01perspectiveleighton international’s magazine

issue 03 ● september-november 2009

Focus on Malaysia

A rich history

Project wins

staying ahead of the pack

30 years in the region

abu dhabi market shines

02

We operate in Malaysia, India,

Singapore, Sri Lanka, Brunei, United

Arab Emirates, Qatar and Saudi Arabia,

and are expanding further across the

Middle East and North Africa.

We employ around 40,000 people

across two separate operating

companies: India, Malaysia and Offshore

Oil and Gas; and the Al Habtoor

Leighton Group, which operates in the

Middle East and North Africa.

We focus on five market segments:

Civil engineering and infrastructure;

building; mining; offshore oil and gas;

and rail.

Leighton International is a subsidiary

of Australia’s largest project development

and contracting group, the Leighton

Group. We benefit from our ability to call

upon the experience and technical and

financial expertise of the Group.

Perspective is a quarterly publication

Leighton internationaL is one of the Leading contractorsand project deveLopers in asia and the MiddLe east

produced by Leighton International.

It provides information on developments,

projects and issues relating to Leighton

International, Leighton Holdings and

associate companies.

If you would like to receive this

publication regularly, please email us

at info@leightonint.com n

Published by:

Leighton International FZ LLC

PO Box 502656

DMC #14, Dubai Internet City

Office No. G01, G/F EIB Building No. 5

Alfa Building, Dubai

United Arab Emirates

t: +971 4 423 0300

f: +971 4 427 8145

info@leightonint.com

www.leightonint.com

All values are in US dollars unless

otherwise indicated.

03

mD’s message 04

in brief 05

they said it 06

overview 07

industry news 08a growing offshore business 09

Leighton in Malaysia 10

snapshot 12

staff profiles 14

new projects 16flagship hotel project underway 16

Water project to connect communities 18

project win in key market 19

Company news 20programs support local communities 20

india scoops safety award 21

LhL annual results 22

contents08

1006

04 md’s message

Malaysia also holds

special meaning for

me personally. It is

where I commenced

my first role with the

Leighton Group

more than 10 years

ago, and where we built a substantial,

sustainable business from which we

were able to launch our expansion into

new markets including India, Indonesia,

Sri Lanka, Singapore and the Arabian

Gulf. Leighton International would

certainly not be the company it is today

were it not for our success there.

In more than 30 years we’ve been

working in Malaysia, we’ve done just

about everything. We’ve built railways,

highways, pipelines, power stations,

jetties, apartment buildings, commercial

and retail centres, water supply facilities

and even telecommunications networks

and receiver stations. And in doing so,

we’ve worked in just about every state.

Little wonder we’re regarded by many

as the leading international contractor

in the country.

In this issue we put the spotlight on

the current operations of our Malaysia

division, and review our history in the

country. We also cover the new work

we’ve won in the past few months in

Qatar and Abu Dhabi, and look at some

of the work our team has been doing in

local communities.

There’s also a fantastic image of

our offshore pipe-lay vessel, the

Leighton Stealth, on pages 12 and

13. The vessel set sail for the Shuqaiq

project in August following a major

upgrade that included the installation

of accommodation facilities.

The outlook for our business in

Malaysia remains strong. We’re pursuing

a number of good opportunities and

expect to secure some large-scale rail

infrastructure work and at least one

other major civil project before the end

of this year. These projects will help

ensure that Malaysia remains a core

component of Leighton International

for many years to come. n

david savagemanaging director

➜ your feedback is important to us, and i encourage you to send any comments

you may have on this issue of Perspective, or suggestions for future issues,

to info@leightonint.com.

malaysia is a special market for leighton international. it is the birthplace of the company, and remains a cornerstone of our business

Md’s Message

05

new work in qatarGulf Leighton has secured a QR 750 million water infrastructure project to connect two Qatari communities. The project, awarded to HLG by Qatar General Electricity & Water Corporation (KAHRAMAA), will include the development of new and independent water infrastructure facilities in the Duhail and Umm Qarn communities (see story page 18).

Work in hand up: the Leighton group’s work in hand stood at a$37 billion in august, and with a number of major projects due to be awarded, this could reach a new record.

in Brief

hlg to separatefrom 2010, the al habtoor Leighton group (hLg) will no longer be a part of Leighton international, as hLg moves to become a stand-alone operating company. Leighton international will remain focused on its core divisions of india, Malaysia and offshore oil and gas, and pursue growth in new markets in central asia.

Abu Dhabi Sparklesal habtoor leighton group recently secured over aed 3 billion of new work in abu dhabi with the award of the st regis hotel project on saadiyat island and a major project as part of the khalifa port & industrial Zone development. (see stories pages 16 & 19).

board visits indiain august the Leighton international Board held its quarterly Board meeting in india. the Board were special guests at the Leighton india cocktail party in Mumbai, and visited the triL project in chennai and the indore to Khalghat tollroad.

SteAlth SetS SAil the refurbishment and upgrade of leighton’s stealth pipe-lay barge is now complete, and the vessel set sail from abu dhabi to the shuqaiq project in august (see page 12).

in brief

prp ii wins annual safety awardThe PRP II project in India has won the annual Leighton International health, safety and environmental award (see story page 21). Members of the project team were presented the award by Chairman John Faulkner at the Leighton India cocktail party in Mumbai.

