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BACS Riyadh Metro Project CWJV Partners Meeting p.3 KAIA Camp Life Almabani Cricket Team p.27 In the News p.27 Procurement Department Q&A with Fernand Elias p.19 Events 2015 Business Plan Meeting p.23 RMP: Prince Turki bin Abdullah Site Visit p.24 Almabani's Eighth Annual Dinner Gathering 2014 p.25 Second PCI Internationl Symposium p.26 Editorial A Fresh & New Look p.2 Issue No. 8 . December 2014 - January 2015 Almabani Headquarters Almabani Building Hail Street, Ruwais District P.O.Box. No. 2781 Jeddah 21461 Kingdom of Saudi Arabia The Almabani Journal [email protected] Tel: (+966 12) 614 7800 ext: 2822 / 2706 Fax: (+966 12) 651 9180 www.almabani.co Almabani General Contractors Almabani Media Department Publication Almabani General Contractors . All Rights Reserved ©2015 Riyadh Metro Project Media Department Sites Tour Youssef Tohmé Vice Chairman p. 5 "The biggest challenge that lies ahead for us as Almabani, is how to sustain growth whilst being competitive" Procurement Department KAR-West Project Reducing Costs VS Maintaining Quality Ongoing Activities & Challenges p. 18 p. 13 p. 10

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Page 1: Riyadh Metro Project · Metro Project CWJV Partners Meeting p.3 KAIA Camp Life Almabani Cricket Team p.27 In the News p.27 Procurement Department Q&A with Fernand Elias p.19 Events

BACS Riyadh Metro Project

CWJV Partners Meetingp.3

KAIA Camp LifeAlmabani Cricket Team

p.27

In the Newsp.27

ProcurementDepartment

Q&A with Fernand Eliasp.19

Events2015 Business Plan

Meeting p.23RMP: Prince Turki bin

Abdullah Site Visit p.24

Almabani's Eighth Annual Dinner Gathering

2014p.25

Second PCIInternationl Symposium

p.26

EditorialA Fresh & New Look

p.2

Issue No. 8 . December 2014 - January 2015

Almabani HeadquartersAlmabani Building

Hail Street, Ruwais DistrictP.O.Box. No. 2781

Jeddah 21461Kingdom of Saudi Arabia

The Almabani [email protected]

Tel:(+966 12) 614 7800

ext: 2822 / 2706Fax:

(+966 12) 651 9180

www.almabani.coAlmabani General Contractors

Almabani Media Department PublicationAlmabani General Contractors . All Rights Reserved ©2015

Riyadh Metro Project Media Department Sites Tour

Youssef Tohmé Vice Chairman

p. 5

"The biggest challenge that lies ahead for us as Almabani, is how to sustain growth whilst being competitive"

Procurement DepartmentKAR-West ProjectReducing Costs VS Maintaining QualityOngoing Activities & Challenges p. 18 p. 13

p. 10

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*Dedicated to our beloved Almabani family

Wrapping up 2014 with seven successful Journals, we are gladly launching the first newly-shaped issue of 2015, which we hope will be up to our readers’ expectations.

In this occasion, I would like to express my gratitude and appreciation to our top management for their generous support on various levels throughout the year.

The Almabani Media Department witnessed in 2014 a thorough reorganization and recruitment of new talents making Almabani's Media Department a fully-geared entity that can serve on different platforms: Corporate Journalism, Advertising Artworks, Video Production, TV Commercials and Internal Communication (Corporate Stationary, Presentations, Reports).

We are growing in the shadow of Almabani’s growth, and we are able to cover all Almabani's projects and activities, implementing the necessary innovative documentation processes, that enables us to keep up with each and every project, conducting regular site visits and using Time-Laps technology where needed, as well as producing documentaries and advertising movies.

On behalf of the Almabani Media Department, I would like to thank all project directors/managers, site engineers and personnel who have facilitated our team's site visits and helped us deliver better coverage for all Almabani's projects.

Sincerely,

John A. El KhouryMedia Department Manager

2The Almabani Journal . Issue No. 8 . December 2014 - January 2015

A Fresh & New Look Next Issue Editorial Preview

Upgrade of Runways, Taxiways & Airplane Parking in KKIA

Where Innovation Meets Creativity A Special Report

Arrival of the TBMs Insight Coverage & Site Visit

King KhalidInternational Airport

Bahra

Riyadh Metro Project

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3The Almabani Journal . Issue No. 8 . December 2014 - January 2015

Riyadh Metro ProjectBACS CWJV Partners Meeting

BACS Civil Works Joint Venture partners held a pivotal meeting on January 13, 2015, in which BACS Consortium Director Dr. Amjad Bangash presented to the attendees a status update on the project, whereby all the ongoing topics were discussed and reviewed. This meeting, held 14 months after the award of the contract, gave the opportunity to the project team to interact and discuss all the challenging matters and objectives of the project with the highest executives of each company of the CWJV, including:

• HE Nehme Tohmé (Chairman), Youssef Tohmé (Vice Chairman), Joseph Daher (CEO) and Alfred Hakim (CFO) of Almabani.• Bill Dudley (CEO) and Brendan Bechtel (President and COO) of Bechtel.• Samer Khoury (President) and Nazih Abdul Kader (EVP Operations) of CCC.

