philippine construction & design sept.-oct. 2014

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September - October 2014 Philippine Construcon&Design | 1 THE MAGAZINE FOR CONSTRUCTION PROFESSIONALS PHILIPPINE VOL. 2. NO. 15 SEPTEMBER - OCTOBER 2014 SM North still ‘best location’ for common LRT-MRT station David M.Consunji How to Develop Marketing Strategies for Construction Services The Benefits of Construction Leasing to Maximise Growth Builder par excellence

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The new issue of Philippine Construction & Design Magazine September-October 2014 issue No. 15 is out... enjoy!

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Page 1: Philippine Construction & Design Sept.-Oct. 2014

September - October 2014 Philippine Construction&Design | 1

THE MAGAZINE FOR CONSTRUCTION PROFESSIONALS

PHILIPPINE

VOL. 2. NO. 15 September - OctOber 2014

SM North still ‘best location’ for common

LRT-MRT station

David M.Consunji

How to Develop Marketing Strategies for

Construction Services

The Benefits of Construction

Leasing to Maximise Growth

Builder par excellence

Page 2: Philippine Construction & Design Sept.-Oct. 2014

2 | Philippine Construction&Design September - October 2014

Page 3: Philippine Construction & Design Sept.-Oct. 2014

September - October 2014 Philippine Construction&Design | 1

contentsIssue No. 15 | 2014

CONSTRUCTION NEWS

News Roundup

Regional Report

International Reports

Electric vehicle sector seeks P22-B loan facility ......................................................... 05

Calendar of EventsSeptember 2014 ................................................................. 03

Price MovementConstruction Materials Wholesale Price Index in the National Capital Region (2000=100) : July 2014 ................................................ 40

Products & Technology

FEATURESCover Story

David M. Consunji: Builder par excellence ...... 26

Marketing Management

Finance Management

Innovative Tiling Technology .............................. 38

How to Develop Marketing Strategies for Construction Services ........................................... . 30

The Benefits of Construction Leasing to Maximise Growth .............................................................................. 32

22

Cambodia’s Russian Boulevardland prices rising ............................................................... 12

Construction of seven star hotel in North Korea grinds to a halt ........................................ 19

5

15

26

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Page 4: Philippine Construction & Design Sept.-Oct. 2014

2 | Philippine Construction&Design September - October 2014

The Philippine Construction & Design is an e-magazine published monthly by Saiber Media Inc., with business address at 121 Splendor Hills Aznar Road, Pardo Cebu City Official website is www.philippineconstructionanddesign.com., E-mail address: [email protected]; [email protected]

Copyright ©2014 All rights reserved.

Publisher : William L. Ogan

Executive Publisher : Josette Adiong

Editorial

Editor in Chief : William Ogan

Contributing Editor : Ed Velasco Choy Gaerlan

Ma. Nenevetch Reyes

Rizal Raoul Reyes

Graphic Artist : Anabelle Flores

For your editorial, online subscription and advertising placement, please contact Tel. No.+(63 02) 463-4352 +(63 02) 463-4347 Please send your comments and suggestion’s to [email protected]

on the cover

BEXASIA 2014 September 1 - 3, 2014Location: Sands Expo & Convention Center, Marina Bay Sands, Sin gapore

BEX Asia is Southeast Asia’s premier business platform for the sustainable built environment. It provides a one-stop sourcing solution for cutting-edge technologies in building design and architecture for the future of greener communities. It is an event that enhances your insights and competitive edge into the world of Build Green. BEX Asia brings together skilled professionals, key industry practitioners, specifiers and buyers from the region, to network and create business opportunities to build greener communities for a greener future.

IDES SOUTh RUSSIASeptember 2 – 4, 2014Venue: International Infrastructure Development ExhibitionLocation: Krasnodar, Russia

The IDES exhibition is a unique industry communication project, which covers energy sector, resource-saving, housing and communal services, networks and communications, ecology and brings together professionals.

The IDES exhibition is a global industry event at which professionals can learn about the latest technological developments and completed projects, and take part in panel discussions on current issues.

GREEN BUILD ASIASeptember 17-19, 2014Location: Malaysia, Kuala LumpurThe world of sustainable building, design and construction will once again converge in Kuala Lumpur for the GREENBUILD ASIA 2014 Exhibition & Conference – Southeast Asia’s Biggest Event on Sustainable Building, Design and Construction the Putra World Trade Centre.

GREEN BUILDING AND RETROFITS EXpO ASIASeptember 18 – 20, 2014 Impact Exhibition & Convention Center, Bangkok, ThailandGreen Building And Retrofits Expo Asia is the perfect international exhibition mainly on future building maintenance as well as different aspects of asset management. The first edition was a massive success with more than 4869 visitors across 30 countries and this time organizers are expecting greater figures. Green Building And Retrofits Expo Asia will mainly showcase service, technology, equipments as well as better solutions which mainly engulf the domain of property management and maintenance and at the same time promotes the concept of green building.

CONCRETE EXpO ASIASeptember 18 – 20, 2014 Venue: Impact Exhibition & Convention Center Location: Bangkok, ThailandConcrete Expo Asia is a 3 day event that showcases products like concrete machinery, equipments, technology and products and more etc. in the Building Construction industry.

CONSTRUCTION MATERIALS EXpO ASIA 2014

THE MAGAZINE FOR CONSTRUCTION PROFESSIONALS

PHILIPPINE

VOL. 2. No. 14 september 2014

SM North still ‘best location’ for common

LRT-MRT station

David M.Consunji

How to Develop Marketing Strategies for

Construction Services

How to Develop Marketing

Strategies for Construction

Services

Builder par excellence

Page 5: Philippine Construction & Design Sept.-Oct. 2014

September - October 2014 Philippine Construction&Design | 3

CALENDAR OF EVENTSSeptember 18 - 20, 2014 Location: Hall 7, Impact Muang Thong Thani, Bangkok Thailand The annual industry gathering and market place for suppliers to showcase the latest construction materials. Functional materials, stone and steel structures are exhibited to targeted key decision makers of the construction industry.

BUILDING MAINTENANCE & ASSET MANAGEMENT EXpO ASIASeptember 18 - 20, 2014 Location: Bangkok, ThailandBuilding Maintenance & Asset Management Expo Asia (BMAM Expo Asia) is the international exhibition and conference dedicated exclusively on building maintenance and asset management industry in Asia. It provides you with a personal way to do business and meeting with so many targeted buyers in one place at one time.

CONSTRUCTION AND BUILDING TEChNOLOGy WEEkSeptember 18 – 20, 2014 Location: Impact Exhibition & Convention Center, Bangkok, ThailandConstruction And Building Techonology Week is a 3 day event showcasing products and services related to construction, building, retrofitting, facility management and maintenance, green building technology, landscaping, cleaning technology and professional lighting and audio system etc. in the Building Construction industry.

INDOBUILDTECh EXpO MAkASSARSeptember 24 - 28, 2014 Location: Makassar, IndonesiaInternational trade fair and conference for building materials and technology. The Indobuildtech in Makassar is a platform where exhibitor showcase the best products and technologies in the field of building materials and allied industries. It is an important international exhibition for advanced building materials and technologies as well as an excellent opportunity for experts from the industry to make business contacts. It is also one of the largest and most influential trade shows for building materials in Indonesia.

SIBCOMAk September 30 – October 3, 2014 Location: Novosibirsk Expocentre, Novosibirsk, Siberia, RussiaInternational Specialised Exhibition for Construction and Building Machinery and Technologies. The Comak brand will help to position the exhibition in the international market and highlight the common values of ITE’s exhibitions – a high standard of organisation and good results from taking part. SibComak/SibStroyExpo contributes to infrastructure development and finding solutions to various problems of urban construction and landscaping.

WORLD ARChITECTURE FESTIVAL October 1-3, 2014location: Marina Bay Sands, Singapore Spanning 30 categories and including architects in over 40 countries the WAF shortlist is the definitive compendium of global architectural

excellence in 2014. The WAF awards are the only global architectural awards where you can actually hear directly from all of the shortlisted entrants. Festival attendees can watch presentations from every single shortlisted architect and also find out what the judges think of each project.

ONEBUILDOctober 9 – 12, 2014Location: Malaysia, Kuala LumpurONEBUILD is a specialized trade show that provides local and international players a premier platform to present lastest technology in building, architecture, construction technology and hardware industry. The dedicated sections featuring in OneBuild provide more complete solutions for industry professionals.

BUILDTEChASIA 2014October 14 – 16, 2014Location: SingaporeAerial lifts, Building and Construction Machinery and Accessories, Building and Construction and Maintenance Services, Building construction machinery and accessories, Building demolition machinery and equipment, Concrete and cement and plaster, Construction and maintenance support equipment, Doors and windows and glass, Earth moving machinery, Exterior finishing materials, Heavy construction machinery and equipment, Heavy equipment components, Insulation, Interior finishing materials, Lamps and lightbulbs and lamp components, Lighting fixtures and Accessories, Paving equipment, Permanent structures, Plumbing fixtures, Portable structure building components, Portable structures, Prefabricated structures, Roads and landscape, Structural building products,Structural materials and basic shapes, Structures and Building and Construction and Manufacturing Components and Supplies, Tools and General Machinery.

hVACR INDONESIA JAkARTAOctober 28 - 30, 2014Location: Jakarta International Expo, Jakarta.International Exhibition on Heating, Ventilation, Air-Conditioning, Air Filtration & Purification and Refrigeration Systems HVACR Indonesia is the country’s leading exhibition on Heating, Ventilation, Air-Conditioning, Refrigeration, Air-Filtration & Purification Systems. HVACR Indonesia is co-located with the following established events: “Pumps & Systems Indonesia”, “Valves, Pipings & Fittings Indonesia”, “Compressors & Fluid Power Indonesia”. This 4-in-1 platform will provide the most ideal marketplace for international manufacturers and suppliers to launch new products, reach out to buyers, appoint agents & distributors, build brand awareness and establish business networks in Indonesia’s booming economy!

ASIA COATINGS FORUM: ThE TRADE ShOWMay 12 – 15, 2015Location: Ho Chi Minh, VietnamAsia Coatings Forum points to the region of greatest development in Asia. It offers an opportunity to participate in a unique event of continued success. The show specializes in B2B and targer brings to service providers a platform

for anointing their new products and techniques. It is a meeting with leaders in the paint and coatings. Asia Coatings Forum includes: suppliers of raw materials, production equipment and testing methods used in the manufacture of paints, inks, lacquers, etc.

CITyBUILDOctober 14 – 16, 2014 Moscow, Russia International Exhibition of Architecture, Design, Construction, Urban Technologies and Urban Infrastructure Development

BUILDING & CONSTRUCTION MyANMAR October 30 – November 1, 2014 Myanmar Convention Centre (MCC Hall), Yangon.There is a great need to build and upgrade the majority of Myanmar’s infrastructure including housing, schools, shopping malls, hospitals, roads, bridges, railroads, airports, seaports and industrial zones. Building & Construction Myanmar is Myanmar’s truly first-ever international trade exhibition. Building & Construction Myanmar 2013 presented 171 participants from 24 countries, including 3 international pavilions from Germany, Korea and Singapore. On more than 10,000 sqm of indoor and outdoor exhibition space.

hOSpITAL CONSTRUCTION ASIANovember 5 – 7, 2014 Location: Impact Exhibition & Convention Center, Bangkok, ThailandHospital Construction Asia is a 3 day event that showcases products like Accident and Emergency Equipment, Building Technology and Services, Catering and Kitchen Equipment, Communication and Information Technology, Dental Equipment and Supplies, Diagnostics, Disinfection and Disposal Systems, Electromedical Equipment / Medical Technology, Fabrics / Laundry and more etc. in the Building Construction, Medical & Pharmaceutical industries.

ARChIDEXJune 19 – 22, 2015Location: Kuala Lumpur Convention Center, MalaysiaThe year starts off on an exciting note with the 14th edition of ARCHIDEX, the International Architecture, Interior Design & Building Exhibition.. The region’s most significant trade exhibition has built an unsurpassed reputation for itself – drawing together on an annual basis architects, interior designers, developers and other building related professionals of the built and interior design industries.

3D CONCRETE CONSTRUCTABLE MODELSChanging The Game of Concrete PouringOctober 20, 2014Time: 8:00 am - 1:00 pmVenue: Luxent HotelLocation: Timog, Avenue, Quezon City

October 22, 2014Time: 8:00 am - 1:00 pmVenue: Hotel ElizabethLocation: Camputhaw, Cebu City, Cebu

Page 6: Philippine Construction & Design Sept.-Oct. 2014

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September - October 2014 Philippine Construction&Design | 5

NEWS ROUND-UP

The domestic electric vehicle sector is seeking P21.5-billion loan facility from the government to support the production of environment-friendly e-vehicles, which local production is expected to hit 69,146 units by 2017.

The industry roadmap called “The Philippine Electric Vehicle Industry Growth Agenda” has sought for a 25-year loan facility as part of government intervention to fill-up industry gaps. The industry, which is composed of 46 enterprises, claimed it is going to produce a total of 38,220 units already by end this year.

In terms of sales, the roadmap has also projected domestic EV (e-jeep, e-quad, golf carts, e-bike, e-trike, e-bus) sales to reach P214.2 million this year and P4.44 billion by 2016. In addition, the industry has proposed the creation of special vehicle pollution control fund of P3.4 billion to support EV manufacturing to be sourced from the Road User’s tax.

The roadmap, which claimed it is employing 42,000 people, has also called for the passage of the E-Vehicles bill, which was filed in Congress in 2011 yet. Other proposed legislations include incentives for manufacturers or assemblers, incentives to importers, exemption from payment of motor vehicle users charge, and non-fiscal incentives.

The government is also urged to develop investment program for critical parts and production processes for critical parts, such as body panel stampings, large injection mouldings, engines, transmissions, transaxles, wiring harness; auto glass forming, finishing: steering and suspension parts.

Electric vehicle sector seeks P22-B loan facility

Government support is deemed crucial to the industry which at this early stage of development has recognized some technological failures and safety issues. The roadmap said the industry needs to develop battery technology for EV to become sustainable. It also lacks available rapid charging technology. On the safety issues, the roadmap noted of the lack of standards and regulations and limited driving range.

Earlier, Japanese electric car manufacturer Neues Co. Ltd. announced a joint venture with local electric golf kart distributor Kart

Plaza Manufacturing Corp. (Kart Plaza) to develop, assemble and distribute electric vehicles for private and public use in the Philippines.

Neues Co. Ltd, a subsidiary of Osaka-based NKC Metalworks Group, announced its partnership with Kart Plaza for an ambitious plan to locally manufacture affordable and economical electric vehicles for Filipino motorists. Under the partnership, Neues Co. Ltd. will provide the complete electric vehicle platform as well as the stand-alone charging stations, which Kart Plaza will use to locally develop, assemble, distribute and service.

Kart Plaza Managing Director Johnny Tan said they are yet to discuss the composition of the company that it will establish with Neues Co. Ltd. But he disclosed that the company’s plant will rise in Carmona, Cavite and the electric vehicles that they will manufacture will carry the NKC, which is a global provider of bearing retainers, assembly-line conveyor systems, electric forklifts and wind-turbine technology.

