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Big Project ME, your one-stop guide to construction developments in the region, The Big Project is the Middle East’s leading monthly B2B title for the construction industry.TRANSCRIPT
ALSO INSIDE BECHTEL ON TRACKPUMPED UP TOWERSBRAZIL UNCOVERED: WORLD CUP LESSONSGETTING IT COVERED
088JULY 2013
Big Project disects the region’s healthcare industry
CONSTRUCTION IN GOOD HEALTH
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AD234x290_BigProject_HR.pdf 1 6/25/2013 6:31:19 PM
3JULY 2013 MID
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CONTENTS
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JULY 2013
PAGE 24How the Mané
Garrincha stadium is moving towards
LEED Platinum status
09 The Big picTure
EmiraTES GBC warNS Of rETrOfiTTiNG ExpENSES
Offers recommendations for uptake of energy efficient retrofitting
16 News aNalysis
mOviNG ON up
gih report finds reasons for local contractors to cheer
18 iN prOfile
puShiNG fOr pErfECTiON
Bechtel’s amjad Bangash outlines his plans for the gcc
24 siTe visiT special ThE liTTlE Bird’S hOmE
Big project Me flies to Brazil to see the Mané garrincha stadium
30 special repOrT
whaT qaTar CaN lEarN
The lessons Qatar can learn from Brazil as it prepares wc2022
32 MaiN feaTure
lETS makE ThiNGS BETTEr
Big project Me talks to the experts about healthcare construction
40 TiMe & MONey
CONSTruCTiON COmpuTEr SOfTwarE
ccs gulf outlines why contractors need their software
50 special feaTures
pump iT up
Designing pumping systems for high-rise buildings
a prOTECTivE COaT
how coatings can help preserve the lifecycle of buildings
59 cOMMeNT
imprOviNG hEalThCarE
why gcc governments need to step up social infrastructure
60 TeNDers
BiG BudGET TENdErS
Outlining the region’s biggest tenders
66 cONsTrucTive criTicisM
why Brazil maTTErS
gavin Davids says planning for world cups go beyond the games
You’re smartYou’re in the highly competitive construction industry. You are ten-dering while still overseeing existing construction projects, not getting information from all your sites on time. Accounts are battling to give you up to date reports. It’s seat of the pants stuff, and all the time... you are signing cheques.
6 JULY 2013MID
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EDITOR’s COMMENT bigprojectMe.COM
Stephen whiteGroup Editor
I HAD PROMISED myself that I would try and avoid talking about Qatar this month as I felt that the tiny state has had far too much attention considering its slothenly haze. However the protests in Brazil – timed to coincide with World Cup curtain-raiser the Confederations Cup – served as a timely reminder that hosting the event places countries under intense scrutiny. The construction industry has benefitted greatly from investment into the country. While most of the energies of protestors and NGOs are focused on how the government has chosen to spend its money, a likely moratorium on who has benefitted most could possibly highlight the way construction contracts have been handled to ensure that building is completed on time.
Comparing Brazil with Qatar may be a little like oranges and lemons – one of the world’s largest populations versus one of the smallest, an average national wage of $698 per month versus $2,142 per month – but now is the time for Doha to take the initiative and ensure that its house is fully in order when it comes under the media spotlight.
Yes, its sustainability creditentials will be hotly contested and, yes, it will be continued to be dogged by questionmarks over its right to host the event. In my view, any valid criticism along these lines should be directed FIFA’s way as there are other goals in need of impetus.
I think now is the time to make good on promises to overhaul the existing employment rules. The Migrant Workers Welfare Charter introduced last year is a worthy programme for reform; the Qatar Foundation has said it is prepared to enforce its standards. If it sees it through, Qatar will quickly win friends and the support it so desires at international level.
A labour of love
MID
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Publisher Dominic De SouSa
GrOuP COO naDeem HooD
ManaGinG DireCtOr RicHaRD JuDD eDiToRiaL
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You know what we’re doing this summer.We are getting ready for you.Our website is currently on holiday, getting a makeover. We will be back soon, looking fresh and fantastic.
50 - 57 S.Feats (2).indd 57 7/1/13 11:27 AM
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THE BIGGEST piCTurE
BIG ProJEcT ME TaLkS To aMJad BanGaSH, Md of raIL aT BEcHTEL cIvIL, aBoUT HIS PLanS for 2013 – on PaGE 16
EMIraTES GBc: BUILdInG ownErS can’T Afford GrEEn rEtrofittinG
cOuNcil recOMMeNDs fiNaNciNg scheMe TO sTreNgTheN The upTake Of viaBle, eNergy efficieNT reTrOfiTTiNg prOjecTs iN The uae
THE EMIRATES GREEN Building
Council has proposed the creation
of a financing scheme to promote
the green retrofitting of existing
buildings, to make them more
energy efficient.
According to the proposal,
Emirates GBC will serve as the
facilitator of the project, which
aims to strengthen the uptake of
financially viable, energy efficient
projects in the country. It will
meet with financing institutions,
insurance agencies, suppliers and
regulators to lend momentum to
the project, the Council said.
A dedicated taskforce has been
set up to support the creation of
the green financing scheme. It has
worked with various stakeholders
to address the current challenge
of funding green retrofit projects,
and has been in discussions with
banks and financial institutions to
obtain their inputs.
“One of the key issues
identified in our extensive
studies to promote sustainable
built environments is the lack of
adequate financial support for
retrofitting existing buildings to
new green building standards. We
observed a lack of awareness in
the market about opportunities for
energy retrofitting, and a scarcity
of funds among landlords to make
the necessary changes. Building
owners also do not have any
incentive to implement the energy
savings because electricity bills are
largely paid by the tenants,” Adnan
Sharafi, Emirates Green Building
Council chairman, explained.
“This encouraged us to focus
on promoting the creation of
a green financing scheme for
existing buildings, as making
them ‘greener’ will be a strategic
step to address the energy sector
challenges we face today. A
concerted industry approach,
where stakeholders come together
to create a financing scheme
will significantly boost the green
building sector of the UAE, and
in turn contribute to the nation’s
sustainable development.”
Research conducted by the
Intergovernmental Panel for
Climate Change (IPCC) has
highlighted that improving the
efficiency of existing buildings
– estimated to contribute 80%
of total power usage – has the
highest potential for cost-effective
reductions in carbon emissions.
“With the nation now focusing
more on a strong energy
management strategy led by
renewables and boosting efficient
use of existing resources, green
buildings can complement the
approach effectively by reducing
power consumption,” added
Adnan Sharafi.
80% Percentage of total power usage that buildings account for 40% Percentage by which power demand will increase by 2020
8,271 kilogrammes of oil equivalent energy per annum consumed by a UaE resident on average
170% Percentage increase in regional energy use from 1990 to 2008
big project, big numbers
10 JULY 2013MID
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THE BIG PICTURE bigprojectMe.Com
emirates to open indoor aviation attraction in London
first of its kind attraction opens this month
Emirates has announced plans to open an indoor aviation-themed attraction in london this July, which will be the first of its kind in the world.
The ‘Emirates aviation Experience’ will be located at the South side of the Emirates air line cable car system in london. it will cover an area of 300sqm and aims to provide ‘an insight into the operations and modern achievements of commercial air travel’.
“This high-tech facility will bring to london a one of a kind insight into the dynamic world of aviation,” said Tim Clark, president of Emirates airline.
“The purpose of this centre is to provide a fun, yet educational, overview of just
what it takes to successfully get a 560 tonne aircraft off the ground and 40,000 feet into the sky. Our aim is to explain the intricate science of modern aviation, in a hands-on, entertaining and instructive environment,” he added.
utilising state-of-the-art technology, interactive displays and life-size aircraft models this immersive experience will incorporate several zones that will take visitors on an interactive aviation journey. The Emirates aviation Experience will also feature the world’s first public commercial flight simulators including two airbus 380s and two Boeing 777s, fully equipped with landscape visuals, allowing participants to practice their take-off and landing skills.
The centre will cater to all ages and will open to the public in time for the city’s peak tourism period this July.
PlANS FOR REAl Madrid’s
$1 billion fantasy island in
Ras Al Khaimah have been
abandoned due to lack of
investment.
According to the RAK
Investment Authority, one of
the co-signatories behind the
deal, the ambitious resort,
on Marjan Island, which was
set to include a 10,000-seater
stadium and a Galacticos
museum, was entirely
dependent on funding from
France and luxembourg,
which has since fallen through.
“Building won’t start any
time soon,” a spokesman
told Big Project ME’s sister
magazine, Sports Talk. “Plans
are indefinitely on hold. The
resort stands no chance of
opening in January 2015, if at
all,” he said.
“We have been searching
for funding over the past two
months, but due to harsh
economic times none has
materialised. We haven’t
totally abandoned the project,
but it will need fresh backers,
since we were banking on
promised funds from France
and luxembourg. Even if we
got some today nothing would
be open until the end of 2016,
at the earliest.”
Real Madrid are highly
unlikely to wait, given they
now have firm links in the
region courtesy of their new
$39 million shirt sponsor,
Emirates Airline.
“We only lent our brand to
the Real Madrid Resort Island,”
revealed club president
Florentino Perez. “Real
Madrid did not contribute
financially. We hope the resort
is completed in a timely and
cost-effective manner, but
right now that looks unlikely.
We wanted a base in the UAE
to bring us closer to our MENA
and Asian fan base, but that
may not be possible now.”
rak investment authority confirms that plans to build real Madrid-themed resort are indefinitely on hold
BIG ProJEcT ME vISITS THE ManE GarrIncHa STadIUM In BraSILIa aHEad of THE 2014 worLd cUP – on PaGE 22
miLLion contrAct vALUE for dSi in doLLArS in KSA
Dsi wiNs $460MN sauDi TOwer prOjecT
contractor will oversee and undertake construction work on restarted Lamar Tower project in Jeddah
DRAKE AND SCUll International, the
Dubai based construction firm, has
announced that its general contracting
unit has won a $460 million contract
in the Kingdom of Saudi Arabia. The
contract win from lamar Investment
and Real Estate Development Company
will see DSI Saudi Arabia oversee and
undertake construction on the lamar
Tower project in Jeddah. Having originally
been halted in 2009, the lamar Tower
project has since been restructured and
refinanced in 2013 and is now expected to
be completed by the end of 2015.
rONalDO NOT cOMiNg TO rak resOrT
11JULY 2013 MID
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THE BIG PICTURE
Ksa’s aL jouf cement to stop production Line for unscheduLed maintenance
cement maker insists that halt in operations will not impact on its customer obligations
THE TENDER FOR the
construction of Package 2
at the Oman Convention &
Exhibition Centre Precinct,
which is being developed by
Omran, has been awarded
to Carillion Alawi llC, as
approved by the Government
Tender Board.
Worth a total of $202.6
million, the package will
include the construction of
exhibition halls, car park
facilities and the district
cooling plant.
The scope of Package 2, for
the construction of a project
considered one of Oman’s
most highly anticipated,
includes a structured car
parking facility that will
hold 4,200 vehicles on three
parking levels over an area of
143,000sqm.
Exhibition halls of
approximately 45,000sqm
gross area are also part of
the package. These will also
provide five divisible, state
of the art walls, with service
trenches, plant rooms and
acoustically treated, vertically
movable partitions to enable
separation and sound
isolation in each hall.
Additionally, the scope
will also cover the ancillary
buildings, namely the Energy
Center which serves as the
District Cooling Plant for
the entire precinct, security
screening facility, taxi amenity
building, waste management
building, a landscape
maintenance building and
electrical substation facility.
The project also features
a number of sustainable
initiatives in conservation of
energy, potable water and use
of treated sewage effluent for
cooling and irrigation and
thus targeting leadership in
Energy and Environmental
Design (lEED) certification
from the United States Green
Building Council.
Eng Wael Al lawati, CEO
of Omran said that the award
would make the first part of
the project materialise within
20 months.
carilliON alawai wiNs $202MN OMaN cONveNTiON ceNTre cONTracT
developer omran awards Package 2 contract to omani contractor
BIG ProJEcT ME aSkS THE IndUSTrY ExPErTS aBoUT HEaLTHcarE conSTrUcTIon – on PaGE 30
miLLion doLLArS vALUE of PAcKAGE 2 ocEc contrAct
202Saudi arabia’s al Jouf Cement Company announced that it had to stop its production line for unscheduled maintenance work for two weeks last month.
in a statement posted on the Saudi bourse website, the cement maker said that the halt in operations would not impact on its ability to fulfil its obligations towards its customers.
maintenance work on the plant is expected to cost $1.6 million, the cement maker said, which would be reflected in its second quarter results.
al Jouf Cement has an annual production capacity of 1.23 million tonnes of clinker and 1.47 million tonnes of cement, according to zawya.
$11BN iN cONTracTs awarDeD fOr DOha MeTrO prOjecTs
Qatar railways company hands out construction contracts to consortiums for metro line
LEnGth of UndErGroUnd StrEtch of GrEEn LinE to bE bUiLt bY conSortiUm
LEnGth of thE rEd
LinE SEction of thE mEtro
vALUE of contrAct to bE AwArdEd to conSortiUm LEd bY SAUdi binLAdin
GroUP
$2.19 BilliON
vALUE of contrActS AwArdEd to
Qdvc to bUiLd UndErGroUnd
SEctionS
$2.19 BilliON
$5.9 BilliON
AmoUnt AwArdEd in
contrActS bY QAtAr rAiLwAYS
comPAnYLEnGth of thE
dohA mEtro LinE
12 JULY 2013MID
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THE BIG PICTURE bigprojectMe.Com
tav wins $400mn terminaL contract in saudi arabia
Turkish construction firm to build Terminal 5 at king khaled International airport in riyadh
Tav Construction, the Turkish construction firm, has announced that it has won a tender worth $400 million from the Saudi arabian government to build a new terminal at the king khaled international airport in riyadh.
Terminal 5 is scheduled to be built within 18 months, Tav said in a press statement, adding that the tender was for the design and construction of the building. with the project win, the total contract value of projects Tav Construction has undertaken so far has exceeded $16 billion.
The king khaled airport Terminal 5 project is the third tender Tav Construction has won in Saudi arabia after the Jeddah airport aircraft maintenance hangars and medinah airport projects.
it will involve a 100,000sqm passenger terminal and various auxiliary facilities. The project also includes a 90,000sqm, 3,000-vehicle capacity multi-
storey car park, a fire brigade building, an operations centre, power station, and an apron and other air-side infrastructure.
furthermore, elevated roads and infrastructure work will be done to connect Terminal 5 to already existing terminals.
“as our construction company progresses to expand in the middle East it also continues creating opportunities for our airport operations company. we won the construction project of the new terminal building in riyadh, Saudi arabia for a contract value of $400 million. This is a very important project,” said Sani Sener, Tav Group CEO.
The design of king khaled airport Terminal 5 stands out as a project that will be completed at international standards, satisfy user requirements and display suitability to the local culture, as in all Tav Construction projects, Sener said.
