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TourismDevelopment &Investment Company (TDIC)Employment Practices Policy (EPP)Compliance Monitoring Report

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PwC 5th Monitoring ReportDecember 2017

4 Projectscovered

2012

4 Contractors reviewed

8 Subcontractors reviewed

1,341 Workers interviewed

9% of average monthly worker

population



565 Workers interviewed


population





population



880 Workers interviewed


population


15 Different Contractors


45 Different Subcontractors


39% and 45% of the average

monthly worker population in

2016 and 2017 respectively


2 Projectscovered

2013

5 Projectscovered

2014

6 Projectscovered

2015

6 Projectscovered

15 Different Projects

2016 & 2017 Overall 2012 - 2017

Contents

Executive SummaryContextScope of the Monitoring ProgrammeObservations from the Monitoring ProgrammeThe Way Forward

Detailed Findings

AppendicesAbout TDIC and Saadiyat IslandThe Monitoring ProgrammeDetails of Monitoring Programme VisitsGlossary of Terms

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PwC Independent Monitoring Programme

Executive Summary

Context

Celebrating its 46th National Day in December 2017, the UAE remains a young country undergoing significant development and economic growth which continues to provide job opportunities for both local Emiratis and workers from other countries.

Abu Dhabi is the capital and the largest of the seven United Arab Emirates (“UAE”) and is one of the first countries in the Middle East region to focus on Human Rights issues and encourage public and private sector businesses to adopt and apply local and international workers’ welfare laws, standards and leading practices.

Established by the Abu Dhabi Government in 2006, the Tourism Development & Investment Company (“TDIC” or the “Company”) is a primary developer and investor in major tourism, cultural and residential destinations in Abu Dhabi.

TDIC is responsible for some of Abu Dhabi’s iconic projects. One of its largest projects involves the development of specific sites on Saadiyat Island which include cultural institutions such as the delivered Louvre Abu Dhabi and the planned Zayed National and Guggenheim Abu Dhabi museums.

Workers’ welfare in the UAE

In the context of the Middle East region, the UAE has been progressive in addressing worker welfare issues. The UAE and its respective Emirate Governments have taken a number of steps to address workers’ welfare:

TDIC Employment Practices Policy

In May 2009, the TDIC decided to take a leadership position in the region on human rights and worker’s welfare. As a result, TDIC established the Employment Practices Policy (“EPP”), setting out the standards which TDIC requires its Contractors to adhere to regarding workers’ welfare on Saadiyat. The EPP is based on the UAE Labour Law and, in certain areas, accepted international labour practices.

TDIC has subsequently continued its focus on worker welfare issues, through ongoing implementation and improvement of the EPP. The EPP has evolved from being a policy which Contractors and Subcontractors on Saadiyat are required to comply with, to becoming embedded into the day-to-day (internal) processes and procedures of TDIC operations.

Developments to the EPP have included the publishing of an enhanced version of the policy in August 2015, development of a procedures manual to complement the policy, investment in a semi-automated EPP reporting tool and the introduction of an operational framework to better connect the various stakeholders responsible for EPP implementation. In 2017, oversight and responsibility for EPP and its implementation moved from the TDIC Internal Audit Function directly to the Chief Executive.

PwC EPP Independent Monitoring Programme

In 2011, TDIC appointed PwC to provide independent monitoring of TDIC and its Contractors’ compliance with the EPP. PwC was subsequently reappointed as EPP monitor on an annual basis. This has assisted the consistency and continuity of the monitoring process.

Over the past six years of monitoring, PwC has interviewed over 6,250 workers as well as conducting reviews of recruitment and employment processes and project site and accommodation inspections. PwC has submitted 68 Contractor and Subcontractor monitoring reports to TDIC over this period.

Following the publication of our fourth Independent Monitoring report in January 2016 (covering the period from January to September 2015), PwC continued its monitoring of TDIC and its Contractors’ and Subcontractors’ compliance with the TDIC EPP during 2016.

In December 2016, TDIC decided to delay the publication of the fifth Independent Monitoring Report until December 2017 and requested PwC to provide one report covering two years to reflect on worker welfare conditions when a full phase of construction was complete. In the interim, the frequency of monitoring of workers welfare conditions was increased from quarterly to monthly, and the sample size of workers monitored was increased in comparison to previous years, to ensure standards were maintained.

The results of PwC’s monitoring work carried out between October 2015 and September 2017 are summarised in this combined Monitoring Report.

All these developments in the UAE have been carried out against the backdrop of increased focus and scrutiny of workers’ welfare across the Middle East region.

TDIC’s development activities on Saadiyat Island

Saadiyat Island (“Saadiyat” or “the Island”), part of Abu Dhabi, is a natural island occupying 27 square kilometres. It is planned that Saadiyat will eventually be home to an estimated 145,000 residents along with leisure and tourism facilities, as well as civic and cultural amenities.

TDIC commenced its planning for development activities on the Island in 2006 with construction work starting in the same year. In the period between 2010 and 2012, TDIC achieved its first milestone of delivering the Saadiyat Beach Golf Club, Manarat Al Saadiyat, Saadiyat Beach Villas, Saadiyat Beach Residences, St. Regis Saadiyat Island Resort, UAE Pavilion and their related infrastructure projects.

TDIC’s second major milestone on Saadiyat Island was achieved on 8 November 2017 when the Louvre Abu Dhabi museum was opened. The construction of the museum commenced in January 2013 and involved one Contractor, one Project Management Company, more than 100 Subcontractors and over 8,000 workers.

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The UAE has signed up to nine (9) International Labor Organization (“ILO”) Conventions to protect workers’ rights – including, in 2006, introduction of an anti-human trafficking law.

In June 2014, the UAE was elected as a member of the ILO to represent the 55 countries in the Asia and Pacific region, and appointed onto the ILO Board of Directors.

In 2009, the UAE Ministry of Human Resource & Emiratisation implemented a ‘Wage Protection System’ through which the Ministry, in cooperation with the UAE Central Bank, is able to monitor the payment of wages to workers in the private sector. In the event of an employer’s failure to pay salaries, workers are additionally protected through employer bank guarantees, which the Ministry can draw upon in the event of default.

In October 2015, the Government of Dubai launched the Taqdeer Award which is the world’s first points-based award programme for promoting worker welfare. The award rates companies based on their employment practices.

In mid-2016, the UAE released its first national annual ‘Worker Welfare Report’ – prepared by the Ministry of Human Resources & Emiratisation. This is the first report of its kind in the Middle East region.

In October 2014, the Government of Abu Dhabi issued a memo to all local government entities mandating all of their Contractors and Subcontractors to have appropriate worker health insurance and visas in place, provide appropriate worker accommodation facilities, be in compliance with the UAE Wage Protection System and demonstrate adherence to the UAE Federal Labour Law.

In 2015, and as part of its continuing efforts to ensure the stability of the labour market and protection of workers, three (3) UAE Ministerial Decrees (764, 765 and 766) were issued. These were designed to improve labour relations and embedded more consistent practices to protect workers in the UAE. These reforms came into force from 1 January 2016.

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Figure: Louvre Abu Dhabi Project (source: TDIC)


Scope of the October 2015 - September 2017 Monitoring Programme

Our monitoring work was consistent with the work undertaken in our previous monitoring periods, including:

• Validation of TDIC’s responses to findings raised in our 2015 EPP Annual Monitoring Report;

• An assessment of the governance, policies and procedures within TDIC that enable EPP implementation;

• An independent appraisal of the extent of EPP implementation by Contractors and Subcontractors working on the active construction projects on Saadiyat;

• Periodic inspections of the Saadiyat Accommodation Village (“SAV”) to assess the workers’ living conditions;

• Continuation of ‘Worker Satisfaction’ interviews to assess the workers’ overall satisfaction levels related to the accommodation, facilities and overall living experience at SAV; and

• Submission of Quarterly (2016) and Monthly (2017) Monitoring reports to the TDIC Internal Audit, Chief Executive Officer (“CEO”), Board Audit Committee (“BAC”), and Chairman.

As noted above, at the request of the CEO and Chairman of TDIC, PwC shifted from conducting quarterly monitoring in 2016 to monthly monitoring during 2017 reflecting the focus on completion of the Louvre Abu Dhabi project.

The 2016 & 2017 Monitoring Programme covered six (6) projects, out of a total nine (9) projects under construction, selected based on the contract value, stage of completion and the number of workers involved, the construction activities involved and level of associated risk to worker welfare. The three (3) projects not covered by the monitoring were not selected due to the lower risk profile and lower number of workers involved. The monitoring programme involved 24 reviews carried out over the stated period. During Q3 of 2016, no monitoring visits were conducted, however, PwC did review and substantiate the EPP related performance data provided by TDIC for this period.

Between June 2016 and September 2017, PwC also conducted three (3) reviews which assessed TDIC’s own compliance with the EPP, as well as specific monitoring work in relation to the workers accommodation at the SAV.

In conducting the Monitoring Programme, PwC was able to draw on over 30 years’ experience in the area of ‘Social Compliance Monitoring’ and more widely in supporting major public and private sector organisations on corporate responsibility and sustainable development projects.

The PwC Monitoring Team included individuals who were part of earlier monitoring programs, including specialists drawn from PwC’s global network of firms with extensive experience in advising and implementing compliance monitoring programmes. Monitors were selected on the basis of their knowledge, experience, language skills, and cultural background and received specific induction training prior to commencing the monitoring work.

