construction week - issue 324

ANALYSIS DO ASIAN CONTRACTORS CREATE FIERCE COMPETITION?

Recycling plantCrushed concrete made road ready

Page 34

Compliance costs What’s the price for

peace of mind?Page 40

Sustainable facility Plan to build green

from the outsetPage 44

BUILD AND

DELIVER Emaar’s Mohammed

Alabbar on successful project delivery, business

expansion and future plans

W

SuPla

Emaar’s MAlabbar on s

project delivery,expansion and fut

p j y,

JUNE 5–11, 2010 • ISSUE 324NEWS • ANALYSIS • INTELLIGENCE • PROJECTS • CONTRACTS • TENDERS

CONSTRUCTIONWEEKONLINE.COMAN ITP BUSINESS PUBLICATION LICENSED BY DUBAI MEDIA CITY

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JULY 5-11, 2010 CONSTRUCTION WEEK 1

COMMENT

JUNE 5-11, 2010 • ISSUE 324

28Mohammed Alabbar talks to Construction Week about the build up to the opening of the Armani Hotel, and the achievements of Emaar in the fi rst half of 2010

CONTENTS

10 WEALTH CHECK16 EDITOR'S LETTER18 GUEST COLUMN56 FOREMAN

4 BAGHDAD AIRPORT CONTRACTSDetails are yet to be clarifi ed

surrounding speculation that Baghdad’s International Airport is to gain three more terminals.

8 DEPA SHARES ROCKET 44% Depa Interiors has seen a record rise in its share price during Q1 2010, following its announcement of a strong order book.

44 FACILITATING SUSTAINABILITYHow involving FM fi rms at the start of a project is a good way to ensure sustainable systems are implemented.

12 UK SPENDING CUTS HIT UAE Cuts in UK public spending may impact local fi rms.

40 THE COST OF COMPLIANCE Successful project management comes down to meeting contract without compromising quality.

REGULARS

24 LAND OF THE RISING SUMS CW looks at how contractors and developers from China and the Far East countries have been adding to the fi erce competition in the GCC.

ANALYSIS

INTELLIGENCE

FINANCE

SUSTAINABILITY

ON SITE

34 ON THE ROAD AGAINA crushing plant in Abu Dhabi has placed itself at the quarry face of sustainable construction, recycling concrete into aggregate for use in road building.

28 THE DREAM BUILDERIn less than six months, Mohammed Alabbar has delivered two of the world's most eagerly awaited projects. How did he do it?

FACE TO FACE

COMPLIANCE

ROUND UP

2 CONSTRUCTION WEEK JUNE 5-11, 2010

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ConstructionWEEK NEWS, ANALYSIS, PROJECTS,

TENDERS, CLASSIFIEDS, ANDJOBS IN THE MIDDLE EAST

MAY 15-21, 2010 [321]CONSTRUCTIONWEEKONLINE.COMAn ITP Business Publication | Licensed by Dubai Media City

SPECIAL ISSUE

PLUS:

AL GHARBIA

FOCUSpage 36

50 COMPANIES CHANGING THE FACE OF GCC AIRPORTS50 COMPANIES CHANGING THE FACE OF GCC AIRPORTSAIRPORT A-Z

CITY FOCUSJUBAILpage 52

INSIDENEWSSmall companies need big company attitudes to issues of safetyPAGE 9

COMMENTSaeed Alabbar on the benefi ts of concurrent engineering in sustainable designPAGE 18

ANALYSISWhat Abu Dhabi’s new HSE regulations mean for contractors PAGE 24

SITE VISITPre-cast and post tensioning works the Saudi Binladin wayPAGE 35




MAY 22-28, 2010 [322]CONSTRUCTIONWEEKONLINE.COMAn ITP Business Publication | Licensed by Dubai Media City

SPECIAL PROGRESS REPORT

SAUDI ARABIA’S ECONOMIC CITIES COULD CHANGE THE FACE OF THE INDUSTRY. CAN THEY SUCCEED?

Saeedbenefi ts engineer

SAUDI ARABIA’S ECONOMIC CITIES COULD CHANGEECONOMY OF SCALE ble design

8sustainabPAGE 18

PRODUCT FOCUSHEATING SYSTEMSpage 48

INSIDENEWSQatar has signed $576m of contracts for public works projectsPAGE 9

COMMENTAlan Millin asks: are your suppliers off-loading out-of-date products?PAGE 18

SHOWCASEThe Abu Dhabi Investment Council’s green headquarters PAGE 46

SECTOR FOCUSGCC power and water utilities are still playing catch-up with demandPAGE 50




MAY 24- JUNE 4, 2010 [323]CONSTRUCTIONWEEKONLINE.COMAn ITP Business Publication | Licensed by Dubai Media City

SPECIAL ISSUE

THE 50 COMPANIES SHAPING THE FUTURE OF THE GULF’S CONSTRUCTION INDUSTRY

GAME CHANGERS

The most important project, contract and tender information,

updated every week

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Details have yet to be clarifi ed surrounding the announcement that Baghdad’s International Airport is to be expanded by

an additional three terminals. The terminals, plus a bridge, which would join

three existing terminal buildings, were announced by the director general of the Iraq Civil Aviation Authority (ICAA) Adnin Blebil at a conference, hosted by Gulf-based law fi rm Al Tamimi. He said the ICAA was expanding to accommodate a predicted 15 million passengers a year, up from around seven million today.

“I think very strongly that the scale of trading and tourism will be too high” for current resources, “and we’ll need to increase the capacity of the airports,” Blebil told delegates.

The new airport development would create 70,000 job opportunities, he estimated, and when fi nished will help bring in revenue of around US $2 billion. Each terminal, he added, would service around 2.5 million additional passengers.

Despite continued international concern about security in the country, Blebil expects to catch the eye of a number of contractors and investors.

“I think it will be very attractive for people who would like to invest in the country,” he said. “For that to work we need a masterplan,” he added, saying that it would then the project would be broken down into its constituent parts, such as the building of hotels and warehouses.

By deadline this week he was unavailable to provide further details to CW. By Ben Roberts

Tenders of note New Baghdad Airport contracts waiting for release from ICAA

Baghdad's international airport is the subject of ambitious plans from Iraq's civil aviation authority, which is anticipating a signifi cant rise in visitor numbers.

INTELLIGENCE

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JUNE 5-11, 2010 CONSTRUCTION WEEK 5

INTELLIGENCE

TOP TENDERS

Housing complex, Phase 2 BuildingsCountry: Saudi ArabiaCloses: Jul 31, 2010Category: Residential BuildingIssuer: Saline Water Conversion Corporation

Construction of New Ahmadi Hospital & Residential BuildingCountry: KuwaitCloses: Jul 27, 2010Category: IndustryIssuer: Kuwait Oil Company

Construction of Royal Commission Public Housing - Phase 4 BuildingsCountry: Saudi ArabiaCloses: Jul 25, 2010Category: Residential developmentIssuer: Royal Commission for Jubail & Yanbu

Construction of 24 Classrooms Al Ahnaf Bin Qais Country: OmanCloses: Jul 12, 2010Category: Educational facilitiesIssuer: Ministry of Education

Sabah Al Salem Campus - College of Petrol and EngineeringCountry: KuwaitCloses: Jul 11, 2010Category: Educational facilitiesIssuer: Kuwait University

Construction of 6 KindergartensCountry: KuwaitCloses: Jul 6, 2010Category: Educational facilitiesIssuer: Ministry of Social Affairs

Duqm HotelCountry: OmanCloses: Jul 5, 2010Category: Recreational facilitiesIssuer: Oman Tourism Development

Construction of Telephone Exchange Buildings and Allied ServicesCountry: OmanCloses: Jul 5, 2010Category: BuildingsIssuer: Oman Telecommunications Company

Operation and Maintenance for the Royal Commission Medical Center at Yanbu Industrial City Country: Saudi ArabiaCloses: Jun 27, 2010Category: IndustryIssuer: Royal Commission for Jubail and Yanbu

The Royal Commission for Jubail & Yanbu has released a tender for the construction of apartments in Jalmudah, part of Jubail Industrial City. The latest release is for phase three of the development, with the scope of work including the construction of family apartment buildings. The project covers a total of eight four-storey buildings.

Additional works included in the package will cover roads, parking and grading. A series of systems to cope with the project’s water needs will also be required. This is expected to cover storm drainage, a sanitary wastewater system, distribution for drinking water, plus a system to distribute water for fi re suppression. A treated sewage effl uent and irrigation system is also required. The tender closes on June 22 and a tender fee of 14 000 SAR applies.

The Qatar-Bahrain Causeway looks to be setting a record in its delayed start to construction. The US $3 billion three-lane ‘friendship bridge’ has frustrated the sub-contracting market with its lack of progress.

Escan Investment and Real Estate Development has announced that Al Qabdha Building Construction will be the main contractor for its latest project in Fujairah. The contract, worth AED 1.2 billion, is a huge achievement for Al Qabdha, selected for its experience and expertise in the region, as well as its ability to offer the best price for their services.

The development, known as Al Fanar towers, will encompass one residential tower, one commercial tower and a shopping mall, amounting to a total built up area of 241,500m2.

Scheduled for completion in 2013, it will be the fi rst set of high rise towers in what is becoming one of the most important cities in the Middle East for its strategic location and unique characteristics.

Royal commission releases Jubail tender

A pause for the causeway?

Al Fanah towers job goes to Al Qabdha

Numerous messages that construction would start in each new quarter have defi ned its existence. Last year the secretary general of Qatar-Bahrain Causeway Foundation, Nayef Al Emadi, told CW that it would be slightly later in the year than January

2009. By November it was to be the fi rst quarter 2010. Studies seem to be the reason. Christopher Welton, part of investor relations at Vinci Construction, one of fi ve main contractors, said to CW: “We are just fi nalising studies for the project in line with the schedule of the Qatari and Bahraini offi cials. This runs through the whole aspect of the project: how long the bridge is going to be, what materials, what manpower is needed.”

He denied there had been a delay as such. “I think the planning stage is according to a timetable from the offi cials,” he said, “I think it’s nearing its end, if our study has not been handed over already.”

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For upto the minute tenders log in to constructionweekonline.com


INTELLIGENCE

Saudi Al Fouzan wins university hospital jobSaudi Al Fouzan Trading and General Contracting has been awarded an estimated SR 500 million contract to build a university hospital in Dammam.

The 400-bed capacity hospital is seen as a crucial project for the university by the government, which gives special attention and support to higher education sector.

Board chairman of Al Fouzan Trading and General Contracting, Sheikh Mohammad Al Fouzan said the company had specialist experience building and designing hospitals. He said it was his fi rms reputation as a leading hospital-building company that led to its appointment for the project itself.

Contract opportunities to be unveiled at CityscapePrime opportunities for contractors are to be unveiled at a three-day real estate investment and development conference in Saudi Arabia next month. Organisers of Cityscape Jeddah 2010, taking place

7-9 June, say the show will see over 100 local and international property investors and developers displaying projects related to Jeddah’s 20-year re-development programme. The programme’s initiatives will include the enhancement of the Khozama and Ruwais areas and rehabilitation of central and historic districts in Saudi Arabia’s ‘Gateway city’.

Fluor Corp gets lions’ share of contractsUS-based Fluor Corp and WorleyParsons have won the main US $202 million contract for Maaden’s planned Saudi-based aluminium joint-venture with Alcoa. Contracted to carry out the supervision, engineering and procurements of the complex's alumina refi nery, the companies have a scheduled completion date of December 2014. In addition, Fluor Corp also won the second US $177 million contract for the engineering works, procurements and supervision of the construction of the complex's rolling mill – to be fi nished in the next three years.

Saudi Al Fouzan, which has specialist medical experience has secured a contract for a teaching hospital in KSA.