DUBAI IS NOW home to the ‘most
sustainable commercial building in the
world’ – The Change Initiative – on Sheikh
Zayed Road, it was announced after it
secured the highest lEED Platinum rating
from the US Green Building Council.
The Change Initiative is a 4,000sqm
shop that provides sustainable solutions
in Dubai. It secured 107 points out
of a possible 110, making it the most
sustainable commercial building in the
world. The record was previously held by
the Pixel four-level building in Australia,
with 105 points.
“Congratulations on setting a new
record with your lEED for Commercial
Interiors Platinum project. The store is a
great prototype for sustainable real estate
applicable worldwide,” said Richard
Fedrizzi, president, CEO and founding
chairman of the US GBC and chairman of
the World GBC, in his letter to Gundeep
Singh, TCI founder and CEO.
TCI incorporates all aspects of green
building design on its structure, from its
roofing to energy efficient lighting to its
water system.
TCI has 26 technologies, including
solar panels and heat reflective paint, on
its roof that provides 40% of the building’s
energy requirements. Its outer structure
has insulation three times more than that
of a normal building.
DuBai’s Tci raTeD as wOrlD’s MOsT susTaiNaBle cOMMercial BuilDiNg
Building secures 107 points out of a possible 110 from US GBc
biLLion doLLArS totAL vALUE of tAv contrActS
ashghal TO awarD $329.5 MilliON cONTracTs fOr healThcare prOjecTs
Seven projects part of ashghal’s $3.9 billion plans to develop 124 buildings in Qatar over the year
vALUE of contrActS to bE AwArdEd bY AShGhAL nUmbEr of
ProJEctS bEinG
AwArdEd bY AShGhAL
nUmbEr of PLAnnEd
ProJEctS in QAtAr for 2013/2014
vALUE of ProJEctS bEinG bUiLt in QAtAr in 2013/2014
SizE of AL mUntAzAh hEALth cEntrE
22,148sQM
17,165sQM
SizE of thE PLAnnEd AL
nUAim hEALth cEntrE in
LAEbib
WWW.CONSTRUCTIONMACHINERYSHOW.COM
16-20 February 2014
25,000 SQM EQUIPMENT DISPLAY 10,000 SQM
LIVE DEMONSTRATIONS 5DAYS100 LEADING
BRANDS
DON’T MISS OUT ON THE REGION’S LARGESTEQUIPMENT EXHIBITIONFor information contact:Michael Stansfield | [email protected]: +971 55 150 3849
Co-located with Organised by
DAMMAM 2014
Dhahran International Exhibition Center Dammam, Kingdom of Saudi Arabia
FP_standard_24x30cm_left page v5.indd 3 7/3/13 4:43 PM
WWW.CONSTRUCTIONMACHINERYSHOW.COM
16-20 February 2014
25,000 SQM EQUIPMENT DISPLAY 10,000 SQM
LIVE DEMONSTRATIONS 5DAYS100 LEADING
BRANDS
DON’T MISS OUT ON THE REGION’S LARGESTEQUIPMENT EXHIBITIONFor information contact:Michael Stansfield | [email protected]: +971 55 150 3849
Co-located with Organised by
DAMMAM 2014
Dhahran International Exhibition Center Dammam, Kingdom of Saudi Arabia
FP_standard_24x30cm_left page v5.indd 3 7/3/13 4:43 PM
14 JULY 2013MID
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THE BIG PICTURE bigprojectMe.Com
rta wiLL fast tracK $1.3bn expansion of red Line if dubai hosts worLd expo 2020
dubai Metro expansion project will run to dubai world central, chairman of authority says
dubai’s road and Transport authority will fast track the $1.36 billion expansion of the dubai metro red line to connect to dubai world Central, if the Emirate wins the bid to host the world Expo 2020, a top official has said.
dubai has already earmarked a large venue for the Expo at dubai world Central, a 140sqkm airport city that will host the 160 million passenger capacity al maktoum international airport, which is set to be the world’s biggest greenfield airport project.
“as soon as the bid results are out and if we win — which we will inshallah (God willing), we start the planning and development of the project,” mattar mohammad al Tayer, chairman of the Board and executive director of roards and Transport authority (rTa), told media personnel.
al Tayer added that the plan to extend the red line to dwC had been in place for quite a while.
Originally, the plan was for the project to be linked with the growth in passenger traffic at the airport, which is scheduled to launch commercial flights in October, through a temporary five million passenger terminal.
however, should dubai win the right to host the world Expo in 2020, he said that work would begin in November of this year.
214 hOTels TO Be BuilT iN sauDi araBia
ScTa drafts plans to boost investment in hospitality and tourism sector
scc sigNs fuNDraisiNg package fOr $19.3BN ksa peTrOcheMical cOMplex
facility will be world’s largest chemical complex ever built in a single phase
SADARA CHEMICAl COMPANY, a joint
venture between Saudi Aramco and
Dow Chemical, has signed a fundraising
package for a $19.3 billion petrochemical
complex being built in the east of Saudi
Arabia.
Three banking sources told Reuters that
the financing package totals around $12.5
billion and consists of loans from banks,
export credit agencies and the state-
owned Public Investment Fund. Proceeds
from an Islamic bond issue will also be
used. The remaining costs will be met by
the two partners.
located in Jubail City, the facility
will be the world’s largest chemical
complex ever built in a single phase. It
will produce more than three million
tonnes of petrochemicals each year when
completed in 2016. The sources spoke on
condition of anonymity as the matter has
not been made public.
The split between the different portions
of the facility were changed from an
original outline released in May 2012
after the success of the sukuk, which was
completed at the start of April, two of the
bankers said. Sadara raised $2 billion from
an Islamic bond as well as a $4.975 billion
direct loan from the US Export-Import
Bank – its largest ever loan.
biLLion doLLArS LoAn from thE US ExPort-imPort bAnK for SAdArA
bEinG bUiLt in SAUdi ArAbiA ovEr thE nExt
two YEArS
to bE PUmPEd into thE hotEL SEctor bY 2020
thE ProJEct iS ExPEctEd to ProvidE
into AL AQEEr bEAch to tUrn it into A toUriSt
dEStinAtion
ExPEctEd to bE bUiLt in mAKKAh
thE ProJEct wiLL ProvidE to thE hoSPitALitY
SEctor
15JULY 2013 MID
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THE BIG PICTURETHE BIG piCTurE
A GlOBAl INvESTMENT House report has found that
construction contractors have had an upturn in fortunes in the
first quarter of 2013. The report breaks down the sector and
examines the major talking points.
cONTracTOrs ON The up iN Q1 2013
run up in stocK price of contractors
in the past three months there have been significant run up in the stock price of contractors. drake and Scull stock rose by 31% in the past three months amid speculation builder arabtec may buy a stake in the company, a prospect denied this month by management of both arabtec and dSi. alkhodari stock price on the other hand witnessed a run up after it received significant number of new awards during q113.
On a quarter on quarter (qoq) basis the new awards almost quadrupled to Sar1.1bn while backlog rose by 31%. arabtec stock price which witnessed significant run down after announcement of the right issue also witnessed a good ride in the last month after the terms of its right issue clarified. The stock price also rose because of rumors regarding stake purchase of dSi which later became untrue.
AL KhodAri, KSA
ArAbtEc, UAE
dSi UAE
nASS corP,
bAhrAin
dEPA, UAE
cGc, KUwAit
GALfAr, omAn
702.2
1818.0
782.2
88.1
247.5
537.2
736.2
31.6
2.1
1.0
0.2
0.4
1.3
0.5
5.7%
19.3%
8.2%
4.0%
2.6%
0.6%
0.0%
29.0%
5.4%
31.3%
3.4%
2.6%
-2.3%
0.0%
5.4%
-9.9%
37.7%
22.6%
-11.1%
8.4%
0.0%
11.80
21.00
20.80
n/a
13.60
n/a
12.77
1.90
1.10
0.80
n/a
0.53
n/a
1.37
SOURCE: BLOOMBERG & GLOBAL RESEARCH
* MARKET PRICE FOR AL KHODARI AS OF 29 MAY 2013 AND FOR OTHER STOCKS AS OF 30 MAY 2013
MkT cap(usDMN)
priceiN (lc) 1M 3M 12M
sTOck perfOrMaNce p/e2013e
p/Bv2013e
contractors financiaL performance
The GCC construction sector’s top line was $1.4 billion in q1 2013, down 12.1% qoq but up 21.1% yoy. The sector’s top line was dragged down by industry heavyweights arabtec and akS, whose top lines declined 6.5% qoq and 7.9% qoq, respectively, which more than offset the 1.8% qoq rise in dSi’s top line in q1 2013.
The sector’s decline is mainly ascribed to slower execution of projects during the quarter. This could hurt revenue growth in the upcoming quarters. at the same time, a large decline in project awards during q1 2013 could also translate into muted revenue growth. among uaE firms, dSi remained the better performer, with revenues rising 1.8% qoq to $334 million in q1 2013. in contrast, arabtec’s revenues declined 6.5% qoq to $420.64 million;
besides the existing tough competitive environment, the biggest concern for the uaE contractor is the steep fall in project awards in q1 2013. dSi’s project awards fell 61.3% qoq, while that of arabtec declined 77% qoq during the quarter. Nevertheless, the companies’ margins improved significantly in q1 2013.
arabtec’s gross margin surged to 12.3% in q1 2013 from 5.0% in q4 2012, while net profit margin rose to 4% in q1 2013 from 1.9% in q4 2012. dSi’s gross margin also improved to 10.6% in q1 2013 from 8.6% in q4 2012, while operating margin rose to 4.6% in q1 2013 from 2.2% in q4 2012.
The rise in margins was primarily due to a fall in construction costs. reduced financial charges also boosted the margins.Overall, GCC companies put up a weak performance during q1 2013, after recovering strongly throughout 2012. a steep decline in project awards and slower execution remain major concerns for the immediate future, while rising construction costs and competition are expected to keep margins under pressure in the medium term.
projects country by country1,800.0
1,440.0
1,080.0
720.0
360.0
-SAUdi ArAbiA UAE omAn KUwAit QAtAr Gcc
gcc projects marKet siZe 2,500.0
2,000.0
1,500.0
1,000.0
500.0
-2004 2005 2006 2007 2008 2009 2010 2011 2012
(USd
bn)
mena contract awards80
70
60
50
40
-
30
20
10
1Q
-08
2Q
-08
3Q
-08
4Q
-08
1Q
-09
2Q
-09
3Q
-09
4Q
-09
1Q
-10
2Q
-10
3Q
-10
4Q
-10
1Q
-11
2Q
-11
3Q
-11
4Q
-11
1Q
-12
2Q
-12
3Q
-12
4Q
-12
4Q
-13
16 JULY 2013MID
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following a positive first quarter, the
GCC’s construction industry looks
set to continue its upbeat trend in
2013, with government spending and
strong economic performance fuelling
growth in the sector, a new report released
by Global Investment House has claimed.
After a drop off in 2011, the
construction industry rebounded in 2012
and is expected to maintain its upward
trajectory going forward in 2013.
“The total value of ongoing projects in
the GCC region stands at $2,620 billion,
with the UAE leading the pack with $894
billion, followed by Saudi Arabia ($875
billion) and Qatar ($364 billion). We
remain positive on the sector, considering
the expansionary budgets of governments
and focus on infrastructure development
in the region. Furthermore, a favourable
level of oil prices is expected to augur well
for the sector,” the report by GIH said.
It pointed out that the UAE’s
construction market remained attractive
due to its focus on infrastructure projects
and investor friendly policies. The report
expects the sector to be driven by the
UAE’s rapidly growing population, which
is expected to reach 6 million by 2014,
from 5.4 million in 2010. Consequently,
the UAE’s construction sector is expected
to account for around 11.1% of the UAE’s
GDP by 2013, a sizeable jump from 10.3%
in 2011. Meanwhile, in Saudi Arabia, the
Kingdom’s strong construction market is
being driven by government spending and
high oil prices, the GIH report said. For
2013, the Kingdom budgeted $219 billion
for spending, up by 18.8%, year-on-year,
“i SEE dUbAi AS hAvinG hUGE PotEntiAL And EconomicALLY, thinGS ArE SEttLinG down And confidEncE iS rEtUrninG. So wE viEw it in A vErY PoSitivE LiGht”
mOviNG ON upA report by Kuwait’s Global Investment House finds reasons for construction contractors to be cheerful
17JULY 2013 MID
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from 2012. Out of this, almost $76 billion
has been set aside for capital expenditure
on investment projects, the report added.
“The Kingdom remains focused
on investing in road, railway, power
and housing projects. Moreover, the
introduction of a new mortgage law is
expected to contribute to the growth
of the residential sector in the coming
quarters,” said Faisal Hasan, CFA and
researcher for the report.
“High oil prices remain an important
driver for KSA’s economy, which will
further drive the construction sector.
Despite a projected fall in oil prices
in 2013, the forecasted prices are
substantially higher than the estimates for
KSA’s 2013 budget. However, slow project
awards continue to be a concern for KSA’s
market. Despite the large pipeline of
projects, the authorities have struggled to
plan and approve projects,” he added.
Qatar’s construction market continues
to be fuelled by its ‘vision 2030’ and
ongoing preparations for the 2022 FIFA
World Cup.
The Qatari government intends to
spend around $200 billion in the next ten
years, out of which, $140 billion has been
allocated for the next five years, the report
said, adding that the construction market
remained focused on infrastructure
projects related to transportation and
commercial facilities.
Kez Taylor, CEO of AlEC, added that as
a contractor, he sees Qatar and the UAE as
the two major growth areas in the region,
with airports and other transportation
infrastructure construction the biggest
drivers of business for him.
“We’re working on the Doha Airport and
we’re doing the fit out of all the Duty-Free
Areas there,” he tells Big Project ME. “We’ve
got to look at where the market trends are.”
“If you look at Dubai, I see Dubai as
having huge potential and economically,
things are settling down and confidence is
returning. So we view it in a very positive
light,” he said.
It is increasingly clear then that there’s
significant positivity in the regional GCC
market, but there are area of concern
that need to be addressed as a matter of
priority, Hasan says in the report.
“Despite the momentum gained
over the previous quarters, higher costs,
intense competition, and slow project
execution remain the key obstacles for
the MENA construction sector,” explained
Faisal Hassan.
He added: “Construction costs rose
significantly in the construction markets
of Saudi Arabia and Qatar, while the
UAE market has been struggling due to
increasing competition.”
The UAE construction market has
been suffering from severe competition
due to the entry of new players over the
past few years coupled with the ongoing
consolidation in the industry.
Availability of fewer projects combined
with higher number of contractors has
considerably reduced margins of firms in
recent times.
Meanwhile, the Saudi Arabian
construction market continues to be
adversely impacted by rising construction
costs driven by employee costs.
Ongoing implementation of
Saudisation across the Kingdom, coupled
with visa issuance hurdles, continue to
affect industry players negatively, Hasan
explained further.
The rapidly growing construction
market in Qatar remains burdened with
high input costs that are driven by rising
cement prices.
