The Big Project

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JUNE 2012 PLUS INTERMAT PARIS QATAR TENDER REPORT EXCLUSIVE: FAMCO FINANCIAL THE TOP 5 MOST EXPENSIVE NEW INFRASTRUCTURE PROJECTS IN THE GCC INFRASTRUCTURE ABC FROM THE REGION’S MOST EXPENSIVE NEW PROJECTS, TO THE FINANCIAL MODELS AND MACHINES REQUIRED TO BUILD THEM, THE BIG PROJECT LOOKS AT ALL THINGS INFRASTRUCTURE

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The Big Project Your one-stop guide to construction developments in the region, The Big Project is the Middle East’s leading monthly B2B title for the construction industry.

Transcript of The Big Project

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JUNE 2012

PLUSIntermat ParIS

Qatar tender rePortexcLUSIve: Famco FInancIaL

tHe toP 5 moSt exPenSIve neW InFraStrUctUre

ProJectS In tHe Gcc

infrastructure aBcFrom the region’s most expensive new projects, to the Financial

models and machines required to build them, the big project looks at all things inFrastructure

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JUNE

Contents

43

24

REGULARS

Editor’s letter 6

News bulletin 9

In profile 20FAMCO managing director Paul Floyd

on the dealer’s new in house financial

services

Career ladder 29Victaulic’s new product development

manager on meeting regional

objectives

Roundtable: INTERMAT special 46

The Big Project roundtable at

INTERMAT Paris, with organisers,

exhibitors, and Abu Dhabi

Department of Economic

Development

Supplier news 56

Tenders 65

Diary 70

FEATURES

16 News analysisThe story behind the statistics that

predict Qatar could be heading for

economic trouble

24 Business briefDoosan on its top three dealer

ambition and the benefits of trade

ties with Korea

33 Cover story: Financing Arabia’s futureThe region’s top projects by

cost; expert advice on budget

management; and financing models

43 PMV focusKanoo general manager Bob

Jennings on the downside of up

turns

59 Supplier profile Manazil Steel Framing on EcoMag

and what it means for new

construction methods

62 Special feature: LightingShining a light on health and safety

with Jersey Group’s Irish start-up,

Lightstep

46

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PublisherDominic De Sousa

Chief operations officerNadeem Hood

Associate publisherLiam [email protected]: +971 (0)4 440 9158GSM: +971 (0)55 310 9256

Editorial directorMelanie [email protected]: +971 (0)4 440 9117 GSM: +971 (0)56 758 7834

ReportersAnoop [email protected] [email protected]

Online editorGavin [email protected]+971 (0)4 4409118

Business development managerJunaid [email protected]: +971 (0)4 440 9150GSM: +971 (0)50 104 7864

Business development managerRhiannon [email protected]: +971 (0)4 440 9152 GSM: +971 (0)50 554 0116

Marketing ManagerCarole [email protected]: +971 (0)4 440 9157 GSM: +971 (0)55 978 8605

Team AdministratorLeila El [email protected] GSM: +971 (0)50 912 7459

Designer/PhotographerMarlou Delaben

PhotographerCris Mejorada

WebmastersTroy MaagmaJerus King BationErik BrionesJoel Azcuna

Printed byPrintwell Printing Press LLC

Published by

Head OfficePO Box 13700Dubai, UAETel: +971 (0)4 440 9100Fax: +971 (0)4 447 2409Web: www.thebigprojectme.com

© Copyright 2012 CPI.All rights reserved.

While the publishers have madeevery effort to ensure the accuracy of all information in this magazine,they will not be held responsiblefor any errors therein.

Melanie MingasEditor

In times of austerity and recession, the most common and accepted reaction is to cut back: trim budgets,

shrink departments, prepare for losses. Not here.

As the Eurozone crisis lurches from ‘disastrous’ to ‘worldwide threat’ status, in the Middle East it’s business as usual. Talk of billion dollar profits and regional expansions roll of the tongues of C-suite executives, and record breaking infrastructure projects in the GCC have created their own $500 billion economy.With three years spent dissecting and analysing the crash of 2008, talk is now turning to the future.

Having weathered – and found opportunity in – worldwide recession, private and public sector entities say they are now positioned to seize the opportunity economic stability will bring. In their preparation, these businesses are turning attention away from core business models and core geographical markets.

In this issue, FAMCO managing director Paul Floyd explains the idea behind the company’s new finance facility and Doosan’s Gaby Rhayem

shares the dealer’s ambition to become top three by 2015.

This issue also carries a run-down of the five most expensive new infrastructure projects in the region, with a full top 20 list of the most expensive active projects on www.thebigprojectme.com.But not all news is good news. This month has also seen the publication of a tender price index predicting Qatar’s World Cup projects could bring about a crisis that will see a return to the days of supply/demand imbalances and spiralling material prices.

By the same token, domestic solvency isn’t always such a great thing either. With seemingly infinite budgets and relatively secure income streams across the GCC, experts say many governments are failing to utilise alternative financial models; locking out private sector money and expertise, and racking up huge bills on projects that are rarely audited for feasibility.

There is no doubt that market sentiment is growing in strength but worldwide, those markets are still fragile and the overriding message seems to be that we must walk before we can run.

“time to listen”

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NEWS BULLETINLeIGHton “not PreParInG to SHed” HLGL eighton Holdings, the Australian part-

ner of Habtoor Leighton Group (HLG) has confirmed the UAE based joint ven-

ture, which is currently working on Dubai Pearl among other projects, will not dissolve its partnership with Habtoor Group, despite recent comments from Leighton’s   chairman claiming that it should never have got into the partnership.

Stephen Johns (pictured) was quoted by The Australian Financial Review earlier this week as saying: “In hindsight, no, we’re not happy with [Al Habtoor Leighton], we should never have gone into it.”

Johns, chairman of Australia’s largest con-struction firm, Leighton Holdings, told the publication that Leighton had suffered losses of $152.7m in the six months to the end of December 2011, after the JV struggled to col-lect payments for projects in the region.

Habtoor Leighton said it expects to collect only half of its unpaid legacy receivables over the next two years.

A spokesperson from Leighton Holdings has since told The Big Project: “We’re work-ing hard to recover those outstanding monies owed to us on a number of projects.

“We’ve employed extra resources to build the relationships which are critical in the Middle East.”

“As we get recovery and closure of these old projects then the weight swings towards new Habtoor rather than old legacy Habtoor. So if we’re retiring debt, then the business is cash flow positive and profitable.”

Leighton’s spokesperson has also denied international media reports, published since The Australian Financial Review article, that claim the company is “preparing to shed” HLG.

“Leighton is not ‘preparing to shed’ HLG. We said at yesterday’s AGM that part of our strategy deals with the ongoing business.

“This is to have a HLG ‘IPO’ ready by 2016. This is about ensuring that the joint venture has the right structure, governance and pro-

also  unveiled a new corporate identity.“HLG has won a number of new projects

which are typical of some of the new work opportunities the company is pursuing in the region and reflected the HLG’s growth strat-egy to expand into new geographic mar-kets.  Our growth strategy is based on diversifying our workload by both geography and work type with good quality clients who value our services,” the spokesperson said.

Habtoor Leighton Group has not yet released an official statement on Johns’ comments.

Mitigation after chairman says “we should never have gone into” JV

jects to make it a sustainable business (mov-ing forwards) in the future.”

The HLG venture was established in 2007 and recent project wins in the region have included a $169m deal for mine-related infra-structure for the Ma’aden Alcoa Aluminium JV in Saudi Arabia;  a $515m  contract for the largest integrated hotel complex in the region on the site of Dubai’s Metropolitan and a $290m  contract for the construction of the first phase of Doha’s North Gate Mall and office complex. Earlier this year, the company

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FM software under locally procured licenses; and referral clients known to RFM.

The franchisee will be responsible for staff-ing the operation and providing local con-tracts. Franchising fees and annual profit percentages will be payable to RFM.

“I have had mixed reports from global players on the idea, but if the franchising model can work for other industries why not for FM?”

“We are floating the franchise model for new markets currently, and that process began eight months ago,” Khatwani continued.

“This will take care of a major gap in the industry. FM is such a big sector to teach, so

Q atar’s construction programme could face “cost overruns and massive delays”, due to the European financial

crisis and regional supply issues, according to a Tender Price Index (TPI) forecast.

Considering more than 200 tender docu-ments during a three year study, TPI authors MEED created a formula by simulating popu-lation growth against GDP to identify corre-lations with tender prices.

“We are looking at all the project announcements, many of which are govern-ment driven, and the indication is that we will see a 17 – 18% increase in costs,” MEED general manager Emil Radameyer told The Big Project.

“That 18% is conservative – it could be much higher,” he continued.

Simulations were also made for materials. A cement deficit of 3 million tonnes per annum (MTA) is likely by 2015, considering

Qatar’s current production capacity of 6MTA. “We have highlighted the pit falls and it’s

reasonably early enough for people to take action. Unless they secure supply at a reason-able market rate there will be delays and cost over runs. The powers that be need to take action,” Radameyer warned.

It’s not all bad news – the void left by Qatar’s under capacity could pave the way for other regional companies to supply the mar-ket. However, if the financial situation remains unchanged in Europe liquidity could be affected, hindering private sector access to the market.

“With the European crisis worsening, it could have a negative impact on investments and the private sector will not get involved in the construction boom in Qatar,” Radameyer added.

The research was released only days ahead of the IOC’s announcement of potential 2020

Olympic hosts. Qatar missed out on the final shortlist, which includes Tokyo, Istanbul and Madrid.

“Qatar cannot wait until that final announcement is made before they start to move on projects; they cannot afford massive delays on this,” Radameyer commented.

MEED previously applied the same model to the UAE and currently has a team analys-ing Saudi Arabia.

Turn to page 16 for a full analysis of the situation

Fm franchise model established for african marketReliance FM to provide opening for FM start ups in Africa

Qatar crisis: “delays and cost overruns” likely by 2015Market analysis predicts negative effects of Euro and production capacities

having this model is a smart move for that guidance,” he added.

Formerly working for CB Richard Ellis, Khatwani established reliance FM in Dubai in 2003, ahead of his prediction that the real estate market would soon shift its focus from construction to maintenance.

“FM has always struggled to find an iden-tity in construction but recently that has changed and people are becoming aware that a huge percentage of a project’s budget is spent on actually maintaining a building after it is completed.”

I t’s one of the most popular business mod-els on the planet, immortalising golden arches and six inch sandwiches, amongst

other things. Now one Dubai-based FM firm is looking to capture the same success for its overseas expansion programme.

Reliance FM (RFM) has embarked on an international growth strategy by expanding its business under a franchise model in Africa.

“For me, this is about making something happen that nobody has thought about,” chief executive Dilip Khatwani commented.

RFM will provide opportunity to busi-nesses looking to break into Africa’s FM market, by supplying full branding; a trained FM professional under a two year agreement;

3 MTAQATAR’S PREDICTED CEMENT DEFICIT BY 2015 IN MILLION TONNES PER ANNUM

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d oosan Infracrore regional direc-tor Gaby Rhayem has pledged to drive market share across the

company’s regional operations, to a level that will compete with Caterpillar and Komatsu.

Seizing on the benefits posed by its Korean heritage, Doosan aims to be a top three dealer by 2015, with staggered pro-gress taking the company from top 10 to top five during 2012. Since 2011, the dealer has already jumped 12 places.

“The company has a big vision and we have a forecast,” stated Rhayem.

“We are talking to management about our targets and plans at the start of each business year. We talk to our distributors in each region, based on the projects we read about, and they give us feedback on the volume of the market and our

business and unit directors will see how much share we can take of that,” he added, also revealing the wider Doosan Group reported profits of US $32 bil-lion in 2011.

The UAE is the second largest invest-ment destination for South Korea and its largest importer in the GCC. Only weeks into Q2 2012, trade values are predicted to surpass last year’s US$20 billion.

“We are very realistic. There is some-thing to learn from the technology and IT business. A couple of years ago, every-body wanted to buy Japanese products and American. You look today and it’s LG and Samsung, the Korean firms who are number one,” he concluded.

Turn to page 24 for the full interview with Gaby Rhayem

t he Iraqi construction and housing minister has said the government is looking for inves-tors in housing and infrastructure projects, as

he extended an invitation to delegates at the Arabian World Construction Summit 2012 in Abu Dhabi to look at potential opportunities for projects and investments in the country.

Iraq plans to double its oil production to six million barrels per day, by 2016, to fund the boom and has told potential investors they can expect to see a return then.

Iraq needs to build 2.5m housing units and 7000km of new roads by 2016, Mohammad al-Dar-raj said. The government is set to spend $2bn over the next two years on social housing projects and another $2bn on low cost housing, in addition to $5.8bn on roads, he explained.

Although the country’s total 2012 budget is $112bn, al-Darrajsaid that no budget can meet the infrastructure needs of Iraq, urging investment in the country.

K uwait’s civil aviation directorate announced on May 22, that the Gulf Arab state would spend $6bn to expand its international air-

port to handle 13 million passengers by 2016.The current passenger terminal was built in 1980

and has the capacity to handle around seven million passengers a year, said Fawaz al Farah, speaking on the sidelines of the airport show in Dubai. He added that capacity would be increased further to 25 mil-lion by the year 2025.

Kuwait’s national airlines and the privately owned, low-cost Al Jazeera Airways currently oper-ate out of the airport and al Farah said that in 2011 more than 8.5 million passengers passed through the gates. He added that more than nine million passengers are expected this year.

The plan is to expand the passenger terminal to occupy 710,000m2 and will cost $3bn to do so. The other $3bn will be spent on other projects at the airport, including widening the runways, building a new control tower and a new cargo town, al Farah said in a report carried by the Associated Free Press.

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Investor invitation from Iraqi ministerIncreased oil production will fund construction boom

Kuwait plots $6bn airport expansion13 million passenger capacity by 2016

“We will be top 3 by 2015”Doosan regional director pledges to compete with Caterpillar and Komatsu

$32bDOOSAN GROUP PROFITS REPORTED FOR THE 2011 FINANCIAL YEAR

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Q atar’s Railway Development Company said on May 22 that it would invite the first Requests

for Proposals (RFPs) for the under-ground work of the Qatar Rail Network project from June of this year.

An official for the company, who did not wish to be named, told Zawya that although this was a slight delay from the expected date of tendering in April 2012, more than 70 companies had already expressed their interest in bidding for various parts of the metro project, of which 35 have pre-qualified.

He added that any company intend-ing to participate in the bidding process would require a local partner.

The $42.9bn metro system will be built in four phases. Phase 1A aims to be ready by 2019, the official said. This

would involve 52 kilometres of track and 26 stations, he explained. Most of the track would be laid underground except for the suburban districts.

Qatar had aimed to complete the first phase of the railway in time for the 2020 Olympics, but has not been shortlisted to host the event. The country has already been on an accelerated develop-ment program to complete the metro project, along with other necessary infrastructure, in time for the 2022 FIFA World Cup.

The project aims to link up Qatar’s various planned railways into a ‘comprehensive and consolidated’ national railway system. This is part of the government’s plan to connect Qatar to the rest of the GCC, the report added.

a ccording to figures released by The World Steel Association (Worldsteel), the global growth

of crude steel production in April 2012 rose by 1.2% year-on-year. The rise takes the total production figure to 128 million tonnes, as steel manufacturers adjusted their output to weaker demand and falling prices.

Last month, Worldsteel forecast global steel consumption growth to slow this year, on weaker economic growth in top consumer China and

uncertainties about the debt crisis in the euro zone.

Steel consumption generally peaks in the northern hemisphere spring, as construction and manufacturing activity quickens in the warm, dry months preceding the summer break.

Steel output in China, the world’s largest producer and consumer of the alloy, rose by 2.6% to 60.6 million tonnes in April, the data showed. bucking the average global trend by more than double.