MATERIALS PRICE CHECK

$820Aluminium

per metric tonne

$3.81Cement

per bag (50kg)

$721.45Red Meranti

per tonne

$98Ready Mix

per m3

$4.36Glassper m2

$32.67FF plywood

per sheet

$748.67BeechWood

per CBM

$3.27Al Profiles

per kg

$10.88Steel Props

per piece

$14.97Scfld Planks

per piece

$72.15MDF

per CBM

TOP TENDERS

Supervision Consultancy Services for a New Independent Water and Power Project (IWPP) in SalalahCountry: OmanCloses: Jul 19, 2010 Category: Power & Water Issuer: Oman Power &Water Procurement Company

Upgrading of Khuwair South SubstationCountry: OmanCloses: Jul 19, 2010 Category: Power & Water Issuer: Muscat Electricity Distribution Co. (SAOC)

EPC for Upgrading Water Supply System at Kumzar Water Desalination PlantCountry: OmanCloses: Jul 19, 2010 Category: Power & Water Issuer: Rural Areas Eletricity Company S.A.O.C

Refurbishment of Several Pumping Stations - Phase 8Country: QatarCloses: Jul 27, 2010 Category: Power & Water Issuer: Public Works Authority

Housing Complex in Different Areas of Saudi Arabia - Phase 2Country: Saudi ArabiaCloses: Jul 31, 2010 Category: Buildings Issuer: Saline Water Conversion Corporation

Maintenance Services for Fire Fighting SystemCountry: KuwaitCloses: Jul 11, 2010 Category: Infrastructure Issuer: Central Tenders Committee

Dev of General Cargo and Liquid Terminal at Port of SalalahCountry: OmanCloses: Jul 12, 2010 Category: Marine Issuer: Ministry of Transport and Communication

For upto the minute tenders log in to constructionweekonline.com

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Sealing of façade connection jointsStructural window bonding and sealingBedding and sealing of glass wallsealing of roof connection joints

Sika Solutions for FIFA World Cup

Technology and QualitySika sealing solutions for watertight movement joints, construction joints and connection joints for the Nelson Mandela Stadium, Port Elizabeth, South Africa:For stadium facades, plus joints for their terraces and floors, even in areas with high mechanical and chemical exposure, Sika provides a full range of elastic joint sealants with high movement capability and UV resistance.Sika sealants are available in many colours and have fast application characteristics and excellent adhesion to most common construction materials. This ensures watertightness and improves the climate control in the building. They seal in and around complex details and connection joints, plus help to fulfil the special architec-tural and aesthetic requirements of stadiums.

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Sika Saudi Arabia Jeddah, Saudi ArabiaTel: +966 2 692 70 84Fax: +966 2 692 12 72www.sika.com.sa

Sika UAEDubai, U.A.ETel: +971 4 439 8200Fax: +971 4 438 0549www.sika.ae

Qatar, Kuwait, Oman and Yemen Contact Sika Gulf BSC (Bahrain)


Expert Views

At fi rst glance the shares don’t look much to write home about, sitting this week on AED 0.86. That’s not a huge rise from the 12 month low of AED 0.72 which was seen on 10 December last year, and some way off the peak of AED 1.22 achieved on 11 October last year.

Indeed, so far in 2010 the price has slipped by nearly 5%.

But the signs look positive. At a recent event in Abu Dhabi, chief executive Khaldoon Tabari told reporters that the company was bidding for up to 50 new contracts, and also had its eye on taking over two companies in Saudi Arabia. His plan to diversify out of the

UAE seems to be working, and the market clearly likes what it has been hearing.

Of the ten analysts surveyed by Bloomberg, eight recommend a “buy”, two a “hold” and there were no “sells.”

And they make some strong forecasts, with Shuaa Capital, Nomura and Credit Suisse putting a target price of AED 1.22 on the shares, with HSBC suggesting AED 1.20. Last week Prime joined the list, with a “strong buy” and AED 1.15 price target.

Just last November Drake & Scull was facing uncertainty but the management is back in favour with the analysts.

THE VERDICTBUY: Drake & Scull has faced some tough times in the past year, but its expansion out of Dubai is now paying off. Experts agree this is a good buy.

Drake & Scull International PJSC (DSI)Is it a good time to invest in Drake & Scull? The experts seem to think so, with the majority recommending the shares as a buying prospect.

Depa shares rocket 44% in 5 monthsDepa Interiors – which fi tted out the Burj Khalifa – has seen a record rise in its share price during the fi rst half of 2010, following its announcement of strong back orders.

The company revealed that 2010 has seen a 9.5% rise in its order backlog to $626 million.

“We are still expecting revenues and profi ts within a similar range to those of 2009, although cyclicality will likely weigh revenues and earnings heavily towards the second half,” chief execu-tive offi cer Mohannad Sweid said in a statement to the Nasdaq Dubai bourse last week.

Projects started in early 2010 are beginning to generate revenue, it said.

Depa shares are now trading at $.76, a 44% rise since the turn of the year. Last July, they had slumped to a year low of $0.45.

STOCK MARKETS

Depa boss Mohannad Sweid has seen his company share price shoot up this year.

FINANCE

Two year price analysisHow Depa bucked the trend and stole a march on its rivals

Share price in USD2009

Share price in USD2010

Jan 30 Feb 27 Mar 31 Apr 30 May 31 Jan 30 Feb 27 Mar 31 Apr 30 May 31

0.40 0.60

0.50 0.70

0.60 0.80


FINANCE

TOP RISERSFujairah Building +5.98%Union Cement Co. +5.15%United Projects +4.69%Specialties Group +4.24%Gulf Cement Co. +4.21%Kuwait Gypsum Co. +1%Raysut Cement Co. +0.4%Oman Ceramic 0%Aloula 0%Gulf Stone 0%

TOP FALLERSSharjah Cement -9.09%RAK Cement Co. -10.11%Mushrif Trading -10.26%Arabian Cement -10.27%Saudi Cement -10.52%Kuwait Process Plant -10.53%Salbookh Trading -11.11%Arkan Building Materials -11.40%National Industries -13.58%Saudi Arabia Amlantit -14.14%

SECTOR INDICES Banking +0.64 +0.07% Insurance -7.30 -0.24% Fin & Inv -39.26 -2.11%Real Est & Constr -46.50 -1.68% Transportation -2.69 -0.61% Utilities -14.43 -2.25% Materials 0.00 0.00% Consumer Staples 0.00 0.00% Telecoms 0.00 0.00%

Update

Arabtec shares RAK Cement shares

A signifi cant number of construction fi rms in the GCC reported a loss in net profi ts for the fi rst quarter of 2010 compared with the same period last year.

Arabtec, the biggest construction company in the UAE, reported a fall of 17% from AED 161.2 million in 2009 down to AED 134.5 million in 2010, while Abu Dhabi-based Aldar Properties recorded a 54.3% decrease in revenue from AED 227.0 million last year to AED 496.6 million this year. Earlier this year it cancelled a planned merger with Aabar.

Similarly, Saudi-based developer Jabal Omar Development Company posted a Q1 loss of SR 8.9 million (AED ) compared with a loss of SR 4.1 million (AED ) 12 months ago.

The region’s cement companies have continued to perform poorly, with many seeing their shares hit an all time low on the back of poor earnings.

Last week saw huge falls of close to 10% for UAE based Sharjah Cement and RAK Cement, along with Saudi Arabia’s Arabian Cement and Saudi Cement.

In April, RAK Cement reported a 90% drop in Q1 net income to just AED3.3 million, sending the shares to a four month low. By the start of last week, they had slipped another 9% to just AED 0.77. The company’s shares are now trading nearly 15% lower since the start of the year – that despite the sector showing a near 3% average rise in share price for 2010.

Widespread losses for fi rms in Q1

Cement companies lead shares slide

PROJECT TITLE COUNTRY VALUE / VALUE RANGE (US$)

CONSTRUCTION OF PROPOSED HEADQUARTERS BUILDING AT MOTC Oman 6, 000, 000

HOUSING DEVELOPMENT FOR CIVIL AVIATION AFFAIRS AT SEEB - PHASE 1 Oman 15, 000, 000

UPGRADING OF BIRKAT AL MOUZ - SAYQ ROAD Oman 30, 000, 000

TUBLI WASTEWATER TREATMENT PLANT Bahrain TBC

KHALIFA PORT AND INDUSTRIAL ZONE (KPIZ) IN TAWEELAH - ABU DHABI UAE TBC

REFURBISHMENT OF 13 SCHOOLS AROUND DOHA AND VILLAGES Qatar 11, 000, 000

PORT OF SALALAH - EXPANSION OF THE GENERAL CARGO TERMINAL Oman 500, 000, 000

CONSTRUCTION OF DOHA EXPRESSWAY - PACKAGE 7 Qatar 438, 000, 000

SHEIKH KHALIFA HOSPITAL UAE 145, 000, 000

AL MAFRAQ HOSPITAL UAE 871, 000, 000

10 latest projects updates

(Data accurate as of close 31 May 2010)

0.68

0.76

0.84

0.92

6/5 12/5 18/5 24/5 30/5

1.96

2.12

2.28

2.24

2.6

6/5 12/5 18/5 24/5 30/5

10 CONSTRUCTION WEEK NOVEMBER 25–31, 2010

COMMENT

Sheikh Mohamed Bin Issa Al Jaber

MBI InternationalUS$ 9.7 billion

It’s very unlikely that you will ever see Sheikh Al Jaber in the Middle East: despite reputedly

being the world’s second richest Arab, and having made billions through property development,

he prefers to stay at his homes in either London, Vienna or Paris.

But he has made a name for himself (and added to his fortune) by being one of the few people who two years ago correctly called the

property crash just before it happened. The MBI International group of companies today holds an asset value of over US $9 billion and boasts

operations in Europe, the Middle East and the US.

WEALTH CHECK For more interviews and insight go to constructionweekonline.com

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NEW DOHA INTERNATIONAL A IRPORT

12 CONSTRUCTION WEEK JULY 5-11 , 2010

UK spending cuts threaten UAE construction recoveryConstruction industry problems in the United Kingdom could increase competition for lucrative contracts in the UAE.

Planned spending cuts in the UK announced recently threaten to hinder the UAE construction recovery, should they exacerbate problems already be-ing experienced by UK-based contrac-tors with an established presence in the Middle East.

The worry is that cuts in UK public spending on large scale construction projects could have the knock-on effect of increasing competition for contracts in the UAE, as many of the large inter-national construction fi rms see a fall in profi ts.

As well as harming the long-awaited and anticipated economic recovery in the Middle East, industry experts forecast that the cuts could prolong a recession, which continues to present tough challenges for the global con-struction sector.

Following the Chancellor of the Ex-chequer’s announcement to make cuts of up to £6.2 billion, the Construction Products Association in the UK called for urgent clarifi cation on exactly where these cuts would be made.

Commenting on Mr Osborne’s announcement, the Construction Products Association’s Chief Execu-tive Michael Ankers said: “Although it is clear that government will need to address its public borrowing, it is criti-cal that government provides clarity on where potential spending cuts may occur and ensures that spending cuts do not occur in those areas that are key to facilitating the economic recovery, such as in transport infrastructure and energy supply.”

So far, the UK Chancellor revealed that £1.7 billion of savings alone would be made from delaying and stopping contracts. But at this stage no further detailed clarifi cation has been made on the issue.

In Quotes

NEW PROJECT

ROUND UP

“I think the issue is fi nally a political one… A lot of LEED is given for bogus stuff, with enormous costs

that don’t pay you back in your lifetime”

FRANK GEHRY, world renowned architect,

on what he thinks of green building initiatives and global warming.

“I am delighted to announce this new initiative which brings together three leading organisations.” ISSA AL MOHANNADI, Dohaland CEO, on the JV signed with Linc Facility Services and Masraf Al Rayan Bank FM services in Qatar and other Mena countries.

“Today the approach to projects is different. In the private sector you have to think about who you will be working with especially if they are new to you.”

AHMAD MATAR, general manager of Al Arrab Electromechanical Engineering.

JULY 5–11, 2010 CONSTRUCTION WEEK 13

ROUND UP

12

3

4

5

World Security will pro-vide specialised training to the employees of Al Raed Security Company in Kuwait. The programme will include basic security supervisor training, self defence, VIP protec-tion and an inspector supervisor course and will be handled by training offi cers licensed by Dubai Police Department of Protective Systems. “It is our commitment to excel-lence that prompted this partnership,” said World Security CEO Mahmood Amin.

A group of foreigners born in Saudi Arabia have set up a website demanding citizenship or permanent residency of the kingdom. The founders of www.Mawaleed.net say that they are an “integral part of Saudi society” and deserve to be granted full citizenship. Around 23% of Saudi Arabia’s 27 million-strong population are expatriates of one sort or another, but the children of non-Saudi parents do not automatically qualify for citizenship rights in the country.

Saudi Arabia has unveiled plans for a Metro system in Jeddah, just as con-struction work begins on the equivalent network system in the country's capital, Riyadh. The Metro will consist of three lines: and is part of a SR21 billion (US $5.6 billion) investment programme for the city’s transport system. Other aspects of the transport improve-ment works include monorails, buses and trams to link the urban sprawl of Jeddah’s many residential districts.

Qatar has appointed a new chief executive for one of the two state-run companies that ships its gas to international mar-kets. Sheikh Khalid bin Khalifa al-Thani replaces Faisal al-Suwaidi as the new head of Qatargas. He was previously director of Ras Laffan Industrial City.

