Averda wins Morocco cleaning contract

Averda International, a leading environmental solutions provider in the Mena region, has won a contract to provide waste management services in Moroccan capital Rabat where it will serve 200,000 of the city’s residents on a daily basis.
Averda said Rabat is the seventh capital city in its portfolio. The company and its subsidiaries are currently providing waste management services in Abu Dhabi, Beirut, Doha, Dublin, Muscat and Riyadh.
As per the contract, averda will provide general waste collection and city cleaning services in the “Arrondissement de Yacoub El Mansour” district of Rabat.
“As the nation’s capital, a Unesco World Heritage Site and an international tourist destination, we remain committed to maintaining Rabat’s image and having an effective waste management system forms an important component of that commitment,” said Benzha Abdelkarim, the secretary general of the Wilaya of Rabat.
“Our decision to award this contract to averda, as part of an open and regulated tender, was based on a combination of its technical competency, its international experience and its ability to deliver value,” he stated.
As part of the program, averda will introduce sustainable waste handling methods, innovative environmental solutions and a state-of-the-art fleet – including GPS-enabled mechanical sweepers which will be tracked for greater efficiency.
The company expects to manage an estimated 70,000 tons of waste per year in Arrondissement de Yacoub El Mansour; an amount that is equivalent to 125 fully loaded ‘super jumbo’ airplanes.
Commenting on the win, averda chairman Maysarah Khalil Sukkar said, “In addition to reflecting our rapidly expanding commercial footprint, which now spans three continents and 10 countries, this contract is testament to the strength and effectiveness of our integrated approach to waste management.” With more than 7,500 employees serving millions of people every day, averda operates in full compliance with international standards for quality control throughout Lebanon, Saudi Arabia, the UAE, Oman, Qatar, the UK, the Republic of Ireland, and Morocco.-TradeArabia News Service

Construction & Real Estate

RAK Prop approves 5pc cash dividend

RAK Properties, the biggest property developer in Ras Al Khaimah listed on Abu Dhabi Stock Exchange, said it had approved a cash dividend equivalent to 5 per cent of the capital to the shareholders.
The decision was taken at RAK Properties’ general body meeting held today (March 16) at Hilton Ras Al Khaimah Hotel. The meeting further approved the board of directors report on the company’s activities and financial performance for the fiscal year ended December 31, 2012.
The meeting, which was held today after its postponement on March 9 for the lack of quorum, also voted for and approved the external auditor report for the same period and discussed and approved the balance sheet and the profit & loss statement, said a company statement.
The shareholders approved the proposal of the board to distribute a cash dividend to the shareholders, equivalent to 5 percent of the capital. They also approved the board member’s remuneration and discharged the directors and auditors from liabilities for the 2012 fiscal year.
Moreover, they re-appointed external auditors for the fiscal year of 2013 and approved their fees, it added.
Mohamed Sultan Al Qadi, the managing director and CEO of RAK Properties, said: “We are pleased with the extensive and detailed discussions that took place in the general body meeting. Shareholders expressed their satisfaction over the performance of the company in 2012.”
“We also shared with them the vision of the board and its ambitious plans to sustain the growth momentum of the company not only in Ras Al Khaimah but also nationwide in 2013, he added.
RAK Properties had earlier reported a net profit of Dh147 million ($40.1 million), up 35.6 per cent over Dh108.4 million in 2011, said the statement from the company.
The rise in profits for 2012 came from increased demand for the group’s key projects, including Mina Al Arab, Julphar Towers and RAK Tower in Abu Dhabi as well as its early settlement of its Dh184 million loan with Ras Al Khaimah Investment and Development Office of Ras Al Khaimah Government, it stated.
RAK Properties recorded an increase in growth of residential, commercial and retail lease in 2012 which, according to Al Qadi, reflects the anticipated continual growth for the company in the coming period.
RAK Properties have boosted its sources of its revenues in 2012, which was a topic of detailed discussion and appreciation by shareholders. The new line is represented by two retail complexes of the company in Julphar Towers and Mina Al Arab, which will ensure a constant revenue stream for the company in the coming period it added.-TradeArabia News Service

Construction & Real Estate

Public-private partnership ‘must for affordable housing’

Regional governments must collaborate more with the private sector to help address the growing crisis of affordable housing, a new report said.

Saudi Arabia has some of the GCC’s lowest “residual incomes” (household budget available after paying for housing) for affordable housing, according to the Ernst & Young report released at the Jeddah Economic Forum.

Housing affordability, as measured by “residual income”, shows wide variation across the Middle East, with UAE and Qatar achieving higher levels of housing affordability for nationals, it said.

Ernst & Young is the Knowledge Strategic Consultant of the Jeddah Economic Forum 2013. The report recommends that regional governments must collaborate more with the private sector to help address the growing crisis of affordable housing.

Mark Otty, Ernst & Young’s area managing partner, Europe, Middle East, India and Africa (EMEIA), is delivering the opening remarks on the second day of the Forum and will speak on ‘Financial Sector: Enabling private sector innovation in housing finance’.

“The populations in Mena are growing at two or three times the rate of the global average which poses significant challenges for policy makers as they look to provide affordable housing solutions. Coping with this demand should be a priority for governments across the region.”

Ad Buisman, head of EMEIA real estate at Ernst & Young, will speak on ‘Development Industry: Solid Foundations For Effective Private Sector Engagement’ and moderate sessions on ‘The economic foundation of a competitive city’ and ‘Sustainable Future Cities: Making the most of technology’.

Ernst & Young’s report highlights that the widening gap of effective demand over affordable housing is proof that governments’ existing efforts will require more support in the coming years. The gap demonstrates that government’s current frameworks are being asked to do much more than they were ever designed to deliver, said a statement.

Abdulaziz Al-Sowailim, chairman and CEO of Ernst & Young Mena, says: “There is an important role for the private sector to play in collaboration with the government and the public sector. When collaborating with the private sector, however, it is critical for government to give industry players and developers clear rules and a coordinated process.”

The report also suggests that it is time for governments to make step changes in their delivery models, and in particular, to shift into a more outsourced and collaborative approach with the private sector on both the supply side (new homes) and the demand side (financing products).

Private sector developers in the Gulf often pay import duties of around five percent, whereas public sector developers pay nothing for identical materials needed for affordable housing. In addition, private sector developers are often charged up to one percent of the cost of land for registration, while public sector developers are not charged at all. Governments could readily address these costs by decreeing that private sector driven projects for affordable housing are considered ‘public sector’ because they are serving the public interest. Similar reasoning should allow developers to use more modern building techniques that have proven successful in other MENA regional countries, the report said.

“Affordable housing requires some elements of subsidy or government contribution, but governments can never solve the problem simply by pledging large sums: too much money will drive up prices, not create more affordability,” said Ahmed Reda, office managing partner, Ernst & Young Jeddah. –TradeArabia News Service