GLobaL SteeL ProdUctIon UP 1.2% In aPrIL 2012China bucks average global trends with 2.6% rise

Qatar to InvIte FIrStrFP For raILWaYLocal partner required to bid

tHe neWS aS It HaPPened From ‘arabIan WorLd conStrUctIon’

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Underwater hotel likely for dubaiThe Water Discus Hotel will be the largest of its kind

Labour union for Qatar construction workersMoL also redefines sponsorship of foreign workers

a semi-submerged hotel in Dubai, UAE has been given the green light. The Water Discus hotel is expected to be

the largest of its kind in the world.It will consist of two disc shaped structures

– one above the surface of the water and one underneath. The concept is the brainchild of Polish firm Deep Ocean Technology (DOT), in collaboration with researchers from Gdansk University of Technology.

Last month, Dubai World’s ship building subsidiary, Drydocks World, signed an agree-ment with BIG InvestConsult to build the

hotel in Dubai. Construction times and budget are currently undisclosed.

The underwater segment of the hotel will comprise of 21 rooms. It will be submerged ten metres below the surface of the sea. Large windows in the rooms will offer views of coral reefs, fauna and animals of the Arabian Gulf.

Safety is a primary concern and the under-water discus will automatically rise above the surface of the water in case of danger.

Satellite discs with positive buoyancy will be detachable and act as lifesaving vessels if necessary.

t he rights of workers in Qatar are to be protected under a new labour union, announced today by Qatar Ministry of

Labour. According to media reports, it will be the Gulf country’s first such body. The Labour Union will be elected and independ-ent according to the Ministry and will cover construction workers of all nationalities. The Union will have the right to “receive the com-plaints of workers and protect their rights”.

“Planning for the World Cup is not restricted to construction and infrastructure improvements, but includes addressing work-ers’ rights,” said deputy minister of labour, Hussein Al Mulla.

Last week it was reported that sponsorship of foreign workers is to be scrapped as the recruitment of one million workers ahead of the 2022 World Cup begins.

“There is an intention to cancel the spon-sor system and replace it with a contract between the worker and the employer,” Al Mulla is quoted as saying.

dual Qatar/ KSa boom will send business eastStronger, quality Chinese market to fill local shortfall, says Kanoo GM

t he region may be preparing for a joint construction boom in Qatar and Saudi Arabia, but Chinese manufacturers will

be the main beneficiaries, according to Kanoo GM Bob Jennings.

Despite being on the cusp of an unprece-dented – and much anticipated – dual boom, the effects of global economic conditions will inhibit company’s ability to supply the Qatari and Saudi Arabian machinery markets, pav-ing the way for Chinese suppliers and manu-facturers to fill the void left by local and western brands.

“We [the industry] will eventually come to a situation where we are not able to supply the demand, because we will not be in a position to take the risk to put a lot of money into a market, just in case things don’t go the way we plan,” Jennings told The Big Project.

“We are ordering more stock, but manu-facturers are coming to a point where their [supply] chains are becoming stretched and delivery times are extending. The industry will invariably end up in the same situation we ended up in between 2004 and 2006,” he added, continuing: “China will come in and start to fill the market gaps because we will

not be able to manage it.”With significant improvements to the qual-

ity of goods, compared to those supplied prior to 2008, Chinese companies are also increas-ing their stake in the region’s oil and gas industry and China-UAE trade in particularly has experienced a 35% YOY growth over the last decade, according to figures published by Messe Frankfurt.

In recent months, Chinese brand LuiGong has opened a dedicated Middle East base, which now accounts for 10% of LiuGong’s international revenues – and XCMG has reported huge market shares in the region.

“Asian companies this time will come with a higher quality product and long term mind-sets. I think that next time the Chinese will come out with a better reputation and they will get an even bigger foothold in the region than the last time round.

“That will be at the expense of the western and Japanese companies and it will be diffi-cult for them to recover,” Jennings added.

Turn to page 43 for the full interview with Bob Jennings

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Page 15: The Big Project

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Qatar: trouble ahead?MEED general manager emil rademeyer explains the company’s recently released Tender Price Index (TPI) for Qatar and what it could mean for regional resource supply and construction costs

While the authorities deal with the disappointment of Qatar no longer being in the running for the 2020

Olympics, in reality it may not be an entirely bad thing. Last month, research teams at MEED published data that suggests the Gulf state’s sporting ambitions could fundamen-tally change the market dynamics of the entire region, and not for the better.

The forecast value of projects to be awarded in Qatar this year is more than $15bn, and according to the research that will double over the next two years and peak in 2017, at around $40bn.

The result? According to the authors “this vast and rapid capital investment will strain the resource supply chain to breaking point”.

Cement supply will experience “acute defi-cits” by 2013 and will hit a 3 million tonnes per annum deficit by 2015; a

combination of infrastructure shortfalls and restrictive legislation will rule out the possibility of importing vital resources; there are acute shortages of skilled labour; and construction costs will rise by a “conservative” 18% before the private sector is even involved.

“We are predicting an 18% cost increase in five years, which isn’t that bad, but the point is if the private sector comes to the party it can get ugly. The fact that there also aren’t enough materials and resources means there are a lot of red flags going up,” he adds.

The report is the result of a three year study; considering data from more than 200 regional projects to calculate formulas and trends upon which to make predictions. The index starts in 2012, and predicts the future trends for costs in and around Doha up until 2017.

Assuming all the projects that are currently in the pipeline go ahead according to plan,

3 yearsAVERAGE MAxIMUM TIME TO BUILD A STADIUM

“vast and rapid capital investment will strain the

resource supply chain to breaking point”

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researchers calculated the amount of materials that would be needed and then compared these figures with actual capacities.

The study may appear comprehensive, but the data analysed does not include private sector investment, which Rademeyer admits will “change the entire picture”.

“Next year we will know much more than we do now in terms of where the industry will be able to deliver and what the impact of that will be. I imagine that we will see a lot of private sector investment, 18% can easily become 40% or whatever. Things are going to change, you need to account for that,” he warns.

While Cityscape Qatar was held last month, official figures are yet to be released regarding the amount of business done and the number of visitors present.

However, considering that Rademeyer’s anal-ysis claims 100,000 people will be required to

staff the games themselves, the real estate indus-try will naturally see an increase in activity, pav-ing the way for the private sector to cash in on the burgeoning market.

Private sector involvement in the UAE was a primary contributor to a 90% rise in construc-tion costs over seven years and with predicted deficits in vital materials and tight completion deadlines, financial returns on projects are already under threat.

“From the professional’s perspective, the con-versation is on risk and that is dealt with in two ways from the construction phase, it’s either contingency where you allow for unknowns, or escalation,” Rademeyer says, adding that plan-ning for either outcome is “heavily neglected”.

Behind the scenesWhile he admits there are conversations and planning strategies currently being formulated

behind the scenes, Rademeyer advises that plan-ners adopt a reverse engineering method in their plans that also considers the impact of project delays and maps a timeline for all project milestones, reaching back from the required completion date.

“If Qatar is setting aside $60 billion to do projects A to Z, is it going to be enough? They might say a stadium of this size will cost you X, the point is by the time that stadium is finished in 2017, it might be X plus 30%. So how does that affect your investment plan? The govern-ment might decide on this basis they can only do A to whatever, in terms of project invest-ment, so it’s about bringing balance to the mar-ket and reality,” he urges.

“If you start a project today it might cost you $100m, if you start next year with tendering and design and whatever else and it’s a 36 month project, you’re going to need another 23% on

100,000PEOPLE WILL BE REQUIRED TO STAFF THE WORLD CUP

6.2MTACURRENT DOMESTIC CEMENT PRODUCTION CAPACITY IN QATAR

$15bnFORECAST VALUE OF PROJECTS AWARDED IN QATAR DURING 2012

“We are saying 18% in five years, which isn’t that bad, but the point is if the private sector comes to the party it can get ugly. the fact that there also aren’t enough materials and resources means there are a lot of red flags going up”

Page 18: The Big Project

xx

xx

xx

xx

| xxxxxxxxxxad

neW

S an

aLYSIS | TEN

DER PRICE INDEx

that $100m, just to finish the project.”If the adverse affects of price increases and supply and demand

imbalances do hit Qatar, the problem will not be localised. Conducting similar studies on the UAE and Saudi Arabia, Rademeyer says regional dynamics will require heavy investment if population increases — compounded with current power and water shortages — are going to be addressed before they pose even greater problems; a particularly topical issue considering the Arab Spring.

Yet despite the warnings, the overall message only confirms a sharp increase in regional construction activity, and while strict, realistic and balanced planning will be needed to make the finish line, there will be a significant increase in opportunity across the region.

“Starting with the end goal in mind and keeping in mind the resources that are required, we are able to calculate a lot of the resource balancing that is required. It’s impossible to have a programme for a project that works out exactly how you planned it, but at least you can bolt on certain models where you can see what the impact would be if you delay a project by six months,” Rademeyer adds.

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MENA region plans to invest US$250 billion in the power sector over the next five years

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100,000PREDICTED FIGURE FOR GDP PER CAPITA IN 2012

$120bnESTIMATED COST OF HOSTING WORLD CUP GAMES

Page 19: The Big Project

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Page 20: The Big Project

| www.thebigprojectme.com20

In Pro

FILe | FAMCO

On track to achieve a record year, Famco managing director Paul Floyd grants The Big Project a preview of the dealer’s new in house financial services

Famco financial

“there won’t be many large fleets

paid for with surplus amounts

of cash. most companies are financing that

somehow”

W hen Paul Floyd spoke to The Big Project in December 2011, the company was cele-brating a newly struck exclusive dealer-

ship with Volvo Construction Equipment in Saudi Arabia, following the acquisition of Al-Rehab Equipment and Machinery Company.

This year, Famco will open branches in Qatar and Oman; its fifth UAE branch at Dubai Investment Park; and will introduce in-house financial services for its machinery customers.

“When we put all this together, it’s looking very, very promising,” comments Floyd, who further shares that Famco is currently supplying to “just about any project that you can think of”.

In reaching out to these new markets, Famco will increase its regional branch network from 12 to 25 by 2015; increase its product portfolio; and crucially,

will also begin operations in financial and insurance services, by working with financial institutions and the financial arm of Al Futtaim’s sister companies.

Describing the diversification as offering “another piece of the solution”, Floyd says: “There won’t be many large fleets paid for with surplus amounts of cash. Most companies are financing that somehow through credit lines or they may have or new credit links they negotiate. So we offer another credit line option for our customers and make that part of the package.”

Reporting a market that is increasing in sophisti-cation, Floyd says smart fleet management is demanding tailor made and comprehensive solu-tions. “You always have to understand what your customers want and need and we want to be pioneer-ing the way in our offering of a total solution concept.

Page 21: The Big Project

www.thebigprojectme.com | 21

In Pro

FILe | FAMCO

“I think that changes the way we sell; we’re not just there to sell a machine, we’re there to tailor a solution that fits their requirement. It may not be the cheapest from day one but over a life time it will give the greatest value for money,” he explains.

Meeting needsAs anybody who has worked on a project will know, Famco is far from the first to fill the vac-uum left by financial institutions, or indeed offer credit facilities.

This facility will cater to the needs of truck, bus, construction equipment, generator and compressor customers in the transportation, construction, oil and gas, manufacturing, ware-housing and marine sectors.

Striving to be “the most customer focussed supplier in the region”, Floyd explains that Famco Financial Services “further solidifies the relationship with customers and principals that we have built over many years”.

Options can be Sharia’h compliant and capable of meeting the needs of an “evolving and ever- demanding” market.

“This facility takes our customer service one step further and helps customers free up their cash flow to get the machines they need through our multi bank approach,” explains Floyd.

Boom timeFamco’s expansions and growth appear to be bucking accepted market trends; while the majority of companies grow during strong eco-nomic times, this expansion didn’t begin until well into a world-wide recession that has flawed a number of international powerhouses, not to mention a number of the dealer’s competitors.

“I don’t think we were any different to any other company in the Emirates from 2006 to 2008, in that we had such a boom in our domestic market it was as much that we could do to keep up with the pressures of the growth here; everybody was struggling to keep up with the demand.

“I think now that we have been through the worst of the downturn we are coming out in a really positive way, we just don’t see that enor-mous spike coming again anytime soon. So I think it’s a strategic decision to look at what we have done here and see if we can do it

“I think that changes the way we sell; we’re not just there to sell a machine, we’re there to tailor a solution that fits their requirement”

Page 22: The Big Project

| www.thebigprojectme.com22

ProFILe | AL FUTTAIM

elsewhere, see where are there are opportuni-ties,” he continues.

Counted among those opportunities cur-rently are the ambitious plans in Saudi Arabia, where product launches will be driven by unique geographical needs, rather than recre-ating templates because they were successful in other markets.

Additionally, Saudi Arabia is a country not only in need of construction vehicles but power also; a demand that has driven growth in the generator branch of the business, par-ticularly for Himoinsa machines.

“This can only be positive for our employees as it gives people greater career opportunities. All vacancies are advertised internally, so if you want to go to Saudi Arabia or Doha or Muscat or Abu Dhabi, people have the chance to develop and we retain our talent,” Floyd explains.

Home marketFamco’s second major announcement over the last month is the launch of a new branch in Muscat, in the Sultanate of Oman.

During an inauguration attended by industry leaders, Floyd commented: “Oman’s vision to

invest in its infrastructure has heightened con-struction activity in the country. Our aim is to set a new benchmark here and be part of this exciting vision. Thanks to our new facility in Muscat, and our highly qualified team, we very much look forward to the opportunity of devel-oping our operations in Oman.”

The new market will provide another distri-bution channel for staple brands Linde Material Handling Equipment; Merlo Telescopic Handlers; Ingersoll-Rand Industrial Air Compressors; MASE Marine Generators; Hart and Nassau Industrial Doors; Stertil Docking Systems; and Bott workshop and in-vehicle Storage Solutions.

The icing on the cake is the inauguration of the fifth branch in Famco’s home network. A “state of the art” new 25,000sqm facility in Dubai Investment Park (DIP), due for inaugu-ration by the end of June.

The DIP base will have an adjacent PDI cen-tre for the UAE that will become the primary storage and PDI centre for equipment.

“The centre has been designed by us with the help of our principals; it will have the latest technology throughout and IT systems; brand new and built exactly for purpose.

“Initially we will have around 100 people based there, and the main workshop facilities will remain here but that will grow and proba-bly double quite quickly,” Floyd predicts.

“I think the general message is watch this space because we haven’t finished yet.”

“the centre has been designed by us with the help of our principals; it will have the latest technology throughout and It systems; brand new and built exactly for purpose”

Page 23: The Big Project

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Page 24: The Big Project

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bUSIn

eSS brIeF | DOOSAN

The UAE is the second largest investment destination for South Korea and its largest importer in the GCC. Only weeks into Q2 2012, trade values are predicted to surpass last year’s US$20 bn. The Big Project speaks to Korean equipment dealer Doosan about its time in the Middle East and the plans to seize opportunities posed by its native market

crouching bobcat, hidden tactic

“this year we expect around 15 to

20% growth in the construction sector

generally across the middle east”

a host of dizzying figures are flooding the media concerning trade relationships between Korea and the UAE.

According to data shared by the South Korean Minister of Strategy and Finance, Bahk Jaewan, Korea’s direct investment to the UAE stood at US$ 1.24 billion by 2011 and in 2012 it is predicted that trade values between the two countries will surpass last year’s $20 billion by around $2 billion.

Since the 1970s, Korean companies have been claiming a large part of the Middle East and Africa’s oil and construction markets, at times flooding the

region with investment and equipment. The most recent example is the Korean consortium appointed to build and operate Abu Dhabi’s four nuclear reactors, which last month received significant – albeit indirect – financial state support.

Today, says Doosan Infracore district manager, Jae Ho Kim, the role of Korean companies in regional construction is changing as they move to become sub-vendors and carry out projects for prime contractors.

The shift is paving the way for myriad opportuni-ties for Doosan Infracore. “The company has a big vision and we have a forecast,” asserts regional

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bUSIn

eSS brIeF | DOOSANEffective structure For Doosan, Dubai is the hub of a regional net-work that spans Pakistan to Libya via 15 Middle East, Levant and North African countries. Each geographical territory has its own exclusive dealer covering up to three brands with the only exception being Saudi Arabia, where each brand has its own dealer.

Already responding to a marked increase in demand, the Jebel Ali based regional head office in Dubai has been re-structured to centralise operations and assign each of the office’s 14 employees to specific tasks in customer service, credit, parts and management.

