Project Management for Practice Ayla Oasis Construction Project

Faris H. SalousMasters of Science Project Management

Birmingham School of Engineering and Manufacturing Systems

6• PESTLE Analysis

7• Conclusion

A middle point between four countries. (3)Aqaba is considered as a safe destination for the Middle East people. (7)

Aqaba is the largest city on the Gulf of Aqaba & one of the major tourist attraction in Jordan, famous for warm water and various marine life. (2)

Aqaba – Jordan

Aqaba was chosen as the Arab Tourism City of 2011. (12)

Its strategic location at the junction of 4 countries made Aqaba trading routes between Asia and Africa since 4000BC. (33)

To create the gate to all tourist areas in order to extend the length of stay of tourists in Jordan

- To increase the waterfront line from 235 meters into 17 KMs

- To make a synergise with all of the world heritage sites in Jordan reference(3,5)

To decrease the unemployment number by providing more job opportunities especially during construction period, the operational stages of the Project and after the project finishes. (15)

To transfer new skills to the Jordanian workforce. (15) To support Aqaba into a leading tourist destination

within the next few years (3,9) To support the use of sustainable climate resilience

technologies in the built environment. (9,15)

This section was made by group members using PRINCE2

•By applying the main themes of - Business Case:1. The short length of stay of tourists.2. The shortage of waterfront areas in Aqaba.3. The needing for a safe stable destination for the people of gulf and middle east

Project Management Method

Reference: (33,15)

Reference (27,28)

Reference: Team Work

AYLA OASIS DEVELOPMENT

COMPANY (AODC)

Arab Supply and Trading company

(ASTRA)

Ayla Consultancy and Project

Management (ACPM)

Contractors Contractors

Sub-Contractors

ASTRA: Arab Supply and Trading company, Saudi company, considered as a sponsor for Ayla Oasis development (15)

Ayla Oasis Development Company (AODC): considered as the owner of the project and generally controls the process of construction through a project management company (ACPM).

ACPM (Ayla Consultancy & Project Management) : providing consultancy and management services. ACPM is appointed as Project Managers of Ayla Oasis Project.

There are a set of contractors that actually working on-site, the main contractor for the infrastructure was the huge Italian contracting company called Condotte.

Group Analysis

Reference: Group Work

PRIME & SUB-CONTRACTINGCOMPANY POSITION SCOPE OF WORKS

PRIME CONTRACTOR

2008-2014-MARINE WORKS Expanding 235 metre shoreline into 17 KMs waterline-the construction of artificial lagoons, hotels, apartments & villas, a golf course and harbour facilities. (27,28)

CONSULTANT 2008 - present- Site investigation and geotechnical evaluation. Engineering Studies company -Geophysical surveys, field and laboratory testing, piezometer installation-materials testing and quality control.(12)

SUB- CONTRACTOR

2013 - present- Architecture, Interior-Design&Landscape (2013 – Current)(26)

PRIME & SUB-CONTRACTINGCOMPANY POSITION SCOPE OF WORKS

DESIGNERIn Progress

-Design Consultant and supporting Architect for residential apartments & for the Ayla Marina Village & Hotel (29)

CONSULTANTJanuary 2013

-Design and consultant for the maintenance operations building and for the Beach on the Golf Course(31)

SUB- CONTRACTOR

2008-Geosynthetic Reinforced Soil (GRS) system for construction of lagoon areas. (32)

CONSULTANT October 2008Architects & Designers of Ayla Oasis Village. (32)

COMPANY POSITION SCOPE OF WORKS

MAIN CONTRACTOR

2014 - presentAyla oasis Beach Club 10, skeleton works and finishing.(36)

MAIN CONTRACTOR

2015 - presentFinishing works for Hyatt Regency Hotel .

(38)

MAIN CONTRACTOR

2012 - presentAyla Island Apartments, skeleton works and finishing, MEP works .