Some of the specific monitoring activities completed in 2016 and 2017 included:

• Interviews with TDIC’s Employment Relations Manager (“ERM”) and other staff members;

• A review of relevant documentation, including the EPP related documents required to be maintained by the ERM and the ERMs approval of the Employment Relations Practitioners (“ERPs”) on each of the projects;

• A review of workshops conducted for new Contractors and Subcontractors to familiarise them with the EPP;

• Monitoring of recruitment agencies being used by TDIC’s Contractors and Subcontractors;

• A review of internal monitoring conducted by TDIC on Contractors and Subcontractors;

• A review of the actions agreed in the Employment Relations Group (“ERG”) meetings and monitoring Work Place Group (“WPG”) meetings;

• A review of enforcement letters sent to Contractors and the TDIC implementation plan with respect to remediation of observations reported in 2015;

• Formal and informal interviews with workers at construction sites and at the SAV; and

• Visits to the SAV to observe the workers’ living conditions and review compliance with EPP requirements and standards mandated by the UAE Labour Law and Cabinet Decision No. 13 of 2009 regarding labour accommodation. This also included interviews with workers to understand their overall satisfaction related to the accommodation, facilities and experience of living at the SAV.

The 2016 & 2017 Monitoring Programme again included a focus on the Health & Safety (“H&S”) issues which were also covered as part of the earlier Monitoring Programmes, in particular:

• The implementation and maintenance of H&S standards on TDIC construction sites by Contractors and Subcontractors, TDIC’s monitoring of those standards, and the overall framework for H&S management within TDIC;

• The H&S management framework at the SAV; and

• Accident, incident and injury reporting procedures within TDIC.

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Summary of worker interviews conducted

PwC interviewed 2,420 workers during the 2016 & 2017 Monitoring Programme representing 39% and 45% of the average monthly worker population on Saadiyat for the period from October 2015 to December 2016 and from January 2017 to September 2017 respectively. By comparison, the monthly average number of workers covered on Saadiyat in earlier years was as follows:

The higher percentage of workers interviewed during the most recent monitoring period reflected a decline in the total number of workers on Saadiyat, combined with TDIC’s request to maintain the absolute number of workers interviewed, reflecting a continued desire by TDIC to prioritise worker welfare monitoring as part of EPP implementation.

Based on the observations arising from the 2015 EPP Monitoring Programme, where the majority of concerns noted related to the compliance of the Subcontractors with the EPP, the last two years’ monitoring programme also sought to increase the sample coverage of Subcontractors and the workers employed by Subcontractors, with 1,269 of the 2,420 workers interviewed being employed by Subcontractors.

It should be noted that none of the workers interviewed are either recruited or employed by TDIC as this responsibility lies with the Contractors and Subcontractors. Workers are recruited through recruitment agents, often in the workers’ country of origin, or through manpower supply companies, who provide workers to the Contractors/ Subcontractors on a temporary basis. Some workers are recruited directly to work on TDIC projects whilst others have previously been recruited and worked on other projects before being deployed on a TDIC project.

The workers we interviewed during the course of the 2016 – 2017 monitoring programme originated from the following countries:

The age range of the 2,420 workers was distributed as follows:

India:43%

Pakistan:25%

Bangladesh:23%

Afghanistan:4%

Nepal:3%

Philippines:1%

Others*:1%

*Other nationalities include Egypt, Nigeria, Uganda, Cameroon, Ethiopia, Ghana, Sri Lanka, Sudan and Yemen.

Age 21-30

Age 31-40

Age 41-50

Age 51-60

49%

38%

13%

<0.5%

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*Percentage of average monthly worker population

2016 & 2017 Number of Workers

Interviewd:2,420

39% & 45%*

2012

1,3419%*

Number ofWorkers

interviewed:

2014Number of Workers

Interviewd:1,05014%*

2015Number of Workers

Interviewd:880

16%*

2013Number of

Workers Interviewd:565

19%*

Observations from the October 2015 – September 2017 Monitoring Programme

Our previous four (4) Annual Reports provided detailed findings of the respective EPP Monitoring Programmes along with TDIC’s responses.[1]

Throughout our monitoring work, TDIC and most of the Contractors and Subcontractors were supportive of the EPP and its objectives and facilitated the delivery of the Monitoring Programme. Where necessary, TDIC assisted PwC to ensure prompt access to the Contractors and Subcontractors.

Overall, through the Monitoring Programme, we have again been able to obtain detailed, specific insights and information on EPP implementation and enforcement issues. This in turn has increased the number of positive interventions made by TDIC, for example, in detecting and rectifying non-compliant wage deductions or inaccurate wage payments or non-compliant contributions to savings schemes (these issues were found to affect 10% of the 552 workers whose payroll documentation was sampled mainly during the 2016 monitoring reviews).

The ability to detect and rectify often complex but significant non-compliance situations was an outcome of the cumulative knowledge and experience from our previous monitoring work, the increased focus on EPP implementation and enforcement by TDIC and the subsequent improved quality and availability of documentary evidence within TDIC and its Contractors and Subcontractors relating to EPP implementation.

Overall, the 2016 & 2017 Monitoring results show positive compliance results in a number of areas (such as workers having valid visas and ID cards, workers in possession of medical insurance cards, and workers receiving wages on a timely basis). There were some areas of EPP implementation which continued to require TDIC’s active enforcement, particularly in relation to Subcontractors, including instances of withholding of workers’ passports and inappropriate deductions from salaries (as noted above).

We have also noted no change in comparison with previous years in relation to payment of recruitment fees and relocation costs, where 78% of the workers interviewed stated that they had paid recruitment and relocation fees in cash to recruitment agents in their home countries. As noted in our previous reports, rectification of this issue is complex and lies beyond TDIC’s capacity to control. In particular, none of the workers who stated having paid recruitment and relocation fees were able to provide any documentary evidence of these payments which would have supported some follow up action.

During the course of the Monitoring Programme there were three (3) occasions, in October 2015, December 2016 and September 2017, where significant EPP non-compliances were identified. On each occasion, TDIC was informed and took immediate action to respond to the reported non-compliances. These non-compliances all related to Contractors and Subcontractors who were new to the EPP process. Specifically:

• During our October 2015 monitoring work, a main Contractor responsible for a small infrastructure project was found to be non-compliant with the EPP requirements, including withholding workers’ passports, workers not residing at Saadiyat Accommodation Village and salaries not being paid on time. The same Contractor was given a one (1) week notice by TDIC to rectify the breaches which affected 67 workers in total. We were not able to verify if corrective actions were taken as Contractor was not on site during subsequent follow-up reviews due to finalization of the project.

• During our December 2016 monitoring period, 17 Subcontractors were requested to attend a TDIC roundtable discussion to address non-compliances in a number of areas including workers not being located in the Saadiyat Accommodation Village, retention of passports by Subcontractors and inappropriate deduction of wages for savings schemes. Following this session, TDIC requested PwC to conduct daily monitoring follow-ups with these Subcontractors, as a result we observed 100% rectification of the non-compliances. In aggregate these Subcontractors were employing 1,914 workers, and as a result of the rectification action, 616 workers were relocated to the Saadiyat Accommodation Village, 414 workers were reimbursed all sums deducted from their salaries under the saving scheme and passports returned to 343 workers.

• In September 2017, noting several complaints raised by workers on living conditions at the Saadiyat Accommodation Village, a PwC inspection indicated inadequate living conditions in one (1) accommodation Cluster. Conditions noted included excessive humidity and damage to ceilings, hallways and some bedrooms particularly as a result of excessive condensation. TDIC’s response resulted in approximately 1,400 workers being immediately relocated within the SAV facility and the SAV Operator required to submit a rectification plan to TDIC which is currently in progress.

In the context of our monitoring scope, we have noted that TDIC’s implementation of the EPP has maintained the prior incremental achievements and improvements on some key worker welfare areas and continued to focus on the rectification of EPP non-compliances. We have, however, noted that there is a need for ongoing commitment from TDIC to continue to improve EPP controls and implementation in a number of areas, including accuracy of payment of wages and attention on maintaining appropriate living conditions at the SAV.

We have provided below a summary of the overall compliance against each of the key EPP areas reviewed during the October 2015 – September 2017 monitoring period.

[1] http://www.tdic.ae/TDIC/ourapproach/Pages/worker.aspx

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In response to this finding, TDIC has taken action through requesting the Contractors to provide the workers with copies of their offer letters and has committed to take further action to address this issue through additional and targeted internal monitoring by the TDIC EPP team.

203 out of the 2,420 (8%) workers confirmed they had not signed the Site Assignment Agreement (“SAA”) and 139 workers, stated they signed the SAA after commencing work on a TDIC project. Following TDIC’s intervention, we confirmed that all 203 workers have subsequently signed the SAA.

Contractors and Subcontractors have provided induction sessions for workers before they were assigned to a site, in addition to putting up signs regarding the SAA on the notice boards around SAV. Despite these efforts 863 (36%) workers indicated signing the SAA without fully comprehending the content. TDIC in collaboration with Contractors and Subcontractors has continued to try to promote comprehension of the SAA which sets out the workers’ rights whilst working on Saadiyat.

5. Payment of Wages

• During our review we noted inaccurate payments and incorrect deductions from wages for 53 out of 552 (10%) workers whose payroll documentation were sampled. These workers were employed by four (4) Contractors and six (6) Subcontractors and deducted amounts were up to 10% of their monthly salary. Upon reporting this to TDIC, this issue was rectified and confirmed via our subsequent monitoring work.

• During our review of one (1) Subcontractor during Q4 2016, 13 out of the 30 (43%) workers interviewed stated that they were paid in cash and were not in possession of their bank ATM cards.

The same 13 workers also stated that although they did receive their salaries on time, they were not provided with monthly payslips detailing the number of hours worked and the total amount paid for that specific month. Following our reporting of this finding, the Contractor and Subcontractor investigated further but there was insignificant evidence to take further action. Further monitoring work with the same Contractor indicated that all workers subsequently received payslips and had their bank ATM cards with them.