NKC’s subsidiary Neues Co. Ltd. unveiled its electric vehicle platform in 2013. Kart Plaza will help design and manufacture the electric vehicles as well as serve as exclusive distributor and marketing arm in the Philippines.

Cement sales continues their uptrend but the growth slightly slowed down in the second quarter of the year. Ernesto Ordonez, president of the Cement Manufacturers

Cement sales growth slows down Association of the Philippines (Cemap) said sales in the second half grew only 3.2 percent to 5.52 million metric tons 5.35 mmt in the same period in 2013.

This is slightly slower than the 8.6 percent growth posted in the first quarter of 2014 when the industry sold 5.2 mmt of cement compared with 4.8 mmt in the same quarter of 2013.

This brought first half sales to 10.72 mmt in the first half, up 5.7 percent from 10.13mmt in the same period in 2013.

According to Ordonez, the increase in the budget of the Department of Public Works and Highways and the private sector’s continued confidence in the economy fuelled construction activities

in the period. In 2013, cement sales went up to a record of 14.94 mmt, a growth of 7.1 percent from 13,95 mmt in 2012.

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Page 8: Philippine Construction & Design Sept.-Oct. 2014

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NEWS ROUND-UP

The installation of solar home system (SHS) for targeted households in the Visayas region is being accelerated by the Department of Energy. The agency noted in a press statement that it had recently undertaken “community consultations” to apprise prospective beneficiaries of the SHS on the technical operation as well as potential benefits of the system which has been chosen as among the technology options for the government’s Household Electrification Program or HEP.

Such electrification platform delves with the “energization of off-grid households utilizing renewable energy technologies such as solar home systems.” The DOE said its Visayas field office is already spearheading the installation of SHS in about 375 households in the province of Eastern Samar.

This shall cover the municipalities of Oras covering 220 households; Arteche for 71 households; Quinapondan for 59 households; and General MacArthur for 25 households.

More DOE solar installations in Visayas

According to the department, the installed SHS comes with “3 units of 3-watt LED lights; and one unit of 1.0-watt LED light with built-in AM/FM radio and cellular phone charger.”

It added that installations were started last week of June and completion of the projects had been anticipated by mid-August this year. Another area of focus for the SHS-underpinned electrification program will be the Don Salvador Benedicto community in Negros Occidental.

As laid down by the energy department, this shall cover 425 households with targeted installation kick-off next month. “This undertaking is considered a highlight in the implementation of the HEP as most beneficiaries in this municipality are rebel-returnees and indigenous people groups,” the DOE has noted.

The other project areas will be the fishing communities in Higatangan Island and Naval in Biliran province for 50 households; as well as the upland sitios and farming communities of Mahaplag and Burauen in Leyte for 60 households to be done by September. (MMV)

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Ortigas celebrates 83rd anniversary with new projects

Property developer, Ortigas & Co. celebrated its 83rd founding anniversary with new milestones for its residential, commercial, and office projects. The company, behind some of the country’s most loved destinations such as Greenhills Shopping Center and Tiendesitas, continues to build forward with fresh concepts that are transforming the Metro Manila landscape.

Ortigas held the first concrete pouring of its 64-story residential tower at Capitol Commons dubbed The Royalton. It is the first of the five towers to rise in the 10-hectare master-planned development that will revitalize the old site of the Rizal provincial capitol and make it a sanctuary for urban style. Earlier, during Q1, Ortigas made a solid entry into the tope market with Imperium — the development’s second tower — having only four units to a floor, offering only two- and three-bedroom suites

with an area of up to 202 square meters.The company also recently signed an

agreement with the Integrated Bar of the Philippines (IBP) for the lease of a 1,700-square meter lot for the construction of a 26-story office tower that is ideal for BPO locators. The IBP Tower will add to the company’s office space portfolio, which is now at 29,000 square meters.

Viridian — a 53-storey contemporary classical structure being built within the Greenhills complex to make it a complete live, work, and play environment — made a recent showcase of its design concept with the launch of Viridian Café. The showroom café, arguably one of the first in the Metro, stands as an interim feature of the development located at Connecticut Street, near Viridian’s grand lobby. It features Viridian’s actual ceiling height, interiors, and specialty coffee

from Dutch brand Douwe Egberts.Ortigas’ history began as early as 1931

upon its incorporation, with Francisco Ortigas Vicente Madrigal, B.C.M. Johnston, Fulgencio Borromeo, Clyde A. Dewitt, and Manuel L. Quezon as partners.

The 4,000-hectare property owned by the party called Hacienda Mandaloyon, which spanned the municipalities of Pasig, Mandaluyong, San Juan, and Quezon City, has since been sold in large tracts or developed to become today’s most dynamic cities.

“The challenges of the past are very different from today,” says Joey Santos, SVP and General Manager of the Real Estate Division.

“In the 1970s, Ortigas invested heavily on horizontal developments like Valle Verde, Green Meadows, and the Greenhills subdivisions. The trend today is vertical—space has become limited and there is greater emphasis on the need for great location and convenience. Filipinos are entering a new age of economic freedom, so more people are buying property. But along with that comes tougher competition. That is the reason why we constantly need to reinvent ourselves. We have to grow with the market and keep up with the trends. So in 2009, we introduced Circulo Verde, a mid-end residential community in Quezon City, followed by Capitol Commons in Pasig,” he adds.

In the next quarter, Ortigas is set to launch other developments, including the crown jewel of Capitol Commons called Estancia — with 18,000 square meters of space dedicated to destination retailers and the best of what the fashion, culinary, and entertainment worlds have to offer.

Ortigas & Co. remains as one of the most trusted real estate developers in the country with considerable land bank, enough to support continuous development for the next 15 years.

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September - October 2014 Philippine Construction&Design | 7

The Archdiocese of Palo in Leyte is building a center for the poor to be named after Pope Francis. The construction of the Pope Francis Complex Center for the Poor, which will be built at the compound of the Metropolitan Cathedral of our Lord’s Transfiguration in Palo, will be funded by the Pontifical Council Cor Unum for Human and Christian Development of the Vatican. Palo Archbishop John Du said the center aims to “address the needs of the poor”.

In an interview over Church-run Radyo Veritas, Du said the Pope Francis Complex will be composed of the home for the elderly, home for the sick (clinic), orphanage and chapel. He said he hopes the construction of the center will be finished before the expected visit of Pope Francis in the country next year.

Pope Francis earlier revealed his plan to visit the country in January 2015, but the Catholic Bishops’ Conference of the Philippines (CBCP) said they have yet to receive a formal announcement from the Vatican.

Visiting Vatican officials also expressed the desire of the pontiff to visit the victims of supertyphoon Yolanda in Eastern Visayas. Du said he is hoping that aside from visiting

Pope Francis Complex Center to be built in Leyte

the areas hit by the typhoon, the pontiff will also get to visit the Pope Francis Center for the Poor.

The prelate said Vatican representatives will be here in the country next month to “coordinate the details of the visit of the Holy Father”. Leslie Ann Aquino

After two years of bidding, the Aquino Administration is now set to award its biggest infrastructure project to date as the Light Rail Transit Authority (LRTA) Board approved the awarding of the P65 billion Light Rail Transit (LRT) 1 Cavite Extension Project to the lone bidder – Light Rail Manila Consortium (LRMC), a consortium of Metro Pacific Investment Corp. (MPIC), Ayala Corporation and an Australian partner.

LRTA Board corporate secretary lawyer Hernando Cabrera confirmed that the LRTA Board has authorized Department of Transportation and Communications (DOTC) Secretary Joseph Emilio Abaya to sign the notice of award (NOA) to LRMC. “Based on the recommendation of the DoTC Special Bids and Awards Committee, the LRTA Board has authorized Secretary Abaya, being the chairman of the Board, to sign the NOA,” he said, referring to the document formalizing the awarding of the project to LRMC.

The sole and winning bidder, LRMC is composed of MPIC with 55 percent interest, Ayala Corp.’s AC Infrastructure, 35 percent, and Macquarie Infrastructure Holdings Pte. Ltd.,10 percent. LRMC has offered to undertake the project and to remit P9,350,103,900 as premium payment to the government. The MPIC-led consortium said 20 percent of the premium payment will be paid upfront at the concession agreement signing and the rest will be spread over the life of the 32-year concession period.

LRMC was also the lone bidder during the first auction of the project, which started as early as June 2012. The consortium however offered it a non-compliant bid, forcing the DOTC to declare a failure of bidding and to re-auction the project. LRMC has also beat the deadline of submitting technical and financial proposals for the P64.9 billion project to extend the LRT 1 from Baclaran, Pasay City to Bacoor City in Cavite as well as to operate and maintain the entire rail system for 32 years.

As the winning bidder, LRMC will be given the rights and privileges as a concessionaire for a period of 32 years. As a consequence, the concessionaire will receive the proceeds of the fare collection but assumes ridership risk, undertakes future system maintenance

LRMC to win P65-B LRT1 Extension award

and upgrades, and permits commercial development of the facility.

The LRT 1 currently runs from Baclaran in Pasay City to North Avenue in Quezon City. It serves an average of 500,000 passengers a day.

For the DOTC’s part, spokesman lawyer Michael Sagcal said the issuance of the NOA depends on how soon DOTC will receive the LRTA Board resolution, authorizing Abaya to sign the document. He added that the concession agreement signing between DOTC and LRMC will follow three to four weeks from the issuance of the NOA.

“The period between the issuance of NOA and the concession signing agreement will be the time for the winning bidder to fulfill the post-award conditions,” he pointed out. Meanwhile, Cabrera confirmed that the winning bidder have one year after the signing of concession agreement to take over the LRT 1 facility and commence construction of the rail line’s extension from Baclaran in Pasay City to Bacoor in Cavite.

“The contract calls for the winning bidder to take over and start construction one year after the signing of concession agreement. Construction should start as soon as they take over,” he explained. Sagcal also confirmed that based on the final concession agreement for the LRT 1 Cavite Extension Project, the planned Common Station for LRT and Metro Rail Transit will be constructed near Ayala-owned Trinoma Mall in Quezon City.

Although the case filed by SM Prime Holdings, Inc. (SMPHI) against DOTC’s move to transfer the location from SM North EDSA to Trinoma Mall is still pending at the Pasay City Regional Trial Court Branch 111, Sagcal said the court has already denied SMPHI’s petition for temporary restraining order.

“There is no legal impediment to stop the award,” he said. “We are confident to win the case but assuming the worst case scenario, the court can only order LRTA to pay damages for breach of contract,” Sagcal added. Kris Bayos

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NEWS ROUND-UP

The first international airline that departed Manila from Ninoy Aquino International Airport (NAIA) Terminal 3 took off on August 1 as the modern aviation facility commenced full operation. Transportation Secretary Joseph Emilio Abaya yesterday announced that Delta Airlines flew its first flight out of Terminal 3 on August 1 after Takenaka Corp. has successfully beat its July 31 deadline of supplying, installing and commissioning the deficient systems at the modern passenger terminal building.

“We are extremely pleased to confirm that full airline operations at NAIA Terminal 3. Our gateway airport will now be able to welcome 3.5 million more passengers with modern facilities every year, and Terminal 1 will now be considerably decongested to improve passenger convenience,” Abaya said.

According to the Manila International Airport Authority (MIAA), five international carriers will relocate to Terminal 3 from Terminal 1. “MIAA has informed us that Delta Airlines had its first flight out of Terminal 3 on August 1st”

Terminal 3 ready for full operations

Abaya said. “Singapore Airlines, Emirates, and Cathay Pacific will follow suit. These five carriers have the highest volume of international flights coming in and out of NAIA, so we look forward to giving them a new home,” he added.

According to DoTC, the transfer of the five foreign airlines will reduce Terminal 1’s annual passenger throughput from the current 8 million down to its design capacity of 4.5 million. The relocation will free up more space at Terminal 1 and reduce the number of travelers affected by the ongoing rehabilitation works.

Abaya took off from his predecessor’s negotiation with Takenaka Corp. and was able to seal a $40-million contract with the Japanese firm in August, 2013. Takenaka was then given a year to complete the

various systems for Terminal 3 including flight information displays, computer terminals, gate coordination, landing bridges, and fire protection systems.

The Transportation chief admitted that around 85 percent of Takenaka’s completion works had been completed as of July 18 but said Terminal 3 can commence full operation while certain systems that are not critical such as building maintenance system are being finished within the year.

Earlier, Abaya disclosed a plan to construct a new terminal within NAIA to house low-cost carriers that are currently operating at Terminal 3. The plan is meant to set aside Terminal 3 as an exclusive facility for international airlines. Kris Bayos

THE Metropolitan Cebu Water District (MCWD) opened a reservoir in a subdivision in Barangay Guadalupe, Cebu City. The P10.6-million state-of-the-art reservoir can store 1,000 cubic meters of water that can supply about 3,800 households, including the homeowners of a real estate development, living within the Guadalupe area. The water that will be stored in the reservoir, which was constructed within a 791-square-meter property near the entrance of Monterrazas de Cebu subdivision, will be sourced

State-of-the-Art reservoir opened from five deep wells and from Abejo Water Corp., a private bulk water supplier.

The reservoir in Monterrazas de Cebu is the latest of eight MCWD reservoirs across Cebu. The other seven reservoirs are located in the towns of Liloan, Consolacion and Compostela and in the cities of Lapu-Lapu and Talisay. Eugene Singson, MCWD officer-in-charge, said that with a reservoir now installed at the subdivision, water pressure for areas in Guadalupe will remain stable even during peak hours.

In July last year, Genvi Development Corp., which developed Monterrazas de Cebu, donated the property where the reservoir now stands. The donation was made after Genvi learned about the plan of MCWD to put up a reservoir and was looking for a site for the project. Singson said that the reservoir uses state-of-the-art technology called glass fused to steel and it is compliant with the National Sanitation Foundation (NSF) Standard 61, which regulates standards for drinking water. He assured that with the technology used for the reservoir, fungus or moss will not accumulate within the facility.

Aside from Guadalupe, a similar reservoir using the same technology is also currently operational in another subdivision in Barangay Lahug. There are also reservoirs in Barangays Tisa and Talamban. He said that due to additional water supply of 3,500 cubic meters provided by Abejo Water Corp., a reservoir is needed to be stored, especially during non-peak hours. Justin K. Vestil/ Cebu Sun Star

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September - October 2014 Philippine Construction&Design | 9

Bohol is poised to be the country’s next information and communications technology (ICT) center with the recent installation of 328 kilometers of underwater and inland fiber optic cables, according to the Philippine Long Distance Telephone Company (PLDT).

In a speech during the celebration of Bohol Day, PLDT President and CEO Napoleon Nazareno said the

Bohol poised as next ICT center with Fibre optic installation

Nazareno

extensive fiber network in the province will bring in more business and better jobs to the island province, which was hit by a 7.5-magnitude earthquake last year.

“With PLDT’s fiber network, Gov. Edgar Chatto will be able to attract more call centers and outsourcing companies that can hire many more of the graduates being produced by the universities and colleges of Bohol. Tagbilaran can really become another ICT center of the country,” he said.

Nazareno added that PLDT’s fiber, which cost P700-million to install, will benefit the province’s educational and government institutions. “With fiber, Bohol can further improve its educational system because schools and students can access rich learning material available on the worldwide web. Government can further

improve its performance by providing citizens access to online government services,” he added.