(37)

SUB- CONTRACTOR

2012 - presentMarina Dry Stag, skeleton works and Finishing & Building construction and electromechanical works

(30)

PRIME & SUB-CONTRACTING

The Total Estimated Cost : US$ 1.4 billion (3,15) The development of construction will be carried out by

three main phases: 1.The First Phase:

Time: started at 2008 and estimated to finish by 2017. Cost : US$ 250M (3,15)

2.The continuous project phases (the second and the third phase)Time: started at the end of 2017 (14)

In 2017 while the owners and tourists start to use the project, the second phase will initiate with a continuous construction process. by finishing the third phase the development will cover 43km2 of residential and commercial space. (3)

AOD

ACPM

CONTRACTORSSUB-

CONTRACTORS

CONSULTANTS

Reference: team work

(ASEZA)

Reference (34)

A GLOBAL DESCRIPTION OF AYLA OASIS PROJECTInitiated through a private-public partnership between the Aqaba Special Economic Zone Authority (ASEZA) and ASTRA GROUP. (35,15) with the ultimate goal : regenerating and repositioning Aqaba into a primary tourist destination on the Red Sea. (3)

Arab Supply and Trading Company (ASTRA), as the investors, has signed OASIS agreement with Aqaba Special Economic Zone Authority (ASEZA). (35,39)

Involving a world-class leading constructor, Italy Condette, and other local contructors. (28)

All plans of Ayla Project must be acknowledged by ASTRA and must comply with ASEZA regulation. (35)

Additional References (3, 4)

Transforming a 235-meter shoreline into 17 KM of new waterfront with 750,000 SQM of series of man made lagoons (3,8)

Building up 1,500 hotel rooms in 5 hotels (6) Building up 3,000 residential units (6)Setting up 20,000 SQM of commercial retail and food

and beverage outletsA 18-hole championship world-class golf course

designed by Greg Norman, one of the world’s leading golf course designers (3), (6)

Marina Village with first aid services/clinics (3) Implementing system to allow individuals with

special needs to access (5)

Aqaba Special Economic Zone Authority (ASEZA) was established in February 2001 under to transform Aqaba into a world class Red Sea business centre and tourist destination.

The project must comply with ASEZA Environmental Protection Regulation and Environmental Commissioner regarding waste management, use of sea water, and emission of harmful substances to the environment

Reference (35)

• The first phase will be operating 2017• Setting up management to market and promote

Ayla • Expanding a sustainable Ayla project.

Reference: (3,1,15)

Setting up the world-class golf course designed by Greg Norman, one of the world’s leading golf course designers with a 40-year experience in golf which greatly enhance the position on the global golf tourism map. (24,45)

setting up water conservancy and creates power through solar panels on the golf course. (15,23)

Install solar panel on infrastructure works (3)

Sea water quality is monitored and recorded on regular basis and waste water from the development is treated by the municipal waste water treatment plant. Construction impacts are also monitored. (4)

Reference (3,24)

Reference (13)

Reference (41,42,43)

More than four thousands job opportunities will be created through Ayla Oasis that will contribute to the sustainable development of the Jordanian economy. The project is expected to help decreasing the unemployment percentage in Jordan.

Figure shows the trend of unemployment percentage in Jordan. The number fluctuates showing averaged 12.59 percent from 2007 until 2015.

Actual Previous Highest Lowest Dates Unit

13.80 % 11.90 % 14.30 % 10.80 % 2007 - 2015 percent

Reference (18,19,46)

Tourism plays vital importance that contributes more than USD 800 million to Jordan’s economy and approximately 10 percent of the country’s gross domestic product (GDP)”. Between 2004 and 2007, the total number of people employed in the tourism sector rose 50% from 23,544 to 35,484. (National Tourism Strategy 2004-2010). The figure shows the steadily increasing GDP in Jordan. Ayla Oasis project (aimed as business and tourism hub) is expected to give positive implication to Jordan Financial condition by creating more job and reducing poverty rate

Reference (10,48)

The figure of World Bank shows a significantly increasing trend in tourism in Jordan.

 Ayla Oasis project (aimed as a world business and tourism hub) is expected to double tourism revenues and to support economic growth in Jordan

Reference (17,48)

Ayla Oasis is believed to be able to turn Aqaba into the world business hub. The graph shows the growth in cargo volumes at Jordan’s Aqaba port over the past decade.

Ayla Oasis project contribute to turn Aqaba into a major business and tourism hub that is capable to attract global logistic companies such as APM Terminals and Agility to invest in logistics that may enable to double the cargo volume investing in Aqaba

Reference (40)

ASEZA Environmental Policies: The water policy: the protection and management of groundwater resources & waste-water on Ayla Project can be renewable at a certain rate to waste less water and be environmental friendly. The energy conservation policy: promotes the provision of adequate energy to consumers at the least possible levelThe impact: the project will cost less money to do the daily construction.