The average wage of construction workers in Abu Dhabi declined by almost AED6 per hour in two years, as the fi nancial crisis dealt a blow to take-home pay, according to latest fi gures. Data from the Statistics Centre – Abu Dhabi show that the aggregate hourly wage across the range of building site workers fell from AED18.1 to AED12.6 from April 2008 to April 2010. Surveyors and steel fi xers took the biggest hits to their pockets with AED7 and AED6 per hour being trimmed from their rates hourly rates, while electri-cians (AED4) and helpers (AED3) also felt the pinch.

Around the GCC

1. ABU DHABI, UAE

Abu Dhabi hourly worker pay falls

2. SAUDI ARABIA

Foreigners in KSA citizenship call

3. KUWAIT

World Security trains in Kuwait

5. JEDDAH

Jeddah Metro launched

4. QATAR

New CEO heads up gas giant

“I have heard different fi gures (for 2009). The good news is that it was positive 1.3% and we expect GDP growth for 2010 to be around 3%”SULTAN BIN SAEED AL-MANSOURI, UAE Economy minister on the state of the region’s fi nances.

14 CONSTRUCTION WEEK JULY 5-11 , 2010

www constructionweekonline.com

MOST POPULAR

1Besix and Takreer win con-tracts in Abu Dhabi

2 IN PICTURES: The world’s six most ugly buildings

3 Saudi transport ministry launches Jeddah metro

4 UK spending cuts threaten ME construction recovery

5 Escan awards Fujairah tow ers project to Al Qabdha

SPOT POLLDo you agree with the midday work ban?

Six of the world’s ugliest buildingsBridge building completed

75% 7.1%10.7% 7.1%It’s very important for the welfare and safety of workers

It’s disruptive but I can see the value

I’d rather work through the heat and fi nish earlier

It makes the work day far too long

IN PICTURES

LATEST FEATURES

This week CW takes a look at the world’s ugliest structures, including this Bangkok curiosity

Two new bridges crossing Dubai’s Sheikh Zayed Road and linking the city’s Financial Centre Road with Al Safa Road, were opened recently. As part of Dubai’s largest interchange system project, the bridges have opened up routes to the Burj Khalifa, Dubai Mall and Dubai International Finance Centre, giving Dubai traffi c more access to the landmark sites than ever before. As the main contractor for the project, Italian fi rm Salini will be carrying out the construction works for the new intersection to replace the fi rst junction on Sheikh Zayed Road and allow free traffi c access in all directions. On completion, the development will encompass 12 new overpasses (10.5 to 32.3m width; 30 to 60m span – with a combined length 3626m) and three underpasses (cut and cover), including a tunnel to link the service road behind Mazaya Centre with the service road behind Shangri-La Hotel on Sheikh Zayed Road.

Two new bridges in Dubai are part of Dubai’s largest interchange system project.

mROUND UP

InterviewAt the high end - Abboud Malak has designed some of the plushest offi ce in Dubai

Analysis Hot stuff - solar powered water heating systems

CommentMEP design at tender stage: is it time for a change?


COMMENT

Projects, contracts and tenders are my three favourite construction words. Those of you who I’ve met may wince at the sound of them. If we were in a

meeting, I will certainly have said them to you more than once.

But there’s a reason for my belligerence on the subject. Information about projects, contracts and tenders is what Construction Week’s readers have proved they want time and time again. As I write, a story headlined Besix and Takreer win contracts in Abu Dhabi tops the ‘most popular’ list on constructionweekonline.com.

On any given day, stories that reference projects, contracts and tenders will out do just about any of our many other online offerings, except perhaps for the occasional top 10. There’s no doubt that they are the three things that matter most to our readers; we and them just can’t get enough.

With this in mind, we’ve made changes to Construction Week, relaunching this issue to greater refl ect the three words that sum up what the industry is most keen to know more about.

Our changes also refl ect the evolving industry and the reach our daily news website has achieved. With more than 100 000 people – the vast majority from the GCC – using constructionweekonline.com as their source of daily regional construction news, the focus of the magazine has shifted to more analysis, more features and a greater depth of project and site coverage.

We will continue to address issues that directly affect our readers, as well as look at those that have an infl uence on the broader industry. A

greater emphasis on the business of construction is one of the results, with the addition of a weekly fi nancial summary to bring you a glimpse of the week’s biggest fi nancial winners and losers.

This shift can also be seen in our lead interview with Mohammed Alabbar, who heads up arguably the region’s most successful property developer and who has, in effect, been the ultimate source of more construction contracts than just about anyone else.

As issues go, sustainability is always worth talking about. The biggest problem is that so few companies actually do anything other than talk. Recently though, there has been a very practical and real-world change in construction sustainability in the emirate of Abu Dhabi.

The newly-operational recycling plant for construction waste, located in Al Dhafra, is proof positive that sustainable construction can be a real thing and not just confi ned to a developer’s brochure (see page 34). The plant has been developed to turn waste concrete into aggregate, to build the emirate’s roads. Regulations to encourage the use of the plant and its product are expected to follow shortly.

Visiting the site of the plant, which is a bit like a quarry where the raw materials are delivered by the truck load, was a chance to see practical recycling in action. It’s a dusty, industrial process that has a useful output and will help the emirate improve its environmental standing.

It seems likely then that you can expect to be driving on recycled roads in the coming years. If in the meantime you have news about projects, contracts or tenders, just drop us a line.

Projects, contracts, tendersThe industry just can’t hear these words enough, because they mark the start of real work

The newly-operational recycling plant for construction waste, located in Al Dhafra, is proof positive that sustainable construction can be a real thing and not just confi ned to a developer’s brochure.

STUART MATTHEWS

Recycling waste concrete into aggregate is a real step toward sustainable construction.

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COMMENT

Ihave been in dubai more than two years now and like most UK ex-pats get frustrated by the attitude of the UK press when reporting on Dubai.

Hence, the recent announcement of an injection of badly needed liquidity into the Dubai construction market fi lled me with a sense of satisfaction and demonstrates that perhaps things aren’t quite as bad as the hacks in the UK like to make out.

However, I hope that the momentum that has been generated by these announcements is maintained and more information is soon provided with respect to the details behind the proposals, as some questions do remain.

Let us analyse some of the press announcements. It has been quoted that contractors (trade creditors) will be paid 100% of ‘agreed amounts owed’. But what if, as is the norm on most construction contracts, large amounts are yet to be agreed?

Will amounts not agreed be set aside to allow some cash to fl ow or will the agreement of these amounts impact on the initial 40% payment? In addition, might this effect the timing of the initial payments which are intended to commence in June as recently announced? It would also be a good opportunity to consider some way that the agreement of the un-agreed sums may be expedited to avoid long and costly disputes.

Furthermore, to avoid the risk of contributing to any further delay, contractors should review all un-agreed claims and ensure that they have been prepared to the required standard and include the necessary substantiation.

It has been further stated that the repayments to contractors and suppliers will consist of 40% cash and 60% ‘tradable security’, with an annual return of 10%. Some commentators have stated that the contractor can take the tradable security and transfer it immediately into cash, which then gets reinvested down the contractual chain and thus provides the long awaited liquidity.

This is just what the construction market needs, however, in reality, if a contractor actually did attempt to ‘transfer’ this security into cash how much cash is it likely to generate? My concern is that the current global fi nancial conditions, plus the fall-out from the sub-prime debacle, may adversely affect the market value of these tradable securities. For the majority of contractors cash is king and therefore, most of them will be eagerly awaiting more details of this particular aspect of the proposals.

The 10% return on bonds is conditional on trade creditors representing 95% of the value of all claims agreeing to the proposal. Is the reference to ‘all claims’ to include both agreed and un-agreed amounts? If

so then securing the agreement of the 95% could be a very protracted process and risks being delayed by just a few large creditors. In addition, other reports state that the commencement of payment is conditional on written approval from a bank creditors committee which represents yet another hurdle.

Finally, it has also been announced that an initial US $1.5 billion will be made available to fund the completion of ‘near term’ developments ahead of a fi nal agreement on the recapitalisation plan. Therefore, it would also be good if some clarity was provided with respect to the defi nition of ‘near term’.

Overall the recent announcements are positive news and I genuinely hope that it does bring about the desperate needed liquidity. However, the construction market needs more fl esh on the bones of the deal without which we may lose a valuable opportunity to talk Dubai up and may inadvertently give the blinkered hacks back home more ammunition for their favourite game of Dubai bashing!

Philip Adams is an Associate Director at Systech in Dubai. He has provided commercial, contractual and dispute resolution advice on a range of projects. He is a member of the Royal Institution of Chartered Surveyors and a fellow at the Chartered Institute of Arbitrators.

New DawnPhilip Adams looks at what remains unsaid about recent announcements of repayments to construction contractors

PHILIP ADAMS


LETTERS

RE: LEED rankings 'bogus': Frank GehryRegarding LEED certifi ca-tion for buildings, I feel that it should be continuously upgraded through the life span of the building, rather than just implementing it for the sake of certifi cation. Also we need to have some local content in LEED, which is particularly suited to the GCC region. Over-designing of MEP services needs to be curtailed, or we will end up with a white elephant as some of these services turn out to be an engineer's nightmare. Simply copying the west will not lead us to LEED. We need to do what is good for us.CLARENCE S LEWIS, VIA EMAIL

RE: Sharjah: where rubber meets the roadThis is good news. Finally someone in the UAE is using recycled rubber and taking the initiative to be green! Just for the record, non bio-degradable plastic can now also be used to provide bedding for roads. A company from the city of Pune in India is already working on the same. So we all know where all those plastic bags will end up!SUNNY, VIA EMAIL

RE: Saudi transport ministry launches Jeddah metroThis is good news for Saudi Arabia. Infrastructure is key for the development of a country, hence why Saudi Arabia is en-hancing its infrastructure. I just hope this move will generate ample job opportunities in the country for experienced profes-sionals, and ease the current job crisis in the Middle East.AJU SHARFUDDIN, VIA EMAIL

To submit a letter, write to [email protected] or by post: Construction Week, PO Box 500024, Dubai, UAE. Please provide your full name and address. Letters may be edited for space and style. Submission constitutes permission to use. You can also log in to www.ConstructionWeekOnline.com to join the conversation.

MoL: workers to beat the heat for longer this year

people to live in. This type of technology has been available but ignored.THOMAS, VIA EMAIL

RE: Dialogue: RahamathullaI understand that Intelex Technologies/Barik Group are doing remarkably well in the Middle East. I am sure this HSE software will defi nitely be a boost to health and safety in the industry. Rahmat - good to see you interviewed in CW.SHARIEF, DAMMAM

RE: Nuzul labour camp offers 'better quality of life' The labour force must always be our primary concern. They deserve access to quality labour camp accommodation and good basic living provisions.

Labour camp operators, en-gineers, architects, consultants and environmentalists must be made to cooperate and evaluate technologies, which can meet stringent requirements of LEED code, whilst at the same time provide a cost effective habitat for these hard working

The midday working ban is only in effect in the UAE, and it is important that we consider workers in Saudi Arabia too. Not only is the summer worse there, but the larger companies seem less bothered about the environment, health and safety; except for oil refi neries. I strongly recommend that Saudi Arabian construction sites too require a midday work break (12:30pm to 3:00pm). Hopefully this will be a boost to the environment, health and safety culture in Saudi Arabia, and encourage fi rms to take better care of their workforce.AJU SHARFUDDIN, VIA EMAIL

RE: LEED rankings ‘bogus’: Frank GehryI agree with Mr. Gehry's statement. Targeting maximum LEED points, especially in GCC countries, requires more common sense. I urge those developers to be open minded when it comes to their LEED vision. Whilst I agree with the concept of the LEED system and the benefi ts for workers and the environment, people must realise that there is a right time and place for implementation. CONCERNED ENGINEER, DUBAI

22 CONSTRUCTION WEEK JUNE 5–11, 2010

The 2010 Construction Week Salary Survey will be launched on constructionweekonline.com on June 12. It will be used to gather

anonymous salary and package details from across all professional levels of the industry, as well as ask qualitative questions about working in the industry around the Gulf.

Results from the survey, which will run un-til September 30, will be published in October and will include detailed responses analysed by sector, country and profession.

The survey will be a temperature check for the mood of the industry as a whole, reveal-ing signs of optimism or pessimism. It will also provide demographic details of the wide range of nationalities who have brought their professional life to the Gulf and see how those may have changed in the last 12 months.

A comparison with 2009’s results, where more than 1000 people responded, will re-veal salary and package trends over the last 12 months and provide a window into the levels of resourcing available, in the aftermath of the industry’s consolidation.