“This year we expect around 15 to 20% growth in the construction sector generally across the Middle East,” reports Kim, with Rhayem adding: “This market isn’t being tar-geted for fun. Markets need to invest a lot but when the political and economic situation is quieter I believe we can return to the same levels of business we saw in 2007 and 2008.

“Everybody is confident and there are a lot of projects on hold ready to go back on the table.”

Primarily naming Libya and Egypt, there are also hopes that former strength seen in the Syrian market will soon be able to return. On the downside, Rhayem comments Kuwait’s inflation “is becoming a big issue” and that Iraq has potential, but in reality doesn’t have any actual projects to be executed.

Arming for the upturn and a strong battle against its competitors, Doosan has this year showcased a number of new products, designed for the regional construction and mining mar-kets, at international trade shows.

These have included a new wheel loader spe-cifically for the MEA region; a new ADT dump truck; excavators, Bobcat machines, compres-sors and generators.

“It shows the dynamic of the company to that we always propose a solution to our customers,” Rhayem comments, naming these as oil efficient and low maintenance equipment.

“We are very realistic. There is something to learn from the technology and IT business. A couple of years ago, everybody wanted to buy Japanese products and American. You look today and it’s LG and Samsung, the Korean firms who are number one,” he concludes.

Gaby Rhayem also participated in The Big Project roundtable discussion held during Intermat Paris. Turn to page 48 to read the conversation.

“We are very realistic. there is something to learn from the technology and It business”

director for the Middle East, Gaby Rhayem. “We are talking to management about our tar-gets and plans at the start of each business year. We talk to our distributors in each region, based on the projects we read about, and they give us feedback on the volume of the market and our business. Then unit directors will see how much share we can take of that,” he adds, also reveal-ing the wider Doosan Group reported profits of US $32 billion in 2011.

The Arab Spring may have hit market fore-casts, even before company operations in Iran were suspended in 2010, but in combating the uncertainty experienced in the face of ongoing political and economic developments, Doosan is relying on its spies on the ground – its network of regional dealers – to feed back the informa-tion that paves the way for its heady ambitions.

In the US and Europe, Doosan has held its number one market share for six consecutive years. In the Middle East, having already jumped 12 places over the last year alone Doosan’s current target is to move from being a top 10 equipment dealer to one of the top five; enabling a break into the top three by 2015.

A top three ranking will subsequently pave the way for Doosan to compete with Caterpillar and Komatsu.

$1.24 bBILLION KOREA’S DIRECT INVESTMENT TO THE UAE TO DATE AS OF 2011

$20 bKOREAN/UAE TRAVE VALUES IN 2011

2015DOOSAN’S DEADLINE TO BE A TOP THREE EQUIPMENT DEALER

“this market isn’t being targeted for fun. markets need to invest a lot but I believe we can return to the same levels of business we saw in 2007 and 2008”

BELOW: Gaby Rhayem.

ABOVE: Jae Ho Kim.

Page 26: The Big Project

BahrainYusuf Bin Ahmed Kanoo WLLP.O.Box: 45, Manama KSAPhone: +973 17738200 Fax: +973 17732828E-mail: [email protected]

www.kanoogroup.com/kanoomachinery

DammamP.O.Box: 37, Dammam 31411Phone: 03 857 1265 / Fax: 03 857 7139E-mail: [email protected]

Kanoo Machinery LLCP.O.Box: 290, Dubai, U.A.E.Phone: +971 4 3378400 / Fax: +971 4 3373660E-mail: [email protected]

RiyadhP.O.Box: 753, Riyadh 1421Phone: 01 491 4624 / Fax: 01 491 4404 E-mail: [email protected]

JeddahP.O.Box: 812, Jeddah 21421Phone: 02 263 6171 / Fax: : 02 263 2979E-mail: [email protected]

Gulf liftinG Rental Co. ltd.

• Sales• Rentals

• Spare Parts • After-Sale Service Support

Page 27: The Big Project

BahrainYusuf Bin Ahmed Kanoo WLLP.O.Box: 45, Manama KSAPhone: +973 17738200 Fax: +973 17732828E-mail: [email protected]

www.kanoogroup.com/kanoomachinery

DammamP.O.Box: 37, Dammam 31411Phone: 03 857 1265 / Fax: 03 857 7139E-mail: [email protected]

Kanoo Machinery LLCP.O.Box: 290, Dubai, U.A.E.Phone: +971 4 3378400 / Fax: +971 4 3373660E-mail: [email protected]

RiyadhP.O.Box: 753, Riyadh 1421Phone: 01 491 4624 / Fax: 01 491 4404 E-mail: [email protected]

JeddahP.O.Box: 812, Jeddah 21421Phone: 02 263 6171 / Fax: : 02 263 2979E-mail: [email protected]

Gulf liftinG Rental Co. ltd.

• Sales• Rentals

• Spare Parts • After-Sale Service Support

Page 28: The Big Project

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Page 29: The Big Project

www.thebigprojectme.com | 29

New

sca

reer Lad

der | VICTAU

LIC

Victaulic’s newly appointed product development manager, Henrik Ulrich, explains his strategy to keep a global brand ahead of regional innovation

victory hydraulics

H enrik Ulrich is a man on a mission. As product development manager for Victaulic, he is tasked with overseeing the development of new prod-

ucts that are “in tune” with the regional market, bridg-ing the gap between Victaulic’s sales department, customers and R&D to ensure demands for innovative products, that meet multiple legislation, are met.

With a degree in export engineering from VIA University College, Horsens, Denmark, the former HVAC sales manager has spent his 15 year profes-sional career working in global exports for the HVAC market and will now oversee Victaulic’s operations in the EMEAI region.

“I have always enjoyed meeting different people and cultures, as well as travelling, and through my work I have found that I have had many opportuni-ties to indulge these passions,” he comments.

“This is still true today and for this reason I still like visiting distributors and enjoy all aspects of direct sales.”

One vital element of his latest role will be to pro-vide an interface with the company’s US based prod-uct managers. Described by Victaulic as “vital”, this interface will be the basis for R&D for the EMEAI region and will provide the basis upon which new products are launched. ABOVE: Henrik Ulrich.

Page 30: The Big Project

| www.thebigprojectme.com30

career La

dd

er | VICTAULIC

It’s no simple task, but Ulrich has a simple strategy: “Communication, communication, communication. Keeping as close as possible to everyone, listening carefully and being as open-minded as I can.

“My main role will be to act as a link between sales, the customer and R&D, whilst making sure new developments will be in tune with the EMEAI market demand and make a profit,” he says.

Historic rootsThe Victaulic empire is built on mechanical pipe joining systems; specifically a mechanical bolted coupling that can “engage into grooves and use a gasket seal”.

The concept originated in World War I, and developed because of the time and parts savings

it facilitated, with the name Victaulic coined by combining the words ‘victory’ and ‘hydrau-lic’. Over the last 80 years, the company has grown to serve the industrial, commercial and institutional piping industries and today employs more than 3500 people worldwide.

“My aim for this role is to keep Victaulic at the forefront of grooved product innovation, with new products that fulfil the require-ments of customers and that continue to help to ease their workload,” Ulrich asserts.

“Because EMEAI consists of multiple coun-tries with different cultures, and legislations, this makes it very important to always be up to date. This will ensure that future products can fulfil the requirements of the market and the legislation of different countries across the region,” he adds.

“my main role will be to act as a link between sales, the customer and r&d, whilst making sure new developments will be in tune with the emeaI market demand and make a profit”

Exclusive portfolioSo far the EMEAI region has demanded a number of products, exclusive to the Victaulic portfolio.

Its high grade fire protection products have most famously been used for Ferrari World, Abu Dhabi and Kayan Utilities, an ethylene production facility in Saudi Arabia.

Pre-fab systems were employed to the Yansab Olefin Plant project in the industrial area of Yanbu, Saudi Arabia, where an existing system was replaced with a Victaulic grooved system. The method reduced the length of the project overall and reduced costs by around 30%, says the company.

Worldwide, Ulrich reports fluctuations in demand, particularly for these grooved and pre-fabricated systems, at times pegged to the skill sets of local workers.

“The EMEAI is a large region and there are trends, for instance in certain parts of Europe, for an increased use of grooved systems, in response to a perceived shortage of skilled weld-ers,” he explains, adding: “I have also noticed a trend towards pre-fabrication, with parts of piping systems being assembled off-site, and mechanical grooved systems playing a role here. Every region has its differences and I am look-ing forward to learning more about them.”

For now the focus will firmly be on expand-ing a product portfolio that not only reflects the needs of the region, but also leads it.

“There are amazing opportunities for Victaulic and a growing demand for our prod-ucts in the coming years. If we look at our current range of products and see their many different applications, the potential is huge. I am looking forward to helping to grow the business and ensuring Victaulic stays ahead of the competition when it comes to R&D,” Ulrich adds.

Page 31: The Big Project

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Visit www.buildgreen.ae

click on Green Career Section

Kickstart your career at the BGreen Career Section, where you can find the latest job listings across sustainable industries.

ABOUT US MEDIA PACK BGREEN GALLERY CONTACT US MAGAZINE SUBSCRIPTION

Also insideEnergy and waterConstructionGreen ITEco-leisureGreen business

The social structure

Issue 10 MAY 2011

How corporate social responsibility initiatives are helping businesses give back to society

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MANAGING WASTE FOR

MONEY

Issue 15 | sePTeMBeR 2011

Why our landfills can be gold mines

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Money doesgrow on trees

Issue 13 | JuLY 2011

How going green can make your business prosper

Also insideEnergy and water

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Issue 17 | NOVeMBeR 2011

The Big 5 goes greenThe largest Middle East building and construction exhibition gears up for its greenest showcase of the most diverse products and services on the market today

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internAtionAl Green AwArds

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the Green deen

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Issue 21 | MARCH 2012

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2041

Issue 12 JuNe 2011

One man’s mission to save Antarctica by powering the world sustainably

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Sustainable is beautifulA look at sustainable interior design that’s

even easier on the eyes than it is on the planet

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TOXIC?Up to 500 million litres of paint is manufactured in the UAE every year. With no formal regulation to prevent hazardous

compounds being used, BGreen looks into the least recognised element of sustainable building; human health

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TOUCH WOOD!

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Why you can and should trust in timber

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as a requisite in successful business models

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Page 32: The Big Project

YOUR ONE-STOPGUIDE TO CONSTRUCTION DEVELOPMENTS IN THE REGION...The Big Project is the Middle East’s leading monthlyB2B magazine for the construction industry.

Associate publisherLiam [email protected]: +971 (0)4 440 9158

Editorial directorMelanie [email protected]: +971 (0)4 440 9117GSM: +971 (0)56 758 7834

Marketing managerCarole [email protected]: +971 (0)4 440 9157

conTAcT DeTAiLS

40,880 readers per monthAverAge Projected reAdersHiP

Page 33: The Big Project

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cover Sto

rY | INFRASTRUCTURE ABC

cover StorY

a mbition; check. Knowledge; check. Demand; check. Finance; check.

On the surface it would appear the Middle East has everything it needs to build a world class region, but experts say vital finance models are still ineffective and at times impossible the implement.

Private sector involvement and foreign investment are urgently

needed to ensure the mega-projects currently on the drawing board are realistic, proprotionate to demand and aligned with the priorities of the MENA region’s 150 million residents.

It’s not just the established markets of the core GCC countries making huge investments; Iraq, funded by a 100% increase in oil production to 2015, will build 2.5 million new homes over the next

four years. Projects are restarting in Egypt and Libya and Jordan’s power and water requirements require urgent address.

Over the next eight pages, experts from the recent Infrastructure Arabia conference dissect the problems behind the projects their finance models, and The Big Project presents the Middle East’s most expensive infrastructure projects.

Financing arabia’s future

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| www.thebigprojectme.com34

xx

xx

xx

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| xxxxxxxxxxco

ver StorY | INFRASTRUCTURE ABC

cover StorY

“to make all this happen at the same time will need some financial liquidity”

I nfrastructure investment is something that always happens. The emphasis sometimes changes driven by changing

demographics, for example to social infra-structure and there are other forces that sometimes come into play, but the focus needs to be on how we are investing in pro-jects and how to get the best out of the assets; it’s all about how to get the best out of the resources we have.

This becomes difficult when trying to entice the private sector into projects that have competition for the same infrastruc-ture type; there are a number of competing ports and airports in the market and invest-ing in those requires good due diligence and conviction that you are able to

maximize your revenue from that invest-ment and minimize your risk.

In terms of the finance and execution models for projects, we are seeing a lot more design and build, which means some of the risks and time frames are shifting away from the public sector.

In the absence of comprehensive PPP legislation, consultants have to work very closely with clients, that is the construc-tion companies, to analyse where they can get value in projects and it’s the highest value models clients are looking at. The vision is still there but we as the private sector need to pace ourselves to mini-mize the risks.

The essential thing is to have the

necessary infrastructure in place at the time it is needed, but that doesn’t necessar-ily mean we need to build something new, we just need to get the best value out of what you have now to make sure you have the right platform for continued development.

One of the key drivers we are seeing is the issue of sustainability and the sustain-ability agenda. This is going to touch on a lot of downstream activities and you need the mindset to drive this through the whole lifecycle of a project.

A lot of infrastructure has been built over the last 40 to 50 years in the region and now asset management is becoming a priority, just looking at how we are invest-ing, re-investing, maintaining and updat-ing those assets and sustainability is a large part of that. Over the last decade the world has changed, and it will change again before 2020 and 2030 when the current master plans are due to mature.

dr. arman FaraHmand-razavIDirector, Transport, Ramboll Middle East, UAE

on time, on budget, on demand

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rY | INFRASTRUCTURE ABC

cover StorY

a guide to PPP modelsbuy-build-operate (bbo)Transfer of a public asset to a private or quasi-public entity usually under contract that the assets are to be upgraded and operated for a specified period of time. Public control is exercised through the contract at the time of transfer.

build-own-operate-transfer (boot) A private entity receives a franchise to finance, design, build and operate a facility (and to charge user fees) for a specified period, after which ownership is transferred back to the public sector.

build-operate-transfer (bot)The private sector designs, finances and constructs a new facility under a long-term Concession contract, and operates the facility during the term of the Concession after which ownership is transferred back to the public sector if not already transferred upon completion of the facility. In fact, such a form covers BOOT and BLOT with the sole difference being the ownership of the facility.

build-Lease-operate-transfer (bLot) A private entity receives a franchise to finance, design, build and operate a leased facility (and to charge user fees) for the lease period, against payment of a rent.

Finance onlyA private entity, usually a financial services company, funds a project directly or uses various mechanisms such as a long-term lease or bond issue.

design-build-Finance-operate (dbFo)The private sector designs, finances and constructs a new facility under a long-term lease, and operates the facility during the term of the lease. The private partner transfers the new facility to the public sector at the end of the lease term.

build-own-operate (boo) The private sector finances, builds, owns and operates a facility or service in perpetuity. The public constraints are stated in the original agreement and

through on-going regulatory authority.

operation & maintenance contract (o&m) A private operator, under contract, operates a publicly owned asset for a specified term. Ownership of the asset remains with the public entity. (Many do not consider O&M’s to be within the spectrum of PPPs and consider such contracts as service contracts.)

design-build (db) The private sector designs and builds infrastructure to meet public sector performance specifications, often for a fixed price, turnkey basis, so the risk of cost overruns is transferred to the private sector. (Many do not consider DB’s to be within the spectrum of PPPs and consider such contracts as public works contracts.)

$30 bnDOWNSTREAM REFINING PROGRAMMEExPECTED TO BE AWARDED IN KUWAIT

By Jamal El Zarif, Ph.D. technical advisor, Abu Dhabi Municipality, Infrastructure Sector

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Ivan Woods

Head of project finance advisory, BDO Corporate

Finance Middle East

“Governments of the oil rich countries are still providing full finance on some projects and this is causing two problems. Firstly it makes it difficult for the private sector to enter the market, but secondly without the private sector ‘check’ and a partner to analyse and share risk, you’re likely to end up with a country full of gold-plated competing infrastructure”

more than money

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t aking a step back from the individual projects themselves, it’s clear that across the region there is a huge

increase in demand for these projects and demographics is one of the key driving forces. Populations across the board are expected to increase substantially and the priority chain should be social infrastruc-ture, then power and water projects, fol-lowed by mass transportation.