The P700 million project to install climate-resilient fiber optic cables in Bohol is part of the P32 billion capital expenditure for PLDT’s network expansion this year. The Bohol fiber project has further strengthened the resiliency of PLDT domestic fiber optic network (DFON) through a third link connection to the islands of Cebu and Mindanao. The Bohol fiber project connects the province in the north from Loon to Mactan in Cebu and in the south from Garcia Hernandez to Kinoguitan in Misamis Oriental.

“Our fiber project consists of 328 kilometers of submarine and inland fiber optic cables that run from Cebu through Bohol all the way to Misamis

Oriental. With this, Bohol now has more reliable and resilient high-speed Internet connectivity,” Nazareno pointed out.

Due to the upgrade, the Bohol DFON is now equipped with up to 50G capacity to support the increasing demand for greater bandwidth in both fixed and wireless services, according to PLDT Technology Group Head Rolando Pena. This allows PLDT to provide fiber-to-the-home (FTTH) services and support the operations of its wireless subsidiaries Smart Communications and Sun Cellular, by providing expanded HSPA and LTE coverage in Bohol.

“That is why PLDT is investing so much in building the most extensive fiber optic network in the country. We now have nearly 90,000 kilometers of fiber cables throughout the country. And we are building more. This is the infrastructure that the country needs in the digital age,” he added. (KB)

The Local Water Utilities Administration (LWUA) announced that the agency has already allotted a total of P3.5 billion for improvement of water services in the region. The LWUA is a government-owned and controlled corporation (GOCC) with a specialized lending function mandated by law to promote and oversee the development of water supply systems in provincial cities and municipalities outside of Metropolitan Manila.

According to Andres Ibarra, current LWUA administrator, investment is concomitant to the vibrant growth of Central Luzon. He also cited the Clark Green City project initiated by the Bases Conversion and Development Authority at Clark Freeport. The fast growing economy of the region, according to him, also entails an improvement of the delivery of basic social services.

LWUA allots P3.5B for Central Luzon

“There is a need to improve water supply system given the growing need of Central Luzon,” said Ibarra. He added that most of the consumers in the region have already attained 100 percent coverage of water supply.According to LWUA data, there are around 800 water concessionaires from 85 water districts which are actively working on the water security of Central Luzon.

Meanwhile, the LWUA administrator also commended the efforts of the Central Luzon Association of Water Districts in

organizing a new group, which will be mainly responsible for collecting more comprehensive information about their water districts. The importance of such pieces of information in continuously improving the water sector was duly emphasized by Ibarra. The data collection, Ibarra said, may be forwarded to the different international agencies which are doing research and development on the water sector such as the Asian Development Bank. Ferth Vandensteen Manaysay

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NEWS ROUND-UP

SM North still ‘best location’ for common LRT-MRT station

A former government official has urged the Department of Transportation and Communications (DOTC) to reconsider its plan to transfer the location of the proposed Common Station for the Light and Metro Rail Transits (LRT-MRT), saying passenger convenience is of utmost importance than savings.

Former LRT Authority Administrator Melquiades Robles called on the DOTC to contemplate on the inconvenience of constructing the LRT-MRT Common Station adjacent to Trinoma Mall instead SM North EDSA to traveling senior citizens, pregnant women and children.

If the Common Station is built adjacent to Ayala-owned Trinoma Mall, commuters will have to walk at least 200 meters to reach the soon-to-be constructed MRT line 7, which will run up to San Jose del Monte in Bulacan. But if the original location is pursued, the LRT line 1, MRT line 3 and MRT line 7 will converge at the intersection of EDSA, North Avenue and West Avenue in Quezon City.

“As much as possible, transfer from one rail line to another should take the least steps for the sake of passenger convenience,” said Robles, who had signed the 2009 naming rights deal with SM Prime Holdings Inc. The company had then remitted P200 million to help finance the construction of the Common Station near SM North EDSA. Robles explained that SM North EDSA is still the best location for the Common Station, citing legal, operational and technical factors.

“Legally, government is mandated to put MRT lines 3 and 7 under one roof, aside from honoring its deal with SM. Operationally, government will have to stop MRT 3 operations during the construction of the Common Station in Trinoma. And

technically, government cannot generate savings from constructing the two-systems Common Station than from a three-systems facility because that is not comparing apples to apples,” he pointed out.

With the (looming) awarding of the P65-billion LRT 1 Cavite Extension Project, which includes the design of the Common Station, Robles warned DoTC officials of possible lawsuits if they insist on transferring the location of the Common Station to Trinoma. Already there is a case filed by SMPHI against the DOTC for breach of its 2009 contract pending at the Pasay City Regional Trial Court branch 111.

“All factors are in favor of putting the Common Station where it is originally planned. DOTC should explain why despite all the trouble of transferring the location from SM to Trinoma, it still insists on the transfer,” he said.

To recall, the Light Rail Manila Consortium of Metro Pacific Investments Corp., Ayala Corp. and Macquire Infrastructure has offered to undertake the project and to remit P9,350,103,900 premium payment to the government. The MPIC-led consortium said 20 percent of the premium payment will be paid upfront at the concession agreement signing and the rest will be spread over the life of the 32-year concession period.

Stressing his opposition against privatization of rail systems, Robles also urged government to construct the Common Station if DOTC is really bent on saving. “If government is after the savings, then why doesn’t the government undertake the construction? We all know that if construction is done by private firms, it will be more expensive because they work for profit,” he explained.

The project to extend the LRT 1 line from Baclaran in Pasay to Bacoor in Cavite is touted as the biggest infrastructure project of the Aquino Administration so far. The Aquino Administration has allocated P1.39 billion separately for constructing the Common Station at the Trinoma Mall.

Robles said it is up to the DOTC officials to stand their ground on their chosen location for the Common Station but warned them to “be responsible for their actions.” Kris Bayos

THE maintenance of overpass and road railings will soon be the responsibility of barangay leaders. “Mas dali nila ni ma monitor kay naa ra sa ilang area (It will be easy for them to monitor as they are just in the area),” City Environment and Natural Resources Office (Cenro) Engr. Elisa P. Madrazo said.

She said these should have been the duty of the barangay officials even before but no proper turn-over was held. The City Government of Davao, through the Cenro, will conduct a dialogue with the barangay leaders on this.”They will sign a pledge of commitment,” she said.

Madrazo said the proposal was an order

Davao barangays to repair overpass, road railings

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from Mayor Rodrigo Duterte. “Daghan na siguro nagareklamo kang Mayor about aning mga railings ug overpass nato. It’s about time naipasa na ni sa barangay paramatutukan nagyud (So many may have complained to Mayor Duterte about the overpass and railings. It’s time to turn these over to the barangays to be given attention),”she said. (ANC)

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REgIONAL REPORT

VN adopts green building strategies

“Green building is an integral part of urban and rural sustainable development, contributing significantly to a country’s sustainable development,” said Pham Ngoc Dang, President of the Green Building Council Viet Nam and the Vietnamese Association of Construction Engineering and Environment. Representatives from Fairventures Worldwide FVW gGmbH and the University of Applied Sciences Stuttgart (Hft Stuggart) joined Vietnamese construction experts to introduce green building strategies at a workshop in Ha Noi.

During the workshop, the international audience was introduced to Viet Nam’s national strategy framework for developing green buildings up to 2020. This framework covers nine major issues of green buildings, including environmentally sustainable building site planning and design, efficient use of energy, water and materials, air quality inside the building and waste minimization. By 2020, Viet Nam aims for 30 per cent of newly-built and renovated buildings using the State budget and about 10 per cent of those using private funds to qualify as green buildings. These numbers are expected to double by 2030.

“Green buildings are also fuelling a return to traditional materials and methods,” said Andreas Loffler, Dean of the Hft Stuttgart‘s Architecture and Design School and Director of the Centre for Integral Architecture. Loffler proved this point with a case study of buildings in the informal areas of Columbian big cities, which typically use adobe bricks and bamboo boards.

Pham Duc Nguyen from the National University of Civil Engineering and Tran Binh Minh, E4G’s technical manager, introduced several appropriate architectural techniques for Viet Nam, where the climate varies considerably from region to region. These included passive design solutions like covering openings to protect the building from solar heat, changing the shape of the building and laying out interior spaces according to heating requirements. — VNS

Cambodia’s Russian Boulevard land prices rising

The west end of Street 110, also known as Russian Boulevard, is attracting increasing interest from investors and retailers because of its vital role connecting Phnom Penh International Airport with the city centre. Local real estate experts estimate that land prices along the thoroughfare have risen between 10 and 20 per cent compared with 2012.

VMC Real Estate Cambodia general manager Dith Channa said property along Russian Boulevard has high potential, particularly because of the higher-income local and international traffic channeled through the street. New car showrooms, hotels, supermarkets and large-scale projects such as the $1.1 billion Booyoung Town development have all contributed to the increase in land prices along the street, he said.

Russian Boulevard’s most expensive land is on its east end near the central business district centered around Canadia Bank Tower and Vattanac Capital Tower, which is nearing completion. Land prices from Canadia Bank Tower to the 7 Makara Skybridge are currently running from $1,200 to $900 per square metre. From the 7 Makara Skybridge to the intersection with Hanoi Road, prices vary from $900 to $700. Further west between Hanoi Road and Chom Chav, prices are as low as from $600 to $300. Khmer Real Estate Company president Kim Heang gave higher estimates than VMC’s Dith for land prices along Russian Boulevard. Kim put prices from Canadia Bank Tower to 7 Makara Skybridge at $2,000 to $1,500. He estimated prices

from 7 Makara Skybridge to Hanoi Road at from $1,500 to $1,000 and from Hanoi Road to Chom Chav at from $800 to $500.

“Land prices along Russian Boulevard increased from 10 to 15 per cent in 2013,” Kim said. “Big companies use this road to advertise due to many people traveling through, that is also why we see new car companies opening there.” CPL Real Estate Company director and Cambodian Valuers and Estate Agents Association president Cheng Kheng said that the rise in property values along Russian Boulevard was driven by the increase in building projects in the area.

A new CPL report lists prices from Canadia Bank tower at between $2,000 and $1,600 per square metre, while 7 Makara Skybridge to Hanoi Road is at $1,000 to $800 and Hanoi Road to Chom Chav at $660 to $450. Ratanak Plaza Supermarket general manager Hang Sopisey said Russian Boulevard was a natural choice for the supermarket due to its easily accessible location.

Land prices may be showing positive growth, but Confederation de la Russie has traffic problems that need addressing, Dith said. “This road has a lot of potential and is attracting interest from larger companies, but there are some problems at times when VIP visitors take the road and traffic is blocked off,” he said.

“Being located on Russian Boulevard makes your business highly visible to people who travel to and from the airport – many tourist visitors see us on their way into town,” she said. CCN

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Snake Island plans in Cambodia goes back to the drawing board

A development company with a government concession for a high-end property project on the island of Koh Pos, also known as Snake Island, has announced that it will significantly alter its original plans for the project. The new plan, which must first be submitted for government approval, will raise the project budget from $276 million to $1billion. Keam Kolnead, chief public relations officer of Koh Puos (Cambodia) Investment Group, said in an interview that the villa, hotel and office projects on the island have been redrawn to adapt to the current situation. Villas were not selling well due to their large size and nearly $1 million asking price, he said.

“Now the company is altering the project blueprints before seeking permission for construction from the Council of the Development of Cambodia [CDC] again,” Kolnead said. “Reapplying for permission will happen in 2014 and the revised project will have a budget of $1 billion.” The company submitted its first application for the project to the CDC in 2006, when it was planning on investing $276 million in converting the 116-hectare island into a luxury residential and resort complex.

Kolnead said the company had already invested $100 million in building a 1-kilometre bridge to the island as well as other infrastructure on the island itself, including an unfinished 5-kilometre road circling the island. Noun Rithy, general manager of Bunna Realty Group, said that it appeared that progress on the Koh Pos project was slow. Bunna Realty’s contract to sell residential properties on the island had already expired, he said.

Ho Vandy, co-chairman of the government’s Private Sector Tourism Working Group, said that the government had provided many similar island concessions to other companies. It was understood that companies with concessions would use their developments to attract domestic and international tourists, maintain an existing national resource and provide jobs and income for local people, he said. CCN

Bouygues to build Thai towers

Bouygues Construction’s subsidiary in Thailand has signed a €100m (£82m) contract for the construction of three residential towers and an office block.

Noble Development’s scheme which has a total area of 157,000m², is located in the business district of Ploenchit, in Bangkok. The three residential towers, which will have 14, 47 and 52 floors, will contain about 1,450 apartments. The office building will have three storeys.

Bouygues Thai is due to begin work in the third quarter of 2012, and the project is scheduled to last almost three-and-a-half years. At peak periods, approximately 1,800 employees will be working on the site, which is situated in a very dense urban environment.

This project is the fourth collaboration between Bouygues Thai and Noble Development. Bouygues Construction has been active in Thailand since the early 1990s through two subsidiaries. Bouygues Thai, its building-sector subsidiary, was responsible for The Met. The residential complex that was completed in 2008 consists of what were at that time the three tallest residential towers in Bangkok (232m). Another Bouygues Construction subsidiary, VSL, specialises in post-tensioning systems and mostly works on civil engineering structures.

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REgIONAL REPORT

Veng Sreng Blvd. to be widened and renamed

Government officials and local real estate experts agree: widening and repaving the capital’s Veng Sreng Boulevard will have a positive impact on the city’s transport network as well as nearby property values. Phnom Penh municipal government spokesman Long Dimanche told the Post that Veng Sreng will be expanded 22 metres wide, with a green space running down the middle and dividing six lanes of traffic. The planned roadworks will require 14 months to complete and cost $10 million.

The 6.5-kilometre road, which is an important traffic artery in western Phnom Penh connecting Meanchey and Posenchey districts, has fallen into increasing disrepair in recent years. Meanchey district chief

Kuch Chamreoun told the Post said he had yet to study the impact of construction on his district, as roadworks will begin in Posenchey first.

Veng Sreng is lined with a string of warehouses and factories and is an important western thoroughfare for large trucks and private vehicles. Chamreoun said widening the road should alleviate the growing problem of traffic jams in the city’s west. “If the road’s size doesn’t change, it will become more and more congested due to population growth and increased vehicle usage, so it should be enlarged,” he said.

Da Rany, who lives in Borey New World, off of Veng Sreng, said that the construction was a positive development, as the road

as it is now is dusty in the dry season and muddy in the rainy season. Not only is the road susceptible to traffic problems, it is also a safety hazard, especially for young people going to and from school, as well as motorcyclists, Rany said.

“I am happy to hear the news of the road’s planned expansion, which should make traffic smoother,” she said. “But I am concerned that the municipal government might only be announcing its plans without following through, because I have not seen any construction yet.”

Noun Rithy, general manager of Bonna Realty Group, said the planned traffic infrastructure upgrade is affecting property values along Veng Sreng, although only slightly, as the area is already developed. “Land prices along Veng Sreng run between $250 and $500 per square metre,” Rithy said. “I don’t think prices will increase anymore because it is in an area for grade three commerce.”