Last year’s survey was conducted during the darkest days of the recession in the Gulf, with a sense that everyone was waiting to see what would happen. The mood was quite pessimistic. Yet, despite the feeling at the time, the results showed signs of optimism.

It will be a good sign if this optimism re-mains in place in 2010, though the nature of the survey means results will naturally lean toward those who are still employed in the

region and thus have more reason to be opti-misitic about their future in the GCC.

Specialists in the fi eld of recruitment and human resources will be consulted to verify the results and identify anomalies. As with any survey, there will always be anomalous results, but they are frequently the most in-teresting. They can demonstrate a gap in perception between an individual’s view and that of the wider industry.

The starkest example of this in the 2009 survey was people’s expectations regarding pay rises. A staggering 61% of respondents believed they would receive a pay increase at some point within the next 12 months. The 2010 survey will reveal if these optimistic ex-pectations were met, despite most human re-sources experts believing that there would be no way a broad section of the industry would be getting a pay rise.

The survey can be taken at construction-weekonline.com from June 12.

How much are you worth?Construction Week will launch its online salary survey on June 12, take part to secure your fi rsthand look at what your peers are being paid

2009’s average basic salariesRespondents were given the option of selecting salary windows to identify their pay level and job titles to identify their role. All fi gures are in US dollars and represent basic monthly salaries across the six GCC countries.

All construction industry employeesMidpoint: $6047The average salary of a construction industry employee in 2009 was between $4849 and $7246 per month.ArchitectMidpoint: $4500The average salary of an architect was between $3643 and $5357 per month.Civil engineerMidpoint: $3370On average, a civil engineer earned be-tween $2573 and $4168 per month in 2009. Construction managerMidpoint: $8750In 2009 a construction manager earned an average of between $7079 and $10,421 per month.Cost estimatorMidpoint: $3904A fi gure between $3095 and $4714 was the average monthly salary of a cost estimator.Project engineerMidpoint: $4023Project engineers earned an average sal-ary between $3141 and $4905 per month. Remove the top 20% of results and this average dropped to between $2271 and $3771 per month, producing a midpoint of $3021.

SALARY SURVEY

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Audited Average Circulation 10,400 copiesJuly - Dec 2009


ANALYSIS

Land of the rising sumsContractors and developers from China, Taiwan, Korea and other Far East Asian countries have been adding to the fi erce competition in the Middle East. Ben Roberts reports.

The economic downturn and resulting pressures on the construction market have in-tensifi ed competition across the supply chain. Piling contractors

tell CW that they can compete with as many as 13 other providers for work on a standard building – creating little margin both in profi ts and chance to innovate. As if domes-tic competition was not intense enough, the last few years has seen signifi cant increase in the presence and success of companies from China and surrounding countries in the Middle East.

Nirvit Sharma at the New Delhi-based private research fi rm Grail Research, which produces insights into regions for companies looking to expand, says that

his fi rm has seen an increase in interest from Far East Asian and South East Asian companies to enter the region. “That’s defi nitely happened,” he says. “They see the Middle East as having much scope for development, and specifi cally for UAE. From Korea and China we have seen demand for information, although mostly from the supplier side, rather than from the contractor side.”

However, contractors, engineering fi rms and developers from the east have also been making their presence felt, typically setting up discreet offi ces in Dubai or Abu Dhabi and gradually claiming more contracts. Hyundai Engineering & Contracting (HDEC), from Korea, has seen particular growth recently in its business providing

building and upgrades to roads, bridges and harbor projects among other areas of infrastructure. The construction outfi t gained kudos two years ago for completing the civil works for the fi rst stage of the Jebel Ali New Container Terminal.

More recently, it partnered with HBK Contracting to build the fi rst phase of the residential and cultural development Musheireb – also known as Dohaland – in Qatar. The win boosted the value of Hyundai’s portfolio in the region to US $4.4 billion. Perhaps most impressive is the fi rm’s success in Saudi Arabia, where its business includes engineering work on a power plant and Jubail industrial Harbour.

It is one of a few east Asian companies to see some big business in Saudi Arabia. At

TALL ORDER

Far East construction and develop-

ment fi rms have had to

acclimatise to regional

differences in the Middle East

JUNE 5–11, 2010 CONSTRUCTION WEEK 25

ANALYSIS

the beginning of this year Daelim Industrial Company, a Taipei, Taiwan-headquartered fi rm, won the contract to build a low-density polyethelene plant in Jubail. S I Kim, general manager for the Damman offi ce, said the construction of the plant in was ‘much higher’ than the US $300 million initially reported, though he would not be drawn for the exact fi gure, which could be more than double.

Also in the fi rst quarter of 2010, CTCI Corporation, another Taiwanese fi rm, was awarded the engineering, procurement and construction contract, in January, to build an amines plant that will produce 210,000 tonnes per year in Jubail Industrial City.

China Jiangsu International Construction (CJIC), part of the outward-

looking China Jiangsu International Group, has had a presence in the UAE since 2004, though sister companies in Qatar and KSA have been active since the 1990s.

Its business includes survey and design, civil, M&E installation, steel structure, fi nishing and decoration, fi re alarm and intelligent works, though Chen Xin, commercial manager, tells CW the company has attempted to diversify in recent years. “CJIC is specialised in the building sector and the infrastructure sector; however, due to credit crunch since 2008, we are trying to diversify our scope of work, and have become involved in offi ce fi t-out works, hotel refurbishment works and public sector [projects], such as school projects and hospital projects,” he says.

Far East GDPChina's GDP has sky-rocketed over the past decade as business through-out the region continues to improve.

China's EU exportsStatistics show just how important Europe is to the Chinese economy

Machinery and transport equipment 46.8%

Miscellaneous manufactured articles 31.5%

Manufactured goods 14.7%

Processed trade 51%

Others 5%

Conventional trade44%

1

2

3

4

5

Trillions of US Dollars

2000 2005 2008

China

South Korea

Thailand

Singapore

For upto the minute analysis log in to constructionweekonline.com


ANALYSIS

He explains that there are a few key differences in the Middle East compared to China, particularly surrounding regulation and the supply chain. “Here, a contractor has to produce shop drawing; however, in China, shop drawings are handled by the design fi rms and/or consultancy fi rms,” he says as an example. On the supply side, he says in China it is very easy for a contractor to source the materials and procure the subcontractor and maintain the supply chain. “Trade contractors are quite motivated,” he adds.

Steven Hunt, a construction lawyer in law fi rm Al Tamimi, has followed the recent success of East Asia companies in the region, as the fi rm itself has increased its advisory business to contractors. These companies are no different to others in seeing the ongoing potential of the region, he believes.

“Dubai has interested everybody in the last few years, and there is now an interest in other areas, as the Dubai market has quietened,” he says. “For some of these contractors they might receive sponsorship from their government, and now they are seeing opportunities, particularly in states such as Saudi Arabia where there has been a lot of recent investment in infrastructure.

“Then you have Kuwait, which to a degree is coming out of the shadow of Iraq. There’s a greater stability, and if you are one of the big [foreign] players, which already has a presence on the ground, then that gives you a good platform to expand further into the Middle East. But it’s the same as anywhere: a company has to feel culturally comfortable doing business there.”

He adds that although there are a number of “green shoots”, there are trenchant differences between the GCC states to which Asian fi rms must acclimatise. “I guess Saudi stands out as a little bit more of a challenge. A project might be over-budgeted so there are issues for contractors getting entitlement.

“Abu Dhabi, as a contrast, is signed up to the New York convention. But there is a challenge for international players up against local and government developers.”

There are even occasional problems when it comes to joint ventures, he says, which is a prevalent business structure whereby the foreign company owns 49%. “You can see a situation where a local fi rm might do a deal with the government or some other entity – there’s a danger of that.”

He adds, however, that underlying principles of business are the same. “Contracting is about relationships, and you have to prove yourself as a company entering the region,” he says, agreeing that there is a good match between the emphasis on long-term relationships in Arab states as with East Asian companies.

Far East Asian companies have won contracts across the spectrum of construction, from mega projects to niche areas of airport infrastructure. On the one hand, there is Guangsha Middle East Construction, part of the Guangsha Holding Venture Capital Company. Last month it announced an MoU with the Meydan

Group to develop the fi rst phase of the Metropolis Business Park in Meydan City. It will be repeat business for the Chinese fi rm, which completed the Falcon car park in the complex three years ago.

On the other hand, Pteris Global, a Singaporean fi rm that builds baggage handling systems as well as parts of in-fl ight service machines, has gradually sold its services across more of the region. The fi rm fi rst set up its Middle East operations in Dubai in 2003, currently trading under its original name Inter Roller. The company won its fi rst contract upgrading terminal 1 at Dubai International Airport a year later. It has also won contracts for the concourses 2 and 3 at the airport. In the last year it has worked on the Queen Alia International Airport in Amman, Jordan, due for completion at the end of next year.

“The baggage handling system works are progressing as planned,” said the project manager in Amman, who declined to be named. He adds that the work structure in Jordan is similar to elsewhere. “From a technical viewpoint, the work process is similar to our other projects.”

Chen Xin at CJIC draws a distinction between companies from different countries when assessing the success of Asian fi rms in the Middle East.

“Recently in other GCC countries, oil fi eld projects and civil works have been taken by Asian companies, but only Korean companies secure mega projects in Abu Dhabi, and Chinese companies are still struggling to take projects and survive here in the UAE,” he explains.

But the future looks bright for his countrymen with government support, despite the challenges produced by the downturn. “I do believe the price is coming to bottom for the UAE market,” he says. “The low cost of secured projects will affect their execution and delivery, and defi nitely time extensions as well.

“However, Chinese companies are still having more chances to win projects by virtue of cost managing, value engineering, alternative Chinese material proposals and the effi ciency of the Chinese worker. Furthermore, with the assistance of government involvement, certain PPP/PFI projects are under negotiation.”

“If you are one of the big [foreign] players which already has a presence on the ground, then that gives you a good platform to expand further into the Middle East."

Asian and Arab companies place a similar emphasis on developing long-term business relationships.


FACE TO FACE

THEDREAM

BUILDERIn less than six months, Mohammed Alabbar has delivered two of the world’s most eagerly

awaited projects. How did he do it? By Anil Bhoyrul

It’s been a good year for Mohammed Alabbar. We’re barely into June and the charismatic chairman of Emaar has al-ready delivered two of the biggest projects on the global stage. The iconic Burj Khalifa tower opened in January, and four months later came the fi rst ever Armani Hotel, built within the tower.

“When you start building something, you can either build the same boring environment or you can do more. What’s important is whether that single piece of stone is really affecting human life. Some things are very easy to do and some things are very hard. But that’s our job, we get it done,” he says.

Few could argue with him right now, particularly Emaar share-holders. Last month the property development company announced fi rst quarter 2010 revenue of AED 2,886 million ($786 million), un-derpinned by the robust performance of the company’s hospitality and shopping mall subsidiaries.

This was an impressive 87 percent higher than the fi rst-quarter 2009 revenue of AED 1,540 million ($419 million). Net operating profi ts for the fi rst quarter of the year reached AED760 million ($207 million), 152 percent higher than the fi rst-quarter 2009 net operating profi t of AED302 million ($82 million).

But this, it seems, is just the beginning. Key construction contracts

have been awarded in Egypt, Jordan and Saudi Arabia that will drive Emaar’s integrated community developments in these countries. “Several of these projects will be handed over this year, including homes in Egypt; and commercial offi ces in Syria at The Eighth Gate development,” says Alabbar.

While the likes of Syria’s Eighth Gate represent where the action will be later this year, it is the past few months that has really seen Alabbar and Emaar capture the headlines around the world. After many delays, the long awaited opening of the Burj Khalifa fi nally took place on January 4th. From a construction standpoint the proj-ect broke almost every record there is to break, and the industry has universally agreed that the end product is indeed a world-beater on every count.

For Alabbar however, it marked the end of several years of being extremely hands-on, many sleepless nights and keeping and eye on practically every detail of the construction process.

“The only thing was I was anxious and impatient, then it was al-most done and it was dusty and I wanted to see it shine, like a little boy. This is my global wonder that I want to enjoy. I am always look-ing. I was so lucky to be able to do this. There have been a few sleep-less nights, problems with contractors and quality issues that we had. Things we agreed on and in reality they don’t look good.

NOVEMBER 25–31, 2010 CONSTRUCTION WEEK 29

FACE TO FACE


FACE TO FACE

“The hardest thing is the ability to deliver it and not compromise on quality – especial-ly the fi nishes and installation,” he says.

On January 5th, as the big clean up was underway following the spectacular fi re-works display to mark the opening of the Burj Khalifa, Alabbar was back at his desk planning the next “biggie.” It happened to be in the Burj Khalifa tower again, as the fi nishing touches were being put to the fi rst Armani Hotel in Dubai.