Selected members of the project management team were present as well.

- Riyadh, KSA -

BACS CWJV PARTNERS IN A GROUP PHOTO

BRENDAN BECHTEL WITH H.E. NEHME TOHMÉ

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4The Almabani Journal . Issue No. 8 . December 2014 - January 2015

Riyadh Metro ProjectBACS CWJV Partners Meeting

DAVID WELCH WITH ALMABANI'S CEO JOSEPH DAHER

ELIE CHRABIEH, BACS DEPUTY PROJECT DIRECTOR & ALMABANI'S VICE CHAIRMAN YOUSSEF TOHMÉ

DR. AMJAD BANGASH PRESENTING THE STATUS UPDATE REPORT

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5The Almabani Journal . Issue No. 8 . December 2014 - January 2015

Riyadh Metro ProjectMedia Department Sites Tour

IN ORDER TO SHED THE LIGHT ON SOME OF THE MAJOR ONGOING ACTIVITIES, ALMABANI MEDIA DEPARTMENT CONDUCTED A TWO-DAY TOUR OF SEVERAL RMP SITES ACCOMPANIED BY THE BACS PR DEPARTMENT, WHERE WE HAVE INTERVIEWED SITE PERSONNEL FROM THE METRO PROJECT AND CAME BACK WITH THIE FOLLOWING REPORT.

- Riyadh, KSA -

The Line One North Depot has an area of 127,000m2. This storehouse consists of the following five primary services buildings:- Workshop building, which provides repair service. - Stabling building, where vehicles are parked while awaiting their next turn of duty.- Paint building- Vehicle wash building, a facility used to clean the vehicles- Guardhouse, a building used to house personnel and security equipment

North Depot Interviewee: Sayed Dafrawy, Site Manager

Construction work, as per the baseline plan, will be launched in October 2015. Currently, activities witnessed in this site are the following:- Phase One Mobilization- Fencing, to restrict movement across the site.- Demolition of the existing buildings and structures.- Clearing and grabbing of the waste material from site to the dumping area.

TUNNEL 2-1: NATM TUNNELING WORKS (ROADHEADER)

NORTH DEPOT: SITE CLEARING AND LEVELING

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6The Almabani Journal . Issue No. 8 . December 2014 - January 2015

Riyadh Metro ProjectMedia Department Sites Tour

North Precast Segment Yard Interviewee: Colin Watson, TBM Construction Manager

TBM SEGMENT FACTORY: OVERHEAD CRANE INSTALLATION

TBM SEGMENT FACTORY: INSPECTION OF MOLDS

This is where the production of segments takes place, before transferring them to the TBMs. In the current phase, cladding the exterior of the building is ongoing. Works on the storage area is ongoing as well. In addition, two batching plants will supply the works with concrete.

Until this writing, segments’ production is at early stages (casting). Samples of fire segments were casted: four out of six are ready to be tested for ability, before being deployed inside the tunnels.

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7The Almabani Journal . Issue No. 8 . December 2014 - January 2015

Riyadh Metro ProjectMedia Department Sites Tour

Excavators and rockbreakers are working on the alley excavation to take the current level of the 77x80m excavated area from -5m down to -15m, a total of 62,000m3.The east tunnel is currently 120m long. During our visit, workers were getting ready to start the next excavation after spraying. For this purpose, a

NATM Tunnel Interviewee: Mick Reilly, NATM Tunnel Project Manager

number of equipment were mobilized: a tunneling roadheader (Sandvik MT 360), concrete remixers, dump trucks (for the muck away materials), MEYCO Potenza (for concrete spraying), and the small excavator which is specially designed for mining tunnels.

NATM TUNNEL 2-1 AND OLAYA ICONIC STATION: EXCAVATION WORKS, CRAWLER CRANE AND EXCAVATOR

NATM TUNNEL EAST SHAFT: GENERAL SITE WORKS & THE BOBCAT SKID-STEER LOADER

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8The Almabani Journal . Issue No. 8 . December 2014 - January 2015

Riyadh Metro ProjectMedia Department Sites Tour

North Shaft Interviewee: Joseph Maroun, Site Engineer

NORTH TBM LAUNCH SITE: DEWATERING WORKS & CRAWLER CRANES

NORTH TBM LAUNCH SITE: GENERAL SITE WORK, CRAWLER CRANE, EXCAVATOR & DRILLING RIG

The north shaft is the place from which two TBMs will be launched: one will bore north, the other will go south. This site witnessed many accomplishments in a relatively small time. A total of 155,000m3 was excavated, while the 100x16m shaft is at a depth of 15.5m.

