Afghanistan’s Urban Development Program Pre-Fabricated & Modular Building Solutions Dubai, United Arab Emirates February 7, 2016 Presentation Goals Minister of Urban Development Mr. Naderi The Government of Afghanistan (GoA) would like to: Create a shared Vision: We will discuss GoA’s vision for the infrastructure sector and the development of the construction sector in Afghanistan Obtain feedback: We would like to obtain feedback from all interested companies on the components of the program and the structure of the RFI & RFP Move forward with implementation: Finally, we are looking to move quickly forward and invite discussion on how we can created shared value quickly Infrastructure Vision for Afghanistan Advisor to the President on Infrastructure: H.E. Dr. Qayoumi The Government of Afghanistan is expanding its focus on infrastructure investments throughout the country Type of Projects Regional Integration Power Urban Railways Natural Gas Trade Routes Railroad Northern Corridor Line Feasibility studies have already been completed Construction is set to begin during 2016 Chabahar Port Urban Development Program: Summary of Opportunities Minister Naderi Vision: MUDA is now responsible for developing policy and implementing all urban infrastructure projects Project Overview: Construction of prefabrication facilities able to produce 1-2 million+ square meters of floor space per year The opportunities include: Schools Government Housing Military Barracks Government Offices Higher Education Classrooms The Financial Opportunity Ajmal Ahmady The Opportunity: The opportunity to work with the GoA to implement priority projects across five priority sectors Government Resources: Afghanistan has identified the financial resources to fund our urban development priorities. These funds include budgetary resources, as well as international development and private funding Financing: We can work with qualified firms identify sources of funding (e.g. IFC) and to help insure project risks (e.g. MIGA/private insurance) Process: The Ministry of Finance will ensure that the GoA implements rigorous budgetary controls, milestones & targets. We will adhere to the highest policies to prevent fraud and corruption Program Technical Components Jonathon Baxter Specification, Construction, Seismic Design & Performance to comply with international standards, typically ISO / DIN / BS / ASTM / EN-Eurocode 8 +Seismic data http://pubs.usgs.gov/fs/2005/3038/508fs3038.html Avoiding complexity Seasonal Resilience Method Statement Foundation restrictions limit height All-year-round erection & installation Train & supervise transporters & installers Insurance requirements and implications of collateral design warranties Compliance with Afghan Procurement Law Procurement Process Overview Process & Steps from RFP to Award WEEKS Issue Request for Proposals Respond to Request For Proposals Evaluation & Feedback Pre-Selection of Acceptable Systems **Confirmation of (initial) Approvable Designs Request for Proof of Concept - Live Test - Import & Construct Delivery and completion of Test Buildings Evaluation of constructed Time/Cost/Quality (iterative) Estimation of factory & establishment costs, etc. Bid : Financial Offer, Method Statement, Programme **Evaluation & Report to National Procurement Council Selection of Approved Manufacturers Awards MUDA FABCo's MUDA / ICE / FABCo's MUDA ICE FABCo's / MUDA Co-ordination MUDA / ICE / FABCo's FABCo's FABCo's MUDA / ICE MUDA/NPC MUDA 2 2 2 12 2 2 1 2 1 PROVISION Resources Building Design Standards : Seismic Resilience to accord with EN-Eurocode 8 or similar Code Description http://www.eurocode-online.eu/en/eurocode-content/eurocode-8 Applicable Sections http://www.eurocodeonline.eu/blob/29990/60186e3a31085db7270120726ee3d789/eurocode8-data.pdf Some practical worked examples : Designing RC buildings in accordance with Eurocode 8.… http://eurocodes.jrc.ec.europa.eu/doc/WS_335/report/EC8_Seismic_Design_of_BuildingsWorked_examples.pdf Afghan Procurement Law http://www.ppu.gov.af/Documents/ProcurementLaw/English/Procurment%20Law%20incop orated%20Jan%202009.pdf Additional Resources AFGHAN FDI World Bank Ranking http://www.doingbusiness.org/data/exploreeconomies/afghanistan/ UK Investment Overview https://www.gov.uk/government/publications/exporting-to -afghanistan/doing-business-in-afghanistan-afghanistan-trade-and-export-guide US Investment Overview http://kabul.usembassy.gov/doing-business-local.html US Investment Climate Report 2013 http://www.state.gov/e/eb/rls/othr/ics/2013/205289.htm Afghan Investment Support Agency. Licensing, Procedures, Registration, etc. http://www.aisa.org.af/en/page/services/company-startup-procedure AFGHAN FDI Lloyds City Risk Index http://www.lloyds.com/cityriskindex/locations/city/kabul Accountancy & Tax (Baker Tilly FDI Guide for AFG Oct 2015) http://www.bakertillyinternational.com/media/1957512/doing-business-in-afghanistan.pdf Legal Perspectives (World Bank summary of Afghan Laws) http://www.doingbusiness.org/law-library/afghanistan Q&A from US perspective http://kabul.usembassy.gov/business-faq.html Building Design Standards: Seismic Resilience In accordance with EN-Eurocode 8 Code Description http://www.eurocode-online.eu/en/eurocode-content/eurocode-8 Applicable Sections http://www.eurocodeonline.eu/blob/29990/60186e3a31085db7270120726ee3d789/eurocode8-data.pdf Some practical worked examples : Designing RC buildings in accordance with Eurocode 8.… http://eurocodes.jrc.ec.europa.eu/doc/WS_335/report/EC8_Seismic_Design_of_BuildingsWorked_examples.pdf Afghan Procurement Law http://www.ppu.gov.af/Documents/ProcurementLaw/English/Procurment%20Law%20incop orated%20Jan%202009.pdf Transport Infrastructure & Economic Development http://iranrail.net/network.php http://www.carecprogram.org/index.php?page=carec-corridors CHINA / IRAN : shipping already commenced via Bandar Abbas January 2016 http://financialtribune.com/articles/economy-domestic-economy/35588/new-china-iran-shipping-route AFGHAN / IRAN : Joint commission for Chabahar Port http://ariananews.af/latest-news/afghan-iran-officials-to-form-joint-commission-for-chabahr-port/ CAREC CORRIDORS 5 & 6 : $860m Provision in ASIAN DEVELOPMENT BANK’S current business plan http://www.adb.org/sites/default/files/institutional-document/177136/cobp-afg-2016-2018.pdf Northern Corridor Line Status : Canarail Feasibility Studies for ADB http://canarail.com/en-CA/home/projects/ Q&A Foreign Direct Investment Brief Summary of Private Sector Considerations Pre-Entry Governance Infrastructure Facilities Market Demand Economy Market Access Security Legal Framework & Rule of Law, Compliance, Anti-Corruption, ImpEx Predictability Business Services & Support, Establishment, Insurances, Accounting, Tax & ImpEx Duty Frameworks Land, Buildings, Utilities, Human Resources Products, Locations, Volumes, Values, Indentification of End-Users Currency Stability, Growth, Cost & Price Inflation Physical Transportation, Voice & Data Comm's Facilities, Human Resources, Transportation, Payments Pre-Fabrication Design & Construction : Standard Risk Mitigations **Design Installation Materials (conc) Materials (steel) Collateral Warranty Independent Consulting Engineer (ICE) confirms design standards + seismic + functional brief ICE checks and confirms using geo-located photographic records on sites as built Mechanical batching plants + test cubes + core samples to independent laboratory Welding and rebar certification record submissions Insurance (aggregating the four points above) Administrative Provinces