The 160-room hotel was personally de-signed by Giorgio Armani and fi nally opened its doors to the public on April 28th. Despite

several delays, the general consensus is that it was worth the wait – in addition to the rooms that occupy the fi rst eight fl oors, plus levels 38 and 39 of the tower, it boasts eight restaurants, retail outlets and a spa. The buzzword is “luxury”, with Eramosa stone fl oors and zebrawood panels.

“Now, for me, as I enter this building, ev-erything that I look at feels “Armani”. I feel the Armani comfort and elegance from every angle. Armani tried to design this well and we tried to execute it well,” says Alabbar.

The hotel is the fi rst venture between Ar-mani and Emaar, but it looks like being the

fi rst of many. The two companies are also working on a hotel project in Milan, while the fi rst ever Armani Resort is penciled in for Marrakech, and the fi rst Armani Residences Villas for Marassi in Egypt. Other destina-tions including New York, Tokyo, Shanghai and London are also being considered.

“Our journey has started here in Dubai. What next? Well there are a lot of projects on the drawing board, but we are being meticulous in choosing the type of city we want,” says Alabbar.

So where will this journey take Emaar next? The company’s growth strategy for

Emaar has partnered with famed Italian designer Giorgio Armani (above, left) to create the stunning 160-room fi ve-star hotel which occupies the fi rst eight fl oors of the Burj Khalifa.

FACE TO FACE

2010 is to focus on the larger Middle East, North Africa and South Asia (MENASA) re-gion, which is home to more than 30% of the world’s population, of which some 800 mil-lion people are below the age of 25.

“Our strategy is to develop integrated lifestyle communities in these markets that meet the growing demand for affordable luxury,” says Alabbar.

Emaar made rapid progress in its various projects in different stages of completion during the fi rst quarter of 2010, especially the residential and commercial develop-ments in Downtown Dubai. Boulevard Plaza

and Marina Plaza are also nearing comple-tion, and work on other residential towers is progressing.

Emaar Hospitality Group recorded strong occupancy levels at all fi ve Address hotels in Dubai in the fi rst quarter of 2010, and Emaar Malls Group hosted more than fi ve million visitors during the month-long Dubai Shop-ping Festival at its fl agship mall, The Dubai Mall. Weekly visitor footfall during the fes-tival month was up an average 30% as com-pared to the prior month.

Emaar Retail, the entertainment and re-tail business of Emaar, opened the region’s

CAIRO CALLING

Under Alabbar’s leadership, Emaar has continued to extend its presence across the globe, with Egypt now seeing the benefi ts fi rst-hand.

Emaar Misr, the wholly-owned subsidiary of Emaar Properties, has begun construction of The Emaar Drive Project, a new road infrastruc-ture development that will connect Uptown Cairo, its master-planned community, to the 6th of October bridge and the Ring Road. The EGP 250 million project will directly link Uptown Cairo to key destinations in central and greater Cairo.

Phase one of The Emaar Drive Project will enhance ease of access of travellers coming from West Cairo areas such as Mohandessin and Zamalek through 6th of October Bridge, to the last exit landing on the extension of Ramsis Street. The new road will connect directly to Uptown Cairo’s main gate on the Nasr city side.

Phase two of the road project will link Uptown Cairo to the Ring Road and New Cairo through Shaheed Highway, and will be completed by 2011. This also complements the government’s plans to move government entities to New Cairo to overcome the congestion and space constraints in downtown Cairo.

The fi rst phase of The Emaar Drive Project is scheduled for completion later this year. This is to ensure the road is ready for Uptown Cairo customers, who will receive their homes in the fi rst phase of the development in the coming months.

Hazem Ashery, general man-ager, Emaar Misr, said that one of Uptown Cairo’s main attractions is its ideal location. “Uptown Cairo is the only new development being built in Central Cairo. No other project can offer the same location advantage as that of Uptown Cairo, and The Emaar Drive Project brings the community even closer to the centre of Cairo,” he says.

The Emaar Drive Project will consist of two roads of three lanes, together sprawling a length of more than 3 km.

Emaar Retail has opened the region’s fi rst KidZania, which aims to promote physical and intellectual growth of children.

For upto the minute indepthanalysis log in to constructionweekonline.com


FACE TO FACE

appear greater than ever – as does his opti-mism for the future.

“When you talk about the fi nancial cri-sis you have to look at the global situation. What you see here today at the Armani Ho-tel is much better than what was originally designed. When you walk around the whole site you can see with your own eyes the qual-ity we have developed. Projects like this are built to last for hundreds of years. But fi nan-cial cycles, they come and go. And I think the world is now telling a positive story about Dubai,” he says.

So how does Alabbar himself see the future panning out, particularly in Dubai which has been badly hit by the real estate market crash?

“You need to keep in mind that Dubai is an icon within 500 million people that can never change. This is the city of the future for 500 million people.

“With respect to all other cities, this is the one. It will grow, growth is coming back. I think, with respect to everyone else, there will be one player. Other players are a little injured. It will be an interesting time for us. The market changed, we are tight and we have learned from our mistakes but this city will move on. Other friends of mine are hurt-ing and I wish them well, but we will be the player,” he says.

Alabbar has in recent years become a ma-jor fi gure on the global stage, and is widely seen as one of the few “stars” who have con-

fi rst KidZania, the award-winning edutain-ment concept promoting the physical and intellectual growth of children through professional role-plays. Along with Dubai Aquarium & Underwater Zoo, Dubai Ice Rink, SEGA Republic and the 22-screen Reel Cinemas, Emaar Retail strengthened its leisure portfolio in The Dubai Mall in the fi rst quarter of 2010.

Within the healthcare portfolio, the healthcare subsidiary Emaar Healthcare Group opened a new clinic in The Mead-ows, complementing the Dubai Mall Medi-cal Centre, the region’s largest out-patient medical facility, which opened in 2009.

Among international milestones for the company in the fi rst quarter of the year are the on-schedule progress on projects in Sau-di Arabia, Egypt, Jordan, India, Turkey, Syria and Pakistan. In India, the company’s joint venture Emaar-MGF is on course with its planned initial public offering of AED 2,790 million ($761 million).

Alabbar says: “India is one of our key mar-kets in our global expansion strategy, and we are today one of the largest foreign direct in-vestors in the country’s real estate sector. We have a large land reserve in India of approxi-mately 11,340 acres across 26 cities — 96% of which is fully paid for, and we have total development plans for about 437 million ft2, of which nearly 335 million ft2 is proposed to be residential projects.”

Talking to Alabbar, you often have to stop and ask yourself whether we really have just been through the worst fi nancial crisis in living memory. His passion and enthusiasm

$761M VALUE OF EMAAR-MGF’S PLANNED IPO IN INDIA • 160 NUMBER OF LUXURY ROOMS AT

“Projects like this are built to last for hundreds of years. And I think the world is now telling a positive story about Dubai”

Alabbar says that In India, the company’s joint venture Emaar-MGF is on course with its planned IPO of $761 million.

NOVEMBER 25–31, 2010 CONSTRUCTION WEEK 33

FACE TO FACE

tinued to shine in Dubai, despite the fi nan-cial crisis. He is largely credited with not just building up Emaar into a world class prop-erty developer, but crucially, expanding the company into many different areas, long be-fore the property crash. He talks freely and comfortably about the various different sec-tors and achievements. But at heart, he will always be a developer.

As he explains: “My friend said to me re-cently that ‘Mohammed, when you gradu-ated from university the fi rst thing you did is you got your job, you borrowed some money to renovate your mother’s house. And I saw you detailing and thought you were a devel-oper from that day’.”

Few could argue with that.

THE ARMANI HOTEL DUBAI • $786M EMAAR’S Q1 2010 REVENUE

ALABBAR: The man behind the rise of Dubai

As chairman of Emaar Properties, Alabbar has played a key role in the development of Dubai's real estate sector. Alabbar has also contributed to the growth in Dubai’s non-oil sec-tor as vice chairman of Dubai Alu-minium Company Ltd (DUBAL) from 1992 to 2003. From 1992 to 2002 he served as vice chairman of the Dubai World Trade Centre (DWTC), developing Dubai into a regional hub for exhibitions and conferences.

Alabbar is also the chairman of Emcredit, the fi rst indepen-dent credit information company in the UAE. Alabbar earned his undergraduate degree in Finance and Business Administration from The Albers School of Business and Economics at Seattle University in 1981. He also received an honorary doctoral degree in humanities from his alma mater in 2007.

He has spoken in a number of international forums, representing the UAE several times at the World Economic Forum in Davos, Swit-zerland. He also posts regularly on the Hammers mad and West Ham football fans forum.

A keen sportsman, Alabbar was the chairman of the UAE Golf Asso-ciation (now the Emirates Golf Fed-eration), which promotes and sup-ports the annual PGA-level Dubai Desert Classic Golf tournament. He was recently named among the top ten golfi ng personalities in the world by Golf World magazine.

Alabbar chairs Emaar-MGF, the joint venture of Emaar and MGF Developments Limited of India, rolling out the country’s largest foreign direct investment in real estate. He is also the chairman of RSH Limited, the leading pan-Asian marketer, distributor and retailer of international brand names. He is also committed to the cause of educational reform in the region.

Market watchEmaar share price performance

07/’09 11/’09 02/’10 05/’10

2

3

4

5

Emaar shares are currently trading at around 9% down since the turn of the year, hovering at the AED 3.50 mark. This down from the 12 month peak of AED 5.01 achieved last October, but far better than the low of AED 2.27 seen last July. Of 15 analysts surveyed by Bloomberg, nine say buy, three say hold and just two have a sell note on the fi rm. The target price is AED5.25 with HC Brokerage the most optimistic, putting a AED 6.6 price on the shares.


ON SITE

Construction and demolition in the emirate of Abu Dhabi has changed and there’s more to come. You may not know it yet,

but soon you will have to recycle all con-struction and demolition waste.

A new recycling plant in Al Dhafra, on the very outskirts of Abu Dhabi’s future urban sprawl, has been developed by Thiess Ser-vices Middle East – a joint venture between Al Habtoor Leighton Group and Australia's Thiess Services – for this very purpose.

Last year, the company won an exclusive concession to build and operate the recy-cling plant for 15 years. For now, disposal of recyclable concrete spoil is free for con-tractors, though the door remains open for charges to be introduced at a later stage.

The plant has two distinct purposes. Firstly, is stops a lot of useful construction material simply heading straight to landfi ll. Secondly, it takes this material and turns it

into aggregate, ready to be reused in suitable construction projects.

“So it's free to get rid of waste, from there we value add it and produce a high-grade material,” said Mark Chandler, C&D recy-cling manager.

Right now the process is just for con-crete, which is being turned into aggregate for road building. Gradually, aggregates for other construction uses will be developed. The site already has a stockpile of asphalt, which will soon be added to the plant's recy-cling programme.

Having been offi cially opened about a month ago, production is gradually build-ing to full capacity. However, the business case for the plant and its products is a strong one. The Center of Waste Management Abu Dhabi – the government client behind the project – has developed regulations that will mean all construction and demolition waste will have to be recycled. Further regulation

will require projects in Abu Dhabi, which have a use for the products the site produc-es, to use a minimum of 40% of the recycled material in their construction.

“With the regulations they want to put in place, waste has to come here,” said Chandler. “We can deem it unsuitable, but it has to come through our fi ngers, or it is illegal dumping.

“The regulations will mean that every-thing that is suitable for recycling can no longer go to landfi ll.”

This marks a change in the emirate, where much waste has been used either as landfi ll, or for land reclamation. Now the re-cycling will realise the full value of the mate-rials, which until now have frequently been thrown away.

THE PRODUCT“The beauty of recycled concrete is that you can actually recycle it endlessly, it doesn't

On theroad againA crushing plant in Abu Dhabi has placed itself at the quarry-face of sustainable construction, recycling concrete into aggregate for use in road buildingBy Stuart Matthews

h l d i lf


ON SITE

wear out,” said Chandler. “Concrete can continuously go around in circles; it's a won-derful resource for recycling. Some plastic can be recycled once or twice; glass can only be done if it's sorted correctly. So when you look at concrete, colour doesn't matter, as long as you get the specifi cations right, you can recycle it as many times as you like.”

The cost for each tonne of the end product will be the same as the market rate from any quarry. But, compared to the usual sources of raw materials, such as Oman or Ras Al Khaimah, traveling distances to projects in the emirate will be greatly reduced. This will help to lower the carbon footprint of projects under construction in the emirate and reduce associated haulage costs.

Thiess has high-hopes for the product it will make from the construction waste.

