TradeArabia News Service in Dubai, reported that Global leaders urge G20 to set up $8bn COVID-19 fund before concluding that “The UN, the G20 and interested partners should work together to co-ordinate further action.” Saudi Arabia that was readying itself to take over the G20 reins never imagined that the world’s situation could go this way.
A 165-strong international group including 92 former presidents and prime ministers, along with current economic and health leaders in the developed and developing world, have come together to demand the creation of a G20 executive task force and an immediate global pledging conference which would approve and co-ordinate a multi-billion dollar coronavirus fighting fund.
In an open letter addressed to G20 leaders, the group – which wants both to speed up the search for a vaccine, cure and treatments and revive the global economy – urges global collaboration and commitment to funding ‘far beyond the current capacity of our existing international institutions’.
“The economic emergency will not be resolved until the health emergency is addressed: the health emergency will not end simply by conquering the disease in one country alone but by ensuring recovery from COVID-19 in all countries,” the statement says.
The plea is for agreement within days for:
- $8 billion to rapidly hasten the global effort for vaccines, cure and treatment;
- $35 billion to support health systems — from ventilators to test kits and protective equipment for health workers; and
- $150 billion for developing countries to fight the medical and economic crisis, prevent a second wave of the disease flowing back into countries as they come out of the first wave. This means waiving debt interest payments for the poorest countries, including $44 billion due this year from Africa.
- $500-$600billion issue of additional resources by the IMF in the form of special drawing rights.
The letter also urges the co-ordination of fiscal stimuli to avoid a recession becoming a depression.
While welcoming the G20’s first communique on the COVID-19 crisis, the group is pressing the G20 to speed up an action plan.
The group states: “All health systems – even the most sophisticated and best funded – are buckling under the pressures of the virus. Yet if we do nothing as the disease spreads in poorer African, Asian and Latin American cities which have little testing equipment, hardly any ventilators, and few medical supplies; and where social distancing and even washing hands are difficult to achieve, COVID-19 will persist there – and re-emerge to hit the rest of the world with further rounds that will prolong the crisis.
“World leaders must immediately agree to commit $8 billion – as set out by the Global Preparedness Monitoring Board – to fill the most urgent gaps in the COVID-19 response. This includes $1 billion this year for WHO, $3 billion for vaccines and $2.25 billion for therapeutics.
“Instead of each country, or state or province within it, competing for a share of the existing capacity, with the risk of rapidly-increasing prices, we should also be vastly increasing capacity by supporting the WHO in coordinating the global production and procurement of medical supplies, such as testing kits, personal protection equipment, and ITU technology to meet fully the worldwide demand. We will also need to stockpile and distribute essential equipment.
“$35 billion will be required, as highlighted by WHO, to support countries with weaker health systems and especially vulnerable populations, including the provision of vital medical supplies, surge support to the national health workforce (70% of whom in many countries are underpaid women) and strengthening national resilience and preparedness.
“According to WHO, almost 30% of countries have no Covid\\\OVID-19 national preparedness response plans and only half have a national infection prevention and control program. Health systems in lower-income countries will struggle to cope; even the most optimistic estimates from Imperial College London suggest there will be 900,000 deaths in Asia and 300,000 in Africa.
“We propose convening a global pledging conference – its purpose supported by a G20 Executive Task Force – to commit resources to meeting these emergency global health needs.”
On the global economic outlook, the group proposes a range of measures and says:
“Much has been done by national governments to counter the downward slide of their economies. But a global economic problem requires a global economic response. Our aim should be to prevent a liquidity crisis turning into a solvency crisis, and a global recession becoming a global depression. To ensure this, better coordinated fiscal, monetary, central bank, and anti-protectionist initiatives are needed. The ambitious fiscal stimuli of some countries will be all-the-more effective if more strongly complemented by all countries in a position to do so.
“The long-term solution is a radical rethink of global public health and a refashioning – together with proper resourcing – of the entwined global health and financial architecture. “The UN, the G20 and interested partners should work together to co-ordinate further action.”
– TradeArabia News Service
Put simply, Asia is the main source of solar technology and demand for it seems to be however tumbling everywhere as confined resistance to the pandemic is hampering its dynamics. It remains that all renewables account for something like 26 percent of all capacity expansion in the Middle East region. As an exception amongst the most engaged would be Egypt. This emerging economy bets big on Solar as elaborated on by Oxford Business Group could be indicative of all that is happening nowadays.
