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Egypt’s options dwindle as Nile talks break down

Egypt’s options dwindle as Nile talks break down

New Delhi Times Bureau on October 23, 2019, produced this article on a more and more obvious fact, that of Egypt’s options dwindle as Nile talks break down. The Nile basin is the greatest in geographical extent of the transboundary water resource and makes it vital that the neighbours to carry on talking regardless. They should sit and agree with some understanding. But we have this situation instead, all as described below.


The latest breakdown in talks with Ethiopia over its construction of a massive upstream Nile dam has left Egypt with dwindling options as it seeks to protect the main source of fresh water for its large and growing population.

Talks collapsed earlier this month over the construction of the $5 billion Grand Ethiopian Renaissance Dam, which is around 70% complete and promises to provide much-needed electricity to Ethiopia’s 100 million people.

But Egypt, with a population of around the same size, fears that the process of filling the reservoir behind the dam could slice into its share of the river, with catastrophic consequences. Pro-government media have cast it as a national security threat that could warrant military action.

Speaking at the U.N. last month, Egyptian President Abdel-Fattah el-Sissi said he would “never” allow Ethiopia to impose a “de facto situation” by filling the dam without an agreement.

“While we acknowledge Ethiopia’s right to development, the water of the Nile is a question of life, a matter of existence to Egypt,” he said.

Ethiopian President Sahle-Work Zewude, also speaking at the U.N. General Assembly, said her country believes “the use of the river should be (decided) according to international law and fair and equitable use of natural resources.”

Egypt has been holding talks for years with Ethiopia and Sudan, upstream countries that have long complained about Cairo’s overwhelming share of the river, which is enshrined in treaties dating back to the British colonial era. Those talks came to an acrimonious halt earlier this month, the third time they have broken down since 2014.

“We are fed up with Ethiopian procrastination. We will not spend our lifetime in useless talks,” an Egyptian official told The Associated Press. “All options are on the table, but we prefer dialogue and political means.”

Egypt has reached out to the United States, Russia, China and Europe, apparently hoping to reach a better deal through international mediation. The White House said earlier this month it supports talks to reach a sustainable agreement while “respecting each other’s Nile water equities.”

Egypt said it has accepted an invitation from the U.S. to meet in Washington with the foreign ministers of Ethiopia and Sudan to break the deadlock.

Mohamed el-Molla, an Egyptian Foreign Ministry official, said Cairo would take the dispute to the U.N. Security Council if the Ethiopians refuse international mediation.

That has angered Ethiopia, which wants to resolve the dispute through the tripartite talks.

An Ethiopian official said the packages offered by Cairo so far “were deliberately prepared to be unacceptable for Ethiopia.”

“Now they are saying Ethiopia has rejected the offer, and calling for a third-party intervention,” the official added. Both the Ethiopian and the Egyptian official spoke on condition of anonymity because they were not authorized to discuss the talks with the media.

The main dispute is centered on the filling of the dam’s 74-billion-cubic-meter reservoir. Ethiopia wants to fill it as soon as possible so it can generate over 6,400 Megawatts, a massive boost to the current production of 4,000 Megawatts.

That has the potential to sharply reduce the flow of the Blue Nile, the main tributary to the river, which is fed by annual rainfall in the Ethiopian highlands. If the filling takes place during one of the region’s periodic droughts, its downstream impact could be even more severe.

Egypt has proposed no less than seven years for filling the reservoir, and for Ethiopia to adjust the pace according to rainfall, said an Egyptian Irrigation Ministry official who is a member of its negotiation team. The official also was not authorized to discuss the talks publicly and so spoke on condition of anonymity.

The Nile supplies more than 90% of Egypt’s freshwater. Egyptians already have one of the lowest per capita shares of water in the world, at around 570 cubic meters per year, compared to a global average of 1,000. Ethiopians, however, have an average of 125 cubic meters per year.

Egypt wants to guarantee a minimum annual release of 40 billion cubic meters of water from the Blue Nile. The irrigation official said anything less could affect Egypt’s own massive Aswan High Dam, with dire economic consequences.