One of the TBMs is expected to arrive by the end of January 2015, whereby this will be our major feature story in the coming issue of The Almabani Journal's RMP exposure.

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9The Almabani Journal . Issue No. 8 . December 2014 - January 2015

Riyadh Metro ProjectMedia Department Sites Tour

Perimeter grating is ongoing in the South Shaft, along with the excavation activity down to the first prop level at -5m. This activity will continue to reach a depth of 24m. However, a challenging element faced in this site is the existing very high

South Shaft Interviewee: Engineer Holger Weinert

groundwater. In this regard, a dewatering system is expected to be implemented in order to remove the groundwater from the construction site, using dewatering pumps.

SOUTH TBM LAUNCH SITE: CRAWLER CRANE

SOUTH TBM LAUNCH SHAFT: EXCAVATION WORKS

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10The Almabani Journal . Issue No. 8 . December 2014 - January 2015

Guest of the JournalYoussef Tohmé, Vice Chairman of Almabani

- Jeddah, KSA - Interviewed by: John A. El Khoury

John El Khoury: At the beginning of this interview, please introduce yourself to the readers, recalling your academic background as well as your early professional days…Youssef Tohmé: I am the Vice Chairman of Almabani General Contractors.I first joined Almabani in 1998, right after my graduation from City University in London where I did both my undergraduate and postgraduate degree in Masters of Civil Engineering.When I joined Almabani, I started my career in the estimation department. I left Almabani at the end of 2000 to diversify our business interests in other fields. In 2001, I established a company called Levant Oil and I was its CEO, we specialized in the importation, storage and distribution of Gasoline, Gas Oil and Bitumen products into Lebanon. The company was extremely successful and we quickly became one of the leading importers of refined products into Lebanon with an annual turnover of 300 Million Dollars a year.In 2009, the company was sold at its peak to a group and re-joined Almabani to aid in the management and development of the company. This decision was driven by several key factors, one the exit of Levant Oil, two the beginning of a new business boom in the construction sector in Saudi Arabia and three the continuity of our family business.

ALMABANI MEDIA DEPARTMENT HAD THE HONOR OF INTERVIEWING ALMABANI'S VICE CHAIRMAN MR. YOUSSEF TOHMÉ IN HIS OFFICE AT THE ALMABANI HEADQUARTERS.

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11The Almabani Journal . Issue No. 8 . December 2014 - January 2015

Guest of the JournalYoussef Tohmé, Vice Chairman of Almabani

JK: How do you describe the moment when you first entered the Almabani Head Office as an active member of the top management of this company?YT: It is just the way one enters his home every day: A family atmosphere.I consider this a rare quality that this company has considering its size.

JK: What can you tell us about the role of HE Mr. Nehme Tohmé, your father and a business leader, in developing your career?YT: In my opinion, a person cannot develop the career of another person. He can help and guide him or her in a certain path, motivate and give words of wisdom. In the case of my father, it is what I have learned from him over the years, by seeing him each day, staying by his side and listening to him. I am motivated by his achievements and success and he has always been an idol, not only to me but to others as well.

JK: How do you see Almabani now, in comparison with the early days of your involvement in its operations?YT: Almabani has grown and its growth is due to several factors. First of all, contracting company relies on the economic growth of the country this plays an important role in the company’s own growth. The second factor are the people in it. When you have motivated individuals, productivity becomes inevitable. Almabani has a mature management team and experienced team. When I say mature it implies that the management team knows how to work together, calculate risk, and take collective decisions to benefit the company from the opportunities at hand.

JK: In your speech at the 2014 Eighth Annual Dinner Gathering, you compared Almabani to a rocket ship. How do you explain to the readers Almabani’s corporate culture that makes it comparable to a rocket ship?YT: I will try to explain it the following way: Almabani is a company that is growing at a fast pace, we are recruiting the best of the best from all fields. Today, we have the best engineers, the best finance experts, the best architects, designers, IT experts, media specialists etc. We have tried to recruit the best professionals from around the world. Those professionals are the real asset of Almabani. I have said this before and I will restate, it is not only about owning large amount of equipment and machinery, our real asset are our people. This is our corporate culture. With each ones potential and with each ones energy and enthusiasm this combined propels us like a rocket ship… The sky is the limit!

JK: A remarkable growth has been witnessed in the role of Almabani’s Estimation Department. In brief, what is Almabani’s estimation strategy?YT: When we talk about estimation, we talk about competitive engineered pricing. If you price too low, you get the job and you might lose money and if you price high, you most likely won’t get awarded. The key is to price right by being creative in your pricing and by having a pro-active approach. In order to achieve this, we rely on vital data collected from past projects, creative thinking and modern value engineering helps us land awards.Almabani is considered nowadays a specialized company in certain fields: we specialize in airports because we know how to price and execute them. We specialize in infrastructure projects because we

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12The Almabani Journal . Issue No. 8 . December 2014 - January 2015

have already executed many complex projects successfully. This does not imply that we do not know how to price and execute projects in others fields but nowadays to survive in this competitive market you have to be the best at what you do.