Current estimates show that the
country’s cement production would be
inadequate to meet the market demand
and lead to a major supply shortage in the
next three to four years.
Thus, the government has been
working on signing new supply contracts
with firms in the UAE and Oman to
prevent a sudden increase in prices.
Moreover, the country continues to face
shortage of skilled labour due to the
existing salary levels being lower than
those of other markets. n
“thE KinGdom rEmAinS focUSEd on invEStinG in roAd, rAiLwAY, PowEr And hoUSinG ProJEctS. howEvEr, SLow contrAct AwArdS continUE to bE A concErn”
gcc projects (2013)
n $2,620 billion Total value of ongoing projects in Gcc
n $894 billion value of UaE projects
n $875 billion value of kSa projects
n $364 billion value of Qatar projects
conStrUction SUrGEThe UAE construction sector is expected to account for 11.3% of GDP in 2013.
18 JULY 2013MID
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19JULY 2013 MID
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In ProfILE amJad BaNGaSh
ever since it was founded more than
a century ago, Bechtel’s history has
always been closely linked with
the railways. In fact, according to
company history, its founder, Warren A
Bechtel, began his career as an employee
of the US railroad industry before starting
up a contracting business that specialised
in railroad and highway building.
Over time, the company grew to
become the largest construction and
engineering company in the USA, with
revenues of more than $37.9 billion
annually and more than 50,000 employees
working across some 40 countries.
At present, Bechtel’s portfolio extends
across all sectors of the construction
industry, encompassing energy,
transportation, communications, mining,
oil and gas and government services.
However, despite this diversification, the
company has never forgotten its roots
in the railway industry. This is where
Amjad Bangash comes into the picture.
As managing director of Rail at Bechtel
Civil and a senior vice president, he is
responsible for overseeing a vast array of
rail projects, ranging from the ambitious
and complex Crossrail project in the UK to
tendering for the Riyadh Metro project in
Saudi Arabia.
Having worked for the company for
more than 20 years, Bangash has been
involved in a number of major projects
in the region, most notably as project
director for Bechtel at both Khalifa Port
and Khalifa Industrial Zone Abu Dhabi in
the UAE.
Bangash originally joined the
company as a senior engineer at the San
Francisco head office and undertook
project assignments in construction and
engineering in the US, Nigeria, Thailand
and Guyana. From there, he moved into
engineering management and has helped
lead projects such as the Kowloon-Canton
RC West Rail Project in Hong Kong and
the Airport MAX light-Rail Project in
Portland, Oregon.
Moving into senior management,
Bangash has since been in charge of an
ambitious renewal and upgrade of the
london underground, specifically the
Jubilee, Northern and Piccadilly lines.
Following immense success in this role,
in August 2012, he was appointed as
managing director for Rail at Bechtel,
where he has been tasked with expanding
its global rail and transit business.
With this in mind, he sat down with
Big Project ME to discuss his plans for the
“riYAdh iS ProbAbLY AS fAr AhEAd AS AnYbodY riGht now in tErmS of AdvAncinG thE dEvELoPmEnt of A mEtro SYStEm And thAt’S drivEn JUSt bY mASS trAnSPortAtion nEEdS in An UrbAn EnvironmEnt” AmJAd bAnGASh
Bangash aims to focus on infrastructure in the Middle East.
bechteL by numbers
n $37.9 billion Bechtel annual revenues
n 50,000 Global number of employees
n 40 number of countries Bechtel is present in
Big Project ME meets with Amjad Bangash, managing director of Rail and senior vice president at Bechtel Civil, to find out what his plans are for one of the fastest growing markets in Bechtel’s portfolio
puShiNG fOr
pErfECTiON
20 JULY 2013MID
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Middle East and outline the potential he
sees in what he calls ‘one of the largest
global rail markets.’
“We think that this region is projected
to grow at about 16% in the rail business,
compared to, globally, about 9%. I’d say
it’s the only region, other than let’s say
China, where numbers vary, that there are
lots of pockets (of growth).”
“This is one, Brazil another one. Brazil
has a very aggressive rail investment plan.
Of course, in expanding the region here,
Africa is right behind, but the drivers
in Africa are more bulk movement,
mining-related and energy-related rail
development. But coming back to this
region, the drivers are obvious. In KSA,
you see a fairly big concentration of cities
that are growing and have growing needs,”
he explains.
“Riyadh being a very good example
of a city that is at the front end. They’re
probably as far ahead as anybody
right now in terms of advancing the
development of a metro system and that’s
driven just by mass transportation needs
in an urban environment. The other piece
of course, is the huge amount of recent
development in industrial zones across
the Middle East,” Bangash adds.
It’s clear then that the Middle East is
going to play a huge part in any future
plans Bechtel has. Therefore, it comes as
no surprise that the construction giant
plans to set up what Bangash says is a
‘Centre of Excellence’ in Dubai.
Aiming to be a global resource of
engineering talent, the centre will initially
focus on rail and marine engineering
projects, but will eventually branch out to
all areas of Bechtel’s portfolio.
“The purpose of the office here is more
about tomorrow than today,” Bangash
says. “The idea is to start small and then
continue to develop this. I would say that
we’d probably start with about 100 people
and then continue to develop that.”
Given the amount of work available
in the Middle East region and its
neighbouring regions, he adds that it
made sense to set up in Dubai, for a
variety of reasons.
“It’s not just the fact that we’re within
an eight-hour flight of many of the
regional centres, but it’s also because
Dubai and Abu Dhabi have a lot of talent
in the industry – just about every major
engineering company is based here.”
“Of course, it’s a place where we
can bring people from just about any
country, without barriers to bringing
them in,” he points out.
“Not many countries offer that sort
of transparency to concentrate on the
talent, rather than the passport they
hold. For a business like this, we need to
bring talent in globally, rather than be
“thE PUrPoSE of thE officE in dUbAi iS morE AboUt tomorrow thAn todAY. thE idEA iS to StArt SmALL And thEn continUE to dEvELoP thiS”
KhALifA PortThe Khalifa Port in Abu Dhabi was a major project for Bechtel.
Conversion to cold storage, Alsafi Danone, Al Kharj, KSA
Planning ASG Contracting RiyadhBuild 2012Application - Roof 3000 m2, FOAMGLAS® READY BOARD T4+, 70 mm thick and T4+ slabs, 30 mm thickApplication - Wall 2000 m2, FOAMGLAS® T4+ slabs, 70 mm thickFinish UV resistant bituminous layer waterproofing
Roof system1 Existing PU-panel, 50 mm2 FOAMGLAS® T4+ filler,
30 mm, in corrugation glued with PC® 11 adhesive
3 FOAMGLAS® READY BOARD, 70 mm, glued with PC® 11 adhesive and mechanical fixation
4 Two layers of bituminous waterproofing membrane; top layer UV-resistant
5 Anchor F fixed into existing PU-Panel
Upgrade for a lifetime with durable and fire safe FOAMGLAS® insulation material.Web: www.foamglas.ae Email: [email protected] Dubai office Tel: +9714 434 7140 Doha office Tel: +974 465 5360
FOAMGLAS® Insulation
The Alsafi farm in al Kharj KSA is the largest integrated dairy farm worldwide with Guinness World Book of Records entry 1998. The farm is fully integrated from the growing of forage to the final distribution of milk and dairy products and includes factory and storage facilities. Due to the adjustment of the daily need the upgrading of a storage to a cold storage needed to be done. The client decided to follow a proposal to upgrade the building envelope on the roof and the wall with FOAMGLAS® systems which are FM approved. The existing PU-panels on the hall were the base for the application of the FOAMGLAS® on the roof. The corrugation filler and the top layer are executed with FOAMGLAS® cellular glass insulation. A double layer bitumen membrane is the waterproofing and final finish of the roof. Final performance testing of the client showed excellent performance to the full satisfaction of Alsafi Danone.
Roof Upgrade to High ThermalPerformance
ASTM E84, E136
ThE
BEST
FACA
DE FoR high RiSE BuilDingS
FIRE SAFE
1
2
3
4
22 JULY 2013MID
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limited to where we come from and then
get mired in immigration issues. So it’s
an attractive spot.”
Situated in Dubai Marina, the Centre
will initially start off small, with just one
floor in an office tower near Marina Mall.
About 100 individuals will be trained
at first, with the numbers continuing
to grow, dependent on future success.
Bangash says that operations will
start in the summer of 2013, with final
preparations close to being completed.
In time, he hopes that this ‘Centre of
Excellence’ will grow to be an institution
that will serve a huge section of the world,
taking advantage of Dubai’s central
location and connectivity to South East
Asia, Africa and the wider Middle East.
“not mAnY coUntriES offEr thAt Sort of trAnSPArEncY to concEntrAtE on thE tALEnt, rAthEr thAn thE PASSPort thEY hoLd. for A bUSinESS LiKE thiS, wE nEEd to brinG tALEnt in GLobALLY, rAthEr thAn bE LimitEd to whErE wE comE from”
“Iraq is definitely on the map. We
are looking (into it) and we do have a
team that goes there. We’re doing some
work there and as the security situation
improves, you’ll see a lot more work going
on there. Today, there’s still a lot caution
about Iraq,” he tells Big Project ME.
“In South East Asia, let’s talk about
India. We have a fairly big office in India
– about 600 to 700 people in New Delhi
– but I think you’ll see better synergy
between this office (in Dubai) and India.
The idea is to maintain the workload so
that we’re not creating a bust and boom
in one office versus the other. The office in
India has a lot of expertise and if they have
a lot of expertise in certain areas, then we
may use those rather than duplicating
them here,” Bangash explains.
“In Africa, we’re currently supporting
Mozambique and we have a fairly
large presence in Gabon. A lot of these
projects (in Africa) are mining and port-
related developments. Therefore, the
infrastructure, we could support from
here (Dubai). Those are some of the
projects that we’re currently supporting
from london, which we would eventually
support from here in Dubai.”
n 15% revenue growth in 2012
n $24 billion new work booked in 2012
n $32.9 billion Total revenue in 2011
n $53 billion new work booked in 2011
rAiL focUSBechtel believes the up-coming rail projects will be a major opportunity for business.
23JULY 2013 MID
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centre of exceLLence
Bechtel’s global centre of engineering
excellence in the UaE will initially focused
on rail and marine engineering projects.
The centre uniquely positions Bechtel
to provide customers with high-quality,
innovative engineering solutions more
efficiently and cost effectively.
“rail and port infrastructure go hand-in-
hand and are the lifeline for transporting
goods around the world from major
petrochemical, power, and mining
facilities,” said amjad Bangash, managing
director of Bechtel’s global rail business.
“The global demand for rail and port
infrastructure will increase substantially
during the course of the next 10-15 years.
This centre provides customers around the
world with a comprehensive solution for a
successful project right from the start.”
“Much of the growth for new railways
and ports is in the Gulf region. we have
worked in this region for more than 70
years, and our decision to base the centre
in the UaE represents part of our ongoing
commitment to the region,” added david
welch, Bechtel’s regional president for
Europe, africa, and the Middle East.
The centre will draw upon Bechtel’s
global experience and expertise in the
design and construction of railways and
ports, and will offer services from master
planning studies through to engineering
execution.
The new centre will open in the third
quarter of 2013.
For the mean time though, the focus is
firmly on the Middle East, and on the GCC
in particular. Therefore, Bangash has his
eye on the number of huge rail projects
that are coming up in the region. The
Riyadh Metro is one in particular that he’s
determined to get.
“With the Metro, we’re part of a
consortium with Siemens, CCC and
Almabani. We were part of the original
design-build qualification process, and at
that stage, we did not have a global rolling
stock partner with us, and we didn’t make
the original cut,” he relates.
“But later on we were able to come
back in and took part in it. You’re
probably aware that most of the consortia
changed, so that was part of the process
and we were part of that development.”
“The client wants to award the contract
before Ramadan, which with a job that
size, anything can happen if all parties put
their heads together, but it’s a tall order.
But that still is the plan, to award that, and
we’re still in the running,” he says.
“In the current bid cycle, we’ve been
in the Mecca Metro, also with the SAR
(Saudi Railways Company) with the Jubail-
Dammam project. There’s nothing in Doha
(at the moment), but we are looking at the
railway in Oman, I think that will be good.”
“And of course, we’re part of the
industry consultation for the Abu Dhabi
metro and we definitely have an interest
in that. Right now, the interest is EPC,”
he adds, making it clear that there are
major plans afoot for the contractor from
California as it looks to move away from
its traditional Oil and Gas operations.
“The area we’d like to see a growth in
is in the infrastructure business in the
Middle East,” he says. n
“wE thinK thAt thiS rEGion iS ProJEctEd to Grow At AboUt 16% in thE rAiL bUSinESS, comPArEd to, GLobALLY, AboUt 9%.”
24 JULY 2013MID
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Project Name
Location
Site Area
Project type
Construction cost
Estádio Nacional Mané Garrincha
Brasilia, Brazil
218,800m2
Multi-use Stadium
$445 million
The Estádio Nacional Mané Garrincha is the first stadium in the world that is applying for LEED Platinum status. Big Project ME’s Gavin Davids flies out to the capital of Brazil to investigate.
ThE liTTlE
Bird’S hOmE
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brasilia, the capital of Brazil, is a
city that is known for its vibrant
architecture and design, having
being designed, almost completely,
by the world-renowned Brazilian
architect, Oscar Neimeyer.
While most planned cities can come
across as fairly cold and functional,
Neimeyer used his considerable talents
to help imbue Brasilia with a sense of
his style, turning the city into a living,
breathing tribute to the art of architecture.
It was no surprise then, that when plans
for the construction of a new football
stadium in the city were announced,
the remit from its owner, Novacap
(Urbanisation Company of New Capital
of Brazil) was to create a structure that
would pay tribute to the ideals espoused
by the creator of the city.
As such, the Mané Garrincha Stadium,
which is the second largest football
stadium in the country, was built as an
eight storey structure that is divided into
four sections. It stands at 46m tall and has
a built up area of 218,800m2.
The stadium is named after the
Brazilian football legend, Mané
Garrincha, who starred in Brazil’s World
Cup wins in 1958 and 1962. Garrincha,
who’s name translates as ‘little Bird’, was
beloved by the Brazilian people, and this
“thE EStádio nAcionAL mAné GArrinchA iS onE of thE moSt modErn StAdiUmS in thE worLd”
mane garrincha in numbers
n stadium capacity: 72,788
n cost of stadium: $445 million
n height: 46m
n façade: 288 pillars surrounding the stadium
n Number of workers on project: 15,000
n promenade area: 618 thousand sqm
n concrete: 117 thousand cubic metres
n pre Moulded parts:1064
n steel: 22.2 thousand tonnes
n sand: 170 thousand tonnes
n Timber: 15 thousand cubic metres
26 JULY 2013MID
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devotion is borne out by the battle the
Brazilians waged with football’s governing
body FIFA to ensure that this stadium was
named in his honour.
Officials at the stadium told Big
Project ME that given Mané Garrincha’s
chequered personal history, FIFA was
reluctant to allow them to give the
stadium his name.