“It could put millions of farmers out of work. We might lose more than one million jobs and $1.8 billion annually, as well as $300 million worth of electricity,” he said.

The official said Ethiopia has agreed to guarantee just 31 billion cubic meters.

El-Sissi is set to meet with Ethiopia’s Prime Minister Abiy Ahmed, winner of this year’s Nobel Peace Prize, on Wednesday in the Russian city of Sochi, on the sidelines of a Russia-Africa summit. They may be able to revive talks, but the stakes get higher as the dam nears completion.

Ahmed told Ethiopian lawmakers Tuesday that negotiations are the best chance for resolving the Nile deadlock and that going to war is “not in the best interest of all of us.”

“Some say things about use of force,” he said, referring to Egypt. “It should be underlined that no force could stop Ethiopia from building a dam. If there is a need to go to war, we could get millions readied. If some could fire a missile, others could use bombs.”

Late on Tuesday, Egypt said in a statement it was “shocked” and “surprised” by Ahmed’s remarks, which came just days after he was awarded the peace prize.

The statement said it was inappropriate to talk about military options in dealing with the dispute and that it thought the peace prize would have prompted Ethiopia to demonstrate political will, flexibility and “goodwill toward a binding and comprehensive legal agreement that takes into account the interests of the three countries.”

Ethiopia hopes to finish the much-delayed project by 2023. The dam’s manager, Kifle Horro, said the project is now 68.5% complete and preparations are underway to finalize power generation from two turbines by next year.

The International Crisis Group, a Brussels-based think tank, warned earlier this year that the “risk of future clashes could be severe if the parties do not also reach agreement on a longer-term basin-wide river management framework.”

In recent weeks there have been calls by some commentators in Egypt’s pro-government media to resort to force.

Abdallah el-Senawy, a prominent columnist for the daily newspaper el-Shorouk, said the only alternatives were internationalizing the dispute or taking military action.

“Egypt is not a small county,” he wrote in a Sunday column. “If all diplomatic and legal options fail, a military intervention might be obligatory.”

Anwar el-Hawary, the former editor of the Al-Masry Al-Youm newspaper, compared the dispute to the 1973 war with Israel, in which Egypt launched a surprise attack into the Sinai Peninsula.

“If we fought to liberate Sinai, it is logical to fight to liberate the water,” he wrote on Facebook. “The danger is the same in the two cases. War is the last response.”

Credit: Associated Press (AP) | Photo Credit : (AP)

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MENA construction boom with Saudi leading and Egypt, Ethiopia shining

MENA construction boom with Saudi leading and Egypt, Ethiopia shining

Seban Scaria, ZAWYA of October 3rd, 2019 reported that MENA construction boom with Saudi leading and Egypt, Ethiopia shining in Africa but according to GlobalData, construction in the same region has been relatively sluggish and is forecast to grow at 3.3% in 2019, with the pace of growth then accelerating throughout the forecast period to reach 4.9% by 2022 – 2023.  Whilst awaiting some more clarifications, here are Seban Scaria’s thoughts.

MENA construction boom: Saudi leads market, Egypt, Ethiopia shine in Africa

Significance of construction in Saudi Arabia is accentuated by key transport and mobility schemes

An Asian labourer looks on as he works at the construction site of a building in Riyadh, Saudi Arabia. Image for illustrative purposes.

An Asian labourer looks on as he works at the construction site of a building in Riyadh, Saudi Arabia. Image for illustrative purposes.

REUTERS/Faisal Al Nasser

Construction activity in the Middle East and North Africa (MENA) region has been relatively sluggish and is forecast to grow at 3.3 percent in 2019.

However, after a lacklustre 2019, construction growth in the region is forecasted to steadily improve in the next four years, to reach 4.9 percent by 2022-2023, data and analytics company GlobalData said in its Global Construction Outlook report.

Government revenues in the Gulf countries have been affected due to low oil prices. Assuming oil prices stay relatively high, large-scale investment in infrastructure projects – mostly related to transport – will be a key driving force behind the growth in the region, the report said.

