this year. In October last year it was announced that a gas-fired power plant would be constructed in Salalah city, which will also benefit from a new desalination plant, providing 15 million gallons of water.
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A second power plant in Sohar will produce 750 MW upon completion, due 2013 and a third project, Barka power plant, will produce 750 MW at the start if commercial operations in 2013. “To extract maximum value from renewables requires a detailed understanding of when energy is being used and for what; how much is being wasted and what policies are required to balance intermittency of supply with efficient measures and energy storage in residential homes,” asserts Calder. “Rising energy prices in Dubai for example, have already seen consumers cutting down on their usage, so there is a good basis for formalising energy-efficiency and grid-balancing policies in this case,” he adds.
Highlight: $2 billion Al Qurrayah Independent Power Plant (IPP)
Country: Kuwait Projects: 10
Value: $3.4 billion Highlight: Seven projects to begin in 2012
Country: Bahrain Projects: 3
Value: $4.1 billion Highlight: Al Dur, including the independent water and power plant
Country: Qatar Projects: 3
Value: $3.3 billion
44
Country: Oman
new power and water projects will begin in the GCC in 2012-01-30
Value: $2.5 billion
Projects: 6
Highlight: All projects to begin in 2012
VOLVO OCEAN RACE ABU DHABI STOPOVER DECEMBER 31 – JANUARY 14
ON SITE | British School Al Khubairet
Back to school Dan McAlister is taken back to school to learn about the development of the AED65 million British School Al Khubairet, in Abu Dhabi
I “There are some buildings you enjoy building and some buildings you don’t. I’ve thoroughly enjoyed this experience”
t is nothing like the kind of school I went to, that’s for sure,” says Bernard Hunt, project director of Wates Construction International. “I went to a school in Manchester, England. There were 4500 pupils and it didn’t resemble this at all.” On the 9th of January I arrived at the British School Al Khubairet in Abu Dhabi having no idea what the AED 65 million project would be like. The school was first opened in 1968 and underwent one refurbishment in the 1980s. The current project will replace outdated facilities and provide a state-of-the-art learning facilities for the next generations. The project is to construct 10,500m² new buildings over three floors, with 1500 refurbishment specifications to existing buildings. Introductions were made with Wates International director Steve Yazdabadi and Hunt, who has been involved since the start of building. Both men live and breathe
construction as they explained afterwards, with Hunt saying he would not have taken the project on if he didn’t feel it was special. “I’ve got to say it – there are some buildings you enjoy building and some buildings you don’t. I’ve thoroughly enjoyed this experience.” Al Khubairet is a two phase project. Currently construction is nearing the end of the first phase; one of two tower cranes left the site in December 2011 and the major structure works are complete. A total of 400 workers are on site making the process not necessarily huge, but not necessarily the smallest in the region. To date, the safety record is impeccable and the British company has a strong track record building schools around the world. The service diversion was completed for all school services without loss of time to the school, has been completed over a three week period. Walking around the site is surreal as when
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ON SITE | British School Al Khubairet
LEFT: Steve Yazdabadi.
FROM LEFT TO RIGHT: Bernard Hunt and Dan McAlister onsite; continuing works at the school; Wates Construction team members with their onsite safety record; swimming pool water filter tanks for the two new indoor pools.
you look over the fence to see the old building still operating as normal. A total of 1800 pupils have been present during construction, with classes still taking place in the original facility next door. The site was hand dug to complete safely and there have been two live HV electrical substations on site as well.
The Classroom Steve Yazdabadi, director, Wates Construction International As leader of the PFI team Yazdabadi has overseen ma jor social housing project in the UK, including: Reading Social Housing – Refurbishment and estate management of 1350 homes. Kirklees Social Housing – New build of 466 units (residential and extra care). Yazdabadi was responsible for project selection, customer management, bidding, finance raising, consortia assembly, financial close and operations.
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Our lesson on the building begins with a tour of the outside of the structure. There is some heavy trade that needs replacing with internal painting and plastering and internal glazing with curtain walls in the vicinity. The ground floor will be occupied by the junior school and the top floor will house a music department with one room dedicated to teaching and separate rooms for group practice. The ceilings of the classes are low to make use of space with private bathrooms, private storerooms, and a kitchen with separate facilities. The building is “future proofed” for up to two decades according to Hunt, who explains the provision covers in classtechnology such as interactive whiteboards. In updating the facilities that exist next door, a swimming pool complex – comprising a learner pool and a 25 metre competition pool sunk into the ground – will replace two external pools. The boundary wall can be removed to give immediate access to the outdoor
sports pitch, allowing potential for extra school activity.
Logistically challenging
“The heart of the school” as Hunt calls it is what will soon be the training area. “This is where the kids are going to learn. Very basic technology has been involved in the building, such as curtain walling and pre-cast panels on the outside. It’s all completely up-to regulations, civil defence approved and we’ve got a complete sprinkler system installed in the school,” he adds. Over 6500m² of concrete has been utilised in the construction of the site and 800 tonnes of steel has been used over the process. “The kids don’t even know we’re here to be honest. We’re actually at the point where we are going to be introducing special tools” explains Hunt. “The school is genuinely excited about the new site,” says Steve Yazdabadi director of the Surrey UK based Wates, which now has an office in the capital Emirate city. Yazdabadi has many projects under his belt which he has overseen. His experience in PFI has led him to successfully complete projects such as Luton BSF in England where there was “£250 million of improvement to the educational estate”. His past projects also include historic buildings, commercial, hospitality and retail in the UK, Australia, India and the Middle East.
ABOVE: Grant Salters.
Building by numbers: The site was dewatered and a 450,000 litre water tank built 5 metres below the water table. 2 new swimming pools 2 new sports halls, one on the first floor 20 new class rooms for the 440 primary pupils that will move into the new school 15 new music and media teaching rooms Interactive science gardens on the 2nd floor New sports pitches and hardscaping over 16,000m² of land There is a 450,000 water litre tank “in the ground that nobody knows about”, which has been built on top of an existing watertank.There is a science garden which will be an interactive area bringing the children to the outdoors, providing a “really good vantage point of phase two.”
Phase 2
Football pitches softball areas and
a lot of hardscaping will be a part of the set up over the next couple of months and just like project manager Hunt who gave us the tour, it’s easy to be jealous of the lucky future pupils of the school.
Log on to thebigprojectme.com to listen to audio of project manager Bernard Hunt taking The Big Project on the tour: http://thebigprojectme.com/
2 specialist tower cranes (both heavy) supplied by Wolfkrann Arabia were in use. Luffing crane was used to move and place 16t hollowcore planks over a 30 metre radius due to the area being landlocked. At the time it was the largest luffing crane in operation in the UAE.
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ON SITE | British School Al Khubairet
RIGHT: Bernard Hunt.
TRENDS XXXXXXXX | ROUND | XXXXXXXXXX TABLE Photographs by Cris Mejorada
Outside the box Two years ago Abu Dhabi Education Council launched a design competition to reinvent the school. With seven new schools now operational, The Big Project talks to competition winners Broadway Malyan and Planar Architects about challenging the accepted; meeting an evolving brief; and the reaction to bringing the outside in
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During the design process, which elements of the traditional school model did you seek to update?
Ian Apsley: We were acutely aware that ADEC had originally approached 36 international design consultants, mainly from the US, UK and Australia, and what we wanted to do was ensure that we weren’t bringing another school typology model from another market, into this market. We suspected a lot of our competitors would do that, inspired for example by
the UK’s Building Schools for the Future programme. What we were very keen to do was ensure that from the first principle, this design was for Abu Dhabi; with cultural sensitivities, specific elements which worked for the client and functionality reflecting how a local school should be teaching. There wasn’t a huge amount in the brief about teaching styles or the way the education council wanted the schools to work, but we certainly got a feeling from their brief that ADEC wanted to change
TRENDS | ROUND TABLE
“We were very keen that the school and its facilities could be used by the whole community, so it becomes a real anchor point.” influence the design?
to future considerations such as adding extra class rooms. I think one of the key elements of our design, and one of the reasons why we probably won the first phase, was because of the total flexibility the school had.