Recently, Rithy said, ground-floor flats along Veng Sreng have been priced between $120,000 and $180,000. One-storey flats on side roads have been priced at between $35,000 and $45,000 and two-storey flats on side roads between $55,000 and $65,000.

Kim Heang, president of Khmer Real Estate company, said that when construction is completed, Veng Sreng will be renamed Chorm Chaov Boulevard.

Chorm Chaov’s completion will make the area more suitable for medium-income residents, Heang added.

BCA gives S$8.3m for energy researchTHE Building and Construction Authority (BCA) has granted

S$8.3 million to researchers from the National University of Singapore (NUS), Nanyang Technological University and Ngee Ann Polytechnic to develop energy-efficient technologies.

The grant is part of a scheme launched in September last year, in which BCA was allocated S$15 million under the Energy Innovation Research Programme to support the development of energy-efficient and cost-effective technologies for buildings in the tropics.

One of the grant recipients, Dr Lee Poh Seng from NUS, will be developing a system to integrate a novel oblique fin technology into a small capacity air-conditioning system.

This can enhance air side heat transfer and raise energy efficiency of the air conditioning system by as much as 40 per cent, he said.

He will be working with SMEs such as GCore Lab Pte Ltd,

Green Koncepts Pte Ltd, NiCae Trading & Industrial Supplies Pte Ltd and Libra 2002 Pte Ltd, which will help develop prototypes and commercialise the products.

Said BCA chief executive John Keung: More efficient buildings mean better use of resources. By providing researchers with the right support and environment, low energy high-rise buildings in the tropics are now a possibility in Singapore.

BCA will be launching a second grant call at the Singapore Green Building Week in September this year. It is seeking solutions that provide for better human thermal comfort, health and indoor environment quality.

Key evaluation criteria include innovation, relevance with respect to current challenges that the built environment sector faces, potential to produce breakthrough results and the possibility of the products being commercialised, BCA said.

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Phnom Penh will be a changed city and more attractive when twin 45-storey condominium towers are completed in the coming three or four years, developers say. Sung Bonna, director of Bonna Realty Group, said Singaporean outfit, The company is proposing that the Ministry of Land Management, Urban Planning and Construction run its project. He added that the buildings would be used for condos, office space and a supermarket. However, he did not outline further details about the project or how much it would cost.

“This project is not mine, I do not have such substantial capital, ” Bonna said. “It is my client’s project” The twin buildings will be built south of the Australian Embassy in Tonle Bassac commune, Chamkarmon district. Noun Rithy, general manager of Bonna Reality Group, said the owner was studying and preparing the project for a future sales campaign, adding that the location of the

Phnom Penh skyline to change with gigantic 45-storey project

Vietnam building show a roaring success

Held at Saigon Exhibition and Convention Center last June, one of Asia’s leading international construction & building exhibition VICB 2014 incorporating “RAHV VIETNAM 2014”, “SECURITY & FIRE VIETNAM 2014” and “LIGHTING VIETNAM 2014” had come to a successful close. Exhibitors had thumbed-up their overall success positively of customer contacts and achievement of the business potential.

The 3-day fair featured:- 102 exhibitors representing 13 countries and regions from China,

Czech Republic, France, India, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand, UAE, U.S.A. and Vietnam showcasing an array of the latest machinery & equipment, building materials, innovative technology & keen services to quality buyers.

- National pavilions from Korea Plastic Processing Machine Industry - KPPMIC & KOTRA (Korea) and the Busan Chamber of Commerce and Industry (Korea) had pledged their great support by joining the VICB 2014 confirming the importance of Vietnam as the marketplace of business potential.

- Attracted 6,691 quality buyers from 23 countries & regions, up 5% compare to 6,373 in 2013.

-2 visitor delegations led by the Wayamba Chamber of Commerce and Industry (Sri-Lanka) and the Office of the Broad of Investment (Thailand) had visited the fair to share industrial news, sourcing new products, making new contacts and looking for new partners.

commercial building was interesting, for it is comprised a variety of services and a good urban environment.

Noun said that factors including proximity to the city centre, good surrounding environment and fengshui and high-class residential spaces would ensure the project’s success.

Tall buildings are popping up throughout the Tonle Bassac area, including the Rose, Riviera, and CASA Meridian condominium developments, Tokyo Inn and Bali Scenery. Kim Heang, president of Khmer Real Estate,

said that the twin skyscraper development was a good project because the location was the highest priced area in Phnom Penh. The development’s diverse targeted markets will ensure its success, he added.

The one-and-a-half hectare site will serve as a welcoming point for tourists and investors coming to Cambodia after ASEAN integration is launched in 2015, he said.

Liv Ratana, personal assistant to Sear Rithy, chief executive officer of The Bridge Company, said Sear declined to comment on the project. CCN

GEORGE TOWN, Aug 7 (Bernama) -- Penang Chief Minister Lim Guan Eng wants Temerloh member of parliament Nasrudin Hassan, from PAS, to apologise over the undersea tunnel project claimed to cost RM4.63 billion and given to a company through direct negotiation.

He said if Nasrudin failed to issue an apology within 24 hours, he would take legal action over the latter’s untrue statement.

“It is clear that Nasrudin had lied, as the undersea tunnel project was given to Consortium Zenith BUCG through open tender and not through direct negotiation as publicly claimed.

“The overall cost of the project is RM3.6 billion and not RM4.63 billion, and Nasrudin continued to lie as the Penang state government under Pakatan Rakyat has never experienced a budget deficit but in fact, recorded a surplus,” he told a news conference at his office, here, Thursday.

Lim was responding to Nasrudin’s statement on a portal which questioned the action taken against Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim over the Kinrara-Damansara Expressway (Kidex) issue.

In his statement, Nasrudin also questioned Pakatan Rakyat’s leadership in not taking any action against Lim over the undersea tunnel project which was claimed to have been awarded to Zenith via direct negotiation.

Nasrudin also lamented that no Pakatan Rakyat leader had criticised the Penang chief minister for daring to spend big on the project when the financial situation was critical, while many residents and other quarters were opposed to the project, just like the sentiments against the Kidex project.

-- BERNAMA

Guan Eng Wants Nasrudin To Apologise Over Allegations On Undersea Tunnel Project

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REgIONAL REPORT

Thailand Denies Illegal Construction Worker Crackdown

Thailand and Cambodia have agreed to quash “rumours” of a crackdown against illegal migrant workers by the new Thai junta after the exodus of nearly 180,000 Cambodian labourers.

The numbers of labourers fleeing home soared after the Thai military regime warned last week that illegal foreign workers face arrest and deportation.

The junta has since insisted there is no “crackdown” and blamed false rumours for the exodus.

The International Organisation for Migration

has previously estimated that around 180,000 undocumented Cambodian workers live in Thailand, so it is unclear exactly how many still remain.

Migrants from neighbouring Cambodia, Laos and Myanmar play a key role in Thai industries such as seafood, agriculture and construction, but often lack work permits.

“We need to work closely together to allay fear among the Cambodian labourers in Thailand that it is not the policy of the current administration to crack down on labourers regardless of their (legal) status,” said the

Cambodian ambassador to Thailand, Eat Sophea, on Tuesday.

She also dismissed rumours of the shooting and abuse of Cambodian migrants by Thai authorities – among the factors believed to be triggering workers to flee.

“The reports about shootings, the reports about other abuses are rumours and are not true, it’s been taken out of context. We agreed to work together in order to clarify any issues,” Eat said.

During talks with Thai foreign ministry permanent secretary Sihasak Phuangketkeow on Tuesday, the two countries also agreed to set up a hotline on labour issues.

“We agreed to set up some form of a hotline … to communicate requests for clarification for assistance to facilitate those labourers who wish to return to Cambodia,” the Cambodian ambassador said.

At the main border crossing between the two countries in Poipet – a bustling town home to several large businesses, casinos and hotels – a few hundred Cambodian migrants arrived in Thai military trucks and police cars on Tuesday morning.

“The number of Cambodians returning from Thailand into Poipet (the main Thai-Cambodian border crossing) in just over a week reached 157,000 by this morning,” said Kor Sam Saroeut, governor of the northwestern province of Banteay Meanchey where the checkpoint is based.

Around 20,000 others have crossed the border at O’Smach, a checkpoint some 250 kilometres northeast from Poipet, according to the governor and a senior Cambodian police official.

Thailand’s military regime has denied it has been forcing Cambodian workers out of the country after issuing a warning last week that it viewed illegal migrants as a “threat”.

Gov’t Body Likely To Develop Areas Covered By KL-S’pore High Speed Rail

THE MALAYSIAN GOVERNMENT IS LOOKING TO POTENTIALLY SET UP A SEPARATE ENTITY TO OVERSEE THE DEVELOPMENT OF SPECIFIC AREAS LOCATED ALONG THE PROPOSED HIGH-SPEED RAIL (HSR) PROJECT BETWEEN KUALA LUMPUR AND SINGAPORE.

The project which is slated to cost around US$12,599bil, will connect the cities Penang, KL and Johor Bahru with Singapore and is to be completed sometime before 2020.

The Land Public Transport Commission (Spad) chief executive Mohamad Nur Ismal Kamal has stated that the entity could be a special authority which will look at the socio-economic aspect of the towns.

“The development of these towns located along potential stops or stations of the HSR would be leveraging on the existing economic environment there but we will push up

the value chain slanting more towards high-end industries,”.He said Spad was working on the draft by itself for now, but there

could be a standalone authority to focus on this development as “it’s very important to have everything in concert and coordinated, once the ball starts rolling “This is because the HSR project is expected to be a game-changer for the creation of two mega cities and high value socio-economic clusters in between,” According to Mohamad Nur.

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Special construction court to be setupA specialized construction court will be set

up in Kuala Lumpur and Shah Alam soon to hear construction disputes as demand for projects continue to rise, Chief Justice Tun Arifin Zakaria said.

“Construction cases are unique as they involve technical issues, multiple parties and varying terms of payment. Thus, a specialised construction court would be beneficial to the industry. By having specialised judges, it will help in the speedy disposal of such cases,” Bernama reported him as saying at the opening of the Legal Year 2013 here.

The chief justice said the new court was among several initiatives to enhance performance and work quality.

Arifin said to address the significant increase in the number of cases brought forward to this year in the Federal Court, two Federal Court panels would be sitting every week from March.

He said to enable the Malaysian Bar and the Attorney-General’s Chambers to improve their case presentations in complex cases, an electronic presentation system facility would be used.

Arifin said with the support of the Attorney-General’s Chambers, the judiciary was seriously considering the establishment of a mediation division in the Chief Registrar’s Office to undertake the promotion of mediation amongst litigants.

The chief justice also said that since Oct 16, the Federal Court had started issuing press summaries of the judgment of the court to assist the public in understanding the reasons behind the court’s decision.

He said, it was part of the judiciary’s efforts

to make justice more transparent.Arifin reaffirmed the judiciary’s

commitment to uphold its independence, saying the institution would strengthen itself against any attempt to undermine this attribute.

This would be done through training and closer supervision of members of the judiciary, he said.

“I wish to call upon members of the Bar Council and the public to restrain from corrupting the judges and officers in order to gain favours from them.

“For, in any corruption, there is a giver and a receiver. You all can stop it at your end,” he told some 400 people, comprising judges of the Federal Court, Court of Appeal, High Court and Sessions Court, judicial officers, members from the Bar Council and from the Attorney-General’s Chambers and retired judges at the ceremony.

Arifin said the High Courts and subordinate

courts nationwide had continued to maintain their high performance.

He said the High Courts disposed off more than 120,000 civil and 6,000 criminal cases while the Sessions Courts disposed off more than 130,000 civil and 27,000 criminal cases. The magistrate’s courts disposed off 250,000 civil and more than 134,000 criminal cases.

He said 90.1% of the cases disposed off at the High Courts were within the nine-month timeline set, while the figure was 85.8% in the Sessions Courts. In the magistrate’s courts 81.6% of cases were disposed off within the six-month timeline.

In his speech, Malaysian Bar president Lim Chee Wee said it had pledged its support to the chief justice to combat corruption, adding that it would approach and work with the Malaysian Anti-Corruption Commission whenever there was a serious hint of corruption involving its members or the Bench.

KUALA LUMPUR:The Mass Rapid Transit

(MRT) line between Sungai Buloh and Kajang, has so far absorbed RM8.02bil and is the biggest infrastructure project the Government has undertaken so far.

Three years into the project, which entails a 51-km MRT line, the overall progress rate of the job is 47.63%, with a variation order of RM184.16mil of the value of the contracts awarded so far. Mass Rapid Transit Corp Sdn Bhd (MRT

RM21bil In MRT Jobs Awarded, Project Reaches Half Way Mark

Corp) chief executive Datuk Wira Azhar Abdul Hamid said yesterday that

83%, or RM6.65bil, of the amount paid out was for the work package contractors for the construction work of the line.and the remainder was for payment to the project delivery partner MMC Gamuda KVMRT (PDP) Sdn Bhd’s fees (RM1.03bil) to independent consulting engineers, overheads and insurance.

He added that the company could be issuing some sukuk this year, but believes it would not be a huge exercise.

When asked a question on the possibility of MRT Corp being listed, Azhar said it was not looking at such an option. “We’re not running it as a business.

We’re the owner and developer of infrastructure. We’re not embarking on a (listing).”

Of the overall progress rate of 47.63%, the elevated portion completed is 37.24% while the section of the works has progressed to 63.34%.

To date, 77 out of 85 contracts have been awarded, at a total value of RM21.09bil. He said there were seven contracts, including a car park facility worth some RM300mil, to be awarded.

Currently, there are five tunnel-boring machines in operation along the 9.5-km underground alignment.

MRT Corp project director Marcus Karakashian said for the elevated section, 95% of piling works for the elevated guideway had been completed while 35% of the guideway had been constructed.

Azhar added that the car bodies of the first MRT train set had been

delivered to Malaysia. “Our first train set is now being assembled at the contractor’s assembly plant in Rasa, Hulu Selangor,” he said.

These are expected to be delivered by November to the Sungai Buloh Depot, where they will undergo testing.

The contract to supply the trains went to Siemens-SMH Rail Consortium that had put in the lowest bid of RM1.37bil in a competitive tender.

The contract to supply depot equipment and maintenance vehicles went to a joint venture between Siemens and Hisniaga Sdn Bhd.

On the third Light Rail Transit (LRT 3) line straddling Bandar Utama and Klang, Azhar said the potential delay in the proposed project would not affect the MRT line.

He said the LRT 3 line was still in the early stages of planning.

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INTERNATIONAL NEWS

Japanese Prime Minister approved a $53.5 billion (5.5 trillion yen) stimulus package to repair aging roads, bridges and tunnels, improve the earthquake-resistance of schools, and renovate Tokyo’s National Olympic Stadium for the 2020 Olympic Games, among other projects.

Details of the stimulus such as which firms the government will pay have not yet been announced, however the limited detail available suggests a fairly even split between five areas: corporate competitiveness; disaster and safety measures; recovery from the March 2011 earthquake and tsunami; benefits for the elderly, women and young people; and transfers to middle- and low-income earners to offset the tax hike.

A shortage of construction workers and rising prices for materials have halted some

Japan to stimulate Construction

U.S. home construction rebounded in July, rising to an eight-month high and offering hope that housing has regained momentum after two months of declines.