To coordinate this, planning on a big-picture level is key as is institutional ability to analyse different types of procurement.

It’s essential to ensure the vision can be implemented on ground and that depart-ments involved have the capability in terms of human resources and knowledge to push individual projects forward.

Some countries have done well with that, some countries have had trouble getting the PPP law set up, but generally it’s all going in the right direction.

However, capital markets are still not recovering and a number of big interna-tional banks that have been looking at pro-jects in the region are pulling back. But while there is still a significant project finance freeze, it remains true that if you have good projects you will find finance.

For some of the smaller social

infrastructure projects you find people increasingly looking to local financing sources, which are less affected by the overall global financial crisis yet can encourage discipline on the scale and types of projects. Five years ago this wasn’t happening because liquidity then made it easier to raise billions of dollars from an international bank without wor-rying too much.

Being forced to be a bit more creative and to find alternative sources and finance from local commercial banks makes things more complex and more time consuming to get going, but it is not bad for the project itself as there is more due diligence.

Governments of the oil rich countries are still providing full finance on some projects and this is causing two problems.

Firstly it makes it difficult for the private sector to enter the market, but secondly without the private sector ‘check’ and a partner to analyse and share risk, you’re likely to end up with a country full of gold-plated competing infrastructure .

Procurement issuesThe classic BOT model has declined and governments are analysing the range of procurement methods from design and build to PDFA to PPP, which is a healthy process. Although depending on which countries you are looking at, the ability to implement a full PPP project is not always there.

Depending on where you are in the world, the standards vary. For example, Egypt has a PPP programme which has been pretty successful but other countries

are playing catch up and are doing it on a bit of a haphazard basis.

If you look at an airport for example, which is a highly regulated business, the regulatory structure to be able to explain to your $1.5billion investor exactly how they are going to be paid and how the asset will mature over time, is missing.

Something that could be very useful would be to draft overall PPP frameworks to be used across different projects, but it is also good to have a range of procurement models that are constantly under review. Abu Dhabi’s Mafraq Highway is a classic example of developing a large and complex PPP model without institutional under-standing, and it just didn’t work properly.

The PPP framework doesn’t have to be chapter and verse, but getting the basic building blocks of what is needed from such a project � the essentials of the tendering model so investors will know what they are getting into and again the regulatory struc-ture they can look to for a long term con-cession � are relatively straight forward building blocks that can then grow into a PPP programme.

Now is a good time to invest in establish-ing the institutional capability to ensure there is regulation, institutional ability to repair, tendering and procurement pro-cesses in place.

Power and water projects are a priority but a lot of the social infrastructure needs to be focussed on now before it really becomes as issue.

Following on from affordable housing, the population needs education and health-care. They are all priorities and there is a lot to do.

“now is a good time to invest in establishing institutional capability to ensure there is regulation, institutional ability to repair, tendering and procurement processes in place”

$70 bnVALUE OF CONTRACTS AWARDED BY THE GOVERNMENT OF SAUDI

ARABIA LAST YEAR

$150 bnVALUE OF PROJECTS TO

BE AWARDED IN THE GCC OVER THE NExT FIVE YEARS

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dr. Ghassan

ziadatDirector of infrastructure (UAE)

and regional head of bridges, Middle East and India, Atkins

“to make all this happen at the same time will need some financial liquidity. If you have done the maths, you will find that even though some of the countries are fairly well endowed the amount of investment is quite phenomenal”

Planning ahead

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t here are many large active projects across the region, but having good master, market and flexibility plans

for phased development is essential and because nobody ever really knows what will happen in the future, in the current political and economic climate, plans must show flexibility.

Over the last few years, the region has experienced a reality check. There was a philosophy that infinite development was viable and that ‘if you build it they will come’, but we are seeing a lot more reality now in terms of how much development the region can absorb.

The key to making the developments happen is also having the financial struc-ture; the investment available from the public and private sectors, from local and regional banking, and from the interna-tional monetary institutions.

Although some of the countries have the financial backing, to make all this happen, at the same time will need some financial liquidity. For cash flow reasons there needs to be financing raised. If you look at the current income of the coun-tries where these projects are underway, and the value of the projects; if you do the maths, you will find that even though some of the countries are fairly well

endowed, the amount of investment is quite phenomenal.

You will need somebody to bridge the financial gap over time and to attract foreign investment, private investors and local and regional banks. All these considerations bring in a very strong reality check; is the investment viable, sound and transparent?

I don’t think the region can finance all its projects internally and it has to look to finding capital from world markets. It’s a paradigm shift and more legislation will be needed to make the market more open and attractive for foreign investment.

PrioritiesPower and water projects and absolutely vital, not just in the GCC but the wider region, because this is one of the world’s poorest regions for water resources and water and energy production are intrinsi-cally linked.

Countries like Jordan have water once a week for a few hours a day, it’s an abso-lute priority.

Fourteen years ago, AECOM was advising Abu Dhabi Municipality on its infrastructure and they were asking about the assumptions and the basis upon which we were making the plans. We were planning roads on a much smaller scale, but the leadership was saying that Abu Dhabi and all its islands was ready to lead the country; the popu-lation would grow, they had visions for the sustainability, water recycling, well ahead of these ideas being implemented elsewhere in the world. You have to have

proactive leadership and this is where, for example, when there are economic down-turns and the governments have to main-tain the construction industry and the population in jobs to keep the population ticking along.

You have to plan for 20 and 30 years in advance, but then you have to have an adaptable plan. Governments also need to be proactive, not reactive, in making things happen; you can’t just step back and see what happens.

For example, the UAE transport plan ‘connecting the nation’ is analysing all modes of transport, and has resulted in projects like Etihad Rail, the upgrading of ports and highways. It shows that Abu Dhabi is committed to improving its transport infrastructure and part of that will link to the rest of the GCC, via rail corridors that been safeguarded for 50 years by the Arab Rail Union, until a rail project is politically and financially viable.

Infrastructure and economyGovernments have to implement a certain amount of spending to keep the economy ticking over and at the same time you can get great value for money. This is a model that is used in other countries in the Far East. The developers have taken advantage of economic downturns, countries where they have had to invest they have done so in airports, roads, metros and they have seen good value for money. This bridges the gap until the private sector can re-engage in real estate. You make plans, but also think about being flexible in how to make that happen.

“I don’t think the region can finance all its projects internally and it has to look to finding capital from world markets. It’s a paradigm shift and more legislation will be needed to make the market more open and attractive for foreign investment”

2.5 mMILLION HOMES TO BE BUILT IN IRAQ BY 2016

$70-85 bnPREDICTED TOTAL MENA CONTRACT AWARDS IN 2012

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In associate with Emirates Tenders, The Big Project brings you the top five most expensive infrastructure projects in the region. Log on to The Big Project website to see the full top 20 list of the most expensive new and active infrastructure projects in the region

AL-RAHA BEACH CoMPLEx DEVELoPMENT PRojECT

$150,000,000,000

Descriptioncarrying out development of Al-raha beach complex, to be built on reclaimed land comprising numerous towers and low-rise developments on the waterfront and house about 120,000 people.

StatsPopulation: 120,000 peopleBuilt-up area: 12 million square metres Dredging: 8 kilometres within an area of 450 hectares, involving an estimated 40 million cubic metres of reclamation works arranged on a phased sub-division basis. The Projects Director: ALDAr Properties PJSc

jUMEIRAH GARDENS MIxED-USE DEVELoPMENT PRojECT

$95,000,000,000

DescriptionDevelopment of Jumeirah Gardens mixed-use scheme comprising seven distinct areas, including offices, residential buildings, retail, leisure and entertainment areas, and hotels.

StatsProject area: 110 million square feet Phase 1: commenced consultant: Skidmore, owings & Merrill Project manager: hill

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cover StorYoIL & GAS ExPoRT PIPELINE REHAB. PRojECT

$50,000,000,000DescriptionBuild-operate-Transfer (BoT) contract to carry out rehabilitation of oil and gas export pipelines.

StatsTenders: Three phases Phase 1 will include a 1.75 million barrel-a-day pipeline from Basra to hadithaThe network will then split, with one line going westwards to the Syrian border and the other joining the northern export pipeline from Kirkuk to ceyhan in Turkey. client is also planning to rehabilitate the 1.6 million b/d northern Kirkuk-ceyhan pipeline, replacing the corroded sections of the 30-inch line. More than 7,000 kilometres of pipelines will be required.

NUCLEAR PoWER PLANT PRojECT-1

$ 40,000,000,000

Description engineering, procurement and construction (ePc) contract to build a nuclear power plant with capacity of 5,600 MW.

StatsFour reactors, each with capacity of 1,400 MW.First reactor producing power in 2017 Three other reactors to come on line at 18-24-month intervals.

YAS ISLAND DEVELoPMENT PRojECT

$ 40,000,000,000

Description Development of yas island featuring a Ferrari theme park, a motor sports race track and three golf courses, including a water park, a shop-ping centre, hotels, two marinas, polo clubs and residential buildings.

StatsDeveloped on natural island, northeast of Al-raha Beach development Project area of 25 square kilometresSecond phase, due for completion 2014, is the development of north of the island The scheme will feature a Ferrari theme park, a grand prix circuit and three golf courses., water park, shopping centre, hotels, two marinas, polo clubs and residential buildings. construction contracts for a 10-lane highway are being finalised

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The Big Project catches up with Kanoo general manager bob Jennings, who warns that a dual boom may not be the good news it sounds like

market equilibriumKanoo general manager Bob Jennings.

n ot all news is good news. With anticipa-tion growing over the huge project oppor-tunities in Saudi Arabia, Qatar and even

Abu Dhabi, the region’s suppliers, dealers, manu-facturers, consultants and contractors are under-standably preparing for an upturn.

However one man is erring on the side of cau-tion, warning that the combination of global credit conditions and an influx of far eastern firms could cap many of the opportunities regionally based companies are counting on across markets such as Saudi Arabia, Qatar, Abu Dhabi and Kuwait.

“We [the industry] will eventually come to a situation where we are not able to supply the demand, because we will not be in a position to take the risk to put a lot of money into a market, just in case things don’t go the way we plan,” Kanoo GM Bob Jennings tells The Big Project.

“We are ordering more stock, but manufactur-ers are coming to a point where their [supply]

chains are becoming stretched and delivery times are extending. The industry will invariably end up in the same situation we ended up in between 2004 and 2006,” he added, continuing: “China will come in and start to fill the market gaps because we will not be able to manage it.”

Eighteen years in the region has given Jennings considerable insight to the peaks and troughs every economy and market experiences. Arriving in 1994, he says it was a further decade before he began to realise the local market was “for real”, marked by the start of construction on Dubai Marina and its surrounding neighbourhoods.

It was during this boom the eastern markets gained their first foothold in the UAE, but issues surrounding the quality of their products capped their success and damaged their reputation. Returning now with higher quality machines and a “long term mindset”, Jennings predicts this time will be different. “The Chinese will come out with a better reputation and they will

“the industry will invariably

end up in the same

situation we ended up in

between 2004 and 2006”

“It has been happening with car dealers, but it has never happened with machinery dealers before”

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a lot of customers now insisting they would not go back to our competitors because of the level of service they have gained from us,” he adds.

Included in that service is a machine-to-machine remote monitoring system, that flags critical issues with machinery and mitigates the risk of downtime.

“It has been happening with car dealers, but it has never happened with machinery dealers before,” Jennings explains.

“Typically you’ll find downtime is about 30% on average per year. On a sizable operation, that could mean a significant amount of money. But we can come in, particularly with our remote monitoring system, and take that to 95% up time,” he claims.

Increasing market share today is achieved on service, not equipment, Jennings explains and the

“You have to be careful, because you can never really judge how it might go. the global economy is a problem”

“there will definitely be a demand there that will have to go ahead, irrespective of what’s going on elsewhere”

get an even bigger foothold in the region than the last time round. That will be at the expense of the western and Japanese companies and it will be difficult for them to recover,” he predicts.

It’s not just construction; the oil and gas industries have benefitted from significant increases in the number – and quality – of east-ern manufacturers and suppliers, with China-UAE trade posting a 35% YOY growth over the last decade, according to figures published by Messe Frankfurt.

That said, not every eastern market is able to compete with the company.

Uptime Currently, Jennings is based in Saudi Arabia where Kanoo has driven its market share for Grove branded rough terrain machines alone from “about 11% in 2010 to over 52% in 2011”.

Influenced as much by economic conditions as any other factor, Jennings reports currency and supply issues experienced by Japanese competitors paved the way for Kanoo to effectively price its products, and stock more of them, to reduce that price further and ultimately drive sales.

“Knowing that we have more products in stock, means we are able to compete.

“Also we have taken quite a lot of business from competitors due to our service capability. We have

ability to remotely support customers is a large part of that, particularly if a business wants Mecca and Madinah, Jizan Economic City Port, Riyadh Dry Port and Princess Noura University reeled off on their project portfolio.

It’s such business sustainability that offers pro-tection in the face of continuing threats from global economics and politics, not to mention the uncertainty of how much the region’s biggest brands will cash in on its next biggest markets.

Absolute certainty?“The [market] dynamics are completely different now. What drove Dubai was the speculation, but Saudi Arabia is being driven by an acceptance that they have to spend on infrastructure; it’s inherent money,” he observes.

For Jennings, therein lies a large part of the problem. Calling it a “tale of two cities” the col-lapse in Dubai is now being replaced with dual booms; firstly in a massive country that requires infrastructure build up from the most basic ele-ments to entire civil networks, and secondly in a country that has a non-negotiable deadline and the eyes of the world on it.

But the crux of his caution is thus: “We are preparing for a joint boom in Qatar and Saudi Arabia, but you have to be careful, because you can never really judge how it might go. The global economy is a problem, growth in China is drop-ping, demand for oil could also start to drop as well. If that price comes down it could also affect Saudi Arabia’s appetite to spend money.”

“The only certain thing is Qatar and the build up for the World Cup. There will definitely be a demand there that will have to go ahead, irrespec-tive of what’s going on elsewhere,” he adds.

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Intermat Paris: middle east day

event In

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AT PARIS

H eld from April 16-19 at Paris Nord Villapinte, Intermat Paris hosted 1350 exhibitors and welcomed 145,082

trade visitors. The focus was undoubtedly international,

with 67% of exhibitors and more than 34% of visitors having travelled in from abroad. Data released since the show, demonstrated promi-nence from Chinese suppliers, who occupied a combined exhibition space of 26,250m².

For one day the focus was firmly fixed on the Middle East, when on Wednesday April 18 UAE ambassador to France, His Excellency Mohamed Meer Abdalla Al Raeesi, visited the exhibition with members of Abu Dhabi’s Department of Economic Development for ‘Middle East Day’, ahead of the second Intermat Middle East, to be held in Abu Dhabi October 8 – 12 2012.

Also helping to promote Intermat Middle East, members of Abu Dhabi Department of Economic Development, exhibitors and show organisers met with The Big Project for a panel discussion on industry trends and opportuni-ties in the Middle East. The full discussion begins on page 48.

Other high profile visitors included the heads of international machinery and equip-ment manufacturers, who combined repre-sented 80% of the global market.

“The total value of the equipment on offer over the six days was estimated at $2 billion, some 5% of which translated into orders equiv-alent to approximately $100 million,” said Exhibition Manager Maryvonne Lanoë.