Mirza Salim Hussain: One of the things we were keen to achieve was flexibility, . The brief talked about a mixture of different student mix, so it was very important that we could ensure different learning styles were available.: spatial configurations; giving people the opportunity to learn in groups or individually, formally, informally; and both internally and externally. Rather than saying it’s too hot to teach outside, we looked at how to use plants and trees to help make the building a learning tool, so children come to the school and interact with it, rather than sitting in a box.
Abbad Al Radi: That flexibility has been the model for the forthcoming schools also, because we have a dual system which allowed for segregation between boys and girls. The other key starting point was that you have existing schools that are rigid; corridors, classrooms and it’s very hard. Nothing is soft or friendly about it. In contrast we had no corridors, just spaces that combined with other open spaces and teaching areas. It’s very fluid and that flexibility is key.
Nick Davies: But that flexibility also extended
How did research into children’s learning styles and their responses to environment,
AR: Even when the pupils are inside they’re nearly outside, so there’s a lot of flow between inside and outside. MSH: It’s actually saying to children, you can make school a fun place to learn. It’s not just a box that you can’t see from the outside, we’ve opened it up as well. One of the key things was not to have a wall. The first thing you see when you approach the school is not a three metre wall, the entrance is actually visible and engaging for children. When they enter the mind is turned on, and it says to them that this is a fun environment; colour is important, texture is important, and is based on our experience from the UK and internationally IA: The other aspect we were trying to major
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Photographs by Cris Mejorada
the current way schools were working. They were the drivers. It was about something that worked climatically and a building that enabled a change in the way children were taught.
MSH: We have done a lot of work in the UK on education, so we understand these environments. We understand the research and background that is currently going on in education. I think the idea was to bring that to bear and temper it and not just assume that what works elsewhere would transfer here. Cultural value was very important to us and one of the original ideas was for fritting in the rooflight of one of the breakout spaces, so you would see the palm leaves coming through, as that is how roofs used to be built.
TRENDS XXXXXXXX | ROUND | XXXXXXXXXX TABLE
LEFT: Abbad Al Radi.
“We certainly got a feeling from the brief that ADEC wanted to change the current way schools were working” years from the international design competition to the schools being occupied. In that time people haven’t forgotten about the programme and some remember the competition, perhaps because they were involved, so they are very interested to know what we have done and how it has worked out.
How did the approach to this project differ to previous projects?
AR: The collaboration element and regular workshop approach during the design phase was very strong and important in evolving the design. MSH: That’s what we generally try to do anyway. We talk it though and explore ideas
Photographs by Cris Mejorada
on was the school’s place in the community. We looked quite carefully at models from around the world because most of the schools in the ADEC programme aren’t in Abu Dhabi but surrounding areas, like Al Ain. In some of the places we have built the schools in, they are the first of their kind in the area. We were very keen that the school and its facilities, such as sports hall and auditorium, could be used by the whole community, so it becomes a real anchor point. The schools have been designed so they can work in that way; you can shut one wing down and just use the community facilities, without having to provide staff and security for the rest of the school. AR: From the few reactions that we have had so far, they are happy in these schools because it’s very different from what they have had before; the colour, the openness, the fluidity and lack of rigidity. You don’t have anything that’s enclosed. You can see between different classes. It’s a happy place.
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“It was about something that worked climatically and a building that enabled a change in the way children were taught. ” What kind of reaction have you seen from the design and construction industry here and abroad?
IA: Now the buildings are being handed over there is certainly more interest in the programme. There are other governmental organisation s in the region that are quite interested in how ADEC put this programme together because it was very successful in terms of its roll out. MSH: I have been to conferences where people remember the programme. It has only been two
Nick Davies: It was nice that ADEC and Musanada were also part of that. They’re only down the road and I think they also liked the fact they could come over and workshop with us. Their brief was developing as we were developing the designs. It wasn’t a fixed brief at the start and they kept developing the number of students, gender and age that would use each school. AR: Half the time we were ahead of the brief. The brief (or revisions/ additions) would come and we would have to make modifications very quickly.
How does the open brief situation compare to projects where the client has a definitive idea of the finished project?
IA: I think there are benefits to both approaches. You can have a highly descriptive brief that doesn’t enable you to test the limits and boundaries of what you are trying to do. But the double challenge here was that we were developing the brief as we went along. The only thing that was absolutely fixed was the time line. We were trying to develop a brief, design, and get that out to tender in an
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TRENDS XXXXXXXX | ROUND | XXXXXXXXXX TABLE
LEFT: Ian Apsley.
“The double challenge here was that we were developing the brief as we went along. The only thing that was absolutely fixed was the time line.” expansion, either in teaching space or soft space and the design lends itself to this, because each is a series of plug in elements designed in such a way you can add facilities or teaching capacities easily. AR: The same applied to the community elements, whereby at a later stage e.g. a swimming pool could be added.
Were the projects designed to meet any sustainability criteria?
IA: We started on this project before Estidama for schools was really fully developed. ADEC had a sustainability agenda but it wasn’t Estidama as such, although there are a number of sustainability elements in the schools.
Photographs by Cris Mejorada
ND: We were involved in the early days in developing a school version of Estidama, incredibly short time. Ultimately that became the key driver for what we did.
size and site and putting those together in a different way.
AR: A lot of that process carried on during the site supervision stage. We had to finalise limited elements of the design stage during construction because it’s fast track and not a simple, straight forward project.
AR: IF you look at them they seem similar and five of them have about 1200 pupils and the others 600. They do have a lot in common, because they essentially have the same elements. Some have their own particular add ons and some have elements other don’t.
ND: It’s testament to the flexibility of the design that even during the construction phase, six months in, the client changed the mix or gender of the school which required only slight amendments to the build, the design was able to accept those changes. There were nine schools to begin with, but during the design process they combined a couple and finalised it at seven schools. In total, 15 schools went to site.
What are the unique differences between each of your schools?
IA: They are a family of components and the difference is basically in the way each of those components is assembled each time. It’s the same parts responding to a different
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ND: We do have one major feature that changes on each site. It’s a feature wall which presents itself as a statement in the entrance and continues throughout the breakout space, connecting all the components together. On each site we chose different colours for the wall, depending on the location of the school. For example, some of the schools in Al Ain around Jebel Hafeet use the earthy rock colours inspired by the mountains.
How will these schools adapt to future demands?
IA: The brief for some of the sites was to accommodate up to 50% expansion. They have all been designed to receive some level of
“The most pleasing thing for all of us is that it’s probably setting a new bench mark for schools”
RIGHT: Mirza Salim Hussain.
because the guidelines that existed were more appropriate for office developments. For designers, sustainability is key for us anyway, and we embedded a number of design elements within the schools not only educationally, but functional sustainability items. At the heart of the school is a courtyard, that we have called the eco-court yard. In some of the schools we have steel structures called an eco tree that can act as an external classroom. There are plants growing on these and the students can go up a spiral staircase and understand how to cut, look after plants, recycle and compost. It becomes an outdoor science room for the teachers and it has been a hit so far.
TRENDS | ROUND TABLE
“Each is a family of components and the difference is basically in the way each of those components is assembled each time”
MSH: Additionally, the eco-courtyard has PV panels located over it to provide shade and also lighting for the science labs that look on to that court yard. It allows the children to connect
AR: Some sustainability elements are incorporated into the design easily others cost a lot, such as the MEP or when double systems are installed for water recycling for instance. ND: We were careful with the whole design from the start and considered the orientation of the school, glazing requirements and where we positioned the insulation. For example within our designs, insulation was placed on the outside of the masonry so the masonry doesn’t heat up and therefore the cooling load requirement is reduced.
