INFRASTRUCTURE INDUSTRY in NIGERIA Siccode

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INFRASTRUCTURE INDUSTRY IN NIGERIA

Siccode 502

May 2014

COMPILED BY: Carole Veitch [email protected]

DIRECTORS: MAUREEN MPHATSOE (CHAIRPERSON), MICHELLE BEETAR (EXPERIAN), PAXTON ANDERSON (EXPERIAN), ANDREW MCGREGOR (MANAGING) © Copyright Who Owns Whom (Pty) Ltd

Infrastructure Industry in Nigeria Contents Siccode 502

Contents

1. INTRODUCTION ...... 1 2. SIZE AND STRUCTURE OF THE INDUSTRY ...... 1 2.1. Geographic Position ...... 1 2.2. Key Cities and Regions ...... 2 2.3. Size of the Industry ...... 2 2.3.1. Key Indigenous and Foreign Players ...... 3 3. STATE OF THE INDUSTRY ...... 8 3.1. Local ...... 8 3.1.1. Corporate Actions ...... 9 3.1.2. Regulations ...... 9 3.1.3. Opportunities for the Construction Industry ...... 10 3.1.3.1. Transport ...... 10 3.1.3.2. Energy/Power ...... 10 3.1.3.3. Water Supply and Treatment ...... 11 3.1.3.4. Healthcare ...... 11 3.1.3.5. Education ...... 11 3.1.3.6. Telecommunications ...... 11 3.1.3.7. Residential Building ...... 11 3.1.3.8. Commercial ...... 12 3.1.3.9. Retail ...... 12 3.1.3.10. Hotels and Tourism ...... 12 3.1.3.11. Mining and Industrial ...... 12 3.2. Continental ...... 13 3.3. International ...... 13 4. INFLUENCING FACTORS ...... 14 4.1. Economic Environment ...... 14 4.1.1. General ...... 14 4.1.2. Effects on the Construction Sector ...... 15 4.2. Socio-Political Environment ...... 15 4.3. Infrastructure Deficit ...... 15 4.3.1. Government Infrastructure Programme Spend ...... 15 4.3.2. Foreign Direct Investment (FDI) ...... 15 4.3.3. Private Sector Investment ...... 16 4.3.4. Public Private Partnerships ...... 16 4.4. Urbanisation ...... 16 4.5. Local Content ...... 16 4.6. Corruption ...... 17 4.7. Industry Supply Chain ...... 17 4.7.1. Capacity, Quality and Security of Supply ...... 17 4.8. Industry Specific Issues ...... 17 4.8.1. General Trends ...... 17 4.8.2. Input Costs ...... 17 4.8.3. Cyclicality ...... 17 4.8.4. Health and Safety ...... 18 4.9. Competition...... 18 4.9.1. Barriers to Entry ...... 18 4.9.2. Public Procurement and the Tendering Process ...... 18 4.10. Labour Resources ...... 18 4.10.1. Licensing ...... 18

4.10.2. Skills Shortages ...... 19 4.10.3. Opportunities for Foreign Professionals ...... 19 4.11. Technology, Research & Development (R&D) and Innovation ...... 19 4.11.1. Technology ...... 19 4.11.2. Research...... 19 4.11.3. Innovation ...... 20 4.12. Environmental Concerns ...... 20 5. SWOT ANALYSIS ...... 21 6. FUTURE OUTLOOK ...... 21 6.1. Construction Industry Forecast ...... 21 6.2. Macroeconomic Outlook ...... 21 6.3. Political Outlook ...... 22 7. INDUSTRY ASSOCIATIONS ...... 22 8. REFERENCES ...... 22 8.1. Publications ...... 22 8.2. Websites ...... 23 APPENDIX 1 ...... 24 List of Institutions Offering Building in Nigeria ...... 24 COMPANY PROFILES ...... 25 ARAB CONTRACTORS OSMAN AHMED OSMAN & CO...... 25 AURECON SOUTH AFRICA (PTY) LTD...... 27 BRUNELLI CONSTRUCTION COMPANY (NIGERIA) LTD ...... 30 BUILDSTRUCT NIGERIA LTD ...... 32 C&C CONSTRUCTION COMPANY LTD ...... 33 CAPPA & D'ALBERTO PLC ...... 34 CCECC NIGERIA LTD ...... 36 CMB BUILDING MAINTENANCE & INVESTMENT COMPANY LTD ...... 37 COSTAIN WEST AFRICA PLC ...... 38 DELATTRE BEZONS NIGERIA LTD ...... 40 DUTUM COMPANY LTD ...... 41 G CAPPA PLC ...... 42 GODSTAR ENGINEERING COMPANY LTD ...... 46 GROUP FIVE POWER PROJECTS LTD (NIGERIA) ...... 47 HFP ENGINEERING (NIGERIA) LTD ...... 48 HITECH CONSTRUCTION COMPANY LTD ...... 50 ITB NIGERIA LTD ...... 51 JULIUS BERGER NIGERIA PLC ...... 52 LEE ENGINEERING & CONSTRUCTION COMPANY LTD ...... 54 PRODECO ENGINEERING LTD ...... 56 PW NIGERIA LTD ...... 57 REYNOLDS CONSTRUCTION COMPANY NIGERIA LTD ...... 58 SAFKO CONSTRUCTION COMPANY NIGERIA LTD ...... 59 SETRACO NIGERIA LTD ...... 60 STEMCO LTD ...... 61 TECHNOVA CONSTRUCTION NIGERIA LTD ...... 62