This Emerging Economy Bets Big On Solar
April 06, 2020
Egypt’s total of 1173 recorded Covid-19 cases and 78 deaths, as of April 5, places Africa’s third-most populous country significantly below the global per capita averages for both counts as the pandemic continues to disrupt the global economy.
However, as a result of the sharp growth in international cases and the gradual closing of national borders, in mid-March the government decided to implement travel restrictions.
Egyptian airports were closed to international flights on March 19 for an initial period of two weeks. This shutdown has since been extended to internal flights and will last until at least April 15.
Additionally, on March 25 the government announced a two-week curfew from 7pm to 6am, while pharmacies and food shops will be the only retail establishments allowed to open on weekends and past 5pm on weekdays. Restaurants may only open for deliveries.
Pre-emptive economic stimulus
As the potential economic fallout of the pandemic began to become clear, on March 22 President Abdel Fattah El Sisi announced a comprehensive LE100bn ($6.4bn) package of measures. This included a LE22bn ($1.4bn) stimulus to support the Egyptian Exchange, which should also benefit from a 50% reduction in taxes on the dividends of listed companies.
In addition, the Central Bank of Egypt announced a 3% interest rate cut in what it described as a “pre-emptive move” to support the wider economy.
In a further bid to mitigate the impact of Covid-19 restrictions on key sectors, the government has committed to support exporters by allocating LE1bn ($63.5m) for export subsidies during March and April, and will furthermore postpone tax payments for three months on facilities and properties occupied by tourism companies.
Energy prices cut
Following the country’s IMF-backed reforms beginning in 2016, energy subsidies have been gradually removed, resulting in a projected price rise for both households and businesses into 2020.
However, in a bid to offset the impact of the pandemic on industrial output, on March 17 the government announced that the price of gas for industrial providers would be reduced from $5.50 to $4.50 per 1m British thermal units.
As part of the same package of measures, the government also announced that the price of electricity would be reduced for heavy industry consumption, from LE1.10 ($0.07) to LE0.10 ($0.006) per KWh. For other industries, the price is to be kept stable for between three and five years.
Boosting solar capacity
Against the current backdrop of challenging economic circumstances, on April 1 it was announced that the World Bank’s Multilateral Investment Guarantee Agency (MIGA) would provide funding for six new solar power plants at Benban Solar Park in the Aswan Governorate in Upper Egypt, one of the largest such installations in Africa.
The amount is guaranteed against the risk of currency inconvertibility and transfer restriction for up to 15 years. It is part of Egypt’s solar feed-in-tariff programme, which provides long-term contracts to private energy companies with a view to generating investment in renewable sources.
“In the face of uncertainty arising from the Covid-19 pandemic, MIGA remains committed to helping drive foreign direct investment (FDI) by supporting investors who are helping Egypt achieve its long-term goals of diversifying its energy mix,” Hiroshi Matano, executive vice-president of MIGA, said in a statement.
While the pandemic has caused a number of delays for the renewables segment, notably the postponement of the construction of four solar plants by domestic firm Inter Solar Egypt, the future bodes well for the expansion of the industry.
“In the current uncertain economic environment, solar energy has become popular, as it can be produced up to 80% more cheaply than other sources,” Yaseen Abdel-Ghaffar, Managing Director of SolarizEgypt and board member of The Solar Company, told OBG. “Although it was initially difficult to secure FDI for projects, banks are becoming increasingly receptive to renewables and a growth in financing is expected after regular economic conditions are re-established.”
By Oxford Business Group
Once considered a farfetched possibility by skeptics, global warming and climate change are now surfacing as palpable realities of the day. From wildfires in Australia to melting glaciers in Iceland, the year 2020 bid farewell to the hottest ever decade recorded on the planet. Fortunately, though, measures are being taken across all industries to curb our modern world’s carbon footprint, and the case of building and construction sector is no different.
According to a recent UNEP-supported report titled 2019 Global Status Report for Buildings and Construction, construction sector in 2019 continued its notorious position as the largest contributor of greenhouse gas emissions, resulting in 39% of the energy and process-related carbon emissions recorded during the year. The report further states that whilst as many as 136 countries have expressed intentions to work towards sustainable buildings, only a few have elaborated on tangible actions strategized to achieve such plans.
