Latest news with #megaprojects
Irish Times
5 hours ago
- Business
- Irish Times
Will the Government's big projects survive the next downturn?
The Government's updated National Development Plan (NDP) proposes to spend a vast sum of money on capital infrastructure. But beyond three 'mega projects' there is little detail and the vagueness of the document has led to some skepticism. In part one of today's Inside Politics podcast, Pat Leahy joins Hugh Linehan to discuss the NDP and whether the Government's promise to prioritise infrastructure could survive a major economic shock - the kind created by heavy US tariffs, for example, They then look at the Summer Economic Statement, also revealed this week, which shows there will not be much wriggle room in this year's Budget. In part two, back to the NDP and what it says about the Government's plan for the development of transportation infrastructure. Dublin's proposed MetroLink is one of the three mega projects identified, but there is €20 billion earmarked for other unidentified projects. Where should it go? How much will be spent on new roads, and what are the implications for carbon emissions? And what about public transport projects outside Dublin? Professor Brian Caulfield talks to Hugh and Pat. READ MORE Brian Caulfield is a Professor in Transportation in the Department of Civil, Structural and Environmental Engineering at Trinity College Dublin.
Zawya
16-07-2025
- Business
- Zawya
Tunisia: Accelerate implementation of priority projects at heart of Megaprojects Commission Meeting
Tunis – To accelerate the implementation of megaprojects and strategic priority initiatives in the sectors of health, transport, higher education, and scientific research took centre stage at the 5th periodic meeting of the Megaprojects Commission, chaired on Tuesday by Prime Minister Sarra Zaafrani Zenzri. The meeting provided an opportunity to review the progress of the ongoing projects and to evaluate proposed solutions to overcome existing challenges, according to a Prime Ministry press release. As part of the recommendations issued during the meeting, the commission called for the immediate resumption of construction work on the Class B Regional Hospital of Sbeïtla, in the governorate of Kasserine, following the selection of a contractor who is expected to complete the project before the end of this year. Likewise, the commission recommended advancing the National School of Engineers of Bizerte project, by selecting a public works company to complete the construction by the first quarter of 2026. The commission also called for the initiation of procedures to launch a call for tenders for the construction of the deep-water port and the associated logistics services zone in Enfidha, in accordance with international standards. Zenzri pointed out on the occasion, the need to accelerate the completion of all planned public projects within their set deadlines, in order to boost regional development, stimulate economic growth, and ensure social justice, thereby fostering investment and creating employment opportunities. She underlined that all governorates, delegations, municipalities, ministerial services, and public institutions at the central, regional, and local levels are at the service of the citizen and are therefore expected to address any issues encountered by citizens or investors. © Tap 2022 Provided by SyndiGate Media Inc. (
The National
16-07-2025
- Business
- The National
Saudi Arabia's property market offers promise of reliable returns for global investors
Global investors are now sizing up the profit returns from Saudi Arabia's real estate market, as the kingdom's once closed-off sector will soon be accessible. Interest has peaked, especially as opportunities to buy into megaprojects such as Neom's The Line, Oxagon and Diriyah are expected. On July 8, the Saudi cabinet approved the Law of Real Estate Ownership and Investment by Non-Saudis, replacing a framework from 2000 and formally opening designated zones across the kingdom, including Riyadh and Jeddah, to foreign ownership from January 2026. This sweeping reform aligns with the kingdom's Vision 2030 target to diversify the economy, boost foreign direct investment and expand real estate supply, while protecting sovereign interests through controlled zone designations. Foreign investors are probably asking what type of return on investment they could receive given the kingdom's activity, and the potential is promising. How ready is the market? Following publication in the official gazette, the Real Estate General Authority must publish implementing regulations on the Istitlaa platform within 180 days. It has time to define zones open to foreign buyers and prescribe approval processes. The Ministry of Investment