However, they refused to be swayed
and eventually the weight of public
opinion won out.
Designed in a circular shape, the
stadium has been built with 228 1.2m
diameter pillars creating a façade that
surrounds the stadium. The pillars also
sustain a concrete compression ring
which supports the roof of the stadium.
The roof itself is designed as a double-
shell structure with an outer compression
ring. It also has metal cables and trusses
that are covered by a fibreglass membrane
that is coated with Teflon, the builders
say. The membrane is 40,000m2 in size.
Furthermore, there is a 618,000m2
promenade surrounding the stadium,
with crowd flow facilitated by 50 ramps,
four escalators, 60 stairways and 20 lifts.
Named after the iconic football
player, the construction of the Mané
Garrincha Stadium began by the end of
2010, following the demolition of the old
ground, which was deemed unsuitable
for the demands posed by the 2014 FIFA
World Cup.
As such, the Federal District
Development Agency (Terracap), who
provided the resources for construction,
and Novacap decided to build a
completely new stadium that would
measure up to the highest levels of
sustainability and design.
To that end, they first awarded the
construction contract a consortium of
Andrade Gutierrez and via Engenharia to
build the $445 million stadium. German,
Marg und Partner (GMP) and Castro
Mello provided the design of the stadium.
Schlaich Bergermann und Partner
(SBP), along with Engserj and Belo
Horizonte were appointed to provide the
structural engineering services.
Not content with building the stadium
to the highest levels of quality, the
Brazilian government was determined
to ensure the stadium embraced
sustainability across the board. To that
end, they decided to ensure that the Mané
Garrincha Stadium would become the
first lEED Platinum certified stadium in
the world, and one of the few buildings
awarded that recognition.
“(This stadium) is to be an example
and a reference for using energy, recycling
water and residues,” says Aldo Rebelo,
Sports Minister for Brazil, and the
man tasked with ensuring that all the
preparations to host the globe’s biggest
sporting event are up to scratch.
“All the stadiums are up to date,
in terms of the timeline and their
schedule. We’ve been monitoring their
schedule ever since the beginning of
the programmes, the evolution of the
construction work, month by month, and
we conclude that they’ll all be ready for
delivery by the end of the year,” he says
ahead of a tour of the Mané Garrincha
Stadium in Brasilia.
He adds that it was vital for the
government to meet the lEED
specifications, despite the costs it would
“(thiS StAdiUm) iS to bE An ExAmPLE And A rEfErEncE for USinG EnErGY, rEcYcLinG wAtEr And rESidUES”
SUStAinAbLE iconThe stadium is set to be a landmark for sustainable construction.
n sectors: 4
n storeys: 8
n gates: 19
n Turnstiles: 158
n ramps: 50
n escalators: 4
n stairways: 60
n elevators: 20
n Boxes: 74
n Toilets: 276
n Bars: 40
n restaurants: 2
n snack Bars: 14
27JULY 2013 MID
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incur, starting with the Estadio Nacional
Mané Garrincha.
“It was very important, though it’s
extremely expensive to meet these
specifications, but everyone values it
immensely that they will receive this
certificate of sustainability. Because, not
only are we having a model of energy
saving solutions, but we also have a
management system to make the most of
these projects,” he explains.
To this end, German energy and
infrastructure giant Siemens were brought
in to work on the project, which was
no surprise given its vast expertise and
experience of similar projects in Europe.
“Siemens is supplying the intelligence
systems for the stadium,” says Stefano Fay,
Siemens operations manager. “It is one of
the most modern stadiums in the world.”
“We have a lot of experience in
stadiums, many of the technologies
in German stadiums have Siemens
equipment, and European ones also have
them. So we took this experience and
brought it to Brazil and we built up a team
here for this project.”
“It was done according to the
requirements of FIFA first of all, and
then the owners. It was a design and
construction project. Several of the
solutions were discussed with the
customer and adapted to their needs and
according to the green building council
requirements,” he adds.
The first task was the development of
a comprehensive Building Management
System, which would help tie in all the
stadium’s various systems to one central
operating hub.
“The system is conceived is to gather
the data and give it to operations so that
they can analyse and take decisions on
how to optimise the system. It’s not a
fully automatic, closed loop yet, this is
“oUr bmS monitorS And controLS PowEr, frESh wAtEr And Air conditioninG. it iS fULLY rEAdY for AnY AUtomAtion rEQUirEd in thE fUtUrE”
something that we’re looking at in the
future,” he adds.
“Our BMS monitors and controls
power, fresh water and air conditioning. It
is fully ready for any automation required
in the future.”
Furthermore, one of the other main
scopes that Siemens have been tasked
with are the security and surveillance
tasks for the stadium. With more than 400
cameras and 150 turnstiles, the German
firm will have quite a job on its hands.
“In coordination with partners, we have
a complete IT network for all the systems
that are in the stadium. We also have, with
partners, a complete sound system. The
sound system is also digital and running
on the same IT network,” says Fay.
So what are the differentiators when it
comes to this project?
“First off is to have all of them on IT,
the videos all run on the same high speed
backbone that we supplied. We have
access control using our hardware and
software, and this particular software has
been also developed and integrated with
FIFA,” he explains.
“So the ticketing system is integrated
with the automated systems. So you
can buy a ticket off the internet, and
automatically our system will have your
barcode when you enter the stadium. The
system is already working, it worked in a
match between Brazil and England, and
28 JULY 2013MID
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ON SITE Estádio NacioNal MaNé GarriNcha bigprojectMe.coM
it is ready for the Confederations Cup and
the World Cup,” he says during the tour of
the stadium.
Pablo Bartolomeu, project manager for
Siemens on the Mané Garrincha project,
adds that with the security systems,
access controls and turnstiles all installed,
the BMS that Siemens has developed
specifically for this project means that the
fire detection systems, CCTv and BMS are
all integrated with the software designed
for the project.
“We have all the management of
the electrical power, all the danger
management systems, everything will be
integrated in one software,” he says.
According to Bartolomeu the biggest
challenge was time.
“Because it was a very tight schedule –
the opening was supposed to be in March
– then we postponed it a month. Time was
always the big challenge.”
“Also because it is a big building, it’s
not something you build every day, so it
(the BMS) is a bespoke solution for this
stadium, and therefore I would say the
biggest challenge was time and then the
dimensions of the buildings,” Pablo tells
Big Project ME.
He adds that security is something that
the client takes very seriously, and as a
result, Siemens had to ensure that their
security systems were up to the demands
placed on them.
“We have around 400 cameras, in high
traffic areas and in the dome. We have
HD cameras in the dome for identifying
people, as well as cameras to monitor and
control people,” he explains.
“Furthermore, we have the Tv
screening systems, the access control
systems, composing of the turnstiles,
they’re connected with the CCTv systems,
which allow people to be identified
through the ticketing system.”
Given that the stadium holds more
than 72,000 people when at full capacity,
crowd safety was another major concern,
and as such, the Siemens team had to
install thousands of fire detection in the
building, says Bartolomeu.
“There are 6000 fire detectors all
over the building,” he says. “There’s
construction under the stadium as well
and it needed to be have an accurate fire
detection system.”
“We have more than 6000 points on the
building management system, the control
rooms and the IT backbone and data
centre, and we have distribution all over
the stadium, so that you have IT available
whenever it is necessary.”
“What’s important to say is that
we have all the systems IT based and
talking to one another. We have building
automation talking to access control, and
sending out alarms (if necessary) there. So
we have a fully integrated system with the
same IT network,” he adds. n
“wE hAvE morE thAn 6000 PointS on thE bmS, thE controL roomS And thE it bAcKbonE And dAtA cEntrE, ALL ovEr thE StAdiUm”SEcUritY SYStEmS
All security systems are integrated with the BMS.
stadium it numbers
n 6000 Points on the BMS system
n 6000 fire detectors
n 400 cameras
n 32 Hd cameras
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Hidden inno- vation.
30 JULY 2013MID
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Special RepoRt Brazil 2014 bigprojectMe.com
with less than a year remaining for
the 2014 FIFA World Cup, there
is a definite sense of anxiety over
whether Brazil is truly ready to
host the event.
While organisers and the Brazilian
government remain confident that all
the issues will be ironed out ahead of the
World Cup, there are valuable lessons that
can be learnt from their struggles, which
can be applied to Qatar as it gears up for
its own considerable challenge in 2022.
Keeping that in mind, Big Project ME
spoke to the one man who is best placed
to judge both countries’ preparations in a
fair and balanced manner.
Jan Schoenig is the Siemens program
manager for the 2022 Football World Cup
in Qatar. Prior to his current role, he was
heavily involved in the preparations for
the Brazilian World Cup. Furthermore, he
has extensive experience in developing
stadium technology, having been involved
in global sporting events over the last
eight years.
“It’s a bit early to say, there’s still nine
years to go,” he says. “But all what I see
(in Qatar) is perfect. They have already
established a programme office, they
already have the stadiums partially
assigned to architects and they even have
a vision for transportation, which is going
to be tendered soon.”
“I’m very optimistic that it’ll be totally
different to the way things were done
in both South Africa and Brazil, where
things were done at the very last minute,”
Schoenig says.
The advantage that Qatar has, compared
to Brazil and South Africa, is that the
people in charge of the World Cup have
“it’S A bit EArLY to SAY, thErE’S StiLL ninE YEArS to Go, bUt ALL whAt i SEE (in QAtAr) iS PErfEct”
whaT qaTar CaN lEarNFollowing a visit to Brazil ahead of the 2014 FIFA World Cup, Big Project ME ponders on what lessons Qatar can learn as it gears up for its own challenges in the build up to 2022
31JULY 2013 MID
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Special RepoRt Brazil 2014
taken a long, hard look at what went wrong
during the preparation process in those
two countries, and have resolved not to
allow the same mistakes to happen again.
The government will play a massive
role in developing the stadium and
assorted infrastructure, but in an effort
to mitigate any confusion and hold ups,
the Supreme Committee for Qatar 2022
has appointed Clifford Chance, the
international law firm to be an advisor for
its technical programme.
Amongst its duties, the law firm will
advise on the development of the main
‘iconic stadium’ for the FIFA event, which
will seat more than 85,000 fans.
It is this attitude that gives Schoenig
hope that the Qatar World Cup will be a
completely different experience for him,
compared to the one in Brazil.
“In Brazil, they’re struggling in a lot of
areas because they believe that it could
have been done differently,” he explains.
“We had a conference recently, where
a contractor expressed surprise at all the
FIFA requirements, and I thought ‘It is
publicly available!’ You can download
it, so there shouldn’t be any kinds of
surprise!” Schoenig asserts.
“He was complaining about the
number of parking spaces FIFA requires,
that is well stated in the booklet! This
is what happens when companies that
haven’t done it before (get involved),
they think ‘oh it’s just another building
and we’ll apply it just like we do in
the shopping malls’ and go for it, and
then they’re struggling with all these
‘surprises’,” he points out.
And this is where he says Qatar can
learn its most important lessons for its
World Cup.
“These two countries are very different,
but from the stadium perspective, there
is definitely something (they can share).
Qatar needs to choose partners who have
done it before. FIFA requirements are
specific, the requirements for the World
Cup are high in quality, and the reliability
has to be there,” he warns.
“If you go for first time movers or
companies who are not established in
the country, you undertake a high risk of
failing,” he warns grimly.
Another issue that will be taken
seriously is ensuring that construction
projects coordinate so as to ensure that
there is no blockages in the pipeline.
“This is what programme management
has to do, so that you can really access the
construction sites and they are not locked
due to road-works and major project work
and so on,” he says. “My only concern
is that the coordination of ongoing
construction should be done in such a
way that they don’t block each other, but
apart from timing itself, there shouldn’t be
any problems.” n
“QAtAr nEEdS to chooSE PArtnErS who hAvE donE it bEforE. fifA rEQUirEmEntS ArE SPEcific And thE rELiAbiLitY hAS to bE thErE”
bAd AttitUdEBrazil’s lax attitude has cost it, Schoenig says.
Qatar worLd cup spend
n $115 billion Qatar’s project spend on the 2022 world cup
n $8.2 billion doha metro contract awarded for wc
n $10 billion new airport being built ahead of wc
n $20 billion on roadworks and infrastructure
32 JULY 2013MID
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HEaLTHcarE iN fOCuS BigprOjecTMe.COm
33JULY 2013 MID
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HEaLTHcarE iN fOCuS
in 2011, Deloitte released a report
that surveyed the state of the UAE’s
healthcare sector. It found that rapid
growth was underway in the country,
fuelled by a long-term strategy to become a
preferred destination for domestic patients
and a hub for global medical tourists’.
Furthermore, it predicted that there
would be a considerable change in the way
the UAE approached the healthcare sector,
with more Private Public Partnerships
(PPPs) being encouraged as it strove to
improve both ‘hard and soft infrastructure’.
“In Abu Dhabi, the government’s move
towards PPPs, driven by a need to elevate
the quality of healthcare delivery, started
in 2006, and is based on management
partnerships with international hospitals
such as vamed, Cleveland Clinic, John
Hopkins and Bumrungrad. A number of
MoUs related to healthcare partnerships
have been signed.”
So this process towards developing
healthcare infrastructure and construction
has been in motion for quite some time.
In the two years since the release of the
report, healthcare spending has reached
astronomical levels.
A report released by Frost + Sullivan,
shows that the GCC had spent $46.12
billion on healthcare expenditure in 2011,
while its analysts predict that spending will
hit $133.19 billion by the year 2018.
This is backed up by AECOM’s
Construction Handbook for 2013.
“Regulatory and funding reforms,
together with increasing demand for
healthcare services due to population
and income growth, as well as an
increase in lifestyle diseases, means that
the Middle East healthcare market is
undergoing significant changes and major
development,” says Anthony McCarter,
regional business line leader, Buildings +
Places, AECOM.
“With many governments planning
further expansion of the sector, they
are seeking increased private sector
participation to fill gaps in services
provision and infrastructure.”
Supported by large budget surpluses,
GCC governments are making investments
to support healthcare provision. This will
bring the industry up to international
standards in terms of bed capacity and the
quality of healthcare services, he notes.
“Promoting the industry to private
players is a priority for all GCC
governments, as it is clearly stated in their
strategic and development plans.”
Given the PPP healthcare projects
springing up across the region it should
come as no surprise that the actual
construction of these healthcare project
is a major concern for developers and
clients. These projects no longer serve
as mere places of treatment or healing.
They are meant to be landmarks, icons
“thE GovErnmEnt’S movE towArdS PPP iS drivEn bY A nEEd to ELEvAtE hEALthcArE QUALitY”
With healthcare construction set to be one of the biggest boom sectors for the region, Big Project ME talks to the experts to find out what needs to be done to ensure that our hospitals rank amongst the best
biLL JoLLY
lET’S makE ThiNGS
BETTEr
gcc heaLthcare spend
n $46.2 billion Healthcare expenditure in 2011
n $133.19 billion Expected expenditure in 2018
34 JULY 2013MID
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HEALTHCARE IN FOCUS bigprojectMe.COm
of the UAE’s burgeoning reputation as
healthcare destination.