Saudi Arabia remains the largest regional construction market in the Middle East, despite a contraction in construction in the kingdom in recent years. Construction output is forecast to recover in 2019, growing by 2.6 percent, before posting average growth of 3.8 percent in 2020-2023, the report said.

Yasmine Ghozzi, Economist at GlobalData, said: “The construction market started on a positive note in Saudi Arabia in 2019, growing by 1.3 percent year-on-year in Q1 in real value-add terms, attributed to rising oil prices and a surge in the non-crude sector.”

“The significance of construction in Saudi Arabia is accentuated by key transport and mobility schemes such as Riyadh Metro; social infrastructure developments such as the Ministry of Housing’s Sakani programme; and energy megaprojects such as the state-owned Aramco’s Berri and Marjan oil fields,” she added.

The report pointed out that construction boom in Qatar, that began almost a decade ago, seems to have run its course as major projects are largely completed.  Construction output decreased by 1.2 percent year-on-year in Q1 2019, a sharp deceleration after years of rapid expansion.

“The Qatari construction sector will slow relative to previous years, in general, but the turnaround will come from the North Field Expansion (NFE) project where Qatar Petroleum announced its aim to increase Qatar’s LNG production from current 77mtpa to 110mtpa within five years and has assigned Qatargas as the operator of the project. Meanwhile, work on the Hamad International Airport and New Doha Port will support growth in the airport and port sectors,” Ghozzi said.

However, one of the region’s brightest spots will be Egypt, where GlobalData predicts that construction will expand by an annual average of 11.3 percent between 2019 and 2023.

“Egypt’s economy is forecast to expand at a relatively rapid rate over the next two years, driven by sustained growth in natural gas production and a recovery in tourism. Delivering an ambitious renewable energy program is a priority for the government. Construction activity is also being driven by Cairo’s urban development program, which could involve building 23 new cities,” Ghozzi said.

The pace of growth in sub-Saharan Africa will be particularly strong, averaging 6 percent a year in 2019–2023, Global data said.

According to the report, construction activity in Nigeria will accelerate steadily, supported by government efforts to revitalise the economy by focusing on developing the country’s infrastructure.

But Ethiopia will be Africa’s star performer, with its construction industry continuing to improve in line with the country’s economic expansion, but the pace of expansion will ease back to single-digits, it said.

(Writing by Seban Scaria seban.scaria@refinitiv.com, editing by Anoop Menon)

Turkey starts filling huge Tigris river dam

Turkey starts filling huge Tigris river dam

Reuters’ ENVIRONMENT reported on August 2, 2019, that Turkey starts filling huge Tigris river dam, activists say in an article by Ali Kucukgocmen.

ISTANBUL (Reuters) – Turkey has started filling a huge hydroelectric dam on the Tigris river, a lawmaker and activists said, despite protests that it will displace thousands of people and risks creating water shortages downstream in Iraq.

FILE PHOTO: A general view of the ancient town of Hasankeyf by the Tigris river, which will be significantly submerged by the Ilisu dam being constructed, in southeastern Turkey, June 1, 2019. REUTERS/Umit Bektas

Citing satellite images, they said that water was starting to build up behind the Ilisu dam, a project that has been decades in the making and which aims to generate 1,200 megawatts of electricity for southeast Turkey.

Turkish officials have not commented on work at the dam. Turkey’s State Hydraulic Works (DSI), which oversees dam projects, referred questions to the Presidency, and the Agriculture and Forestry Ministry was not available to comment.

However, President Tayyip Erdogan said earlier this year that Turkey would start filling the Ilisu dam in June, a year after it briefly held backwater before backing down following complaints from Iraq about reduced water flows in mid-summer.

The dam, which first gained Turkish government approval in 1997, is a key part of Turkey’s Southeastern Anatolia Project, designed to improve its poorest and least developed region.