06

“While the world is passing through a recession, ongc is concentrating on the progression of its existing projects and conceiving new investments that will definitely add value in the next coming quarters”r.s. sharma, cmd of india’s ongc, for whom leighton is currently building the prpii project

“we have to work hard to secure new projects otherwise we will be out of business.”

Zelan bhd chairman datuk anwar aji says the company is pursuing malaysian infrastructure projects to reduce its overdependence on overseas contracts where it was adversely impacted by the surge in material prices

“the turnover of the construction industry per annum is rm60 billion and the stamp duty alone will cost the industry an additional rm300 million per annum” master builders association of malaysia president ng kee leen reacts to the proposed introduction of a new 0.5% stamp duty imposed by the government on new construction projects

they said it

(the crisis) is a passing

cloud that will not stay longer, despite pessimistic speculations and analyses by economists and financial expertsh.h. sheikh mohammed bin rashid al maktoum, vice-president and prime minister of the uae and ruler of dubai comments on the global financial crisis

quotes

“investors are taking a long hard look at their portfolio asset allocations and setting the wheels in motion for change. in this process, infrastructure has emerged as an asset class with long term growth providing relatively stable returns” says mr kuljit singh, partner, ernst &young india in response to the results of a recent survey titled ‘the opportunity framework: private equity in indian infrastructure’

given the importance of infrastructure, an infrastructure Budget would be

appropriate. the prime Minister could present the budget in parliamentconference chairman of the confederation of indian industry (cii) suminfra 2009 conference, mr j.p.nayak, presents one of cii’s 12 recommendations for infrastructure development

“high levels of work in hand, combined with significant spending by governments to stimulate economic activity – both in australia and overseas, and a resurgence in growth of china, will maintain our operating performance in 2010”leighton group chief executive wal king announces the group’s results for the year

07overview

staying ahead of the pacK

how do you rate Leighton’s position in the malaysian market?Our involvement in Malaysia began

more than 30 years ago and has

withstood the fluctuating economic

cycles of the 1980s and 1990s. Whilst a

number of international contractors have

withdrawn from this market we continue

to remain committed to our business in

Malaysia through this current global

economic crisis with a secure workload

for the next three years.

We pride ourselves in adopting

a selective approach to providing

construction input, focusing on

projects that require specialist skills

and expertise. This approach to doing

business respects the capabilities of

the local construction industry, while

allowing our clients to take advantage

of our local knowledge and international

experience to successfully complete

their projects.

what makes Leighton stand out against its competitors?Leighton’s combination of international

experience and local knowledge allows

after more than 30 years operating in malaysia, leighton continues to work hard to stay ahead of the competition

tony harveyJob title: generaL Manager, Leighton contractors MaLaysia

eDuCation: Bsc MechanicaL engineering, chartered engineer

previous positions: joined Leighton MaLaysia in 2000 as project Manager for LeKir BuLK terMinaL project, in 2002 BecaMe operations Manager and in 2004 project director for raWang to ipoh raiL project. generaL Manager since 2006

us to develop innovative, practical and

cost-competitive solutions for our clients.

In keeping with this, Leighton has

recently successfully delivered the KL

to Putrajaya Highway Project and the

Rawang to Ipoh electrified double-

track project. These were complex and

challenging projects where Leighton’s

specialist skills and approach added

value for our clients.

The ability to deliver a quality product

within time and in a manner that

values employee safety and that is

environmentally responsible are also our

strengths that cannot be understated.

how has malaysia’s construction industry fared in the global financial crisis?Malaysia has not been immune to the

global financial and economic meltdown

and the construction industry has not

been spared. However, the Government

has been committed to providing

financial stimulus, which includes driving

the construction sector.

We, together with our partner Emrail,

have been targeting the extension of

the electrified double track from Ipoh to

Padang Besar. The crisis has potentially

provided an impetus to fast track the

award of this RM1 billion project as

early implementation of this project

will generate much needed work for

suppliers and sub-contractors.

what are the key challenges for Leighton malaysia?The key challenge is to maintain our

competitive edge ahead of the maturing

local contracting companies.

We have to retain and develop

our ability to re-engineer conventional

designs, introduce latest methods of

construction, and apply project delivery

mechanisms that generate cost,

schedule and delivery efficiencies, which

in turn adds value for the client.

Developing and training national

staff to assume key senior positions

in the company both at corporate

and project levels are key challenges

in the ever critical drive towards

lower cost structures whilst maintaining

our technical and project

management competencies.

what are Leighton malaysia’s key areas for growth and how will you ensure continued success in this market?We focus on rail, marine, offshore oil

and gas, and civil engineering and

infrastructure sectors. Leveraging on

successful delivery with past clients,

strategic relationships with local

partners, retaining technical expertise

developed and developing local staff are

all significant steps to ensuring

continued success in this market.

We have invested in specialised rail

assets for ongoing track works and

intend to reinforce our position as

a prominent track laying contractor

including LRT-related tracks.

Our team of experienced offshore

pipeline professionals and access to

the Leighton Offshore fleet allows us

to compete for these works within

regional waters. The transformation

of Malaysia as a trans-shipment

hub for commodities presents fresh

opportunities as we have delivered

on several challenging marine facilities.