“Construction costs for iconic/
landmark hospitals are generally higher
than for typical district general hospitals.
Unlike teaching hospitals, where capital
cost increases are driven by medical
equipment, higher costs for iconic
hospitals are due to detailed architectural
design, landscaping or furnishings,”
McCarter explains.
Construction costs increase with the
size of a hospital but there are two key
elements to note, says McCarter
“First, operational efficiency of
equipment and technology does not
depend on hospital size as much as other
requirements (ie. bigger receptions and
waiting areas to accommodate larger
number of patients.)”
“Secondly, capacity utilisation typically
increases as hospital size increases. Up
to a certain size, commonly 500 beds, the
construction cost per bed decreases as the
hospital size increases, due to economies
of scale and optimising the use of support
equipment and facilities,” he remarks.
“Construction costs for larger hospitals
“conStrUction coStS for An iconic hoSPitAL ArE GEnErALLY hiGhEr thAn for A tYPicAL diStrict GEnErAL hoSPitAL”
aL maKtoum accident and emergency hospitaL
This 300 bed, 95,000sqm facility
includes a four-storey inpatient unit, a large
clinical space, an emergency department
and a dedicated support area.
ramboll says this highly integrated design
provides significant flexibility and focus
on patient care and family needs, utilising
the most advanced medical technology,
international design and healthcare
planning solutions available.
The building is planned around a
significant flexibility and focus on central
atrium, which creates a striking patient
care and family needs, utilising visual
element whilst allowing natural the most
advanced medical technology, light to
penetrate the interior.
The space also provides a central
gathering point for patients and visitors.
due to the high volume of occupants and
significant numbers of patients who may
be immobile, hospitals pose a high fire
and safety threat. These risks increase
in units with high-tech infrastructures and
potentially volatile medical stores.
To minimise and mitigate these risks,
the experienced team in the ramboll
fire Engineering department were
commissioned to produce a peer review of
the fire and safety designs for the building,
identifying and assessing non-compliant
and high risk aspects of the design.
The team provided advice and practical
solutions on how to meet international
safety standards and obtain fire authority
approval, while maintaining the integrity of
the architectural design.
lOcaTiON: dubai, UaE
clieNT: dubai Health authority
archiTecT: canadian brand of Perkins
Eastman International
eNgiNeeriNg services: fire & life
safety
AL mAKtoUm A&E hoSPitAL95,000sqm project will house four storey inpa-tient facility
KhALifA mEdicAL citYSKMC is a tertiary care medical centre in Abu Dhabi.
36 JULY 2013MID
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HEALTHCARE IN FOCUS bigprojectMe.COm
“hoSPitALS ArE vErY EnErGY intEnSivE, So wE LooK At how wE cAn controL thE intErnAL EnvironmEnt to SAtiSfY rEGULAtionS”
with more beds tend to increase again as
support facilities need to be larger and
construction premiums associated with
specialist consultants and contractor fees
are added.”
Therefore, Big Project ME decided to
speak to one of the foremost experts in
healthcare construction in the region,
to find out just what it takes to build a
landmark hospital project in the GCC.
Bill Jolly has worked on Central
Sterilisation Services Departments and
supersize decontamination facilities for the
UK’s National Health Services. He has also
worked on and helped design Psychiatric
Intensive Care Units and numerous
theatres and hospital wards.
Furthermore, he was, until recently,
an international member of the ASHRAE
healthcare technical committee. He
currently works as director of MEP and
Sustainability for Ramboll Middle East.
“(When working on a project) I think
the first thing to consider is the stability
of its infrastructure. That’s obviously very
important for a hospital, to ensure that
it’s got its securities in place,” he says. “It
depends on what the hospital is doing.
If the hospital is doing theatres and
operations, then you need to ensure that
the incoming services supplies are stable.”
“We (Ramboll) recently looked at
a project in Pakistan and it was quite
interesting. While we were there, there
were maybe 15 power cuts, and we were
doing the overall master-plan for that
project, which included a hospital.”
“As part of the master-plan, we looked at
the incoming supplies and strategies. We
considered the installation of Combined
Heat and Power (CHP) because we
believe that Pakistan is close to signing an
agreement for gas supplies.”
“So with a secure gas supply coming
into the master plan, it would make more
sense to generate our own electricity on
site,” Jolly explains. “We look at the security
of the supply, that’s a critical factor from a
utility perspective.”
“We identify what it is that’s critical for
the hospital, such that the MEP service
engineers can provide the solutions that
they’re looking for,” he adds.
“So the first thing is the security of
supplies, the second thing is energy
efficiency. Hospitals are very energy
intensive, so we look at how we can control
the internal environment so that we’re
satisfying the regulations to ensure that the
standards are being best achieved from a
cLeveLand cLinic
The 7-star, state-of-the-art, 22-storey
cleveland clinic was designed to
symbolise the future of healthcare in the
Middle East region.
ramboll was commissioned to check
all engineering of the facade systems,
including complex double skin
arrangements, glass fin walls, skylights etc.
as is often the case in a project of this
scale, with a rapid building schedule, the
design remit evolved.
“This raised design and technical questions
that required immediate consideration and
implementation,” says ramboll.
lOcaTiON: abu dhabi, UaE
clieNT: aldar/Mubadala Healthcare
archiTecT: aedas and Hdr
eNgiNeeriNg services: façade
engineering
37JULY 2013 MID
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HEALTHCARE IN FOCUS
King faisaL speciaList hospitaL and research centre, Ksa
“our client desired to introduce sustainable
design into the king faisal Specialist
Hospital & research centre, Jeddah,
kingdom of Saudi arabia,” says ramboll.
The total built up area is approximately
100,000sqm for the hospital and research
centre.
“we provided a sustainability review
during the master planning stage of this
project to help our client achieve LEEd
accreditation. our holistic approach to
design and operation was valued during
the early stage of the project,” says
ramboll.
“we focused on improving the energy and
environmental performance of the design,
which was viewed as the most effective
way of achieving LEEd accreditation.
we also undertook high level energy
modelling as part of the exercise. This
helped with the design, and also ensured
that the architect understood the impact of
his design decisions during further design
stages.”
following the master planning process, the
project is pursuing LEEd rating based on
the recommendations made by ramboll.
lOcaTiON: Jeddah, kingdom of Saudi
arabia
clieNT: king faisal Specialist Hospital
and research centre
eNgiNeeriNg services: Sustainability
services
clean perspective.”
“The third thing is the critical places,
how we control the internal environment,
such as the clean room spaces, or the
theatres, or whatever classification you’re
trying to design to,” he says. “What we do
identify, within the hospital, what elements
of the building are energy intensive. Once
we’ve identified those areas, we look at
strategies about how we can reduce the
energy consumption, yet satisfy the rules
and regulations, the codes and standards
(that need to be met).”
One of the most energy intensive areas
of any hospital is its CSSD or Central
Sterilisation Services Department. These
are areas where the instruments used in
operating theatres are cleaned, sterilised
and packaged for reuse. Tremendous
amounts of water, both heated and
normal, are used to wash the instruments
out thoroughly, and then superheated
steam is used to sterilise them.
Jolly advocates a more sustainable
European model that is currently in
use, where the CSSD is taken out of the
hospital and a centralised ‘Supersized
Decontamination Unit’ is set up to serve a
number of hospitals in close proximity to it.
“What you’re actually doing is taking
the energy consuming components out of
the hospital and putting it in one location.
You can start to reduce the capital costs
because you can have the facility working
24 hours a day, and so you start to reduce
the quantity of equipment that’s required,
you’re placing all the energy in one
location, where you can deal with it in an
energy efficient manner,” he explains.
Hospitals are notorious consumers
of huge amounts of water. Not just in
specialised units such as the CSSD, but
during normal day to day operations as
well. Therefore, sensible consultants are
keen to involve suppliers and contractors
as early as possible when it comes to
designing the water delivery systems.
Rada-Kohler is one such supplier that
deals with healthcare facilities. Russell
Maycock, commercial international sales
and market development manager, tells Big
Project ME that his firm has been making
“wE idEntifY, within thE hoSPitAL, whAt ELEmEntS of thE bUiLdinG ArE EnErGY intEnSitivE”
KinG fAiSAL hoSPitALJeddah project is aiming for LEED accreditation.
38 JULY 2013MID
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HEALTHCARE IN FOCUS bigprojectMe.COm
King saud university, medicaL city extension project
a multi-disciplinary, international team
is working together on this important
healthcare project, says ramboll.
The extension of the king Saud University
Medical city comprises several new
buildings for the university covering an
approximate area of 350,000sqm.
The first stage includes a new national
diabetic center, a new dental college and
an expansion of the medical college.
The medical college extension project
includes teaching facilities, lecture
halls, public spaces, a full scale skills
lab, mosques and a spectacular main
auditorium with audience capacity of
1,400. The national diabetes centre
will be a national institution for diabetes,
containing research and central functions,
as well as treatment for complicated
cases.
The administration of kSU has been
constantly committed to equipping the
school with the state-of-the-art facilities
beneficial to advance dental education.
The extension to the existing dental
college will provide these facilities,
including the very latest technologies.
ramboll has been entrusted with the
building design for this project.
“In order to ensure high class delivery
we have created project teams bringing
together our experts from ramboll
Sweden, denmark, norway, United
kingdom and the Middle East.all
together we have around 80 dedicated
competencies involved. ramboll Group is
the lead consultant bringing together all of
the resources to ensure a smooth design
and construction process.”
lOcaTiON: riyadh, kingdom of Saudi
arabia
clieNT: king Saud University
archiTecT: Samkark architects
eNgiNeeriNg services: Building
services, fire & life safety
inroads into the Middle Eastern market on
the back of the practical savings they’ve
been able to offer in Europe.
“The two key issues in a healthcare
project are thermostatic performance:
that’s what we call ‘safe to use hot water’, so
hospitals will have specific requirements
in terms of accurate thermostatic
performance of the faucets. So they’ll
have particular maximum temperatures
that they’ll want to achieve, depending on
whether it’s for a shower, a bath or hand
washing, or something like that.”
“But it’s also a product which will be able
to cope with, if for example, there’s a failure
in the cold water supply, a thermostatic
product which will close down to prevent
hot water scalding accidents within a
hospital,” he says.
“The other key thing with hospitals is the
prevention of cross infections by HCAIs,
which stand for HealthCare Acquired
Infections, an example of those would
be MRSA. A lot of these infections are
associated with the water supply, and so
hospitals will be looking for water delivery
systems which will help contain how
possible sources of cross infection within a
healthcare facility.”
“A KEY thinG with hoSPitALS iS thE PrEvEntion of croSS infEction bY hEALthcArE AcQUirEd infEctionS”
infEction focUSHospitals have stringent demands to prevent the spread of infections.
39JULY 2013 MID
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new mafraQ hospitaL
High-rise hospital with 749 number of
beds.
ramboll Middle East was awarded the
life safety and fire protection peer review
subconsultancy, by canadian architectural
firm, Burthill.
The task is to provide the life safety and
fire protection strategy guidance for
the construction of their new al Mafraq
Hospital project, a new modern hospital
located in the new abu dhabi central
Business district.
The project is intended to provide health
care and the necessary medical needs of
the people at this community. The hospital
will contain 499 beds, and is considered
for an internal expansion of up to 749
beds depending on the operational
demand and growth of the population at
this community. The new hospital will be
distinguished by its four patient towers built
in a style that resembles to the state-of-the-
art in medical care facilities.
lOcaTiON: new abu dhabi central
Business district
clieNT: Habtoor Leighton Group, in joint
venture with Murray & roberts contractors
Middle East (HLMr)
archiTecT: Burthhill - Stantec
cOMpleTiON: 2011 - 2014
prOjecT value: $626.2 million
eNgiNeeriNg services: fire & life
safety
“One obvious area is a system that can
be operated with a minimum amount of
hand contact. A lot of our digital systems
are completely non hand contact in terms
of you being able to operate them and be
able to turn them on and off without having
to touch it. That’s going to be a key way for
hospital management to control infections,”
Maycock explains further.
Thus, collaboration between contractor,
consultant and supplier is key for a hospital
project to work smoothly. Jolly says that
the process towards that collaboration is
fairly lengthy, with consultants taking care
to ensure that the design first meets the
client’s specifications, and then that the
contractor chosen is able to cope with the
demands set before them.
“When we do designs of hospitals at
the very initial stage, the contractors aren’t
involved. We deal with the main consultant
and the client. We understand the client’s
needs, then we start to work on the design
and work in conjunction with architects,
because we’re just an engineering
consultancy. We’ll develop the design to a
certain level and then we’ll approach the
client about engaging a contractor,” he says,
outlining the process.
“We then go into early engagement
with various contractors whilst the design
work is continuing, or we’ll seek tender
clarifications with the contractors and then
during the interview stages, we’ll start to
engage them from a technical perspective.”
“We look at what are their capabilities for
maintaining the good parts of the design.
What are their capabilities? What’s their
experience? What’s their site set up? How
do they propose putting people on site?
What’s the level of staff you’d put on site?
What’s the qualifications?”
We gauge an overall assessment of
the contractor, both from a technical
perspective and from a financial
perspective. We would then make
recommendations to the client of the
contractor, to move forwards,” Jolly says.
However, Maycock says that as far as
suppliers are concerned, they’d like to
get involved in the specification process
as early as possible. This helps design a
system better and prevent problems.
“Our approach to healthcare, is to get
onto the specification process as early as
possible. That’s really at design stage. Once
the facility is going up, then you’re in a
situation where you’re trying to get people
to change specifications, which is always a
challenge. Once we know a consultant has
been awarded a healthcare facility, we look
to get in at a very early stage and help them
design the specifications for the showering
areas, for the ward basins, for the clinical
basins and the scrub up areas and so on,”
he explains. n
“GEt into thE SPEcificAtion ProcESS AS EArLY AS PoSSibLE, thAt’S At thE dESiGn StAGE”
EArLY EntrYSuppliers need to get involved with hospital projects as early as possible.
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TIME & MonEY CCS BigprOjecTMe.COm
cCS (Construction Computer
Software) has been in operation for
over 30 years in the construction
IT sector and in the Middle
East since 1994. Its success is built on
dedicated development, training and
support infrastructure and providing an
unparalleled service to the challenging
construction industry.
whaT iS CCS aNd iTS CaNdy aNd BuildSmarT prOduCTS all aBOuT?iaN haupTfleisch Candy is our leading
project estimating and control software
package that uniquely combines
its powerful features of analytical
Estimating, critical path Planning,
dynamic Forecasting, Cash Flow
modelling, monthly valuations and
Earned value Management conveniently
into a single user interface.