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INTERMAT INNoVATIoN AWARD WINNERSGold award  - Arcure, Blaxtair, Components, equipment and tooling - Mills, Tourechaf, Construction equipment - R. Brunone, Convoyeur SB SPAR, Civil engineering, Mining and Quarrying equipment - Volvo Construction Equipment, A40F Full Suspension OBW, Civil engineering, Mining and Quarrying equipment

Environment award  - Imer Group, Carry 105 Electrique, Handling Equipment and Services

Silver award  - Fayat SA, Swift, Civil engineering, Mining and Quarrying equipment - Klac Industrie, SA, Klac+, Components, equipment and tooling - Vollert Anlagenbau GMBH, ISO-MATIC, Construction equipment

Bronze award - BLastac BV, Camion Multifunctions Blastrac BMR85D, Construction equipment  - Horton Europe GMBH & Co KG, WindMaster Revolution, Components, equipment and tooling

ADDRESS FRoM HIS ExCELLENCY MoHAMED MEER ABDALLA AL RAEESI, UAE AMBASSADoR To FRANCE (CENTRE)“I am very much delighted to be here and to have this opportunity to promote Abu Dhabi, its busi-ness opportunities and the scale of construction in the Emirate here. “This is a great opportunity for us and again I would like to thank you on behalf of the Department of Economic Development. “Hopefully this will be a prepara-tion for Intermat Abu Dhabi next October and I hope we can add the expected value.”

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observing the global machinery market of late, what have been the most significant developments?

Gaby Rhayem: I think there are positive signs, especially in the Middle East because of the opportunity in Saudi Arabia and the UAE. We at Doosan are confident the sec-ond half of this year will see strong investment and pro-jects in Abu Dhabi. We believe there is big potential in the UAE and we are very positive.

Veronique Arnal: The last edition of Intermat Paris was in 2009, so we have been preparing this show for three years. 2009 was the year of the crisis in our sector and we have seen that over the last three years our exhibitors have recovered in their optimism and business growth. We can feel now at the show from the machines, materials and products displayed that it is exciting for our market.

This year we have more international exhibitors, and visitors over the last two days have come to the show with actual projects; that’s concrete motivation to meet with the suppliers.

Race to Abu DhabiAhead of the second INTERMAT Middle East in October, melanie mingas travelled to the show’s Paris edition to hear from organisers, exhibitors and Abu Dhabi Department of Economic Development about the need for a dedicated PMV expo in the region

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Chris Hudson: I think Europe and the Middle East are different markets; clearly the European market is perhaps more established and we can only speak about it from an exhibition organis-ers’ perspective, so our barometer is what our buyers are telling us and to echo what Gaby has said there seems to be a certain amount of opti-mism in the region and people are certainly pushing forward with projects; we are seeing more projects being green lighted.

What’s quite interesting is the second tier of contractors we are talking to. I expect these are the people dealers want to be doing business with and 65% of these guys don’t travel to inter-national shows. With Intermat Abu Dhabi we are looking to create a show in a market that is seeing a certain amount of uplift.

In Saudi Arabia, Qatar, Bahrain to an extent, and Abu Dhabi, projects are very much coming online and we are looking to create a show for major infrastructure projects, rather than a built environment show.

We conduct surveys with our visitors and the results are certainly positive. From an organiser’s perspective they very much want the opportunity to have their own version of Intermat in the Middle East. We had some independent surveys conducted recently that concluded 85% of respondents want an edition of Intermat in their own market. That is key in terms of travel time and ability to be out of the office, so having a local show helps.

“this year we have more international exhibitors, and visitors over the last two days have come to the show with actual projects; that’s concrete motivation to meet with the suppliers”

tHe PaneL

cHrIS HUdSon Intermat Middle East, UAE

YoUSeF barzaK contractors’ classification

specialist, Department of Economic Development,

Abu Dhabi

aHmed abdULraHman aLbUrKanI

Manager of Contractors consultants

Classifications and Engineers Registration office,

DED Undersecretary Sector

veronIQUe arnaL sales director, Intermat

Paris

GabY rHaYem regional director Middle East,

Doosan Infracore Construction Equipment

375,000SQM ExHIBITION FLOOR SPACE

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AT In light of Abu Dhabi’s 2030 Vision, what are the specific projects increasing demand for machinery?

Yousef Barzak: When Abu Dhabi announced Vision 2030, it was decided to develop the sur-rounding islands and in order to achieve the vision there will be a lot of construction in infrastructure in preparation for the bigger vision. I believe we will need a lot of machinery, equipment, contracting companies and con-sultants to realise this.

Ahmed Abdulrahman Alburkani: The Emirate of Abu Dhabi occupies 87% of the whole United Arab Emirates, so you can imagine the scale of development, particularly in the Western Region. This area is the largest of three regions and 90% of this area needs to be developed, so you can imagine the need for construction equipment.

GR: I believe the Middle East deserves a show like Intermat; we see similar events in France, Germany, Italy and the US. When we look to the Middle East and see that more than 40% of the world’s biggest projects are in the region, we as suppliers know Intermat should be here.

As a manufacturer we also need to invest and we need to have our dealers to make the show happen and to make the show successful. It’s strange that a region like the Middle East, where there is the world’s highest building and dealers are selling the most machines, doesn’t have a dedicated construction machinery show. We need to forget the past, build something strong and work on the future.

What are the main challenges for European companies looking to establish themselves in the Middle East?

GR: The fact government is providing a facility for companies to establish head offices and solution centres here is like a dream. A lot of facilities and support centres are based in Abu

Dhabi and local authorities are helping compa-nies in establishing those bases there. For us with a branch office, we have a lot of support from the local government.

YB: There are several entities in Abu Dhabi with a core business remit to attract investors, such as Abu Dhabi Chamber of Commerce and Industry, Zonescorp and also the Abu Dhabi

LEFT:xxxxxxxxxxx

“We had some independent surveys conducted recently that concluded 85% of respondents want an edition of Intermat in their own market. that is key in terms of travel time and ability to be out of the office”

“We held our first Intermat middle east last year and we had some european exhibitors who succeeded in finding reliable partners in the middle east”

GULF ProJectSFIFa WorLd cUP 2022 (Qatar) $91 billion

madInat aL Hareer (KUWaIt) $95 billion

SUndaIr cItY deveLoPment (KSa) $40 billion

deveLoPment oF traIn SYStem (Qatar) $22.8 billion

LarGe abU dHabI ProJectSSaadIYat ISLand $27 billion

etIHad raIL $11 billion

FoUr eLectrIc PoWer StatIonS $1.5 billion

KHaLIFa Port$7.2 billion

LEFT: Chris Hudson.

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to being there and you can find a lot of opportunities.

AA: Part of the aim for the 2030 vision of Abu Dhabi as set out by His Highness, is for the government to be one of the top five govern-ments in the world. One of the main elements will be to ease business processes, and also to enhance education, health and investment in a range of everyday activities.

Economic Council. All these entities are to attract investors and make things easier and promote the choices of conducting business in Abu Dhabi or in freezones across the Emirate

VA: We held our first Intermat Middle East last year and we had some European exhibitors who succeeded in finding reliable partners in the Middle East. We also have two examples of companies who created their own office in Abu Dhabi. So Intermat Middle East can also help to boost trade links between the Middle East and Europe.

YB: When you open a branch in Abu Dhabi you are in the centre of a hub that includes Qatar, Dubai, Kuwait, there is a good advantage

“those companies who were here for the first edition are now back for the

second, and they wouldn’t do that without seeing a return”

67%OF ExHIBITORS WERE INTERNATIONAL, REPRESENTING 32 COUNTRIES

LEFT: Veronique Arnal

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TERMATWhat are the main opportunities

and which projects should new companies focus on supplying to?

AA: Whether a project is buildings or infra-structure, no matter what size it will always need the latest equipment in that field in order to be built. Abu Dhabi is expected to see a boom in projects until 2030 and beyond, and this will grow the machinery market.

YB: Naming projects, I would say the primary ones are Masdar City, Kizad, Yas Island, Abu Dhabi Airport, Saadiyat Island, Sowwah Island. There are many projects to be mentioned.

There are already many companies established in the UAE who are waiting for these projects to turn into business for them, how strong is the market and how will it cope with the increased competition?

AA: The number of current and future projects will accommodate all these competitors and I am sure the market will have a chance to give each company its share.

CH: There are many contractors already based in the UAE tackling the major projects and buying machinery and also many of those are managing projects in other Gulf countries as the likes of Arabtec and Al Jaber are taking on major projects across the whole region.

I expect the machinery market is about the massive infrastructure projects but clearly in the UAE there are the mass rail, metro, port and road projects, so they can be serviced by existing contractors but there are many new companies there to meet the demand of the projects coming online and they will all be buy-ing machinery.

I believe there are around US$4 trillion of projects still live round the GCC and I sense that poses great opportunity for the manufac-turers, distributors, existing and new contrac-tors and we will see growth as a result of all that coming online.

GR: Abu Dhabi is the place to be, yes it was a little conservative before but I believe the gov-ernment is now more open and actively invest-ing. There is no doubt Abu Dhabi is a future market in the region.

85% of international buyers want an Intermat middle east event

65% of those buyers do not go outside the region to source equipment

77% wanted to see new products

55% want to meet with existing suppliers

67% wanted to meet with new suppliers

LEFT: Ahmed Abdulrahmaan Al Burkani.

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ago, we can say there has been about a 40% improvement on 2009. We all feel the level of exhibitors and visitors has recovered and we feel positive.

CH: In the Middle East this year we will see a show that has doubled in size and will attract double the amount of buyers. The important thing with us for Intermat Middle East is that we are in partnership with the industry, and while it is a cliché to state, this is an industry show. We have an unofficial advisory board of dealers, manufacturers and distributors who are steering the ship, so to speak. So perhaps unlike other events we are very much industry-led.

Those companies who were here for the first edition are now back for the second, and they wouldn’t do that without seeing a return. So we continue to deliver a show that delivers for exhibitors and visitors.

How can companies find the right partners in a new foreign market?

YB: To be honest we are talking about the knowledge economy and that is what Abu Dhabi is aiming for and DED does have inves-tor services to guide and introduce those investors to other government agencies and other investors, to help them find solid ground to work on. There is a big interest in such an approach.

CH: Clearly events like this are there to assist companies gaining access to the market; and the attendance of DED and exhibitors at this discussion demonstrates that today.

As an organiser, that support is something that we establish before, so we can match make with particular buyers.

We did a recent survey amongst 150 key buyers across the whole region and 80% want to source new products. Sometimes the best products will come from the major players, but they can also come from the small busi-nesses as well, so if we can assist those busi-nesses we would be delighted to do so.

GR: Normally the small companies are asking for support from embassies but they are not very well introduced, there needs to be a fund-ing opportunity presented to the outbound country coming into the market.

I believe our plan for Intermat Abu Dhabi is to show the force of the brand and to show customers our new products and parts. We need to be closer to the end users so shows are a unique opportunity.

How have local Middle East demand patterns fluctuated over recent times and how much of an indicator is this of the wider market?

GR: At Doosan, we think 2012 will be a very good year in terms of sales and growth. There has been steady growth since 2010 and there are good signs now.

AA: Part of Abu Dhabi’s policy is to take things gradually, we do not come up with ideas in a matter of days; we plan, think and do.

VA: After each show we try to assess the amount of business conducted, but our exhibi-tors aren’t so willing to share the information. What we do know is that here in the European market we have recovered from 2007 and com-pared to the last edition of Intermat two years Ph

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LEFT: Yousef Barzak.

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MitasNew earthmoving tyres introduced

Mitas has extended its ERL/ERD tyre range by 30% with the introduction of a new set of earth moving tires.

Manufactured in the Czech Republic, Europe, the new tyres are designed for loader and grader machinery. The ERD tyres are for transport vehicles, including wheel loaders, dozers and graders, dumpers (including articulated dumpers ) and scrapers.

“Each off-road surface requires its own specific tread design and functionality,” said Mitas product manager, Petr Hala.

“Mitas now makes specific tyres for machines operating in these demanding con-ditions, including gravel and rock quarries. The customer will appreciate the cut resist-ance of the ERL-50,” Hala added.

New features on the tyres include larger surface area – to improve longevity and per-formance – and deeper tread for rocky ter-rain. The entire ERL/ERD line is radial with steel-enforced carcass and steel breakers.

“Customers ask for resistance to damage and added value in the tyre life through retreading in quarry tyres,” said Andrew Mabin, Mitas’ sales and marketing director.

“Mitas developed the FLR (forklift radial) and SC (straddle carrier) tyres based on steel radial technology, which allows for the han-dling of extremely heavy loads.

“The SC-01 is made stable to minimise lateral movement of the straddle carrier where the driver sits at the very top of the five-storey vehicle. This translates to ride comfort,” Mabin added.

jCBMassive single tender awarded

The Brazilian Federal Government has bought more than 1000 machines from JCB to equip municipalities across the South American country. The US$ 97 million contract is one of the largest single tenders in the company’s history and also includes training.

The company will supply 1016, 3C backhoe loaders - all of which will be manufactured at its factory in Sao Paulo - by the end of June. The first 114 machines have already been delivered, and the entire fleet will be used to improve Brazil’s roads. JCB 3C backhoe loaders are 6.5 tonne class machines, powered by 63.4 kW die-sel engines. Standard models provide a backhoe with a 3.2 m load height and 4.4 m dig depth, and a 0.96 m3 bucket capacity loader that can reach to 810 mm.

Considered to be one of the world’s largest construction markets, the Brazilian economy is forecast to grow 4% this year, however the country is still building stadiums ahead of the 2014 World Cup and is now, causing con-cern for FIFA. The Mato Grosso do Sul State Road Transport Project is financed with a $300 million loan from the World Bank. It will upgrade approximately 700km of road and see construction of a further 450km of state roads, with work predominantly based in Mato Grosso. A statement from the com-pany read: “The machines will be deployed to improve and open up thousands of miles of secondary roads in communities heavily dependent on farming, ensuring food gets to its final market much quicker.”

Wolffkran/ CECE Rental trends increasing amid price pressures

Figures quoted at Intermat Paris in April showed positive trends across Europe in the heavy machinery rental market, based on an “ongoing financially uncertain situation”.

Speaking during the show, Dr Peter Schiefer, CEO of Wolffkran and Chairman of CECE Section III (Committee for European Construction Equipment), also observed that both sales and rentals are on the rise in Europe, yet the industry is still facing “fierce price pres-sure” in the market place.

In addition, he also observed construction companies do not wish to make large invest-ments in equipment themselves, despite current interest rates making the investment in tower cranes for users “attractive” at this time.

“Following two very tough years for the construction business in the aftermath of the economic crisis in 2008, the market has shown clear signs of recovery in 2011, also positively affecting the tower crane industry,” Dr Shiefer commented.

“Both the sales and rental of tower cranes have picked up and the trend is continuing in 2012. However, the situation is still quite diffi-cult as we are currently facing a fierce price pressure. I do not believe in protecting the market by artificially keeping out low quality competition. We have to ensure that all cranes comply with the relevant legislation. If they do not, then they should not be allowed in the market” said Dr. Schiefer.

CECE recently published a booklet to help identify non-compliant cranes and promote safety regulations.

A round-up of the latest news and announcements from industry suppliers at INTERMAT Paris

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Volvo CEGold Innovation award presented

Volvo’s A40F, a full suspension articulated hauler with on board weighting system (OBW), has been awarded the top accolade out of 80 nominations at Intermat’s Innovation Awards, held during the 2012 Paris show.

Featuring active hydraulic suspension, six full hydraulic suspension cylinders, six nitro-gen/oil accumulators, six sensor positions and a dedicated electronic system for real time suspension management, it is 95% recyclable.

Adhering to European legislation 2002/44/CE and 2005-746 (JO 04/07/2005), hydraulic technology reduces vibrations for the driver by 30% and automatically limits speed if overloaded. The engine complies with Interim Tier 4/Stage III B exhaust emission regulations and can optionally run on biodegradable hydraulic oil. The auto-matic OBW logs all transported loads and displays data to the operator on a screen; the information can also be accessed remotely via Care Track, Volvo’s telematic system. This includes data on the amount of material transported and the fuel con-sumed by the vehicle.

“The potential of the onboard weighing system in unlocking the secret of hauler productivity shouldn’t be underestimated,” commented Anders Larsson, head of Volvo CE Technology.

The company will launch 60 new products in 2012, which combined with the 55 new products in 2011, means the last two years has seen the most fundamental overhaul of the company’s product portfolio in its history.

Liebherr Sales confirmed at Intermat

Liebherr director of sales and services, Holger Amann, has now confirmed the international machinery and equipment manufacturer secured sales worth €1million during the inaugural Intermat Middle East, held in Abu Dhabi last year.