will streamline foreign investment approvals and the Ministry of Interior will integrate land-registry data with security protocols. Together, these institutions must co-ordinate licensing, title registration and compliance checks to launch transactional platforms by the start of 2026. Saudi Arabia's government has demonstrated capacity for rapid digital roll-outs, exemplified by e-government portals and integrated identity systems, suggesting core registry upgrades can be delivered on schedule. Moreover, existing permissions already enabled foreign citizens to invest indirectly – for example, through Premium Residency, licensed developers, or real estate funds – creating precedents for a more structured regime, but the main hurdles could involve: Regulatory consultation, by compressing public comment cycles to meet the 180-day deadline. IT integration, by updating national land registries to handle new ownership categories and cross-border title verification. A financing ecosystem, which would need to be adapted, especially the mortgage frameworks for foreign buyers that will include risk and compliance protocols. With Vision 2030's political backing, a January 2026 activation is credible. Advancing to an April 2026 operational window will depend on top-level prioritisation of the law and dedicated interministerial task forces. Global market comparison This move by Saudi Arabia feels very much like Dubai did back in 2002, when it opened certain areas for foreign ownership. With the reforms of the country also making headlines, now would be a great time for any investor to get in early and benefit from capital appreciation of real estate as the market opens further. All of this will of course take time, as Dubai has shown, the period needed for the real estate market to lead to maturity takes time. Notwithstanding this, I think Saudi Arabia and its investors are in a great position to benefit from this move going forward. Global investors with their eyes on Saudi Arabia must consider local returns against Gulf and global benchmarks. In the fourth quarter of 2024, Saudi Arabia's real estate price index rose 3.6 per cent year-on-year, led by a 10.2 per cent price surge in Riyadh and 4.6 per cent in Najran. Meanwhile, rental markets remain strong. Riyadh yields average 8.89 per cent and Jeddah 7.89 per cent gross annually. If we were to compare Saudi Arabia with the UAE, the US and the UK, Dubai delivers rental yields between 5 per cent and 11 per cent, buoyed by robust demand in mixed-use and luxury segments and the golden visa programme. The US's average gross rental yield is 6.68 per cent as of the second quarter of 2025, with high-yield cities such as Detroit exceeding 20 per cent. The UK average buy-to-let gross yield stands at 5.60 per cent, with cities including Sunderland and Aberdeen offering yields above 8 per cent. Saudi Arabia's combination of double-digit yields and mid-single-digit price appreciation positions it competitively within the Gulf and many western markets. More needed Real estate market maturity marked by liquidity, transparency and global investor confidence will take time as has been shown in the UAE, but as long as Saudi Arabia build the below, it should be well on its way to maturity in the years to come. Secondary market depth will be needed by launching real estate investment trusts and collective investment schemes to deepen capital pools and improve liquidity. Valuation standards will need to be upgraded by establishing independent appraisal bodies and aligning with IFRS 13 for fair-value reporting. Legal and dispute resolution will also require upgrading, by expanding specialised real estate courts and arbitration centres to protect investor rights. Financing and securitisation will need to be more competitive by developing covered-bond and mortgage-securitisation markets to diversify funding and lower borrowing costs. These enhancements, while not prerequisites for the January 2026 opening, will be essential for evolving from a frontier to a mature market akin to the UK and US over several years. The opening of Saudi Arabia's real estate market is one of the most consequential investment gateways in the region since the UAE did the same more than 20 years ago. Regulatory foundations appear on track for January 2026, with an April 2026 operational window possible, if expedited. Early market metrics, robust price growth and high rental yields will underscore strong growth potential. But full maturation will depend on continued reforms in liquidity, transparency and financing infrastructure. For global investors, Saudi Arabia offers frontier-market yields with the promise of a reliable long-term destination as institutional frameworks deepen under the Vision 2030 initiative.