“We believe we can produce a product that is not only as good, but actually better, than the virgin material,” said Chandler.

The company claims a better degree of compaction, in part generated by the even size of the aggregate produced through recy-cling. For now the output will be suitable for the different base layers used in road build-ing, literally everything beneath the asphalt.

“We can build a road from scratch, all the way up to asphalt, out of concrete,” said Chandler. “There's no reason why any road can't be built out of recycled concrete.”

With road projects on the scale of the Mafraq-Ghweifat highway, a 327km strip of tarmac that provides access to Abu Dhabi’s Western Region and the industrial centre of Ruwais, there should be plenty of opportu-nity to put the material to the test. Volume shouldn't be a problem either. With a ca-pacity to handle more than a hundred truck loads of waste a day, the site can take in 5 000 to 16 000 tonnes per day. The facility has an output design load of more than 7 000 tonnes per day. »»

15 years

16 00040%

7 000

handler. “Concrete canund in circles; it's a won-

The company claims a better degree of compaction, in part generated by the even

Duration of Thiess Services sole concession to recycle construction and demolition waste from Abu Dhabi

The peak tonnage of waste the site is expected to receive in a single day

The minimum amount of recycled material suitable construction projects will have to include

The tonnage of recycled material the plant can produce each day

The plant processes construction and demolition waste, recycling it into aggregate.


ON SITE

CONCRETE RECYCLING The concrete starts its journey through the plant by being fed into jaw crushers. Bigger chunks are broken down and drop on to conveyors. Once the fi rst crush is done, the material passes under strong electro magnets to extract pieces of steel, before passing through picking stations. With plastic and other oddments removed, there's another crushing stage and then another magnetic steel extraction. The fi nished product is then conveyed to the end of the process, where it is dumped in evenly spread mounds.



ON SITE



ON SITE

THE PROCESSMeeting this capacity means having some big kit on site. Dump trucks leave piles of concrete at the top of a hill. A couple of Cat-erpillar 988 wheel loaders are used at the face to drop this material into the feeders. These wheel loaders are the second biggest in range from Cat, but the third biggest, the 980, is also working on site.

The concrete is fed into two Lippmann Milwaukee primary jaw crushers, to start its journey through the processing plant, which features several screens, a number of pow-erful magnets – which are known to break people's watches if they get to close – to pull out unwanted steel, and picking stations, all of which are linked by a series of conveyors.

The screens and picking stations allow contaminants, such as plastic and card-board, to be manually removed from the mix. The conveyors are up to six feet wide, and designed to put an even layer of material all over the surface, so the pickers can see it clearly. Picking is considered one of the

f

t

n

INSIGHT Developed countries need to maintain their road networks for continued economic growth, while developing countries are building their road networks to reach standards similar to developed countries.

The developed economies pay more attention to the creation of a sustainable network. Develop-ing countries will also need to give consideration to future maintenance needs. The nature of the market in any country, in terms of the provision and maintenance of the road net-work, is based mainly on price.

Parts of the world have inadequate supplies of virgin aggregate and at the same time valuable construction rubble is being sent to land-fi lls or used as low-grade/low-value materi-als such as granular fi lls or sub-base material in roads.

In other instances they are used as partial replacement materials within new products. A current barrier to a more effective and effi cient use of construction rubble is concern over consistency of quality and predictability of performance. The concerns arise from current

approaches in processing of construction rubble.

Processing is usually undertaken at waste transfer sites and the economics of the market are such that low-grade materials only are produced with minimum processing and little need for predictability of performance. Although speci-fi cations for use of recycled materials exist, the barrier of consistency and predictability of performance is signifi cant.

However, specifi ers need the confi dence in high performance recycled materials. Herein lies

LeadershipopportunityDr Olisanwendu Ogwuda, a senior teaching fellow at Heriot-Watt University, Dubai Campus, looks at how infrastructure in the Gulf region can be a valuable ‘virtual quarry’ resource, as some structures near the end of their life span


plum jobs on site, as it actually takes place inside air-conditioned cabins.

“There's a massive screening capac-ity,” said Chandler. “In my view, its the best equipment you can put in this type of plant for our volumes.”

The type of crushing employed is low speed compression crushing. While impact crushing is a common alternative and will be used for recycling asphalt, big hunks of con-crete can cause devastating wear and tear on such machinery.

“Something like a lift weight can go through the machine without busting any-

thing,” said Chandler. “In an impact crusher it's like a grenade going off.”

A control system allows operators to monitor the process from one spot. Parts of the crusher can be stopped and started, feed rates can be adjusted, and if there are any material quality issues, software allows the team to identify where the resulting product is in the stockpile.

Once extracted by the magnets, any steel is sorted, cleaned and sent elsewhere for re-cycling. The only rubbish to go back to land-fi ll is anything taken out that is unsuitable for recycling.

“The regulations will mean that everything that is suitable for recycling can no longer go to landfi ll.”

Mark Chandler (left) is the C&D recycling manager at the Thiess Services site in Al Dhafra.


ON SITE

the specifi cs of the barrier, which requires science and technology to underpin system development and performance prediction that is confi rmed by actual performance in service.

It should be noted that recy-cling is not an absolute solution to dwindling natural resources, but it can extend the life of non-renewable resources. The demand for materials for uses also needs to be put in context.

Even if all potential materials were recycled, the quantities are such that they would only meet a small proportion of the

demand. Non-renewable natu-ral resources will have to meet the bulk of the demand for the foreseeable future. However, the decision-making process should be based on an overall appraisal of potential suitable materials, including recyclable materials.

The Gulf is well placed to embark on this journey of providing a more sustainable road infrastructure, where consistency and predictability of materials from virtual quarries can be evaluated.

This journey should begin

now to avoid the pitfalls of experiences in other parts of the world.

We can evaluate the perfor-mance potential of these virtual quarries, which exist all around the Gulf, and how these may meet the future demand for road construction materials, at the same time ticking the ‘green’ box of sustainability.

This is an opportunity to lead with a form of construction that will cascade to what can be described as ‘fourth world countries’ – developed coun-tries of the future.


Although it's early days in the operation as yet, Chandler estimates that less than 1% of the material from every tonne of concrete recycled will go to landfi ll.

“There's a massive saving in landfi ll space,” he said. “General rubbish will compact 5:1, but you can't do that with concrete.”

SAFETY FIRSTWhat's very noticeable is the clean and or-derly lay out of the site. A one way system keeps everyone moving in the same direc-tion and reduces risk of vehicle accidents. The site team are in steady radio communi-

cation with the machine operators as they move around. Conveyors and other fi xed plant were raised an additional two metres above the height normally classifi ed as ‘plant clearance’. This offers workers in loose clothing and headgear added safety from entanglement in moving parts, since they are well beyond reach.

This is just one of the areas where Thiess has made an investment in safety. And it’s an investment that has paid dividends in the set up of the plant prior to production, which went so smoothly that there wasn't a single lost-time injury.

“There has been a massive investment in safety in the plant. It doesn't matter how safe you make it, there is always a risk some-where, so the investment in safety was enor-mous,” said Chandler. “It was key that we fo-cused on making the plant as safe as possible in the design stage.”

The safety investment will be a valuable asset when plant volumes ramp up to capac-ity. When the materials produced become a common addition to road works and other sites around the emirate, the construction industry will have taken a very tangible step toward being sustainable.


The cost of compliance Successful project management comes down to meeting contract targets without compromising on the quality of steel rebar and other essential construction materialsBy Carlin Gerbich

Major construction projects are some of the largest and most complex investments organisations face. From

initial plans to hand-over dates, contractnegotiations and material supply, to fi nal de-veloper sign-off, the process is a protracted and complicated one, made all the more dif-fi cult with additional pressures placed on project managers to ensure buildings remain on spend, time and compliance targets.

Monitoring compliance is itself a complex task: ensuring the project remains true to the contract and that all changes made fi lter through to the right people is one matter, while the procurement of materials – and ensuring that they meet required standards is another major issue that project managers and developers face.

COMPLIANCE


It’s a task made trickier in this re-gion by the fact that there are nounilateral building codes or standards in practice across the GCC. There are plans to implement a set of statutes in the UAE, but quite when that will happen is a matter for debate. What isn’t up for debate is that the potential for companies to cut corners and save costs by using products that may not be quite up to the job is there, and that the problem is a concern for the future of con-struction throughout the region.

One of the more troubling areas is in the production of steel rebar for concrete rein-forcing. Concrete’s compression properties are outstanding, but it lacks corresponding tensile properties to give it the strength to be used for load-bearing spans, without the use of steel reinforcing bars, or rebars.

The problem is, cheap and unproven rebar is notoriously easy to manufacture: you just need a mould and a supply of molten steel to produce something that resembles the real thing. It doesn’t take a structural engineer or metallurgist to work out that not all steel rebar is created equal, and that using rebar from an unqualifi ed source is an exception-ally risky business.

“They say that in concrete, you bury your mistakes,” says Ben Bowsher, executivedirector of UK Cares, the British basedcertifi cation body primarily concerned with compliance of reinforcing and pre-stressing steels for construction.

“And the temptation is certainly there, during lean times, to use products that save you money. I’m not saying that I’ve seenexamples of it here in the UAE, but

the temptation is always there, and it’sworrying,” Bowsher said. “I’ve even heard the term ‘blending’ used ¬ and that’s just as worrying. Mixing material from a known source with rebar of an unknown quality is just as troubling because you never know where it’s going to be used.”

Certifi cation is simply a risk-reducing tool. It eliminates the need for procurement managers and purchasing offi cers to check in to the backgrounds of their suppliers or have products individually testing for qual-ity or performance. UK Cares certifi cation includes technical assessment at every step of the production and supply process toensure rebar not only meets therequired standards, but that its technicalspecifi cations also meet those stipulated by British Standards.

COMPLIANCE

Emirates Steel says UK Cares approval gives them a competitive edge over non-certifi ed companies.


COMPLIANCE

It’s not a simple process. It can take UK Cares anywhere from a couple of months to approve a cutting and bending company’s procedures, and up to a year (and even lon-ger if changes have to be made) to approve a steel mill. Audits are carried out twice a year, and certifi cates are issued on an annual basis to ensure companies maintain standards.

The process also costs. UK Cares is a non-profi t organisation but it’s not a charity, so the cost of sending its representatives out to approve and audit companies has to be met by the companies themselves. The market price for steel rebar market price is about $650 (AED 2,400) per ton – and Bowsher estimates the cost of approval and annual audits, across the board, to be around 40p (AED 2) per ton of rebar produced.

“Even if it was 50p or £1 per ton, it’s not a lot of money for peace of mind,” Bowsher said. “We know that customers of the 70 companies with UK Cares approval world-wide are able to sleep at night knowing that products they ordered and paid for areexactly what they specifi ed,” he added.

There are now 10 companies in the UAE and one each in Saudi Arabia, Qatar, Bahrain and Oman that carry UK Cares certifi cation, and each produces rebar with its own mark so that customers can quickly identify prod-ucts from genuine approved suppliers. The latest to join the ranks is Abu Dhabi based company Emirates Steel.

It’s the latest feather in the cap for the company that is one of the fi rst Category 3 companies to be accredited under Abu Dhabi’s new Emirates Health and Safety Management System (EMSMS). Last year,

“UK CARES certifi cation is a risk reducing tool that allows procurement managers to sleep at night”


COMPLIANCE

the Abu Dhabi Executive Council issued an executive decree on the implementation of EHSMS Regulatory Framework in differ-ent industries within the emirate to protect workers, the environment and to ensure the conservation of natural resources.

As soon as the decree was issued, Emir-ates Steel implemented its own Integrated Management System (IMS) to ensure its procedures were in approved to ISO 14001 (Environmental) and 18001 (Occupational health and safety management) levels. It also began the UK Cares assessment process.

“Emirates Steel’s initiative in developing and implementing its IMS not only stems from its desire to excel in the steel industry, but also to protect the health and safety of our employees and the community, as well as our environment,” Abdel Moneim Taw-fi k, Emirates Steel’s Quality Assurance Man-ager said. “Cares approval is a formal rec-ognition of Emirates Steel’s commitment todeliver quality products and ensure customer satisfaction. Cares certifi cation is accepted globally and gives a competitive edge over other non-accredited steel producers.”

While monitoring costs money, so too do changes to production methods – and it’s a concern looming on the horizon as the steel industry looks to become more environmen-tally focused.

“The LEED (Leadership in Energy and Environmental Design) system is good in many ways,” Bowsher said, “The steel in-dustry is going to have to change if we’re to improve our sustainability and low-carbon targets. It’s not going to be easy: producing steel is not a clean process – but there are lots of things we can do to improve it.”

