Posted in Construction, on July 5, 2020, Further cuts to MENA construction sector expected for 2020 as the region appearing to be hit with a triple whammy, per GlobalData, would sound in our opinion as a realistic assessment at this conjecture of the construction industry in the MENA.
The Middle East and North Africa (MENA) construction sector is expected to be bit by the triple whammy of lower oil production, low oil prices and contracting non-oil sectors. Leading data and analytics company GlobalData has further cut its construction output growth forecast for the region for 2020 to -2.4%, down from the previous forecast of 1.4%, in light of continued spread of COVID-19.
Yasmine Ghozzi, Economist at GlobalData, comments: “Construction activity for the remainder of 2020 is set to see poor performance. While there is usually weak construction activity in the holy month of Ramadan and during the hot summer months of June, July and August, this is usually compensated by strong performance at the beginning and end of the year. However, this will not be the case this year due to the strict lockdown policies that extended until the end of May.
“The sector is expected to face headwinds in 2021 with a slow recovery, but the pace of this will be uneven across countries in the region. Fiscal deficits and public debt levels will be substantially higher in 2021. Fiscal consolidation will hinder non-oil growth across the region, where governments still play a considerable role in spurring domestic demand.
“In addition, public investment is likely to be moderate, which will translate into fewer prospects for private sector businesses to grow – especially within sectors such as infrastructure. Expected increase in taxes, selected subsidy cuts and the introduction of several public sector service charges will influence households’ purchasing power, having a knock-on effect on future commercial investments.”
Amid the worsening situation with regards to the COVID-19 outbreak and the decline in oil prices, GlobalData has further cut its forecast for construction output growth in Saudi Arabia to -1.8% from its previous forecast of 2.9% in 2020 and expects a recovery in the sector of 3.3% in 2021. The government’s decision to host limited annual ten-day Hajj entails a possible loss of estimated revenue at more than US$10bn, adding more pressure on the Kingdom’s economy.
Ghozzi adds: “GlobalData has estimated a contraction of 2.1% in construction output growth in the UAE but expects a rebound in 2021 of 3.1%. In one of the largest global energy infrastructure transactions, Abu Dhabi National Oil Company (ADNOC) raised US$10bn by leasing a 49% stake in its gas pipelines for 20 years. This landmark deal is important especially during the prevailing industry downturn in order to keep profitability.
“GlobalData has also cut further the growth rates for Qatar, Kuwait and Oman in 2020 to -3.4%, -7.8% and -8.1%, respectively. Qatar’s economy this year will be affected by decline in tourist arrivals, low consumer spending and low oil prices. Nevertheless, strong fiscal stimulus and spending on infrastructure projects should provide support.
“The negative outlook for Kuwait is weighed down by lower oil prices and the prospect of a higher fiscal deficit, possibly compromising the government’s capital spending on construction and infrastructure. Business unfriendliness constitutes a barrier to reforms in the Kuwaiti economy; the extensions in tenders’ deadlines compounded by an inflexible bureaucratic procurement setup that slows decision-making will delay progress for several Kuwaiti megaprojects.”
Egypt’s construction sector is set to continue performing well despite poor performance of the non-oil sector in April. GlobalData expects construction to grow at 7.7% in 2020, slowing from 9.5% in 2019, given a short-term slow down due to the pandemic and 8.9% in 2021, and to continue maintaining a positive trend throughout the forecast period. In the Arab Maghreb, GlobalData has further cut forecasts for construction growth in Tunisia, Morocco and Algeria to -3%, -2.1%, and -2.5%, respectively, in 2020 and 0.7%, 1.2% and 1.9%, respectively, in 2021.
GlobalData has a bleak view of Iran’s construction sector throughout the forecast period. A slowdown in economic activity caused by the virus outbreak and a possible wave of further US sanctions (in the event Trump wins a second term) will continue to wreak havoc on its economy, and drastically affecting construction activities.
The Nile and the dam: Can Egypt, Ethiopia and Sudan find a way forward? Wondered Daniel C. Stoll in Middle East Eye of 2 July 2020 before adding: Since it began construction in 2011, Ethiopia has been at odds with its downstream neighbours, especially Egypt, over the Renaissance Dam’s very existence.
The image above is of the Grand Ethiopian Renaissance Dam as pictured on 26 December (AFP).
As Ethiopia moves closer to filling the reservoir behind the Grand Ethiopian Renaissance Dam (GERD), parties are frantically searching for a way to decrease tensions and ensure that negotiations – not sabre-rattling – help Egypt, Ethiopia and Sudan find a way forward.
The window for finding a resolution, however, appears to be closing quickly.
Ethiopia has long said that it would use the onset of its rainy season in July to begin filling the dam’s reservoir. Since it began construction in 2011, Ethiopia has been at odds with its downstream neighbours, especially Egypt, over the dam’s very existence.
While Ethiopia touts the $4.6bn GERD as a key to the country’s development and a source of cheap electricity for Ethiopia and its neighbours, Egypt claims the dam represents an existential threat that will choke off the Nile’s flow into Egypt and imperil its citizens.
Despite the bellicose rhetoric from the two countries and the constant exchange of threats and counter-threats, Egypt, Ethiopia and Sudan have managed over the years to talk through their differences and agree on many key issues. In 2015, they inked a Declaration of Principles, committing all three countries to cooperation on the dam’s construction and to the peaceful resolution of any disagreements that might arise.