Yahoo
16-07-2025
- Business
- Yahoo
6 Energy Megaprojects That Blew Past Their Budgets
A growing share of the global economy is increasingly committed to large-scale, complex, and expensive undertakings involving massive infrastructure development and technological advancements, aka megaprojects. Annual worldwide spending on megaprojects such as high-speed railway systems, international airports, hydroelectric dams, motorways, power plants, wind and solar farms, as well as large public ICT systems to digitize tax, health, and pensions is estimated at between US$6 and US$8 trillion, or 8% of global GDP. Unfortunately, it has become a well established fact that megaprojects--defined as projects with budgets in excess of US$1billion--consistently fail to be delivered on time or on budget. Indeed, a study by Oxford University's Saïd Business School found that less than 3% of megaprojects are delivered both on budget and on time. Megaprojects are, by their very nature, often pioneering and difficult to manage, with high early-stage sunk costs frequently creating project lock-in and subsequent cost overruns. Egypt's Suez Canal took this to the extreme, with a cost overrun estimated at 1,900%, or 20 times the original budget. Here are six large-scale energy megaprojects that experienced significant budget overruns but remain relevant today either because of their long-term output, strategic value, or lessons learned. Source: Saïd Business School Kashagan Oil Field (Kazakhstan) Initial est. $10bn → Final cost ~$55bn Long delays, technical problems (H?S corrosion), but now a major contributor to global supply The Kashagan Oil Field was discovered in 2000 in Kazakhstan in the northern region of the Caspian Sea. The field has recoverable oil reserves estimated at 19- billion barrels, making it one of the largest fossil fuel discoveries over the past four decades. A consortium of seven companies was formed in order to develop the reserves, with Exxon Mobil (NYSE:XOM), Shell Plc (NYSE:SHEL), Eni S.p.A (NYSE:E), TotalEnergies (NYSE:TTE) and Kazakhstan's KazMunayGas each owning a 16.8% stake in the project while China National Petroleum Corporation and Japan's Impex owned 8.4% and 7.6% share, respectively. Project development kicked off in 2001 with an expected completion date of 2005. The initial allocated budget for the venture was US$10 billion, which was viewed as a reasonable figure to help generate considerable income for the young country. Unfortunately, the project fell eight years behind schedule and ended up costing $55 billion, more than five times the original budget. To add insult to injury, operations had to be shut down shortly after the project went live in 2013 due to a damaged main pipeline leaking dangerous and corrosive hydrogen sulfide (H2S) gas into the atmosphere. The consortium burned off the gas as an emergency measure, releasing toxic sulfur dioxide (SO2) into the atmosphere. Nevertheless, the Kashagan Oil Field has been an economic success, contributing significantly to the Kazakhstan economy by being a major source of oil production and export revenue. According to Offshore Technology, Kashagan accounts for ~19% of Kazakhstan's 1.9 million barrels in daily oil output, translating into significant revenue for the country through taxes, royalties, and other payments. Gorgon LNG (Australia) Original est. ~A$37bn → Final ~A$54bn Execution challenges on Barrow Island; still key to Asian LNG trade The Gorgon liquefied natural gas (LNG) project in Western Australia is not only the country's biggest single resource natural gas project but also one of the largest natural gas projects in the world. The Gorgon gas field was first discovered in 1980 by West Australian Petroleum (WAPET) before Chevron Corp. kicked off oil and gas exploration at the field in 1999. Chevron owns 47.3% stake in the project while Exxon Mobil and Shell own a 25% share apiece. Construction on the project began in 2009 and was completed in March 2016, making Gorgon the fourth LNG export development in Australia. Gorgon comprises three LNG trains, each with a capacity of 5.2 million tonnes per annum (Mtpa). Similar to the vast majority of megaprojects, Gorgon LNG experienced significant delays and cost overruns. Initially estimated to cost $37 billion, the project ultimately cost $54 billion mainly due to logistical challenges of building on the remote Barrow Island, making the project Australia's largest single private sector investment in history. Further, the project missed its delivery date by two years due to weather delays, staffing and skill requirements, high wages, low productivity and logistical challenges. However, it was well worth it because the Gorgon LNG project remains a pivotal player in the Asian LNG trade, with