“The joy of being taught is difficult to achieve, but it’s such an important element”
From a personal point of view, which elements of the design and finished sites are you most proud of?
MSH: Spaces. I am really happy with the way the break out spaces work, the way circulation is integral to that and the quality of acoustics, even though there are double height spaces.
Even by UK standards these designs are pretty radical spaces so it’s testing the water. On the feature walls on the staircase, we had a series of cut outs that children could see through, so it’s nice to see the way each space is working and allowing children to do what they want. AR: I second that, because when you enter, the first impression is openness – no hard lines, few straight lines, no corridors, which is critical I think. You don’t have this segregation of space. It’s very open and it’s happy as a result. That’s what I think is very important. It doesn’t seem like a school in the traditional sense. ND: There are two things that have been a success for me; firstly the use of day light. We were careful of how much to introduce because of the climatic conditions here. We introduced little windows in key places and I think the amount of light those small windows have produced has been very successful. The courtyard has also been a great success. It is doing exactly what we
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Photographs by Cris Mejorada
between what they see outside and what they learn inside. It helps them to easier understand what they are learning.
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LEFT: Nick Davies.
“The first thing you see when you approach the school is not a three metre wall, the entrance is actually visible and engaging for children”
wanted it to do and even the client is over the moon. They said it looked exactly like the rendering image we produced two years ago and it’s great that we achieved that. IA: For me I think it’s the quality of light. The previous generation of schools are quite dark because there were concerns about solar overheating, but we have proven that you can solve those environmental concerns and still get that quality of life inside, which helps the learning environment. MSH: Sustainability is fundamental and being simplistic about it, if you have natural light you don’t need energy to provide it artificially. . ND: The most pleasing thing for all of us is that it’s probably setting a new bench mark for schools, because all the students who have now started, love it. It’s like chalk and cheese. They are used to something very dark and dingy and now they have got this open, transparent school, where they can see the gardens outside and that’s probably what means the most to us. AR: The joy of being taught is difficult to achieve, but it’s such an important element. Traditional designs are not ‘happy’ and there’s an ingrained feeling of discipline, but here the whole learning process is holistic and very different. MSH: If you were a child, how would you want to see things through their eyes? Essentially what you have to try and do is treat children as equals. There is no reason why universities should be designed better then schools and I think it’s about raising that bar. If you don’t capture their attention when they’re young they’re not going to go to university. You have to make sure pupils are engaged.
Photographs by Cris Mejorada
Could, and do you think will, this design approach be rolled out into other public buildings?
IA: Definitely. I think all the key decisions we made were about trying to understand what the user wants and designing a building that is flexible enough. Any institutional building has to work very hard during its life time, so you have to be able to change it and I think that principle of flexibility and the principle of environment that doesn’t feel institutional and is instead about the quality of light and spaces
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AR: This project answers a lot of negatives in traditional schools and addresses them. MSH: It’s not just been planted, it’s culturally and socially aware. and the way you move around it; the class room fundamentally hasn’t changed a lot it’s a box where people sit at a desk. A hospital room is a bed with a bathroom and it’s almost everything else around it that is where you make the changes and where you add the value really. MSH: It’s proven that patients who have that view actually get better quicker than people who don’t. I think it’s the human condition that we are talking about. Whatever a building is, the question is what does a person want and need? Whether they are in a hospital, or a school, civic office or university.
What’s next?
IA: We understand there are other phases of this project planned and ADEC has expressed strong interest in using our model so hopefully there will be some further involvement for us. ND: We have had a lot of interest from private school operators, and we are in touch with a number of these which are looking to open schools in Abu Dhabi. IA: We have shown the designs to delegations from Saudi Arabia, Qatar, Bahrain and all round the region.
ND: Also, I think it’s a programme that a lot of other countries can follow, such as Saudi Arabia where many schools need to be built and they don’t want to reinvent the wheel but they want to learn from how Abu Dhabi achieved their goals.
“I think it’s the human condition that we are talking about. Whatever a building is, the question is what does a person want and need?” Abbad Al Radi, senior partner, Planar – planning, architecture and development research Ian Apsley, director, Broadway Malyan Nicholas Davies, director of architecture, Broadway Malyan Mirza Salim Hussain, associate, Broadway Malyan
SUPPLIER | NEWS
Suppliers news A round-up of the latest news and announcements from industry suppliers in the Middle East
Grohe
Planters Horticulture
Tratos Ltd
Sharjah Economic Development Department (SEDD) has received an award from sanitary fittings manufacturer Grohe, following a string of confiscations and awareness initiatives to clamp down on the trade of counterfeit goods. SEDD chairman H.E. Ali Salim Al Mahmoud and Grohe GM and regional president Simon Shaya were present at the ceremony held at Sharjah Radisson Blu last month. During the event, 49 SEDD employees were presented with certificates. With the support of Saba IP Grohe has been working with SEDD since 2011 to execute several raids across Sharjah, which saw 23,000 counterfeit items confiscated over the course of the year. Action was also taken against those manufacturing and trading the seized goods. “At GROHE, we are thankful for the commitment and diligence shown by The Department and its employees to this cause,” said Shaya at the ceremony. “We believe that it’s tremendously vital for every company to have a partner such as SEDD, as their commitment to fighting commercial fraud helps in making the UAE and the emirate of Sharjah a safer place for businesses and trademark owners,” he added. Director of controls and protection of trade department, Khalifa Misbah Al Ketbi commented that consumers have an important role to play in reporting violations and that dealers can generate “reasonable profit and RIO away from commercial fraud and counterfeit trading.
The interior landscaping of Dubai’s new Grosvenor House II has won the BALI National Landscape Award. Supplied by regionally-based Planters Horticulture, the lobby of the hotel features ficus trees reaching eight metres in height, spathiphyllum and orchids in steel plant pots. The theme is continued throughout the hotel. The 45 storey, Grosvenor House Tower II opened in 2011 and is a replica of the existing Grosvenor House Tower. Planters Horticulture has also completed projects at Dubai’s Ibn Battuta Gate Hotel, Royal Mirage, Radisson Bluand Souk Al Bahar. The company specialises in installations, trading, maintenance and preserved plants. “The interior landscaping was created to enhance the established personality of Grosvenor House and moreover to mirror the ethos and undeniably superlative taste of the interior design,” said Jonathan Pardoe, Planters director. The BALI National Landscape awards are held on conjunction with Horticulture Week and has been running for 35 years. Other winners included Bartholomew Landscaping as nest newcomer and best design and build and Gavin Jones, for the specialist roof garden category. “It has been a privilege to be entrusted with such a major project and we feel that we have truly captured and complemented the look and feel of the property and overall design,” added Pardoe. Registration is now open for the 2012 awards.
Konecranes has awarded a contract for cable supply to Tratos Ltd, a UK-based manufacturer of cables, for a contract at Khalifa Port. The purchase has been made by port developers Abu Dhabi Ports Company (ADPC) for 36 cranes’ cable lengths. The cables have been designed in such a way as to prevent twisting during operation and will be used on Konecranes’ Automated Stacking Cranes (ASC). It is Tratos’ Tratosflex and Tratosgreen medium voltage rubber insulated and sheathed drum reeling cables, which have been specified. The supplier’s engineers modified the internal cable design, to tighten the structure against the internal relative movement to accommodate high speed applications. Tratosflex and Tratosgreen cables are suited for use on one way reels with operation speeds of 200-300mt/min, two way reels with operation speeds of 200mt/min, end rollers with an operation speed of 180mt/min and central cable rollers with an operation speed of 60mt/min. They operate in temperatures ranging from -30°C to +80°C. Tratosgreen also has reduced halogens and toxicity. Konecranes signed a series of contracts last year to supply cranes to the Khalifa Industrial Zone and Port, including its automated stacking cranes (ASC) and container terminal operating system. The ASCs with Tratos cables are due for installation this summer.