JK: Talking about Almabani’s field of expertise and specialties, are there any plans to broaden this field… to see Almabani executing tower blocks maybe?YT: We have built high-rise buildings before. The last high-rise tower that we did was the Jeddah Municipality building back in November 2006. However, high-rise buildings are not very common in the Saudi market in comparison with other GCC countries such as the UAE and Qatar. Nevertheless, when the opportunity comes, we will not hesitate. We do have the appetite.

JK: How do you describe 2014 in terms of achieving targets and goals set by the company’s top management? And, in brief, what is Almabani’s 2015 business outlook?YT: 2014 was successful year. We have achieved many of the targets that we had set up. These targets were very challenging yet they were met. Maybe giving a business plan on a year-by-year basis is a little bit short as we have witnessed in 2014, however, 2015 will also be, in my opinion, a good year for Almabani. We still have a lot of projects in the pipeline, and we are hoping to be awarded several others.

JK: Is Almabani going to expand beyond the Saudi borders toward other MENA markets?YT: We have executed several projects beyond the Saudi borders in the past. We worked in Lebanon, Yemen, Oman and Qatar. We have been also worked in Egypt back in the 1980s. However, the Saudi market is the largest market in the region. A small project in the Saudi Arabia is considerable to a large project in neighboring countries.

JK: As we have read in various studies and peer-reviewed analyses, the Saudi market is seen to reenergize in 2015. What is the biggest challenge facing Almabani today, and how do you assess the competition in the Saudi construction scene?YT: In my opinion, the biggest challenge that lies ahead for us is how to sustain growth whilst remaining competitive. Competition is at its highest levels, and we do have a back-up plan should the business strategy change. On the long-term we will eventually look at other markets to expand.

JK: Talking about megaprojects, what is your message to Almabani people executing the Riyadh Metro Project?YT: The Riyadh Metro Project is the largest infrastructure project ever seen in Saudi Arabia. The message that I would like to convey to our team on this project is the following: The work you have done so far is tremendous, and the work yet to be executed will be even greater, you are executing a project that will be recorded as one of the greatest engineering achievements in the Kingdoms history and you will be part of this.

JK: At the end of this interview, is there anything that you would like to add?YT: I would like to thank everyone and I hope to see everyone face to face and get to meet all our new Almabani members in 2015 on a personal level.

Guest of the JournalYoussef Tohmé, Vice Chairman of Almabani

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13The Almabani Journal . Issue No. 8 . December 2014 - January 2015

Development of the Western Part of King Abdullah Road

DEVELOPMENT OF THE WESTERN PART OF KING ABDULLAH ROAD, OR WHAT IS KNOWN AS KAR-WEST, IS NOW CONSIDERED AMONG THE MOST IMPORTANT UNDER-EXECUTION PROJECTS OF RIYADH, WHEREBY IT SERVES SEVERAL PROMINENT LANDMARKS SUCH AS KING SAUD UNIVERSITY.ALMABANI TEAM IS WORKING HARD TO FINALIZE PHASE ONE OF THE PART ‘B’ OF THE PROJECT ON TIME. HARD EFFORTS ARE SHOWN TO FINISH THE DECK SLAB WORKS, IN ORDER TO START ROAD WORKS IN SEQUENCE.

- Riyadh, KSA, Site visit with Enginner Ayman Saeed -

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16The Almabani Journal . Issue No. 8 . December 2014 - January 2015

Development of the Western Part of King Abdullah Road

Among the major challenges that Almabani team has faced subsequent to the hand over of the Part ‘A’ site, was the tough task of excavating a total of 300,000m3 rocky soil area where the underpass will be constructed. Detour works, excavation and retaining walls works have immediately started

in order to have a positive variance of what was already planned.In the meantime, our team is working on the finalization of the Digital City detour in order to have a sufficient working area to launch the rest of the road works and the underpass excavation

SCAFFOLDING AND FORMWORK OF THE WEST SIDE OF BRIDGE 1, PART 'B'

EXCAVATION OF PART 'A' UNDERPASS

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17The Almabani Journal . Issue No. 8 . December 2014 - January 2015

of Part ‘A’, before we proceed in executing Flyover One and the western part of Flyover Two, under Part ‘B’."Our priority now is to meet our target of delivering

an outstanding quality project, on time and under budget, to prove once again that Almabani has a permanent seat among the leading construction companies of the region", concluded Eng. Sa'id.