We have a saying that ‘estimating only
ends at final account’ - whether pricing
variations or pricing the job to complete,
things change and your estimate or
budget has to be adaptable considering
all the variables and unknowns we deal
with on a daily basis.
paT cOOper BuildSmart fits in on
a company and project level and is
the foremost construction enterprise
solution for Procurement, Payroll, Plant
and Accounting. BuildSmart is a web-
based, Integrated Cost Management
System (ICMS) that dynamically and
Helping you make the smartest decisions
Big Project ME sat down with Ian Hauptfleisch, General Manager, and Pat Cooper, Senior Consultant, to discuss what the CCS solution can offer contractors
CONSTruCTiON iT SOluTiONS prOvidEr
UnPArALLELEd SErvicECCS has been in the Middle East since 1994.
41JULY 2013 MID
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TIME & MonEY CCS
seamlessly integrates with Candy
estimating and project control
Candy & BuildSmart together
provide the most powerful tool in
the construction industry today to
provide critical real-time management
information to you to take timely
management actions to control your
project cost and to increase your
margins.
• Candy produces a powerful financial
and engineering model for the project –
What we budget to spend and utilise.
• BuildSmart, with its web based and SQL
database architecture, provide a real time
analysis of what we actually are spending
and utilising.
Both systems use basic resource and
activity costing which then allows real-
time comparison by project Activity and
Cost Code – all in real time.
hOw dOES CCS aNd iTS prOduCTS hElp CONTraCTOrS?ih CCS was developed, from day one,
from the ground up for contractors by
contractors.
The biggest challenge most
contractors face, besides securing work,
is proper, effective and reliable cost
control. In construction you’re dealing
with productive resources like labour
and plant making up a large component
of the project cost as well as numerous
variables and unknowns, that contribute
“SoftwArE doESn’t mAKE PEoPLE worK - PEoPLE mAKE SoftwArE worK”
to a formidable cost control challenge
but this is exactly what our products were
designed for.
Candy and BuildSmart’s pedigree
stems from an extremely challenging
construction environment in South
Africa in the late 1970s and 1980s, which
meant as accurate a measurement
and estimate of the work to be done as
possible and pedantic control of costs
and budgets on site in terms of quantity,
wastage, production and value.
A common misconception is that the
software will do the job for you. CCS,
like any software application, is merely
another tool that has to be used properly
and effectively to give you the best
results. Software doesn’t make people
work – people make software work.
whaT’S ThE BiGGEST ChallENGE iNvOlvEd wiTh CONviNCiNG CliENTS Of ThE SySTEmS’ viaBiliTy?ih People don’t like change. That’s fact
and also just human. However, in most
cases companies are approaching us,
which means they or someone in the
organisation has realised the need for
change and improvement, whether it be
for something they don’t have or aren’t
getting and/or deficiencies in their
existing systems.
Secondly, software, being somewhat
intangible, is often considered a grudge
purchase and price plays a big role.
The real cost of any system is not in
the purchase of the software, but in
the immeasurable losses accumulated
due to the lack of timeous, reliable and
presentable information.
pc It’s an education process, getting
prospective clients to understand that
in order to get complete cost control,
you have to start from a resourced based
analytical estimate, dynamically linked to
procurement, for the whole procurement
to pay process, including costing and
financials, which will provide information
to all levels of the business. n
ccs cLients incLude:
n alec UaE
n el seif kSa
n petroserv Qatar
n kharafi National kuwait
n carillion alawi oman
n Nass contracting Bahrain
n sTfa Turkey
n The arab contractors Egypt
n MiD contracting Jordan
n MaN enterprises Lebanon
rEAL timE comPAriSionBoth systems allow contractors to track their costs in real time.
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CPD modules bigprojectMe.com
Practitioners and academics
have progressively updated
our understanding of what
“procurement” is over the last 30
years to reflect not only the increased
complexity of the construction products,
process, and technology but more
importantly the increased sophistication
of the markets and their customers. This
has created an immense pressure from the
clients and the supply chain to develop
and embrace new approaches to the way
construction projects are procured
The CIB, the International Council
for Research and Innovation in Building
and Construction (www.cibworld.nl)
has defined procurement as the strategy
through which clients achieve and satisfy
their objectives. Procurement can also
be viewed as the framework that defines
the organisational structure and the
roles of the different individuals, groups,
and organisations that would enable the
realisation of the stakeholders’ project
objectives.
It is not surprising that over the last
three decades we saw the increased
popularity of “non-traditional”
procurement methods which reflects
the changes the sector and its economic
environment have experienced. Increased
interest in procurement methods such
as Design and Build, Management
Contracting, and Partnering, Public Private
Partnerships (PPP) have presented clients
and their advisors with opportunities
to improve the value they realise from
their projects. The increased knowledge
of clients gave them the courage to take
advantage of the “flexibility” of such
frameworks and introduce changes
to whatever is the published standard
framework. This has challenged project
managers, consultants, and lawyers to
ensure that such changes do not create
legal problems or complications to the way
projects are organised and managed.
The main question facing clients and
Prof Mohammed Dulaimi, of the British University of Dubai, writes this CPD module about how effective procurement can satisfy a client’s needs and objectives
effective Procurement of construction Projects
45JULY 2013 MID
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cPd mOdulES
their consults/advisors when it comes
to deciding on the procurement strategy
to adopt is to what extent the adopted
procurement strategy would give the
confidence that it would enable the project
stakeholders realise the desired outcomes.
let us examine one of recent incidents
that have attracted worldwide attention.
A number of reputable suppliers and
retailers/supermarkets in the UK and
Europe discovered that their products
do not meet their requirements on very
key and critical standards. Their ‘100%
beef burgers’ were tested to have horse
meat. A senior manager in one of the
most reputable supermarkets in the UK
stated then that they could not guarantee,
then, that any of such products, meet that
basic requirement. In effect the client is
declaring no confidence in the adopted
procurement strategy and the supply
chain it has created. In other words the
different activities of the supply chain are
no longer focused on satisfying the needs
and priorities of the client. Either by design
or incompetence when clients’ priorities
are no longer driving the supply chain then
the commercial interests of the different
organisations in the supply chain takes
control of the project.
The building of a potentially complex
network of consultants, contractors,
specialist contractors, suppliers, and
subcontractors needs to be orchestrated
in order to create cooperative inter-
organisational relationships aimed
at delivering what would satisfy and
even delight the different stakeholders.
Therefore, profiling of the stakeholders’
objectives and priorities and
understanding their business strategies
should form the foundation of effective
project procurement.
The client should ensure the
involvement of all key stakeholders in
setting the objectives that need to be
satisfied by the completed project. In
order to achieve that there needs to be
enough time allowed for the advisors
and consultants to establish a consensus
among the stakeholders as to the trade-
off between any conflicting priorities
and objectives.
If this important issue is not resolved
and the project is allowed to proceed then
all other decisions regarding the project,
including on the appropriate procurement
strategy to adopt, will be flawed and form
the basis for future conflicts.
“thErE nEEdS to bE EnoUGh timE ALLowEd for thE AdviSorS And conSULtAntS to EStAbLiSh A conSEnSUS AmonG thE StAKEhoLdErS.”
maKing a successfuLprocurement strategy
n strong foundation Establish a consensus among the stakeholders as to the trade-off between any conflicting priorities and objectives
n formulate Select an appropriate strategy
n The right one Select the right contractor
brEAKinG GroUndChanging client attitudes have altererd the approach of PMs, lawyers and consultants.
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The advice that the client needs to
decide on the appropriate procurement
strategy to adopt on any particular project
should be based on firm understanding of
the objectives, priorities and sensitivities
of the key stakeholders. In many cases the
advice clients receive tends to be focused
on their cost, time and quality priorities
but missing on a host of other issues that
relate to not only the client but also the
nature of the project, the market, and
economic environment. For example the
client may want to be closely involved
in the development of the design and
construction phases to ensure that the
project would address their most detailed
needs. In this case the consultant may
feel fit to advise the use of the traditional
procurement strategy, Design-Bid-Build
(DBB).
However, this client may lack the
knowledge, skills, or the capacity to
embrace DBB procurement. This client
may be sophisticated enough to adopt DBB
procurement but lacks the resources that
would enable the effective management of
the interfaces that that procurement would
create. This would create huge problems
with serious delays due to the time the
client would take to make a decision or
provide and input.
The next important stage in the
procurement strategy is to decide on the
most suitable contractor. If clients and
their advisors failed to address the issues in
the previous section effectively then they
will have very little chance in satisfying the
requirements of this stage. Many would
argue that choosing the contractor that
is more suitable to delivering a particular
project is so obvious. However, experience
in projects here in the United Arab
Emirates, and probably beyond, that this is
not the case in many projects.
Anecdotal evidence shows that the
main reasons for failure in identifying and
engaging the appropriate contractor are
the organisational structure and the set
process in many client organisations.
The organisational structure in many
clients’ organisations would split the
responsibility for defining the objectives
and priorities of the project from that of
setting the criteria for contractor selection.
On the assumption that the client was
successful in setting the objectives there
is very little effort to explain the same
for the department(s) responsible for
the contractor selection. The process of
selection in many cases is rigid and uses
fixed criteria that would not give the same
priorities that were defined earlier. It is
critical that for in order to have an effective
procurement strategy for any project
there should be a strong and unbreakable
thread of clearly defined needs and
priorities that runs from the point when
the client committed to the project through
the different stages of the project until
completion and commissioning.
Any proposed variation to the project
should only be sanctioned after careful
consideration of its impact on what has
already been committed to. In particular,
projects that require innovation in the
design, process, or technology will be
“in ordEr to hAvE An EffEctivE ProcUrEmEnt StrAtEGY for AnY ProJEct thErE ShoULd bE A StronG And UnbrEAKAbLE thrEAd of dEfinEd nEEdS And PrioritiES.”
movinG SitESChanges to the plan should come only after proper consideration.
47JULY 2013 MID
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48 JULY 2013MID
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CPD modules bigprojectMe.com
vulnerable to pressures to conform to
“this is not how we do things here” mind
sets and long established processes that
would gradually water down the client
set objectives and priorities. For example,
views from the construction industry
suggest that many clients who set bold
environmental sustainability targets as
a key objective only to see this priority
compromised through the long process of
design, tendering, and construction.
It would be expected that having stated
clearly the objectives and priorities during
tendering that should enough to bring
positive results during construction. The
critical role of the client in monitoring,
evaluation, and feedback to the consultant
and contractor can either reinforce the
stated objectives and priorities or distract
and confuse the whole supply chain.
Clients and their advisors need to
effectively communicate their perception
of the contractor’s performance and
capability to reinforce positive behaviours
and give an opportunity to address
gaps in the contractor performance.
The contractor and the set supply chain
will be put under extreme pressure if
their evaluation is based on priorities
and criteria that were overlooked or not
emphasised during selection process. In
contrast, an evaluation and feedback that
is consistent with the selection criteria
would contribute to enhancing the
contractor’s commitment that is critical to
his performance.
All the above demonstrates the
importance of establishing cooperative
relationships across the network of
organisations that have been formed
from the start of the development process
to the completion and commissioning
of the facility to the satisfaction of the
stakeholders. There may be an expectation
that to orchestrate this whole network
to ensure the creation of value and
extracting value from this network is
the responsibility of clients and their
advisors. However, in certain procurement
strategies that role should be that of the
main contractor. In this case the client
should ensure that the contractor is
capable of delivering on this role and has
the incentives that would ensure that it
delivers on the clients’ objectives.
The orchestrator here will engage
the project network, armed with full
knowledge of the client’s priorities
and objectives, and identify the
needed`knowledge and resources that
would be needed to enhance project
performance.
Recent research conducted by Shaikha
Al Shamsi from the British University
in Dubai (MSc in Project Management)
examined the concept of orchestration in
innovation project networks argued the
need for the orchestrating firm to be able
to articulate the vision of the project, ability
to influence if not shape the network, and
effective management of the process.
In conclusion clarity of what the
stakeholders want to achieve should
enable the client and advisors to identify
the procurement strategy and the
processes that would give the confidence
that there outcome would be beneficial to
all parties involved. n
Provide answers below:
Q1 There is one best procurement method
for any one client that needs to be identified
and deployed on every project that client
would commission. what is it?
ans:
Q2 The contractor’s selection criteria should
be based on:
ans:
Q3. The role of the client is very important.
why?
ans:
naME (capitals)
JoB TITLE
coMPanY naME
addrESS
P.o.Box:
MoBILE:
facSIMILE:
EMaIL:
privacy poLicyn Information you supply to cPI may be used
for publication and also to provide you with
information about our products or services
in the form of direct marketing by email,
telephone, fax or post. Information may also
be made available to third parties.
n “This module will contribute 30
minutes(general) towards your cPd
obligations. If successfully completed,
certificates will be distributed two weeks after
the module closes.
n Email [email protected] if you have
any questions about our cPd programme.
n You can also contact us on:
corporate Publishing International
P.o. Box 13700, dubai, UaE
Tel: +971 4 440 9100
fax: +971 4 447 2409
web: cpidubai.com
Questions for moduLe 3: procurement
CONSULTANTS AND ARCHITECTS CUP
CONTACT:
PUBLISHING DIRECTORRaz Islam +971 4 440 9129 [email protected]
COMMERCIAL DIRECTORMichael Stansfield +971 4 440 9128 [email protected]
MARKETING MANAGERCarole McCarthy+971 4 440 9157 [email protected]
GOLF DAYS
Big Project ME will be hosting a Buyer & Sponsor only Golf Day in
October. The aim is for you to meet the consultants and architects on a one
to one basis and network in a relaxed, fun-filled
environment!
24TH OCTOBER, 2013VENUE: EMIRATES GOLF CLUB, DUBAI.
FALDO COURSE
BPME Golf days_October_July_v1.indd 1 7/2/13 1:13 PM
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Special feature PUMPS bigprojectMe.coM
it’s only natural that when a visitor in
Dubai looks around at the high rise
buildings that make up the emirate’s
impressive skyline he focuses on
the architecture and the design of the
buildings. After all, there’s plenty to look
at and it’s the first thing to catch the eye.
But behind the bright lights and
shiny façades, there are arguably more
impressive engineering feats being done
in these buildings, and Big Project ME
decided to take a look at them and find
out how they operate.
One thing no building, or indeed
any habitable structure, could survive
without is water. It is vital to even the most
mundane of tasks in our day to day lives.
It’s vital that everyone has access to it, no
matter where they are.
So when you factor in that there are
buildings in Dubai that reach heights of
400m (or in the case of the Burj Khalifa,
double that), then the engineering feats
behind delivering water to the upper
reaches of these buildings becomes a
seriously impressive feat of engineering
and planning.