Sharjah’s anti-counterfeit drive recognised
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Award for Grosvenor House II installation
Cables to be supplied for Konecranes at Khalifa Port
$7.3b value of the vrf market by 2013. a 40% increase on 2011
LG Electronics Gulf
AXOR
QatarCool
The regional annual commercial air conditioning (CAC) market will grow at an estimated 35% on 2010 levels, to reach US$4bn this year, according to figured from HVAC manufacturer and supplier LG. The growth will be pegged to a regional boom and investments from China. In 2010, the region’s annual CAC market volume reached US$ 2.95 billion, a figure which is expected to increase to US$ 3.21 billion for 2011. Among the products particularly in demand are variable refrigerant flow (VRF) systems, which provide customised temperature control within a single building or complex. According to research conducted by LG Air Conditioning and Energy Solution Company, the VRF systems market will reach US$7.3 billion by 2013, a 40% jump from last year’s total. LG’s VRF system is supplied under the brand name Multi VIII. “With this product, we are in a strong position to work with our dealers and business partners in the region to make LG the leading provider of smart and efficient HVAC solutions. And, this has definitely proved to be the case as the Multi V III has earned US$15 million so far since it was released in the Middle East,” said H.S. Paik, President of LG Electronics Gulf FZE said. VRF sales in 2011 grew 500% compared to the overall single air conditioning market’s 21%. The sales of this system continue to grow steadily as the expansion of the Middle East CAC market.
Axor, the designer brand of Hansgrohe AG, has added four new products to its Axor Citterio and Axor Uno2 catalogue. The additions include electronic wall mixers, wall mixers with star shaped handles, the Axor Starck basin mixer and Axor Starck manual shower. The products have been designed by Italian-born Antonio Citterio and Parisian Philippe Starck. Citterio’s Axor CitterioM collection “links soft curves with flat surfaces”, and all products are fitted with EcoSmart technology, limiting water flow to five litres per minute without impairing the functionality. The short run-on time of the mixers (around 1-1.5 seconds) also conserves energy and water. Philippe Starck’s first collector for Axor was released in 1994, when Starck created the first mixer with a ‘joystick’ type lever. In his career, Starck has also designed toothbrushes, chairs and houses. The newest edition to his collection is a height between that of the single lever mixers and the wash basin mixer, allowing users to combine both shallow and deep wash bowls with mixers in the unmatched Axor Starck design. The new, single-jet Axor Starck manual shower also features EcoSmart technology, limiting the water flow to nine litres per minute, without impairing quality. Headed by Philippe Grohe, Axor products to date have been designed by the likes of JeanMarie Massaud, Patricia Urquiola and Ronan and Erwan Bouroullec, in addition to Starck and Citterio.
QatarCool’s second seminar entitled ‘making it work for you’, has highlighted the need for information sharing among key partnerships and industry professionals to better service the community. According to QatarCool CEO Fayad Al Khatib, this would be “a major element behind successful projects in the country”. Presenting to delegates, project manager Issa Qandeel highlighted the importance of collaboration and coordination between providers and customers to ensure the complete success of projects, from planning through to the construction and operation. Data shared during the presentation demonstrated several areas where the customer may experience system inefficiency, and the unique reliability measures installed within each plant, throughout the network and on the client’s premises to ensure a continuous, reliable and energy efficient service. Richard Jowsey, operations manager, presented on the effective management of systems from both the supplier and customer angle. The seminar was concluded with a tour of the IDCP plant. QatarCool’s recent projects have included two new plants, located in Doha’s West Bay area and The PearlQatar, for which the Integrated district cooling plant (IDCP) is currently the largest in the world.
Increased demand for VRF systems reaches 500%
Four products added to catalogue
Seminar for information sharing partnerships
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CAREER LADDER SUPPLIER | NEWS | Coryn Hellewell
“We believe that it’s tremendously vital for every company to have a partner such as SEDD”
SUPPLIER PROFILE | imdaad
Growth trajectory Driven by innovations in design and construction and the introduction of sustainability regulations, Imdaad CEO Jamal Abdulla Lootah tells Dan McAlister about the opportunities that lie ahead
S
ome businesses may see the underdevelopment of their sector as a challenge, but for Imdaad CEO Jamal Abdulla Lootah, it’s all about opportunity. Observing that the practical value of facilities management (FM) is increasingly acknowledged worldwide, Lootah says the concept of FM itself remains relatively new across the GCC and wider Middle East. Yet he believes this only serves to underline the huge growth potential for FM services in the region; an opportunity that has spurred an investment spree in new technologies and more innovative solutions, within the company, that match the specific needs and expectations of existing and potential clients. “This is an important trend as it underlines the strategic importance of FM services as a tool for sustainable growth and development. Property owners, business enterprises and developers now realise the value of sustainable management and maintenance of their facilities,” Lootah says. Today, Imdaad has integrated specialised waste management services in its portfolio along with waste recycling services. “Such integrated FM services are growing in popularity as they give our clients complete freedom to operate in a safe, secure and clean work environment, which results in greater productivity and efficiency,” he adds. “Our ability to deliver a truly comprehensive range of integrated and sustainable FM solutions has been a major USP for us,” he continues. Imdaad recently signed a two-year contract to provide FM services to Hamdan Bin Mohammed Bin Rashid Sports Complex in Dubai, covering MEP equipment and systems, AC, civil works, IT works, soft and hard landscaping and street lighting. The Dubai projects have also paved the way for growth into neighbouring Abu Dhabi where specialised sustainable FM solutions are in high demand, due to the introduction of green building policies. The company states a commitment to focus on acquiring environmentally friendly equipment and adopting sustainable practices and techniques across all operations.
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Jamal Abdulla Lootah CEO, Imdaad.
“There is a growing need for specialised FM expertise in the Middle East because of the pace of development that is happening across the region” Independent Business
Imdaad has been operating for more than three years as an independent business entity, yet the company’s overall experience in facilities management (FM) spans over 25 years. Imdaad began in 1986 as a civil engineering division handling AC maintenance and basic FM services. The company’s portfolio of services expanded in 1989 to include waste management, pest control, sewage services, environment, and health and safety. Through a joint venture agreement signed in 2002, the
company started to provide outsourced facilities management services. Imdaad was formally inaugurated in 2007 as an independent business entity with a mission to provide integrated FM solutions in the UAE and across the region. Commenting on the growing pace of the FM sector, Lootah says technology will play a crucial role in meeting the ongoing demands of an ever-innovating construction industry, further commenting that Imdaad continues to invest in such equipment and the development of staff, to meet both these needs and its own environmental goals. He is quick to highlight the impact integrated solutions can have on both the environment and sustainable growth of any business enterprise. “There is a growing need for specialised FM expertise in the Middle East because of the pace of development that is happening across the region. The potential for growth in the Middle East is certainly huge in light of the region’s vast untapped markets. Imdaad’s roadmap for longterm growth therefore includes the entire Middle East region as a key destination for our services,” he says.
Imdaad’s FM projects have included: Musanada Hamdan Sports Complex RTA JAFZA WASL Nakheel IBN BATUTA Mall Dragon Mall Atlantis Institute of Applied Technology
BOOK YOUR STAND NOW! With over 20,000 sqm of space showcasing: Crawler Cranes, Mobile Cranes, Tower Cranes, Graders, Loaders, Compressors, Crushers, Fork Lifts, Skid Steers, Piling Rigs, Excavators, Access Platforms, Bull Dozers, Concrete Pumps, Cement Mixers, Grabs, Trucks, Material Handling Equipment, Front Shovels, Cherry Pickers, Rollers, Communication & Navigation Systems, and more... Contact Us +971 4 440 9129 info@constructionmachineryshow.com
The region’s largest heavy equipment exhibition The Construction Machinery Show will be the largest heavy construction machinery event in the region. There will be a wide variety of products on show ranging from heavy equipment to machinery and generators including service providers. There are plans of a live auction and demonstration area for visitors to get a real idea of the capabilities of the equipment. This event is dedicated to the construction machinery sector and will provide an invaluable platform for customers in the Arab world bringing manufacturers, distributors and buyers together. In 2012 the Construction Machinery Show will be co-located with the Saudi Building & Interiors Exhibition. SBIE is an ideal business platform to find out about the latest building and interiors industry developments, assess the competition and network with specialist contractors, equipment and material suppliers, as well as solution providers. We will be in Jeddah next April. Will you?