• During our review in December 2016, we noted that one (1) Subcontractor, which employed 441 workers, had put in place a saving scheme, deducting AED 50 (USD 13) from all of its workers each month. We noted that this ‘saving scheme’ had not been approved by the relevant Authorities as required by the UAE Labour Law. On reporting this issue to TDIC, the Subcontractor was required to return all sums deducted from the workers’ salaries to the workers. This was confirmed in our subsequent monitoring reviews of the same Subcontractor.

TDIC’s Implementation and Monitoring of the EPP

During 2016 and 2017, TDIC has sought to implement and strengthen initiatives to provide support to workers and improve overall working and living conditions.

In particular, whilst the organisation has continued to go through change, the level of importance and focus on the EPP was increased in 2017 with the responsibility for implementation of EPP moved directly to the TDIC CEO. We have noted, however, an ongoing need to focus on implementation of the EPP as TDIC evolves as an organisation and develops its future strategy. In particular, the Independent Monitoring Programme has been significantly relied on during this monitoring period as an enforcement tool to drive compliance with EPP as the internal team and resources have been restructured. There is a need to move away from use of external monitoring to drive implementation, towards an internally-led approach, supported by appropriate internal resources.

In addition, we have also observed and obtained evidence that:

• A revised version of the EPP was developed and published by TDIC in August 2015 and was applicable to the TDIC managed projects on Saadiyat awarded post August 2015. Two (2) of the projects that we monitored between 2016 and 2017 were subject to this revised EPP (which cannot be retrospectively applied to projects awarded pre August 2015).

This revised version of the EPP clarified and strengthened requirements in a number of areas, for example in relation to repayment of relocation and recruitment fees, with Contractors and Subcontractors now required to reimburse these fees in full to workers if proven that these have been paid to recruitment agents.

• Full implementation of an internal semi-automated EPP reporting tool has been undertaken in 2017. This tool makes it mandatory for all Contractors and Subcontractors to submit 100% of their worker data across all requirements of the EPP to TDIC on a monthly basis. The tool automatically generates reports to highlight areas of compliance and non-compliance and allows the EPP team to conduct their own additional analysis and follow-up actions on Contractor and Subcontractor non-compliance.

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Figure: Louvre Abu Dhabi Project Site(source: TDIC)

2016 - 2017 Monitoring Observations

In addition, we have reported a number of observations to TDIC against the specific requirements of the EPP as follows:

1. EPP Implementation and Monitoring

Similar to previous years, only two (2) TDIC resources are dedicated to EPP oversight and implementation. Given the level of construction activity on Saadiyat over the past two years, this has resulted in a shortage of resource to provide effective ongoing internal monitoring of the EPP. As noted above, TDIC needs to focus on maintaining adequate internal resources to drive implementation and enforcement of the EPP requirements.

2. Retention of Passports

During the 2016 monitoring period, one (1) Contractor and 14 Subcontractors out of 27 monitored (i.e. 52%), representing 393 of the workers interviewed, were found to be withholding workers’ passports without holding a ‘Passport Handover’ form signed by the worker acknowledging his acceptance for his employer to keep his passport for safe keeping. On reporting these observations to TDIC, action was taken and 343 of the 393 workers (87%) had their passports returned promptly to them. Signed Passport Handover Forms were provided to us for the remaining 50 workers indicating they willingly provided their passports to their employer.

On subsequent monitoring of a further sample of 600 workers none of them had their passports retained which indicates the rectification action was successful. This also was verified during subsequent monitoring visits.

3. Recruitment Fees & Relocation Costs

Out of the 2,420 workers interviewed during the 2016 & 2017 Monitoring Programme, 1,777 workers (73%) claimed that they had paid recruitment fees and relocation costs (including visas and air ticket costs) in cash to recruitment agents in their home countries. As was the case in previous years, none of the workers interviewed were able to provide any documentary evidence to support their claims. 976 (55%) of these workers were hired after their respective employers had commenced work on TDIC projects (i.e. after signing the EPP terms). As noted in our previous reports, the full resolution of the recruitment and relocation fees issue is beyond TDIC’s direct influence and also requires action outside of the UAE.

4. Terms of Employment and Site Assignment Agreements

1,314 out of the 2,420 (54%) workers interviewed stated they had not received an offer letter as confirmation of their terms of employment prior to leaving their home countries. This finding is consistent with previous years.

Additionally 603 workers stated they were not provided with offer letters in their respective native languages.


Looking forward, there are still a number of ongoing projects on Saadiyat Island to which the EPP applies, including the completion of final projects on the Louvre and other infrastructure projects. There is also the likelihood that new projects will commence in 2018, to which the EPP will apply. With this in mind, we have made the following observations to TDIC about the ongoing implementation of the EPP:

• Consider evaluating the learning and experience of the past six years of EPP monitoring and review any changes in international standards and norms relating to worker welfare. The results of this work should then inform development and implementation of the EPP in relation to future projects. As part of this work, also consider conducting a more formal assessment of the overall impact of working on Saadiyat Island on workers and investigate the use of technology to assist the future improvement and monitoring of workers’ welfare.

• Consider updating the EPP policy to include worker welfare requirements applicable to operations and maintenance employees working on current operational projects on Saadiyat Island such as security staff, maintenance technicians, gardeners and cleaners.

• Consider analysing Contractor and Subcontractor EPP compliance trends and use this information as part of future project tenders when evaluating Contractor proposals.

• Evaluate the TDIC resource levels required to assist in the day-to-day implementation and monitoring of the EPP and formalize the activation of the EPP Implementation Framework.

• Consider delivering additional workers’ welfare awareness workshops for workers over and above those provided by the Contractors, covering their employment rights when working in UAE and on TDIC projects.

The Way Forward

6. Accommodation and Site Facilities

During the 2016 and 2017 monitoring work we noted that three (3) Contractors and one (1) Subcontractor, all working on different projects, were accommodating 842 workers outside of the SAV in a location over two hours away from the respective project sites. This was done without obtaining any prior approval or exemption from TDIC. On reporting this issue to TDIC, the workers were promptly relocated to the SAV.

During the end of Quarter 3 in 2017, we noted inadequate living conditions affecting one Cluster during a site visit to the SAV. Conditions included excessive humidity and damage to ceilings, hallways and some bedrooms as a result of excessive condensation. Approximately 1,400 workers were immediately relocated to a different Cluster within the SAV following action taken by TDIC. The SAV Operator submitted a rectification plan to TDIC which is still in progress.

7. Health and Safety (H&S)

On 10 March 2016, as reported in the local and regional media, a fatality involving an electrician who was 57 years old from India working for a Subcontractor on the Louvre Abu Dhabi project. An additional fatality took place on 7 September 2016 involving a 44 years old Scaffolder from Bangladesh working for another Subcontractor on the Louvre Abu Dhabi project. Both workers suffered a heart attack, one at the welfare area of the site and the second at the hospital where they both received immediate medical attention. We were informed by TDIC that the local authorities in Abu Dhabi have concluded an investigation into both fatalities and determined that the death was the result of natural causes.

As in previous years, we have continued to note that the number of accidents and near misses reported across all construction activities on Saadiyat remains low (317 in 2016 and 103 in 2017) in comparison to international benchmarks for safety reporting in the construction sector. For example, the US Bureau of Labour Statistics estimates that there is typically one serious injury for every 300-600 near misses. This indicates that further action is required by TDIC to improve the reliability of health and safety reporting by Contractors and Subcontractors.

Our 2016 & 2017 Monitoring Programme also indicated a number of specific non-compliances with health and safety requirements. In particular, 58 workers (2% of the population interviewed) were in not in possession of a medical insurance card.

8. Worker Grievances

1,287 (53%) out of the 2,420 workers interviewed indicated that they were not aware of the existence of a TDIC Call Center to report any grievances. This is despite our observation that the Call Center number is widely displayed across the construction sites and in the SAV. We also note that in the past two years only 36 calls have been logged to the Call Center which shows that reluctance remains amongst the workers to use the service.

From detailed interviews with nine (9) workers who have been on Saadiyat for over four years, we noted that seven (7) workers (78%) stated they have not received any pay increase for the last three (3) years. Six (6) out of the seven (7) workers were however pleased with the overtime payments they have received. All the workers stated that their work on Saadiyat had enabled them to provide additional support to their families. They did, however, make negative observations about some living conditions in the SAV.

Figure: Saadiyat island(source: TDIC)

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16 TDIC EPP Monitoring Report

Detailed FindingsContext

The 2016 & 2017 Monitoring Programme (covering the period from October 2015 to September 2017) included reviews of six (6) out of nine (9) active construction projects on Saadiyat Island which were being managed by TDIC. These projects included:

These projects were executed by six (6) main Contractors and their 28 Subcontractors, which collectively employed a monthly average of 3,120 workers on Saadiyat between October 2015 and September 2017.

The 2016 & 2017 Monitoring Programme covered a total of 2,420 workers. Of the total number of workers 1,151 (48%) were employed by six (6) main Contractors, and 1,269 (52%) were employed by 27 Subcontractors operating on the six (6) projects reviewed.

The Louvre Abu DhabiWorkers Interviewed

in 2016: 1,100 andin 2017: 600

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Cultural DistrictPublic Realm

Workers Interviewedin 2017: 222

Abu Dhabi Louvre External Park


Saadiyat IslandPumping Station


Cultural District Infrastructure


SaadiyatPolice Station


Key Monitoring FindingsDetailed ‘Initial’ and ‘Follow-up’ EPP Monitoring reports on the status of EPP compliance for each Contractor and Subcontractor reviewed were submitted to TDIC during the course of the monitoring programme. These reports were discussed and agreed with the respective Contractors, Subcontractors and TDIC, and included their respective responses to any reportednon-compliances and other issues identified. We have summarised the main observations from the 2016 & 2017 Monitoring Programme below.