FILE PHOTO: The Tigris river flows through the ancient town of Hasankeyf, which will be significantly submerged by the Ilisu dam being constructed, in southeastern Turkey, August 26, 2018. REUTERS/Sertac Kayar

Iraq says the dam will create water shortages by reducing flows in one of two rivers which the country depends on for much of its supplies. Around 70% of Iraq’s water supplies flow from neighboring countries, especially via the Tigris and Euphrates rivers which run through Turkey.

Satellite images from the past two weeks show the dam has started holding water, said Necdet Ipekyuz, a lawmaker from Turkey’s pro-Kurdish Peoples’ Democratic Party (HDP). He said a road in the area has already been submerged.

“They are taking steps slowly to decrease the reactions to water being held. That is why they are not informing the public,” he said, adding that several HDP lawmakers tried to visit the dam in July but were prevented by police.

Environmental campaigners have unsuccessfully challenged the dam project at the European Court of Human Rights on the grounds it would damage the country’s cultural heritage.

SUBMERGED TOWN

The rising waters of the dam are also expected to eventually submerge the 12,000-year-old town of Hasankeyf. Residents are being moved from the ancient town to a “New Hasankeyf” nearby, while historic artefacts have also been transported out of the area.

A group of NGOs, lawmakers and labor unions shared satellite images of the dam showing the increase in water levels between July 19-29.

“The current situation is strengthening the idea that the valves have been closed permanently,” the group, known as Hasankeyf Coordination, said in a statement.

“Because the dam lake is growing every day, the people who live in these areas are worried. They cannot know when the water will reach their residential or agricultural areas.”

The Iraqi government said in a statement that Turkish and Iraqi officials had discussed the water resources of the two rivers in Baghdad on Wednesday to see how they could “serve the interests of both countries”.

Turkey proposed setting up a joint research center in Baghdad for water management and to work together on some agriculture plantations in Iraq, as well as projects for development of drinking water infrastructure. FILE PHOTO: The Tigris river flows through the ancient town of Hasankeyf, which will be significantly submerged by the Ilisu dam being constructed, in southeastern Turkey, August 26, 2018. REUTERS/Sertac Kayar

The European Court of Human Rights in February dismissed the case brought by environmental campaigners to block the dam project, saying heritage protection is the responsibility of Turkish authorities and it had no jurisdiction.

The government needs to make an announcement, even if the dam were being filled for a trial run, said HDP’s Ipekyuz. “They are trying to tie a belt around the Tigris river’s neck and suffocate it,” he said.

Additional reporting by John Davison and Ahmed Aboulenein in Baghdad; Editing by Dominic Evans and Susan Fenton

Our Standards: The Thomson Reuters Trust Principles.

Solar panels all over the Sahara desert?

Solar panels all over the Sahara desert?

– Imagine newsletter #2

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Solar panels all over the Sahara desert? Asked Will de Freitas, Environment + Energy Editor, The Conversation, starting with:

You may have seen a variant of this meme before. A map of North Africa is shown, with a surprisingly small box somewhere in Libya or Algeria shaded in. An area of the Sahara this size, the caption will say, could power the entire world through solar energy:

Over the years various different schemes have been proposed for making this idea a reality. Though a company called Desertec caused a splash with some bold ideas a decade ago, it collapsed in 2014 and none of the other proposals to export serious amounts of electricity from the Sahara to Europe and beyond are anywhere close to being realised.

It’s still hard to store and transport that much electricity from such a remote place, for one thing, while those people who do live in the Sahara may object to their homeland being transformed into a solar superpower. In any case, turning one particular region into a global energy hub risks all sorts of geopolitical problems.

The Imagine newsletter aims to tackle these big “what if” questions, so we asked a number of academics to weigh in on the challenges of exploiting the cheapest form of electricity from perhaps the cheapest and best spot on Earth.


Sahara has huge energy potential

Amin Al-Habaibeh is an engineer at Nottingham Trent University who has researched various options for Saharan solar.


Read more: Should we turn the Sahara Desert into a huge solar farm?