1. INTRODUCTION

This report focuses on the infrastructure industry in Africa’s largest economy, the Federal Republic of Nigeria. With a current nominal value of approximately US$12.5bn, Nigeria’s formal Building and Construction sector has emerged as a key industry, serving all sectors of the Nigerian economy. As an enabler of social and economic development, the construction industry has a strategic role to fulfil in reshaping the West African nation. The complex and multi-faceted sector comprises indigenous, indigenised and international companies that operate primarily in the General Building, Industrial, Commercial Building and Heavy Civil Construction segments, although the oil and gas sector is providing an increasing number of opportunities. Of concern to stakeholders is the unregulated informal construction sector which has been blamed for numerous building collapses.

2. SIZE AND STRUCTURE OF THE INDUSTRY

2.1. Geographic Position

The Federal Republic of Nigeria is located on the Gulf of Guinea in West Africa. The country covers an area of 923,768 km² and its Atlantic coastline measures 853km. Borders are shared with Chad and Cameroon in the east, the Republic of Benin in the west and Niger in the north. The Niger and Benue Rivers converge and empty into the Niger Delta, forming one of the world's largest river deltas.

The Niger Delta Region (NDR) is the hub of Nigeria’s hydrocarbon industry and is home to several construction companies that specialise in the design and construction of both on-shore and off-shore projects in the oil and gas sector. Given the strategic importance of the NDR, the Nigerian federal government, through the Niger Delta Development Commission (NDDC), has prioritised infrastructural development in the region, with a particular focus on the construction of roads and dams. Over the next three decades, the construction of dams across the vast flood plain is expected to reduce the area of inhabitable terrain in the NDR by up to 40%.

[Source: Nations Online Project]

2.2. Key Cities and Regions

Nigeria is a federal constitutional republic comprising 36 states listed below and a Federal Capital Territory (FCT). The states of the federation are sub-divided into 774 districts, each with its own local government. The country's six geopolitical zones are known as South East, South South, South West, North West, North East and North Central.

Federal Republic of Nigeria: States 1. Anambra 13. Edo 25. Nasarawa 2. Enugu 14. Ekiti 26. Niger 3. Akwa Ibom 15. Gombe 27. Ogun 4. Adamawa 16. Imo 28. Ondo 5. Abia 17. Jigawa 29. Osun 6. Bauchi 18. Kaduna 30. Oyo 7. Bayelsa 19. Kano 31. Plateau 8. Benue 20. Katsina 32. Rivers 9. Borno 21. Kebbi 33. Sokoto 10. Cross River 22. Kogi 34. Taraba 11. Delta 23. Kwara 35. Yobe 12. Ebonyi 24. Lagos 36. Zamfara

Federal Capital Territory (FCT) Abuja

Abuja, located in the FCT in the centre of Nigeria, replaced Lagos as the nation's capital in December 1991. The modern city is widely considered to be the best purpose-built city in Africa. Nigeria's commercial capital, Lagos, with an estimated urban population of over 21 million people, is Africa’s largest city. Kano, the commercial capital of the north, is Nigeria’s second most populous city. Other major cities, with populations exceeding one million, are Ibadan, Kaduna, Port Harcourt, Benin City, Maiduguri and Zaria.

The disparity between infrastructural development in northern Nigeria and the oil-producing south is pronounced. This has been attributed to the sectarian violence in the country. The insurgency waged by the Islamist extremist group, Boko Haram, has deterred investment in the north and many construction companies have withdrawn from the region because of security concerns.

2.3. Size of the Industry

As at the 3rd Quarter of 2013, the contribution of Building and Construction to Nigeria’s Gross Domestic Product (GDP) was 2.49%, compared to 2.30% in 2012, which is relatively small by global standards. The nominal value of activities in the formal Building and Construction sector is estimated to be over US$12.5bn. Nigeria also has a large informal building and construction sector, which comprises numerous small privately-owned enterprises, as well as a great number of independent artisans and labourers who hire out their services. As contractors operating in the informal domestic construction market are unregistered and unregulated, reliable data relating to the actual size of the industry is not available.