Note: for each performance area addressed, a summary of the EPP requirement is included. Please refer to V.3 of the EPP issued in February 2012 and V.4 issued in August 2015, available on the TDIC website (www.tdic.ae). Version 3 of the EPP was used to monitor four (4) out of the six (6) projects monitored by PwC during the 2016 & 2017 Monitoring Programme. The remaining two (2) projects that we monitored between 2016 and 2017 were subject to V.4 of the EPP (which cannot be retrospectively applied to projects awarded pre August 2015).

1. EPP Implementation and Monitoring

Since the completion of our Monitoring Programme in 2015, TDIC has continued with a number of initiatives to further enhance implementation and enforcement of the EPP. These initiatives have been highlighted within the Executive Summary under the section labeled ‘Key Developments – TDIC’s Implementation and Monitoring of the EPP’. Our specific observations in relation to these initiatives and TDIC’s implementation and monitoring of the EPP are:

1.1 EPP Administration

Following the completion of our independent Monitoring Programme in 2015, TDIC has been unable to activate the 2014 EPP implementation framework. The framework included roles and responsibilities for both internal TDIC staff and external stakeholders (including for example the Abu Dhabi Government, Museum Partners, Contractors, Project Management Companies) who have a role in the implementation of the EPP.

This framework is still to be formally implemented, pending the completion of a wider restructuring of TDIC’s operations.

1.2 Internal Monitoring by TDIC

In 2016, only two (2) new projects were awarded and these were all completed, along with other key projects within the Cultural District by October 2017. This has resulted in a decrease in manpower levels on Saadiyat over the monitoring period. In 2015, we noted that the monthly average number of workers deployed on site was 5,555 across seven (7) projects. This reduced to 3,120 monthly average workers during the period between October 2015 and September 2017.

Although the number of workers on Saadiyat decreased, there was still significant construction activity taking place. We have noted that there were only two (2) TDIC resources dedicated to EPP operations during the monitoring period. Also, the internal monitoring conducted by TDIC was not supported by a formalised audit and compliance plan, and did not cover an appropriate sample of workers on Saadiyat.

During our monitoring reviews of TDIC, we also observed that the EPP function had not obtained specific information which is required to be maintained on a periodic basis including, for example, agency contracts, recruitment details, information on bonuses being paid to workers, and Contractor HR Policies and Procedures.

1.3 Health and Safety

Through our discussions with the TDIC EPP function during the 2016 & 2017 monitoring period, we understood that TDIC no longer had in place a dedicated Health & Safety function to provide oversight of the Project Management Consultant’s (PMC) monitoring of TDIC’s Contractors’ and Subcontractors’ Health, Safety and Environmental performance. During our monitoring, we noted that the TDIC EPP function, in the absence of a dedicated Health & Safety function, was not actively monitoring the overall health and safety performance related to workers on site or at SAV. For example, the TDIC EPP function was not reviewing health and safety reports provided by the PMC or conducting any independent inspections on sites or at SAV.

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gsFigure: Louvre Abu Dhabi Project

(source: TDIC)


2. Retention of Passports

EPP Clause 16.3 (2012): No Contractor shall keep or retain the passport of any Employee, other than for the purposes of obtaining or renewing of a Residency Visa or cancellation of the Residency Visa upon termination of employment.

EPP Clause 16.3 (2015): The Contractor shall not keep or retain the passport or personal documents of any Employee, other than:

• For the purposes of obtaining or renewing of a residency visa or cancellation of the residency visa upon termination of an Employee’s Contract of Employment.

• Where an Employee has requested the Contractor to hold their passport for safekeeping provided that the Employee shall be entitled to request the Contractor to return their passport as and when requested.

We monitored compliance with this clause by interviewing workers and reviewing the relevant documentation which included:

• Monthly reports submitted by the Contractors and Subcontractors to TDIC which indicated whether any passports were in possession of the Contractor/ Subcontractor’s and the reasons for this; and

• ‘Passport Handover’ forms signed by the workers which stipulate that they have willingly handed over their passports to their respective employers for safekeeping.

393 of the 2,420 workers (i.e. 16%) interviewed, during the 2016 monitoring visits, stated that their passports had been were retained by their respective employers, but none of the workers were able to confirm that they had signed the “Passport Handover” form.

On reporting these observations to TDIC, a formal memo was issued by TDIC in Q1 2017 requiring all concerned Contractors and Subcontractors to return all passports to the workers. During a follow-up review we noted that 343 of the 393 workers (87%) whose passports were withheld had their passports returned to them.

The remaining 50 (13%) of workers were employed by one Contractor. On further discussion with the Contractor management, we were informed that a company-wide HR policy was in place which required the collection of passports of all workers for visa processing and that passports were subsequently retained by the Company. We were also informed that the passports were available at the Contractor’s Head Office and could be collected by the worker at any time if needed. As a response to our report, we were then provided with signed ‘Passport Handover’ forms which indicate that the workers had willingly allowed the Contractor to retain the passports for safekeeping.

3. Retention Fees and Relocation Costs

EPP 2012 and 2015 Section 15: Contractors and Subcontractors are liable for the payment of recruitment fees and all monies to relocate workers to the site, including visa fees, travel/ ticket and all monies necessary to assign the employees to the site. Contractors and Subcontractors are required to have formal agreements with recruitment agencies. These agreements should include a clause prohibiting payment of recruitment fees by workers.

Out of the 2,420 workers interviewed, 1,777 workers (73%) claimed that they had paid recruitment fees and relocation costs (including visas and air ticket costs) in cash to recruitment agents in their home countries. As was the case in previous years, none of the workers interviewed were able to provide any documentary evidence to support their claims.

Of the 1,777 workers who stated they have paid recruitment fees and relocation costs, 976 (55%) were hired after their respective employers had commenced work on TDIC projects.

Furthermore, we noted that only seven (7) Contractor and Subcontractor agreements with recruitment agents, from a total of 37 agreements reviewed (19%) contained a clause prohibiting the collection of recruitment fees and relocation costs from the workers. All of the seven (7) recruitment agents involved were registered and licensed in the workers’ country of origin. 12 (32%) Subcontractors did not have any active contracts with an EPP approved recruitment agents and had recruited workers directly (mainly through direct references from other workers), while 14 (38%) Subcontractors were unable to provide any details of recruitment process.

As noted in our previous reports, the full resolution of the recruitment and relocation fees issue is beyond TDIC’s direct influence and requires significant action outside of the UAE.

4. Terms of Employment and Site Assignment Agreements

EPP Clause 17.3 (2012): Where an employee has been recruited from outside the UAE to be assigned to the Site, the Employee shall be handed a copy of the Offer of Employment and the SAA after signature thereof. In any instance where an employee can provide proof that the original Contract of Employment given in their home country differs from the Legal contract, the Employer will immediately adjust and reimburse (where applicable) the payment of such employee.

EPP Clause 17.3 (2015): Where an Employee has been recruited for the appointment to the Site from outside the UAE, then the Contractor shall ensure that the Offer Letter, Contract of Employment and SAA are provided and signed by the Employee in his/her Home Country and provided in his/her native language. The Contractor shall establish additional procedures to ensure that any illiterate employee is provided with adequate verbal and pictorial explanations of his/her rights and acknowledgement as per the Contract of Employment and the SAA. For the avoidance of doubt and misinterpretation, the Contractor is responsible to ensure that all Employees are aware and understand their rights and responsibilities as per the Contract of Employment, SAA and Labour Law, prior to signing any document and in all cases before departing their home countries.

During our 2016 and 2017 Monitoring Programme, the following issues were identified regarding the Contracts of Employment clause of the EPP:

• 1,314 (54%) workers interviewed stated they had not received an offer letter confirming their terms of employment prior to leaving their home countries;

• 603 (25%) of workers were provided with offer letters not in their respective native language; and

• 50 (2%) did not receive their contracts of employment in their respective native language.

In response to this finding, TDIC has taken action through requesting the Contractors to provide the workers with copies of their offer letters and has committed to take further action to address this issue through additional and targeted internal monitoring by the TDIC EPP team.

The Site Assignment Agreement (“SAA”) which is a form set outat Annexure D of the 2015 EPP is required to be signed by eachworker in their native language and prior to being assigned tothe TDIC project site. The SAA is designed to ensure that the worker acknowledges and accepts the special rights and conditions of assignment to the TDIC Site and the Village.Specific observations related to the SAA included the following:

• 203 (8%) workers interviewed confirmed they had not signed the SAA. Following TDIC’s intervention, monitoring confirmed that the 203 workers had subsequently signed the SAA;

• 863 (36%) workers, indicated signing the SAA without fully comprehending the content. This was despite Contractors providing inductions for workers prior to them being assigned to the site and also the presence of signs explaining the SAA on the notice boards around SAV; and

• 139 (6%) workers stated they had signed the SAA after commencing work on a TDIC project.

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Figure: TDIC Project Site(source: TDIC)

22 23TDIC EPP Monitoring Report TDIC EPPMonitoring Report

5. Payment of Wages

EPP Section 20 (2012): Wages are paid directly and electronically into the bank account of the Employees in UAE currency. No wages shall be paid in cash. The Employer shall not deduct any money from any employees’ wages, except as permitted by law or for repayment of a loan. Deductions shall not exceed 10% of employees’ wages. The Contractor shall also provide Employees with pay slips when making salary payments and must provide proof of payment of wages to the ERM.

EPP Section 20 (2015): Wages are paid on regular monthly basis utilizing the Wage Protection System Guide (WPS). The Employer shall not deduct any money from any employees’ wages, except as permitted by law.

EPP Section 24.1 (2015): The Contractor shall provide each Employee with a pay slip when the Employee’s Wages are paid. The pay slip shall be issued in the Employee’s native language.