Construction increased 15.7 percent in July to a seasonally adjusted annual rate of 1.09 million homes, according to the Commerce Department. That was the fastest pace since November and followed declines of 4 percent in June and 7.4 percent in May.

Applications for building permits, considered a good sign of future activity, also showed strength in July, advancing 8.1 percent to an annual rate of 1.05 million, after declines of 3.1 percent in June and 5.1 percent in May. The July rebound reflected strength in single-family home construction, which rose 8.3 percent, and in apartment construction, which was up 33 percent.

The strength in July was led by a 44 percent rise in construction starts in the Northeast. Housing construction was up 29 percent in the South, recovering from a 26.8 percent plunge the month before blamed in part on heavy rains in that part of the country. Sales rose 18.6 percent in the West but fell 24.8 percent in the Midwest.

Economists noted that the July performance was much better than expected, and June was revised significantly higher, both good signs for the future.

Sal Guatieri, senior economist at BMO Capital Markets, said solid job growth and a recent decline in mortgage rates were helping boost construction. But he said weak wage growth and tight lending standards were still depressing activity, especially among first-time buyers.

The National Association of Home Builders/Wells Fargo builder sentiment index rose in August to 55, up two points from a revised 53 for July. That is the third straight monthly increase and put the index at its highest reading since January, when it was 56. Readings above 50 indicate more builders view sales conditions as good rather than poor.

Sales of new homes are running behind last year’s pace. They fell 8.1 percent in June to a seasonally adjusted annual rate of 406,000. A mix of rising home prices, higher mortgage rates and weak wage growth have made it more difficult for potential buyers to buy a newly built home. These factors have particularly depressed demand by first-time buyers.

Home construction in U.S. jumps 15.7%

Construction of seven star hotel in North Korea grinds to a halt

A ‘seven star’ luxury hotel construction project in downtown Pyongyang has ground to a halt, according to multiple sources in North Korea. The construction of the hotel, and a major casino, was abandoned after foreign investors lost confidence in the project, one source claimed. Satellite imagery of the planned hotel, which was rumoured to be a “seven star joint venture with the Chinese” of between 45 – 75 stories, shows the area of the site occupies an area nearly three times the size of the Koryo hotel, one of Pyongyang’s most iconic hotels.

Dr. Antonio Fiori, Korea Foundation Endowment Chair at the University of Bologna, echoed sentiments about the risks of foreign investment in North Korea. “Who would risk their own money by investing in such a problematic country?” Fiori said, citing problems with rampant corruption, energy supply issues and hiring regulations that prevent the use of foreign labor. “Running an investment without engaging in some form of corruption appears almost impossible in North Korea, and of course this puts foreigners off investment. The centralized government can also play a role in this lack of trust,” Fiori added.

Whether demand to fill rooms at the planned Yonggwang Hotel would have ever emerged, however, remains unclear. Despite the absence of a major tourist industry, North Korea has an abundance of hotel capacity in Pyongyang, with at least 12 hotels able to accommodate foreign visitors and a number of others built for local use only.

In 2013 Swiss hotelier Kempinski abandoned a much publicized plan to convert 150 rooms of the pyramid shaped Ryugyong hotel into a luxury hotel. Construction at the Ryugyong, which is 105 floors high, was begun in 1987 and abandoned in 1992. Chad o’Carroll

construction projects, according to Japan News, so the government has urged local governments to import materials and use engineers efficiently.

To speed recovery from the 2011 earthquake and tsunami disaster, the stimulus would create subsidies for the return of evacuated residents, and reactors at the Fukushima No. 1 nuclear power plant would be decommissioned. Other measures to prevent leaks of contaminated water would be taken.

The stimulus spending will not require new borrowing and will instead be financed from existing underspent accounts, higher-than-anticipated tax revenues and lower debt-servicing costs.

The $53.5 billion would equal just over 1 percent of Japan’s GDP, which the government estimates will create 250,000 jobs. Meagan Clark

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INTERNATIONAL NEWS

When a 23-story apartment building in Pyonyang under construction collapsed, officials faced a bona fide emergency. Their response was in some ways predictable: a grudgingly slow and piecemeal confirmation, followed by scapegoating and spin. Three months later, they still refuse to give a death toll, saying only that it was “serious” and that leader Kim Jong Un “sat up all night, feeling painful after being told about the accident.”

Apartment building collapse in North Korea

With a total investment of some 32.1 billion yuan and a construction length of some 294 kilometers, the three highways covered by the agreement are all state highways which will be invested in and constructed under the principle of “overall packaging” and in the mode of “BOT + EPC + local government subsidization”. The agreement’s conclusion is not only another major move of the People’s Government of Yunnan Province to vigorously advance “central enterprises’ entry into Yunnan”, but also the new innovation and practice of CCCC’s investment mode, and a good beginning for CCCC to invest in Yunnan’s infrastructural market and becomes a strategic partner of the People’s Government of Yunnan Province. The project’s completion is of great significance to perfecting the state highway network, improving Yunnan’s transport conditions, accelerating the construction of Yunnan’s “9210” trunk highway skeleton, smoothly connecting Yunnan’s highways to those in South Asia and Southeast Asia, and promoting the fast economic development of Yunnan.

Three highway investment agreements worth 32.1 billion Yuan signed by CCCC with Yunnan

CCCC concluded an investment and construction cooperation agreement with the people’s Government of yunnan province on New kunming-Songming highway, Qujing-Xuanwei highway and Mengzi-Wenshan-yanshan highway. Chen yun, vice president of CCCC and Liu yiping, director of the Department of Transport of yunnan province signed on behalf of respective sides.

Home to more than one-tenth of North Korea’s 24 million people, Pyongyang has always been the focus of development and the prime beneficiary of state funding. Providing better housing for Pyongyang residents, who have a much higher standard of living than other North Koreans, is a key means for the leadership to ensure their support and loyalty.

In the meantime, however, the North’s rush to build continues unabated. Dozens

of large residential projects are underway in the capital, which is also building a new international airport. To a lesser degree, construction is prominent in the provincial cities of Chongjin and Wonsan, which is near the newly built ski resort and is also the proposed site for an underwater hotel.

Ko Jin Ho, director of the factory’s technical department, said more than 4,000 soldiers worked around-the-clock to finish the construction in a mere 180 days. Workplaces in the factory were plastered with posters extolling the virtues of “Korea Speed,” a buzz phrase that has also been frequently invoked for mass mobilizations over the past few months to improve roads and gird irrigation systems and levies against flooding.

Curtis Melvin, a researcher at the U.S.-Korea Institute of the Johns Hopkins School of Advanced International Studies, said managers and workers continue to be rewarded based on whether they are able to complete projects either ahead of schedule or using fewer resources than allocated under the official budget, which can lead to cutting corners at the cost of safety and quality.

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As excitement over World Cup competition in Brazil ebbed in mid-July, Latin American politicians were still busy playing host to China’s President Xi Jinping, who dashed through Brazil, Argentina, Peru and Venezuela signing deals for about 150 projects worth some $70 billion. They included construction of a metro rail in Brazil and several projects in Argentina worth $7 billion.

“We know that cooperation with China has not brought us debt, but greater development,” Venezuelan President Nicolas Maduro said after shaking hands with the Chinese president over a bouquet of deals, including a $700-million gold exploration project and a cash offer of $4 billion.

According to the China-Latin America Finance Database(a collaboration between the Inter-American Dialogue and the Global

China Latin America’s Construction Romance

Economic Governance Initiative at Boston University), China has provided more than $100 billion in loan commitments to Latin American countries and firms since 2005. China’s loan commitments of $37 billion in 2010 were more than those of the World Bank, Inter-American Development Bank and U.S. Export-Import Bank combined.

Xi’s Latin American success suggests that China is extending its African romance to other parts of the globe. It follows a surprise decision by Uganda to invite only a Chinese contractor to bid on an $8-billion rail project in May while excluding U.S. companies from competing.

These successes might seem surreal to western contractors, who regard Chinese construction services providers (CSPs) as backward entities lacking sophisticated project management and technological

capabilities. What is more, the Chinese government consciously keeps them isolated from Western companies with the use of legal barriers against collaboration.

Lobbying for a larger role, the “Construction Position Paper” of the European Chamber of Commerce in China said, “Many Chinese CSPs are in huge need for professional teams which possess international qualifications and are familiar with the best practices of international construction market. The lack of such international qualifications and expertise has, to some extent, acted as a barrier to prevent Chinese CSPs from competing for top-level international projects.”

But it seems China’s state-owned construction companies are doing quite well without these advantages. Chinese firms such as China Railway Construction Corp. have other qualities that U.S. or European companies would not be able to match. “An important reason for the successes of Chinese companies is the fact that they often offer lower costs with the same good quality,” He Weiwen, a professor of economics at Beijing’s Renmin University.

A deal signed last May between Kenya Railways Corp. and China Road & Bridge Corp. for laying a 609.3-kilometer section of track from the port of Mombassa to Nairobi exemplifies the Chinese approach to African infrastructure projects. According to coverage of the agreement in the magazine Ventures Africa, CR&BC agreed to provide 5,000 trained Chinese workers, and the China Exim Bank and the Kenyan government will share costs in a 9-to-1 ratio. Saibal Dasgupta

Less than five years after works began on Crossrail, , Europe’s largest infrastructure project, the new high frequency, high capacity railway link connecting east and west London, the project reached the halfway point of its construction.

Crossrail now over halfway its construction programme

Prime Minister David Cameron, Mayor of London Boris Johnson and Crossrail Minister Stephen Hammond marked the occasion by visiting the £14.8 billion infrastructure project, Europe’s largest, going 25 metres below ground to view progress at Crossrail’s Tottenham Court Road site. The station will be a key interchange with London Underground when trains run through central London from 2018.

Prime Minister David Cameron said: “Big infrastructure projects like Crossrail are vital for the economy of London and the rest of Britain. They are the foundation-stone on which business can grow, compete and support jobs – a massive 55,000 jobs in the construction phase of this project alone.”

London’s population is set to grow from 8.4 million today to around 10 million by 2030. UK Government, the Mayor of London and Transport for London are investing in Crossrail and other transport infrastructure to support access to jobs, education, housing and to boost economic growth.

During 2014, Crossrail’s major civil engineering and tunnelling works will conclude and the focus will shift towards station construction, fit-out and implementing railway systems within the tunnels and stations. The train operator will then test and refine the systems before trains run from 2018.

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China has undertaken ambitious construction projects around the world Photo: AFP/GETTY IMAGES

INTERNATIONAL NEWS

Six giant Chinese projects shaping the world

An ambitious plan for a £23 billion canal through the heart of Nicaragua is only one of China’s huge infrastructure projects around the world. In recent years, Chinese companies have begun a huge wave of construction that is already reshaping the world. Here are six of the most ambitious projects.

£18.7 billion - China-Pakistan economic corridor

An enormous project to connect Gwadar port in southern Pakistan to the west of China involves roads, railways and oil and gas pipelines and will eventually give China a highly-coveted port in the Indian Ocean. When the corridor is finished, it will serve as the main gateway for trade between China and the Middle East and Africa. Control of Gwadar port was transferred to China’s state-owned Overseas Ports Holding company in February 2013. Earlier this year, a plan to build an airport at Gwadar was also agreed, as well as the laying of fibre-optic cables between the Chinese border and Rawalpindi.

£7.6 billion - Nigeria’s high-speed railwayIn May, China Railway Construction

Corporation inked a £7.6 billion contract to roll out an 860-mile high speed railway across Nigeria for trains travelling at 75mph. So far there have been no details on the route of the line.

£6.5 billion - Algeria’s East-West Highway project

First launched in March 2007, an ambitious project to build a six-lane toll road across Algeria has been hit by

confusion, allegations of bribery and delays for workers’ salaries.

China Rail Construction Corporation and CITIC won contracts for parts of the highway, while a Japanese consortium also won a construction contract. When finished the highway will run 756 miles from the Moroccan border to the Tunisian border, connecting Algeria’s coastal cities.

£1 billion - Baltic Pearl ProjectOn the coast of the Gulf of Finland, south-

west of St Petersburg, China is building a new town for 35,000 residents. With £1 billion of investment from the Shanghai Industrial Investment Company, the project was scheduled to take six to eight years but has slowed since the financial crisis. When finished, the town will have 14,000 apartments, five schools and nine kindergartens, as well as shopping centres, restaurants and cinemas.

However, there has been criticism of poor conditions for the construction workers and traffic and access problems getting to the town.

£880 million - West Texas wind farmIn 2011, Shenyang Power Group (SPG)

signed a deal to develop a 36,000 acre wind farm in West Texas, one of the largest in the United States. Chinese-made turbines will power the plant, funded by a £880 million loan from China’s Export-Import Bank.

£750 million - Nigeria’s Zungeru hydroelectric power plant

Last July, on a visit to Beijing, Goodluck Jonathan, the Nigerian president, agreed a deal to build a 700MW dam on the Niger river, roughly 90 miles from Abuja. Construction will take five years and three- quarters of the cost will be loaned by China to Nigeria for 20 years at 2.5 per cent interest. Malcolm Moore, and Adam Wu

China planning construction of high-speed train to the U.S.

The Beijing Times claims China is considering building a high-speed train that would connect China’s northeast with the United States. The project would cross Siberia and the Bering Strait to Alaska, and then go across Canada into the United

States, according to the English-language report published in the state-run China Daily.

To cross the Bering Strait into Alaska, the railway would need a 200 kilometre underwater tunnel, which implies it would be around four times the length of the tunnel that crosses the English Channel, notes a very skeptical Washington Post article on the report.

China Daily claims that the technology to construct such a long underwater tunnel already exists and will be used to build a tunnel to connect China’s Fujian province with Taiwan. “Right now we’re already in discussions. Russia has already been thinking about this for many years,” said a railway expert cited by the Beijing Times, according to the Independent’s report on the story. The train would reportedly travel at around 350 kilometres per hour, meaning the entire trip between the United States and China would take around two days.

What is being called the China-Russia-Canada-America line is one of four large-scale international high-speed rail projects the country wants to build, the Guardian writes, citing the Beijing Times:

The first is a line that would run from London via Paris, Berlin, Warsaw, Kiev and Moscow, where it would split into two routes, one of which would run to China through Kazakhstan and the other through eastern Siberia. The second line would begin in the far-western Chinese city of Urumqi and then run through Kazakhstan, Uzbekistan, Turkmenistan, Iran and Turkey to Germany. The third would begin in the south-western city of Kunming and end in Singapore.

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Egyptians’ pyramid construction secret revealed

Photo: Hassan Ammar, AP

When you picture Egypt’s pyramids rising over the country’s sands, your vision likely doesn’t include water. It should, according to a new study published online. University of Amsterdam researchers found that ancient Egyptians employed what Phys.org calls a “clever trick” to facilitate the pyramids’ construction: They likely wet the sand along the path they dragged their sleds, which were laden with pyramid stones weighing some 2.5 tons.

This greatly lessened the power needed to pull the sledge from the quarry to the construction site—so much so that the number of people needed to pull the sledge could be cut in half. Assuming the right amount of water was used, that is.