“We have to work more closely with the LEED framework to introduce techniques to reduce factory carbon footprints. It’s what governments are demanding, and we have to change with it,” he said.

While very few disagree that adopting ecological principles are admirable, the LEED ranking system itself has come under fi re from several quarters for adding to the total build cost, without necessarily improv-ing green credentials. Incremental charges for design, documenting compliance, ad-ministrative fees and compliance verifi ca-tion all add up, with some claiming as much as 30% could be tacked on to the total build cost for following LEED ideals.

Architect Frank Gehry, the man behind the Guggenheim Museum in Bilbao and its Abu Dhabi equivalent, has been vocal in his views about the system: “A lot of LEED is given for bogus stuff”, adding that the costs were “enormous” and “don’t pay you back in your lifetime.”

The LEED program is largely voluntary, but more and more clients are pushing for projects that follow its principles. However, LEED's detractors argue that the additional costs could be ploughed back in to develop-ments to make them more environmentally friendly, rather than being spent on admin-istrative processes. The same could be said for spending AED2 on every ton of rebar to ensure that it meets international standards. While it seems a trifl ing amount, it soon adds up with the quantities of steel rebar being used in construction throughout the GCC.

“With more and more pre-cast con-crete being used, I’d hate to think of theconsequences of using substandard rebar and that slab failing while being craned in to position,” Bowsher concluded.

30%

$6504m tons

The amount experts believe LEED certifi cation could add to build costs over traditional methods

Current market value, per ton, of steel reinforcing bars

Estimated amount of steel rebar being used on projects throughout the UAE every year


SUSTAINABILITY

Honeywell worked with FM consultants to implement energy effi cient technology at Meydan.


Everybody is talking about sustainability. Sustainable pow-er, sustainable water, sustain-able infrastructure. The problem

with sustainability in GCC construction is that there is no set way of implementing solutions, and under renewed pressure to go green, developers, property owners and contractors are frantically ‘retrofi tting’ their buildings and structures rather than tak-ing a chance on sustainable systems at the beginning. Aside from being a somewhat costly procedure, retrofi tting has the added disadvantage of causing a great deal of in-convenience to the end users of a building.

A possible solution to the problem being put forward by sustainability specialists cur-rently, is to involve facilities management consultants at the start of a project – a prac-tice relatively unheard of in the region until now. Managing the maintenance and opera-tion of a building, FM companies argue that they are in a good position to advise designers and project managers on technology, equip-ment and systems which will reduce energy consumption and operational costs while in-creasing the sustainability of their buildings.

Simple though it seems, the idea of involv-ing FM companies at the start of a project in-evitably brings with it a degree of controver-

sy, with concerns over costs and confusion over services, at the centre. But like most other developing industry-trends in the re-gion, it seems it is just a lack of awareness as to the benefi ts and possibilities of FM con-sultancy during construction that is keeping the region behind Europe.

A BACKWARDS SYSTEM Famous for launching some of the largest, tallest, fi rst and best projects in world, it may come as a surprise that the Middle East con-struction market could neglect to involve FM fi rms at the beginning of its projects with a view to improving energy effi ciency. Unfortu-nately, both sustainability and FM processes have taken a backseat in recent years, creating widespread fears among energy experts of potential blackouts, high building operational costs and additional pollution.

As an example, Honeywell’s Business Development Director for the Middle East, Kyle Bashy, explains how 70% of properties in Dubai have not had motion sensors in-stalled, even though this one piece of tech-nology could save 80% on a building’s energy consumption. “You walk into any building in Dubai and most of them don’t have motion sensors to control the lights and air condi-tioning. This is essential in a place where

Facilitating sustainabilitySustainable construction: what’s holding the UAE back? CW looks at why involving facilities management companies at the start of a project is the best way to ensure sustainable systems are implemented effectivelyBy Elizabeth Broomhall

SUSTAINABILITY


SUSTAINABILITY

22% of all energy consumed is lighting and another 60% is air conditioning.”

Part of the problem with designing such systems into a project comes from inaccurate assumptions about the price and benefi ts of the sustainable systems themselves, as is the case with solar-powered heating systems.

But the main issue, and a more worrying one, relates to inaccurate assumptions about the value of FM services during the con-struction process, and inevitably, as regards their ability to advise project managers on how to build in a sustainable manner.

“In terms of facilities management, we are a long way behind the likes of Europe and the USA,” says Roger Swainson, the Senior Facility Manager at FM consul-tants Focus International Life Cycle Man-agement. “There is an ongoing struggle to convince developers and project manag-ers of the advantages of facilities manage-ment, which we believe is due to a poor perception of FM in relation to money. Unlike a contractor who usually has something to show for his work, the val-ues of FM are not so obvious, even though it is equally necessary.”

Separately, Swainson explains how there tends to be a short supply of new technolo-gies, which can deter developers and con-tractors from implementing sustainable systems at the outset. “LED lighting for ex-ample, which is more energy effi cient than normal lighting, is new to the Middle East, which means that if one were to visit light-ing outlets here, one would have diffi culty fi nding attractive LED fi ttings, if any at all.”

Of course, there is also the issue of regulation. Damac’s Vice President Niall McLoughlin believes FM involvement is es-sential in sustainability, but that currently, there may not be enough regulations in place to encourage collaborative working. “As a progressive developer, we believe that FM fi rms play an important role if they are involved from the design stage of a project. A sure way of increasing collaboration will be to upgrade various building codes and regu-lations to force parties to work together.”

Indeed, in some European countries, these kinds of regulations are key to ensur-ing sustainable building. “In Greece every building is designed with solar systems in mind, as it is mandatory to utilise solar tech-nology for all projects," explains John Owen of SOLE UAE Solar Systems. "A villa has to have piping on the roof ready for solar sys-tem installation. The truth is that solar sys-tems are easy to install if the project is de-signed to take solar.

THE PRICE OF NON-COOPERATIONEvidently, the problems associated with project managers and FM companies not working together to implement sustainable systems are extensive, though the primary

concern among industry experts is the cost. From the expense of general building maintenance after construction and the obvious costs of high levels of energy con-sumption, to that of damage to the devel-oper and contractors' reputations and the charges to the property owner for the ret-rofi tting itself, not working with FM fi rms comes at a price to clients, developers and construction fi rms alike.

“If you don’t work with FM fi rms to ad-dress sustainability at the design level,” Bashy explains, “it becomes extremely expensive for developers, and sometimes impossible for contractors, to implement green technology further down the line. At Meydan for example, we implemented an IP converged solution which reduces energy consumption by running several operations through one network. We started work one year before the project commenced and insisted on involving FM fi rms, as this solu-tion required very complex cabling works which would’ve been impossible to install after construction.”

According to Swainson, developers and project managers who neglect facilities management also risk acquiring a negative

“There is an ongoing struggle to convince developers of the advantages of facilities management.”

FM fi rms recommend LED lighting at the start of a project to save energy costs in the long run.


SUSTAINABILITY

business reputation. “Poor or non-existent facilities management [at the start of a proj-ect] will inevitably lead to disgruntlement among tenants, which can harm business reputations. It all depends on how much value is placed on assets and reputation, as to whether facilities management is con-sidered important or not. Badly designed and maintained buildings can be a death sentence waiting to happen.”

HOW FM COMPANIES CAN HELPAs a key facilities management consultan-cy in the Middle East, Focus International has been emphasising the advantages of FM involvement during construction for some time.

The company claims it is in a prime posi-tion to assist in implementing sustainable and energy-effi cient systems, by improv-ing the effective commissioning of equip-ment and introducing alternative products that can minimise demands on electrical and water systems. “Many consultants in this part of the world fail to design their systems in such a manner that they can be effectively commissioned, which in turn, will have a negative effect on energy consumption and monthly energy bills,” says Swainson. “For instance, open cool-ing towers have a tendency to waste vast quantities of water. Consideration should be given as to how they can be eliminated in favour of air cooled chillers or closed circuit cooling towers.”

Likewise, McLoughlin believes that FM fi rms can offer advice to project managers which his company as developers might otherwise not consider. “The feedback and suggestions received through FM is critical for sustainability,” he explains. “FMs have actual hands on experience with equipment, allowing them to recommend products to project managers that are cost effective, easy to maintain, energy effi cient and have the right credentials for estimated usage.”

An example is LED lighting. As a natural choice from a post-construction, ‘mainte-nance’ perspective, it is unlikely to be recom-

mended by any other than a facilities man-agement fi rm, but with somewhat specifi c space and cabling requirements, it is critical that the system is accommodated during the design and construction stages. As well as having a lifespan 50 times that of a normal light fi tting, an LED lamp consumes 10-15% less electrical energy, and produces little or no heat. Similarly, energy effi cient lifts, of-ten only recommended by an FM fi rm, can reduce energy consumption in the long run by 50% compared with conventional lift sys-tems, but will need to accommodated dur-ing construction.

Aside from recommending alternative, en-ergy-effi cient equipment, FM fi rms can also advise project managers on energy-saving technology, which again, according to Bashy, they may not already be aware of. “A lot peo-ple in the Middle East are not aware of ad-vances in technology which are available to them, or else they assume it’s expensive.”

Perhaps less obvious, FM fi rms have been recognised for their ability to recommend technology and products that enhance the effi ciency of systems that are themselves not known for being energy effi cient. From insulating paint, to fi nishes that reduce cleaning (and so use less chemicals and cleaning equipment) to technology that en-hances the life cycle of equipment, and en-velope and façade-related products that can minimise HVAC and lighting. Slashing a building’s carbon footprint, these products are frequently recommended by facilities managers, and are just waiting to be imple-mented by Dubai's most forward-thinking project managers. The question is: who is responsible for ensuring this happens?

“Everyone needs to take responsibility,” says Scott Petersen, Marketing Director for Energy Solutions at Honeywell. “Contrac-tors need to take more responsibility for the operation of a building and involve sustain-ability specialists and FM fi rms so they can build buildings in the most sustainable way. Architects and designers need to ensure they design structures which can be oper-ated effi ciently in the long run.”

70%

50%60%

of properties in Dubai do not have motion sensors, despite the fact that this could save 80% on energy use

of energy consumption could be saved with energy effi cient lifts

of energy consumed in Dubai is through air conditioning systems

The new range of Otis elevators can massively reduce energy consumption, according to the company.


A t present, dewa is contracting out most of the UAE’s high volt-age (HV) cable requirements to international players like ABB

of Switzerland, Areva of France, Siemens of Germany and Riyadh Cables of Saudi Arabia. Ducab HV Cable Systems – a joint venture between DEWA, ADWEA and Ducab – aims to slash supply-chain costs and lead times by meeting all the UAE’s requirements locally.

Its products will range from 66 kV to 400 kV, covering the highest voltage used in the GCC at present, and hence becoming the

region’s fi rst dedicated high-voltage facility. “We will focus on 66 kV and 132 kV cables in our initial start-up, and then move gradu-ally onto 400 kV, where the test cycle is about one-and-a-half years,” says Vail. Cable de-mand in the UAE is reportedly about 180,000 copper tons a year, and 770,000 copper tons a year across the wider GCC.

“Ducab currently supplies 50% of the UAE’s low- and medium-voltage require-ments. Once fully operational, Ducab HV Cable Systems plans to sell more than AED 1 billion worth of cable and associated services

High voltageCW talks to Ducab HV Cable Systems CEO Jon Vail about the JV’s plan to make the UAE self-reliant in terms of its HV cable requirementsBy Gerhard Hope

FACTORY BUILD

annually, of which about 60% will be con-sumed in the UAE. The remainder will be exported to the GCC and nearby Asian and North African areas,” says Vail.

The total cost of the new facility is AED 500 million, including working capital. It is being built on a 22 000 m2 area adjacent to Ducab’s existing facility in Jebel Ali. The ground-breaking ceremony was in November 2009, with Khansaheb as the main civils contrac-tor and MACAir as the MEP contractor. The piling contractor was Dutco Balfour Beatty, while the new facility was designed by Hol-fords, a division of Hyder Consulting.

PARALLEL“From a construction point of view, the fac-tory will be completed early next year, by the end of January. Khansaheb has agreed to a time-saving schedule for us to install the ma-chinery in parallel. This will allow us to start installing machines probably by Q2 and Q3 this year. Some of the machines have arrived already, so we just need to get the foundation details sorted out on-site,” says Vail.

“All the equipment has been sourced from major European companies. It is very similar to the equipment we have already, only bigger.


any potential defects in the form of very tiny electrical impulses,” says Vail.

