Makkah-Salahuddin Tunnel Project Update p. 4

Issue No. 1. March 2014 Almabani Media Department Publication Almabani General Contractors. All Rights Reserved 2014 A Front-Runner in the Riyadh Metro Project BACS CONSORTIUM GROUNDBREAKING ON THE 27TH OF MARCH p. 3 Almabani Headquarters Almabani Building Hail Street, Ruwais District P.O.Box. No. 2781 Jeddah 21461 Kingdom of Saudi Arabia E-mail: postmaster@almabani.co Telephone: (966-12) 614-7800 Fax: (966-12) 651-9180 www.almabani.co Almabani General Contractors Riyadh Metro Team: All Geared Up, Ready for Action! Makkah-Salahuddin Tunnel Project Update p. 4 CEO s Message: In Pursuit of Success Mr. Joseph K. Daher p. 2 New Project Apron 6 Expansion Project at King Abdulaziz International Airport p. 8 KAU Sports Facilities Project Update p. 7 Almabani Events Janadria Festival BACS Headquarters p. 9 Feature of the Journal Building Construction Illustrated p. 11 Analysis: Kingdom of Saudi Arabia Construction Market p. 10

Editorial CEO s Message: In Pursuit of Success It gives me great pleasure to write the editorial of the first issue of The Almabani Journal, in an exciting yet challenging atmosphere that is being witnessed nowadays in Almabani, and I hope our new publication creates an opportunity for our valued clients, dedicated employees, and website visitors around the world to learn more about our prestigious projects, events, as well as some business analysis, news and more. This publication reflects our commitment to transparency and open communications to all our clients and employees, as well as to the wider public interested in our activities. Almabani s positive reputation across our business influences so many aspects of our company. Thus, it is our duty, all of us in Almabani, to protect our reputation through a decisive policy of integrity, commitment, professionalism and ethical conduct. Almabani s current leading-edge and foremost challenge lies in the Riyadh Metro project. It is a complex and huge project. Together with its partners in the BACS Consortium, Almabani is determined to prove one more time that it is always in pursuit of success. Challenge after another, the manpower of more than 8,000 firmly decisive and dedicated engineers, architects, administration officers and skilled laborers, constitute the driving force of Almabani in its field of expertise, to be more than ever, Your Solid Partner. Joseph K. Daher, CEO 2

BACS Consortium GROUNDBREAKING ON THE 27TH OF MARCH - Riyadh - Almabani Media Department visited the BACS temporary headquarter in Riyadh on the 4th of March 2014, where a regular steering committee was taking place. On the sidelines of the meeting, two brief interviews were held with Mr. Elie Chrabieh and Mr. George Mouawad respectively. A project that will change the whole cityscape of Riyadh, gearing up is at final stages in the Riyadh Metro Project. Work permits for the site are in process, and the conceptual designs are submitted. 1,600 persons (among whom 600 engineers & managerial personnel) are all ready for action, and trial pits excavations for technical investigation on site are ongoing. Moreover, PMV equipment are being ordered; TBM machines are expected to arrive by next December. The groundbreaking ceremony will give a push to BACS and will be an official declaration of the start of work - Elie Chrabieh Traffic Management Plan The traffic management plan for the site is almost ready to be submitted to the client, in which a detailed strategy for diversions and rerouting is proposed. The plan is modeled in the best possible way that doesn t intensify the traffic problem in Riyadh. We are dedicated to this project and to the BACS consortium, and we, as Almabani, are proud to be part of this project - George Mouawad Groundbreaking The 27th of March will be a big day for the Riyadh Metro Project. Olaya Station will host the groundbreaking ceremony for this project, which will be attended by dignitaries, and will serve as an official announcement to start the work. It is worth mentioning that the BACS consortium will be the first Metro Project consortium to call for a groundbreaking, which is being prepared by a specialized team, in order to make it a special ceremony for a special Megaproject, the Riyadh Metro Project. 3

Tunnel Project of Makkah Road Intersection with Salahuddin Al-Ayubi Road at Riyadh City - Riyadh - Client Name: ArRiyadh Development Authority Project Location: Riyadh Project Value: 148,218,170 SR Starting Date: March 2013 Completion Date: August 2015 Project Manager: Luciano El Khoury Scope of Work Relocation and commissioning of affected major utilities; construction of 300-m long double cell tunnel/underpass on Salahuddin road below the Makkah road bridge; provision of two U-Turn bridges north and south of the intersection; and development of the stretch of Salahuddin road. The project entails main traffic diversions and work phasing in order to minimize the effects on traffic flow and at the same time, allow sufficient space and unrestricted access for the excavation and tunnel construction works to proceed. Statistics (as of March 1 st 2014) Days Since Start Remaining Days Total Cumulative Man-hours Total Cumulative Equipment-hours Total Concrete Quantities Total Excavation Quantities Overall Progress of the Project 356 Days 529 Days 3,052,342 h 702,321 h 48,148 m 3 234,341 m 3 10.78% 4

