Italy's Impregilo to build Abu Dhabi waste water tunnel



Impregilo, Italy's largest construction firm, has been awarded an Dh892 million (US$242.8m) contract to build a waste water tunnel in Abu Dhabi, the latest move to upgrade the infrastructure of the capital. The project, part of Abu Dhabi's water conservation plans, will be the biggest of its kind in the UAE. In a statement to the Italian stock exchange, Impregilo said it would build the first 15km of the 40km hydraulic tunnel, which will collect waste water on Abu Dhabi Island and the mainland and carry it to a treatment plant in Al Wathba.

It forms part of the Strategic Tunnel Enhancement Programme (STEP), a component of Abu Dhabi's strategic plan. The programme is being developed by the Abu Dhabi Sewerage Services Company at a cost that is expected to exceed Dh6 billion. Work on the new tunnel will get underway at the end of this year, and will be completed in the second half of 2013. Gulf states are investing oil revenues in large-scale infrastructure programmes to cope with fast-growing populations, and to meet economic diversification plans that have led to the construction of airports, industrial plants and tourism facilities.

CH2M Hill, the international project management and engineering firm, has been appointed as the programme manager. A challenging project technically, it will involve the simultaneous use of three tunnel-boring machines working at depths of 50 metres below the surface of the capital. About 550 million litres of waste water is generated in Abu Dhabi every day, with most of it treated and used for irrigation, according to figures from the Regulation and Supervision Bureau.

Impregilo has been active in Abu Dhabi for more than 20 years through its subsidiary, Fisia Italimpianti. The company has built six desalination plants in the emirate, with the most recent one being in Taweelah, which was completed last year. agiuffrida@thenational.ae

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
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From: Ras Al Khaimah

Age: 50

Profession: Electronic engineer, worked with Etisalat for the past 20 years

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The rules on fostering in the UAE

A foster couple or family must:

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