Each has too much to lose to let conditions within the Nile River Valley reach a point of outright conflict
While relations among the three riparian states in subsequent years have been marked more by acrimony than agreement, they did come together for talks coordinated by the US Department of Treasury and the World Bank in late 2019 and early 2020. These talks produced a draft agreement containing a number of key points related to the dam and its reservoir (estimated to hold more than 74 billion cubic metres of water).
Sudan’s foreign minister, Asmaa Mohamed Abdalla, said in a letter to the UN Security Council on 2 June that the talks had produced 90 percent of an agreement. Just before the three countries were scheduled to initial the draft agreement in late February, however, Ethiopia refused to accept it, and the threats and recriminations resumed.
Left unresolved are two key issues: the current lack of any drought mitigation protocols and the absence of any dispute resolution process.
Since Egypt receives almost 98 percent of its freshwater for agricultural, industrial and municipal uses from the Nile, the country insists that Ethiopia must commit to releasing a specific amount of water during periods of prolonged drought to ensure a consistent and predictable flow into Egypt. Both Sudan and Egypt also insist on a clear process for resolving disputes over the operation of the dam.
For its part, Ethiopia insists that committing a specified volume of water during periods of drought will ultimately drain the reservoir, thereby impeding Ethiopia’s ability to generate the electricity it badly needs. It also believes that Egypt is trying to perpetuate what it regards as Egypt’s unfair claim to substantial amounts of the Nile’s waters.
Since February, several outside players – including the EU, US and South Africa (as head of the African Union) – have tried to bring the riparian states back to the negotiating table, but with little success.
In early April, Ethiopia proposed a two-year interim agreement, arguing it would help reduce tensions and rebuild trust. Egypt rejected the proposal, however, asserting that an incremental approach would allow Ethiopia to avoid agreeing to a more comprehensive approach. Sudan also insists on a comprehensive agreement.
In a further attempt to pursue a diplomatic solution, both Sudan and Egypt have asked the UN Security Council to take up the issue under Article 35 of the UN Charter. UN Secretary-General Antonio Guterres has said that the UN stands ready to help the parties come to an agreement.
While a Security Council debate may eventually identify a way forward, the council’s deliberate modus operandi is unlikely to produce any dramatic breakthrough in the short term. Both Ethiopian Prime Minister Abiy Ahmed and Egyptian President Abdel Fattah al-Sisi are facing considerable pressure within their respective countries to “hang tough” and not be seen as compromising on issues of such vital national interest. Why the US wants to avert conflict over the NileRead More »
It is unclear how the council would create conditions for compromise, and yet compromise the three states must do. Each has too much to lose to let conditions within the Nile River Valley reach a point of outright conflict.
Sudan could benefit greatly from access to the cheap and abundant electricity that the GERD is expected to provide. It also needs assurances that nothing will affect the Nile’s flow into Sudan and impede the operation of its Roseires Dam.
While Ethiopia appears to have the upper hand in this situation – given its growing economy and the strategically important position it occupies along the river – it, too, needs some kind of negotiated solution. A diplomatic solution would deepen its already growing influence in the basin and enhance its credentials as the dominant power in the region – a consideration that appears at the forefront of Abiy Ahmed’s strategic calculus. It would help reassure potential buyers of GERD’s electricity that Ethiopia is a trusted and reliable partner.
For Egypt, the stakes are obvious: other than a modest amount of groundwater, Egypt has no other ready source of water for its rapidly expanding population (currently 102 million and estimated to be growing at a rate of 1.94 percent a year).
A negotiated agreement would also most likely give Egypt, and Sudan as well, access to important technical and environmental data related to the Nile’s flow and conditions in the basin upstream, information crucial for making informed decisions on water policy.
All countries would benefit from a less bellicose geopolitical environment within the basin, but compromise will be difficult
Finally, achieving some kind of resolution to this particularly thorny issue would allow the Sisi government to focus on an expanding number of domestic and foreign policy challenges, including increasingly tense relations with Libya, as well as growing domestic political and social unrest.
All countries would benefit from a less bellicose geopolitical environment within the basin, but compromise will be difficult. Egypt will need to recognise that Ethiopia has a right to pursue its ambitious development schemes, while acknowledging Ethiopia’s growing influence in the basin specifically and the Red Sea region more generally – influence that will come at the expense of Egypt’s long-held dominance in the region.
For its part, Ethiopia will need to recognise the precarious position of its downstream neighbours, particularly Egypt, and provide credible reassurances that it will release sufficient amounts of water during periods of drought.
While Ethiopia has long resisted bringing in third parties to help facilitate negotiations, it is possible that the African Union could play a constructive role in this regard. Egypt would have to overcome its reluctance to giving the AU a more dominant role, but having the AU involved in negotiations would be in keeping with Egypt’s long-held demand for outside intervention.
Ultimately, the time might have come for negotiations to go beyond the ministerial level and involve instead the heads of government. To date, negotiations have generally involved the respective ministers of irrigation or water. Achieving a resolution to these final, contentious issues may well require the direct participation of the senior political leadership of each country.
The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Eye.
Daniel C. StollDaniel C Stoll is Associate Dean for Global Affairs at St Norbert College in the US. He is the co-author most recently of International Conflict Over Water Resources in Himalayan Asia (Palgrave Macmillan) and has written extensively on issues of water resources management in Africa and the Middle East.
GLOBAL CONSTRUCTION REVIEW News published this article on Doha’s “Diamond in the Desert” finished in good time for Qatar’s 2022 World Cup.
18 June 2020 | By GCR Staff
Education City Stadium, the 40,000-capacity venue nicknamed the Diamond in the Desert, has been completed in good time for Qatar’s 2022 World Cup Finals.