He points to the sheer size and amount of sunshine the Sahara desert receives:

  • It’s larger than Brazil and slightly smaller than the US.
  • If every drop of sunshine that hits the Sahara was converted into energy, the desert would produce enough electricity over any given period to power Europe 7,000 times over.
Solar panels all over the Sahara desert?
Global horizontal irradiation, a measure of how much solar power is received per year. Global Solar Atlas/World Bank

So even a small chunk of the desert could indeed power much of the world, in theory. But how would this be achieved?

Al-Habaibeh points to two main technologies. Both have their pros and cons.

  • Concentrated solar power uses lenses or mirrors to focus the sun’s energy in one spot, which becomes incredibly hot. This heat then generates electricity through a steam turbine.
  • In this image the tower in the middle is the “receiver” which then feeds heat to a generator:
Solar panels all over the Sahara desert?
Aerial view of a large concentrated solar power plant. Novikov Aleksey/Shutterstock
  • Some systems store the heat in the form of molten salt. This means they can release energy overnight, when the sun isn’t shining, providing a 24h supply of electricity.
  • Concentrated solar power is very efficient in hot, dry environments, but the steam generators use lots of water.
  • Then there are regular photovoltaic solar panels. These are much more flexible and easier to set up, but less efficient in the very hottest weather.

Overall, Al-Habaibeh is positive:

Just a small portion of the Sahara could produce as much energy as the entire continent of Africa does at present. As solar technology improves, things will only get cheaper and more efficient. The Sahara may be inhospitable for most plants and animals, but it could bring sustainable energy to life across North Africa – and beyond.


Solar panels could have remarkable impact on the desert though

Installing mass amounts of solar panels in the Sahara could also have a remarkable impact on the desert itself.

The Sahara hasn’t always been dry and sandy. Indeed, archaeologists have found traces of human societies in the middle of the desert, along with prehistoric cave paintings of Savannah animals. Along with climate records, this suggests that just a few thousand years ago the “desert” was far greener than today.

Solar panels all over the Sahara desert?
Long-extinct elephants still remain carved into rocks in southern Algeria. Dmitry Pichugin / shutterstock

Alona Armstrong, an environmental science lecturer at Lancaster University, wrote about a fascinating study in 2018 that suggested massive renewable energy farms could make the Sahara green again.


Read more: Massive solar and wind farms could bring vegetation back to the Sahara


A team of scientists imagined building truly vast solar and wind farms, far larger than most countries, and simulated the impact they would have on the desert around them. They found that:

  • Solar panels reflect less heat back into space compared to sand.
  • This means the surface would warm, causing air to rise and form clouds.
  • This would mean more rainfall, especially in the Sahel region at the southern edge of the desert.
  • And more vegetation would grow, which would absorb more heat, drive more precipitation, and so on
  • It’s an example of a climate feedback.
Solar panels all over the Sahara desert?
Large-scale wind and solar would mean more new rain in some areas than others. Eviatar Bach, CC BY-SA

This may be a nice side effect of a huge Saharan solar plant, but it doesn’t necessarily mean it should happen. As Armstrong points out:

These areas may be sparsely populated but people do live there, their livelihoods are there, and the landscapes are of cultural value to them. Can the land really be “grabbed” to supply energy to Europe and the Middle East?


Solar panels all over the Sahara desert?
Ghardaia, Algeria. Even in the middle of the Sahara, there are settlements. Sergey-73/Shutterstock

Is this climate colonialism?

If we want to deploy millions of solar panels in the Sahara, then who is “we”? Who pays for it, who runs it and, crucially, who gets the cheap electricity?

This is what worries Olúfẹ́mi Táíwò, a philosopher who researches climate justice at Georgetown University. He mentions Saharan solar power as one of the possible policies involved in a Green New Deal, a wide-ranging plan to enact a “green transition” over the next decade.


Read more: How a Green New Deal could exploit developing countries


He points out that exports of solar power could: “Exacerbate what scholars like sociologist Doreen Martinez call climate colonialism – the domination of less powerful countries and peoples through initiatives meant to slow the pace of global warming.”