Find out more. Visit www.constructionmachinery.com The Construction Machinery Show and Construction Machinery Middle East and their entities are registered trademarks. The Construction Machinery Show is held alongside the Saudi Building and Interiors Exhibition under the patronage of the Saudi Ministry of Municipal and Rural Affairs. Š 2011 Corporate Publishing International. All rights reserved.
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INSIDER | professional associations
Will the interior design and build industry create a professional body?
Each month, The Big Project invites an industry insider to share their observations on a particular sector of the construction industry. This month, looks at the issue of professional accreditation in interior design
“To be ‘Chartered’ is to be professional and is a title still very much revered by companies and the individual alike” 58 | www.thebigprojectme.com
A
union or alliance is defined as an agreement or friendship between two or more parties. Often these alliances are created with great intentions, in the main, to promote and maintain agreed standards and more often than not, for the protection of a shared ideology. Some unions serve a great purpose, some do not. Some are viewed as too powerful, some are shrouded in mystery. But ultimately they are all
created to secure common interests. The Royal Institute of British Architects (RIBA) based in London, has in various forms, been in existence for over 175 years. One of its initial aims was to promote, ‘… the general advancement of Civil Architecture and for promoting and facilitating the acquirement of the knowledge of the various arts and sciences connected therewith …’. Today the RIBA employs over 200 staff, has
Professional associations
“The onus falls onto the chairmen, CEOs and MDs; those captains of the D&B industry. Do they really want to pioneer standards, define and reward excellence and eradicate the negative connotations often associated to the industry?”
numerous region chapters and is internationally recognised. RIBA also boast a community of over 44,000 members and to this day to be ‘Chartered’ is to be professional and is a title still very much revered by companies and the individual alike. Since 2008, RIBA has been recognised as a ‘superbrand’ and that is pretty cool in anyone’s book. Engineers are often Chartered, Surveyors xxxxxx. can be ‘measured’ and Constructors should always be ‘Considerate’, but what about the professional identity of the company in which they collectively serve? The Interior Design and Build (D&B) methodology (with some variations) has been dominant, certainly in the UK, for a number of decades now. There are a number of prominent D&B companies across the globe, hundreds of them, designing and building workspaces for
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Architecture: Royal Institude of British Architects (RIBA); American Institude of Architecture (AIA); UAE Architectural Association
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Engineering: Society of Engineers UAE, Saudi Council of Engineers
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Sustainable construction: Emirates Green Building Council; Qatar GBC; Saudi GBC
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Contractors: UAE Contractors’ Association
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Supplier Councils: American Hardwood Council; Malaysian Timber Council;
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Facilities Management: Middle East Facilities Management Association (MEFMA)
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Health and safety: Build Safe Dubai
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Surveyors: Royal Institude of Chartered Surveyors
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INSIDER | professional associations
global businesses that would have previously adopted the traditional method. Essentially the D&B model is certainly here to stay but where does it go next? Will it continue to clash or co-exist and compliment the traditional methodology? The UK has embraced D&B long enough for the industry to ask itself if it wants to create a better, more mature version of itself and if it wants to create a legacy and change the landscape? The onus falls onto the chairmen, CEOs and MDs; those captains of the D&B industry. Do they really want to pioneer standards, define and reward excellence and eradicate the negative connotations often associated to the industry? Whether the D&B companies or their employees would benefit from the creation of a professional body is up for discussion. Is there too much self-interest, gossiping, aggressiveness and in turn, competitiveness preventing a meeting of minds? Shouldn’t the end-user customer have the option to procure their fit-out from a transparent, accredited and regulated D&B company against one that is not? Surely they should have that choice?
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SUCCESS
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Celebrating construction’s biggest names and achievements from The Big Project + BGreen awards
CONTACT DETAILS Associate publisher Liam Williams liam@cpidubai.com TEL: +971 (0)4 440 9158
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Assistant editor Dan McAlister dan@cpidubai.com TEL: +971 (0)4 440 9118
UAE Project name: DoubleTree Hilton Resort Project - Marjan Island Project number: MPP2581-U Territory: UAE Client: Mohamed Ruqait Real Estate (Ras Al Khaimah) Address: City: Ras Al Khaimah ZIP: 2186 Country: Phone: (+971-7) 236 2221 Description: Construction of DoubleTree Hilton Resort comprising (309) rooms, featuring (11) suites in the main building and (45 Nos.) beachfront chalets, including two restaurants, a lobby and two bars, two swimming pools, a kids club, a health club and spa with five treatment rooms, and water sports facilities. Period: 2014 Status: New Tender Remarks: This hotel will be located on one of the five man-made Marjan Islands, located off the Al-Hamra area of Ras Al Khaimah. The Hilton Worldwide Group has signed an agreement with the client to build the hotel. Tender categories: Hotels, Housing Projects, Leisure
Project name: The Avenue Retail Strip Development Project Phase 1 Project number: ZPR542-U Territory: Dubai Client: Meraas Development (Dubai) City: Dubai Country: UAE Phone: (+971-4) 511 4900 Fax: (+971-4) 332 2707 Web: http://www.meraas.ae Description: Development of The Avenue retail strip spanning 350 metres comprising a dynamic mix of top retail brands, as well as convenience stores, food and beverage outlets - Phase 1. Period: 2012 Status: Current Project Remarks: This project will be developed at the crossroads of Al Wasl Road and Safa Road in Dubai. It is part of a threephase scheme spanning 1.1 kilometres in a prime location and will extend up to Sheikh Zayed Road. Local/UK Al-Futtaim Carillion has been appointed as main contractor to carry out Phase 1. Main consultant: Dewan Architects & Engineers (Dubai)
Main contractor: Al-Futtaim Carillion (Dubai) Tender categories: Housing Projects, Leisure
Project name: Mixed-use Development Project-12 Project number: MPP2560-U Territory: Al Ain Client: The Court of H.H. Crown Prince (Abu Dhabi) Address: Bainuna Street City: Abu Dhabi ZIP: 124 Country: United Arab Emirates Phone: (+971-2) 668 6666 Fax: (+971-2) 668 6622 Email: Development of a mixed-use scheme comprising a 25,000-seat football stadium, a sports centre, a hotel, a commercial centre and residential buildings. Closing date: March 22, 2012 Period: 5/12/2013 Status: New tender Description: This project will be located on a site of 500,000 square metres in Al Ain at the intersection of Zayed al-Awwal street and Hamdan al-Awwal street. The 25,000 capacity stadium has been designed as a new landmark for Al Ain and will be the new home for Al-Ain Football Club. The sports centre will have a health and fitness club for public use; three outdoor football pitches, a clinic, and a children's play area. The commercial part of the development will face the central plaza and the stadium, and provide 10,500 square metres of office space, 656 square metres of food and beverage outlets, 345 square metres of shops and 1,712 square metres of parking. The hotel will be four-star property with between 180 and 200 rooms having variety of facilities, including a gymnasium, spa, a swimming pool, food and beverage outlets, and high-end retail units. Five contractors have pre-qualified to submit bids for the main construction contract. They include Netherlands' Bam; France's Bouygues; Australia's Brookfield Multiplex; South Africa's Murray & Roberts Contractors (Middle East), with local Al-Naboodah Contracting; and South Korea's Samsung C&T. Design consultant: Broadway Malyan (Abu Dhabi) Project manager: Bovis Lend Lease International Ltd. (Abu Dhabi) Cost consultant: Davis Langdon
(Abu Dhabi) Tender categories: Hotels, Leisure, Housing Projects
Project name: AlHabtoor Palace II Hotel Project Project number: MPP2570-U Territory: Dubai Client: Al Habtoor Group L.L.C. (Dubai) Address: Near Metropolitan Hotel, Sheikh Zayed Road City: Dubai ZIP: 25444 Country: United Arab Emirates Phone: (+971-4) 343 1111 Fax: (+971-4) 343 1140 Email: habtoor@emirates.net.ae Web: http://www.habtoor.com Description: Construction of 36-storey Al-Habtoor Palace II project comprising a luxury hotel with (226) rooms, a fashion hotel with (424) rooms and a main hotel with (996) rooms. Status: New Tender Remarks: This hotel will be located on Sheikh Zayed road in Dubai. It comprises two basement levels, a ground floor, mezzanine floor and four-level podium with a 36-storey tower covering a total built-up area of about 372,000 square metres. Client has invited contractors to pre-qualify for the main construction contract. Lebanon's Khatib & Alami has been appointed as the consultant. Main consultant: Khatib & Alami Consolidated Engineering Company (Dubai) Tender categories: Hotels, Prestige Buildings
Project name: Headquarter Building Project - Masdar City Development Project number: SPR2351-U Territory: Abu Dhabi Client: Abu Dhabi Future Energy Company (MASDAR) Address: Masdar City, Opp. Presidential Flight, Khalifa City (A) City: Abu Dhabi ZIP: 54115 Country: United Arab Emirates Phone: (+971-2) 653 3333 Fax: +971-2) 653 6002 Web: http://www.masdar.ae Description: Design and construction of headquarter building comprising offices, condominiums and retail space within Masdar City development - Phase 1.