Located in Education City, a 12km development in Al Rayyan, in the centre of the country, the stadium is the third to be finished, following the Khalifa Stadium in May 2017, and the Al Janoub Stadium in June 2019.
The modular upper tier, which contains half of Education City Stadium’s seats, will be donated to developing countries after the World Cup is over.
The stadium’s facade forms a diamond lattice that appears to change colour as the sun moves across the sky and sunlight strikes it from different angles. Another feature is a possible five-star Global Sustainability Assessment rating – helped by the use of recycled materials for 29% of the structure.
Hassan Al Thawadi, the Supreme Committee for Delivery & Legacy’s secretary general, said: “Launching the stadium now – while the world is overcoming the coronavirus pandemic – shows everyone that there is light at the end of the tunnel and brighter days ahead.
“We are proud to pay tribute to the frontline workers who remain at the forefront in the battle against Covid-19 and look forward to bringing the world together – at this stadium and others – using the unifying power of football in 2022.”
The Al Rayyan Stadium and Al Bayt Stadium are both due to be completed by the end of 2020.
Qatar had originally planned to build 12 stadiums for the World Cup but the number has since been cut to eight. It plans up to install 16 floating hotels to accommodate football fans during the tournament.
An article by Engidashet Bunare & Shiferaw Lulu dated May 19, 2020, carrying a title such as The Crocodile Tear of Egypt and The Grand Ethiopian Renaissance Dam (GERD) should be taken seriously for it is a point of view of an adjoining neighbour to one of the most prominent countries south of the MENA region. We all know that Egypt’s options were not that clear at the Nile talks some time ago. The first three sections are republished here for their obvious content.
The media and Egyptian professionals are trying to influence with one sided view and deceive the international community. The purpose of the propaganda and lies that are taking place internationally by the Egyptian politicians and professionals is to mislead the international community and countries about the GERD for getting biased support and to pressurize Ethiopia to sign an agreement that only satisfies Egypt’s interest at the expense of over 100 million people of Ethiopia. In addition Egypt is trying to use the GERD issue to shadow and divert political and diplomatic efforts from the CFA (Cooperative Framework Agreement) that requests reasonable and equitable share of the Nile water among the basin states.
In addition to its hoodwink, Egypt has been and is supporting political opponents, religious radicals and ethnic radicals to destabilize upstream countries in order not to have peace in their countries to develop their nation, which inevitably consider using of their water.
It has to be clear that the population of the basin countries is increasing and the demand for water supply, irrigation and power generation will definitely amplify. Whatever lies and deceptions are implemented, no one can stop the people and the countries that originate the Nile water from using the water from their backyard. It has to be clear that these countries will not continue under poverty and see their people starve while Egypt is enjoying prosperity.
We Ethiopians need to bring the facts to the light and try to stop Egyptian professionals, scientists, journalists and politicians from deceiving the international community.
II. The Nile Water and the GERD
It has to be clear to all the international community and the Ethiopians at large that there is no any significant contribution to the Nile water either from Egypt or the Sudan. However, these two countries have shared 100% of the water among themselves. Ethiopia is contributing 84.1% of the Nile water and has zero shares and the rest of the countries contribute 15.9% and have zero shares from the Nile water.
Egypt wants to keep this unreasonable share of water and keep the upstream countries to support Egypt’s prosperity, while living in poverty. Egypt has been using the World Bank and the other developed nations not to provide loans or grants towards development of the water from the Nile basin. As a result of this, the upstream countries obliged to live under poverty and famine.
Ethiopia contributes 84.1 % percent of the waters for the Nile river system (94.5 Bm3). The Blue Nile 57.1 % percent (54 Bm3), Baro-Akobo (Sobat) 14.3 % percent (13.5 Bm3), Tekezze (Atbara) 12.7 % percent (12 Bm3) – while the contribution from the Equatorial Lakes region is only 15.9 % percent (15 Bm3), but contribution from Ethiopia other than Blue Nile is a total of 27 % percent from Baro-Akobo (Sobat) 14.3 % and Tekezze (Atbara) 12.7 % respectively which is almost double of the contribution from White Nile or the Equatorial Lakes region.
The main water resources problem in Ethiopia is that the major rivers of the country have trans-boundary nature. 70% of Ethiopia’s water resources that are contributing to the 84.1% of the Nile River flow are found in the three sub-basins of the Ethiopian side of the Nile Basin namely; Abay (Blue Nile), Tekeze- Mereb and Baro-Akobo and whereas the population is no more than 40 percent of the country. On the other hand, the water resource available in the east and central river basins is only 30 percent whereas the population in these basins is over 60 percent.
Out of the total 84.1% Nile water contribution of Ethiopia, the GERD is being constructed on Blue Nile (Abbay) river which is contributing 57.1% of the Nile River flow. This Abbay River Basin covers 44% of the surface water source and 26% of the population of Ethiopia.