The global building stock is forecasted to grow twofold by 2050 as a direct consequence of increasing urbanization. If left unchecked, GHG emissions resulting from the building industry can rise to 50% of the global carbon emissions in the next three decades. While technological innovations have given way to reduced energy consumption, increasing cooling demand emerging from hot regions have overshadowed a significant positive trajectory. That said, countries across the world are increasingly targeting the urban built environment as a part of their national strategy towards a low-carbon future.
Within the Middle East and North Africa (MENA) region, Qatar houses one of the highest collections of sustainable buildings. Concluding 2019, the country saw completion of more than 50 projects certified under the Global Sustainability Assessment System (GSAS) – MENA’s first performance-based assessment system for green buildings. Based on their overall sustainability credentials, projects registered under GSAS can achieve up to 5 Stars, representing the highest levels of sustainable features in terms of design and build. The award of final rating and certificates follows a comprehensive process whereby auditors from the Gulf Organisation for Research & Development (GORD) analyze several aspects of projects at multiple stages throughout the construction phase.
For the year 2019, here are some green projects successfully completed under GSAS.
During 2019, many recipients of outstanding sustainability ratings were linked with Qatar Rail’s Doha Metro project. With Mesheireb Station achieving the highest rating of 5 Stars, another 17 metro stations and 2 stabling yards at different locations within Doha received 4 Stars for their environmentally friendly design and build aspects. Doha Metro is by far the world’s first metro project with accredited sustainable certification specific to rating railway stations. This has been achieved through GSAS’ unique Railways Scheme that is used for rating the sustainability and ecological impacts of new main station buildings, including spaces that serve various functions of a metro station. According to Consolidated Contractors Company, sustainability of the project has been achieved through responsible site development, water saving, energy efficiency, materials selection, cultural and economic value support and innovation in design. Stations awarded GSAS accreditation during 2019 included those located in Msheireb Downtown, Ras Bu Abboud, Al Sadd, Al Sudan, Bin Mahmoud, Qatar University, Hamad International Airport Terminal 1, Al Doha Al Jadeda, Umm Ghuwailina, Ras Bu Fontas, Economic Zone, Al Wakrah, Al Bidda, Corniche, Hamad Hospital, Al Riffa, The White Palace and Education City.
Lusail City Projects:
A number of projects receiving green certifications during 2019 represented Lusail City – Qatar’s first smart city covering 38 square kilometers, that has mandated GSAS to ensure sustainability of all of its buildings. A flagship project of Qatari Diar, Lusail City has been dubbed as the “largest single sustainable development” ever undertaken in the State of Qatar. Use of native flora and water efficient landscaping mechanisms are some ways the city conserves water. Its integrated transport system reduces GHG emissions resulting from private vehicles. The city’s urban connectivity has been achieved through light rail, ample pedestrian walkways, bicycle tracks and park-and-ride facilities at the public transport stations. With a capacity to reduce up to 65 million tons of CO2 per annum, Lusail’s district cooling plant boasts of being one of the largest in the world. Other green credentials benefiting the entire city include a pneumatic waste collection system, sewage treatment plant and an interconnected natural gas network designed to cut down energy consumption.
Within Lusail, Marina Yacht Club Al Khaliji Tower received the highest sustainability rating of 4 Stars during 2019 followed by another 8 commercial, residential and mixed-use developments receiving 4, 3 and 2 stars. Once complete, the city will have the capacity to accommodate 200,000 residents, 170,000 employees and 80,000 visitors without significant impact on the environment.
Sustainable development is one of the four key pillars of Qatar National Vision 2030, a fact that has provided a natural impetus for public projects to be designed and constructed sustainably. Now, all government projects within Qatar are now mandated to pursue and achieve sustainability under GSAS certification system. To this end, health centers in Al Waab, Al Wajbah, Muaither and Qatar University were successfully completed with 3 Stars sustainability rating during 2019 under the supervision of Public Works Authority ‘Ashghal’. Interestingly, all projects undertaken by Ashghal have been designed and built following sustainability principles – a fact that has been reiterated by Ashghal’s President, Dr. Eng. Saad bin Ahmad Al Muhannadi, who recently emphasized that “Ashghal is implementing GSAS standards in all its public buildings in Qatar, specifically in educational and health buildings.” In the light of these comments, one can safely assume that the upcoming stock of health centers in Qatar will continue to have sustainability at the core of their design and construction.