As the researchers write, “liquid bridges start to form between the grains when water is added. Once there is enough water, these bridges act like glue, keeping the grains in place. When the “correct amount” of water is applied, the wet sand becomes about two times as stiff as dry; this prevents the sand from amassing in front of the sledge, which allows it to glide more easily. But add too much water and those bridges “start to merge and disappear.”

This trick was “staring [researchers] in the face all along,”. A wall painting found in an Egyptian tomb shows slaves hauling a sled loaded with a huge statue; in front of them is a person pouring water into the sand. Kate Seamons

Canada’s Mall construction slows

Drawing of Nordstrom at Sherway Gardens: shopping centres are focussed on becoming retail ‘destinations.’

According to research by commercial real estate company CBRE Group, more luxury retailers are predicted to arrive in Canada, albeit at a more moderate pace compared to the flurry of activity seen in the last three years.

The aftermath of the 2008 financial crisis and recession spurred a boom in retail development with foreign retailers, primarily American ones, turning their sights to Canada and construction hasn’t kept up with demand.

The study, which measured the number and type of retailers that set up shop in 2013, found that luxury and high-end fashion brands constitute the majority of new arrivals in Canada.

In Toronto, top-tier malls Yorkdale and Sherway Gardens are simultaneously undergoing multi-million dollar expansions to accommodate a new anchor tenant, the

upscale U.S. department store Nordstrom.For Yorkdale, it’s the second expansion

in four years. In 2012, the mall underwent a $220 million renovation, adding 145,000 square feet to its footprint. The new wing, set to open in 2016, will add 298,000 square feet.

Meanwhile, in Vancouver, the Pacific and Oakridge Centres are getting bigger (adding 578,000 square feet and 373,000 square feet respectively); Calgary’s

Chinook Centre is expanding (140,000 square feet) as well as Ottawa’s Rideau Centre (230,000 square feet).

While stagnant wages, inflation and consumer debt have kept many shoppers just browsing, the appetite of well-heeled shoppers for luxury goods is still healthy. Canadian malls also tend to be more productive than American ones, with sales per square foot averaging $600 versus $450 in the U.S. Alexandra Bosanac

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INTERNATIONAL NEWS

Alberta leads Canada construction

A new report released says Alberta will lead Canada’s construction industry through the next decade, with major new oilsands projects and residential work driving job growth in virtually every year between now and 2023.

BuildForce Canada’s 2014-2023 Construction and Maintenance Looking Forward forecast said the pace of expansion has resumed, with construction employment across all markets growing past the 2008 peak by 2013.

Major resource and engineering projects lead non-residential job growth in every year over the next decade. The start-up of new major oilsands projects this year and hiring related to flood damage repair will boost hiring in 2014.

The report said Alberta will need to replace up to 45,000 workers, as up to 22 per cent of its workforce retires over the next decade.

It also said that Alberta leads the demand for skilled and specialized labour in major projects across Canada: the oilsands industry matures and capacity grows larger, shifting employment from new capital projects to increased ongoing maintenance work and sustaining capital projects over the long term; industrial, transportation, electricity generation and transmission and pipeline work add to labour demands with most of the current scheduled projects adding jobs from 2015 to 2019; commercial and institutional activity grows slowly from 2016 to 2019 and then provides a steady increase in jobs from 2020 to 2023; and residential construction spending and employment will exceed the 2007 peak, with a rise in renovations and repairs. Mario Tonegu, Calgary

European Spallation Source to start construction

Artist’s conception of the European Spallation Source.Having secured about 97.5% of its

construction money from 13 member countries, the European Spallation Source (ESS) has announced that it will break ground in Lund, Sweden, in the fall—more than a year later than first planned. “We are thrilled to be able to move ahead,” ESS Director-General Jim Yeck said in a statement.

In February 2011, ESS’s 17 partner countries agreed to work together on the project, but each government then had to negotiate its contribution individually. “Each

country went through its own independent process of deciding to join, and fund ESS, and that takes time.”

ESS’s announcement came on the same day as Germany said it would pony up 11% of the construction’s €1.8 billion price tag, plus €15 million a year for operating costs thereafter. This was the tipping point to get the construction going, after similar agreements with other member countries in recent months. (The United Kingdom agreed in March to cover 10% of the costs, and Spain said in February

that it would pay a 5% slice. Sweden, the main host country, will foot 35% of the bill.)

Peter Tindemans, secretary-general of the European researchers’ organization EuroScience, says tight finances partly explain why it took so long to complete the negotiations. Last month, for example, Germany withdrew from the Square Kilometre Array, a giant international radioastronomy project, seemingly because of “difficult national financial circumstances.” Another reason for the delay is that countries provide in-kind contributions and not only cash, which makes the negotiation process more complicated, Tindemans adds.

ESS is a European project to build a high-power neutron source, producing very bright neutron beams to study the fine structure of materials. Instead of a nuclear reactor, ESS will use a proton beam colliding with a metallic target to produce the neutrons—a process known as spallation. The first experiments are expected to begin in 2023, with up to 3000 visiting scientists using the facility every year.

At the moment, ESS is a public company owned by Sweden and Denmark. It has applied to become a European Research Infrastructure Consortium, which would be owned by all the member countries and enjoy privileged conditions, including tax exemptions. Tania Rabesandratana

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COVER STORy

“My brother Jorge who was taking electrical engineering urged me to study civil engineering”---- David M. Consunji

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His beloved Tia Nena is the illustrious Dr. Maria Paz Mendoza Guazon–the

first woman to graduate from the U.P. College of Medicine. She was also known for her researches in pathology and was known for her philanthropic work.

Heeding the advice of his father, Tia Nena and older brother Jorge, the young David enrolled at the University of the Philippines to study civil engineering. “My brother Jorge who was taking electrical engineering urged me to study civil engineering,” says Consunji.

David M. Consunji:

By: Rizal Raoul Reyes

Builder par excellenceConstruction magnate David Mendoza Consunji originally wanted to become a soldier. After his graduation from high school, he took the entrance examination and passed for a four-year military science career at the Philippine Military Academy, However, his father and Tiya Nena objected to his chose career citing loneliness while studying in Baguio and the unstable career in the military.

World War II interrupted his studies in UP. He says the most tragic experience in the war was the death of his oldest brother Jorge, acknowledged by Consunji as the “brightest and kindest” of the Consunji children. “Being a brilliant student, Jorge was immediately invited to teach in the college of engineering and immediately became one of the top students of his class,” Consunji recalls.

Jorge inspired him to study engineering.

He recalls his UP days both with fun and lonely experiences.

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COVER STORy

excited to tackle his new job, he also realized the huge responsibility of making a sturdy.

Consunji finished the Marcelo project in 10 months and proud of his first building project as he was there from conception to the pouring of the very last pound of reinforced concrete.

Building owner Peping Marcelo was impressed and raised his salary to P600 a month. However, Consunji says the Marcelo project was his first and last design project because of the anxieties that the building has to withstand a strong earthquake,

He recalls there were tense moments whenever he visited the Marcelo building once a month for checking. He only stopped after two years of monthly visits because the Marcelo building was razed by fire and was demolished.

The rise of David

Gradually, Consunji’s reputation as a no-nonsense builder grew and he started to get several projects. Interestingly, his first big project was a product of luck and timing.

“I am a fortunate person. One Sunday morning, a Coca Cola official in the Pandacan plant came to our house apologizing for digging a portion of our vacant space so they could connect a pipe to the plant. While we were conversing, he told me that he knew my parents and asked me if I am interested to join the construction of the Coca Cola plant in Tacloban. I immediately said yes and quickly organized my manpower for the project,” says Consunji.

“The Tacloban project was my first big project. It was worth less than P400, 000 in 1951,” says Consunji.

The project took one year to finish instead of the regular two years. This impressed San Miguel top honcho Don Andres Soriano who later asked him to build the San Miguel head office located in the corner of Ayala Avenue and Paseo de Roxas (now the site of Enterprise building).

“My family ties with Don Andres go a long way. My maternal grandmother and his mother were close friends,” recalls Consunji.

Admitting that he was an average student, Consunji says he sometimes had to study harder in some of his subjects. He admits the liberal campus atmosphere enabled him enjoy the camaraderie and student life.

Consunji finally graduated in 1946 and passed the board on the same year. After passing the board examinations, he married his college sweetheart Fredesvinda Almeda on March 9, 1947. Mrs. Consunji graduated with a BS Pharmacy degree also in UP in 1946.

After graduation, his Tia Nena asked him to work for her as a maintenance manager for her projects. “She had the bad habit of always supporting us,” Consunji jests.

While doing his aunt’s projects in repairing houses, Consunji was offered by his cousin Ricardo or Carding, also a UP-trained civil engineer to join him in his construction business. The experience was valuable for the young David as Carding taught him to lay out a building site and other important details of construction.

After his apprenticeship with his cousin Carding, Consunji worked as concrete inspector for the Kuenzle and Streiff building on Dasmariñas Street in Binondo, Manila. The job earned him a P400 monthly salary, a huge increase from the P100 that he used to earn when he was a teacher in Bataan.

The job enabled Consunji to learn the ropes on how to use concrete properly to ensure the strength of the building, executing the architectural plans and pouring of the

foundation. Furthermore, Consunji also developed the important skill of building teamwork and rapport with the workers

That stint impressed on the young engineer the basics of construction and how the margin of error increases dramatically when the work is done by hand. The inconsistencies that necessarily go together with manual methods meant that some aspects of construction met the standards while others did not. Consunji also says in his memoirs that the early experience with the Kuenzle and Streiff people gave him the opportunity to work closely with the carpenters, masons, electricians, plumbers and the rest of the construction crew. He stresses that builders must be able to relate well with the workers.

He also learned the value of punctuality while with the Swiss officials of the company.

“On my first day, when I came in at seven in the morning, the top Swiss manager said that I was late. He said I was a member of the management staff and so I should come in 15 minutes early, so that I could address all the people under me. Of course, I was a bit embarrassed. In the Philippines, arriving early is unusual, but to the Swiss, it was just pure professionalism. It was a lesson that I never forgot. Since that day, I don’t think I have ever been late for any of my engagements or appointments,” stresses Consunji.

After his stint with the Swiss firm, Consunji realized that his calling is to be a builder of structures. To beef up his construction arsenal, he bought a one-bag concrete mixer for P500 and a slide rule. He recalls a major contractor offered to buy his mixer for P3500 after he did some refurbishing. “I politely declined the offer because the concrete mixer would help in my future projects.

In 1948, he was hired by Marcelo Rubber Company in Malabon for a monthly salary of P500 to build a four-storey structure for the company. While admitting he was

“With the help of the insight of our people, we have gone a long way and don’t have much regret.”

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In 1954, Consunji established D.M. Consunji Inc to cope with the growing demand with P3 million in authorized capitalizations.

As usual, his Tia Nena advised him to deal fair and square with his clients because contractors during those times had a bad reputation, “I assured Tia Nena I will not put the Consunji name in a bad light,” says Consunji.

Luck also complemented Consunji’s skill as a builder. While building the Chapel of the Holy Sacrifice or simply called the UP Chapel, Ayala executive and artist Fernando Zobel was impressed by the work of the stellar team doing the project. Aside from Consunji, the group included luminaries such as Leandro Locsin (architect), Dean Alfredo Juinio (structural engineer), Napoleon Abueva (sculptor) painter Vicente Manansala (painter) Arturo Luz (artist).

Zobel immediately invited the team to join in the development projects in Makati. Locsin would be the architect; Juinio the structural engineer for the buildings and then Consunji for the construction.

In 1959, the troika of Consunji, Locsin and Juinio built the seven-storey Monterey Apartment on Ayala Avenue–the first high structure in the Makati business district.

That was start of the involvement of D.M. Consunji in landmark projects in Makati and other areas within and outside the Philippines. As they say, the rest is history.

With more than five decades of solid track record in the construction business, DMCI enjoyed the continued patronage of institutional clients such as the Ayala Group, SM Group, Kuok Group, Robinson’s Group, San Miguel Corporation; banking institutions such as the Citibank, N.A., BPI, Equitable and Urban Bank; educational institutions such as the University of the Philippines, and De La Salle University; multinationals such as the John Laing, Obayashi,

Mitsubishi Heavy, Oriken, Nippon Steel. In the 1970s and 1980s, DMCI was also

active in overseas projects such as the New Istana (Royal Palace) of the Sultanate of Brunei, the Salim-Halban Highway, and several ARAMCO facilities in Saudi Arabia, bridges in Kuwait, irrigation projects in Iraq and many others.

DMCI was also the preferred choice for the building of high-rise and commercial buildings in the Philippines, especially in the Makati and Ortigas centers, two of the country’s premier financial districts

In infrastructure, DMCI’s portfolio includes fast-track projects such as the Carmen Bridge, the one-kilometer Magat Bridge, the Gibong Diversion Dam, and the Narvacan Power Transmission Lines, the three interchanges on Manila’s main thoroughfare and recently, the Trackworks on LRT-2 and Chiquita Unifrutti Wharf and Cold Storage Plant.

In the industrial sector, the major works of DMCI include Five Semiconductors Facilities namely, Intel, NEC, Analog Device, Motorola and Philips; Enron Power Plant in Subic and Pinamucan, Batangas and recently the Panay Power Plant and Dingle Power in Iloilo.

Foreign governments and corporations

have likewise tapped DMCI for large-scale projects such as the US Navy hangar in Subic. In addition, DMCI has constructed or has served as a significant contractor in a number of projects abroad.

For excellence in contracting, DMCI was awarded in 1992 “Outstanding Contractor in Building” at the inaugural Philippine Construction Industry Awards.

In addition, DMCI has received a certificate of appreciation from the U.S. Department of Navy and Safety Awards from Fluor Daniels Corporation for two

million accident-free man-hours at the Shell Petroleum Corporation’s STAR project.

Consunji, who also served the Secretary of the Department of Public Works and Highways in 1971 to 1975, was one of the four awardees of The Outstanding Filipino (TOFIL) of 2002, Papal awardee of Knighthood of Saint Sylvester in 1988, Doctor of Laws, Honoris Causa by the University of the Philippines in 1988, Meralco Awardee in Engineering and Applied Science in 1994, Management Man of the Year Awardee in 1996 and the University of the Philippines Alumni Association Lifetime Distinguished Achievement Awardee for the 2005,

for his invaluable contribution to the development and progress of the country.

The 92-year old chairman of DMCI acts a mentor to his younger workers to remain sharp and efficient. “I always tell my boys that we’re competing and be sure to last in actual combat,” says Consunji.

“In the kingdom of the blind, the one-eyed is the king,” adds Consunji. “The magic of construction is given to the people who deserve it,” he points out. Just like a leader who appreciates the efforts of his people, Consunji is all praises for his people for helping him build DMCI into its lofty position. “With the help of the insight of our people, we have gone a long way and don’t have much regret.”

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mARkETINg mANAgEmENT

How to Develop Marketing Strategies for Construction ServicesPrepare a strategy and marketing plan focused on growth.

Marketing construction services is essential to help business grow. A clear marketing strategy will enable your business to have a competitive advantage as you focus on market sectors that promise growth. Market conditions are always in a flux and construction business is no exception. There are different growth rates of growth in residential, public, retail, civil engineering and office building sectors. It is vital that you identify these sectors that you wish to compete. Here are six suggested steps that can help you develop an effective marketing strategy that will place your company above others:

First, focus on the sector of the construction industry that shows best potential for growth. Since construction development is directly proportional to business growth in general, monitor economic trends and study industry research to make your strategy in line with the prevailing business environment.