According to the 1959 agreement between Sudan and Egypt, the Nile water is divided as follows: 55.5 billion cubic meters to Egypt, 18.5 billion cubic meters to Sudan, and 10 billion cubic meters to account for evaporation and seepage. The Al-Jazeera documentary (The GERD, under the title “How big is Ethiopia’s new dam”?) clearly showed that based on the Colonial treaties the Nile’s water shared by Egypt 66%, by Sudan 22%, by Ethiopia 0%, and 12% lost to evaporation. We would like to make clear that the volume of High Aswan Dam 162 billion m3 is more than double of the GERD volume of 75 billion m3. Toshka and El-Salam huge projects of Egypt that have significant effect on the water rights of the upstream countries have estimated investment of about 100 Billion USD in 2017 which is about 20 times the estimated construction cost of the GERD. It has to be noted that Egypt has not consulted any of the upstream countries while developing these projects. In addition to the Nile water, Egypt has groundwater resources in the Nile Valley and Delta, the western desert, and Sinai. The largest groundwater deposit is the giant Nubian sandstone aquifer underneath the eastern part of the African Sahara, which is shared between Egypt and four other countries. It contains over 200,000 billion m3 of non- renewable water in total that can serve for thousands of years. The aquifer underlying the Nile Valley and Delta has a total capacity of 500 billion m3 (200 and 300 billion m3 respectively). Egypt has to learn a lesson from “The Libyan Great Man-made River (GMMR) Project, eighth wonder of the world” embarked by Muammar Qadhafi in 1983” which supplies 6,500,000 m3 of freshwater per day to the cities of Tripoli, Benghazi, Sirte and others.
In addition, Egypt because of its unique location has sea outlet both on Mediterranean and the Red-Sea that makes desalinated water available both from the east and north of Egypt. Egypt is well aware of the recent technological advances that have significantly decreased the production costs of desalinated water.
The GERD is located in Ethiopia; on the Blue Nile River about 20 Km upstream from the Ethiopia-Sudan Border. The GERD is for hydropower which is non-consumptive use and does not stop the flow of the river. The Dam is currently under construction; where totally about 73 % of the project both civil and electro- mechanical work is completed. The GERD has two power plants with capacities of 3750 MW and 2250 MW or total installed capacity of 6000 MW that could generate average energy of 15,692 GWh per year.
GERD is an additional storage dam both for Egypt and Sudan, and also that save water that is lost by evaporation in the desert from Aswan High Dam and the reservoirs in Sudan. It also serves as a silt trap for the dams in Sudan and Egypt. The GERD specifically saves Sudan from the annual flooding of thousands of irrigable area and help to reclaim its irrigable lands that optimize irrigation in Sudan. The GERD also helps to increase the rainfall in the Ethiopian highland as a result of the evaporation from the reservoir that will contribute to the Nile flow. Based on these facts, to build a dam on the Blue Nile in Ethiopia is not a new issue at all. It was already considered as an option in the 19th century by the British, mainly because of the lower levels of evaporation, sediment control, and regulated flow.
It is clear that GERD has no significant effect as compared to its remarkable benefits both for Egypt and Sudan. It has to be clear that the GERD is being constructed under zero percent water share of Ethiopia. Now what Ethiopia should negotiate is not about the GERD, it has to raise the issue of sharing the Nile water equitably among all the basin states.
III. Cooperation Efforts of the Basin Countries on Equitable Use of Nile Water
Based on the initiative of Ethiopia, a series of the ‘Nile 2002 conferences’ that started in 1993 continued up to 2002. This cooperation effort paved the way for the Nile Basin Initiative (NBI) established in 1999. A Shared Vision Programme (SVP) supported cooperation through promoting collaborative action, and trust intended to build a strong foundation for regional cooperation, of which the goal was the creation of an enabling environment for investments and action on the ground (NBI, 1999).
The NBI established a secretariat in Uganda and two subsidiary action programmes (SAPs) in the Eastern Nile (based in Addis Ababa) ENSAP (The Eastern Nile Subsidiary Action Program) currently includes Egypt, Ethiopia, and Sudan and the Nile Equatorial Lakes region (in Kigali). NELSAP (The Nile Equatorial Lakes Subsidiary Action Program): The Nile Equatorial Lakes region includes the six countries in the southern portion of the Nile Basin: Burundi, Democratic Republic of Congo, Kenya, Rwanda, Tanzania and Uganda, as well as the downstream riparian states Egypt and Sudan.
The Nile Basin Initiative (NBI) 1995-2011 resulted in the development of the Cooperative Framework (CFA) and the establishment of the UNDP D3 project which started the negotiations for a River Nile Cooperative Framework Agreement in 1997; The D3 project had main activities of which was major for the development of the Cooperative framework agreement (CFA). Accordingly, the Panel of Experts (POE) formulated cooperative framework and approved by Council of Ministers (COM). The CFA (2009) adopts the seven most relevant factors for determining equitable and reasonable utilization from Article 6(1) of the 1997 United Nations Watercourses Convention.
The Nile-COM with the exception of Egypt and Sudan absent, agreed and resolved that the CFA is a clean text ready for presentation to the riparian states for signature.
The CFA signing / “Entebbe Agreement”:- Ethiopia, Rwanda, Tanzania and Uganda signed the Entebbe Agreement on the day it was opened for signature on the May 14, 2010. Kenya signed on the May 19, 2010; Burundi signed on the February 28, 2011. After signing the Entebbe Agreement the four countries Ethiopia; Rwanda; Tanzania and Uganda have ratified the agreement.
Egypt has become stumbling block not to sign the CFA and yet without reached agreement on water allocation, it considers any reduction of the Nile water quantity level as a national security issue. Egypt did not want to sign the CFA which would have been a spring board for all basin states to reach to an agreement on how to share and manage the Nile water. It has to be clear that Egypt’s rigid position will let the Nile basin state countries to take their own unilateral action, which will ultimately be a nightmare for Egypt.