Hamad Port Project Facilities:
Increasing Doha’s total port capacity, Hamad Port Project started operations in 2016. However, construction has been underway to develop new facilities aimed at enhancing the port’s functional efficiency. The year 2019 witnessed completion of multiple facilities inside the new port with sustainability certification. From accommodation and mosques to civil defense and business center buildings, 19 projects under the umbrella of Hamad Port received sustainability rating between 3 and 2 Stars. Development of the new port has followed comprehensive mechanisms aimed at preserving the environment. For instance, 39,117 mangroves, 14,252 sqm of sea grass and 11,595 hard corals were relocated prior to the construction phase. The relocated flora and fauna are being continuously monitored and have so far proven to be surviving.
Taking green sports infrastructure to another level, Al Janoub Stadium received GSAS 4 Stars during 2019, and rightly so. Soon to be a venue for FIFA 2022 World Cup games, the stadium consumes 30 percent less water in terms of international plumbing codes. More than 15% of its permanent building materials are made from recycled content and more than 85% of the waste generated during construction was processed to be reused or recycled, making it one of the most sustainable stadiums worldwide. Apart from Al Janoub, Qatar University’s Sports and Events Complex was another distinguishing project that received 4 Stars under GSAS Design & Build scheme.
Source: Press Release
A leading data and analytics company GlobalData as reported by Trade Arabia on 4 April 2020, informs that Global construction output growth revised to 0.5pc in 2020. It must be said that it will be more acutely felt in the Gulf area of the MENA region with the Gulf economies to pick up this year following spending spree per a Reuters poll.
Prior to the coronavirus (COVID-19) outbreak, leading data and analytics company GlobalData had predicted that there would be an acceleration in the pace of growth in the global construction industry, but given the severe disruption in China and other leading economies worldwide following the outbreak, the forecast for growth in 2020 has now been revised down to 0.5% (from 3.1 per cent previously).
The current forecast assumes that the outbreak is contained across all major markets by the end of the second quarter, following which, conditions would allow for a return to normalcy in terms of economic activity and freedom of movement in the second half of the year. However, there will be a lingering and potentially heavy impact on private investment owing to the financial toll that was inflicted upon businesses and investors across a wide range of sectors, stated the top analytics company in its ‘Global Construction Outlook to 2024 – COVID-19 Impact’ report.
While growth in 2021 will be marginally higher than previously expected owing to the projected rebound (and high year-on-year growth rate) in the first half of next year, in the event that the spread of the virus continues into the second half of 2020, further downward revisions to the growth outlook are likely, it added.
Danny Richards, the lead economist at GlobalData, said:
“With extreme quarantine measures including lockdowns of entire countries as well as international travel restrictions being imposed across many major economies, the supply shock is expected to dampen economic activity.”
“The direct impact on construction has been the halting of work with labour unable to get to sites or because of disruption in the delivery of key materials and equipment,” he noted.
“More generally, the construction industry will be heavily affected by the expected widespread disruption to economic activity and a likely drop in investment, with planned projects being delayed or cancelled,” he added.
GlobalData foresees particular struggles in the commercial and industrial sectors; businesses in these sectors are most at risk from the severe drop in economic activity, domestically and globally, and their immediate priorities will be on staying afloat and rebuilding their core operations, rather than expanding and investing in new premises or capacity.
The residential sector also will struggle as economic activity weakens and unemployment rises, despite low-interest rates and direct government support, revealed Richards. “There is a high risk that a considerable proportion of the early stage projects in these sectors will be cancelled or at least pushed back, with few new projects starting in the second quarter of 2020 as firms review their expansion plans,” he added.
According to Richards, the governments and public authorities would likely be aiming to advance spending on infrastructure projects as soon as normality returns so as to reinvigorate the industry.
“With interest rates falling to record lows, borrowing costs will be at a minimum, but the success of government efforts to spend heavily on infrastructure will be dependent in part on their current financial standing,” he explained.
“Moreover, with most governments prioritizing cash hand-outs, particularly to the economically weaker segment, their capability to invest in the infrastructure segment is likely to be constrained, especially in countries with high debts,” he added.