Status: New Tender Remarks: This project is in Abu Dhabi and will cover an area of 100,000 square metres. It will be equipped with enough solar panels to cover four soccer fields. The client has invited contractors to submit bids for the main construction contract. The built-up area of the building has been scaled down to about 30,000 square metres. Contractors have been invited to submit bids for the main contract to build the office building. Main architect: Adrian Smith & Gordon Gill Architecture LLP (USA) MEP consultant: Environmental Systems Design Inc. (USA) Structural consultant: ThorntonTomasetti Engineers (USA) Project manager: Louis Berger Group, Inc. (USA) Master plan consultant: Foster & Partners (UK) Foundations, enabling and contractor: Soletanche Bachy (France), Al-Jaber L.E.G.T Engineering & Contracting ALEC (Abu Dhabi) Concrete products supplier: Al Falah Readymix (Abu Dhabi) Tender categories: Prestige Buildings
Project name: Deerfields Town Square Mixed-use Development Project Project number: OPP238-U Territory: Abu Dhabi Client: MBI (Abu Dhabi) City: Abu Dhabi ZIP: 39996 Country: United Arab Emirates Phone: (+971-2) 444 3522 Fax: (+971-2) 444 5711 Email: info@mbiuae.com Web: http://www.mbiuae.com Description: Development of Deerfields Town Square mixed-use scheme comprising commercial, retail, residential, hospitality areas and a shopping mall to accommodate more than (200) retailers, shops, food courts, hypermarket, and 12-screen multiplex, including offices, serviced apartments and a hotel.
Budget: 200000000 Period: 2012 Status: Current project Remarks: This project will be developed at Al Bahia on the Abu Dhabi - Dubai highway and cover a total area of
ESTIMATING AND PROJECT CONTROL www.thebigprojectme.com | 61
MENA PROJECTS | TENDERS
TENDERS
Tenders provided by
MENA PROJECTS | TENDERS
80,000 square metres. It will include a Carrefour hypermarket covering 10,000 square metres, while the Landmark Group will establish its Centrepoint format. On the entertainment side, there will be Grand Cinema operating (10) screens. The anchor outlets are expected to take up 20% of the space, while the remaining will be for line retail. Local Fibrex Construction has been awarded the main construction contract to carry out Phase 1. The project has achieved significant progress on the leasing and construction front and is on track for delivery in fourth quarter of 2012. Over 34% of the project has already been leased to retail tenants. Nearly 40% of the mall's 808,000 square feet of gross leasable area has been assigned for retail, while 24% is allocated for retail anchor, 18% for entertainment, 14% for food and beverage options and 4% for service outlets. More than 20% of the construction has been completed to date. While the basement is completed, slabs on the Garden Level have additionally witnessed considerable progress. 50% of the concrete cast is in place on the north side of the Garden Level slab and 75% of the concrete cast has been achieved on the south side. Main consultant: Talbot Consultants International Inc. (Canada), MR Group Architecture & Engineering Services (Dubai), Retail consultant: Jones Lang Lasalle (Abu Dhabi) Main architect: Petroff Partnership Architects (Canada) Design consultant: RMJM (Dubai) Main contractor: Fibrex Industrial & Construction Group (Abu Dhabi) MEP contractor: Fibrex Industrial & Construction Group (Abu Dhabi) Specialist contractor: National Dewatering & Drainage Services Company L.L.C (Abu Dhabi) Enabling and piling contractor: Thinet International (Abu Dhabi), National Dewatering & Drainage Services Company L.L.C (Abu Dhabi) Tender categories: Housing Projects, Leisure, Hotels
Qatar Project name: Doha Festival City Development Project Project number: MPP2455-Q Territory: Qatar Client: Al-Futtaim Group Real Estate (Dubai) Address: Dubai Festival City, Al Rashidiya Area City: Dubai ZIP: 159 Country: United Arab Emirates
Phone: (+971-4) 213 6213 Fax: (+971-4) 232 5550 Email: af.realestate@alfuttaim.ae Web: http://www.afrealestate.com Description: Development of Doha Festival City comprising a retail centre, an entertainment park, two hotels and an auto park made up of car showrooms.