Since the publication of our monitoring report in 2015, the 2016 & 2017 Monitoring Programme revealed corrective actions taken by the Contractors / Subcontractors including, for example, submitting proof of workers’ salary payments to the ERM on a monthly basis, payslips being provided to workers with details of their salary break-down, and salaries being paid through the Wage Protection System (“WPS”). However, several non-compliances were still noted as detailed below:

5.1 Inaccurate Payment of Salaries

During our monitoring programme, we identified 53 cases of inaccurate payments of salaries and overtime out of a total of 552 (10%) sampled employee monthly payrolls. The following illustrates the breakdown of the 53 cases identified:

• 43 (8%) cases where rates used to pay overtime were not in compliance with UAE Labour Law; and

• Upon testing of 10 workers salary records, we noted one (1) Subcontractor, which employed 441 workers, had put in place a saving scheme, deducting AED 50 (USD 13) from all of the Subcontractors’ workers every month. We noted that this ‘saving scheme’ had not been approved by the relevant Authorities as required by the UAE Labour Law. On reporting this issue to TDIC, the Subcontractor was required to return all sums deducted from the workers’ salaries to the workers. This was confirmed in our subsequent monitoring reviews of the same Subcontractor.

5.2 Retention of Bank (ATM) Cards

During our review of one (1) Subcontractor during Q4 2016, 13 out of the 30 (43%) workers interviewed stated that they were paid in cash and not in possession of their bank ATM cards. The same 13 workers also stated that although they did receive their salaries on time, they were not provided with monthly payslips detailing the number of hours worked and the total amount paid for that specific month. Following reporting of this finding, the Contractor and Subcontractor investigated further but there was insignificant evidence to take further action. Further monitoring work with the same Contractor indicated that all workers subsequently received payslips and had their bank ATM cards.

5.3 Delays in Payment of Salaries to Workers

During our review of one project, we noted that all 50 (100%) workers interviewed from one (1) Subcontractor were paid their salaries for the months of June and July 2015, 42 and 12 days late respectively. Upon further discussion, the Subcontractor management stated that the delay had occurred due to technical errors in the processing of their payroll, however, they were unable to provide any supporting evidence. The Contractor was not on site in subsequent follow-up reviews due to completion of construction works.

Our interviews with 47 out of the 50 (i.e. 94%) workers from a different Subcontractor on the same project in the same review identified that they are being paid their salaries with an approximate delay of 15 to 60 days. We discussed this issue with the Contractor and Subcontractor management and requested evidence to suggest that all workers are being paid their salaries on time, however, the Subcontractor management failed to provide any additional documentation.

5.4 Payslips not Provided

Based on the interview of workers during the review period, 1,118 out of the 2,420 (46%) workers interviewed stated they did not receive the payslips at the time of receiving their wages. In all such cases, Contractor and Subcontractor management were, however, able to provide us with copies of the payslips signed by the workers.

In addition, one (1) of the Main Contractors stated that it is mentioned on their notice boards that workers can collected their payslips from the office, if needed. This was subsequently verified during the monitoring programme.

However, based on a review of a selected sample of payslips we noted a total of 75 out of 640 (12%) pay slips which were not in compliance with the EPP, missing information such as hours worked and overtime. In addition, 45 (60%) of payslips were not in the workers’ native language as required by the revised EPP.

6. Accommodation and Facilities

EPP Clause 46.1 (2012): The Contractor shall be obliged to utilise the Village provided by the Client to accommodate all Employees, excluding Temporary Employees. Should the Contractor require any exemption to this requirement, he has to apply in writing to the Client 60 days in advance of such accommodation ordinarily being required. Such request for exemption by the Contractor shall be reviewed and approved at the sole discretion of the Client.

EPP Clause 46.1, 46.2 (2015): The Contractor shall be obliged to utilise the Village provided by the Client to accommodate all Employees (excluding Key Personnel and Temporary Employees). Should the Contractor require any exemption to this requirement, he has to apply in writing to the Client 60 calendar days in advance of such accommodation ordinarily being required. Such request for exemption by the Contractor shall be reviewed and approved at the sole discretion of the Client. Where the Contractor has been given exemption by the Client not to utilise the Village, it will provide accommodation to its Employees that meets the minimum requirements set by the Client and regulations issued by the Ministry of Labour or relevant other Authority.

Our reviews, completed during Q4 2015, which were still in progress at the time of publishing the 2015 Annual Report, indicated that, due to internal weaknesses in TDIC’s EPP monitoring and compliance processes, the EPP function was unaware of one (1) active project on Saadiyat. This resulted in all the workers of the relevant Contractor (approximately 50 workers deployed to the site at the time of our review) being accommodated outside SAV without any exemption granted by TDIC. Since TDIC’s EPP function was not monitoring the project, an inspection had not been conducted on the Contractor’s accommodation to validate that it met the minimum requirements set out by the law and/ or the EPP. No action was taken on this observation as the same Contractor completed the construction works two weeks post finalisation of the monitoring report.

During our monitoring visits to one (1) project in December 2016 and April 2017, it was noted that 74 out of the 75 interviewed workers (99%) of one (1) Subcontractor stated they were not residing within the SAV. Overall the Subcontractor had a total of 1,400 workers who were all accommodated outside of SAV.

Through our discussions and review of documentation it was noted that the relevant Subcontractor did not have any exemption from accommodating workers at SAV. On conducting a follow-up review, it was confirmed that the Subcontractor had transferred all of its workers to SAV.

Based also on a review in July 2017, we identified another Contractor where 11 out of 79 (14%) of its workers interviewed were not staying at SAV with no exemption provided by TDIC. As a consequence of this being highlighted, the Contractor relocated all the workers to SAV in the following month.

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gsFigure: TDIC Project Site

(source: TDIC)


Saadiyat Accommodation Village Operations and Maintenance

During our monitoring visits to SAV in 2016 and 2017 we did not observe any major changes in the operations and maintenance schedule which was established in 2015. In addition, we identified no material changes in the day-to-day operations of the SAV by the operator.

During our inspection in September 2017 we noted the following in relation to accommodation in the SAV Red Cluster (based on either worker statements or PwC Monitor observations):

• Excessive humidity and damage to ceilings, doors in hallways and some bedrooms as a result of excessive condensation;

• Water leakages from air conditioners inside the bedrooms;

• Water laden hallways and toilet floors;

• Common showers in the bathrooms with white plastic curtains instead of doors, causing reduced privacy for workers;

• Water filters which were painted with white paint which results in workers and/ or inspectors not being able to identify whether or not the water filters are clean; and

• The presence of numerous insects in the buildings, indicating poor pest control procedures. Workers interviewed also complained about the lack of regular pest control equipment and procedures.

During the same visit to the SAV, we noted the following in relation to the Medical Clinic:

• There was only one clinic and one ambulance at SAV for all the workers across all the clusters; and

• There was only one trained nurse on duty. When they left with the patient to the hospital there was no substitute nurse in place.

On reporting these findings to TDIC, workers were immediately relocated to another Cluster. The SAV Operator submitted a rectification plan to TDIC which is still in progress at the time of issuing this report.

7. Health and Safety (H&S)

EPP Clause 31.1: The Contractor shall ensure that it obtains all the relevant insurance, in terms of the Local and Federal Law to ensure that all Employees have access to health insurance from the date of assignment.

Our 2016 & 2017 Monitoring Programme indicated that 58 workers (2%) of the population interviewed employed by two (2) main Contractors and six (6) different Subcontractors were in not in possession of a medical insurance card. Follow-up reviews were conducted on four out of the eight Contractors and Subcontractors where all workers interviewed were in possession of their medical insurance card. The remaining four entities were not on site during the follow-up reviews due to the completion of their construction activities.

EPP Clause 32.3: H&S inductions should be conducted, protective clothing should be provided to workers free of charge, and occupational injuries register should be maintained, H&S instructions should be displayed on notice boards and at least one first aid box shall be provided for every 100 employees.

During the 2016 and 2017 Monitoring Programme, out of a total of 2,420 workers interviewed, 164 (7%) workers had either received the H&S induction after commencement of work on-site or no evidence was provided to us that they have received the induction.

We noted that notice boards were placed at all construction sites and these contained the relevant and appropriate H&S information as required by the EPP. We also noted provision of first aid boxes, occupational injury registers and provision of regular medical examinations in line with EPP requirements.

EPP Clause 33.10: All major incidents such as occupational injuries, near misses and fatalities shall be maintained in a register and reported to ERM.

To date, approximately 71 million man hours have been worked on TDIC job sites since 2012 with 13 million man hours worked in 2016 and 2017. Monthly health and safety reports on contractor performance in 2016 indicate that a total of 73 Loss Time Incidents (LTIs), 2,149 first aid cases and 317 ‘Near Miss Incidents’ were reported across all TDIC project sites.

The 2017 monthly health and safety reports on Contractor performance indicated that a total of nine (9) Loss Time Incidents (LTIs), 2,052 first aid cases and 103 ‘Near Miss Incidents’ were reported across all TDIC project sites.

As reported in previous years, the number of reported near misses in 2016 and 2017 is still very low when compared to global construction industry benchmarks. For example, the US Bureau of Labour Statistics estimates that there is typically one serious injury for every 300 - 600 near misses. This suggests that further work may be required to improve the reliability of health and safety reporting by Contractors and Subcontractors.

It is critical to have appropriate H&S management resources in place within TDIC to ensure Project Management Consultants (“PMC”s) and Contractors are complying with the EPP, the UAE legislation and are also in line with industry good practices.