Emrail, a strong local company,

has an equity shareholding in

Leighton Malaysia, which enhances

our ability to pursue and develop public

sector opportunities.

Our team has the ability to respond

to technically challenging and financially

complex deals. We have to capitalise

on our flexibility, versatility and our

expertise in a broad range of industries

to remain relevant in a market that is

getting ever competitive and also tap

into opportunistic ventures. n

08 industry news

Prominent Malaysian

businessman Tan Sri

Hari Narayanan offers a

vivid analogy for the

impact the global

financial crisis has had

on his country.

“We did not fall from a 14-storey

building, we fell from a 4-storey

building,” he says. He admits Malaysia

has been hit hard but he also stresses

that it sustained lighter injuries than

the United States and Europe, and is

recovering faster.

This relative soft landing is thanks,

in part, to the Government’s financial

restructuring after the 1997 ASEAN crisis.

“When the global financial crisis began

last year we were hit but not that bad

because we had parameters already in

place,” says Tan Sri Hari.

a fast recoverymalaysia was not immune from the effects of the global financial crisis, but it was spared some of heavy blows felt across the rest of the world according to one key malaysian commentator

“The Government provided two

stimulus packages: the first was less than

MYR 10 billion (US$ 2.9 billion) and the

second MYR 63 billion (US$ 18.2 billion).

We went negative in Q1 and Q2 this year

but now there is slow recovery.”

Construction is a big part of

Malaysia’s swift recovery because it is a

developing country with an urgent need

to progress.

This progress is centred around

three main infrastucture demands:

reducing urban congestion, moving

away from fossil-fuel power production,

and increasing trade from and through

Malaysia with better transport (notably rail).

“We are building railways, hydro-

electric plants, better public transport

systems such as the MYR 9 billion (US$

2.6 billion) extension the MRT [metro]

in Kuala Lumpur, and developing gas

fields,” he says.

“There is good growth in power

production and we are spending billions

of dollars on hydro. The big hydro

project is Bakun, a MYR 10 billion

(US$ 2.9 billion) scheme in Sarawak.”

Another major project is the MYR

12.5 billion (US$ 3.6 billion) Northern

Rail Track which will eventually link with

a southern line to create the Trans-Asian

Route connecting Singapore, Malaysia,

Thailand, Cambodia, Vietnam and

China. The project is spearheaded by

Emrail with Leighton Malaysia (of which

Tan Sri Hari is Deputy Chairman) as

specialist contractor.

Despite his bullish outlook, Tan Sri

Hari also sounds a warning bell.

“The challenge is no longer just the

ability to do the job but also to get the

financing right. There are opportunities

for contractors who offer financing

packages attractive to the Government

such as PFIs (Private Funding Initiatives);

every project must be paid off over time

rather than becoming a white elephant.

This means the Government can use

its money for social projects rather than

construction projects.”

Also, contractors in Malaysia are facing

stiff competition from Chinese firms who

offer much more aggressive pricing.

Tan Sri Hari’s vision for the next

decade is concise and direct: “Either

we change or we will be changed by

others - ‘keep it financially slim’, that’s

the message.” n

“When the global financial crisis began last year we were hit but not that bad because we had parameters already in place” – tan sri hari

09

a groWing offshore Businessthe success of leighton’s current offshore oil and gas projects signify its growing strength and presence across the region and the enhanced capability being developed from its malaysian office

before installation. The 6.5 kilometre,

38-inch pipeline will be installed using

the conventional s-lay method utilising

Leighton’s own pipe-lay barge, Leighton

Stealth. The onshore works began in

May this year and the offshore works

started in September. Overall completion

is expected in December 2009.

brunei methanol plantThis US$ 73 million project includes the

installation engineering, procurement and

commissioning of a 24-inch diameter,

13.4 kilometre long offshore pipeline.

Leighton will be responsible for the

engineering, procurement, installation and

commissioning of the associated PLEM

and SPM systems.

The Brunei Economic Development

Board is developing this facility as an

export terminal for the methanol plant in

the Sg Liang Industrial Park. The offshore

pipeline system installation will be by s-lay

method using the Leighton Faulker

pipe-lay barge. Mobilisation and site

preparation works commenced in July

and installation works commenced in

September. Offshore works are expected

to be complete by November 2009.

muthurajawela, sri LankaThe engineering, procurement,

installation and commissioning of a

new Pipeline and Tank Farm Modification

Project on behalf of Ceylon Petroleum

Storage Terminals Limited is currently

being undertaken by Leighton in

Sri Lanka.

The scope for this US$ 65

million project includes engineering,

procurement and construction of a new

18-inch, 6.1 kilometre offshore pipeline

and 1.2 kilometre onshore pipeline

(adjacent to an existing white oil pipeline)

connecting a new CALM type SPM (dual

path) to existing storage tanks at the

Muthurajawela Tank Farm.

The SPM system includes connection

to an existing PLEM and anchoring

system, and provision of new PLEM,

floating and subsea hoses.

The onshore works include the

installation of a pipeline using the

Horizontal Directional Drilling method

and modifications to the existing

Muthurajawela Terminal tank farm to

manage petrol and heavy fuel oil in

addition to the existing diesel and

kerosene capability.

