COWI: A practice at the peak of its form

17 October 1997
SPECIAL REPORT CONSTRUCTION

WITH activities in more than 100 countries, COWI is one of the best-known Danish companies abroad. In the Middle East, it has achieved the rare distinction among Scandinavian companies of securing work across the region and in all major sectors. High investment over the past two years cut profit growth in 1996-97, but the foundations have been laid for continued expansion in the longer term.

Overseas oil and gas work is becoming increasingly important for COWI as the opportunities in Denmark's domestic industry diminish. 'In 1992, we predicted that the domestic market would peak about now - and it has,' says Edward Morgan, director of oil and gas. The establishment of COWI's Qatar office in 1995 was an early move to prepare for this shift. 'We're not just doing nuts and bolts engineering in the Gulf,' says Morgan. 'We want our local office to be a high-profile, hi-tech base.'

The strategy has paid off. COWI is now one of four in-house consultants for the Qatar Liquefied Gas Company. It has completed designs for an uninterrupted power supply system at the Umm Said onshore facilities of Qatar General Petroleum Corporation (QGPC), and is designing plant changes to various other QGPC offshore and onshore installations. COWI's other clients in Qatar include Maersk Oil Qatar and Occidental Petroleum. COWI is so confident that the work will go on growing that it plans to expand its Doha office over the next five years to 40 staff from the present 25.

In the UAE, the company's Bahrain-based affiliate COWI-Almoayed Gulf has carried out a feasibility study for a new liquid pitch terminal at Dubai Aluminium Company (Dubal). It is also the consultant on a similar scheme for Aluminium Bahrain (Alba), which is at a more advanced stage.

The climate of the Gulf means that concrete rehabilitation is another staple source of work. 'Many structures in the Middle East suffer from accelerated deterioration, because of the climate,' explains Carl de Fontenay, chief engineer for concrete technology and building rehabilitation. 'Buildings last only a third or a quarter of the time they do in Europe.' In Saudi Arabia, where COWI operates through its local affiliate, Saudi COWIconsult & Partner, its clients include the Saudi Iron & Steel Company (Hadeed), the Saudi European Petrochemicals Company (Ibn Zahr) and the Saline Water Conversion Corporation. In Bahrain, COWI has prepared and supervised the repair of concrete structures for the Gulf Petrochemical Industries Company and the Bahrain Petroleum Company. In Oman, it is renovating nine bridges in the Muscat area and supervising major repair works at the oil refinery.

Energy saving

Higher-profile projects include the expansion and refurbishment of the Central Bank of Oman, which is nearing completion. COWI also designed a currency museum for the Bahrain Monetary Agency (BMA), which was fully installed in the BMA's headquarters in March. Such projects provide opportunities for COWI to use its energy-saving expertise.

However, convincing clients that the expensive technology involved reduces costs in the long term can be an uphill struggle. 'People usually focus on the capital expenditure costs of a building alone - and not on the operational and environmental costs,' says industry and building director Niels Andre. 'The Middle East could benefit enormously from the technology we have available, but a change of mentality is needed first,' he adds. However, COWI's ideas may be catching on in the UAE, where it is talking to the Dubai municipality and private investors about carrying out a pilot project to illustrate the possibilities of energy-saving techniques.

COWI still has a presence in Libya, where it has finalised basic designs for the expansion of the Azzawia oil terminal. The construction work, expected to cost up to $300 million, will go to tender this month. COWI is optimistic that it can win new contracts once Libya re-emerges from its international isolation. 'Libya's whole power system is in bad need of repair,' says Steen Rasmussen, oil and gas senior project manager. 'There will also be plenty of work in concrete rehabilitation, and in the upgrading of their oil and gas infrastructure. Having a low-profile platform in Libya will stand us in very good stead when the political situation changes.'

The Azzawia expansion may include the construction of a new breakwater. This is the area in which the company is working in Lebanon. COWI and the UK's Christiani & Nielsen are construction managers for the $230 million Beirut Central District marine defences project. The client, property company Solidere, awarded the construction contract last year to France's Bouygues and Bouygues Offshore. 'The project is a challenge for Solidere, for Bouygues and for us,' says Ole Jensen, head of the marine structures department. COWI hopes that the prestigious contract will lead to more work in Lebanon. 'If things go well, perhaps we will develop our Beirut base to a more permanent office,' says Jensen.

Environmental consultancy is a growing area of COWI's Mediterranean operations. Egypt currently offers the most opportunities in the Middle East, largely because of aid allocations by the Danish International Development Agency (Danida). 'The environment is a priority for Danida,' says director of environmental studies Mogens Heering. 'This opens up opportunities for Danish companies.' Last year, COWI was awarded the management of a five- year environment monitoring programme in Egypt. It is also continuing work on a scheme aimed at increasing co-operation between Egypt, Jordan and Israel in oil spill control in the Gulf of Aqaba, one of the few projects to emerge from the regional peace process.

In the West Bank, COWI finished supervising road rehabilitation works earlier this year for the Palestinian Economic Council for Development & Reconstruction (PECDAR). COWI also carried out surveys and drew up tender documents for the work, which involved a cost-saving technique of recycling the old asphalt.

COWI's partner on the scheme was Jordan's Jouzy & Partners, who are also working with it on a variety of studies financed by the World Bank on industrial pollution in Jordan. In Turkey, COWI's largest current project is the completion of designs for the upgrade and expansion of the Greater Istanbul wastewater networks. The scale of the Middle East's infrastructure needs will ensure a steady stream of consultancy work in the future. With its presence throughout the region and an eye for opportunity, COWI is likely to remain a familiar name.

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