Development of the Western Part of King Abdullah Road

PREPARATION OF BEARING PADS AT KING KHALID U-TURN BRIDGE PIERS, PART 'B'

BACKFILLING AT KING KHALID U-TURN PIERS, PART 'B'

PROJECT SUMMARY

DAYS SINCE START 270REMAINING DAYS 792TOTAL CUMULATIVE MAN-HOURS TILL DECEMBER 1,858,270 M-HTOTAL CONCRETE QUANTITIES DURING DECEMBER 5000 M3CONSTRUCTION WORKS EXECUTED 28%

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18The Almabani Journal . Issue No. 8 . December 2014 - January 2015

Procurement DepartmentReducing Costs VS Maintaining Quality

- Jeddah, KSA -

The Procurement Department is entrusted with the responsibility of accomplishing the following six objectives:- To procure all the required services, materials, equipment and construction needs in an ethical, legal and systematic manner while ensuring that quality and cost-effectiveness are achieved.- To ensure that procurement transactions are conducted in a manner that provides full and open competition whenever practicable.

- To solicit the participation of all qualified and responsible contractors and suppliers in the procurement process.- To assure equity for all parties involved in the procurement process.- To obtain the best value for the money spent.- To eliminate the possibility of corruption or unethical practices in the procurement process.

JEDDAH-BASED PROCUREMENT DEPARTMENT

FACTS & FIGURES FROM THE PROCUREMENT DEPARTMENT

• NUMBER OF PURCHASE ORDERS ISSUED IN 2013: 1,100 (>300,000,000 SR)

• NUMBER OF PURCHASE ORDERS ISSUED IN 2014: 1,300 (>500,000,000 SR)

• NUMBER OF VENDORS REGISTERED IN THE PROCUREMENT DEPARTMENT DATABASE: 6,500

• ELEVEN PROJECTS CURRENTLY BEING HANDLED AND SUPPORTED BY THE PROCUREMENT DEPARTMENT:

KAIA 2, APRON 6, KFNB, KAU, BAHRA WORKSHOP, TABUK [2], KKIA, DHAHRAN, 7 AIRPORTS AND KHAMIS MUSHAIT

THE PROCUREMENT DEPARTMENT OF ALMABANI IS A HIGHLY ACTIVE DEPARTMENT THAT PLAYS AN ESSENTIAL ROLE IN PROVIDING ALL THE REQUIREMENTS AND NEEDS OF THE PROJECTS, INCLUDING EQUIPMENT, MATERIALS, MANPOWER AND SERVICES.

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19The Almabani Journal . Issue No. 8 . December 2014 - January 2015

Procurement DepartmentQ&A with Fernand Elias, Logistics and Procurement Manager

IN ORDER TO DIG DEEPER INTO THE DAY-TO-DAY ACTIVITIES OF THE PROCUREMENT DEPARTMENT AND KNOW MORE ABOUT THE STRATEGIES AND POLICIES, FERNAND ELIAS, LOGISTICS & PROCUREMENT MANAGER PROVIDED US WITH THE FOLLOWING ANSWERS

- Jeddah, KSA - Interviewed by: Nassim Arabi

Nassim Arabi: First, tell us a little about yourself, your academic background and professional experiences, all the way to your current position as Almabani’s Procurement and Logistics Manager.Fernand Elias: My name is Fernand Elias. I graduated in 2005 with a Bachelor of Engineering in computer and communication engineering. I joined Rotana TV as a telecom engineer right after my graduation. However, and as a result of the July War, I decided to leave Lebanon. I had the opportunity to join Almabani in August 2006, I remember that day very well: Beirut Airport was out of operation because of the war, so I had to travel to Saudi Arabia through Syria.When I first came here, I was handed the responsibility of the procurement department in the South Central Jeddah Sewerage Project, where I had the chance to work with Mr. Elie Eid for three months. I am still thankful for this guy because he is the one who introduced me to the Saudi market, prior to his transfer to King Abdulaziz International Airport Project. Back to the sewerage project, I would also like to pay tribute to Mr. Roy Yazigi, who was the project manager at that time, and from whom I learned how to face the challenges and go beyond the daily usual routine by tackling new tasks that improves the department.My next mission was to handle the procurement department along with the equipment rental and workshop of the Flood Control Measures Project in Jeddah. It was a high-pressure environment whereby we had to complete a huge scope in only six months. At the end of this project I had the chance to complete a training course and got the International Procurement Professional certificate, issued by the International Academy of Project Management. Finally, I joined KAIA team in 2012, where I was assigned in my current position as Logistics and Procurement Manager in late 2013.