Leighton was involved in the original

SPM and pipeline installation and this

new project is designed to ensure a

supply of 1000 tons of fuel oil per day to

the newly commissioned 300MW

Kerawalapitiya Power Station. The project

is due for completion in February 2010. n

shuqaiq Leighton is undertaking an offshore

pipeline project for Zelan Malaysia. This

is the second Independent Water and

Power Plant to be developed in Shuqaiq.

This US$ 27 million project will

generate a net power output of

850MW and a net dependable water

supply of 212,000 cubic metres per day

to the southern region to satisfy an

increase in demand.

Leighton’s scope of work comprises

the installation of 38-inch and 20-inch

subsea pipelines including risers, tie-in’s,

Pipeline End Manifold (PLEM) and Single

Point Mooring (SPM) removal, post-

trenching and pre-commissioning.

This scope of work is challenging.

The 1.7 kilometre 20-inch pipeline is

heat traced and will be installed by the

‘rentis’ tow method where the pipeline

will be prefabricated onshore and later

towed out to its final offshore location

industry news

10 project updates

Leighton has since delivered a huge

range of large-scale civil infrastructure,

building, rail, telecommunications,

offshore and mining projects across

peninsula and East Malaysia for both

the public and private sector.

Leighton Contractors (Malaysia) Sdn

Bhd was formally established in Kuala

Lumpur in 1982, but it took nearly two

years before the company secured its

first project in peninsula Malaysia.

In late 1984 it was awarded the Teluk

Intan District hospital in Perak for the

Malaysian Government. A large project

by the standards of the day, the MYR

472 million project involved the design,

construction, equipping and

commissioning of a new district hospital

– comprising more than 50 separate

buildings – some 160 kilometres north

of Kuala Lumpur.

Described by the Malaysian Works

Minister at the time as ‘the most

beautiful hospital in the country’, it was

the first of a series of government rural

district hospitals in Malaysia. The

contract required an extensive transfer

of technology program involving

seminars and training for government

staff. The site workforce and staff

peaked at 1,200, the design team at

80 and the total contract including

commissioning was completed

ahead of time.

A number of onshore and offshore

pipelines followed, along with a second

flour mill at Lahad Datu.

The company realized that if it was to

build a sustainable business in Malaysia,

it would need to diversify its workload.

In the mid-1990s Leighton secured

a gold mining contract at Kuala Lipis.

The project was performing well until

the Asian economic crisis hit, and it was

forced to close. Some lean years

leighton has come a long way in malaysia since it was awarded its first contract more than 30 years ago. since it secured the contract to build a small flour mill in labuan, sabah, it has grown significantly, to the point where it is now considered the leading international contractor in the country

Leighton in MaLaysia

11industry news

followed as Malaysia was buffeted by

the crisis, but as the region began to

recover Leighton embarked on a period

of sustained growth. This growth phase

coincided with the arrival of a new

Managing Director for the business,

David Savage.

Following Mr Savage’s arrival the

company picked up a number of

substantial projects in quick succession.

The first was its largest-ever project at

that time, a MYR 760 million contract to

build 10,000 apartments for teachers at

remote schools across the length and

breadth of the country. The project was

an unqualified success, made even more

notable for its incredible safety record.

The project achieved over 18 million

man-hours without a lost-time injury,

a new company record and an

achievement recognized by the World

Safety Organisation.

The arrival of the new millennium saw

Leighton secure the major civil works

package, the cooling water intake, and

the Lekir Bulk Terminal at the Manjung

power station. This series of related

projects quickly made Malaysia the

most important market in Leighton’s

international operations and consolidated

it as Leighton International’s (or

Leighton Asia (Southern) as it was

then known) headquarters.

In 2000 the company achieved

ISO18001 health and safety certification

(to go with the ISO9001 quality

certification and ISO14001

environmental certification it already

held), the first construction company

in Malaysia to do so.

Further diversification into

telecommunications saw the company

install phase two of Maxis’ national

optical fibre network, along with a series

of base transceiver stations for the same

company. Similar work was then

undertaken for rival telecommunications

provider, DiGi.

By now, Leighton had established

itself as the premier international

contractor operating in Malaysia, and the

large project pipeline has continued to

flow for the company ever since. In

2007, leading Malaysian rail contractor

Emrail took a stake in the company. This

move not only re-emphasised Leighton’s

potential in the local market, it also

opened up further opportunities to

expand the company’s rail activities.

Notable major projects undertaken this

decade have included the Avenue K

mixed-use development in Kuala Lumpur,

the Rawang to Ipoh rail double-tracking

project, and the landmark Kuala Lumpur

to Putrajaya Highway.

One of the keys to Leighton’s

success in Malaysia, according to

General Manager Tony Harvey, has

been its people.

“Over many years we have developed

a very strong, loyal workforce,” Tony

says. “We’ve managed to find a perfect

balance of local and expatriate staff and

as a result our corporate tagline ‘local

knowledge, international experience’

really represents what we offer the

Malaysian market,” he said.