Reference (20,21)

Discriminatory National laws in Jordan: Positive impact: The refugees from other middle-east countries get less salaries. Therefore, for the project, it can employ those refugees by paying less money and get same labour force , rather than paying salaries for locals.Negative impact: The refugees who are employed by the project may have some social problems, such as no accommodation, lack of food, crime and so on. Therefore, if the project employ those refugees, it will take risk.

References (20,21,22)

1. A unique world-class golf course in Ayla Oasis designed by Greg Norman (international golf designer) to attract international golfers of all standards and all nationalities , which greatly enhance Ayla position on the global golf tourism map

2. Low tax rate applied by ASEZA to attract international investors

Reference: (3,44)

Reference: (46)

3. The graphic shows a decreasing trend the corruption index in Jordan from 57% in 2005 into 49% in 2014. It gives positive impact on Ayla Oasis to attract more international investors to invest

Reference (45)

ELEMENTS OF SUCCESS & LACK OF IT IDENTIFIED.

SUCCESS ELEMENTS IDENTIFIED: (3)The location is very ideal and strategic between 4 countries on the Red Sea. It has status as Special Economic Zone of Jordan.The economic growth in Aqaba is higher than the average economic growth in Jordan.Ayla Oasis is an efficient and sustainable projects.It has a financially strong reputable sponsor, ASTRA. (39)

LACK ELEMENTS IDENTIFIED:No further actions implied telling about the second and third phases.

References (3,15,39)

SWOTSWOTAnalysisAnalysis

Oppurtunity

Threats

Strengths

Weakness

Strengths Weaknesses

Qualified designers & architects

Short planned Lead time

Strong financial funding by sponsors

Royal and governmental support

High distribution cost

High dependency on foreign suppliers

High raw materials cost

The absence of well defined recovery plan.

Reference (49)

Opportunities Threats

Strategic location, by the Red Sea, meeting point of 4 countries (Jordan, Palestine, Saudi Arabia, Egypt)

Stable Environment compared to other countries in the region

Growing rate of population

Increase in infrastructure and real estate development

Tourism rate is increasing

Financial crisis reduced the cash flow.

Unstable fuel price on shipping and production cost.

Conflicts happens in other countries, unstable political situation.

Mega projects that are under construction; Marketing challenge and value.

Reference (49)

Political To emphasize Jordan’s location as a stable safe destination for tourism

Economical Develop the tourism industry in Jordan as the main factor in the growth of national economy

Social vocational training programs and upgrade labours to accommodate the requirements of labour market changes.

Technological Solar power can be used with 3.2MW renewable energy project.

To make it the largest renewable energy project in the region, total capacity of phases reach up to 5.8MW.

Legal Comply with ASEZA laws and regulations .

Environmental Effective Environmental management plan .

Investment in solar energy power plant .

The Aqaba taskforce was created and equipped to transform Aqaba into a world class Red Sea business location and tourism destination for the economic growth of Jordan

The area was named Aqaba Special Economic Zone (ASEZ) with an empowered Authority known as (ASEZA) with regulatory, administrative, fiscal and economic responsibilities. (5)

Recently and since 2001 Aqaba is authorized by a Jordanian

special economic zone (ASEZ), It is a duty free multi sectoral free tax development zone that holds the 27 Kms Jordanian coastline and covering an area of 375 square kilometers.

The special zone offers a strong investment opportunities especially in the tourism and logistics services, to increase the development activities in Aqaba and Jordan in general.

Reference (5,15)

Stable environment in Jordan compared to other countries in the region

Benefit from the migration from other countries due to regional conflicts.

Signing multi-trade agreements including accession to WTO, Arab free trade, Euro med partnership, as well as Arab special economic zone.

Reference (15,22)

Government budget increased by 10 % each year, it will cause the economic growth in Jordan. Therefore, the project can enhance the growth.

Unemployment rate stay 14 %. In order to decrease the unemployment, the project will give opportunity to employ the labour force.

Inflation rate goes up by 2% each year.