The sales were made on two mobile tower crane orders for new clients, based in Abu Dhabi and Oman. Neither client has been identified.

The news came as Liebherr confirmed its participation in the second Intermat Middle East, to be held in October, where its most pop-ular machines will be showcased.

“This year we are going to exhibit a 100 tonne telescopic crawler crane and a 5-axle mobile crane, since those are the most popular types in the region,” Amann stated.

“Both models are not new to the market, but have a very good reputation. We will further exhibit three types of earthmoving equipment and maybe a mobile tower crane,” he added.

Inspired by environmental and regulatory drives across the region, Amann says the demand for efficient machinery is increasing, further aid-ing recovery and complementing the positive effects the UAE felt from the Arab Spring.

“Compared to 2009 and 2010, the economy started to recover at the end of 2011 and 2012 is very likely to be a record year for our Middle East operation,” he commented. The most signif-icant projects investments have included: US$28bn in the UAE’s Saadiyat Island; US$11bn in the UAE-wide Etihad Rail; US$91bn towards 2022 FIFA World Cup projects in Qatar; and US$95 bn in Madinat al Hareer, Kuwait.

Bell Equipment New E-Series unveiled

A new series of ADT machines has been unveiled by South African firm Bell Equipment during Intermat; featuring a wider hood and “more imposing style” the range will go into production in 2013.

“Groundbreaking” innovations include standard onboard weighing, keyless ignition, ‘HillAssist’, ‘Bin Tip Prevention’, auto park application and standard Turbo spin protec-tion. Machines for the European market will also have fuel efficiency measures built in.

“We believe that our D-series has success-fully met the challenges of the world’s job sites and has many strengths and features across the range that our customers would like to see carried forward in our product advancement,” said company chief executive, Gary Bell.

“Therefore we have adopted an evolutionary approach to the E-series, to build on the legacy of the D-series generation and our decades of experience in design and manufacture, rather than a revolutionary clean-sheet design.

“We’ve stuck to our design principles of delivering weight optimised, high production trucks with superior tractive effort but looked at ways of doing things smarter to provide customers with an even greater competitive advantage in their businesses,” he said.

“In our design brief we addressed the ease of building the E-series so that we could look to increase our already high levels of quality into the way we manufacture. By further improving on that we have been able to build an even more reliable and durable truck,” he added. In the name, ‘E’ stands for Evolutionary.

6%GROWTH RATE OF THE EUROPEAN CONSTRUCTION MARKET IN 2012

“I do not believe in protecting the market by artificially keeping out low quality competition. We have to ensure that all cranes comply with the relevant legislation. If they do not, then they should not be allowed in the market”

Page 58: The Big Project

To advertise please contact:

LIAM WILLIAMSAssociate publisherEmail: [email protected]: +971 4 440 9158

RHIANNON DOWNIE CAROLE McCARTHY Business Development Director Marketing and PR Executive Email: [email protected] Email: [email protected] Tel: +971 4 440 9156 Tel: +971 4 440 9157

www.buildgreen.ae

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Barely two years old, Manazil Steel Framing has already supplied its steel framing to 45 projects in the GCC. Marketed as the “modern method of construction” CEO maged mostafa says the success is an indication of the need to change how the industry builds

time for change

P recise, waste free and rapid. They’re not the first three words that spring to mind when describing construction in the Middle East but if you speak

to Manazil Steel Framing CEO Maged Mostafa, that’s all about to change.

“People are more aware today and therefore more demanding. Consumer awareness is on the rise, people are also conscious about money, and because they are more careful this will naturally filter out those who are not as efficient or competitive,” Mostafa observes.

“The trend is for more emphasis on quality and cost. For us we can easily compete in this environment. This is definitely the way the industry is going in the future. Why would you keep building methods the same way as your ancestors? It hasn’t changed for thousands of years, it doesn’t make sense,” he adds.

The competitive edge of Manazil’s products are embodied in a number of elements: steel framing is lightweight, thus reducing the depth of foundations and eradicating the concrete structure; steel in itself is

the strongest material on earth and highly recyclable; each part is pre-cut to the precise size using bespoke software and production methods to arrive on site, clearly labelled and ready to assemble.

“There is confidence in the market and more people are using our technology to reap the benefits of modern methods of construction. People are opening up their eyes to having houses that are more green and faster to build,” Mostafa says.

This year Manazil has launched the next step in its portfolio the cladding panel Ecomag, designed to extend the carbon, time and waste savings of a frame that can be used for inner and outer walls, partitions, roofing, tile backers, soffits, cladding and flooring.

“The core of a building isn’t just steel, it needs to be covered. So we thought, why not look into options to provide that? The cladding material can range from plywood to Gypsum board to fibre cement board to other kinds of man made material, but we found the most eco-friendly and best products in terms of physi-

“there is confidence in

the market and more people are using our

technology to reap the

benefits of modern

methods of construction”

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cal characteristics was the magnesium side-board,” Mostafa explains.

Ecomag’s prime component, magnesium, gives the panels a compressive strength of 3000 PSI; they do not emit harmful gasses and each panel is 100% recyclable. Other components include recycled sawdust, cloth and cardboard.

“This magnesium was the best option for us and we did our research and analysis and for-mula and we have been researching this and preparing for it. We have a product that is much more superior to fibre or gypsum board. It’s more resistant to water and of course any other environmental influences,” he adds, sharing that production will begin “in a few months”.

“Walls made from these panels save up to 30% on construction cost and up to 60% of con-struction time as compared with contemporary cement and brick construction,” Mostafa claims.

“As far as energy efficiency is concerned walls made of Ecomag save up to 35% on electricity bills, as this material requires less heating and cooling to maintain temperatures due to its ther-mal insulation properties,” he continues.

Green constructorProgressing from start up to global since the early 1990s, Manazil Steel Framing may have less than two years experience in the region, but it has already supplied its steel framing to dozens of projects, including Masdar and Saadiyat Island , Abu Dhabi.

“Of course the markets have witnessed a very tough time in the last few years, but I see signs from the number of enquiries the nature of them

in terms of seriousness and size. You can feel there is something boiling in the market,” Mostafa says.

The next step will be to certify Ecomag through local civil defence and the Emirates Quality Brand programme, to verify both fire and insulation tests, then establish contacts in the disciplines of design and architecture, to see steel framing and Ecomag specified earlier in the project lifecycle.

“Our system is totally flexible and we can work with any design. So we hope to work closely with the architect from very early on in the project to optimise our designs. That way we can know the openings for MEP, where the AC will be located, and we can strengthen these areas.

“If we are not brought in at the very start we still have a chance to adjust because we have a very flexible software,” Mostafa adds, describing the scope of Manazil’s potential operations as “very exciting”

“It is very important that our growth isn’t just

about steel or a specific technology. We consider ourselves to be technology leaders, we do not confine ourselves to one concept. We aim to have a fully integrated turnkey solution that is around green construction. We are not confin-ing ourselves. We tell our team all the time that we are green constructors,” he concludes.

ecomaG FIre ratInGSUp to 4 hours on a 15mm thickness 4 x 8’ panel. 3 hours on a 12mm thickness 4 x 8’ panel.

Compliant with ASTM (American Society for Testing & Materials International) E84 / UL 723 / ULC S102

Tested to BS (British Standard) 476 Part 4 (Non-Combustible)

Tested to BS 476 part 7 (Class 1) & EN – ISO 1716, 1182 (Class A1)

Tested to BS 476 Part 22 (Fire rating)

30%POTENTIAL SAVING ON CONSTRUCTION COSTS

60%POTENTIAL TIME SAVING USING ECOMAG, COMPARED TO BRICK AND CEMENT CONSTRUCTION

teStS reSULtS

Compressive Strength 3,000 PSI

Impact Resistance > 6 kJ/m2

Tensile Strength > 5.5 Mpa

Density 1000 Kg/m3

Moisture Absorption 26% maximum saturation (slow absorption rate)

Moisture Content 10%

Thermal Conductivity 0.216 (W/m-K)

Modulus of elasticity 6045 N/mm2

Flexibility 20.1 N/mm2

Surface Alkalinity 10 Ph

Thermal Expansion Hot/Cold 0.08%

Expansion in Water Less than < 0.03%

Combustibility / Fire Ratings

Non-combustible / 12mm exceeds2 hr 25min fire rating

Dimensional tolerance Thick 0.2mm / width 2mm / length 3mm / Sq. 3mm

Asbestos Analysis No asbestos

ABOVE: Maged Mostafa, Manazil CEO.

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Lighting the wayFrom a ‘eureka’ moment in Northern Ireland to an award for ‘outstanding achievements in fire safety’, Lightstep’s intelligent evacuation system is about to change how safety is regulated in public buildings

o n Wednesday May 23 Lightstep became global. Part of Jersey Group, the two-man start up from Ireland won its first

award for ‘outstanding achievements in fire safety’, shedding light on the world of health and safety in a way that could change how buildings are designed and evacuated.

“We have something that nobody else in the world has,” says executive chairman, Kieran Patterson. “You wonder how a little company from Northern Ireland achieves this, but we have and you feel very grateful for that,” he continues.

Pattersom was mid-way through a project to build a three story house in his native Ireland, when he was refused approval to com-plete the project by an “over-zealous building expert”, who demanded that – according to legislation – an evacuation system or an extra staircase would be needed in order to obtain the building permit.

“I started to research evacuation systems and there was nothing. There was the basic green man running and exit signs, but that was all,” Patterson recalls.

With construction on hold, it was while reading a newspaper that inspiration struck. Patterson spent the next few days locked in his office but was soon ready to present the fruits of his labour to the local building department.

Permission was granted and the house fin-

“We had something special so I went off on a couple of trade missions to america and europe and found nothing else like this in the market”

ished, but for Patterson it was far from the end. “We had something special so I went off on a

couple of trade missions to America and Europe and found nothing else like this in the market.”

The system itself was simple, an illuminated path to safety, triggered by smoke and heat. As the idea grew, sensors were added to the intel-ligence system which alerted people trapped inside buildings to safe exit routes and refuge areas; diverting them from hazards, blocked exits and crowds.

“The next step was to add the intelligence to it. When we discovered we had a method to re-route people around a building and away from a hazardous situation, it was like one of those ‘eureka’ moments. And here we are today in a hotel in Dubai, talking to The Big Project,” he continues.

Simple ideasThe system is now installed in a number of public and commercial buildings, with inter-ested reported in vertical markets such as oil and gas, hotels, office accommodation and even underway rail systems.

“The interest is coming from so many differ-ent vertical markets; Anywhere there is a crowd or it’s difficult to navigate people around a building or through difficult situations, Lightstep can help.

“The reaction we have had here is just unbe-lievable; it’s literally just a whirlwind of suc-cess,” Patterson shares.

While the primary benefit cited by Lightstep is the preservation of life, in business terms the product facilitates a shift in responsibility from building managers and owners to the system,

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“because we’re setting a new global standard on building and life safety, this business is dependent on advocate sponsors and partners who believe in what you are doing”

and likewise reduces risk for insurers. “Your most valuable asset isn’t the building,

but the people in it. If you lose your key indi-viduals, you lose more than what the building is going to cost to rebuild. There is a greater focus on life safety now,” explains sales man-ager Gary Brown, who admits that he feels so unsafe in the majority of hotels that he refuses to stay in a room above the sixth floor.

The idea is simple, triggered by heat, light and ‘human traffic’, sensors and lights are used to guide people away from danger and to a safe exit. Flashing lights can warn when and when not to leave the current location and will also guide away from hazards; even if the guided exit route is longer than it would nor-mally be, the guarantee from Lightstep is that it will be completely safe.

“It can react in milliseconds to a situation and that’s given us, a company from Northern Ireland, the chance to lead the way in the world of intelligent evacuation. If you search on the internet for intelligent evacuation sys-tems we come up number one in the world,” Patterson adds.

“The fact that the responsibility for looking after somebody’s life is handed to an intelli-gent system is one of those things that creates extra value for a building, its tenants, and its owners and managers.

“In terms of design, if this is considered from the desigvn phase, you could have three stairwells instead of four, for example” Patterson continues, while also adding that the product can be discretely installed and integrated into design, to be invisible unless activated.

Local partnerIn the Middle East Lightstep operates under the Jersey Group, the silent umbrella over 10 companies with a combined turnover of $100million. Yet is the sole responsibility of Gary Brown to build the network upon which the majority of business will be done.

“Because we’re setting a new global stand-ard on building and life safety, this business is dependent on advocate sponsors and partners who believe in what you are doing. The model is that you usually start at the bottom and work your way to the top, but what we are actually finding is that we are going in at that most senior business leader and owner level,” Brown explains.

Among the industries on Brown’s current list are cruise lines, many of whom are still feeling the effects of public distrust following the sinking of the Costa Concordia in Italy earlier this year.

Admitting it would take the business infra-structure of a global business to tap every market segment, the aim for the moment is clear: improve legislation and make Lightstep a norm, rather than a gimmick.

“In the next 12 months we will be focusing on pilot schemes and developing market share here in the GCC.

“We do not want to lose the momentum that has now been gained with the traction we have had here. We want to build upon this success and achieve our overall objective which is to become number one in the world of intelligent fire safety technology,” Brown says, adding: “We’re focussed on getting those early adopters and with that continuing to happen it’s a message to life safety depart-ments everywhere.

“Everybody deserves the right to life and I want to know that if I’m checking into a hotel or travelling on a subway, I will be able to get out alive.”

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description Construction of Smash Tennis Academy.Period 15/09/2013 Status Current Project

Budget $18,000,000 

remarks This project is in Qatar. Scope of work includes construction of (2 Nos.) indoor courts and (5 Nos.) open to sky courts. Local Hamad Bin Khalid Contracting Company has been awarded the main construction contract on this scheme. Local Hamad Bin Khalid Engineering Services LLC is the MEP contractor. Local EHAF Consulting Engineers is the main consultant and the local Qatar Engineering & Associates is acting as the design consultant. main consultant EHAF Consulting Engineers (Qatar)design consultant Qatar Engineering & Associatesmain contractor Hamad Bin Khalid Contracting Company - HBK- (Qatar)meP consultant Hamad Bin Khalid Engineering Services LLC - HBK- (Qatar)tender categories Construction & Contracting, Leisure & Entertainmenttender products Sports Complexes

UAE

� PRojECT NAME RESIDENTIAL ToWER CoNSTRUCTIoN PRojECT - REEM ISLANDProject number MPP2635-Uterritory Abu Dhabiclient Union National Bank (Abu Dhabi)address UNB Bldg., Salam Streetcity Abu Dhabi Postal/ ZIP 3865country United Arab EmiratesPhone (+971-2) 674 1600Fax (+971-2) 678 6080Web http://www.unb.co.aedescription Construction of a residential tower comprising a 3-level basement, 3-level podium and 25 floors of apartmentsClosing date June 10, 2012Status New Tender remarks This development will be built on Reem Island in Abu Dhabi. The total built-up area for the tower is about 47,400 square metres. It is understood that contractors have been given one more month to prepare bids for the main contract on this scheme and tender closing date has been extended from the previous

Qatar

� PRojECT NAME RABBAN SUITES PRojECTProject number OPR558-Qterritory Qatarclient Al Sarh Real Estate (Qatar)city Dohacountry QatarPhone (+974) 4487 7662email [email protected] http://www.rabbangroup.com description Construction of Rabban Suites comprising three basement floors, a ground floor, a mezzanine floor and (50) upper floorsStatus New Tenderremarks This tower will be located in the West Bay area of Qatar. The main construction contract is yet to be awarded. Local National Services & Contracting Company (NSCC) has been appointed to carry out the piling works. Local Arab Engineering Bureau is acting as the consultant.main consultant Arab Engineering Bureau (Qatar)Foundations, enabling and piling contractor National Services & Contracting Company - NSCC (Qatar)tender categories Prestige buildings, high-rise towers

� PRojECT NAME MoNDRIAN DoHA HoTEL PRojECTProject number OPR557-Qterritory Qatarclient Al Hamla Holding (Qatar)city Dohacountry Qatardescription Construction of Mondrian Doha Hotel comprising two basements, a ground floor, a podium and (25) upper floors.PeriodStatus Current Project