“The outlook for Leighton remains

positive. We expect to secure a major

rail infrastructure project in the next

couple of months, a project that would

enhance our reputation as a rail

specialist and help underwrite the

business for the next few years.”

Malaysia remains a cornerstone

of Leighton International’s business.

The country will inevitably continue

its impressive growth trajectory, and

Leighton looks forward to playing its part

in its ongoing development. n

malaysia remains a cornerstone of leighton international’s business ...leighton looks forward to playing its part in its ongoing development.

12 xxxxxxxxxxxxx

snapshotfollowing a 232-berth accommodation upgrade, Leighton pipe-lay barge stealth set sail in mid-august. the vessel is bound for the us$ 27 million shuqaiq project located 100km southwest of abha and 140km north of Jizan on the shores of the red sea. n

13

14

name: Martyn cueLL

Job title: technicaL

services Manager

loCation: MaLaysia

proJeCt: Leighton

contractors (M) sdn

Bhd - head office

how long have you been working in the industry? I have been in the construction industry

for 30 years; my entire working life.

I graduated from Loughborough

University in the UK with an Honours

Degree in Civil Engineering. The majority

of my career has been in the

pre-contract/estimating function and

I am currently in my 14th year with

Leighton in Malaysia.

staff profile

what attracts you to pre-contract work? The main attraction for me is the variety

of work that I get involved in. Due to

Leighton’s diverse range of capabilities,

I may be involved in a submarine pipeline,

a power station, a railway and a building

project all in one year. This means that the

breadth of your knowledge needs to be

wide, but also allows you to continually

learn from involvement in areas you

previously knew little about.

WorKing in MaLaysia

“the thrill of securing a new project and thereby contributing to the success of the company is the most rewarding part of the job.”

what does a normal working day look like for you? Pre-contract work is cyclical with

periods of intense pressure and then

other times when life is less hectic.

During the busy times my day generally

includes organizing the engineering,

planning and procurement input for the

estimators and managing the

preparation of the estimate itself.

what are the day-to-day challenges you face at work? The major challenge I face is meeting

deadlines for tender submissions. There

is no flexibility in these deadlines and

with seemingly shorter tender periods

and increased expectations from clients.

It can be a challenge in terms of the

amount of information that needs to be

provided and organizing and managing

the various inputs for the submission to

ensure it all comes together on time.

what is the most rewarding thing about your job?The thrill of securing a new project and

thereby contributing to the success of

the company is the most rewarding part

of the job. To do this in a competitive

situation and show that we can produce

a more cost effective and/or technically

competent solution compared to other

contractors is an added reward.

where do you see the construction industry in malaysia placed in the year ahead? The market in this part of the world is

always challenging regardless of the

global financial situation. There are many

competent contractors who can provide

clients with what they expect and

Leighton always needs to find

opportunities where there is a value add

for involvement of a foreign company.

Fortunately, these opportunities continue

to exist for us. n

15staff profile

name: siMon MatheWs

Job title: senior projects

deveLopMent Manager

loCation: MaLaysia

proJeCt: Leighton

contractors (M)

sdn Bhd - head office

how long have you beenworking in the industry?I joined the industry in April 1984

following graduation as a civil engineer

from Glasgow University. My first five

years was with an engineering

consultancy, followed by another

five-year stint with Biwater involved with

the construction of rural water supply

schemes. In the mid to late 1990’s I

worked with John Holland Asia with the

development and implementation of

water concessions. I joined Leighton in

April 2000 and currently I am responsible

for developing opportunities and

securing projects within Malaysia,

Brunei and Singapore.

what attracts you toyour work?The diversity of opportunities and clients

we pursue, understanding key driving

forces, developing strategies and

partnerships to provide us with an edge

and leading a matrix team coordinating

a group of highly competent individuals

within their own fields makes work very

refreshing. Leighton offers ample latitude

for self-management and creativity within

broad guidelines which is also liberating

and satisfying.

what does a normal workingday look like for you?Normal activities include filtering

opportunities, initial pitch of capabilities

and registering interest, understanding

key drivers, formulation of alternatives,

discussion of ideas with the pre-

contracts team, preparation of bids,

responding to clarifications, negotiations,

etc. The face of a work day changes

dependent on the stage of an

opportunity and the number of active

proposals. The common thread is never

having a dull moment and there is a

sense of being closer to the objective

at the end of a hectic day.

what are the day-to-daychallenges you face at work?We get leads for numerous projects and

the ability to filter opportunities that have

highest likelihood of success is a key

competency required to ensure resources

are not unduly expended. Being sensitive

to client issues whilst having to manage

our risk exposure within corporate

guidelines is also a challenge.

what is the most rewardingthing about your job?The past 18 months has seen the

securing of six different contracts spread

across each of our geographic location

of operations through the efforts of an

excellent team working together to

produce exceptional technical,

commercial and contractual solutions for

the client. Certainly the most rewarding

aspect of work is being entrusted by the

client to undertake the implementation

of their projects.

in your countries ofoperations, where do yousee the construction industryheading in 2010?Given our expertise in a broad range

of industries and with various project

delivery methods and having a

successful track record in delivery

of projects, there is very little within our

chosen market sectors that we cannot

pursue. Key through the current global

economic downturn is to continue

filtering opportunities on which we can

add competitive value to all our clients. n

16

The joint venture of Al Habtoor -

Murray & Roberts has been awarded a

project to construct the St Regis Hotel

and Residences on Saadiyat Island in

Abu Dhabi for the Tourism Development

and Investment Company (TDIC).

