10
WORLD NEWS
CONSTRUCTION EUROPE
SEPTEMBER 2014
CHINA
The 2015 BICES exhibition will be held from 22
to 25 September at the New Beijing International
Exhibition Center (NBIEC), which is on the northern
outskirts of the Chinese capital, near its main
airport. It will be the 13th edition of the BICES
show. According to the show's organisers, the China
Construction Machinery Association (CCMA), the
NBIEC offers eight indoor halls with a total area of
106,000m
2
. There are also two outdoor exhibition
areas with 50,000m
2
each for a grand total of
206,000m
2
. The BICES exhibition is held every two
years, alternating with the Bauma China exhibition
in Shanghai. For the last few editions it has been
held at the Jiu Hua International Exhibition Center,
outside Beijing. The move to the NBIEC brings the
event closer to the city, but it is still some 25km from
the centre.
LAOS
The Asian Development Bank (ADB) has approved
funding of US$217 million (€164 million) for
a 290MW hydropower project in Laos which
will be built under a public-private partnership
(PPP) arrangement. The bulk of the electricity
generated by Nam Ngiep 1 will be delivered to the
neighbouring country of Thailand. The project, which
is expected to start generating in 2019, will also
supply users in Laos and is predicted to increase the
country’s household electrification rate. The project
will be built by the Nam Ngiep 1 Power Company
(NNP1PC), jointly owned by Kansai Electric Power
of Japan, EGAT International of Thailand, and the
Government of Laos. Kansai is the second largest
power utility in Japan, while EGAT International is an
international arm of Electricity Generating Authority
of Thailand, the buyer of the electricity.
BRAZIL
Holcim and Lafarge have announced their Brazilian
divestment plan, which is designed to help win
regulatory approval for the two companies’ proposed
merger. This follows a July statement on divestments
in the rest of the world. The proposal being made
to Conselho Administrativo de Defesa Econômica
(CADE), the Brazilian competition regulator, is for
the sale of three integrated cement plants and two
grinding stations with a total capacity of 3.6 million
tonnes of cement per year, along with one ready-
mixed concrete plant all located in south eastern
Brazil.
US
Martin Marietta Materials has sold a quarry in
Oklahoma, US, and two rail yards in Dallas, US, to
Vulcan Materials. The divestment was a condition
made by the US Department of Justice to allow
Martin Marietta’s acquisition of Texas Industries,
which closed on July 1. Vulcan‘s CEO, Tom Hill, said,
“Texas is a strategic market for us. This acquisition
provides an important complement to our other
aggregates sources and distribution facilities across
the state. These facilities enhance our aggregates
supply capabilities in Texas and provide additional
opportunities to better serve our customers.”The
value of the quarry transaction has not been
disclosed.
WORLD IN BRIEF
BRAZIL
Former Votorantim chair dies
Former chairman
of Brazilian cement
producer Votorantim,
Dr Antônio Ermírio de
Moraes has died of heart
failure at the age of 86.
Raul Calfat, chairman of
Votorantim Participações
(VPAR), said, “The history
of Votorantim is directly
related to the personal
dedication and hard
work of Dr Antônio, who
served as an example and
inspiration for its values,
such as ethics, respect,
and entrepreneurship.”
Votorantim is Brazil’s
largest cement producer
and is active in other
parts of Latin America.
Votorantim Group
also has interests in
the metals, paper and
agribusiness sectors. The
company was founded
in 1919 by José Ermírio
de Moraes, Dr Antônio
Moraes’ father.
Dr Moraes joined
Votorantim in 1949. His
tenure as chairman in
the 1980s is associated
with the company’s
internationalisation. He
left the group in 2001
when he was diagnosed
with Alzheimer’s Disease.
He was also politically
active. In 1986 he
ran for governor of
São Paulo state but
was not successful.
Among the issues he
was associated with
were the advancement
of democracy,
improvement of Brazil’s
health services and the
creation of employment
opportunities.
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PANAMA
Panama canal dispute
reaches agreement
Two parties resolve problems which have
held up work on expansion project
An agreement has been reached between contracting consortium Grupo Unidos por
el Canal, (GUPC) and the Panama Canal Authority (ACP) which the two parties say will
allow the completion of the canal expansion project.
GUPC, which comprises Sacyr, Impregilo, Jan De Nul and CUSA Urban Construction,
said the variation agreement outlined a plan to co-finance the scheme, which fell into
financial difficulty at the start of this year.
The dispute between GUPC and ACP related to additional costs of some US$1.6 billion
(€1.21 billion) on the project linked to ground conditions. The agreement follows a
memorandum of understanding to resolve the dispute, signed by the two parties in
March.
The agreement provides for the completion of the project by 31 December, 2015, with
a number of intermediate steps, such as the delivery of the lock gates – eight out of 16
have already been delivered to Panama – by February 2015.
The agreement establishes a co-financing agreement between ACP and GUPC for
an additional US$100 million (€75.92 million) each, and the contribution by GUPC
of another US$400 million (€303.68 million) resulting from the conversion of a
performance bond from project insurer Zurich into additional financing.
At the same time, the various claims by GUPC regarding unexpected costs incurred
during the works will be settled through an international arbitration before the Court
of Miami, US, which on 21 July this year initiated the discussion on a US$180 million
(€136.65 million) tranche.
The ACP said that construction of the third set of locks was 73% complete.
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A new 18.8km metro line built by a consortium led
by Bechtel has been opened in Washington DC, US.
Phase I of the Dulles Corridor Metrorail Project
(the Silver Line), was one of the largest and
most complex urban rail projects in the US. The
US$1.6 billion (€1.2 billion) project was awarded
to a consortium of Bechtel Infrastructure and
Washington Group International in 2007. The line
with its five stations
connects the city’s
western suburbs to
the existing metro
network. Phase
II of the project
will extend the
Silver line further
West to the Dulles
International
Airport and beyond.