Budget: 1600000000 Period: 2014 Status: Current Project Remarks: This project is in Qatar. The multi-use scheme will be located 15 kilometres north of downtown Doha on Al Shamal Road, one of the main arterial routes to the city centre and connecting Doha with Bahrain. The complex will cover a total area of 433,847 square metres, while construction will be divided into three phases. Brands set to open stores in this development include IKEA, Marks & Spencer, Toys R Us, Ace Hardware, Intersport and other major regional retailers. Construction works have commenced on this development. IKEA, part of UAE's Al-Futtaim Group, will be developed under the first phase of construction and the 32,000 square metre store is set for completion in fourth quarter of 2012, with the remaining elements of Doha Festival City due for delivery two years later. Local Qatari Arabian Construction Company (QACC) and Amana Qatar Contracting Company have been appointed as the general contractors for IKEA, while a joint venture of local Hamad Engineering and UAE's Mohammed Al-Futtaim Engineering is carrying out the MEP package. It is understood that the financial close on debt funding is expected to be delayed to early 2012. According to project developers, the deal is almost ready to close, but there are still a few things to finish off with the documentation. Banks financing this development include Qatar National Bank, Commercial Bank of Qatar, Doha Bank and the International Bank of Qatar on the conventional tranche; and Qatar Islamic Bank, Qatar International Islamic Bank and Barwa Bank lending on the Islamic tranche. Main architect: Arab Engineering Bureau (Qatar) Design: DP Architects Pte. Ltd. (Singapore) Consultant Project manager: Mace Limited (UK) Financial consultant: Qatar Islamic Bank - QIB (Qatar) Project manager: EC Harris (UK) Main architect: Brewer Smith Brewer Gulf (Dubai)
Research and marketing consultant: Portland Design Associates (UK), Coverpoint Catering Consultancy (UK) Main contractor: Arabian Construction Company - ACC (Qatar), Amana Steel Buildings Contracting Company (Qatar) MEP contractor: Al Hamad Engineering (Qatar ), Al Futtaim Engineering L.L.C (Dubai), Engineering consultant: WSP (UK) Tender categories: Housing Projects, Hotels, Leisure
Project name: Northgate Shopping Mall Project Project number: MPP2440-Q Territory: Qatar Client: Al Afaq Real Estate Equinox W.L.L City: Doha ZIP: 490 Country: Qatar Phone: (+974) 4465 1154 Description: Construction of Northgate Mall comprising a podium with two levels of car park, a three-level shopping mall and (6 Nos.) five-level office buildings
Budget: 290000000 Period: 15/03/2014 Status: Current Project Remarks: This project will be located in Doha and cover a built-up area of 375,000 square metres. Local/Australian Al Habtoor Leighton Group has been appointed as the main contractor for this project. 13/10/11: It is understood that construction works will commence immediately. 13/04/11: At least nine companies have submitted bids for the main construction package on this scheme. They include local HBK Contracting Company, with Russia's Renaissance Construction; UAE/ Australian Al-Habtoor Leighton Group; local Aljaber Engineering, Gulf Construction; local/UAE Arabtec Construction; Turkey's Baytur Construction & Contracting Company; local/Belgium Six Construct, with UAE's Alec; and Lebanon's Qatari Arabian Construction Company (QACC). Design consultant: Callison Architecture (Dubai) Project manager: Associated Consultants Engineers - ACE (Qatar) Main contractor: Al Habtoor Leighton Group W.L.L (Qatar) Tender categories: Housing Projects, Leisure
Project name: Headquarters Building Project-17 Project number: MPP2427-Q
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Territory: Qatar Client: International Bank of Qatar (IBQ) City: Doha ZIP: 2001 Country: Qatar Phone: (+974) 4447 8000 Fax: (+974) 4447 3745 Email: enquiries@ibq.com.qa Web: http://www.ibq.com.qa Description: Construction of 32-storey, 225-metre-high headquarters building, including five basement levels for a bank.
Budget: 137000000 Period: Status: Current Project Remarks: This project is in Doha. The tower will be built on Al-Taawon Street, near the Qatar Olympics building and cover a total built-up area of 35,000 square metres. A joint venture of Greece's Aktor and local Redco International has been awarded the main construction contract on this scheme. Main consultant: KEO International Consultants (Qatar) Design consultant: Kohn Pedersen Fox Associates (USA) Main contractor: AKTOR (Qatar), Redco Construction (Qatar) Tender categories: Prestige Buildings
Saudi Arabia Project name: Kingdom Riyadh Land Mixed-use Development Project Project number: OPR519-SA Territory: Saudi Arabia Client: Kingdom Holding Company (Saudi Arabia) Address: 66th Floor, Kingdom Centre City: Riyadh 11321 ZIP: 1 Country: Saudi Arabia Phone: (+966-1) 211 1111 Email: info@kingdom.net Web: http://www.kingdom.net Description: Development of a multipurpose scheme, focusing on tourism and housing involving construction of mixed-use residential and commercial buildings, hotels, retail spaces, parks, car parks, private leisure and equestrian clubs, and serviced bungalows.
Budget: 7000000000 Status: New Tender Remarks: This project will be developed on Riyadh - Dammam highway in the northeastern outskirts of Saudi Arabia. It is understood that the serviced bungalows are expected to be managed
Project name: Addiriyah Heritage City Project Project number: MPP1819-SA Territory: Saudi Arabia Client: Arriyadh Development Authority (Saudi Arabia) City: Riyadh 11614 ZIP: 94501 Country: Saudi Arabia Phone: (+966-1) 488 3331 Fax: (+966-1) 482 9331 Email: info@arriyadh.com Web: http://www.arriyadh.com Description: Construction of Addiriyah Heritage City comprising 4 museums, a multimedia centre, traditional market, meeting spaces and dining facilities.
Budget: 300000000 Period: 25/12/2013 Status: Current Project Remarks: This project is located 30 kilometres northwest of Riyadh and cover an area of 170,000 square metres. It will be implemented in 2 phases. Local International Center for Contracting Company has been appointed as the main contractor to carry out Phase 1. Work is expected to be completed in the second quarter of 2012. Saudi Arabiabased Freyssinet has been appointed as main contractor for Phase 2, which is expected to be completed in the fourth quarter of 2013. Main architect: Buro Happold (Saudi Arabia), Ayers Saint Gross (USA), Lord Cultural Resources (Canada) Main contractor: Freyssinet (Saudi Arabia), International Center for Commerce & Contracting Company (Saudi Arabia) MEP contractor: Freyssinet (Saudi Arabia) Tender categories: Housing Projects, Leisure
Project name: Science Museum & Aquarium Construction Project Project number: MPP2566-SA Territory: Saudi Arabia
Client: Rayadah Investment Company (Saudi Arabia) City: Riyadh 11564 ZIP: 56850 Country: Saudi Arabia Phone: (+966-1) 205 9911 Fax: (+966-1) 205 9922 Email: info@raid.com.sa Web: http://www.raid.com.sa Description: Construction of a science museum and national aquarium
Budget: 300000000 Status: New Tender Remarks: This project is in Saudi Arabia. The museum will be linked to a geo-climate centre and both buildings will be located in the central area of King Abdullah Financial District (KAFD). Pre-qualified contractors are expected to receive tender documents for the main construction package in the second quarter of 2012. Tender documents for the aquarium are expected to be issued to pre-qualified companies by the end of first quarter of 2012. Design consultant: Cambridge Seven Associates Inc. (USA) Tender categories: Housing Projects, Leisure
Project name: Headquarters Building Project Project number: MPR052-SA Territory: Saudi Arabia Client: Al-Rajhi Banking & Investment Corporation (Saudi Arabia) City: Riyadh 11495 ZIP: 28 Country: Saudi Arabia Phone: (+966-1) 462 9922 Fax: (+966-1) 462 4311 / 460 1502 Description: Construction of new headquarters for a bank comprising a 205-metre-high, 36-storey office tower. Status: New Tender Remarks: This project is in Riyadh. The tower will be located on King Fahd road. The 10,246-square-metre plot set aside for this scheme is next to Ahmed al-Kashef Street on the north and empty plots on the south and east owned by the client. The total built-up area will be 121,445 square metres comprising 60,859 square metres for the tower, 40,984 square metres for the basement and 19,602 square metres for the podium. The top floors of this tower will be interlinked by an internal courtyard and used by the senior management of the bank. The tower will be built on top of a four-level basement car park and a 10-level car parking podium. Three levels of amenity floors above the entrance
lobby will cater to the employees, with the provision of an auditorium floor with training rooms, a restaurant floor serving fast-food and regional cuisines, and a prayer hall floor, which can accommodate (600) worshippers at a time. The New York office of Skidmore Owings & Merrill has prepared the concept design. Singapore's RSP Architects is completing the design work. US-based Hill International is acting as the project manager. Design consultant: Skidmore, Owings & Merrill LLP (USA) Specialist consultant: Buro Happold (UK) Project manager: Hill International Middle East Ltd. (Saudi Arabia) Design consultants: RSP Architects Planners & Engineers Pvt. Limited (Dubai) Tender categories: Prestige Buildings
Kuwait Project name: National Bank of Kuwait Headquarters Building Project Project number: MPP2584-K Territory: Kuwait Client: Al Shaab National Real Estate Company (Kuwait) City: Kuwait City ZIP: 3885 Country: Kuwait Phone: (+965) 2242 5303 Fax: (+965) 2242 5907 Description: Construction of 70-storey, 300-metre-high headquarters building for National Bank of Kuwait (NBK). Status: New Tender Remarks: This tower will be located in the Sharq area of Kuwait city. Edrasis Middle East, a joint venture of local Ahmadiah Contracting Company and Greece's Edrasis Psalidas, has been awarded a contract to carry out piling and excavation work for the project. Works have already commenced and will take six months to complete. Thereafter, the main construction package is expected to be tendered. The tower has been designed by UK-based architecture firm Foster & Partners. Bahrain-based Projacs International is acting as the project manager, while local SSH International is providing consultancy services on this development. Tender categories: Prestige Buildings
Oman Project name: Blue City Development Project Phase 1 Project number: MPP1182-O Territory: Oman Client: Al-Sawadi Investment & Tourism
Company - ASIT (Oman) City: Barka 320 ZIP: 747 Country: Oman Phone: (+968) 895 545 Fax: (+968) 895 535 Email: sales@alsawadibeach.com Description: Carrying out development of the Blue City scheme comprising various residential, commercial, business and tourism related clusters, including specific health, education and sports zones.