NA: When we talk about procurement, we think of purchasing goods at the lowest prices possible. I am pretty sure that you have a broader explanation of your department’s role. Is it just about purchasing?FE: Actually procurement is much wider than purchasing. It is the whole process of acquisition of goods or services, which is now concerned with the total cost of acquisition and not only the lowest possible

FERNAND ELIAS

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20The Almabani Journal . Issue No. 8 . December 2014 - January 2015

Procurement DepartmentQ&A with Fernand Elias, Logistics and Procurement Manager

purchase price. The total cost of acquisition also includes the cost of owning (financing), the cost of operating (maintenance, labor, overheads, etc…) and sometimes the cost of disposing.Procurement incorporates a more strategic approach to the acquisition of goods and services and tends to be more system and process driven. It is a management tool that defines the purchasing policies, objectives and the systematic coordination of all aspects of the procurement process including planning, bidding, assuring proper quantity, adequate quality, negotiating prices and payment terms, shipping , delivering, material storing, issuing and warehouse inventories.The volume of procured materials and services can reach more than 60% from the value of a project. Therefore, procurement can have a dramatic impact on an organization bottom line if not properly handled. Moreover, inventories are crucial in procurement cycle. When you do not have the right inventories, cutting lead times will be the result, risking the acceptable levels of quality and increasing the prices and losing control over costs; this is known as panic purchasing.Planning helps in forecasting all types of unknown activities in a project. Good planning can efficiently accelerate the procurement cycle. It is important to mention here that many purchasers believe that the cheapest option is always the best. However, experience tells us that the cheapest option often ends up being the costliest. Experts say it is unwise to pay too much, but it is worse to pay too little. When you pay too much you lose a little money and that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot. It can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run. If you do that, you will have enough to pay for something better.

NA: What procurement strategies do you use in Almabani? And how to balance between desired values and best prices?FE: In Almabani’s Procurement Department, we do our utmost efforts to avoid panic purchasing. Our strategy is shaped by the following: “to obtain materials of the right quality in the right quantity from the right source, delivered to the right place at the right time”. We work with each concerned department to define the long lead items in a project and define a purchase strategy accordingly.There are many strategies that we usually adopt during the procurement process, including:• Forecasting our need for components 6 to 12 months in advance.• Defining the required quantities of every major item in the project, the required delivery time, and thus the purchase date.• Involving as much suppliers as possible in all inquiries. This helps in generating a competition in prices and quality.

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21The Almabani Journal . Issue No. 8 . December 2014 - January 2015

Procurement DepartmentQ&A with Fernand Elias, Logistics and Procurement Manager

• Maintaining strong relationships with suppliers pays off in shortage crises, as suppliers who enjoy dealing with our company will often “go the extra mile” to help us secure critical components and deliveries.• In a supply crisis, we usually also examine our purchasing history and, based on that history and our valuable suppliers database, an earlier scheduled purchase orders can be released for certain item.• Releasing early purchase orders and contracts along with delivery schedules for the major quantities of key materials. This will definitely help suppliers to set up their production plan (add more manpower, increase productivity by increasing working shifts, buying more machines…) to meet delivery schedules on time. • Allocating many suppliers and avoid dealing with intermediate parties if we can directly deal with the main source and get better commercial offers. • Increasing the purchase volume of required materials from different projects. This ameliorates our position during the negotiations and guarantees better prices and services from the suppliers. Our target is to get the best cost of acquisition with the best quality and price. However, we never sacrifice the quality to attain the lowest price. We ensure that all the products stated in the scope of supply will be in accordance with the client’s requirements and as per applicable international standards and project specifications. We exert all efforts to complete the project below its budget cost.

NA: Is procurement centralized in Almabani?FE: There are few items which are centrally procured in Almabani, such as the bitumen that is considered a crucial material in all our projects. Therefore, we are responsible of all bitumen orders for all the

projects. The procurement department is fully handling Almabani’s Jeddah projects. In addition, our department supports several other projects, especially when it comes to the major or bulk items. Those projects are: Khamis Mushait project, KKIA-AFU project in Riyadh, Tabuk projects, Seven Airports project and Dhahran project.

NA: Apart from your daily job, when does the procurement department face hard times? What is the hardest task you tackle in your profession?FE: We face daily challenges in our department due to the nature of construction that is a fast paced, high-pressure environment. But every time we face a challenge and we solve it out, we end up improving our skills and sharpening our knowledge. I believe challenges elevate the motivation and without challenges we will remain stuck in the orbit of the daily usual routine. To complete a project below its budget cost remains the primary challenge, especially that some

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22The Almabani Journal . Issue No. 8 . December 2014 - January 2015

projects have been priced few years prior to the awarding letter, while the market prices are usually increasing.On my personal level, there were many challenges that I have faced since I joined Almabani back in 2006. To be more accurate, each project had its own challenges. The first challenge was in the sewerage project in Jeddah, which was a joint venture of Almabani, Guris and Dallah. Each company had its own system and mentality. I had to work hard to establish and maintain a procurement system approved by the project management. Another challenge to mention is the logistics work, since the project had more than 15 different locations spread over all the southern part of Jeddah. Thus, deliveries had to be handed to all sites on a daily basis, and we were only two persons in the procurement department.As for the Flood Control Measures Project, our major challenge was time. It was a fast-track project with no room for delays, especially in the procurement activities that were essential in delivering the project on time. For instance, I remember that we had to pour in several occasions more than 3,000m3 per day to complete the project schedule on time.