SatisfiedOpportunity to earn Overtime Payments

67%

Not SatisfiedNo salary increments over the last 3 years

78%

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Workers Satisfaction Survey

We also conducted in depth interviews with nine (9) workers employed by different Contractors and Subcontractors who had worked for over four (4) years on Saadiyat to gain a better understanding of the workers’ overall satisfaction levels relating to working and living and working on Saadiyat.

All workers stated that their purpose of coming to the UAE was to earn more than what they could earn in their home countries.

Though seven (7) workers (78%) stated that they had not received any increase in pay for the last three years, six (67%) workers did state they were pleased with the opportunity of earning overtime payments on the projects they were assigned to. All workers stated that they had been able to support their families and achieve some of their family ambitions, including being able to buy land, homes, getting married, and providing better education to their children.

However, all of the workers made negative comments about the living conditions at SAV, including their sleeping quarters and the quality of food served.

Figure: Saadiyat Accommodation Village(source: TDIC)


Figure: TDIC Project Site(source: TDIC)

Wages:

Worksite conditions:

Accommodation related:

Retention of passport:

Discrimination or harassment:

Health:

Availability of transport:

Quality of food:

Other:

Total:

Non-receipt of labour, medical cards, no reimbursement of Emirates ID:

33%

17%

8%

8%

6%

8%3 Calls

3 Calls

2 Calls

1 Call

1 Call

1 Call

4 Calls

36 Calls

3 Calls

6 Calls

12 Calls

3%

3%

3%

11%

100%

The ERM at TDIC has provided a standardised induction document to all Contractors and Subcontractors currently working on Saadiyat. In addition, we also verified that at the CC, grievance and disciplinary action procedures are mentioned on the notice boards at the site.

Despite the above mentioned actions, during our monitoring interviews, the following were identified regarding the Employee Disputes and Site Industrial Action Policy Clauses of the EPP:

• 1,287 of the 2,420 (53%) workers interviewed, indicated that they were not aware of the existence of a Call Center;

• 1,216 of the 2,420 (50%) workers interviewed, stated that they were not informed of their rights, with regard to the referral of disputes; and

• 1,269 of the 2,420 (52%) workers interviewed, claimed that they were not briefed about Industrial Action Handling Guidelines procedures during the Induction Program.

9. Working Visas

EPP 2012 and 2015 Clause 14.1: - Expatriate employees will not be allowed to work on site unless they are in possession of a valid work permit in accordance with UAE Labour Law.

All workers interviewed during the 2016 and 2017 Monitoring Programme had valid work permits in accordance with UAE Labour Law. We verified this by requesting documentary evidence of valid Emirates ID Cards issued by the UAE Government which are a pre-requisite to obtaining a UAE employment and residency visa.

However, during one 2016 review, four (4) out of the 50 (8%) workers interviewed stated that they have paid fees for their medical checkup to renew their UAE residency. As required by the EPP, no fees should be deducted from a worker in relation to employment visa processing.

In 2015, we noted that there was a new formalised governance structure in place for H&S, with two engineering consultancy firms assigned the responsibility for overseeing day to day H&S management on project sites. In addition, these engineering consultants reported to the PMC on a weekly and monthly basis regarding H&S performance. During 2016 and 2017, we noted no change to this structure and the inspection and reporting mechanisms remain consistent.

However, through our discussions with the TDIC EPP function, we observed that TDIC itself no longer has a dedicated Health & Safety function to provide oversight of the PMC’s monitoring of TDIC’s Contractor’s with regards to the Health, Safety and Environment performance.

During our monitoring visit we noted that the TDIC EPP function, in the absence of a dedicated Health & Safety function, was not actively monitoring the overall management of health and safety of workers on site or at SAV. For example, the TDIC EPP function was not reviewing health and safety reports provided by the PMC or conducting independent inspections of health and safety issues at sites, the SAV or in relation to workers’ transport.

On 10 March 2016, as reported in the local and regional media, a fatality involving an electrician who was 57 years old from India working for a Subcontractor on the Louvre Abu Dhabi project. An additional fatality took place on 7 September 2016 involving a 44 years old Scaffolder from Bangladesh working for another Subcontractor on the Louvre Abu Dhabi project. Both workers suffered a heart attack, one at the welfare area of the site and the second at the hospital where they both received immediate medical attention. We were informed by TDIC that the local authorities in Abu Dhabi have concluded an investigation into both fatalities and determined that the death was the result of natural causes.

During our initial and follow-up visits in 2016 and 2017, we visited six (6) project sites to specifically monitor health and safety issues and noted a number of other specific compliance issues including:

• Medicines and fire extenguishers with expired certificates;

• Non-availability of nurse or ambulance facilities during a night shift;

• Lack of proper portable first aid kits or a nurse on-site; and

• At one project site, several workers conducted construction related activities without wearing the required Personal Protective Equipment (“PPE”) or harnesses when working at heights in the presence of their Safety Supervisors.

On identification of these issues, the respective Contractors informed us that corrective actions were taken, including re-inducting workers/ supervisors where necessary. TDIC and the engineering consultants were also informed by the Contractors.

8. Grievances

EPP Section 37, 38, 43 (2015): The Call Centre number should be provided to workers during their induction. The EPP requires that all calls to the Call Centre will, as far as practically possible, be attended to in the native language of the Employee.

Additionally, the Contractor shall ensure all Employees are duly informed of their rights, with regard to the referral of disputes, to the UAE Ministry of Labour and Industrial Action procedures shall be addressed during the Induction Programme. The Contractor shall train its managers and supervisors in the management and implementation of the Industrial Action Handling Guidelines and all relevant aspects of the ER Procedures.

TDIC established a Call Centre (“CC”) in June 2010 with a toll free direct access line which workers are able to call to raise grievances, report concerns and make suggestions. Calls, as far as practically possible, are conducted in the native language of the workers.

A summary record of each call is maintained with each call assigned a high, medium or low priority. A note is made to confirm that the issue has been addressed and closed.

A total of 36 calls were received by this CC during the period October 2015 to September 2017 relating to issues as illustrated in the below table:

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10. EPP Induction

EPP Clause 18.1 (2015): The Contractor shall provide an induction programme, approved by ERM, to all Employees, including Temporary Employees, in their native language, including Hindi, Bengali, Telugu, Malayalam and Tamil, before they commence work on the Site. Employees will not be permitted to work on the Site before receiving a comprehensive Health and Safety and EPP induction.

During our 2016 and 2017 Monitoring Programme all 2,420 (100%) of the workers interviewed had received EPP induction, in their respective native languages.

However we identified the following regarding the timing of EPP and HSE inductions:

• 281 (12%) of the workers interviewed received EPP induction after being assigned to a project site; and

• 164 (7%) of the workers interviewed received HSE induction after being assigned to a project site.

We noted that the EPP induction presentations have been translated into the seven (7) most common languages spoken by the workers and approved by the ERM. The contents of the induction presentation are verbally explained to the workers and efforts have been made by Contractors and Subcontractors to enhance the induction approach and make it more interactive to increase the workers’ level of understanding and awareness of the EPP.

11. EPP Administration

EPP 2012 Clause 11: Major Contractor and Subcontractors shall employ a full time qualified and experienced ERP on the site and shall co-ordinate all Employment Relations (ER) functions. Such ERP appointment shall be approved in writing by the ERM prior to them assuming their duties. Where a Contractor/ Subcontractor have less than 300 employees on site, the Contractor will have one of its Senior Managers dedicated and appointed to the ER functions (Designated Employment Relations Practitioner). The ERP and DERP are required to attend a workshop arranged by the client to familiarise them with EPP. The ERP and DERP shall attend the ERG meetings.

EPP 2015 Clause 11: Major Contractor and Subcontractors shall employ a full time qualified and experienced ERP on the site and shall co-ordinate all Employment Relations (ER) functions. Such ERP appointment shall be approved in writing by the ERM prior to them assuming their duties. Where a Contractor/ Subcontractor have less than 500 employees on site, the Contractor will have one of its Senior Managers dedicated and appointed to the ER functions (Designated Employment Relations Practitioner). The ERP and DERP are required to attend a workshop arranged by the client to familiarise them with EPP. The ERP and DERP shall attend the ERG meetings.

During our 2016 and 2017 Monitoring Programme, we identified the following non-compliance cases:

• Our 2016 reviews identified three (3) Subcontractors with no Designated Employment Relationship Practitioners (“DERP”s) nominated as required per the conditions highlighted in the EPP;

• The Job Description and CV of one Subcontractor’s DERP was not in compliance with the EPP DERP requirements; and

• One main Contractor was not attending the Employment Relations Group (“ERG”) meetings as required by the EPP.

Except for one Contractor, our 2017 reviews confirmed that the ERG and Work Place Group (“WPG”) meetings, as required by the EPP, were being carried out between the ERM, the ERP and the DERPs across the 2016 – 2017 monitoring periods.

12. Employee Personal Files

EPP 2015 Clause 26: The Contractor shall maintain the original Contracts of Employment and the SAA for all Employees in a fire-proof cabinet at a location deemed convenient by the Contractor or via an electronic records system. The Contractor shall also maintain a file in soft or hard copy at site or head office for each Employee in three sections: Personnel section, Occupational injuries section and EPP section. The Contractor shall make all records detailed above available for inspection upon request by the ERM.

During our 2016 and 2017 Monitoring Programme, 242 of 2,420 (10%) reviewed personnel files were missing some key information such as the workers’ skills and medical history or record of leave. The Contractors informed us that they would provide TDIC with updates of workers records going forward.

13. Site Facilities

EPP 2012 Clause 35: Employees shall be provided with prayer rooms and adequate drinking water and toilets as per Ministerial Regulations.