“On a high-rise building, we would
have what we call vertical, multi- stage
pumps. They’re pumps (designed) so
that basically, the discharge of one stage,
pump iT upBig Project ME examines how pumping systems are evolving to meet the needs of high rise buildings, while also striving to stay energy efficient and cut down costs
“on A hiGh riSE bUiLdinG, wE woULd hAvE whAt wE cALL vErticAL, mULti-StAGE PUmPS. thEY’rE PUmPS (dESiGnEd) So thAt bASicALLY, thE diSchArGE of onE StAGE, iS thE inLEt of AnothEr StAGE. YoU’vE thErEforE Got A mULtiPLiEr EffEct dUE to thE vErY hiGh PrESSUrE within A SYStEm”
51JULY 2013 MID
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Special feature PUMPS
“if YoU tAKE A StAndArd PUmP thAt oPErAtES At 2,000rPm, thEn whEn thE PUmP KicKS in, it AUtomAticALLY hitS 2,000rPm And it miGht onLY comE onLinE for A fEw SEcondS to ProvidE wAtEr for SomEonE who iS mAYbE SwitchinG A tAP on. thEn whEn thE tAP iS cLoSEd, thE PUmP ShUtS itSELf bAcK off AGAin”
is the inlet of another stage. You’ve
therefore got a multiplier effect due to
the very high pressure within a system,”
explains Philip Hedigan, Sales and
Marketing director for Bin Moosa Daly,
a local, Abu Dhabi based pump supplier
that works with a number of international
pump manufacturers.
“In a typically large multi- storey
building, of 40 or 50 floors, you use
pumps that are located on the ground
floor, probably with a below ground tank
and vertical multi-stage pump units
that would provide enough pressure to
overcome gravity and get up to a storage
roof tank. If you’re looking at a very high
building, then what you do is, maybe
with the top two or three floors, is have a
pressurised system to provide pressure
to the top floor combination units, while
below those floors, you’d operate the
gravity system,” he adds.
Weighing 62.4 pounds per cubic foot,
water is significantly heavier than water.
Therefore, it needs a mass of 0.433 psi to
lift water one foot (62.4lbs/144in in feet).
In other words, one psi lifts water up by
2.31 feet.
While this may be seen as somewhat
irrelevant in a single storey building, when
extrapolated to a high-rise multi- storey
building, it becomes a crucial factor in
designing the entire layout of the water
distribution systems.
High rise design and construction
poses a number of special challenges to
pump system designers. One of the biggest
challenges relating to the design of the
systems is controlling the pressure.
This is where having variable frequency
drives and pressure switches can help a
building maintain a regular flow of water
through the different floors. variable speed
pumps can be used to regulate the flow of
water and reduce the amount of energy
used. Therefore, they can provide large
energy savings for buildings thanks to the
pump only using the power required to
meet the duty required of the system.
“What we recommend to clients is
the variable Frequency Drive,” says
Hedigan, “If you take a standard pump
that operates at 2,000RPM, then when
the pump kicks in, it automatically hits
2,000RPM and it might only come online
for a few seconds to provide water for
someone who is maybe switching a tap
on. Then when the tap is closed, the pump
shuts itself back off again.”
“When you have a variable Frequency
Drive, if a tap opens, the pump will open
up to 300RPM (for example), and then to
700 to 800 RPM if a second tap opens. So
you only have the speed of the motor that
you require,” he explains.
“It’s like having a car and driving it in
top gear all the time, and not bothering
about first or second gear. So when we
have a variable frequency drive, it’s
definitely more energy efficient, uses less
power and adds more life to the motor.
But to actually do that comes at a cost.”
And this is a crucial factor in the
uptake of the system, as Hedigan
hiGh-riSE hiGh PrESSUrETall buildings pose major challenges to pump system designers.
water caLcuLations
n 62.4 lbs weight of water per cubic foot
n 0.433 psi Mass of pressure needed to lift water one foot
n 2.31 ft distance water is lifted by one psi
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SPEcIaL fEaTUrE pumpS BigprOjecTMe.COm
says that he’s noticed that clients and
customers would rather not pay the
upfront capital cost and would instead
prefer to pay the running costs on the
day-to-day operation of a system.
However, he points out that this may
be changing thanks to international
regulations that have made energy
efficient motors a requirement for most
types of pump systems.
“The thing is that everything comes at
a cost, but we look at what we call MEPS,
which are motors that are more efficient
than normal pumps. They’re not required
in the UAE, but in lots of other countries,
they are,” he says, implying that this may
soon filter down into the country’s market
and industry.
He adds that there has been increased
emphasis on pump manufacturers
providing filtration systems with their
systems. Although this isn’t a requirement
yet, he says there has been significant
interest in the technology.
“If we’re asked to, we can also provide a
water filtration unit with activated carbon
and a polishing unit that will clean up the
water and take out some of the fluorides
and taste out of it, and also any suspended
solids in it. You can get into micro-
filtration as well, but typically, if we were
looking at standard villas, they typically
wouldn’t have that,” he explains. n
Indian energy saving firm, “Bijili Bachao!”
explains how a hydro-pneumatic pumping
system works.
whaT is a hyDrO pNeuMaTic Or pressure BOOsTer puMpiNg sysTeM?a hydro-pneumatic pumping system has
a ground level storage tank instead of an
overhead storage tank. Pressure sensors are
installed at various parts of the plumbing
in a building that make sure that there is
a constant pressure of water everywhere.
whenever a sensor senses that the pressure
is low, the pump close to the ground level
storage tank starts and pushes the water up to
the level where it is required. It maintains the
same pressure everywhere.
whaT is a TraDiTiONal graviTy BaseD sTOrage sysTeM?Traditionally most high-rise buildings have a
water storage tank at the top. Pumps installed
at the bottom of the building push the water
to the overhead tank. The pumps are run for
a few hours a day to ensure that the water is
adequate in the overhead tank. If right size
pump is used for a given load the pumps can
run close to the best efficiency point during
the time of operation. The distribution of water
from the overhead tank to the houses happens
though gravity (or the weight of water) and
there is no electricity required for the same.
challeNges wiTh a hyDrO-pNeuMaTic puMpiNg sysTeMat a high level a hydro pneumatic system
looks neat and sophisticated but the problem
is with the efficiency of the system.
In buildings we evaluated, every time anyone
opened a tap for water or used water in the
bathroom, the pumps got switched on.
we observed that it started and stopped
almost every 2 seconds. any pump takes
higher current to start up (6 to 7 times more
than stable operation) and since the pumps
were starting very frequently, the electricity
consumption was very high. Extra energy is
also required to achieve constant pressure
across the building.
The other drawback of such a system is
that it will not work in places where there
are frequent power cuts. from an energy
efficiency perspective, a hydro pneumatic
system is just too expensive to operate.
hydro pneumatic pumping system
54 JULY 2013MID
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SPEcIaL fEaTUrE COaTiNGS BigprOjecTMe.COm
when it comes to preserving the
lifecycle of a building substrate,
one of the simplest and most
cost-effective ways of doing so
is to apply a protective coat to it. Over the
years, there has been many advancements
in coating technology which have brought
numerous benefits to the structures that
they’re applied to.
Not only can they increase and protect
the substrate, but they can also help
reduce emissions, increase efficiency and
help improve indoor air quality.
Furthermore, the technology has
advanced to such an extent that exteriors
and interiors made of different materials
can now be coated in a protective
covering, and in various colours and hues,
to suit the design of a building.
This is especially true of metalwork,
which has long been a particular bugbear
for contractors, who have been unable to
customise them to meet the requirements
set out by their clients.
“Advances in coating technology mean
that metal ceilings can be provided with
anti-bacterial coatings, which are applied
during manufacture,” says Andrew
Jackson, a director at SAS International, a
British manufacturer of interior products.
“Such coatings effectively inhibit the
growth of micro-organisms and control
potential risk when used in conjunction
with routine cleaning procedures.
They are suited to various applications
including hospitals, laboratories and
schools.”
In addition, coatings can also be
used to protect systems and units that
Big Project ME finds out how protective coatings can help preserve the lifecycle of structures, while also providing additional benefits that contribute towards efficiency and sustainability
a prOTECTivE COaT
“SUch coAtinGS inhibit thE Growth of micro-orGAniSmS And controL PotEntiAL riSK whEn USEd in conJUnction with roUtinE cLEAninG ProcEdUrES”
55JULY 2013 MID
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“USinG chromE-bASEd PrimErS iS cArcinoGEnic in nAtUrE And iS cAUSinG hEALth concErnS in EUroPE”
exhibit varying temperatures, such as air
conditioning units.
One such material is HvAC paints,
which works in conjunction with electro-
galvanisation to increase the performance
and life expectancy of air conditioning
units by a considerable distance. The
constant flow and convergence of hot
and cold air causes damage to the base
material of the main metal unit.
Traditionally, prior to applying a prime
coat of HvAC paint to the unit, painters
would apply a zinc epoxy primer to the
unit by either brushing or spraying.
The primer consists of 3% to 4% of zinc
content in the undercoat, which is then
mixed with promoters, resins, solvents
and more.
“When you put a layer of electro-
galvanized zinc on the component, you
are putting on 7 – 20 microns of pure zinc
as an undercoat. Although this is seen as
an extra cost, treating the base material
in this way will enhance the overall life
of the component,” says Rajeev Daswani,
managing director of Marami Metal
Plating, a firm based in Dubai.
The process of electro-galvanising
forms an electrical bond between the
zinc and the metal from the unit being
coated, allowing for better surface
adhesion. Furthermore, there is increased
tensile strength and compared to other
alternatives, it is extremely eco-friendly.
“An alternative to zinc coating is
chrome, which is still being done
today in the region,” says Daswani.
“However, using chrome-based primers
is carcinogenic in nature and is causing
health concerns in Europe. We would
highly recommend that people opt
for zinc epoxies as it is proven to be
significantly effective in corrosion
resistance and safe across all industries
regardless of its use.”
In the long run, Daswani states that
HvAC painted units can significantly
benefit from extremely strong three-fold
protection by first electro-galvanising
the unit, then adding a thin layer of zinc
epoxy primer and then finish with a coat
of HvAC paint.
Another benefit of electro-galvanising
the base metal is that painters can reduce
or even eliminate the amount of zinc
primer that is sprayed or brushed on the
component, reducing costs, whilst still
providing optimal protection.
“Initially, there will be an incremental
cost to maximize protection of the units
with these three steps, however in the long
run, performance increases, inevitable
corrosion is delayed, and the aesthetic
finish is close to perfect,” he adds.
Andrew Jackson points out that this
increase in longevity has additional
benefits for buildings and developers.
“Interior metal ceiling solutions have
a lifespan in excess of 25 years with
only the need for basic maintenance,”
he says. “At the end of their life they
can be recycled into new virgin steel
without any loss of properties and can
count towards accreditation such as
lEED environmental credits. They offer
an inert and inherently hardwearing
surface, making metal ceiling systems
both hygienic and requiring little ongoing
maintenance,” he says.
“Polyester powder coated metal
ceilings are not susceptible to the
hvac paint
n Zinc primer 3% to 4% of zinc content in primers
n 7-20 microns amount of pure zinco in undercoats
n increased lifecycle of units can be gained using Hvac paints
n corrosion protection Hvac paint delays inevitable corrosion
coAtinG ProtEctionCoatings can significantly increase a project’s lifecycle.
56 JULY 2013MID
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paint chipping and accidental damage
normally associated with alternative
ceiling finishes. less wastage and speed of
installation are key benefits for a fit-out.”
“As the ceiling void needs to be
accessed for maintenance of integrated
services metal provides a long-lasting and
durable option for ceiling tiles. Approved
powder coatings on metal mean that the
paint finish can be guaranteed for 30-40
years, and this can count towards credits
such as lEED and Estidama’s Pearl rating
systems,” he explains further.
“If architects and contractors work
closely with manufacturers like SAS
International it is easier to ensure their
design and performance specifications
are met. Providing long-term value of any
product balanced with environmental
credentials and greater design flexibility
to meet occupant comfort demands is
essential.”
Hans Monsebakken, a general
manager at Jotun Powder Coatings,
adds that his firm has been focusing
on the development of powder coating
technology that works on different
substrates. Of particular interest, he says,
is heat reflective powder coatings that are
showing promising results in the lab.
“We have heat reflective powder
coatings that we launched about two
or three years ago. For this region
(the Middle East), it’s clearly the most
beneficial,” he explains.
““Current efforts made by our Research
and Development (R & D) team are
focused on seeing how heat reflection can
help in energy reduction. Surfaces where
our heat reflective paints and coatings
are applied have demonstrated a 5 to 10
degree drop in temperature. The concept
here is lesser heat equals to savings on
cooling energy and electricity cost.””
Monsebakken adds.
He adds that Jotun has been looking
at launching a number of sustainable
and eco-friendly coatings that will help
their clients meet their lEED and other
sustainable requirements.
“Energy efficiency has always been a
significant factor and key consideration in
developing our products. Jotun is looking
at working closely with façade consultants
and industry experts to find out the
percentage of electricity saved when using
our products.”
“Our current range of powder coatings
and paints reflect the new innovations
that we have introduced in today’s
markets. One of our key objectives is to
come up with products that can undergo
the process of curing at low temperatures,
which in turn, allows users to save energy
at the time of application,” Monsebakkan
adds in conclusion. n
jotun reveaLs edge
Jotun has launched a new range of
powder coatings it calls ‘reveal Edge’,
which are specially formulated to ‘bring
distinct visual character, colour and
personality’ to interiors.
The reveal Edge range comprises of 20
vibrant metallic colours under four main
themes, including matt and sparkle effects.
Michele azouri, project manager -
Industrial at Jotun Powder coatings Middle
East, says that the new range taps into a
growing trend amongst regional designers
to ‘inject personality into their home
appliances and products, for display as
forms of art’.
Jotun believes that this category has the
potential to grow with the demand for
new housing and increased relocations
amongst the region’s cities.
“wE’rE trYinG to LAUnch Low tEmPErAtUrE cUrE ProdUctS which hELP YoU SAvE EnErGY At thE timE of APPLicAtion”
Big Project ME, the region’s leading monthly B2B magazine for the construction industry, is proud to announce the GCC 2014 Construction Book
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carol.dsouza]@cpimediagroup.com
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59JULY 2013 MID
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COMMENT HEALTHCARE
in a departure from the predominantly
real estate focus of previous years, the
GCC countries are currently investing
in housing, healthcare and education
for their young and growing populations.
Both Saudi Arabia and Kuwait are
exploring ways of improving and investing
in their social infrastructure.
Healthcare facilities have come
under the spotlight for both countries.
Increasing life expectancy, together
with the Middle East’s high prevalence
of non-communicable diseases such
as cardiovascular disease, diabetes and
obesity, are putting considerable pressure
on existing systems of care. Preventative
and primary care are therefore seen as
priority areas for the future.
In Saudi the Ministry of Health covers
more than 60 per cent of healthcare
expenditures and is encouraging more
private sector involvement by providing
grant assistance through the Ministry of
finance to private healthcare companies.
A number of international healthcare
providers are interested in moving into
the buoyant Saudi market to capitalise on
the growing middle class and to provide
an alternative to Saudi’s going overseas for
‘medical tourism’. In Kuwait the healthcare
sector is undergoing rapid expansion,
with the government currently spending
an additional US$178 million to upgrade
existing hospitals.
Governments in the Middle East are
increasingly turning to the private sector
for support in developing and delivering
large scale projects. There is huge potential
and growing appetite for Public Private
Partnership (PPP), which has to date been
popular in the services and utilities sectors.
Both Kuwait and Saudi are now exploring
ways of mobilising PPP to develop their
social infrastructure.
