Engineering & Construction in QatarRonan Clifford

Senior Highways Design Manager

Atkins

Contents

Introduction� Experience in Qatar

� Company Background

Overview� Relevant Development Programmes

� Key Clients and Agencies

� Current Infrastructure Commitments

� Future Anticipated Spend

Contents

Business in Qatar� Understanding the Difference

� Preparation is Key

� Consider Risks as well as Opportunities

What will set Irish Businesses apart?

Irish in Qatar

More Information

Introduction

My Background� Chartered Engineer with Engineers Ireland

� Atkins Ireland for 3 years before move to Qatar

� 2 years in Qatar

� Project Manager on number of different schemes for

range of clients

� Expecting to be busy for next 10 years +

Atkins in Qatar

• Office in Doha for over 10 years

• January 2011 – 60 staff

• January 2013 – 450 staff

• Infrastructure, Rail, Buildings, Project

Management

• Consultancy of the Year 2012

Local Roads and Drainage

• General Engineering Consultancy Services

Contract 2

• Responsible for local roads and drainage for

Doha West – 7,320 Ha

• Estimated construction costs QAR20Bn (30

Projects)

• All 5 areas estimated QAR100Bn (200 Projects)

Doha West Extents

Central Planning Office

• Established by Ministry of Municipality and Urban Planning (MMUP)

• Focus is to deliver 2030 National Vision for Qatar

• Working with Government Agencies and developers to integrate and plan sustainable world class development

• Keep Doha Moving

Why Qatar

Why Qatar

• Vision for Qatar will see an unprecedented

programme of investment

• World Cup 2022 a significant milestone

• Qatar is looking beyond 2022 to a longer term vision

for the country

Development Programmes

• Qatar National Development Strategy 2011-2016

(www.qsdp.gov.qa)

• Expressway Programme 2017

• World Cup Programme 2022

• Qatar National Vision 2030

Key Agencies

• Ashghal (PWA) – Public Works Authority

• MMUP – Ministry of Municipality and Urban Planning

• PEO – Private Engineering Office

• Qatar Rail – Railway Procurement Agency

• Qatari Diar – Development Agency

• Kahramaa – State Water and Electricity Company

Key Agencies

• Qatar Foundation – Foundation for Education,

Science and Community Development

• Hamad Medical Corporation

• Qatar Petroleum – National Oil and Gas Company

• Qatar Ports Management Co

• Qatar 2022 Supreme Committee

• Qatar Tourism

Current Commitments

Infrastructure $80bn

Oil and Gas $75bn

Real Estate $55bn

Chem/Power/Water $11bn

Other (Schools, mosques) $29bn

Total $250bn

Source: Zawya

Breakdown of Infra

LR&D $8bn

Expressways $20bn

Rail and Research $35bn

Airport $12bn

Ports $5bn

Total $80bn

Source: Zawya

Future Opportunities

• Budgets for 2013-14, 14-15 and 15-16 in April

• Official Estimates for Infra at $55bn revised to $150bn with establishment of Mega Infrastructure Investment Company (Source The Peninsula)

• 30 road projects including 240 intersections and interchanges to be completed by 2017

• 85,000 hotel rooms ($65BN) required by 2022

Doha Expressway Programme

Future Opportunities

• Qatar Bahrain Causeway

• Doha Bay Crossing

• 700km of track for metro LRT and long distance

freight and passenger rail

• Qatar Rail 20 year estimate $38bn spend on 200

projects (8m tonnes of steel)

• 500 infrastructure projects in the pipeline

Doha Bay Crossing

Future Opportunities

• Second Terminal at Hamad International Airport for 2022

• Airport City 30-year masterplan 10km2

• Very well placed in terms of lower break even oil prices to

absorb significant falls without impacting economy but

prolonged Euro Crisis may have impact on

liquidity...however, time may restrict all the above

programmes

What Qatar Wants

• ASHGHAL: QATAR DESERVES THE BEST

• World Class delivery – Right first time

• Heavy emphasis on Health & Safety, Quality

• Innovation – BIM, Sustainability

• Relevant Experience

Business in Qatar

Understand the Difference

• It is a different way of thinking

• Influenced by religion and culture

Significant Pace of Change in recent Years

• Trust and commitment are critical

Be prepared to drink a lot of tea

Show commitment – must spend time on the ground

Business in Qatar

• Most decision makers are locals – you must adapt to

them, not the other way around

• Contract terms reflect chief concerns

• Understand the Decision Making Process

• Sponsor/Business Partners

Tendering

• Open Tender

• Prequalification

• Framework

• Design and Build

Tendering

• Generic Responses to be avoided

• High Quality Conforming CVs essential

� Chartership becoming increasingly important

• Make it easy to score you fairly

• Post Tender Presentations and Negotiations a norm

Tendering

• Tender Bond is a normal requirement

• Insurance Requirements are high

• Company registration in Qatar, or Declaration to

Commit

• Experience essential – world class required, gulf or

Qatar experience usually sought

Challenging Environment

• Contracts based on standard government forms

which reflect local issues

• Payment

• Approvals - Many stakeholders

• Shari’ah law – no interest on late payments

Project Challenges

• Risk of Market overheating – inflation expected

• Material supply

• Logistical challenges for keeping the country

moving

• Contract conditions including local terms

• Challenge getting staff visas and right sort

• Know the market

Indicative Material Requirements

Project Challenges

• Variations

• Environment

• Multiple interfaces

• Stakeholders

• Changing Specifications

• Be prepared to be flexible....

Ceremonial Road Start October 2011

Ceremonial Road Mid October 2011

Ceremonial Road November 2011

Ceremonial Road – Original Vision

What will set Irish Businesses apart?

• Adaptability – used to a range of contract forms and

types

• Engrained knowledge of Health and Safety, TM and

Quality Assurance

• Specialist works

• Innovation and leadership

Irish presence in Qatar

• Expanding Irish Community (1000+ and rising)

• Presence across a range of industries

• Qatar Irish Society

� www.qataririshsociety.com

• Irish Qatari Business Council

� www.iqbc.com

Upcoming Conferences

Recommended Reading & References

www.Gulfbusiness.com – Qatar Finds Vast Building

Plans Need More Than Money

Links Group – How easy is it to do business in the Gulf

www.Constructionweekly.com

www.zawya.com

Conclusion

Significant Opportunities across range of Programmes

Qatar Deserves the Best

Market Challenges and Risk

Business is done differently in Qatar

Needs careful and patient preparation

FinallyL

To end on the words of one of our great Irish Writers:

FAIL TO PREPARE, PREPARE TO FAIL

Roy Keane, Saipan, 2002

THANK YOU - SHUKRAN