Tunnel Project of Makkah Road Intersection with Salahuddin Al-Ayubi Road at Riyadh City Project Brief The project consists of a reinforced tunnel of 300-m length made of a double cell structure with the central wall made of elliptical columns, with development of stretch of Salahuddin road by an improvement of the road layout, traffic management and the distribution of the traffic to and from service road. The opened sections will be constructed as retaining walls with a common base slab. The project requires major utility relocations of storm water box culvert, sanitary pipe lines, electrical cables, pressure water pipes and telecom cables. Finally, a landscaping scheme will put in evidence the intersection of Makkah road with Salahuddin road by creative furnishing and design of the adjacent sidewalks, shops and landscaping areas. Main Landmarks and Milestones Activity Name MOBILIZATION & SITE PREPARATION PHASE 1 UTILITIES DIVERSION BOX CULVERT SEWER LINE TELECOM & ELECTRICAL POTABLE WATER PHASE 2 TUNNEL CONSTRUCTION TRAFFIC DETOUR SOUTH SIDE NORTH SIDE TESTING & COMMISSIONING BL Project Start 10 March 2013 19 May 2013 3 June 2013 19 May 2013 16 September 2013 27 November 2013 27 January 2014 27 January 2014 10 March 2014 18 March 2014 15 May 2014 BL Project Finish 16 June 2013 10 March 2014 26 February 2014 10 March 2014 09 March 2014 10 March 2014 20 April 2015 10 March 2014 1 February 2015 1 February 2015 22 December 2014 MIDDLE PORTION TUNNEL (EAST & WEST) 22 December 2014 20 April 2015 PHASE 3 FURNISHING 11 December 2014 11 August 2015 5

Tunnel Project of Makkah Road Intersection with Salahuddin Al-Ayubi Road at Riyadh City Main Focus of the Project The major existing utilities that will clash with the tunnel structure on the excavation works will be relocated and commissioned. This constitutes the first phase of the project. The traffic will be channeled to the road center while the utilities in the service road will be relocated as per the submitted approved design. - Storm Water Box Culvert: Relocation of the storm water box culvert is already completed. - Sanitary Line: Relocation works for the sanitary line is in progress (98% complete to date). - Potable Water Line: Relocation works for the potable water line is in progress (92% complete to date) - Telecom lines (STC & Mobily): Relocation works for the telecom lines (STC & Mobily) is in progress (98% complete to date) As soon as the relocation of the existing utilities is completed, rerouting of the traffic flow will be done to allow unrestricted work access to the excavation and construction of the tunnel structure. The traffic rerouting will involve temporary asphalting, barriers and traffic signs. This will comprise the second phase of the project. The last phase will deal with the furnishing aspects which will involve the electrical works, hardscaping and landscaping, wall cladding, street lighting system, irrigation and drainage system, traffic signal and management system, and testing and commissioning. 6

Sports Facility at King Abdulaziz University - Jeddah - Client Name: King Abdulaziz University Project Location: Jeddah Project Value: 195,377,494 SR Starting Date: April 2012 Completion Date: May 2015 Project Manager: Ashraf Awad In an interview with Mr. Ashraf Awad during a visit of Almabani Media Department to the KAU project site, he goes straight to the main challenges that face Almabani team in its work. Starting with the site itself, it is surrounded by existing buildings and facilities that should not be damaged or put out of operation (some buildings are just 2 meters away from the fence!). Therefore, it is not an easy mission at all to work on finalizing the basement which lays right in the middle of the area. On the other hand, Mr. Awad highlights some major changes that have been agreed upon with the client. There s nothing called 'a tough project'. There are complicated projects which through tough thinking and hard work can be achieved successfuly. - Ashraf Awad Space Frame The space frame can be considered among the most complicated features of the project, according to Mr. Awad. The space frame design is already done, as well as the catwalk pedway which will be a beautiful viewpoint covering the playground. The drawings are submitted to the client, along with a 3D model to show them the final product, Mr. Awad adds. Ice Hockey Arena Another feature that is worth to be highlighted is the KAU ice hockey arena, the first of its kind in Saudi Arabia. The ice rink will be installed, along with the electro-mechanical work that is related mainly to the cooling systems, as well as to the mobility of the ice resurfacer (aka Zamboni machine), its elevator, parking maintenance, etc. 7