EPP 2015 Clause 36: Employees shall be provided with facilities such as smoking areas, prayer rooms and adequate, drinking water and toilets as per Ministerial Regulations. Employees shall be provided a clearly visible notice board on Site for the purpose of communicating messages and notices in key languages.EPP requires that employees use the designated site entrance, and follow the shortest safe access route when travelling to and leaving from their work areas, in order to comply with all Security procedures. Appointed Security representatives may undertake random testing in respect of the above, in terms of the relevant Security Rules and Regulations.

Throughout our monitoring work at construction sites facilities such as the provision of adequate cooling water stations, rest areas and prayer rooms were found to be adequate with the exception that at one (1) site in 2015 we noted inadequate toilet facilities which was then rectified by the Contractor. D

etailed

Find

ing

sFigure: Louvre Abu Dhabi Project (source: TDIC)


About TDIC and Saadiyat Island

AppendicesAbout TDIC and Saadiyat IslandThe Monitoring ProgrammeDetails of Monitoring Programme VisitsGlossary of Terms

33374142

Abu Dhabi is the capital and the largest of the seven UAE Emirates and is a key contributor to the UAE’s economic and cultural development. Saadiyat, part of Abu Dhabi, is a natural island occupying 27 square kilometers. Development of the Island is creating a range of luxury-based experiences, including hospitality, leisure and retail activities as well as educational and residential developments.

TDIC was established in 2006 as a master developer of key cultural, residential and tourism destinations in Abu Dhabi. Its purpose is to support Abu Dhabi’s vision to become a leading destination for tourists, businesses and residents.

The company is responsible for some of Abu Dhabi’s major projects. One of its largest developments is the cultural district of Saadiyat, which houses iconic museums including the Louvre Abu Dhabi (which opened on 8 November 2017) and the planned development of the Sheikh Zayed National and Guggenheim Abu Dhabi Museums.

Projects Under Construction in 2016 and 2017

During the 2016 & 2017 monitoring period (October 2015 – September 2017) there were nine (9) construction projects managed by TDIC that formed the basis of our Monitoring Programme on Saadiyat which were:

• Louvre Abu Dhabi;

• Abu Dhabi Louvre External Park;

• Cultural District Infrastructure;

• Cultural District Public Realm;

• Saadiyat Police Station;

• Saadiyat Island Pumping Station;

• Saadiyat Island Museum District Infrastructure;

• Marina District Infrastructure; and

• Museum Car Park.

These projects were executed by nine (9) main Contractors and their 28 Subcontractors, which collectively employed a monthly average of 3,120 workers on Saadiyat between October 2015 and September 2017.

Development and Implementation of the EPP

TDIC created the Employment Practices Policy (“EPP”) in 2009 setting out welfare standards for workers on construction projects on Saadiyat. The EPP requirements are included as part of the commercial agreements between TDIC and its Contractors, with a requirement that these standards should also be implemented by their Subcontractors working on TDIC projects.

The requirements of the EPP are based on UAE Labour Law and, in certain areas, accepted international labour practices. The latest version of the EPP is available on the TDIC website.

A new version of the EPP was developed and published by TDIC in August 2015 to apply to TDIC managed projects on Saadiyat awarded after August 2015. This version clarified specific requirements that previously allowed Contractors and Subcontractors to interpret certain clauses in their favor. The revised EPP also included enhanced requirements around policies relating to, for example, reimbursement of recruitment and relocation fees.

Contractors and their Workers

Through a competitive tendering process, TDIC has awarded construction contracts to multiple Contractors for the development of various projects on Saadiyat.

In each case a main Contractor has been appointed which has overall responsibility for delivering the project. Each main Contractor appoints a number of Subcontractors to deliver parts of the project. These Subcontractors may in turn appoint other Subcontractors for completion of specific tasks. As a consequence of this complex contracting supply chain, the number and nature of the Subcontractors working on any individual project may vary significantly across the life of the project. In particular towards the completion stage of a project there may be a large number of small Subcontractors operating at a site.

Each of the main Contractors and their Subcontractors rely on a complex network of Recruitment Agents to recruit the majority of workers required to deliver their projects. These Recruitment Agents include organisations based in the UAE and in the workers’ home countries. The network of Recruitment Agents ranges from formally established entities in the UAE and the workers’ home countries, to friends and family members in their communities. The unregulated system of recruitment brokers in Asia and the sub-Continent leaves workers and their families vulnerable to potential exploitation.

Workers on Saadiyat were primarily recruited from six countries, including India, Bangladesh, Pakistan, Afghanistan, Nepal and the Philippines.

In September 2017, the monthly average number of workers employed by the projects under construction on Saadiyat was approximately 2,095 workers as compared to 5,555 in 2015.

The workers involved in the development of TDIC projects on Saadiyat are hired and paid directly by their employers, the Contractors and Subcontractors commissioned by TDIC to work on these projects. In a few instances we have noted that workers are sourced by Contractors and their Subcontractors through manpower supply agencies.

Workers Welfare Issues

Through our experience of conducting the EPP Independent Monitoring since 2011, we have made a number of observations that highlight the complexity of issues surrounding workers welfare on TDIC project sites.

As highlighted in our detailed findings, issues around recruitment and relocation fees, provision of offer letters, living conditions and payment of wages are still present despite a number of initiatives being implemented by TDIC to monitor Contractors’ implementation of the EPP.

We have provided recommendations for TDIC to consider which may further help enhance the standards of worker welfare on their project sites.

We also believe that in addressing complex issues related to worker welfare the following needs to be considered:

• Monitoring needs to be applied alongside broader Contractor engagement, education and support; and

• A number of the issues identified by monitoring cannot be solved by one company alone i.e. they are systemic and require long term collaboration and partnerships to address them.

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The Monitoring Programme

Independent Monitoring

More than 20,000 hours of effort has been invested in the Independent Monitoring Programme by 20 PwC staff members since 2011 which included interviews with approximately 6,256 workers across more than 15 different projects.

In 2016 and 2017, PwC continued the independent monitoring and reporting on EPP implementation. There were nine projects managed by TDIC on the Saadiyat which are now, largely completed, including the Louvre Abu Dhabi museum, two infrastructure project, a police station, a museum car park, a landscaping project, public real project, a pumping station and a shore protection projects.

The PwC Monitoring Programme for 2016 & 2017 focused on six (6) projects which were selected based on a number of factors, including the number of workers involved, the stage of project completion, the nature of the activities involved and contract value. A review of these projects involved interviewing 1,470 workers in 2016 and 950 workers in 2017 representing 39% and 45% respectively of the average monthly worker population on Saadiyat during the monitoring period.

The Monitoring Programme included:

• An independent appraisal of TDIC’s implementation of the EPP including TDIC’s response to the 2015 monitoring findings;

• An assessment of the governance, policies and procedures within TDIC that promote EPP implementation; and

• An independent appraisal of the extent of the EPP implementation by six (6) main Contractors and 27 of their Subcontractors working on projects on the Saadiyat.

In scoping and conducting the monitoring programme, PwC was able to draw on over 30 years’ experience in the area of social compliance monitoring and, more widely, in supporting major public and private sector organisations on corporate responsibility and sustainable development projects.

The PwC monitoring team included individuals with previous experience of advising and implementing compliance monitoring programmes. The dedicated full time PwC monitors were selected on the basis of their knowledge, experience, language skills and cultural background. The team included professionals based in the UAE supported by experts drawn from PwC’s Global Network of Firms.

PwC perform their Monitoring Programme independently of TDIC management and have reported during 2016 & 2017 to the TDIC Audit Committee and CEO who are ultimately accountable to the TDIC Board. PwC met with the TDIC CEO on a periodic basis to provide feedback on the progress and results of the monitoring programme. On a day-to-day basis the PwC team coordinated with TDIC’s Internal Audit Department and, during 2017, with the TDIC CEO and the Chairman. PwC also had direct access to the TDIC Chairman to report instances of non-compliance and any other areas of concern.

Scope of Work Completed

In the planning phase of the 2016 & 2017 Monitoring Programme, we made a number of enhancements to the monitoring approach, sampling methodology, monitoring visit protocols, communication plan and reporting deadlines to ensure we incorporated lessons learned from our previous monitoring cycles.

We also reviewed the requirements of the EPP, applicable provisions of the UAE labour law and relevant directives and regulations from Municipalities and other Abu Dhabi Government Agencies to support the revisions to the monitoring protocol.

The Monitoring Programme continued to cover Health & Safety (H&S) in more depth including a review of:

• The implementation and maintenance of H&S standards on TDIC construction sites by Contractors and TDIC’s monitoring of those standards;

• The H&S framework at the SAV (including first aid facilities, accident reporting and availability of medical staff and facilities); and

• Accident, incident and injury reporting processes within TDIC.

Our monitoring work consisted of the following activities:

• Interviews with TDIC’s ERM and other staff members;

• Interviews with workers at the various construction sites;

• Visits to Contractors head offices and document review, including review of the Contractors and Subcontractor’s relevant policies and documentation. This included human resource processes and systems providing information on, for example, remuneration, working hours, recruitment, grievance and disciplinary procedures;

• Visits to the SAV to review workers living conditions and compliance with standards as mandated by the UAE Labour Law;

• Validation of TDIC’s response to the 2015 PwC monitoring findings;

• An assessment of the governance, policies and procedures within TDIC that promote EPP implementation; and

• Detailed interviews with a sample of workers from different Contractors and Subcontractors to assess the workers’ satisfaction levels related to the accommodation, facilities and overall experience at SAV.

Sampling Methodology

The 2016 & 2017 Monitoring Programme included a review of six (6) out of nine (9) active construction projects on Saadiyat Island which were being managed by TDIC during the period from October 2015 – September 2017, including:

• Louvre Abu Dhabi;

• Abu Dhabi Louvre External Park;

• Cultural District Infrastructure;

• Cultural District Public Realm;

• Saadiyat Police Station;

• Saadiyat Island Pumping Station;

• Saadiyat Island Museum District Infrastructure;

• Marina District Infrastructure; and

• Museum Car Park.