The next step is to search for opportunities in niche areas where you have specialist skills. Studies have shown that firms offering specialized services win nearly twice as many bids as these offering general construction services. Specialization allows you a competitive advantage, which means fewer competitors; particularly in jobs you develop a reputation as an expert.

Then as third step study the strengths and weakness of your company and develop a plan to strengthen these areas you are weak. Use the study to also identify the opportunities and threats you face in business. Concentrate on improving these areas of business that allow you to undertake more profitable

projects. Determine your capabilities when compared with your competitors to provide a benchmark for development.

Fourth, study the factors that differentiate your business. When bidding, emphasize these factors that are important to the project, like speed of completion, use of sustainable building techniques, or use of new design techniques or materials, etc. Emphasize your special skills and experience to move away from decisions based purely on price.

Then design and maintain an effective website as your fifth step, where you are able to provide comprehensive information for potential clients carrying preliminary research. Let your website contain detailed information on your company’s skills and experience as well as areas of specialization and capability and details of successful projects.

Last but not least, create a communications plan to target existing clients and new prospects as your sixth step. Set up an electronic newsletter to inform prospects and customers of developments on your company. Make sure that prospects have an up-to-date profile of your company. Keeping in contact enables your company to be short listed for possible jobs in the future.

Strategy and OperationsStrategy is like a road map to get you

from point A to point B, a top level set of directions for achieving the objective. While on the other hand, operational plans are details like what car to drive, who will drive, for how long, how much is required, places to stop along the way, etc., from point A to point B.

Marketing is made of four factors: product, price, placement and promotion. Top management normally points the direction for developing marketing strategies. Executives that makeup top management would normally include the chief executive officer, chief financial officer, and vice president of marketing. The operations plan is developed from the strategies in place. Increasing online and offline visibility of the company could be part of the promotions plan of the strategy and establishing a spokesman as an expert. The operational plan takes from the strategic plan and assigns the tasks that need to be completed, when it should be completed and the people that shall complete it.

Marketing strategies are long term while operational plans are short term. After marketing strategies are developed they are maintained until possibly modified or changed only in future strategic planning sessions. Operational plans implemented under the marketing strategies developed are monitored regularly to determine their effectiveness, at least on a monthly basis. Areas or actions that perform effectively well are encouraged with more resources given to it. It should be remembered that marketing takes time. Acquiring followers in Twitter, friends in Facebook and circles in Google could take a few

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months; however operational plans are implemented one day at a time.

Schedule of press releases and assignment of responsibility for writing, preparation and distribution to staff is the responsibility of the director of publicity who is also responsible for setting up marketing programs through Twitter, Google and Facebook. The PR department is responsible for keeping up with what is happening in the media, expanding its contacts and reacts to requests for interviews, as well as write press releases. These activities are all based on the operational plan inasmuch as the strategic plan once developed is set.

Though the strategic plan is not subject to revision it does not mean that it is not reviewed from time to time. The market is in constant flux with rapid changes. What was true and effective at the beginning of a strategic plan may no longer be correct. Competitors come on line, search engines change their algorithms, new social networks appear and new media is introduced.

Executing a marketing strategy sets your company apart from competitors. Your tools and tactics to create and build relationships with targeted prospects is based on strategy. When your strategy, tactics and tools are well aligned your marketing will build healthy expectations on your prospects and customers minds. It will inform about your brand’s ability to

satisfy their needs that competitors are not able to.

Marketing strategy is the big picture plan. It identifies and defines your prospective customers and the marketing message that will place your brand ahead and above competitors. Study and understand factors that impact on your customer’s decisions and behavior. Check on what your competitor is offering, lifestyle trends, and emerging technologies which can help you create and execute a workable strategy. A well researched strategy that is well prepared and with measurable results, yet is clear enough to be understood when explained to all staff, has greater chances of achieving success.

TacticsMarketing tactics are these specific

elements that support the overall marketing strategy. Effective tactics takes planning and resources and should be aimed at acquiring more new customers and strengthening of current ones. For example, if you were marketing to teenagers and wish to increase your market share by 50%, your tactic could include launching a series of videos that would appeal to that age group that is cool enough to go viral or you will also establish promotional partnerships with non-competing local business serving the teen market. Tactics are actions that can be changed as circumstance change

within the structure of the more permanent marketing strategy.

Promotional tools carry your marketing message in front of potential customers or the people engaged by your marketing tactics. Traditional media tools like TV, radio and print media are effective in certain types of products. Or perhaps your customers might be mainly online. The tools to use are those where your customers are found to best respond and offer highest return for your budget. For example, if you find that most of your new prospects during the last quarter came from your Facebook compared to newspaper ads, you might drop newspaper advertising in favor of more social interaction.

Alignment is importantEvery part of your business could

and does contribute to your customer’s experience. A well aligned marketing strategy, tactics and tools will send a clear and consistent message that will create the customers experience. Getting feedback from customers keeps you informed on what works and what is out of alignment. Delivering a customer experience that is more than your marketing promise will get customers to continue buying your products and services.

Based on articles by Ian Linton and Christian Fisher, Demand Media

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FINANCE mANAgEmENT

The Benefits of Construction Leasing to Maximise GrowthConstruction is a big industry in practically all countries in the world. As one of the key industry it requires massive amounts of capital. One of the major areas requiring large amounts of capital is the need for good and safe heavy construction equipment.Old, out of date equipment are not only subject to frequent breakdowns but also could cause accidents, which could prove very expensive for construction companies. Thus the concept of leasing becomes very attractive.

Business owners, project managers and general contractors in the construction industry know that heavy equipment is expensive and requires large capital outlay. The advantages and potential financial risks of acquiring new or used equipment should be well understood before any decisions are made and as with any large financial investment, every detail requires to be thoroughly studied and double-checked.

When a construction business needs to acquire new or used equipment, everyone involved needs to know what the best options are. That’s because heavy equipment tends to depreciate the more it is used and the older it gets. To

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save money and preserve credit lines, many construction companies are opting to finance their heavy equipment instead of making a cash purchase or taking out a business loan.

Construction companies lease large amounts of equipment and machines, particularly heavy equipment like loaders, tractors, excavators, rollers, bulldozers, and so forth. By leasing instead of buying, companies do not have to make big capital payments. This is advantageous not only financially but also in terms of productivity and safety since construction companies will be able to turn over machinery faster with no machine over 2-3 years old. This not only also maximises productivity but also usually provides tax advantages.

Leasing construction equipment is essential in construction business with most companies leasing rather than purchasing brand new equipment. Leasing reduces capital costs and provides a safeguard against downtime due to equipment breakdown. This allows construction companies to grow rapidly. Below is a summary of several types of leases that construction builders need to consider when planning equipment financing. Find the best leasing option by studying the various options that are available and the benefits of each kind.

Fair Market Value LeaseFair value Lease (FVM) is one of the

most common lease agreement used in business. This type of lease allows the business owners the option of returning the equipment, renewing the lease or purchasing the equipment for its current market value. This type of lease is favoured when acquiring equipment that will quickly depreciate in value. For example, heavy equipment that is used continuously in order to finish a project on time and its repeated use will result in rapid depreciation and usually costly repairs. With FVM lease program, construction business owners are able to upgrade to new units of heavy equipment in an easy and cost effective manner that does not require much capital outlay

Buyout LeaseA Buyout Lease is where the lessor

have the option to buy the equipment at the end of the lease period for minimal agreed amounts. This type of lease is

often selected by construction builders who are planning to retain the leased equipment at the end of the lease period. Large capital outlays is replaced with small lease payments allowing companies to allocate funds for other business initiatives

Selecting a Buyout Lease allows lessees the option to purchase the leased equipment for minimum payment at the end of the lease’s conclusion. This is a popular choice for lessees who are planning to retain the leased equipment at the conclusion of the agreement. General contractors who plan on keeping heavy equipment for long periods of time (after their lease ends) often choose the buyout lease. Smaller lease payments, compared to making one large purchase, free up working capital and allow construction companies to allocate funds for other business initiatives.

Wrap LeaseConstruction contractors wishing

to lease new equipment often choose a wrap lease. Lessees are able to consolidate their remaining payments and roll them over to a new lease with the additional new equipment. Construction business owners wanting to acquire new equipment choose this lease option provides to simplify the process. For example, if a construction contractor needs a new bulldozer, they can be financed with an existing lease to consolidate multiple payments into one regular payment. This option is chosen when bigger and sturdier equipment is sometimes needed for highly specialized or involved projects. Also at times when

unexpected equipment malfunctions occur with existing equipment and new machinery is immediately needed.

Refinance programConstruction business owners

desiring to refinance hard equipment (excludingsoftware, leaseholds or obsolete equipment) are able to do so with a refinance program. Payment history will be checked and normally minimum amounts to be refinanced. Of course, this amount will vary depending on the equipment financing company selected since prices for machinery and vehicles run into the hundreds of thousands of pesos and beyond. This type of lease program allows construction businesses the convenience of payments that are more manageable given their budget parameters.

Sale LeasebackConstruction companies that recently

purchased new equipment may choose a Sale Leaseback program. This type of lease program allows construction builders to sell equipment to another company and then lease it back making regular payments. This enables the company to raise capital while retaining the use of the previously owned equipment.

Knowing the various ways of leasing equipment allow construction builders and construction professionals to make more knowledgeable decisions regarding their capital business needs and equipment capital needs. Based on articles by Matt Remuzzi and Balboa Capital for ConstructionPros

www.celltowerleasebuyout.com

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PRODUCTS & TECHNOLOgy

TrIMblE GCSFlEx For ExCAvATorS

Trimble GCSFlex for Excavators is a simple, entry-level technology for that provides the operator with visual guidance of the position and angle of the

This 2 in 1 Adhesive & Grout bonds and grouts your mosaic tiles all in one step. ABC recommends using the thinbed method application for faster, professional and lasting tile installations. The 2 in 1 mortar is economical because it saves time and labor costs. Made of high quality portland cement, natural fillers and selected chemical additives, ABC 2 in 1 is an eco-friendly product that assures lasting adhesion. To meet the demands of the Philippine market, ABC 2 in 1 also comes in color white to beautify and brighten your tiles at the same time.

A pioneer in modern tiling technology, ABC Phil. Inc. Inc has developed the latest building solution for a faster and more convenient Mosaic Tile Installation.

INNovATIvE TIlING TECHNoloGY

PP-R PIPES AND FITTINGSFor Hot and Cold Water

Advantages:• Resistant to corrosion• Leak Proof• For hot and cold Water• Can be connected to any other material used in existing installations• Easy installation• High Impact strength and flexibilityPP-R Pipes and Fittings Manufacutured by Tanay Industries Corp. For more informa-tion contact LYS Marketing Corpora-tion with Telephone No.: (632) 4122452; 4127155

bucket, stick, boom and body. This can be used with laser catchers for excavation of basements, foundations, and footers; trenching with flat bottom or simple slopes; grading of embankments; profiles of canals and batters; and layering. This is ideal for site development, utilities and public works.

Excavator owners can increase productivity - even less experienced operators become more productive, more quickly. It allows the operators to increase accuracy, avoid rework and perform higher quality work. Installation and calibration takes only 2 hours. No expensive tools or welding are required. The whole system fits on a case.

Trimble GCSFlex is distributed by SITECH PHL Inc. Contact ([email protected] to schedule a demo) or visit www.SITECH-phl.com

HYDrAulIC brEAkEr bRACKET-SIDE

Specially Designed and develop to be mounted on excavators across Asia.

- Suitable for mobile transport with base machine

- Very Low operating cost- Develop design without side bolts- Maintenance simplicityFor more information, call Ecomac

Equipment & Dev’t. Corp. Tel. Nos. +63 02 372-7106 +63 02 374-3351 to 55 loc. 12 & 13 website: ecomac.com.ph ; email: [email protected] ; [email protected]

GrATINGS/PlATForMSFeatures: Anti Thief, Light weight/low installation cost, Corrosion/Fire Resistant, Very Low noise on impact payload, Many colors available, Bearing and Load Standard.

Serial No. Application Capacity1 Walk Platform 2kN/m2 equivalent uniformly distributed load. 2 Platform between 3.5 kN/m2 Equivalent uni stairs formly distributed load.3 Overhaul Platform 4kN/m2 equivalent uniformly distributed load.4 Staircase Tread Proposed by the clients.Exclusively Distributed by: D.B. International Sales & Services, Inc. for more information call Tel. No.: (632) 723.4460 to 64 or visit www.dbiphil.com

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101 PARENDUIT is a skim smoothing rendering paste to be mixed with cement or gypsum for levelling uneven surfaces and filling small bubbles in concrete surfaces. A smooth surface is obtained by eliminating blemishes such as grooves, seams and rock pockets.

USES: Interior / Exterior, Reinforced concrete; Precast concrete panels; Traditional rendering mortars.

Interior only: Lightweight concrete or lightweight block. Gypsum board (in gypsum mix).

For more information call PAREX Group Inc. Tel. (632) 672 1708 Fax. (632) 672.17.07 e-mail: [email protected] or visit http://www.parexgroup.com.ph.

lANko 101 PArENTDuIT

Superior protection that requires no priming:

• Maximum corrosion protection

• Applicable floor to ceiling,• Less prep and application

time• VOC compliantFor more information

Contact Holz Coatings Int’l. Inc. at Tel. No.: (+632) 6425022; (+632) 5702491 e-mail: [email protected], visit www.holzcoatings.com

9100 SYSTEM

Tokina® 3 in 1 rechargeable lED Flashlight Trl-001Features:• 3 in 1: Flashlight, Emergency Light & Sensor

Night Light• 14+6 super bright LEDs• Comes with AC plug-in contact-less charging

base• Automatically turns on when there is power

failure• At night, lights up when motion is detected (IR

motion sensor)• Modern, minimalistic design• Lithium-ion battery lasts for up to 8 hours

depending on useFor more information call Switch Sales

International Tel. No.: (632) 6228922; (632) 7323709 E-mail: [email protected]

CP Hydraulic Powerpack is an extremely versatile hydraulic driven power generator construction equipment which has attachments for breaking, cutting, coring, pile driving and water pump. It functions as a compact hydraulic system similar to that backhoes. Attachments such the BRK 70 can be connected to the powerpack can be used as a 70 pound jackhammer. Another useful attachment is the SAW 14 which can be used as a 12-14” concrete cutter. Other attachments can provide other extremely useful functions which will help user accomplish the job faster, can just load it in a pick-up truck or SUV then perform all the necessary road works. Compare to using the conventional screw compressors which need to be towed behind a separate vehicle or a large and heavy concrete cutter which takes up a lot of space, the user can just bring the powerpack and use the attachments to get the same job done. Save time, save space, save effort, cost savings.

For more information contact Elektro Werk at 411-0333; 724-1686.

CP HYDrAulIC PoWErPACk

THE roCk SECurITYSerious about security?