After four years Egypt’s position not to sign the CFA and the tensions between Cairo and Addis Ababa over the GERD project, the three Eastern Nile countries acceded to a Declaration of Principles on 6 March 2015 that lead them to agree on the guidelines of the filling and operation of the GERD. “Ethiopia as the owner of the GERD will commence first filling of the GERD in parallel with the construction of the Dam in accordance with the principles of equitable and reasonable utilization and the causing of no significant harm as provided on the Declaration of Principles (DoP).” In spite of the deception of Egypt, that is what Ethiopia is doing currently- “first filling of the GERD in parallel with the construction of the Dam”. Basically Egypt’s treachery is to use the DoP as scapegoat to gain time Ethiopia not to capitalize on the CFA and its diplomatic efforts to bring back Egypt and Sudan to the table of negotiation to sign the CFA.
ZAWYA‘s INVESTMENT on 13 May, 2020 reports that Egypt presses on with new capital in the desert amid virus outbreak. Officials see mega-projects as key source of jobs .
By Aidan Lewis and Mahmoud Mourad, Reuters News
CAIRO- While Egypt’s economy has stumbled due to the coronavirus outbreak, construction at a new capital taking shape east of Cairo is continuing at full throttle after a short pause to adjust working practices, officials say.
The level of activity at the desert site – where trucks rumble down newly built roads and cranes swing over unfinished apartment blocks – reflects the new city’s political importance even as the government grapples with the pandemic.
Known as the New Administrative Capital, it is the biggest of a series of mega-projects championed by President Abdel Fattah al-Sisi as a source of growth and jobs.
Soon after coronavirus began to spread, Sisi postponed moving the first civil servants to the new city and moved back the opening of a national museum adjoining the pyramids to next year.
Productivity dipped as companies adapted to health guidelines and some labourers stayed home.
But officials have sought to keep the mega-projects going to protect jobs, and after 10 days of slowdown construction had fully resumed at the new capital with a shift system, said Amr Khattab, spokesman for the Housing Ministry, which along with the military owns the company building the city.
“The proportion of the labour force that is present on site doesn’t exceed 70%, so that the workers don’t get too close,” he said as he showed off the R5 neighbourhood, which includes about 24,000 housing units. “We work less intensively, but we do two shifts.”
Sisi, who publicly quizzes officials responsible for infrastructure projects about timetables and costs, launched the new capital in 2015.
Designed as a high-tech smart city that will house 6.5 million people and relieve congestion in Cairo, it includes government and business districts, a giant park, and a diplomatic quarter as yet unbuilt.
One senior official said last year the cost of the whole project was about $58 billion. While some Egyptians see the new capital as a source of pride, others see it as extravagant and built to benefit a cocooned elite.
‘RUNNING ON TIME’
“We have clear instructions from his excellency the president that the postponement of the opening is not a delay to the project,” said Khattab. “The project is running on time.”
Disinfection and other protective measures were visible at the construction site 45km (30 miles) east of the Nile, though some workers were only ordered to don masks when journalists started filming and others drove by crammed into a minibus. Egypt has confirmed more than 10,000 coronavirus cases, but none at the new capital.
Delays in payments to contractors and to imported supplies were additional risks, said Shams Eldin Youssef, a member of Egypt’s union for construction contractors. Khattab said the government had contractors’ payments in hand.
The Housing Ministry expects to deliver two residential districts by late 2021, while the business district should be finished by early 2022, said Ahmed al-Araby, deputy head of the new capital’s development authority. Private developers and the army are building six other neighbourhoods.
In the government district, which Khattab said was 90% complete, ministry buildings fronted with vertical strips of white stone and darkened glass lead to an open area being planted with palm trees and mini obelisks in front of a domed parliament building.
To one side a large, low-rise presidential palace is under construction.
Sisi has urged people seeking work to head to new cities being built around the country, including the new capital, which Khattab said employs some 250,000 workers.
Critics have questioned the diversion of resources away from existing cities, including Cairo, parts of which are in slow decay.
“The question about how rational this is – whether it makes sense economically, whether it is doable, whether it’s the best course of action – this question is not even asked,” Ezzedine Fishere, an Egyptian writer and senior lecturer at Dartmouth College in the United States, said by phone.
On the other side of Cairo at the new museum next to the Giza pyramids, work has also been continuing at a slower pace.
In mid-April staffing levels sank to about 40%, with plans to recover gradually to 100%, said General Atef Muftah, who oversees the project.
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.”
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.
Solar operations and maintenance company Alectris has completed a project to automate asset management activity at a photovoltaic plant in Jordan.
Alectris implemented the initiative at the 11.5MW facility with MASE, a solar O&M provider in the Middle East.
The partnership between Alectris and MASE aims to automate and standardise asset management activity across new solar projects in the Middle East and North Africa (MENA).
As solar development has increased in the MENA region, O&M and asset management has “struggled to keep pace”, limiting long-term productivity prospects, said Alectris.
The partnership began in 2016 with MASE responsible for field operations and maintenance services on location, while Alectris provided operations and “legacy expertise” in global asset care.
“Working together, both businesses successfully improved the bankability of the project, which was financed by key development finance institutions operating across the region,” said Alectris.
The initiative involved the integration of Alectris’ ACTIS software platform for solar PV plant asset management, with all data monitoring streams gathered under the single platform to “improve oversight” into project activity.
Alectris managing director Vassilis Papaeconomou said: “Solar development in the MENA region offers a significant opportunity to invest in clean energy projects.
“But if this market momentum is to be maintained, it is imperative that operating plants offer security and stability of financial returns. By partnering with MASE, we’ve been jointly able to combine the latest in asset management software with leading experience in services activity.
“This will ensure that project owners and investors benefit from enhanced and efficient performance reporting and operational management, saving time, reducing costs and ensuring the plant delivers at its optimum. As a result, the plant delivered above expectations with an excellent performance ratio and availability close to 100% over the last three years.”