Moving to KAIA, our major challenge here lies in the huge quantities: the aggregate quantity in this project is more than 3.5 million m3, with more than 75,000t of steel rebar. In this regard, I would like to mention that our CEO, Mr. Joseph Daher, has set a financial saving target for all the remaining materials in this project, and I hope that I will succeed in fulfilling this task with the support of all the procurement department team and other heads of departments.

NA: What does your department need to cope with the fast pace of growth witnessed in Almabani?FE: Almabani is considered now among the leading companies in the Saudi market and our top management is seeking to gain a bigger share every year. I noticed that the management has started to invest in its people by supporting and offering professional trainings at all levels, especially in engineering and design departments. I think this policy should spread to support training courses for all the other departments, to be able to keep tracking with the best practices in the construction industry, on all levels (procurement, cost control, quality, etc...).

Moreover, I believe that it is the time to get a reliable software or an ERP system that links estimation, cost control, procurement and accounting departments. Currently, each project has its own system. This is why we need a unified system in all Almabani’s projects. It might be expensive but this what is being used by all the international and professional companies and I believe it should be implemented as soon as possible.

Procurement DepartmentQ&A with Fernand Elias, Logistics and Procurement Manager

PROCUREMENT DEPARTMENT - ALMABANI KAIA SITE OFFICE

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23The Almabani Journal . Issue No. 8 . December 2014 - January 2015

ALMABANI TOP MANAGEMENT HELD ITS ANNUAL BUSINESS PLAN MEETING ON JANUARY 6, 2015 AT THE ALMABANI HEAD OFFICE IN JEDDAH, SAUDI ARABIA.

- Jeddah, KSA -

The meeting was attended by Almabani’s senior executives: H.E. Chairman Nehme Tohmé, Vice Chairman Youssef Tohmé, CEO Joseph Daher, Senior EVP-Contracting Pierre Mourani, EVP Jihad Mikati, EVP-Operations Jean Akari, EVP-Projects Control Sami Sindaha and CFO Alfred Hakim.During this meeting, Almabani’s CEO delivered an

assessment report of the 2014 accomplishments, in addition to the extensive discussion of the 2015 Business Plan, setting new goals and drawing new growth and expansion strategies for the near future, as well as reviewing the Almabani’s Covenants.(See back cover)

H.E. MR. NEHME TOHMÉ & ALMABANI'S CEO MR. JOSEPH DAHER

JEAN AKARIPIERRE MOURANI

YOUSSEF TOHMÉ

JOSEPH DAHER

JIHAD MIKATIALFRED HAKIM

SAMI SINDAHA

H.E. MR. NEHME TOHMÉ

EVP-OperationsSenior

EVP-Contracting

Vice Chairman

Cheif Executive Officer

EVP

CFO

EVP-Projects Control

Chairman

2015 Business Plan MeetingEvents

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24The Almabani Journal . Issue No. 8 . December 2014 - January 2015

THE MULTIBILLION-RIYAL METRO PROJECT IS 10 PERCENT AHEAD OF SCHEDULE, SAID RIYADH GOV. PRINCE TURKI BIN ABDULLAH BIN ABDUL AZIZ HERE AS HE INSPECTED PROGRESS IN THE CAPITAL CITY.

- Riyadh, KSA, Arab News -

Prince Turki, who is also president of the High Commission for the Development of Riyadh (HCDR), and King Abdulaziz Public Transport supervisory committee, held the 11th meeting of the HCDR in a tunnel. The tunnel is below what would become the Olaya station site, at a depth of 25 meters. Project officials briefed Prince Turki on the drilling that has already extended 218 meters east and west. He had a close look at various aspects of the work including geological tests, and the use of sensors to monitor the thickness of the soil on the surface above the tunnel.Officials also outlined the ventilation, lighting system and equipment to monitor the level of

oxygen and gases inside the tunnel, to ensure that workers are safe underground.Talking to the media, Prince Turki said: “Today we are proud of the achievements I have just seen, which are a tribute to the leadership of Custodian of the Two Holy Mosques King Abdullah.”He added: “The work is great and unprecedented in the world, we should bear this in mind. We are determined to complete the project as soon as possible in accordance with the directives of King Abdullah.”One of the world’s largest metro projects, this automatic driverless network will be over 170 km and have 87 stations on six lines, and is scheduled for completion in 2018.