The project has no financial problems and has increased its capital from JD200 million to JD250 million

Reference (13,15,22)

Tourism is a prime component of the Jordanian economy. A project is proposed to develop the tourism industry in Jordan as the main factor in the growth of national economy. (1,15)

The economic growth in Aqaba is higher than the average economic growth in the country. And Aqaba economy is based on the tourism and port industry sectors. (3)

Infrastructures are part of Ayla project to support an advanced tourism industry and create new job opportunities. (3,15)

Jordan is a diverse community. There are many different ethnic groups living in this small country; it has been a mixing pot of cultures for millennia.

Syrian refugee problem: Government agreed that they allow 120,000 refugee , but it will more than that about 700,000 refugee. So that it cause problem with lack of food , service and infrastructure

It has been developing vocational training programs and upgrade labours to accommodate the requirements of labour market changes.

Reference (15,22)

• By using solar power, the project will be environment friendly. (3,45)

• Ayla project has connected a 3,2MW solar power plant to the national electricity grid, which can have one of the largest private renewable energy projects in this region. (4,23)

• Sea water quality has been monitored and recorded on regular basis. However, for the waste water, it can be used by waste water plant. (15)

Reference (3, 4,15,45)

• Solar power can be used with 3.2MV renewable energy project.• The power has been used to operate the seawater pumping station

that feeds a chain of lagoons at Ayla’s project in Aqaba.• The man-made lagoons have covered the area of 750,000 m^2, and

added 17km of new water frontage to Aqaba. Also it has increased the 52 percent waterline.

• It costs JD60,000 (USD 84,620)per year by using electronic power to irrigate the golf court. So that in order to minimise the cost , the project use solar power.

• To make it the largest renewable energy project in the region, we use total capacity of two phases reach up to 5.8MW.

Reference (15)

• A specific environment plan has been used to make sure the development of the Environmental Management Plan. (3,10)

• One of the world largest golf court will be built in Ayla project , which has 18 holes. Greg Norman , one of the most respected golf court designer said that. (3,44)

RISKS RISK MANAGEMENT

what Aqaba offers currently is very limited

creating 17 kilometres of new seafront from a 250-metre strip on the Gulf of Aqaba by creating a new bay

tourists do not stay long enough to spend money that makes a difference to businesses and the local communityArab Spring (revolutionary movements in Tunisia, Egypt, Libya, Yamen), Jordan lost 25% in tourism market in 2011.

Investment at Aqaba is an example not only for the region but also for many cities around the world which would benefit from improved land use planning.

Reference (3,10)

RISKS RISK MANAGEMENT There is a massive

projects that are currently under construction at Aqaba (competitors) are considered a major challenge and can puts a question on all of these tourism projects and the sudden increase in hotel rooms; It is planned that Ayla will provide Aqaba with a 1,550 room hotels whereas Saraya Al Aqaba (competitors) will also increases the hotel rooms by 1,200.

Good marketing strategies; the key is developing a marketing strategy that forms a solid foundation for promotional efforts. Implementing promotional activities such as advertising, one to one sale and international marketing especially for gulf countries.

pricing policy; 1. Recognize the factors that affect price strategy. 2. Identify marketing objectives related to pricing. 3. Describe the components that go into making price strategy decisions. 4. Apply formulas used in setting prices. 5. List considerations for updating price strategy.

Reference (10,48)

RISKS RISK MANAGEMENT

Financial crisis and region instability reduce the cash flow.

Starting earning revenues from the completed phases, i.e marina village apartments and golf course academy

Strong financial capabilities for shareholders with a strategical support from ASEZA.

Reference (10, 18,19)

Reference (3,28)

Reference (26)

Reference (32)

Reference (29)

Reference (32)

Reference (31)

Reference (37)

Reference (3)

• Ayla oasis Project has a strong impact on the Jordanian Economy and considered as one of the “Achievable” projects in the country.

• There are a list of advantages and disadvantages of applying Prince2

Advantages Disadvantages

1. Save time: Standardize; mature methodology

2. Save money: easy to use3. Good quality: controlled

changes; can make improvement

4. Effective communication

1. Does not have many specialists

2. Does not address the leadership and people management skill

3. It presents a large overheard, and thus cannot be applied in small projects.

4. It is a hard methodology to adopt.

Reference: (25)

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