  • While Africa may have abundant energy resources, the continent is also home to the people who are the least connected to the grid.
  • Solar exports risk “bolstering European energy security … while millions of sub-Saharan Africans have no energy of their own.”

What if we’re looking at the wrong desert?

All of this will be moot if Saharan solar never actually happens. And Denes Csala, a lecturer in energy systems at Lancaster University, is sceptical.


Read more: Why the new ‘solar superpowers’ will probably be petro-states in the Gulf


It’s true that much of the world’s best solar resources are found in the desert. Here’s a graph from his PhD research which shows how Saharan nations dominate:

Solar panels all over the Sahara desert?
The sunniest tenth of the world is mostly Saharan countries … and Saudi Arabia. Denes Csala / NREL, Author provided

But Denes says that we’re looking at the wrong desert. In fact, the countries of the Arabian peninsula are better placed to exploit the sun. He argues several factors work in favour of Saudi Arabia, the UAE and co:

  • They have a history of exporting oil.
  • In the energy market, worries over security of supply means countries tend to do business with the same partners over time.
  • Ports, pipes and other infrastructure that have been built to ship oil and gas could be repurposed to ship solar energy as hydrogen.

[Energy security] would be the Achilles heel of a northern African energy project: the connections to Europe would likely be the continent’s single most important critical infrastructure and, considering the stability of the region, it is unlikely that European countries would take on such a risk.

It would be fair to say academics have mixed views about the idea of mass Saharan solar. While the energy potential is obvious, and most of the necessary technology already exists, in the long run it may prove too complicated politically.


Still think this is all fantasy?

Maybe Europeans should look closer to home. The UK Planning Inspectorate is currently examining the Cleve Hill solar farm proposal in Kent, which would involve installing nearly a million solar panels across a marshland site the size of 600 football pitches. To protect against flooding, the panels would be mounted several metres in the air. If built, despite opposition from locals and conservationists, Cleve Hill would be by far the country’s largest solar farm and about the same size as Europe’s largest, near Bordeaux.

Alastair Buckley from the University of Sheffield points out the project would be groundbreaking as, unlike other ventures of this kind, it doesn’t rely on subsidies. With solar power getting ever cheaper, Cleve Hill – if it happens – seems to mark the moment when solar may start paying for itself – even far from the world’s deserts.

Further reading


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Imagine is a newsletter from The Conversation that presents a vision of a world acting on climate change. Drawing on the collective wisdom of academics in fields from anthropology and zoology to technology and psychology, it investigates the many ways life on Earth could be made fairer and more fulfilling by taking radical action on climate change. You are currently reading the web version of the newsletter.

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This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Egypt’s giant solar park operational in 2019

Egypt’s giant solar park operational in 2019

Reuters Sustainable Business May 5, 2019, reported that Egypt expects giant solar park to be fully operational in 2019. This piece of news went viral throughout the MENA region. Would Egypt’s giant solar park operational in 2019 be a new trend?

Image result for Egypt's giant solar park operational in 2019
Boats sail in the Nile river in Aswan on the road to the touristic Nubia, south of Egypt, October 1, 2015. REUTERS/Mohamed Abd El Ghany.

CAIRO (Reuters) – Egypt expects the 1.6-gigawatt solar park it is building in the south of the country to be operating at full capacity in 2019, the investment ministry said in a statement on Sunday.

The $2 billion project, set to be the world’s largest solar installation, has been partly funded by the World Bank, which invested $653 million through the International Finance Corporation.

Some parts of the park are already operating on a small scale, while other areas are still undergoing testing.

Egypt aims to meet 20 per cent of its energy needs from renewable sources by 2022 and up to 40 per cent by 2035. Renewable energy currently covers only about 3 per cent of the country’s needs.

“Egypt’s energy sector reforms have opened a wider door for private sector investments,” World Bank President David Malpass said during his visit to the site alongside Egypt’s Investment Minister Sahar Nasr.