WORK PROGRESS PRESENTATION INSIDE THE TUNNEL AT -25M

PRINCE TURKI AT THE BASE OF THE SHAFT

Prince Turki bin Abdullah Site VisitEvents: Riyadh Metro Project

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25The Almabani Journal . Issue No. 8 . December 2014 - January 2015

FROM ALL OVER SAUDI ARABIA, ALONG WITH FELLOW COLLEAGUES WHO ARRIVED FROM LEBANON, ALMABANI HELD ITS EIGHTH ANNUAL DINNER GATHERING IN LEYLATY HALL, JEDDAH, ON TUESDAY, DECEMBER 9, 2014.

- Jeddah, KSA -

This year’s ceremony featured the unveiling of Almabani’s new slogan, “In Pursuit of Success”, which was launched by Almabani’s Chief Executive Officer, Mr. Joseph Daher, at the end of his speech.The agenda included three speeches delivered consecutively by the Vice Chairman Mr. Youssef Tohmé, the President of the Board of Advisors Mr. Badr Harb Alzuhair and the Chief Executive Officer Mr. Joseph Daher. The speeches were followed by two films: “In Pursuit of Success”, a television advertisement that describes the long exciting journey of success that Almabani is bound to, and “Beating a Deadline”, a short documentary film that highlights the work progress in the very challenging Makkah-Salahuddin Tunnel Project in Riyadh.

Almabani is inaugurating its 43rd year in the general contracting field. Through the faith and confidence in the competence of each and every single individual in this company, Almabani’s exponential growth is paving the way to expand into new fields of accomplishments and embark on endless endeavors… “In Pursuit of Success”!

ANNUAL DINNER GATHERING SOUVENIR PHOTO

LEYLATY BALLROOM

Almabani Eighth Annual Dinner Gathering 2014Events

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26The Almabani Journal . Issue No. 8 . December 2014 - January 2015

EventsSecond PCI International Symposium

BUILDING ON THE HUGE SUCCESS OF THE FIRST SYMPOSIUM, ALMABANI SIGNED ON AS A SILVER SPONSOR FOR THE SECOND PCI INTERNATIONAL SYMPOSIUM ON PRECAST CONCRETE, HOSTED BY PCI AND E.CONSTRUCT BETWEEN JANUARY 19 AND JANUARY 22, 2015, AT THE DUBAI CONVENTION CENTER.

- Dubai, UAE -

Almabani was represented by Lutfi Ahmed, Head of Design Department, who attended the symposium and the exciting training seminars that featured world renowned speakers coming

from academic and professional backgrounds, to encourage the sharing of best practices in the use of precast and prestressed concrete.

LUTFI AHMED, HEAD OF THE ALMABANI DESIGN DEPARTMENT

AT THE ALMABANI BOOTH

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27The Almabani Journal . Issue No. 8 . December 2014 - January 2015

AMONG ITS EXTRACURRICULAR ACTIVITIES, ALMABANI KAIA CAMP FEATURED THE ESTABLISHMENT OF A CRICKET TEAM THAT HAS BEEN RECENTLY PARTICIPATING IN THREE LOCAL TOURNAMENTS.

- Jeddah, KSA -

- Riyadh, KSA -

- Jeddah, KSA -

Back in January 2014, 15 Almabani employees coming from the Indian subcontinent grouped themselves under the supervision and captaincy of Salim Pookunju, and officially declared the establishment of Almabani cricket team.Using Quraysh Ground as a practicing field, the Almabani cricket team has participated so far in two local tournaments: Jeddah Cricket Association Cup (November 2014) and most recently 2014

Riyadh Gov. Prince Turki bin Abdullah bin Abdul Aziz has announced that plans are underway to hire Saudi women to work on the metro in the capital city.Opening the Producers Exhibition and Conference at the Riyadh International Convention Center, Prince Turki also urged the Riyadh Chamber of Commerce and Industry (RCCI) to support efforts to create jobs for women, reports Arab News.

The first phase of the construction of the new King Abdulaziz International Airport will be completed soon at a cost of SR27 billion.Faisal Bin Hamad Al-Suqair, deputy chairman of the General Authority for Civil Aviation (GACA), told Okaz/Saudi Gazette that when completed the airport will

King Abdulaziz Medical City (KAMC) Cup, in which the Almabani team has successfully defeated the host team in the final, and won the trophy.As a result of its great performance, the Almabani cricket team was invited to participate in the JCL cricket tournament that will be held at the JCL ground in February, with 32 teams competing.…From the Almabani Media Department to our fellows in the cricket team… ALL THE BEST!

"Having home services offered by Saudi women is better and safer than relying on migrant workers or men for these services," he commented, and described Saudi women as the compassionate half of the nation.Related link: http://www.arabiansupplychain.com/article-10761-riyadh-metro-project-to-hire-saudi-women/

have 46 gates and serve about 30 million passengers annually.He said the new airport would have a capacity to handle as many as 92 aircraft at a time.Related link: http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20150123231369

KAIA Camp Life

In the News

In the News

Almabani Cricket Team

Riyadh Metro Project to Hire Saudi Women

First Phase of New Saudi Airport Nearly Ready

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