There are a range of economic,
social and political motivations for
developing PPPs including the sharing
or apportionment of risk, the integration
of specialist skill sets, culminating in
improved efficiency, as well as the
provision of a recognised investment
vehicle conducive to the attraction of
private sector investment.
The Middle East impetus is less funding-
related and more focused on PPP’s key role
in delivering projects more efficiently. PPP
also promotes knowledge transfer to the
local economy and Kuwait in particular
is actively keen on this. The long-term
commitment from international and
local companies is critical to develop PPP
facilities and operate them successfully.
like other countries that have achieved
success with PPP, the Middle East will need
to build its own specific PPP models based
on local requirements. n
Improving HealthcareGovernments in the Middle East are stepping up to the challenge of delivering much needed social infrastructure. Faithful+Gould’s Campbell Gray explains how.
cAmPbELL GrAY
Campbell Gray is responsible for
Faithful+Gould’s operations in the Middle
East region, with 20 years of technical
advisory experience across infrastructure,
energy, hospitality, health, education
and property sectors. He’s currently been
elected a Fellow of the Royal Institution of
Chartered Surveyors (RICS).
Prior to joining the ME business, Campbell
held the position of International PPP
Director, with expertise on all three sides
of the transaction process including; public
sector advisory, consortia and funders.
gcc heaLthcare spend
n $43.9 billion Projected value by 2015
n 11% Projected annual rate of growth
n $25.6 billion Market value in 2010
n 93,992 Projected demand for hospital beds in 2013
60 JULY 2013MID
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TENDERS bigprojectMe.com
toP tEndErSbUdGEt $1,100,000,000
clieNT ministry of transport & communication (iraq)
regiON Kurdistan, iraq
DescripTiON construction of 58-kilometre-long tramway system for Sulaimaniyah
sTaTus new tender
prOjecT NaMe: JEBEL aLI THEME EnTErTaInMEnT dEvELoPMEnT ProJEcT
bUdGEt $2,700,000,000
clieNT meraas development (dubai)
regiON dubai, UAE
DescripTiON development of five different theme parks in Jebel Ali area to promote tourism
sTaTus new tender
prOjecT NaMe: vIcEroY rESorT ProJEcT - PaLM JUMEIraH
bUdGEt $272,000,000
clieNT SKAi holdings Ltd (dubai)
regiON dubai, UAE
DescripTiON construction of viceroy resort com-prising (481) rooms and (221) residences, including (10) restaurants, an 800-square-metre spa, a 350sqm gymnasium, a 106-metre swimming pool and a beach club
sTaTus current Project
prOjecT NaMe: SULaIManIYaH TraMwaY SYSTEM ProJEcT
bUdGEt $200,000,000
clieNT new medical centre Group - nmc (Abu dhabi)
regiON Abu dhabi, UAE
DescripTiONconstruction of new medical centre (nmc) Specialty hospital comprising basement and ground floors, as well as three upper floors, capable of accommodating (250) beds, offering (170) beds, seven operating rooms.
sTaTus current ProjectprOjecT NaMe: BaHraIn - SaUdI araBIa raILwaY LInE
bUdGEt $5,000,000,000
clieNT bahrain Government
regiON bahrain
DescripTiON construction of a 90-kilometre-long railway line linking bahrain and Saudi Arabia
sTaTus new tender
prOjecT NaMe: nMc SPEcIaLTY HoSPITaL ProJEcT - kHaLIfa cITY
62 JULY 2013MID
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uae
DuBai fraMe TOwer prOjecT - ZaBeel park
prOjecT NuMBer nPr026-UTerriTOry dubai, UAEclieNT NaMe dubai municipalityaDDress deiraciTy dubai pOsTal/Zip cODe 67cOuNTry United Arab EmiratesphONe (+971-4) 206 4620 / 324 3666 / 206 3030/800 900fax (+971-4) 221 0530 / 324 7465 / 224 8026eMail [email protected] www.dm.gov.aeDescripTiON construction of dubai frame (Al berwaz) tower, a window-shaped, 150-metre by 105-metre complete glass, transparent structure resembling a huge window frameperiOD 2014 sTaTus new tenderMaiN cONsulTaNT hyder consulting middle East Ltd (dubai)fOuNDaTiONs, eNaBliNg & piliNg cONTracTOr bin Ladin contracting Group LLc (dubai) TeNDer caTegOries Leisure & Entertainment, Prestige buildingsTeNDer prODucTs high-rise towers, museums/Art Galleries
saaDiyaT rOTaNa resOrT prOjecT
prOjecT NuMBer mPP743-UTerriTOry Abu dhabiclieNT NaMe rotana hotels, Suites & resorts (Abu dhabi)aDDress 7th floor, East wing, Abu dhabi mallciTy Abu dhabi pOsTal/Zip cODe 45200cOuNTry United Arab EmiratesphONe (+971 2) 699 4444fax (+971-2) 699 4445eMail [email protected] www.rotana.comDescripTiON construction of 5-star Saadiyat rotana resort comprising (354) rooms and (13) beach villasperiOD 2015 sTaTus new tenderMaiN archiTecT Gazi Awad Architects & Engineers (Abu dhabi)prOjecT MaNager Ec harris international Limited (Abu dhabi)TeNDer caTegOries construction & contracting, hotels, Leisure & EntertainmentTeNDer prODucTs hotel construction, villas construction
sauDi araBia
riyaDh NaTiONal aQuariuM prOjecT - kiNg aBDullah fiNaNcial DisTricT
prOjecT NuMBer mPP2669-SA
TerriTOry Saudi ArabiaclieNT NaMe Arriyadh development Authority (Saudi Arabia)ciTy riyadh 11614 pOsTal/Zip cODe 94501cOuNTry Saudi ArabiaphONe (+966-1) 488 3331fax (+966-1) 482 9331eMail [email protected] www.ada.gov.saDescripTiON construction of riyadh national AquariumclOsiNg DaTe July 13, 2013 sTaTus new tenderDesigN cONsulTaNT cambridge Seven Associates inc. (USA)TeNDer caTegOries construction & contracting, Leisure & EntertainmentTeNDer prODucTs civil works, construction & Addition works
alDara hOspiTal & MeDical ceNTre prOjecT
prOjecT NuMBer nPr025-SATerriTOry Saudi ArabiaclieNT NaMe Aldara medical corporation (Saudi Arabia)ciTy riyadh 11431 pOsTal/Zip cODe 1105cOuNTry Saudi ArabiaphONe (+966-1) 463 1667fax (+966-811) 142 9679eMail [email protected] www.aldarahospital.comDescripTiON construction of six-storey Aldara hospital & medical centre covering a total built-up area of 107,000 square metresBuDgeT $110,000,000 periOD 2015
MIddLE EaST tEndErS prOviDeD By
Tel +9712-6348495web www.MiddleEastTenders.com
email [email protected]
63JULY 2013 MID
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sTaTus current ProjectMaiN cONTracTOr Arabtec construction L.L.c (Saudi Arabia)TeNDer caTegOries construction & contracting, medical & healthcareTeNDer prODucTs construction & Addition works, hospital construction
MeDiNa MeTrO prOjecT
prOjecT NuMBer mPP2757-SATerriTOry Saudi ArabiaclieNT NaMe madinah development Authority (Saudi Arabia)ciTy madinah cOuNTry Saudi ArabiaDescripTiON construction of an urban metro system in medina aimed at easing congestion in the holy city during the pilgrimage seasonBuDgeT $1,000,000,000 sTaTus new tenderDesigN cONsulTaNT Khatib & Alami consolidated Engineering company (Saudi Arabia)DesigN cONsulTaNT 2 istanbul Ulasim (turkey)TeNDer caTegOries Public transportation ProjectsTeNDer prODucTs metro
OMaN
sulTaN QaBOOs MeDical ciTy prOjecT
prOjecT NuMBer biP147-oTTerriTOry omanclieNT NaMe ministry of health (oman)aDDress opposite Khoula hospital, bldg no. 105
ciTy muscat Pc 113 pOsTal/Zip cODe 393cOuNTry omanphONe (+968-24) 602 177fax (+968-24) 602 647weBsiTe www.moh.gov.omDescripTiON construction of Sultan Qaboos medical city comprising more than (2,000) beds and five specialist tertiary hospitalsBuDgeT $1,000,000,000 sTaTus new tender TeNDer caTegOries construction & contracting, medical & healthcareTeNDer prODucTs hospital construction
QaTar
leD lighTiNg sysTeMs facTOry prOjecT
prOjecT NuMBer biP139-QTerriTOry QatarclieNT NaMe Qatar intermediate industries holding company Ltd. (Qatar)
aDDress Q-tel tower, diplomatic Area, west bayciTy doha pOsTal/Zip cODe 23224cOuNTry QatareMail [email protected] www.qatarholding.qaDescripTiON construction of a light-emitting diode (LEd) lighting systems factory.BuDgeT $36,000,000 periOD 2014 sTaTus new tenderTeNDer caTegOries industrial & Special Projects, Power & Alternative EnergyTeNDer prODucTs factories
BahraiN
warehOuse DevelOpMeNT prOjecT - BahraiN iNvesTMeNT wharf
prOjecT NuMBer biP146-bTerriTOry bahrainclieNT NaMe majaal warehouse company (bahrain)aDDress bahrain investment wharf, hidd
ciTy manama cOuNTry bahrainphONe (+973) 1756 7553fax (+973) 1756 7554eMail [email protected] www.majaal.comDescripTiON construction of a warehouse spanning a land area of 252,000 square feet, which will serve as a new distribution centreBuDgeT $45,000,000 periOD 2014 sTaTus current ProjectMaiN cONsulTaNT mohammed Salahuddin consulting Engineering bureau - mScEb (bahrain)DesigN cONsulTaNT mohammed Salahuddin consulting Engineering bureau - mScEb (bahrain)cOsT cONsulTaNT baker wilkins & Smith (bahrain)MaiN cONTracTOr Abdulaal construction Services (AcS) – bahrainTeNDer caTegOries construction & contractingTeNDer prODucTs warehouse construction
64 JULY 2013MID
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DaliaN suMMer real esTaTe fair 2013daLIan, cHInajuly 18 – 22, 2013The largest scale and most influential real estate expo in the North of china that promotes national brand real estate, as well as being a bridge for the overseas real estate establishments to march into china. attending the fair will bring exhibitors considerable economic and social benefit.
4Th MODular cONsTrucTiON aND prefaBricaTiON 2013BrISBanE, QUEEnSLand, aUSTraLIajuly 23 – 24, 2013Modular construction and prefabrication 2013 will explore modular project delivery and how this can be utilised across a range of sectors. if you want to discover and understand the many benefits of modular construction, prefabrication and the risk mitigation strategies deployed to optimise project quality, shorten timelines and minimise
project risk, then this event is for you.
perfOrMaNce excelleNce fOr cONsTrucTiON aND eNgiNeeriNgaTLanTa, GEorGIa, USajuly 24 – 25, 2013join Big Data iQ at the performance excellence for construction & engineering conference where thought-leaders and top performing construction and engineering firms will share key insights and strategies to help you achieve performance excellence in your organizations.
MODular cONsTrucTiON aND prefaBricaTiON asiaSInGaPorEjuly 31 – augusT 1, 2013it is the objective of this event to bring together decision makers and influential personnel from across south east asia and australia in order to directly assess and confront the most daunting industry challenges.
The 15Th chiNa iNTerNaTiONal BuilDiNg aND DecOraTiON fairGUanGzHoU, cHInajuly 8 – 11, 2013The number one trade show for interior decoration and materials in asia, with more than 320,000sqm of exhibition area. There are five sub-shows and nine pavilions, with more than 2,400 exhibitors. approximately 120,000 visitors, from around 50 countries, visit the show annually.
4Th ecO-frieNDly Office/ecO-frieNDly facTOry expOTokYo, JaPanjuly 10 – 12, 2013eco-Office / eco factory expO is a professional exhibition of negotiations energy-saving and power-saving measures. This exhibition is a place of great that you can compare and introduction consultation on the spot all the energy-saving and power-saving measures products and services. in addition, it set up a special three zones, including energy-saving lighting.
BuilDiNg aND hOMe iMprOveMeNT expO 2013MELBoUrnE, vIcTorIa, aUSTraLIajuly 12 – 14, 2013The Build & renovating expo showcases the latest trends, building technologies and innovative products by industry leaders specialising in: bathrooms, kitchens, flooring, lighting, heating/cooling, doors and windows, energy efficiency & solar products, roofing, fencing & gates, building materials, pools & spas, sustainability solutions and more.
InternatIonal
HaPPEnInG THIS MonTH...
BOOK YOUR STAND TODAYTo enquire about exhibiting email Patrick Gedeon on [email protected] or call +971 (0)4 445 3639
www.thebig5.ae/bp9
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00509_Big5_Dubai_2013_Big_Project_ME_Magazine_224x280mm.ai 1 6/19/13 11:53 AM
66 JULY 2013MID
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GAvin dAvidS
HAvING SPENT A week in Brazil last
month, touring the Mané Garrincha
Stadium and other assorted projects
currently underway in Sao Paulo, Brasilia
and Rio de Janeiro, it’s with some interest
that I’ve been viewing the demonstrations
that have broken out across the South
American country.
The concerns that have been put
forward by the Brazilian people are very
real and hold the government and leaders
of the country to an uncomfortable truth.
Just what will be the long term benefit
of the World Cup and Olympics to the
country and its people?
While FIFA and the IOC has often sold
its premier event as a force for good, the
reality is that host nations often end up
massively in debt and forced to tighten
their belts economically. According to
data collected by the BBC, South Africa’s
World Cup saw FIFA rake in revenue of
$3.2 billion on a budget of $1.23 billion.
Meanwhile, South Africa’s budget for
the event was a mammoth $5.3 billion,
or 1.72% of GDP....on one month-long
event. This included building and
redeveloping stadiums, creating new
transport infrastructures and upgrading
the country’s security systems.
This is what Brazil’s people are
protesting about. While these sporting
events are massive prestige building
exercises, there needs to be tangible long
term benefits from them. Otherwise, the
money could be better spent on education,
healthcare and other social benefits.
This is what Qatar must realise as it
continues to build for the 2022 World Cup.
The need for transport infrastructure is
vital in the Gulf state and the growth of its
planned public transport network must
continue on past the World Cup.
Right now, a lot of what I’m hearing
from Qatar seems to be short term
thinking. ‘Get everything sorted out for
the World Cup and worry about the rest
later,’ is the general attitude and that is
deeply worrying for the future.
Yes, Qatar deserves to hold the event
and it should be given every opportunity
to prove that it can, and I’m confident
that it will. But equally importantly, the
country needs to ensure that its people
benefit from the work that’s gone into the
building for the World Cup.
This is why Brazil matters to Qatar. We
need to look at what is happening there as
a wakeup call. Sometimes, there’s more to
life than football. n
Gavin Davids says that the protests going on in Brazil are a wakeup call to Qatar about its own priorities when it comes to hosting the 2022 World Cup
Why Brazil Matters
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