-TradeArabia News Service
Bulent Gökay, Keele University elaborates on how Turkey tries to keep wheels of economy turning despite worsening coronavirus crisis. It, contrary to its neighbours, would not go down the same way. Read on to find out why.
Turkey confirmed its first case of the new coronavirus on March 11, but since then the speed of its infection rate has surpassed that of many other countries with cases doubling every two days. On April 2, Turkey had more than 15,000 confirmed cases and 277 deaths from complications related to the coronavirus, according to data collated by John Hopkins University.
The Turkish government has called for people to stay at home and self-isolate. Mass disinfection has been carried out in all public spaces in cities. To encourage residents to stay at home, all parks, picnic areas and shorelines are closed to pedestrians.
Some airports are closed and all international flights to and from Turkey were banned on March 27. All schools, universities, cafes, restaurants, and mass praying in mosques and other praying spaces has been suspended, and all sporting activities postponed indefinitely.
Manufacturing remains open
Many small businesses in the service sector are closed, and many companies in banking, insurance and R&D have switched to working from home. But in many industrial sectors, such as metal, textile, mining and construction, millions of workers are still forced to go to work or face losing their jobs. In Istanbul, where more than a quarter of Turkey’s GDP is produced, the public transport system still carries over a million people daily.
Recep Tayyip Erdoğan, Turkey’s president, has openly opposed a total lockdown, arguing a stay-at-home order would halt all economic activity. On March 30, he said continuing production and exports was the country’s top priority and that Turkey must keep its “wheels turning”.
But in the short term, many of Turkey’s export markets for minerals, textiles and food, such as Germany, China, Italy, Spain, Iran and Iraq, are already closed due to the virus. This has led to enormous surpluses piling up in warehouses. Even where there are overseas customers, getting the goods delivered has proven difficult. The process of sanitising and disinfecting the trucks and testing the drivers before they travel takes many extra hours, sometime days, after waiting in long lines.
Still, Erdogan’s statements give the impression that he sees this pandemic not only as a serious crisis, but also as an opportunity for Turkish manufacturers. The hope is that, after the Chinese shutdown, European producers which depend on Chinese companies for a range of semi-finished products may consider Turkey as an alternative supplier in the longer term. That’s why the government is still allowing millions of workers to go to factories, mines and construction sites despite the huge health risk.
A bruised economy
The Turkish government announced a 100 billion lira (£12 billion) stimulus package on March 18. It included tax postponement and subsidies directed at domestic consumption, such as reducing VAT on certain items and suspension of national insurance payments in many sectors for six months. But this is an insignificant sum for an economy as big as Turkey’s.
Most of the support will go to medium and large companies that were forced to close, and only a very tiny amount to individual workers. In order to benefit from the scheme, a person must have worked at least 600 days in the past three years (450 days for those in Ankara). Those with most need get the lowest level of help or no help from the state.
The tourism sector, which accounts for about 12% of the economy, has already been decimated. Some 2.5 million workers will not be able to work as they had been expecting to in the peak tourist months between April and September.
Limited room for manoeuvre
Even before the virus hit Turkey the economy was already weak, still trying to recover from the impacts of a 2016 coup attempt and a 2018 currency crisis, both of which caused severe stress to Turkey’s economic and financial systems.
In March, Turkey’s Central Bank reduced its benchmark interest rate by 1%, and several of the country’s largest private banks announced measures to support the economy, such as suspending loan repayments. As a result, the Turkish lira initially held up reasonably well, compared with other emerging market economies, but it fell to an 18-month low on April 1 as the coronavirus death rates accelerated. Official interest rates have fallen below 10%, providing some protection to those holding Turkish lira versus some foreign currencies.
Turkey’s financial options to limit the impact of the crisis are limited. Credit rating agency Moody’s revised its prediction for the country GDP from 3% growth in 2020 to a 1.4% contraction. Still, it may get a reprieve from the low oil price. Turkey imports almost all its energy needs, and with the recent fall in the price of oil and gas, this means Turkey could save about US$12 billion (£9.6 billion) in energy imports.
It is hard to see very far ahead. During the next few months, it’s expected that Turkey, alongside South Africa and Argentina, could be sliding toward insolvency and debt default. After that, everything depends on how this crisis progresses and how long it will take to end.
Bulent Gökay, Professor of International Relations, Keele University
This article is republished from The Conversation under a Creative Commons license. Read the original article.