MASE chief executive Tareq Khalifeh added: “Throughout this collaboration, Alectris have proved to be reliable, dedicated and experienced with a wealth of knowledge that has been indispensable when working in an exciting but challenging market.”
Water scarcity is one of the most pressing issues facing the international community today and has gained widespread attention recently due to the rise in global temperatures and the increase in water consumption in a number of countries, especially those in the Middle East. Despite these concerns, many nations remain unprepared to confront water scarcity and continue to fail to make the issue a political priority.
The shortage of water in the Middle East has worsened in the modern era due to high population growth rates, urbanization and the expansion of cities, the low price of water, and inefficient water management. These factors have created an unstable—and extremely dangerous—situation, which will impact the availability of water and risk exacerbating tensions between countries in the region.
The UN Intergovernmental Panel on Climate Change has predicted that the Middle East and North Africa (MENA) will be among the regions most impacted by global warming in the twenty-first century through a heightened risk of drought and flood, which will reduce agricultural productivity, impact food stocks, and harm the most disadvantaged of the population.
About 5 percent of the world’s population lives in the MENA region, which contains only 1 percent of the world’s renewable fresh water. Water was available to citizens at an annual rate of 819.8 cubic meters per capita as recently as a few years ago, which is more than 25 percent less than the global average. Meanwhile, 60 percent of the region’s population lives in areas suffering from surface water shortages, while the global average stands at about 35 percent. Despite the region’s scarcity of water, MENA has the world’s lowest water tariffs and the highest percentage of GDP spent on water subsidies. This has led to irrational use of water resources and over-pumping of nonrenewable groundwater. These are striking examples of both poor water management and the region’s lack of appreciation of the urgency of this issue.
Groundwater, large transboundary rivers, and desalination represent the main sources of water in the region, according to a report from the World Bank. These sources are all either points of dispute between countries in the region, threatened by excessive use, or too costly to develop. As a result, the countries of the Middle East continue to suffer from an acute lack of water security, which is defined as “the availability of an acceptable quantity and quality of water for health, livelihoods, ecosystems and production, coupled with an acceptable level of water-related risks to people, environments and economies.” In other words, achieving water security is not limited to maintaining high water reserves, but also involves taking into account productive and preventive initiatives to deal with water needs and related issues. Countries that underestimate the importance of water security are squandering opportunities for economic, political, and social prosperity for their citizens.
This is because water security is directly linked to food security, energy, and irrigation inefficiency. The lack of available water impacts agricultural land and leads to an excessive dependence on food imports to meet the demands of the population. The countries of the Arab World import between 30 and 35 percent of their food resources. Egypt and China are among the largest importers of wheat in the world, despite the fact that China’s population is ten times larger. The higher the national dependence on basic food imports, the greater the risk associated with turmoil in global markets. In this way, protecting national security and achieving stability becomes difficult if water and food security needs are not addressed.
This is not exaggeration or fear mongering, but rather a warning about one of the most severe threats facing the MENA region—I do not rule out the possibility of this becoming a cause or justification for conflict—and a call for leaders to change policies. Policymakers can reach a solution to this crisis if there is political will.
For example, irrigation efficiency in the MENA region hovers at 50 percent, but if efficiency was raised to 70 percent through changes to policies and practices, huge benefits could be achieved. These include providing fifty billion cubic meters of water to the Middle East annually, which would allow countries to significantly increase grain production and work to find more sustainable ways to conserve water and produce food.
Water scarcity is a possible precursor to regional and potentially international conflict, and preemptive action must be taken to prevent this. Egypt, Ethiopia, and Sudan have been embroiled in a dispute related to water security and are striving to reach a consensual agreement in this regard that is both sustainable and implementable. The Nile River provides Egypt with 75 percent of its water needs, which are set to increase given population growth rates, and issues related to water security in the country are set to worsen. Ethiopia will soon begin the process of filling a lake connected to the Renaissance Dam, which is part of the largest hydroelectric power station in Africa. Egyptian anxiety and frustration at the slow pace of negotiations and the failure of talks thus far are made clear in Egypt’s public statements and talk about “red lines,” as well as in its seeking to call an international mediator to help resolve the dispute.
Another potential regional conflict lies in water disputes between Palestine and Israel, even if the political conflict is resolved, which remains unlikely. Israel controls the head of the Jordan River, which restricts access to water for Palestinians, and aquifers are also under the control of the Israeli government. This leaves Palestinians with a limited amount of water. United Nations Development Programme reports indicate that Palestinians have access to about three hundred million cubic meters of water annually, while Israelis enjoy about two thousand million cubic meters. Such a disproportionate and inequitable allocation of water resources sows the seeds of future conflict.
A sensitive and potentially dangerous issue like water insecurity in the MENA region requires sincere analysis and an honest warning about its possible impacts. If politicians, scientists, and economists work together to address water insecurity rather than ignoring the issue, we can prevent possible conflict over access to water in the region.
The Saudi Entertainment Ventures Company (Seven), established by the Public Investment Fund (PIF) and mandated to invest, develop and operate entertainment destinations in Saudi Arabia, has announced the expansion of new entertainment complexes to prime locations across the kingdom.
RIYADH, These will delight residents and tourists alike and contribute to positioning Saudi Arabia as a hub for entertainment and leisure, said a statement from Seven.
The entertainment complexes will meet the fast-growing tourism sector and contribute to realising the goals outlined in Saudi Vision 2030, it stated.