its large production capacity and strategic location in Western Australia making it a crucial supplier to the Asia-Pacific region. Tapi Pipeline (Turkmenistan–Afghanistan–Pakistan–India) Political risks and delays; cost ballooned from ~$7bn to over $10bn Still relevant to Central/South Asian gas integration The TAPI Pipeline, or Turkmenistan-Afghanistan-Pakistan-India Pipeline, is a project with a long and complex history, dating back to initial discussions in the 1990s. The pipeline is designed to transport natural gas from Turkmenistan to Afghanistan, Pakistan, and India, aiming to address energy needs in the region. Despite its potential benefits, the project has faced numerous delays and challenges throughout its development. TAPI is poised to be a game changer in Central Asia's energy landscape. The US$10 billion pipeline will cover more than 1,800 km and transport up to 33 billion cubic metres (bcm) of natural gas from the Galkynysh Gas Field in Turkmenistan to Pakistan and India via Afghanistan. Pakistan and India are slated to receive 14 bcm via the natural gas pipeline while Afghanistan will receive 5 bcm. The Galkynysh Gas Field is the world's second-largest gas field in terms of gas reserves. Construction of TAPI began in 201 but was soon halted due to security reasons after workers were killed by unknown assailants. However, the gas pipeline has once again become the focus of attention following the exit of U.S. forces from Afghanistan in 2021. Still, China remains hesitant to engage directly in the project due to security risks. Trans Mountain Expansion (Canada) Estimated at ~$5.4bn in 2013 → ~$30.9bn by 2023 Continues to shape Canadian export politics and oil sands economics Back in 201, the Canadian government bought and nationalized the existing Trans Mountain Pipeline from a unit of Kinder Morgan Inc. (NYSE:KMI) in a bid to ensure that the expansion would be built. In effect, the federal government acquired its corporate owner, Trans Mountain, which became a federal Crown corporation with Ottawa framing this decision around the desire to secure a key Canadian asset. TMX ended up witnessing massive cost overruns, with the project costing C$34 billion, more than six times the original estimate. TMX is expected to triple the flow of crude from landlocked Alberta to Canada's Pacific coast to 890,000 barrels per day (bpd). The pipeline is viewed as a boon to Asian refiners since it provides them with an opportunity to diversify their imports while also giving Canadian producers more access to U.S. West Coast and Asian markets. TMX crude exports are expected to clock in at ~350,000-400,000 bpd, and compete with heavy grades from the Middle East and Latin America. Cold Lake crude is about $10 per barrel cheaper than Iraq's Basra Heavy for deliveries to China. Mingyang Qingzhou 4 Offshore Wind (China) Cost overruns linked to subsea transmission and turbine scaling Now a test case in high-capacity wind integration The Mingyang Qingzhou 4 offshore wind farm project is part of a larger development by Mingyang Smart Energy in the waters off the coast of Guangdong, China. This project is focused on utilizing deep-sea floating wind turbine technology to harness wind energy in the area. The 16.6 MW floating wind platform is the largest single-capacity floating wind power platform in the world. The floater is capable of generating ~54 GWh annually, enough to power 30,000 homes. The Mingyang Qingzhou 4 offshore wind farm project has faced significant cost overruns due to hthe igh costs of its giant turbines. Ichthys LNG (Australia) Est. ~$20bn → Final ~$45bn Long lead times, offshore-to-onsite complexity; critical to Japan's gas supply Discovered in 2000, Australia's Ichthys offshore LNG field covers ~800km² off the northern coast of Western Australia. The giant Australian LNG project is estimated to cost ~$45 billion, more than double its initial budget of $20 billion, and produces 8.9 million tonnes (Mt) of LNG annually, 100,000 barrels of condensate a day and and 1.6 Mt of liquefied petroleum gas (LPG) per year over its 40 years of operational life. The project includes 50 subsea production wells; a floating, production, storage, and offloading facility (FPSO) and a semi-submersible central processing facility. This megaproject is owned by its operator, Japan's INPEX (66.245%), while TotalEnergies owns a 26% stake. Ichthys is critical for Japan's energy sector: Approximately 70% of the LNG produced by the Ichthys project is shipped to Japanese buyers, equating to about 10% of Japan's total annual LNG import Alex Kimani for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
10-07-2025
- Business
- Zawya
Global economy faces $1.5trln hit due to mega projects delay