The three (3) projects not covered by the monitoring were determined as not being material due to the risk profile and the number of workers involved. The 2016 & 2017 Monitoring Programme covered 1,151 workers interviewed across six main Contractors, and 1,269 workers across 27 Subcontractors involved with the six projects reviewed.

For each project, PwC reviewed EPP implementation for the main Contractor and the largest Subcontractors. At the Louvre Abu Dhabi project, PwC reviewed additional Subcontractors’ implementation of the EPP considering the total manpower and number of Subcontractors working at site.

The number of workers interviewed was based on the sampling criteria shown in the diagram below:

Worker Interview Sampling Approach

Number of workers interviewed

1000 and below

50 1001001 - 3000 3001 - 5000 5001 - 8000 8001 and below

Number of Employees of Contractor & Subcontractors

200 250 300 Th

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Figure: TDIC Project (source: TDIC)


Approach to the Monitoring Visits

The programme involved 24 monitoring reviews including six (6) reviews in Q4 of 2015, three (3) reviews in Q1 and Q2 of 2016 and two (2) reviews in Q4 of 2016. The 2017 reviews included a total of 13 reviews carried out in the months between April and September 2017.

Workers Interviews

Workers interviews were the primary source of information for the monitoring team. Wherever practicable, the monitoring team corroborated observations from interviews through document review (for example, employee records held by Contractors/ Subcontractors) as well as direct observation (for example, physical observation of accommodation facilities) and also informal discussions with workers during the course of our monitoring visits. However, it is important to note that some of the workers’ statements could not be corroborated. This is particularly the case where it was reported that workers found it necessary to pay recruitment fees and relocation costs. We consider that the number of worker interviews (2,420) conducted is in line with the workers interview sampling approach defined in the Monitoring Programme.

In preparation for the worker interviews, the monitoring team obtained the latest manpower report for the project from the Contractor. This provided information on the number of workers on site, their nationality, language spoken and occupation. PwC selected a sample of workers to be interviewed which was provided to the Contractors/ Subcontractors on the same day of the interviews, as it is crucial for the success of the Monitoring Programme that workers should be in a position to respond freely to questions and provide input without interference or intimidation from management.

The sample of workers selected for interview aimed to achieve fair representation from the various nationalities and occupations across Saadiyat. Workers selected for interviews included, for example, Masons, Mechanics, Operators, Plumbers, Scaffolders, Steel Fixers, Carpenters, Electricians, Technicians and Time Keepers. The interviews were conducted at the construction sites offices.

Confidentiality

Neither the management of TDIC nor Contractors or Subcontractors played a role in the selection of workers for the interviews. Interviews were not attended by representatives of the Contractors or Subcontractors or TDIC.

Although the Contractors were aware of the names of workers selected for interview, findings from the interviews were aggregated to prevent attribution to any individual worker.

Language and Culture

Recognising the importance of language and cultural issues, interviews were conducted in the workers’ native languages by PwC monitors with the same cultural background. Languages used by workers included: Hindi, Urdu, Punjabi, Bengali, Malayalam and English.

Reporting

Each initial and follow-up monitoring visit was concluded with a closing meeting conducted jointly by PwC and a TDIC representative with the Contractor’s and Subcontractor’s Senior Management. These meetings provided initial feedback on the results of the monitoring visit. A final report was then prepared, setting out the monitoring teams’ findings.

The PwC Monitoring Teams issued a total of 27 reports of which two reports were in relation to TDIC’s implementation of the EPP, one interim report and the remaining reports were in relation to Contractors and Subcontractors monitoring visits. The results of the reports are aggregated and summarised in this Monitoring Report.

Contractors were required by TDIC to respond in writing to the findings within an agreed time period.

Details of Monitoring Programme Visits

Months of Visit Number of workers interviewed

Louvre Abu Dhabi

Cultural DistrictInfrastructure

PoliceStation

Pumping Station

Louvre Museum External Parks

Cultural District Public Realm

Total

Quarter 4 2015 260 100 110 50 520

Quarter 1 2016 250 50 300

Quarter 2 2016 50 50

Quarter 3 2016

Quarter 4 2016 andQuarter 1 2017

590 10 600

April 2017 100 50 150

May 2017 100 50 150

June 2017 100 100

July 2017 100 21 79 200

August 2017 100 7 93 200

September 2017 100 50 150

Total 1700 160 160 50 128 222 2420

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Term Definition

Agent Any sub-agent, person or entity that recruits Employees for Contractors.

Basic WagesMonetary consideration given to an Employee in return for his service in terms of his Contract of Employment, which amount is used as a basis from which overtime and benefit calculations are made.

Contact Centre The Call Centre established by TDIC in accordance with the EPP in 2011.

ContractorAny company party to the Main Agreement for Construction works with TDIC, and shall be deemed to include all Subcontractors engaged by the Contractor.

DERPDesignated Employment Relations Practitioner, nominated by the Contractors that do not have an ERP, to ensure that this Policy is implemented and complied with.

Employee / WorkerAll daily, hourly and monthly paid Employees of the Contractor permanently or temporarily assigned to the site by any Contractor.

EREmployment Relations, comprising all Employment and Employment Relations policies, practices and procedures of the Contractor to be applied on the site.

EPPEmployment Practices Policy developed by TDIC to be applied by all itsContractors and Subcontractors.

ERGEmployment Relations Group, constituted to communicate, promote andcoordinate general employment practices in terms of the EPP.

ERMEmployment Relations Manager, appointed by TDIC to co-ordinate ER policies, practices and procedures of the Contractor. For the purpose of the EPP the ERM reports directly to the DER.

ERPEmployment Relations Practitioner, appointed by all Major Contractors toensure that the EPP is implemented and complied with.

Independent

Compliance with the fundamental principles set out in the Code of Ethics for Professional Accountants, issued by the International Ethics Standards Board for Accountants (“the IESBA Code”). It is not intended to imply that this report is an assurance report, or that PwC has complied with all of the ethical requirements applicable to assurance engagements, as set out in sections 290 and 291 of the IESBA Code.

Glossary of TermsTerm Definition

LawAny UAE law, regulation, directive, decree, ministerial decision or order, orguideline issued by the relevant authorities where the work is performed.

Main Agreement The agreement between TDIC and the Contractor of which this EPP forms part of.

Project Any project commissioned by TDIC on Saadiyat Island.

PwC PricewaterhouseCoopers (Abu Dhabi Branch).

Recruitment FeeAny recruitment monies or fees payable to an Agent or third party with regard to an Employee’s assignment to the site.

SAV Saadiyat Accommodation Village (formerly known as Saadiyat Construction Village).

Service ProviderA Contractor engaged by TDIC to provide services on Saadiyat Island otherthan Contractors/Subcontractors engaged for construction projects.

SiteThe location, layout and boundaries of the Project as identified in the mainagreement. Reference to “site” shall include any place where a Service Provider renders a service to the Client.

Site Assignment Agreement

The agreement that Contractors are required to enter into with Employeeswho are assigned to the site.

SubcontractorAny third party appointed by a Contractor to perform any part of the Works on the site, and includes any person or entity that supplies labour to the Contractor or subcontractor.

Temporary EmployeeAll Employees who are assigned to the site for less than 30 days accumulatively over the duration of the Works.

TDIC Tourism Development & Investment Company Company owned by the Abu Dhabi Government.

WPGWork Place Group which is established by the Contractors and Subcontractors in respect of its Employees in terms of the EPP.

WPS

The Wage Protection System is an electronic salary transfer system thatallows institutions to pay workers’ wages via banks, bureau de change, and financial institutions approved and authorised to provide the service. The system, developed by the Central Bank of the UAE, allows the Ministry of Labour to create a database that records wage payments in the private sector to guarantee the timely and full payment of agreed-upon wages. G

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Disclaimer1. This document has been prepared in accordance with our Agreement with the Tourism Development and Investment

Company (TDIC), and has been prepared for TDIC only. To the extent permitted by law, PricewaterhouseCoopers, Abu Dhabi does not accept or assume any liability, responsibility or duty of care for any use of or reliance on this document by anyone, other than (i) the intended recipient to the extent agreed in the Consultancy Agreement for the matter to which this document relates (if any), or (ii) as expressly agreed by PricewaterhouseCoopers, Abu Dhabi at its sole discretion in writing in advance. Accordingly, regardless of the form of action, whether in contract, tort or otherwise, and to the extent permitted by applicable law, PwC accepts no liability of any kind and disclaims all responsibility for the consequences of any person acting or refraining to act in reliance on the contents of this report or for any decisions made or not made which are based upon the contents of this report.

2. Unless required by law, no extract from this report is to be distributed to Third Parties without our prior written consent. We may at our discretion, grant or withhold our consent or grant our consent subject to conditions.

3. No oral or written reference to the contents of this report may be made to any Third Parties without our prior written

consent. We may, at our discretion grant or withhold our consent or grant it, subject to conditions.

4. The work we performed did not constitute a review in accordance with generally accepted auditing standards or attestation standards. Accordingly, we do not provide an opinion, attestation or other form of assurance with respect to our work.

5. We did not plan and perform our work with the objective of preventing or discovering fraud or misrepresentation by TDIC, Contractors, Subcontractors and the workers interviewed by us.

6. This report contains information obtained or derived from a variety of sources as indicated within the report, including TDIC, Contractors, Subcontractors and the workers interviewed by us. PwC has not sought to establish the reliability of those sources or verified the information so provided. Accordingly no representation or warranty of any kind (whether express or implied) is given by PwC to any person (except to TDIC, under the relevant Consultancy Agreement) as to the accuracy or completeness of the report.


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