These projects are being developed in key strategic geographic locations, providing large resident populations with innovative leisure choices that will appeal to all the family. Each complex will feature several entertainment and leisure choices including cinemas, play areas, rides, food and beverage (F&B) outlets, attractions and more, it added.
Chairman Abdullah Al Dawood said Seven is building the entertainment ecosystem of the kingdom, having already opened the first cinema in Saudi Arabia in 35 years.
“We have a clearly structured development plan to build 20 entertainment destinations, 50 cinemas and two large theme parks in prime locations across the kingdom,” stated Al Dawood.
In Jeddah, Seven will develop several entertainment complexes adding to the leisure choices for over four million residents and visitors.
With entertainment complexes coming up by the azure waters of the Red Sea as well as in areas that are popular among residents, the leisure ecosystem of Jeddah will witness a dramatic transformation.
In line with the vision of the leadership to offer more attractions that add to the quality of life of residents and visitors to the holy cities of Makkah and Madinah, Seven will open new entertainment complexes.
Another addition is in Taif, the fifth biggest city in Saudi Arabia and the unofficial ‘summer capital’, where the cool climes draw people to its location on the slopes of the Sarawat Mountains.
Known as the spring by the sea for its popularity among tourists as a scuba-diving destination with white sandy shores, Yanbu is another strategic location. With easy connectivity from Riyadh and Dammam, Al-Kharj will also feature a Seven entertainment complex.
Another area which will feature a project by Seven will be Buraydah, located in the centre of Saudi Arabia, said the statement from Seven.
Abha and Khamis, set in the Asir Mountains and known for equitable all-year weather, will also have new entertainment complexes by Seven, adding to their touristic value.
The port city of Jazan by the Red Sea, serving as a large agricultural heartland of the kingdom, features several ambitious infrastructure projects and is another natural choice for Seven – along with Tabuk, one of the historic sites, rich in rock art, archeological sites, castles and mosques.
Adding to the entertainment ecosystem of the capital city of Riyadh is the development of the entertainment complex at Al Hamra that will serve the densely populated neighbourhoods in the north-east of Riyadh.
At the intersection of King Abdullah Road and East Ring Road, the project will serve over 2.5 million people within a radius of a 30-minute drive. Another exciting upcoming addition to Riyadh is the entertainment complex at Al Nahda, with the Nahda Park Metro Station just a few metres away. Announced last year, work on these projects is progressing as per schedule.
Further adding to the communities of Dammam and Al Khobar, which serve as vital hubs for several key industries and global businesses, Seven is bringing waterfront attractions that will create unforgettable moments of joyful entertainment for everyone. Announced last year, these projects will also offer a range of entertainment choices for residents and visitors.
“We are committed to realising the goals of Saudi Vision 2030 to accelerate the creation of world-class entertainment assets in the Kingdom that support economic diversification, create new jobs, and contribute to socio-economic progress. Our complexes will position the kingdom as an entertainment, culture and tourism hub of the region,” he stated.
“At Seven, we believe in promoting and creating opportunities for the private sector to thrive in the fast-evolving entertainment landscape of the kingdom,” noted Al Dawood.
“We are inviting the most ambitious and creative business partners and vendors to join us in our remarkable step forward to shape the entertainment landscape of the Kingdom,” he added.
Stretched across Bahrain’s north-eastern coastline, Diyar Al Muharraq is among Bahrain’s most anticipated projects, which will be an archipelago of seven man-made islands.
Located off the shores of Muharraq, the kingdom’s historic former capital, construction is well underway on the 12.2km2 masterplan development, which is part of a joint venture with Abu-Dhabi based real estate developer Eagle Hills.
Speaking to Construction Week, Diyar Al Muharraq CEO Ahmed Alammadi said they have been working on the development since 2007 and described the project as a “huge masterplan” for any region, especially “for a small island such as Bahrain”.
“For the whole development, we plan to have four to five phases. In Arabic, Diyar means ‘a small town’ and the reclaimed land is around 10km, which will feature 8 public beaches,” Alammadi tells CW.
“We have started phase 1 on the south island, which is 5.3km. As part of the 5.3km, 1km of this is part of our joint venture with Abu Dhabi’s Eagle Hills to establish Eagle Hills Diyar, which is a local based developer in Bahrain.”
The development will feature facilities including villas worth $1.3m (AED 5m) which comprise a mix of modern and traditional Arabic designs, two reputable hotels that also integrate residences, as well as one of Bahrain’s largest shopping malls.
“Within this joint venture with Eagle Hills, we are developing a 2,000m2 shopping mall, the Vida and Address hotels, as well as two residential towers,” Alammadi added.
“The 2,000m2 shopping mall will be one of the largest shopping malls in Bahrain. Vida hotel and Vida residences, Address hotel and Address residences, as well as the two residential towers, which will be named Marassi Residence, will all be linked to the mall.”
Marassi, which is Arabic for ‘multi-port’, is a mix of residential, commercial properties and extensive retail, entertainment and dining options. It will feature 2km of sandy beaches, as well as a dedicated harbour for cruise liners.
In terms of construction, Alammadi outlined that building works have started on all of the projects.
“The development of all these towers, along with the mall, which are all under construction, except the Marassi residence, have been handed over and should be ready by 2021.”
Another part of Diyar Al Muharraq’s built-up areas is Al Bareh, located on the west side of the masterplan development, comprising seafront villas that have been completely sold out, according to Alammadi.
As well as Al Bareh residential plots, there are two villa types, Al Bahar 1 and Al Bahar 2, which feature the latest smart-home technology and measure between 805m2 and 972m2 respectively.