Image result for Egypt’s Investment Minister Sahar Nasr
Egypt’s Investment Minister Sahar Nasr

Egypt is on a drive to lure back investors who fled following the 2011 uprising with a slew of economic reforms and incentives the government hopes will draw fresh capital and kickstart growth.

Most of the foreign direct investment Egypt attracts goes toward its energy sector.

Reporting by Ehab Farouk; Writing by Nadine Awadalla; Editing by Yousef Saba and Jan Harvey.

Further reading on this project can be found here; it is the World’s Largest Solar Park Project. Alcazar Energy’s 64 MW Solar PV plant (Picture above) is the first of thirty projects in the Benban Solar Park to complete construction and enter commercial operation. Benban will be the largest solar power installation in the world with up to 1.5 GW capacity located in Aswan, Egypt.

Construction digitisation to  weather difficult times in the MENA

Construction digitisation to weather difficult times in the MENA

A MEConstructionNews ANALYSIS by Andrew Skudder, CEO. CCS, Guest Author, warning construction firms of the risks of not digitising operations, posted on April 25, 2019, is republished here for its obvious benefits to the MENA’s development.


Construction industry should look to proven tech to weather difficult times

With the Middle East construction sector under growing pressure as a result of a tightening economy, construction companies should be looking at ways to streamline their business processes, improve cash flow management and tighten risk management. Those that sharpen internal processes and systems today will be best positioned for an upswing in government and private sector investment in the years to come.

The sector faces numerous challenges – challenging economic growth, shrinking margins, skills shortages, rising resource and labour costs – which means it’s under pressure to start innovating.

Investment in tech is behind the curve

The challenges the industry faces are compounded by the fact that many construction groups have not digitised operations such as cost-consulting. This means they lack visibility into – and control over – the many variables, changes, people and equipment involved in any construction project.

Middle Eastern construction companies should be looking for ways to use technology to drive higher productivity, achieve cost-savings and improve project management to weather a tumultuous time for the industry. However, the lean years of late, have seen IT spending in the construction industry stagnate, despite the accelerating pace of innovation around the world.

For example, adoption of wearables, 3D printing, driverless heavy vehicles, drones and building information modelling is rising in the global construction sector. To take full advantage of these advanced technologies, many local construction companies will first need to modernise their core back-office systems.

They should be looking towards tried and tested solutions for estimating, project control, enterprise accounting and operational costing. These solutions will enable them to drive down the costs of maintaining legacy applications, help them to become more agile and give them clearer real-time visibility into business performance.

Breaking down silos

Construction performance and progress cannot be monitored on financial data alone; engineering information is just as critical. Engineering control includes generating and managing allowable and actual quantities of resources, wastages, manhours of labour, production of equipment and time for construction activities.

Without digitisation, an organisation has no clear indication of the status of the contract because it doesn’t have real-time visibility into these factors. Today’s business solutions can break down the silos, enabling estimators and accountants to produce real time-reporting, and yet continue to work in the language that is meaningful to them.

Integrated back-office systems spanning procurement, project control, cost estimation, sub-contractor management and accounting give construction companies one source and view of the truth, enabling them to manage an entire project with real-time visibility into costs and performance.

Using this data can help construction firms make better strategic and operational decisions. Data-driven insights can enable them to better manage cashflow and project risks, so they can better predict and mitigate payment delays, rising costs and other challenges. It can also help companies to drive higher levels of profitability through better project planning.

Building a foundation for the future

Looking to the future, a robust business solution is also a foundation upon which construction companies can layer drones, robots, Internet of Things (IoT) sensors, artificial intelligence (AI) and other advanced digital technologies. Such solutions enable construction companies to manage and analyse big data produced by sensors, devices and workers so they can drive productivity and innovation – AI, for example, can help them rapidly process the data to find key insights.

Construction companies should embrace digital transformation to drive higher productivity, improve efficiency and gain a competitive advantage. Transforming their core business with a proven solution will help them prepare for the future, with a possibility that infrastructure spending will show signs of life again in the near future. Now is the time to lay the foundation for the next wave of growth.