The St Regis Hotel and Residences

is the flagship hospitality project on

Saadiyat Island and will comprise

380 luxury hotel rooms, 259

residential apartments and 33 luxury

residential villas.

The project also features a retail

and entertainment component, a health

and racquet club, a health spa and

1600 structured parking bays. Work

commenced on site in August and the

project is due for completion in 2011.

Leighton International Managing

Director David Savage said the award of

this new project reaffirmed the strength

of the Abu Dhabi construction market.

“We are pleased to have secured such

new projects

a project on Saadiyat Island,” he said.

“It was easy to recognise the

significance of the Saadiyat Island

project, which is primarily what fuelled

our interest in the opportunity.

“We recognise the St Regis Hotel and

Residences as a flagship project on

Saadiyat Island and value the opportunity

to collaborate in this resort with TDIC.

“This award shows the Abu Dhabi

market remains buoyant and we are

ideally placed to take advantage of

the opportunities in this market.”

The development will have close

proximity to the cultural district which will

host some of the key museums such as

the Zayed National Museum,

Guggenheim Abu Dhabi and the Louvre

Abu Dhabi.

The St Regis Hotel and Residences

will be located adjacent to the 72-par

Saadiyat Beach Golf Course designed

by golfing legend Gary Player. n

fLagship hoteL project underWaywork has begun on a flagship hotel project for the high-profile development of abu dhabi’s saadiyat island

17new projects

18 new projects

al habtoor leighton group (hlg) has been awarded a qr 750 million water infrastructure project to connect two qatari communities

Water project to connect coMMunities

The project, awarded to HLG by Qatar

General Electricity & Water Corporation

(KAHRAMAA), will include the

development of new and independent

water infrastructure facilities in the Duhail

and Umm Qarn communities.

HLG will construct a total of six

concrete reservoirs, a pump house, and

associated buildings, road works and

landscaping for the Duhail Water Station

project. The scope of works also includes

the installation of a 15.9 kilometre water

distribution pipeline.

The scope of works for the Umm

Qarn Water Station project includes the

construction of three concrete

reservoirs, a pump house, associated

buildings and road works and

landscaping. A 700 metre water

distribution pipeline will also be installed

as part of the project.

Leighton International Group

Managing Director David Savage said

the award of the water infrastructure

project reflected Al Habtoor Leighton

Group’s commitment to Qatar.

“We are very pleased to be awarded

this project in what is a very important

market for us,” he said.

“We currently have a number of

projects in Qatar that are progressing

well and this further builds on our

reputation and presence in the region.”

The latest award follows two recent

project wins for Al Habtoor Leighton

Group in the Arabian Gulf.

“Al Habtoor Leighton Group remains

well positioned to take advantage of the

ongoing opportunities in the Middle

East, which remains a strong and solid

market for us.”

The water infrastructure project

commenced in August and will be

completed by 2012.

Umm Qarn is located midway

between Doha and Al Khor and the

Duhail project site is located on the

outskirts of Doha. n

19

project Winin Key MarKet

a new aed 1.4 billion project in abu dhabi has helped al habtoor leighton group cement its place as a leader in this growing middle eastern market

The Al Habtoor Leighton Group (HLG)

has been awarded the AED 1.4 billion

project at the Khalifa Port and Industrial

Zone (KPIZ) by the Abu Dhabi Ports

Company (ADPC).

HLG’s scope of work includes the

construction of the on-shore port

facilities and includes the construction

of 47 buildings, the largest being the

central facilities building which is over

300 metres long and five stories high.

Also included is the associated

infrastructure works which consists

of a series of road networks, bridges,

utility installations and hard and

soft landscaping.

Work has already commenced, and

the project is due for completion by

September 2011.

Managing Director of Leighton

International, David Savage, said the

award of this KPIZ project highlighted

the continued strength of the Abu Dhabi

construction market.

“We are delighted to have secured

this important project for a quality client

like ADPC,” he said.

“Abu Dhabi continues to offer strong

new work prospects, particularly in

large-scale infrastructure, and it is likely

to be our most important market for the

foreseeable future,” he said.

KPIZ will be a multi-purpose facility

located in Taweelah, Abu Dhabi and

strategically placed between Abu Dhabi

and Dubai. The project includes the

construction of a world-class container

and industrial port and the development

of industrial, logistics, commercial,

educational and residential special

economic and free trade zones.

With a number of major industrial

players already committed to

establishing capacity at KPIZ, the

Taweelah area is set to become

one of the world’s top industrial

and logistics hubs.

The Abu Dhabi Ports Company

(ADPC) is a master developer and

regulator of ports and industrial zones.

Its purpose is to create a sustainable

growth platform that spurs economic

expansion and diversification for

Abu Dhabi by developing world-class

infrastructure, real-estate and

business services in conjunction

with the private sector.