Budget

remarks This hotel will be located in Lusail area of Qatar. Local SEG Qatar has been appointed as the main contractor. Construction is already underway. Almost six floors have been completed. Local South West Architecture is acting as the design and supervision consultant. The hotel will be operated by Morgans Hotel Groupmain consultant South West Architecture

(Qatar)design consultant South West Architecture (Qatar)main contractor Societe d Enterprise & de Gestion - SEG W.L.L (Qatar)Aluminium products supplier Alumco Qatar WLL (Qatar)Steel products supplier Blue Steel Factory W.L.L (Qatar)Foundations, enabline and piling contractor Navayuga Engineering Company W.L.L (Qatar)tender categories Hotels, Prestige Buildingstender products High-rise Towers, Hotel Construction

� PRojECT NAME BRooQ RESIDENTIAL ToWER PRojECTProject number OPR559-Qterritory Qatarclient Private Investor (Qatar)description Construction of Brooq Residential Tower comprising two basements, a ground floor, a mezzanine floor and (43) upper floors.Status Current Project

Budget $110,000,000 

remarks This tower will be located at Al-Dafna in Doha and cover a built-up area of 4,203 square metres. Local Atlantic Contracting Company has been appointed as the main contractor. Design work is complete. main consultant James Cubitt & Partners (Qatar)design consultant Cico Consulting Architects & Engineers (Qatar)Financial consultant Doha Bank (Qatar)main contractor Atlantic Contracting Company (Qatar)tender categories Prestige Buildingstender products High-rise Towers

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deadline of May 10, 2012.main consultant Architectural Consulting Group - ACG (Abu Dhabi)main architect Foster & Partners (Abu Dhabi)Project manager Northcroft Middle East (Abu Dhabi)tender categories Prestige Buildings, High-rise Towers

� PRojECT NAME AL-HABTooR PALACE HoTEL PRojECTProject number MPP2570-Uterritory Dubaiclient Al Habtoor Group L.L.C. (Dubai)city Dubaiaddress Near Metropolitan Hotel, Sheikh Zayed RoadPostal/ ZIP 25444country United Arab EmiratesPhone (+971-4) 343 1111Fax (+971-4) 343 1140email [email protected] http://www.habtoor.comdescription Construction of 36-storey Al-Habtoor Palace Hotel comprising a 226-room luxury hotel, a fashion hotel with (424) rooms and a 996-room hotel, including a five-star spa, a sports academy, multiple theme restaurants, meeting facilities, a shopping arcade and a theatre showing productions from Broadway and Las Vegas.Period 2016 Status Current Project 

Budget $1,300,000,000 

remarks This hotel will be located on Sheikh Zayed road in Dubai. It will be built on the property that is currently housing the Metropolitan Hotel, opposite Al Safa Park. The new hotel will comprise 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. Once completed, the complex will be one of the region's most luxurious hotel and entertainment developments. The landmark development will include:- 1,600 hotel rooms, spread between three hotels (lifestyle, luxury and main);- An iconic Las Vegas-style 'aqua' theatre;- A French provincial-inspired garden; and- Food and beverage venues.Local/Australian joint venture Habtoor Leighton Group (HLG) has been awarded a $515 million contract on this scheme. Under the agreement, HLG will be

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responsible for construction of the integrated hotel complex comprising a five-level podium, a 36-storey tower and a 25-storey tower within a total gross floor area of 350,000 square metres. Early works are likely to begin in June 2012. The development is scheduled for completion in second half of 2016. design consultant atib & Alami Consolidated Engineering Company (Dubai)main contractor Al Habtoor Leighton L.L.C (Dubai)tender categories Hotels, Prestige Buildingstender products High-rise Towers, Hotel Construction

� PRojECT NAME DUBAI MoDERN ART MUSEUM & oPERA HoUSE DISTRICT PRojECT - DoWNToWN DUBAIProject number MPP2624-Uterritory Dubaiclient Emaar Properties PJSC (Dubai)city Dubaiaddress Emaar Business Park, Bldg. No. 3, Near Interchange No. 5, Shaikh Zayed RoadPostal/ ZIP 9440country United Arab EmiratesPhone (+971-4) 367 3333Fax (+971-4) 367 3333email [email protected] http://www.emaar.comdescription Construction of Dubai Modern Art Museum and Opera House District comprising a modern art museum, an opera house, cultural facilities, including two hotels, studios and leisure facilities.Status New Tenderremarks This project will be located next to Burj Khalifa development in Downtown Dubai area. The Cultural District is part of Dubai’s efforts to expand the cultural infrastructure.tender categories Leisure & Entertainment, Hotels, Construction & Contractingtender products Hotel Construction, Museums/Art Galleries

� PRojECT NAME BINARY ToWER PRojECT - BUSINESS BAYProject number MPP1675-U territory Dubaiclient Omniyat Properties (Dubai)city DubaiPostal/ ZIP 30166country United Arab EmiratesPhone (+971-4) 306 3300Fax (+971-4) 306 3333email [email protected] http://www.omniyat.comdescription Construction of 25-storey Binary Tower offering commercial spaces.Period 2014 Status Current Project

ESTIMATING AND PROJECT CONTROL

Budget $149,000,000 

remarks This project will be developed at Business Bay in Dubai and offer commercial space with waterfront views of the Business Bay area. Office space will range from 600 square-feet to 1,935 square-feet. The civil contracting unit of Dubai-based Drake & Scull International (DSI) has been appointed as main contractor to build the tower. The contract is worth $54.5 million. Project manager Hamilton Project Management (Dubai)main contractor Drake & Scull International PJSC (Dubai)tender categories Prestige Buildingstender products High-rise Towers

� PRojECT NAME RESIDENTIAL ToWER PRojECT - AL REEM ISLANDProject number MPR1389-Uterritory Abu Dhabiclient Aabar Properties L.L.C (Abu Dhabi)city Abu Dhabiaddress Abu Dhabi Trade Centre (Abu Dhabi Mall), East Tower, 4th FloorPostal/ ZIP 37624country United Arab EmiratesPhone (+971-2) 222 2233Fax (+971-2) 222 2333email [email protected] http://www.aabarproperties.comdescription Construction of 23-storey residential tower comprising a total of 229 apartments, including two podium levels, three basement floors and a roof.Period 2014 Status Current Project 

Budget $60,000,000 

remarks This tower will be located on Plot C14 of the Najmat Abu Dhabi section within Al Reem Island in Abu Dhabi. Local Arabtec Construction has been appointed as the main contractor on this scheme. Contract covers construction, completion, testing, commissioning, hand over and maintenance of tower. Project completion is expected in the first quarter of 2014.design consultant KEO International Consultants (Abu Dhabi)Project manager Confluence Project Management (Abu Dhabi)main contractor Arabtec Construction L.L.C (Abu Dhabi)tender categories Prestige Buildingstender products High-rise Towers

� PRojECT NAME RESIDENTIAL ToWERS PRojECT - GREENS DEVELoPMENT

Project number MPP2646-Uterritory Dubaiclient Emaar Properties PJSC (Dubai)city Dubaiaddress Emaar Business Park, Bldg. No. 3, Near Interchange No. 5, Shaikh Zayed RoadPostal/ ZIP 9440country United Arab EmiratesPhone (+971-4) 367 3333Fax (+971-4) 367 3000email [email protected] http://www.emaar.comdescription Construction of two mid-rise residential towers in Greens.Status New Tender remarks The project, also known as Plots 30 and 31, will be located alongside Cultural District and on an island next to Westside in Dubai. It will contain modern art museum, an opera house and other cultural facilities. client has received bids from companies for the main contract to build the project. tender categories Construction & Contractingtender products Residential Buildings

� PRojECT NAME MILITARY MAINTENANCE HANGARS CoNSTRUCTIoN PRojECTProject number MPP2642-Uterritory Abu Dhabi client Mubadala Development Company - MDC (Abu Dhabi)city Abu Dhabi address Al Muroor RoadPostal/ ZIP 45005country United Arab EmiratesPhone (+971-2) 413 0000Fax (+971-2) 413 0001Web http://www.mubadala.aedescription Construction of hangars that will be used for the repair of fixed-wing and rotary-wing aircraft for the military, together with other support buildings.PeriodStatus New Tender 

Budget $409,000,000 

remarks This project is in Abu Dhabi. UK’s Atkins and US-based Aecom are acting as the main consultants. Three groups competing to build the Advanced Military Maintenance Repair Overhaul Centre (AMMROC) include:- Greece’s Aktor and Local/Lebanese Arabian Construction Company (ACC)- Local/UK’s Al-Futtaim Carillion and Local Al-Fara’a General Contracting- Germany’s M+W Group and Local Commodore Contracting Company.main consultant WS Atkins & Partners Overseas (Abu Dhabi), AECOM Middle East (Abu Dhabi)tender categories Airport, Construction & Contracting

tender products Airports Development & Management

� PRojECT NAME SILICoN METAL SMELTER CoNSTRUCTIoN PRojECTProject number MPP2641-Uclient Al-Braik Investments LLC (Dubai)city Dubai addressPostal/ ZIP 111469country United Arab EmiratesPhone (+971-4) 430 9453Fax (+971-4) 430 9454email [email protected] http//:www.albraik.aedescription Construction of a silicon metal smelter.Period 2015 Status New Tender

Budget $178,000,000 

remarks This project will be located at Khalifa Industrial Zone of Abu Dhabi (Kizad). An agreement has been signed between the client and Abu Dhabi Ports Company (Adpc) to develop the scheme. The smelter will produce high-grade silicon, which is used as an alloying agent to improve the strength of wrought aluminium alloys. Aluminium producers in the GCC currently import high-grade silicon from outside the region. Construction is expected to begin at the 316,413-sqaure metre site in 2013, with completion set for 2015. main consultanttender categories Industrial & Special Projectstender products Mining & Metals

� PRojECT NAME INFRASTRUCTURE WoRkS CoNTRACT - kHALIFA PoRT & INDUSTRIAL ZoNEProject number MPR1338-Uterritory Abu Dhabiclient Abu Dhabi Ports Company (ADPC)city Abu Dhabiaddress Mina ZayedPostal/ ZIP 422country United Arab EmiratesPhone (+971-2) 673 0600 / 673 2600 / 673 0051Fax (+971-2) 673 1023 / 697 5174email [email protected] http://www.portzayed.gov.aedescription Implementation of infrastructure works involving construction of one road bridge, two rail bridges and other general infrastructure such as culverts, storm water drainage, sewerage, substations and pumping stations at

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Budget $7,000,000,000 

remarks This project will be developed on Riyadh - Dammam highway in the northeastern outskirts of Saudi Arabia and cover an area of 1,600 hectares. It is understood that the serviced bungalows are expected to be managed by Fairmont Hotels & Resorts. It is understood that the client is set to commence work on this development. Local Omrania, an architectural and engineering consulting firm based in Saudi Arabia, has been awarded the master plan design and infrastructure contract. The contract also includes provisional sums for traffic and environmental studies. As part of their service, Omrania's contract will include the coordination and approval of all master planning elements, as well as liaison with local authorities. The consultancy will also supervise all the infrastructure work on site.  main consultant Omrania & Associates Architecture & Engg. Consultants (Saudi Arabia)Specialist consultant Booz Allen & Hamilton (USA)Master plan consultant Omrania & Associates Architecture & Engg. Consultants (Saudi Arabia)tender categories Hotels, Construction & Contracting, Leisure & Entertainmenttender products Commercial Buildings, Hotel Construction, Mixed-use Developments, Residential Buildings, Retail Developments

� PRojECT NAME kING kHALID INTERNATIoNAL AIRPoRT ExPANSIoN PRojECTProject number MPP2296-SAterritory Saudi Arabiaclient General Authority of Civil Aviation - GACA (Saudi Arabia)city Jeddah 21421address Bin Malek Street, Old Airport AreaPostal/ ZIP 887country Saudi ArabiaPhone (+966-2) 640 5000Fax (+966-2) 640 1477email [email protected] http://www.gaca.gov.sadescription Carrying out expansion of King Khalid International Airport.Period 15/11/2013Status New Tenderremarks This airport is located about 35 kilometres North of Riyadh in Saudi Arabia. Expansion will increase the airport’s annual capacity to about 24 million passengers from the current 14 million. Scope of work involves construction of a new terminal, Terminal 5, including renovation of the existing Terminal 3 and Terminal 4, as well as adding (4) new concourses – A, B, C and D. Preliminary studies and design work for this development has been completed. Construction is expected to commence within six months and completed by

Khalifa Port & Industrial Zone (KPIZ).Period 15/10/2012 Status Current Project 

Budget $132,000,000 

remarks This project is in Abu Dhabi. The agreement is for construction, fit-out, testing and commissioning of civil and structural works for Industrial Zone Area 'A'. The contract includes construction of a 4.5-kilometre, three-lane carriageway and a 1.5-kilometre, four-lane carriageway linking the onshore port to the industrial zone. It also features the construction of seven 11kV substations and pumping stations as well as the provision of site-wide utilities such as electricity, telecom, potable water, combined wastewater and irrigation. Athens-based Consolidated Contractors Company (CCC) has received a letter of intent to carry out the main contract. It is understood that construction of culverts, storm water drainage, sewerage, substations and pumping stations has already been completed. Bridge construction work is in finishing stage. Installation of directions and signalling is ongoing. Project completion is expected within four months. main contractor Consolidated Contractors International Co. Ltd. - CCC (Abu Dhabi)Project manager Bechtel (International) Company Limited (Abu Dhabi)tender categories Public Transportation Projects, Power Plants & Alternative Energy, Water WorksSewerage & Drainage, Roads, Bridges & Infrastructuretender products Bridges Construction, Infrastructure Works, Sewerage/Drainage Pipelines & Pumping Stations

Saudi Arabia

� PRojECT NAME MIDYAN GAS FILED DEVELoPMENT PRojECTProject number MPP2647-SAterritory Saudi Arabiaclient Saudi Arabian Oil Company (Saudi Aramco)city Al Khobar 31952address Saeed Tower, Dammam-Khobar HighwayPostal/ ZIP 151country Saudi ArabiaPhone (+966-3) 872 0115 / 810 6999Fax (+966-3) 873 8190Web http://www.saudiaramco.comdescription Engineering, procurement and construction (EPC) contract for the development of non-associated gas from onshore Midyan field to produce 75 million cubic feet a day (cf/d) of gas and 4,500 barrels a day (b/d) of condensate for a

Period of (20) years.Period 2015 Status New Tenderremarks This project is in Western Province of Saudi Arabia. The output will be transported by pipeline to a power plant in the coastal town of Duba that is 135 kilometres to the Southwest of the field. Field has been developed to alleviate the burning of crude oil for power generation in the Northwest of the Kingdom during summer months. It has number of small non-associated gas fields that are also expected to be exploited to provide gas for power generation. US’ Mustang Engineering has been awarded the front-end engineering design (FEED) contract on this scheme. Mustang will carry out the design of upstream and processing facilities at the field, as well as pipeline to transport gas and condensate. It has been awarded the project under the terms of general engineering services plus (GES plus) contract that has been initiated by client. FEED is now being carried out. EPC contracts will be tendered in the third quarter of 2012, with an award expected in November 2012. Contracts will be tendered on a lump-sum turnkey basis and the completion scheduled for 2015.FEED consultant Mustang-HDP (Saudi Arabia)tender categories Gas Processing & Distribution, Oilfields & Refineriestender products Gas Exploration & Production, Gas Processing & Separation

� PRojECT NAME MIxED-USE DEVELoPMENT PRojECT - oBHUR DISTRICTProject number MPP2633-SAterritory Saudi Arabiaclient Rayadah Investment Company (Saudi Arabia)city Riyadh 11564Postal/ ZIP 56850country Saudi ArabiaPhone (+966-1) 205 9911Fax (+966-1) 205 9922email [email protected] http://www.raid.com.sadescription Design and construction of a 2.4 million square metre mixed-use development in Obhur, which includes (240 Nos.) residential towers, (1,200 Nos.) villas, a five-star hotel, hospital, clinics, mosques, commercial district, schools and municipal buildings.PeriodStatus New Tenderremarks This project is at Jeddah in Saudi Arabia. client has received prequalification entries for an infrastructure package on the residential scheme and is planning to issue tender documents for the contract by July 2012. Local office of KEO International Consultants has been appointed as the Project manager on this development Project manager KEO International Consultants (Saudi Arabia)

tender categories Construction & Contracting, Hotels, Medical & Healthcaretender products Hospital Consumables, Hotel Construction, Mixed-use Developments