With views over Diyar Al Muharraq’s main canal, the residences are built around a number of key spaces, including traditional courtyards and swimming pools.
Another milestone for the development was the handover of its Deerat Al Oyoun under the Mazaya scheme.
The Mazaya scheme is part of Bahrain’s Ministry of Housing initiative in collaboration with the private sector for the provision of social housing for citizens who are listed on the Ministry of Housing waiting lists.
Deerat Al Oyoun will comprise more than 3,000 villa units and is located close to the Dragon City retail precinct, as well as schools, healthcare facilities, and entertainment facilities.
Foundations have also been laid for the development’s Souq Al Baraha market amongst the residential communities.
Alammadi said all the preparations to begin work on Souq Al Baraha had been completed, and Almoayyed Contracting Group were appointed to complete the entire project and launch the project by the end of the first quarter of 2021.
“Souq Al Baraha will reflect the unique architectural culture of the Kingdom of Bahrain, in line with our eagerness to establish a Bahraini identity throughout various residential and commercial projects in the city,” Alammadi said.
Diyar Al Muharraq is certainly filling the gaps in Bahrain’s real estate market as part of the country’s economic vision 2030 agenda to build a better life for Bahraini people.
ABU DHABI, 1st February 2020 (WAM) — Making the UAE the first Arab country to deliver safe, clean and peaceful nuclear energy, Barakah is the first major national achievement this year.
Nawah Energy Company, the subsidiary of the Emirates Nuclear Energy Corporation, ENEC, responsible for the operation and maintenance of nuclear energy plants in the UAE, has confirmed that the World Association of Nuclear Operators, WANO, has cleared Unit 1 of Barakah as ready for start-up.
After it’s fully operational, the Barakah Nuclear Energy Plant’s four Units will prevent the release of 21 million tons of harmful carbon emissions every year, equivalent to removing 3.2 million cars from the country’s roads on an annual basis.
Located in the Al Dhafra region of Abu Dhabi Emirate, approximately 53km west-southwest of the city of Ruwais, the plant’s four APR-1400 design nuclear reactors will also supply up to 25 percent of the UAE’s electricity needs in compliance with the highest standards of safety, security and operational performance.
The journey started in April 2008 with the issue of the Policy of the United Arab Emirates on the Evaluation and Potential Development of Peaceful Nuclear Energy.
The Policy focuses on six key principles, which include the UAE’s commitment to complete operational transparency, pursuing the highest standards of non-proliferation and adhering to the highest standards of safety and security.
It also includes working directly with the International Atomic Energy Agency, IAEA, and conforming to its standards when evaluating and establishing a peaceful nuclear energy programme, developing any peaceful domestic nuclear energy capability in partnership with the governments and firms of responsible nations, as well with the assistance of appropriate expert organisations, and lastly approaching any peaceful domestic nuclear energy programme in a manner that best ensures long-term sustainability. The UAE programme has since been successfully developed in line with all of these principles and continues to uphold these going forward.
In 2009, the Korea Electric Power Corporation, KEPCO, which is the largest nuclear power corporation in South Korea, was selected as ENEC’s Prime Contractor for the development of the Barakah Nuclear Energy Plant in the UAE.
KEPCO is one of the leading nuclear energy companies in the world in terms of safety, reliability and efficiency, as classified by WANO.
The UAE selected this company after a comprehensive year-long process conducted by a team of 75 international energy experts. The evaluation focused on several factors, most notably, safety and operational excellence. The APR1400 technology selected has since been certified by the US-based Nuclear Regulatory Commission, NRC, highlighting the design’s strong safety and reliability characteristics.
In 2010, the environmental impact assessment and licensing requests for preliminary works were submitted, and approval was obtained from the UAE’s independent nuclear regulator the Federal Authority for Nuclear Regulation, FANR.
In March 2012, ENEC submitted a construction license application for Barakah’s Units three and four, and in May 2013, the safety nuclear concrete was poured for Unit 2 and the installation of major components had begun at Unit 1.
In October 2016, ENEC and KEPCO signed a Joint Venture agreement for a long-term partnership and cooperation for the UAE Peaceful Nuclear Energy programme.
Through the Joint Venture, Nawah Energy Company was established to operate and maintain the Barakah Nuclear Energy Plant.
ENEC and KEPCO also announced the establishment of Barakah One Company PJSC, another independent subsidiary owned by both companies, which represents the commercial and financial interests of the Barakah project.
Under the JV, KEPCO has an 18 percent stake in Nawah Energy Company and Barakah One Company, while ENEC owns the remaining 82 percent.
In November 2016, Barakah One Company signed the first nuclear energy Power Purchase Agreement with Abu Dhabi Water and Electricity Company, now the Emirates Water and Electricity Company, for the purchase of the electricity to be generated at Barakah.
The agreement establishes the contractual framework between the two entities for the sale of the safe, clean, efficient and reliable electricity produced at Barakah.
In March 2018, construction was completed of Barakah Unit 1, and the first batch of Reactor Operators, ROs, and Senior Reactor Operators, SROs, were certified to operate by FANR in July 2019.
Emirati citizens account for 60 percent of the employees in ENEC and its subsidiary companies, and the total number of reactor operators is 72, including 42 Emirati ROs and SROs.
In the past decade, the UAE has welcomed the IAEA and WANO to carry out more than 40 review and inspection missions.
The success of these missions and FANR’s stringent oversight has resulted in the UAE Peaceful Nuclear Energy programme being recognised as a role model for the development of a new civil nuclear energy programme and a global benchmark for a new-build nuclear energy project.WAM/Hazem Hussein
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