ADPC has been mandated to

develop all ports (with the exception

of oil and gas and military ports) and

related infrastructure in the emirate

of Abu Dhabi.n

“abu dhabi continues to offer strong new work prospects, particularly in large-scale infrastructure, and it is likely to be our most important market for the foreseeable future” – david savage

20 company news

leighton international is committed to supporting the communities in which it operates. project teams from across the business have recently shown this commitment in action

prograMs supportLocaL coMMunities

malaysiaThe project team for Leighton Malaysia’s

Brunei Methanol Plant offshore project

hosted a community event to help

celebrate the Muslim spiritual month

of Ramadan.

Attended by 300 men, women and

children of the Lumut District, the team

hosted a special prayer and breaking

fast ceremony with local dignitaries and

community members.

In keeping with the focus on charity

during Ramadan, the event also

included a presentation of donations to

orphaned children and widows within

the community.

Brunei project manager Paul Wilks said

the Village Council had worked with

Leighton to compile the list of needy

individuals. He said the program was an

excellent example of the company working

hand-in-hand with the community.

“Working in other people’s backyard

can often be a touchy subject, almost

anywhere in the world. By arranging

such informal gatherings with the local

community leaders and people, all

parties get a chance to talk, evaluate

and to understand each other’s

perspective,” Mr Wilks said.

“Obviously this acts as a significant

“ice breaker” and helps to garner

co-operation, understanding and

respect between all parties. This

ultimately leaves the local community

with a better attitude towards the

company, which in turn opens

communication channels for the future.

“Events such as these help the

project team understand the local

community better in terms of their daily

living, their concerns, their problems and

their aspirations. It was a valuable life

experience for all involved.”

indiaLeighton India’s Indore to Khalghat highway

project team has also reached out to its

community, taking part in a crucial

highway safety awareness campaign,

that aimed to educate road users.

Held over three days, the team joined

with local police representatives to visit

the communities and schools to deliver

key safety messages to coincide with

the opening of the new four lane

highway (NH 3).

Around 1150 people attended the

information sessions, which included

descriptions of key road safety signage

and a wide-scale awareness program in

regards to traffic rules and regulations.

Project HSE Manager Devendra Gaur

said that the community road safety

awareness sessions covered all aspects

of highway safety for the users.

“The communities took a ‘Highway

Safety Oath’ to commit to promoting

and practicing road safety around this

newly built highway,” he said. “These

sessions were designed to educate the

communities and children on the traffic

rules, improve the road safety culture

and understand the causes of road

accidents. “It was encouraging to see so

many people, who attended these

sessions and to know they walked away

with all the information they needed to

operate safety on the roads.” n

21

The Leighton offshore oil and gas

project for ONGC, known as the

Pipeline Replacement Project II (PRP II),

was awarded the 2008-09 HSE Award

for its commitment to a number of

HSE initiatives.

Leighton International Group HSE

manager, Tom Ord said the annual

award was given to project teams

who had excelled in a number of

criteria including health, safety and

environmental initiatives, performance

and community relations programs.

“At Leighton we pride ourselves on our

commitment to safety for all our staff,” he

said. “We do whatever it takes to ensure

HSE is implemented and supported

across the business and the PRP II project

is an excellent example of this,” he said.

He said the PRP II management

team had demonstrated committed

leadership through introducing programs

that encouraged strong support from

the workforce.

“They encouraged worker consultation

and participation, HSE recognition of

groups and individuals and undertook

an innovative sustainability program combined with an excellent workplace safety record has resulted in a leighton india project winning the leighton international health, safety and environmental award

india scoopssafety aWard

company news

a number of training programs,” he

said. “All of this culminated in no

serious injuries or environmental harm

on the project.

“The team should be congratulated

for their dedication to these important

sustainability initiatives that support the

ongoing success of the PRP II project

and Leighton’s business in India.”

PRP II Senior Project Manager

Senthil Kumar said in addition to its

safety initiatives, the project team also

carried out an important sustainability

program that was embraced by the

wider community.

“We worked to enhance the natural

environment by tree-planting on our on-

shore site,” he said.

“We also held health checks for

workers and their families, as well as the

local community, providing them with

access to important medical advice.

“It has been absolute teamwork and

the team’s attitude that have helped

PRP II project to achieve its set HSE

targets,” he said. n

“it has been absolute teamwork and the team’s attitude that have helped prp ii project to achieve its set hse targets”

22 company news

Leighton Holdings

Limited has reported a

reduced profit after tax

and minority interests

for the year of A$ 440

million (versus A$ 608

million last year). The

profit was impacted by a reduced

property development contribution and

previously flagged investment

impairments.

Chief Executive, Mr Wal King, said

that there were many positives to take

away from the year and the outlook for

the future.

“This is our third largest profit and

recorded in a period when many of our

peers and other businesses have

reported losses. Even with the investment

impairments the Group earned an

average return on shareholders funds

of over 20%,” he said.

annuaL resuLts

“Our work in hand remains close to

record levels at A$ 37 billion as at

30 June 2009 versus A$ 37.5 billion at

31 December 2008 and A$ 30.3 billion

at 30 June 2008. The order book was

boosted by the award of some A$ 25

billion worth of new work, extensions

and variations during the period.

“In addition to the A$ 37 billion of

work in hand at June we currently

have well over A$ 5 billion of additional

work in preferred status, including our

share of the major Melbourne

Desalination Project.