Expansion of Apron No. 6 and Related Facilities at King Abdulaziz International Airport - Jeddah - Client Name: General Authority of Civil Aviation (GACA) Project Location: King Abdulaziz International Airport (KAIA). Jeddah Project Value: 315,000,000 SR Starting Date: January 2014 Completion Date: January 2017 Project Director: Salim Ghorayeb Project Brief The project consists of the expansion of Apron 6 so that it accommodates 47 aircrafts. Therefore it is a horizontal project, that includes the construction of 5 one-story buildings. According to Mr. Ghorayeb, the project complies firmly with all the new technologies regarding asphalt works, concrete, electromechanical system, airfield lighting, high-mast poles, fuel network, 400 Hz frequency for aircrafts, etc. Even in front of obstacles, we, in Almabani, are used to overcome them successfully. - Salim Ghorayeb Some existing facilities are to be removed or rerouted. We have to act within our experience. Almabani has a vast experience in the airports development field, and our skilled team of engineers is ready to deal with such circumstances, said Mr. Ghorayeb. One of the most challenging issues in this project is to empty the existing buildings that are under phase 2 and phase 3 of the project on time. Those buildings are still operating, and that s why Almabani signed only phase 1 of the project. GACA representatives are studying the options and as soon as they move people working there out of the buildings mentioned above, Almabani will be ready to fulfill its duties. 8

Events Almabani Sponsors Janadria 29 Festival Almabani participated as a main sponsor at Janadria 29 festival in Riyadh. HRH Prince Salman bin Abdulaziz, Crown Prince of Saudi Arabia and Vice Custodian of the Two Holy Mosques, inaugurated the festival on behalf of the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz. Mr. Joseph Daher, Almabani s new chief executive officer, attended the festival and received an honorary gift on Almabani s behalf. Related link: www.janadria.org.sa BACS Headquarters The BACS headquarters ceremony was held in Riyadh on Wednesday 19th of February 2014. The ceremony included a visit to the HQ site, lunch with BACS HQ staff, meeting of BACS representatives with the president of ArRiyadh Development Authority Mr. Ibrahim Al Sultan, and concluded in a dinner gathering hosted by CCC at Faisaliyah Hotel. Related link: www.bacsrmp.com 9

Articles & Analysis Analysis: Saudi Arabia s Contracting Market The total value of awarded contracts clearly indicates that the government has and will continue the trend of placing significant injections into its capital expenditures. Other analysts are not quite as optimistic, with emerging markets specialist Capital Economics arguing that the Kingdom had a disappointing end to 2013. It estimated that GDP fell from 4.5% in Q3 to 4% in Q4, and that over 2013 as a whole it fell to 3.9%, which is the slowest pace of expansion since 2009. This is due mainly to slowdown in the non-oil sector, which dropped by over 6% year-on-year. Assistant economist Jason Tuvey said that Capital Economics remains relatively downbeat on prospects for the Kingdom s non-oil markets, pointing out that although the Kingdom had set another expansionary budget, the proposed increase in public spending is the lowest rate in a decade. Related Link: http://www.constructionweekonline.com / article No. 26698 Riyadh Metro Makes Progress While similarities exist, the Doha and Riyadh metro projects are being delivered using quite different procurement methods. The Doha and Riyadh metro projects have a lot in common. They are both aiming to tackle urban congestion by completing several lines in one initial phase; they are being built at the same time and will cost somewhere in the region of $30bn to complete. What makes the two projects so interesting are their differences rather than the similarities, as they are being delivered using contrasting procurement strategies. Related Link: http://www.meed.com / article No. 3189805 GCC Identified as a Construction Hotspot by CEOs Qatar, the UAE and Saudi Arabia are seen as much more important markets to the global CEOs of construction and engineering firms than they are to bosses of other companies. In a global survey of CEOs undertaken by accountancy firm PwC, Qatar was ranked as one of the most important markets over the next 3-5 years by 12% of CEOs from engineering and construction firms, compared to just 1% of the 1,344 chief executives that it interviewed worldwide. Saudi Arabia was identified as a key market by 10% of industry CEOs, compared to 4% of the wider group, while for the UAE the figures were 8% and 4% respectively. Related Link: http://www.constructionweekonline.com / article No. 26850 10

Feature of the Journal Building Construction Illustrated FRANCIS D.K. CHING is a Professor Emeritus of Architecture at the University of Washington in Seattle. He is the bestselling author and co-author of numerous architecture and design books, including Architectural Graphics; Building Codes Illustrated; Architecture: Form, Space, and Order; A Visual Dictionary of Architecture; A Global History of Architecture; Building Structures Illustrated; and Design Drawing. Mr. Ching s works have been translated into more than eleven languages and are recognized for their clear explanations and graphic presentations of complex material. Author: Francis D.K. Ching Published: 2014, Wiley Contents: 480 pages 11