� PRojECT NAME ASSILA ToWERS PRojECTProject number NPR002-SAterritory Saudi Arabiaclient AMIAS Real Estate Company Ltd. (Saudi Arabia)city Jeddahcountry Saudi Arabiadescription Construction of 60-storey Assila Towers comprising a five-star hotel with (242) rooms and (104) serviced apartments.Status Current Project remarks This project is in Jeddah and will cover a built-up area of 46,949 square metres. The tower will consist of two basement levels below ground. It is understood that the hotel will be managed and operated by Rocco Forte Hotels. Local construction company Al Saad General Contracting has been awarded the main construction contract on this scheme. Dubai-based construction firm Drake & Scull International (DSI) has been awarded an estimated $37 million turnkey contract to carry out the mechanical, electrical and plumbing (MEP) works.main architect Mohammed Harasani Architects (Saudi Arabia)design consultant Perkins & Will (USA)MEP contractor Drake & Scull International (Saudi Arabia)main contractor Al Saad General Contracting (Saudi Arabia)tender categories Prestige Buildings, Hotelstender products High-rise Towers, Hotel Construction

� PRojECT NAME kINGDoM RIYADH LAND MIxED-USE DEVELoPMENT PRojECTProject number OPR519-SAterritory Saudi Arabiaclient Kingdom Holding Company (Saudi Arabia)city Riyadh 11321 address 66th Floor, Kingdom CentrePostal/ ZIP 1country Saudi ArabiaPhone (+966-1) 211 1111Fax (+966-1) 211 1112email [email protected] http://www.kingdom.netdescription Development of a multi-purpose 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.Status New Tender 

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November 2013. client has invited companies to submit bids for the project management consultancy (PMC) contract on this scheme. Firms have until June 16, 2012 to submit bids.main consultant Airport, Construction & Contractingtender categories Airports Development & Management

� PRojECT NAME ELASToMERS PRojECTProject number MPP2565-SAterritory Saudi Arabiaclient Saudi Basic Industries Corporation (SABIC)city Riyadh 11422address Postal/ ZIP 5101country Saudi ArabiaPhone (+966-1) 225 8000/ 225 9701Fax(+966-1) 225 9000email [email protected] http://www.sabic.comdescription Engineering, Procurement and Construction (EPC) contract for the development of a new elastomers project, which will produce more than 400,000 tonnes of rubber, thermoplastic specialty polymer and carbon black.Period Status Current Project 

Budget $2,000,000,000 

remarks This project is at Jubail in Saudi Arabia. It is being implemented in joint venture with US' ExxonMobil. A new company known as Kemya has been established for this purpose. US-based Jacobs Engineering, Japan's Mitsui Engineering & Shipbuilding and US-based Fluor have been awarded the front-end engineering and design (FEED) contracts. Bids have been submitted for the EPC contracts on this scheme. Contractors submitted bids for five packages on a lump-sum turnkey (LSTK) basis. The packages include:· Methyl Tertiary Butyl Ether (MTBE)· Utilities and off sites· Ethylene Propylene Diene Monomer (EPDM)· Polybutadiene Rubber (PBR)· Carbon Black PlantOne package, a Halobutyl Rubber Plant (HRP), is being carried out by the US’ Jacobs Engineering on an engineering, procurement, construction and management (EPCM) basis due to intellectual property concerns by ExxonMobil. A decision regarding the awards is expected within (2) months. UK's HSBC has been appointed as the financial adviser. It is understood that no local banks received the request for proposals

(RFP) seeking a financial adviser. Banks are expected to be approached to fund this development in late 2012.Financial consultant HSBC Ltd. (Saudi Arabia)FEED consultant Jacobs Engineering (Saudi Arabia), Mitsui Engineering & Shipbuilding Arabia Ltd. (Saudi Arabia)main contractor Jacobs DCSA (Saudi Arabia)tender categories Industrial & Special Projectstender products Chemical Plants, Plastics Manufacturing Plants

Iraq

� PRojECT NAME AL-RISAFA SPoRTS STADIUM PRojECTProject number MPP2648-IQterritory Iraqclient Ministry of Youth & Sports (Iraq)city Irbil, Kurdistancountry IraqPhoneFaxemailWebdescription Construction of Al-Risafa sports stadium with capacity of 30,000 seats.PeriodStatus New Tender

Budget $100,000,000 

remarks This project is in Iraq and will be designed to comply with world football’s governing body FIFA standards. US-based Hill International has been awarded an estimated $3.3-million three-year project management contract to oversee the construction of the stadium.Project manager Hill International, Inc. (USA)tender categories Construction & Contracting, Leisure & Entertainmenttender products Sports Complexes

� PRojECT NAME RUMAILA oIL FIELD DEVELoPMENT PRojECTProject number SPR1337-IQterritory Iraqclient South Oil Company (Iraq)city Basrahaddress South Oil Company Complex, Bab Al Zubair AreaPostal/ ZIP 21country IraqPhone (+964-40) 319 310email [email protected]

Web http://www.soc-basrah.comdescription Engineering, procurement and construction (EPC) contract for the development of Rumaila oil field to increase production from 1.05 million barrels a day (b/d) to 2.85 million b/d.

Budget $15,000,000,000 

Period 2017 Status Current Project remarks This project is in Iraq. Scope of work includes 3D seismic testing of the field, which is estimated to hold about 18 billion barrels of oil. The consortium of UK's BP and China National Petroleum Corporation has been awarded the rights to re-develop this field. UK's Petrofac has been awarded a $90 million contract to carry out inspection, maintenance and repair works on this scheme. UK's Hermes Datacomms has been awarded a communications contract by BP for providing support at the Rumaila oilfield operations. As well as support for very small aperture terminal (VSAT) communications, Hermes will continue to support degassing stations, rigs and static life support camps. The contract includes additional bandwidth to South and North Rumaila sites for offering load sharing. The company will use a separate satellite provider, Yamal 200 to ensure complete independence from their existing link. Hermes has not disclosed the value of this contract. Italy office of US' GE Oil & Gas has been awarded a $40-million sub-contract to supply pumps and gas engines on this scheme. It is understood that FEED study is currently in progress and expected to be completed in the second quarter of 2012. Project is expected to be completed in 2017. FEED consultant WorleyParsons (Abu Dhabi)main contractor BP Plc. (UK), China National Petroleum Corporation - CNPC (China)Specialist contractor Petrofac International (UK), GE Nuovo Pignone (Italy)Communications, equipment and systems supplier Hermes Datacomms (UK)tender categories Oilfields & Refineriestender products Oilfields Exploration & Development

Bahrain

� PRojECT NAME STEEL MINI-MILL CoNSTRUCTIoN PRojECTProject number MPP2628-Bterritory Bahrainclient Foulath (Bahrain)city Hiddaddress C/o. Gulf Industrial Investment Company, GIIC Bldg., Al Hod Al Jaf Street,

Hidd Industrial AreaPostal/ ZIP 50177country BahrainPhone (+973) 1746 4222Fax (+973) 1767 6161email [email protected] http://www.giic.com.bhdescription Engineering, procurement and construction (EPC) contract to build a 750,000 tonnes per year (t/y) steel shop with a 600,000 t/y rolling mill.Status New Tender remarks This project will be located next to Hidd Steel Mill in Bahrain. It is still in the planning stage. client is planning to dismantle and sell the process machinery it uses to produce 100,000 tonnes a year (t/y) of stainless steel and instead install a rebar mill with a capacity of 600,000-t/y. Any of the equipment that is skid mounted will be sold. Tender to complete the conversion has been added to this scheme and was released to interested technology providers in the first quarter of 2012. Technical proposals have been submitted and are under evaluation with commercial bids due in the second quarter of 2012. The bidders include: Italy’s Danieli Corporation; Germany’s SMS Group and Austria’s Siemens Steel. When completed the steel mini-mill will have a capacity of 900,000-t/y and off-take will be used for the rebar mill with the excess being sold. tender categories Industrial & Special Projectstender products Steel Mills

oman

� PRojECT NAME SoHAR ALUMINIUM RoLLING MILL PRojECTProject number ZPR502-Oterritory Omanclient Takamul Investment Company (Oman)city Muscat 130address Bayt Muscat Bldg., Mezzanine Floor, Al GhubraPostal/ ZIP 1951country OmanPhone (+968) 2452 9000Fax (+968) 2449 4986email [email protected] http://www.takamul.comdescription Engineering, Procurement and Construction (EPC) contract to build an aluminium rolling mill in Sohar with initial production capacity of 140,000 tonnes per annum.Period 2014Status Current project

Budget $400,000,000 

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remarks This project is in Oman. The scheme is being implemented by client's subsidiary Oman Aluminium Rolling Company. Production capacity is expected to be increased to 160,000 tonnes per annum after twelve months of completion, in 2014. Italy's Fata Engineering & Construction has been appointed as the EPC contractor. Local Teejan Construction is acting as Fata's local partner for the civil work contract on this scheme. Continuous casting, which is the latest technology in aluminium rolling, will enable the project to use molten aluminium supplied by the client for manufacturing rolled coils. This will enable the client to produce aluminium sheets of very thin gauges and high surface quality with shorter product delivery time and lower energy cost. Civil and building works are currently underway. The equipment has been purchased. Shipments with equipment will be received soon. Partial hand over of the project is scheduled for August 2013. main contractor Fata Group (Italy)Civil engineering contractor Teejan Trading & Contracting Company L.L.C (Oman)tender categories Industrial & Special Projectstender products Steel Mills

� PRojECT NAME SALALAH IWPP 2Project number ZPR694-Oterritory Omanclient Oman Power & Water Procurement Company S.A.O.Ccity Ruwi PC 112address Muscat International Centre, 2nd Floor, Suite 504Postal/ ZIP 1388country OmanPhone (+968) 2482 3028 / 2482 3000email [email protected] Web http://www.omanpwp.co.omdescription Construction of an independent water and power project (IWPP) with capacity of 250MW gas-fired power plant and 10 million imperial gallons a day (MIGD) of desalination plant in Salalah.Period 2016Status New TenderBudget This project is in Oman. Purpose of the project is to meet increasing demand for power and potable water in the region. The project is currently under planning stage. Request for proposals (RFP) for the technical consultancy services is expected to be issued soon. Project completion is expected in 2016.tender categories Power Plants &

Alternative Energy, Water Workstender products Independent Water & Power Plants (IWPP)

Iran

� PRojECT NAME ESFAHAN LRT PRojECTProject number MPP2589-IRterritory Iranclient Esfahan Urban Railway Organisation (Iran)city Esfahanaddress Near Chamran Bridge, Kaveh HighwayPostal/ ZIP 81389country IranPhone (+98-311) 435 8410Fax (+98-311) 435 8422email [email protected] http://www.esfahanmetro.orgdescription Construction of Esfahan light-rail transit (LRT) scheme comprising five lines.PeriodStatus New Tender

Budget $1,900,000,000

Post date February 1, 2012 remarks This project is in Esfahan, about 400 kilometres south of Tehran. The LRT comprises five lines. First is the main line, which runs 12.5 kilometres north-south and has (15) stations. Lines two and three also run north-south and are 21.9 kilometres and 16 kilometres respectively. Line four runs south-west and will be 43 kilometres, while the fifth line will run 20 kilometres east-west across the city. The scheme is being financed through the government's civil projects division. client has invited companies to submit bids for a contract to supply railway track. The deal involves supplying 2,000 tonnes of rail bars to be used in construction of the LRT project. Local Hexa Consulting Engineers has been appointed as the consultant. A group comprising local Metra Consulting and France's Systra is carrying out the civil works for Line 2.main consultant Hexa Consulting Engineers (Iran)Civil engineering contractor Systra (France), Metra Consulting Engineers (Iran)tender categories Public Transportation Projectstender products Railways

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DUSTRY EVENTS

GLobaL trendS

84% Reported slump in Rusal’s Q1 earnings as global aluminium prices declined

$14.7bn Q1 sales reported by Dow Chemical; a 4% increase on 2011

48m tonnes the aim for Iran’s steel production by 2017, according to president Ahmedinnejad

3.6m tonnes of raw steel produced by Iran Q1, 2012; 6.8% increase on last year

$150bn value of GCC projects to be awarded by 2013

ME Environment Industry Meetatlantis, the Palm Jumeirah, dubai: June 4

Organisers Frost & Sullivan present opportunities in the growing Middle East environment market. The

meet will conclude with Frost & Sullivan Environment Excellence Awards on June 4, 2012 at Atlantis, The

Palm, Dubai, UAE. 

Iraq Buildbaghdad International Fairground: June 4 – 7

International exhibition designed so suppliers and builders of construction and building equipment can be brought together under a single roof along with

investors and other market analysts.

Project Lebanonbeirut International exhibition &

Leisure centre: June 5 – 8 The largest gathering of its kind for building sector

professionals, with unrivaled opportunities for suppliers to expand their business at the centre of one of the

world’s largest rebuilding projects.

Smart City ME ritz carleton, dIFc, dubai: June 6 – 4

A learning platform for those seeking ICT solutions and strategies to design, build and manage future cities,

in the face of accelerated urbanization, infrastructure bottlenecks and rising resource depletion. Smart Cities World MENA 2012 addresses strategic and technology

master planning for smart urban infrastructure.

Interbuild Egyptcairo International convention & exhibition centre:

June 21 – 25 Dedicated towards the theme of Building for the

future, materials for better environment and energy saving construction techniques will be showcased by

the exhibitors at global scale. Attended by researchers and experts linked to the different building and

construction fields, including consultants, engineers, contractors and real estate developers

Building Iraqbaghdad International Fairground: June 30 – July 3

Showcasing building materials and systems, construction equipment, prefabricated buildings, roads

and flyovers, construction tools, marble granite and ceramics, kitchen and bathroom products, landscaping,

safety and security equipment, air-conditioning, lighting, flooring, interiors, specialist vehicles detection

equipment, floor finishes, identification systems, interiors and lighting, locking qquipment, marble and

granite products, rescue and emergency equipment and security doors.

Smart Investment & International Property Expo Hong kongHong Kong convention & exhibition centre: June 2 – 3 The largest show of its type in Hong Kong, the Smart Investment & International Property Expo is set at Hong Kong Convention & Exhibition Centre (HKCEC).

China GRIthe Portman ritz-carlton, Shanghai, china: June 6 – 7 Bringing together the leading decision makers of global real estate investors, financiers and Chinese developers, China GRI will address the challenges and opportunities created by the market correction in China. Like all GRI meetings, the China GRI will have no speakers, no panelists, just closed door intimate conversations in small groups where all present participate.

Comms Expobarbican exhibition centre, London: June 26 – 27 The new international conference and exhibition for the network infrastructure industry, it will be held at London’s prestigious Barbican Centre on June 26 and 27 and is organized by HF Network Limited.

Singapore International Water WeekSands expo and convention center, marina bay Sands: July 1 – 5In the face of global urbanisation and climate challenges, the 2012 theme “Water Solutions for Liveable and Sustainable Cities” reinforces the pressing need to integrate sustainable water management strategies into the urban planning process.Singapore International Water Week 2012 provides the platform to address these challenges and explore opportunities in the integration of water solutions and urban planning in cities around the world.

DIARY JUNE 2012

MENA INTERNATIONAL

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Guangdong Build UAE 2012 Exhibition

   

Date: 18-20 June 2012Time: 10:00am-7:00pmVenue: China Town Building Materials Center Location: Sharjah No.10 Industrial Area, Sharjah Ring RoadProducts: All kinds of Building Materials & home decorations

More than 5000 custoMers are invited froM the Gcc and africa.

the exhibition is held by ccPit GuanGdonG, china and GuanG-

donG eMirates business union.

ContaCt:

tel: 06-5429350 | 050-4609888 | 055-8528809Email: [email protected] |[email protected]

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