“Total revenue was up 26% to

A$ 18.3 billion (A$ 14.5 billion last year)

with revenue from joint ventures and

associates increasing by 19% to

A$ 5 billion. Our major markets by

revenue were infrastructure A$ 10.4

billion, resources A$ 5 billion and

building and property A$ 2.9 billion. “Some of the significant construction

projects awarded included the A$ 4.1

billion Airport Link Project in Brisbane,

the A$ 722 million Royal North Shore

Hospital in Sydney, A$ 1 billion for works

at the Gorgon Project in Western

Australia, which is expected to receive

final approval to proceed later this year

and A$ 3 billion for the Dubai Pearl,”

said Mr King.

“New mining contracts or extensions

were awarded at the Satui, Senakin and

Bayan FKP coal mines in Indonesia; the

Ukhaakhudag coal mine in Mongolia; the

Collinsville, Burton, Curragh North,

Moorvale and Peak Downs coal mines

in Queensland; the Duralie coal mine

in New South Wales and the Orebody Kedron Brook Busway Station, Airport Link, Queensland, Thiess and John Holland

leighton holdings reports annual profit of a$440m and a$ 37 billion of work in hand

23

23/25 iron ore mine in Western Australia.

“High levels of work in hand,

combined with significant spending by

Governments to stimulate economic

activity – both in Australia and overseas,

and a resurgence in growth of China, will

maintain our operating performance in

2010,” said Mr King.

“The Australian economic and social

infrastructure market is forecast to stay

at high levels, supported by Federal

Government spending. In transport,

projects to proceed include the A$ 3.2

billion Regional Rail Express in Vic, the

A$ 1.5 billion Hunter Expressway in NSW,

A$ 500 million of Federal funding for the

A$ 2 billion Northern Link project in Qld,

and 13 other projects of up to A$ 1 billion.

Victorian Desalination Plant, Thiess

“Australian iron ore and coal volumes,

together with Indonesian coal volumes,

are expected to continue to grow, driven

by the demand from China as that

country’s economic growth accelerates,

and other Asian markets recover. A

number of large Australian LNG projects

are progressing, with over A$ 32 billion

worth of projects committed offering

good construction opportunities,”

said Mr King.

“Across Asia and the Middle East,

growth is forecast to recover and there

should be a good range of construction

and mining opportunities in our core

markets. Hong Kong, Indonesia, Mongolia

and Abu Dhabi are the markets with the

most likely prospects in the short term.

“For the 2010 financial year, the Group

is confident that revenue will exceed A$

19 billion and expects a net profit after

tax of around A$ 600 million, subject to

any further investment impairments.

The result represents a similar level of

operating performance to the last year

and provides a good base for the Group

to resume profit and revenue growth in

2011 and beyond,” he said. n

“across asia and the Middle east, growth is forecast to recover and there should be a good range of construction and mining opportunities in our core markets”

24

HEAD OFFICELeighton international fZ LLcpo box 502656dmc #14, dubai internet cityoffice no. g01, g/f eib building no. 5alfa building, dubaiunited arab emiratest: +971 4 423 0300f: +971 4 427 8145

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old mgr film cityomr road, taramanichennai 600113indiat: +91 44 6667 4100f: +91 44 6667 4108

MALAYSIALeighton contractors (malaysia) sdn bhd14/f menara multi-purpose8 Jalan munshi abdullah50100 kuala Lumpurmalaysiat: +60 3 2035 1788f: +60 3 2693 5388

SINGAPORE Leighton Contractors(Singapore) Pte Ltd137, Telok Ayer Street#05-04Singapore 068602t: +65 6327 1978f: +65 6327 1969

SRI LANKALeighton contractors Lanka (pvt) Ltd3/f no 34, hunupitiya roadcolombo 02sri Lankat: +94 11 471 4772f: +94 11 471 4770

aL haBtoor Leighton groupHEAD OFFICEal habtoor Leighton grouppo box 320, dubaiunited arab emiratest: +971 4 285 7551 f: +971 4 285 7479

KUWAITLeighton kuwaitpo box 2118safat 13022kuwaitt: +965 4814355 f: +965 4847197

QATARLeighton contracting (qatar) wLLal shaqab equestrian centrenadhee al rayyan street, old rayyanpo box 11346doha, qatart: +974 481 7945 / 481 5504f: +974 482 1431

al habtoor engineeringenterprises co. LLc - qatararea office, po box 22478doha, qatart: +974 413 0044 f: +974 413 0055

Leighton internationaLUNITED ARAB EMIRATESgulf Leighton LLcpo box 123065dubai, united arab emiratest: +971 4 285 7551f: +971 4 285 7479

al habtoor engineeringenterprises co. LLc - dubaipo box 320, dubaiunited arab emiratest: +971 4 285 7551f: +971 4 285 7479

Leighton contracting (abu dhabi) LLcpo box 94267office 1202c2 building, seventh streetal bateen, abu dhabiunited arab emiratest: +971 2 667 5591f: +971 2 667 5592

al habtoor engineering enterprises co. LLc - abu dhabipo box 4284, abu dhabiunited arab emirates t: +971 2 626 3114f: +971 2 626 3073

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