Budget: 2200000000 Period: 2012 Status: Current Project Remarks: Also known as Al-Madinat Al-Zarqa, this mixed-use project will be located about 100 kilometres northwest of Muscat and stretch over a 35-squarekilometre site along the Al-Sawadi seafront. The scheme will be developed over a 15-year period. The first phase, valued at about $1,900 million, will cover an area of 5.5 square kilometres. It comprises four hotels ranging from 120 to 300 keys, a golf community with (2 Nos.) 18-hole professional golf association (PGA)-standard courses, a waterfront residential resort, a tourist village with souks (markets), apartments and hotels, an aquarium, amphitheatre, and associated landscaping and parks. A joint venture of Greece's Aktor and Turkey's Enka has been awarded the $1,900 million design-and-build contract for the first phase of this scheme. It will take five years to complete and in total provide (45,000) residential units. Main consultant: Ahmed Abubaker Janahi Architects (Bahrain) Main architect: Ahmed Abubaker Janahi Architects (Bahrain) Project manager: Sintegro Gulf W.L.L (Bahrain) Project manager: Bovis Lend Lease (Dubai) Main consultant: Associated Consultants Engineers - ACE (Oman) Infrastructure: Africon (South Africa) Hospitality consultant: HVS International (UK) Masterplan consultant: Ahmed Janahi Visions (Bahrain) Main plan consultant: Foster & Partners (UK) Environment consultant: Atkins International (Oman) Marine consultant: Royal Haskoning (Netherlands Main contractor: AKTOR S.A. (Greece), Enka (Turkey) Tender categories: Hotels, Housing Projects, Leisure
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MENA PROJECTS | TENDERS
by Fairmont Hotels & Resorts. The scheme is currently in concept design stage. US' Booz Allen & Hamilton has been appointed to carry out a study. Main consultant: Omrania & Associates Architecture & Engg. Consultants (Saudi Arabia) Specialist consultant: Booz Allen & Hamilton (USA) Masterplan consultant: Omrania & Associates Architecture & Engg. Consultants (Saudi Arabia Tender categories: Hotels, Housing Projects, Leisure
To advertise please contact: LIAM WILLIAMS Associate publisher Email: liam@cpidubai.com Tel: +971 4 440 9158
RHIANNON DOWNIE Business Development Director Email: rhiannon@cpidubai.com Tel: +971 4 440 9156
CAROLE McCARTHY Marketing and PR Executive Email: carolem@cpidubai.com Tel: +971 4 440 9157
www.buildgreen.ae
26,391 Visitors to World Future Eenergy Summit 2011
US$5bn value of investment
in renewable energy in the Middle East, according to 2011 report by UNDP
104%
the amount that renewable investment increased from 20092010
US $211b global investment in renewable energy in 2010, an increase of 30% YOY
US$12b value of power, water and energy projects currently active in the Middle East
News
GLOBAL TRENDS
DIARY MENA INTERNATIONAL
Middle East Electricity Dubai, UAE: Feb 7-9 Now in its 37th year, Middle East Electricity provides the biggest platform in the region to do business in the power, lighting, new and renewable, nuclear and water sectors
Basrah Build
Basrah, Iraq: Feb 10-13 The third Basrah Build will welcome 25,000 targeted visitors and 200 exhibitors from Iraq, Iran, UAE, UK, Brazil, Lebanon, Germany, India Turkey and the UAE. The show covers construction, oildfield equipment and services, Iron and steel products, door and glass systems, paints and infrastructure among other areas.
Times Build Tech
Muscat, Oman: Feb 19-21 Trade show covering the development of building material and technologies, the event is held at the International Exhibition Centre in Muscat, Oman.
The Big 5 KSA
Jeddah, KSA: March 10-13 In 2011 The Big 5 Saudi attracted over 9000 unique buyers from Saudi Arabia. In 2012, the show is set to double in size and also feature an additional two new product zones. The show covers thousands of construction products from hundreds of sectors, including heavy construction and concrete, to fitout and facilities management.
DIARY | INDUSTRY EVENTS
FEBRUARY2012
Building and Decorating
Turku, Finland: Feb 3-5 For natives looking to build a new home and also those looking to source high quality materials for construction and decoration, the show will feature furniture and architecture from the local and national industry.
Haus Bau Messe
Innsbruck, Austria: Feb 3-5 This three day event brings together some of the most well known players in the European construction sector, aiming to provide them with valuable insights on the state of the global economy and the prospects represented by resurgent Asian markets.
Interclima+Elec
Paris, France: Feb 7-10 Interclima+Elec will serve as an outstanding venue for the presentation and promotion of your innovations. It will point the way to the future by reflecting and interpreting an emerging new market based on the use of smart technologies in domestic and working spaces to achieve comfort whilst respecting environmental, safety and security constraints.
Acetech
Hyderabad, India: Feb 10-12 Described as a “mega event�, Acetech is expected to attract 3000 visitors over the course of the show. It is organised by the Asian Business Exhibition and Conferences Limited and held at the HITEX Centre, Hyderabad.
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With the Middle East forging ahead with its plans to generate power from renewable sources, we asked visitors to WFES about the challenges and opportunities in the sector Laura Moldoveanu Managing director, Global Green Win and Biofuel Energy
In a place where there are 12 hours of sunlight daily, it is a pity that solar panels aren’t used on the home, but the legislation does not allow people to collect to the grid. In Romania there is very supportive legislation and they are looking at biomass, hydro and wind power. We are looking to install solar panels on the garages of 1000 homes in Bahrain. But doing this takes the power supply out of the authorities’ control. It is actually cheaper to connect to the grid than to generate your own electricity.
Dr Bratislav Ceperkovic Office of the first deputy PM, Republic of Serbia
The grid isn’t intelligent and to construct a smart grid will cost billions and take up to 30 years. Even in the year 2020 80% of the grid will still not be smart, but by then we will have electric vehicles and solar PV and so on. Germany has too much solar power at times and the generation has to be shut down because the grid cannot handle it. If you just put renewable onto a grid that isn’t intelligent and won’t be in ten years, you’re actually creating a new problem, in turning the renewables off to protect the grid. Then the media creates the wrong public perception.
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Carl Ziegler Swiss, director, Swiss Pavillion
The policy has to be thorough and coordinated like the work of Masdar, to avoid the problems seen elsewhere.
Colin Calder CEO, Passivsystems
You need to start looking at the whole grid. Here there is a direct correlation between peak sunshine and peak usage, with air
conditioning. In northern Europe they don’t have that correlation. But you need to build flexibility into energy storage and usage. We are so focussed on vertical technologies, that we miss the fact that if you overlay control software with intelligence you can increase the asset return. Storage is a must, because when you’re moving from non-weather dependent energy generation, you lose that complete control of what is happening. Denmark now has 50% energy generation from wind, and the only way to balance that is to have storage.
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