Having a CCTV installed at your place does not guarantee your safety. But it’s a good start. Choose the cameras for your security system that not only clearly catch the image as it happens, but deliver as crisp images when you review. Can you review/replay the images clearly? Does your system send alerts when suspicious accurrence is detected? Can you view and monitor while you are mobile? Does your

system reliably save and put a time stamp on the recorded data? if you are serious about your security for your home or business. Choose the provider that can give you the total solution.

Research and development team continues to develop products using leading technology and innovative design.

For more information call The Rock Security Tel. No.: (+632) 7095125 E-mail: [email protected] visit www.therocksecurity.com

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PRODUCTS & TECHNOLOgy

PErvIouS CoNCrETE BASFs pervious concrete can be used in parking lots, driveways, sidewalks, road shoulders, and other light-traffic areas where stormwater runoff is a concern. This concrete is a mix of portland cement, coarse aggregate, water, and admixtures; it contains no sand or fine aggregate, so voids form that allow water to filter through. Pervious concrete is not as strong as traditional concrete and, like most permeable surfaces, requires a well-engineered sub-base.BASF CorporationShakopee, MN

CoMPoSTErS Earth Flow composting systems are designed for use at resorts and on college and corporate campuses. These units can accept 3003,000 pounds of organic waste per day and can be hooked directly to a commercial pulper system. They are also sealed against pests and leakage and come with a motorized auger to aerate the compost and a biofilter and fan to minimize odors. Compost is harvested every two to three weeks but should be cured before use.Green Mountain TechnologiesBainbridge Island, WA

ERoSIoN-CoNTRol MATS The GeoNature coir-based soil erosion control mats are an alternative to plastic products. The mats are biodegradable, easy to maintain, safe for wildlife, hold moisture, and help seeds to germinate and grow. The products have different degrees of openness for temporary, extended-temporary, and semi-permanent applications and can withstand up to 16 per second of water runoff.RoLanka InternationalStockbridge, GA

ErC 50 MoDErNIzATIoN FAçADE FroM SCHüCoThe ERC 50 Modernization Façade from Schüco is a retrofit façade system that can be installed on older, inefficient commercial buildings to improve energy efficiency, occupant comfort, and aesthetics. The ERC 50 incorporates an aluminum load-bearing framework, Schüco’s high-performance windows, exterior insulation, and cladding into a system that can be installed with minimal disturbance to building occupants. The ERC 50 is modular and uses EPDM gaskets rather than caulk, so it is relatively easy to replace damaged components. Schüco’s building-integrated photovoltaic panels can also be used in this system.

DrAINAGE PIPE Mega Green Drainage Pipe, manufactured by Hancor, is a dual-wall, corrugated drainage pipe made from a minimum 40% post-consumer recycled high-density polyethylene (HDPE). This watertight pipe is suitable for applications such as golf courses, parking lots, playing fields, pond equalization, and culverts, and the joints, fittings, and polyisoprene gaskets meet ASTM standards. Mega Green comes in a range of diameters from 12 to 60 and lengths up to 198.HancorFindlay, OH

Co2-REfRIGERANT HEAT PuMPS FroM MAYEkAWA uSA MYCoM

Mayekawa manufactures three different heat pumps for commercial applications that use carbon dioxide as the refrigerant, rather than industry-standard HFCs. The EcoCute model is a water-to-water heat pump that provides both water heating (up to 194°F) and cooling from any water source, including waste heat or solar-preheated water, with a COP up to 8.0. This makes it feasible as an alternative to fossil-fuel-fired boilers. The Unimo air-to-water heat pump water heater produces similar output temperatures using the outdoor air as the heat source, while the Sirocco water-to-air heat pump also offers high-temperature water heating. All Mayekawa heat pumps have 25 kW reciprocating compressors. Key markets include hotels, food processing, pasteurization, and thermal energy storage. The economics for EcoCute and Sirocco products will be most attractive where both heating and cooling loads exist and long run times are feasible.

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WASTEWATEr TrEATMENT Ecological Engineering designs and maintains wastewater treatment facilities that accept sewage as a food source for a complex greenhouse-contained ecosystem including bacteria, algae, plants, snails, and fish. The modular Solar Aquatics System circulates wastewater through the tanks to produce clean, low-solids effluent suitable for irrigation or, if disinfected, use in flushing toilets.Ecological Engineering GroupWeston, MA

STorMWATEr FIlTrATIoN Filterra Bioretention Systems use filtration media and landscape vegetation to remove bacteria, metals, nutrients, and suspended solids from urban stormwater runoff. Their small footprint includes space for a bush or tree, and they fit into parking lots and curb-side landscaping. The inlet accepts surface runoff, and the contained water is then treated by the plants roots, which absorb organic matter, nitrogen, phosphorous, and metals before it filters into the ground through drainage stone.Filterra Bioretention SystemsAshland, VA

GrEEN rooFS These complete green-roof systems use a number of different drainage methods, including those that utilize plates to store water and control runoff, media that help plant roots thrive, and lightweight mats that combine drainage and protection in one unit. These products can be used to create green roofs that support either thin extensive growth, such as sedums, or intensive systems that can support shrubs and small trees.Conservation TechnologyBaltimore, MD

EArTH FloW CoMPoSTING SYSTEM FroM GrEEN MouNTAIN TECHNoloGIESEarth Flow is a medium-size, in-vessel composting system with a motorized traveling auger to aerate the compost and a biofilter and fan to minimize odors. With walls that are insulated to R-18 and a greenhouse top, the vessel is sealed against pests and leakage. Units can accept 300–3,000 pounds of organic waste per day and are designed for use on college and corporate campuses and at resorts. Depending on size (10’–40’ in length), the system may consume 5–10 kWh per day, according to the company. A unique biofiltration system using wood chips can be part of the planted landscaping for some projects, and this system can be hooked directly to a commercial pulper system for greater convenience. Compost is harvested every two to three weeks and should be cured before spreading directly on beds or fields.

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PRODUCTS & TECHNOLOgy

METAbo rECIProCATING SAWMetabo Corp. now offers the ASE18 LTX 18V cordless

reciprocating saw with the tool-less blade change system for safe and easy tool-free blade changes. The ASE18 LTX,

part of Metabo’s 18 V PowerMasterSeries cordless tool line, has an ergonomically designed handle with rubber coating that reduces operator fatigue, as well as a two-finger power switch that increases user comfort for longer operation. The new reciprocating saw features a tool-less adjustable shoe that allows the operator to use the entire length of the blade evenly, extending blade life.

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SAWGEArNew Bedford Tool & Gauge Co. introduces “Jobsite Automation” with SawGear, a portable, precise, and rugged automated length measuring system for chop saws. This tool helps framers and finish carpenters spend up to 25 percent more of their time in the productivity zone rather than correcting inaccuracies both in cut pieces and overall assemblies. The product was chosen as one of the top tools by attendees at the 2010 Remodeling Show.

PASloDE fUEl-PoWERED CorDlESS rooFING NAIlErPaslode has introduced the world’s first fuel-powered, cordless roofing nailer — the Model CR175C. The nailer drives two nails per second and holds 120 nails per coil. Like other fuel-powered cordless tools, the Paslode roofing nailer drives nails sequentially by pushing the tool down and then pulling the trigger. It is faster than hand nailing and is perfect for a wide range of roof-related jobs, including roofing dormers and small additions, installing skylights, or working on garages and storage buildings.

12 volT MAx lITHIuM IoN lINEDewalt’s latest product line, the 12 Volt MAX Lithium ION, includes a complete set of cordless tools, including a ¼-inch screwdriver and impact driver, 3/8-inch impact wrench, LED work light, inspection camera, and infrared thermometer — all powered with its 12 Volt MAX Lithium Ion battery that changes in just 40 minutes. Each tool incorporates novel design improvements, such as three LED lights on the drivers and wrench for increased visibility and a wireless, removable screen on the camera for inspecting those hard to reach spaces.

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ClAMPSAWDesigned for cutting material like metal, PVC, and copper pipe in tight spaces too small for full-sized corded or cordless reciprocating saws, the ClampSaw 12-volt compact lithium saw from Porter-Cable features a three-position adjustable handle for maximum versatility for cutting applications in confined spaces. When the handle is set at 90 degrees, the tool’s footprint is just 3½ inches. The saw also includes a clamping shoe that holds small-diameter objects in place for fast, accurate cuts.

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kINETEx TExTIlE CoMPoSITE FloorING FroM J+J FloorING GrouPKinetex is a soft surface floor covering intended for use in place of hard surfaces such as vinyl composite tiles in medium- to high-traffic commercial applications. These 24” x 24” semi-rigid tiles are 0.20” thick, compared to 0.25”–0.60” for standard carpet tiles, and are engineered with a wear layer made from solution-dyed PET that resists staining or bleaching and is woven for abrasion resistance and durability. Kinetex is made from 60% recycled content (50% post-consumer PET sourced primarily from water and soda bottles) and, unlike carpet, can be ground and processed into new backing in one step without costly material separation and sorting or loss of performance. Kinetex is treated with perfluorinated compounds to resist dirt and improve its lifespan; note that these chemicals persist in the environment and may have long-term environmental impacts.

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CroSSlAM CroSS lAMINATED TIMbEr FroM STruCTurlAM ProDuCTSCrossLam is a cross-laminated timber (CLT) structural panel made by gluing layers of softwood boards one on top of the next at right angles to each other. The resulting panels are light and dimensionally stable in all directions and can be used for floors, walls, and roofing. CLT is made from less desirable wood, including wood taken from forests killed by mountain pine beetles, but higher quality wood can be used if it is going to be exposed to view, and FSC-certified wood is available. CLT comes in panels up to 40 feet long, 10 feet wide, and 12 inches thick and uses formaldehyde-free Purebond polyurethane adhesive.

CoMForTboArD MINErAl Wool boArD INSUlATIoN fRoM RoxUl INC.Roxul manufactures rigid and semi-rigid mineral wool board insulation for both commercial and residential applications. ComfortBoard, designed for applications over exterior sheathing, is produced in the Milton, Ontario, plant with a minimum 75% pre-consumer recycled content, primarily iron ore slag. The residential version, ComfortBoard IS, has a density of 8.0 pcf, while the commercial product, ComfortBoard CIS, has a density of 11 pcf. At these densities, ComfortBoard is rigid enough to be used as exterior insulation, and it provides an affordable alternative to foam-plastic insulation materials typically used in this application. Comfortboard also provides very good sound control and excellent fire resistance without the use of flame retardants. It can be used in rainscreen details, and it retains thermal resistance when damp. The R-value ranges from 4.0 to 4.2 per inch. These products are produced with a urea-extended phenol formaldehyde binder, though heat processing during production drives off most of the formaldehyde, resulting in extremely low emissions.

SUNNy boy 3000Tl-US, 4000Tl-US AND 5000Tl-uS INvErTErS FroM SMA AMErICA

DurAClASS uNvEIlS NEW Tub boDY lINE DESIGNMost grid-connected inverters used for

solar-electric systems cannot provide any power during power outages, even when the sun is shining. These revolutionary transformerless inverters from SMA Americaprovide daytime power in the event of a grid outage. Without requiring battery storage, these inverters can switch from interactive operation to providing off-grid energy to a dedicated power outlet. Provided the sun is shining, these inverters can deliver 1,500 watts (12.5 amps at 120 volts) with a maximum efficiency of 97%. While they may not provide enough power for major household loads, these inverters can provide critical cell phone and laptop computer charging and other emergency needs.

vIvID Mr16 lED FroM SorAASoraa Vivid MR-16 LED luminaires are ideal for use where light quality is critical, such as art galleries or retail displays. Unlike other LEDs that use gallium nitride (GaN) crystals grown on a sapphire or silicon carbide base, Soraa uses GaN grown on a GaN base so the crystals have far fewer imperfections. Though less efficacious than some LEDs, Soraa MR-16s produce higher intensity, “full spectrum” light that can rival halogen bulbs, while operating at much lower temperatures. The color rendering index (CRI) is as high as 95. Soraa’s Vivid MR16s are available in 14-, 25-, and

36-degree beam angles.

DuraClass recently introduced the newly improved HPT “Tub” Body Line. The line has

been redesigned to meet all heavy duty dump body needs. A semi-elliptical body using high tensile steel,

crossmemberless understructure, and a body sidewall without extra bracing add up to an exceptional payload-to-weight ratio. The

rounded floor and low center of gravity give it strength and stability for heavy hauling. Loads are discharged cleanly from the curved body shell.The HPT-B1 features a closed fender design, and comes in 14- to 18-ft lengths in either carbon steel or stainless steel. The HPT-B1 has capacity ranges from 10- to 20-yard.The HPT-B2 features an open fender design, which decreases the possible areas for rust and the overall body weight. The body comes in 10- and 11-ft lengths in 3/16-in AR400 carbon steel, and 14- to 18-ft lengths in 3/16-in Hi-Tensile carbon steel. The HPT-B2 also has an option for stainless steel.Based out of Tishomingo, Mississippi, DuraClass designs and manufactures a comprehensive range of premium Class 3-8 dump bodies, hoists and related equipment. With over a century of experience, DuraClass continues to deliver the most stylish, rugged and dependable dump bodies and hoists to the work truck industry. That level of sustainability comes from a commitment to consistently supply contractors and municipalities with the highest quality products and exceptional customer service.

Page 42: Philippine Construction & Design Sept.-Oct. 2014

40 | Philippine Construction&Design September - October 2014

PRICE mOVEmENT

Construction Materials Wholesale Price Index in the National Capital Region (2000=100) : July 2014

Year-on-Year and Month-on-Month Growth Rates of theConstruction Materials Wholesale Price Index in the National Capital Region

All Items July 2014 June 2014 July 2013 Year-to-date

Year-on-Year 2.4 2.3 2.5 2.3

Month-on-Month 0.3 0.4 0.3

• Year-on-Year On an annual basis, the Construction Materials Wholesale Price Index (CMWPI) in the National Capital Region (NCR) inched up 2.4 percent in July. Annual growths in the CMWPI were posted at 2.3 percent in June and 2.5 percent in the same month last year. Faster annual gains were registered in the indices of 11 commodity groups with the highest rate observed in plumbing fixtures and accessories index at 6.6 percent. On the other hand, those for the indices in PVC pipes and fuels and lubricants correspondingly decelerated to 3.0 percent and 1.7 percent. The rest of the commodity groups retained their last month’s growths with no movements seen in asphalt and machinery and equipment rental indices.

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September - October 2014 Philippine Construction&Design | 41

• Month-on-MonthFrom the previous month’s level, the

CMWPI in NCR went up but at a slower pace of 0.3 percent in July. Mark-ups in the following indices improved during the month: sand and gravel, 0.1 percent; concrete products, 0.3 percent; plywood, 0.7 percent; lumber, 0.6 percent; doors, jambs and steel casement, 0.3 percent; and plumbing fixtures and accessories, 0.9 percent. However, upward adjustments were noticed in the indices of cement; tileworks; glass and glass products; painting works; and fuels and lubricants. The indices of the other commodity groups either moved at their previous month’s rates or had zero growths.

Price hikes were noted in sand and gravel, cement, plywood, lumber, G.I. sheets, doors, tiles, paints, electrical wires, some plumbing fixtures, gasoline and fuel oil.

Page 44: Philippine Construction & Design Sept.-Oct. 2014

42 | Philippine Construction&Design September - October 2014