Global economy is at risk of missing out on more than $1.5 trillion of economic growth by 2030 due to late delivery of mega projects, said an industry expert. Despite the backdrop of record levels of investment, the ability to deliver on time, on budget and with the promised economic and societal benefits remains exceptional, stated delivery consultants and construction experts Mace in its report titled 'The Future of Major Programme Delivery.' The new report, which analysed over 5,000 mega and giga-projects and programmes from countries around the globe, has revealed for the first time that 11% are at risk of significant delay or cancellation. Mace, in the report, looks at different approaches to delivery and suggests actionable solutions centring around more collaborative models, including being more outcomes focused, having a 'one team' approach and sharing risk and reward. It also suggests taking more time up-front to ensure readiness, defining and agreeing good governance, having a clear scope definition and cost realism. Mace pointed out that the commissioning of major programmes, whether for energy, high-speed rail, hospitals or homes, schools or flood defences, as the climate changes and as urbanisation continues, has resulted in the number increasing by 280% since 2010, a trend set to continue. Dominated by the US, with 1,663 projects announced since 2010, and driven by countries such as India (729), Saudi Arabia (577) and the UK (484), data from the report shows programmes are becoming larger, more complex and more expensive. Driven in part by political support and public investment, the top 10 live global projects looked at have a combined total value of $685 billion. Mace Consult CEO Davendra Dabasia said: "When large-scale programmes are significantly delayed and go over budget, the focus on the positive impact they have is diluted. When major programmes exist to deliver beneficial outcomes for society, it's a factor that needs to be addressed." "Many of the issues are systemic, often driven by national politics and policies, and reflect the challenging ecosystem that delivery takes place in," noted Dabasia. "As major projects and programmes become larger and more complex, delivery models need to be agile to tackle challenges and capitalise on any new opportunities. The solution must rest with more collaborative delivery approaches that prioritise the creation of integrated teams aligned to common goals that seek the same positive outcomes," he added. Christopher Seymour, Managing Director for Middle East and Africa at Mace Consult, said: "This report arrives at a pivotal moment, with the Middle East and Africa region – particularly the UAE and Saudi Arabia - at the epicentre of a global construction boom." "Saudi Arabia alone has seen a 643% increase in the number of active megaprojects since 2010, driven by Vision 2030 and landmark programmes like Diriyah, Qiddiya, and King Salman International Airport," stated Seymour. "The scale and complexity of major programmes like these demands a delivery approach that is collaborative, integrated, and focused on outcomes. It is about building trust, aligning incentives, and creating a one-team culture that empowers people to make the right decisions for the programme or project, not just their organisation," he added. The Mace report highlights that as projects grow in size and scope so does the risk of delay. With longer timeframes, there is a higher chance of encountering significant external events such as a price shock, war or political upheaval. This is notwithstanding new digital tools, including AI systems that integrate cost and time overlays, and automation of processes designed to help boost productivity and enhance human capability, it added. The paper is clear that the challenges faced in delivery are not a reflection of a lack of capability within the supply chain, but issues such high levels of bureaucracy, protracted consents processes and changes in scope and funding that industry must overcome. This is compounded by optimism bias, incomplete designs and pressure to 'get spades in the ground' without proper planning. The focus on tackling these challenges and the subsequent impact on cost and schedule continues to detract from the beneficial outcomes of these programmes. The report highlights that collaborative approaches result in a 4%-13% reduction in cost and a 50% reduction in the risk of projects being delivered late. With more than 11,000 live mega-programmes and 250 giga-programmes and projects currently in delivery around the globe, and the number growing, proponents of the report hope the focus on these will rest with the value they bring rather than on how they are delivered.- TradeArabia News Service Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. ( LONDON