Commenting on the challenges associated with the project, Vail says: “In some sense it is easier starting with a clean slate. When you have an existing factory, the boundaries are al-ready defi ned. With a clean slate, the bound-aries are removed, so you have to look at your existing facilities and ask that if you had to do it again, what could you do better? What can be done to improve it even further?”

SUSTAINABILITYSome improvements to be introduced at Du-cab HV Cable Systems include skylights to al-low more natural light in, and the use of am-bient heating for some of the processes.

The cooling water needed will be circu-lated in a closed system to increase effi ciency, while wastewater will be collected and re-used for irrigation purposes. In addition, con-densate water from the factory roof will also be collected and reused.

Commenting on the new facility’s business plan, Vail says that although it is designed specifi cally for high-voltage cables, it can make smaller sizes as well. “We will need to keep the factory busy with the 66 kV to 132 kV range, which are the bigger volumes and do not require the one-year test. The high-voltage side will be project-driven by DEWA and ADWEA, which will grow their off take gradually.”

As for when the fi rst cable will emerge from the new facility, Vail says: “I expect to be able to fully make and test cable from the new facility by Q1 next year.” The fi rst step in this process is to get the insulation line running, which is critical in terms of the overall quality of the cable. “We have the advantage of being able to get conductor from the existing Ducab facility next door, run it through the new in-sulation line, make a cable and test it until that process is right.”

In terms of logistics, Vail says the new fa-cility will simply tap into Ducab’s existing supply-chain operation. In terms of the over-all management team for the new facility, Vail says he is the fi rst appointee. “We will start to recruit later in the year. At the moment we have a Ducab team of about 30 working on the project. Overall we will create about 100 employment opportunities when the new fa-cility is fully up and running.”

FACTORY BUILD

Ducab's Jon Vail (top, right), with Derek King from Aecom, on site at the build of Ducab HV's new facility in Jebel Ali. The structure of the factory is starting to take shape (bottom), with completion expected in January 2011.

The lead time is ten to 14 months. The build time for the factory when we started was only 12 months, so we had to order the equipment in advance. The equipment defi ned the size of the building. It is not as if we have a building of a predetermined size and will then try and fi t everything in; the building was designed to accommodate the specifi c equipment we need,” says Vail.

It is these specifi c requirements that have resulted in some specifi c architectural fea-tures of the new facility. “It is unusual for a factory because it has a very tall tower over 150 m high, or the equivalent of a 40-storey building. This is necessary for the vertical extrusion process, which we think is the best way to make high-quality cable. There are alternatives involving horizontal extrusion, but we do not think the quality is as high. This means we have invested more capital in the facility itself, but the end result will be a better-quality product,” says Vail.

He points out that the conductors of these 400 kV cables are 2 500 mm2, which is a thou-sand times bigger than a standard household wire. The reels these cables are wound onto are 5 m in diameter. “The major issue with such big cables is the electrical stress, which is just voltage divided by distance. The more stress means that the slightest weakness or defect can cause the cable to break down – and no one can afford to take a risk with these cables.

40-YEAR LIFESPAN“If a building wire does not work, a light goes out. If a low-voltage cable fails, a street may be without power. However, if one of these high-voltage cables goes wrong, you take half of the city out, so you cannot afford to take any risk.” This is why these cables, which are designed to be in use for 40 years, require a one-year test as a representative sample of the intend-ed lifespan.

“Once we have installed the machines, there is still commissioning to do, and of course there is quite extensive testing to make sure the quality is right. Without the quality being good, we will not let it out of the factory. We are building a laboratory facility specifi cally for high-voltage testing, including a Faraday Cage, which is like a big metal box to stop any interference from radios and mo-bile phones, for example, so we can pick up

“It is not as if we have a building of a predetermined size and will then try and fi t everything in; the building was designed to accommodate the specifi c equipment we need.”

PROJECT UPDATE

WANT TO UPDATE YOUR PROJECT'S PROGRESS, OR HAVE IT INCLUDED HERE? Email: [email protected]

ON SITE CW reviews a collection of its most recent site and plant visits to keep you up to date with project progress


Bavaria Gulf’s flagship Sandoval Gar-dens project has been an interesting mix of German and Arab expertise, and its townhouses are near to completion. The 36 townhouses are the first part of an AED260 million twin-development of the overall Sandoval Gardens. All town-houses conform to TUeV, a standard of quality that is a common benchmark, which means all construction and finishing is assessed by a third-party.

Central Sharjah is moving closer to a transformed road system to meet today’s traffic volume, following the latest milestone in Package 5 of the redevelopment of King Abdul Aziz Road. The latest completion of note, officially announced on 30th April, is the opening of the viaduct on the west side of Al Wahda Street. The viaduct crosses King Abdul Aziz Road at a 90 degree angle, itself a major project.

The Saudi Binladin Group for Industrial Precast operates out of Jeddah, a city with a whole street full of offices for the company and on the outskirts there are enormous factories and holding yards. The plant is supplying a number of projects across the country, including the Princess Noura Bint AbdulRahman University for Women in Riyadh and the King Abdullah University for Science and Technology.

SANDOVAL GARDENS

Location Dubai

Visited April 2010

AL WAHDA STREET

Location Sharjah

Visited May 2010

SAUDI BINLADIN GROUP FOR INDUSTRIAL PRECAST

LocationJeddah

VisitedMay 2010


PROJECTS

Construction of Ocean heights tower began in August 2007. The US $175.6 million (AED645 million) main contract was awarded to Arabtec. As it rises, the tower’s floor plates reduce in size, allowing the rotation to become even more pronounced. At the peak of construction, there were 30 contractors and 2000 people on site. On December 23, 2009 – 23 days ahead of schedule – the building was topped off at 310m.

Dubai was thrown back into the limelight when the US $10 million Dubai World Cup kicked off at the new Meydan Racecourse in Nad El Sheba. The enormous 18.6 million m² project consists of four separate areas including the development’s central feature, the Racecourse with Meydan Hotel. Meydan City Corporation has announced plans to build an equestrian city in China’s Tianjin province.

In 1997, way before the construction boom really took off, Dubai Invest-ments’ management took it upon themselves to lay foundations across 24 million m2 of desert and start building a mixed-use city from scratch. In March, the developer announced the launch of the final phase of development, which is set to become a hub for logistics services spread across 500,000m2. Construction was due to start in May.

UAE-based Alec was awarded the main contract to build the US $816 million Mirdif City Centre in September 2007, with construction getting under way almost immediately. Developed by Majid Al Futtaim Properties, more than 16000 jobs were created at the peak of the design and build stage. The team behind the mall are hoping for a Leed Gold rating, to reflect the work they did to make the building sustainable.

OCEAN HEIGHTS

Location Dubai

Visited March 2010

MEYDAN

Location Dubai

Visited March 2010

DUBAI INVESTMENTS PARK

Location Dubai

Visited March 2010

MIRDIF CITY CENTRE

Location Dubai

Visited April 2010


PROJECTS

South of Shamka will comprise of 10,000 new villas, taking up no less than 17 million m2. In January it was at the ground works stage, operations have been split between Tristar Contracting and Bin Nawi Contracting. The site was using a GPS package from Topcon. This comprised a system fitted to two bull-dozers, with a base station and a ‘rover’ – another device which clamps to the side of a car for readings on the move.

Central Market was named Abu Dhabi’s safest construction site just prior to Construction Week’s visit. The project combines three super-tall towers with an Arabian Souk and covers 5.2 million m2. With more than 6000 men on site at any time, the contractor, Arabian Construction Company is proud of its safety record and the measures it takes to keep all of its workforce safe on the massive site.

Infinity Tower, located in the Dubai Marina, is set apart from its neighbours by its rotating structure and is spiraling into the sky at a fast pace. Each slab plate rotates 1.08 degrees around a fixed cylinder core. Once the tower is complete, the 73 floors will add up to a cumulative 90 degree angle. There are no pillars in the building; instead it is supported via a complex concrete column structure.

Business Bay's U-Bora towers is being built by Korean firm Bando, the project features a podium with a curved residence building, which has a roofline that sweeps from 12 levels at one end, up to 16 at the other. The build was started back in 2007, initially with Simplex acting as subcontractor. The subcontractor left site in September 2008, leaving Bando both as developer and lead contractor.

SOUTH OF SHAMKA

Location Abu Dhabi

Visited January 2010

CENTRAL MARKET

Location Abu Dhabi


INFINITY TOWER

Location Dubai

Visited February 2010

U-BORA TOWERS

Location Dubai

Visited March 2010


PROJECTS

Situated near Dhahran on the eastern coast of Saudi Arabia, the King Abdulaziz Centre for Knowledge and Culture is being developed by Saudi Aramco, at an estimated cost of US $400 million (SR 1.4 billion). Covering a total of 70,000m2 the main construction tender for the project was retendered to include more contractors in the bidding process, including Dubai’s Gulf Techni-cal Construction Company (GTCC).

The construction of Phase III of The Avenues, Kuwait’s largest shopping mall, is steadily progressing in the Al Rai district of Kuwait City. The mall has been designed by the London and Los Angeles offices of global architectural practice Gensler. Kuwait’s Mabanee is developing the project. Phase III of The Avenues will consist of more than 86,000m2 of retail space and is sched-uled for completion in early 2012.

Sahara Livings is a residential develop-ment consisting of 84 villas spread across an area of 18,116m² in Dubai Industrial City. Reem Dubai Contracting was given 548 days to complete the project after being awarded the main construction contract in February 2009 and, in December 15% of the development had been completed, with a total of 78 villas currently under construction.

Possibly the most famous building in the world and certainly the tallest, the Burj Khalifa got its official opening in the early days of 2010. Big name contractors such as Arabtec and Besix were involved in the record-breaking build, which also played on the skills of Hyder Consulting and Depa. Developer Emaar made claim to eight world records, all based around the tower’s height and accompanying features.

KING ABDULAZIZ CENTRE FOR KNOWLEDGE AND CULTURE

Location Dhahran

Visited N/A

THE AVENUES

Location Kuwait

Visited December 2010

SAHARA LIVINGS

Location Dubai

Visited December 2010

BURJ KHALIFA

Location Dubai



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Since I fi nished working on the Burj Khalifa late last year, I have to admit I am

still obsessed with the place. And so should everyone be, as this is clearly the one project that is still hugely infl uencing Dubai’s property market, several months after it opened. I hear that secondary sales on the tower are up 30% in recent weeks.

Does this mean everyone is still trying to buy into the project I helped build? Not quite. Word is that since January the asking price for studios in Burj Khalifa has dropped 20%, while two-bedroom apartments have seen prices fall by around 5%. Problem seems to be that since me and my pals handed over the project, it has been pay up time for many investors – who are now struggling to meet their fi nal payments, and so sticking their properties up for sale.

Still, at least not everyone is short of cash. The website propertyfi nder.ae currently has 25 properties for sale in Burj Khalifa,

The price ain’t right

FOREMAN

Never mind the midday working ban, I really think we need an evening working ban so we can all watch the games. I actually think the construction market in the region is getting a pretty big boost from the greatest soccer show on earth.Don’t believe me? Check out what some of the hotels are literally building in terms of outdoor venues for fans to watch the event. My favourite is Le Meridien Hotel in Dubai, where the world famous Barasti Bar has decided to construct a special “fans stadium.”

A couple of my colleagues

On the spot: penalties could be on the cards if rumours of more Salik gates turn out to be true. Meanwhile, what's the chance of an evening work ban for the duration of the world cup?

including a full fl oor with a starting price of AED90m ($24.5m). Located above the 90th fl oor and 15,384 ft2 feet in size, the residential fl oor has a mix of one, two and three bedroom units and is currently owned by an Iranian buyer who is looking to fl ip the property for a profi t.

I wish him well…

Taking its tollDon’t you just love Salik, Dubai’s Road Toll system. On my rather modest salary, I reckon I go through around AED 500 a month at the very minimum. But maybe I should be grateful. Word going round our site is that we could soon be getting a couple of new contracts, for, you guessed it – more Salik gates. Favourite locations are both the Emirates Road and

Al Khail Road in the emirate. Rumours are that there could be as many as 18 new Salik gates built in Dubai over the next fi ve years. I’ll keep you updated if I hear more.

Beach boysSo the World Cup fi nally

kicks off in just six days.

helped work on this project. All will be revealed at a grand opening ceremony on Thursday June 10th, on the eve of the tournament.

But I am told it is an incredible 1500 seater affair that took three weeks to put together. The Park Hyatt in Dubai has gone one better, building not just a mini-stadium but, I hear, an out-door air conditioning system to go with it.

But I'm told that the original plans for the Barasti Beach Stadium were for a 10,000 seater spectacular, practically the size of some of the actual stadiums in South Africa!

FOREMAN

Email: [email protected]

construction week - issue 324

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