Nigeria’s multi-billion dollar construction industry is dominated by Julius Berger Nigeria Plc. The Nigerian Stock Exchange-listed company, in which Nigerians have a majority shareholding, is the largest private employer in Nigeria. The market is characterised by the presence of numerous major foreign companies, including the Chinese state-owned China Civil Engineering Construction Corporation (CCECC). Dangote Cement Plc (DCP) is a market leader in the construction industry supply chain. The Nigerian company is West Africa's leading cement producer and has been named as one of the best performing companies on the African continent.

2.3.1. Key Indigenous and Foreign Players

Geographic Number Of Estimated Company Nature Of Business Footprint Employees Turnover Arab Contractors Egyptian 77,000 $1,621.6m ♦ State owned. Osman Ahmed headquarters. (2013) ♦ Specialises in the construction of public Osman & Co Operates in Nigeria buildings, bridges, roads, tunnels, and the rest of airports, housing, water & sewage Africa. projects, wastewater treatment plants, power stations, dams, hospitals, sports facilities, etc. Aurecon South Australian and South 7,500 $1,200.0m ♦ Provides civil engineering, construction Africa (Pty) Ltd African (2013) supervision and specialist technical headquarters. services to both the public and private Operates globally sector. ♦ Services cover the conceptual, feasibility and planning phases of the project, through to design and construction supervision. ♦ Ancillary services include advisory and project management services. Brunelli Nigerian 196 ♦ Since 1972, the company has operated in Construction headquarters Nigeria in the following fields:

Company (Nigeria) situated in Orile o Construction of roads and bridges Ltd Iganmu, Lagos State o Piling and foundation works Subsidiary of M/S Group head office o Diaphragm wall installation Società Costruzione located in Milan, o Construction of jetties Ingg. Piccolo Brunelli Italy. o Shore protection works and C.A.S. Milan, Also operates in o Dredging of canals Italy Zambia. o Drainage construction o Water supply & treatment plants o Production of spun concrete NEPA poles & structural members, pre- cast piles, sheet pile quay wall sections. Buildstruct Nigeria Nigeria ♦ Specialises in the construction of Ltd commercial and residential buildings, including hotels. C & C Construction Nigeria 1,000 ♦ Specialises in residential and commercial Company Ltd construction. Part of the Chagoury ♦ Projects range from single unit projects Group for individuals to corporate and multinational projects. Cappa and Nigeria 3,000 $64.2m ♦ Founded in 1932. D’Alberto Plc. (2011) ♦ Focuses primarily on the construction of residential, commercial and office buildings. ♦ Recent projects include the Zenith Bank and Diamond Bank Towers in Lagos.

Geographic Number Of Estimated Company Nature Of Business Footprint Employees Turnover CCECC Nigeria Ltd Nigeria 20,000 (Group) ♦ Civil engineering design and construction Subsidiary of the (CCECC has a global of railways and bridges. Chinese state-owned footprint with more ♦ Design and construction of roads, China Civil than 40 subsidiary expressways and bridges. Engineering companies located ♦ Design and construction of municipal Construction across Asia, Africa, works. Corporation (CCECC) America, Europe and ♦ Real estate development. Oceania.) ♦ Awarded the Nigerian Transport Stakeholders’ Excellence Award in December 2012 for “The Best Transport Infrastructure Construction of the Year”. CMB Building Nigeria 250 ♦ The company specialises in the real estate Maintenance & industry, with a specific focus on the Investment Co. Ltd following.

o Estate / Property Development; o Facilities Management; o Asphalt Road Surfacing and Repairs; o Real Estate Business Planning and Evaluation; and

o Real Estate Advisory. Costain West Africa Nigeria 603 $46.9m ♦ Incorporated in 1948, Costain is Nigeria's Plc Has a regional office (2012) oldest construction company. Formerly a subsidiary in Ghana ♦ Specialises in five key segments. These of the Costain Group are Infrastructure & Civil Engineering, UK Plc Residential & Housing, Rail & Road, Furniture & Joinery and Oil & Gas. Delattre Bezons Nigeria ♦ ISO 9001:2008-certified construction Nigeria Ltd (DBN) company with more than 30 years of Subsidiary of experience in Nigeria. Entrepose Contracting ♦ Specialises in the design and construction of both on-shore and off-shore projects in the oil, gas and energy sectors. ♦ Services portfolio includes the following.

o Storage Tank Construction o Plant Construction o Turn Around Maintenance of Refineries

o Pipelines o Services o Energy o Heavy Lifting Operations o Scaffoldings o Piping & Structural Fabrication (including Sub-sea Fabrication)

o Sourcing and Procurement Services.

Geographic Number Of Estimated Company Nature Of Business Footprint Employees Turnover Dutum Company Nigeria ♦ Specialises in the following:

Ltd o Civil & Building Engineering o Real Estate Development o Oil & Gas o Quarrying ♦ The company also undertakes design, construction supervision and project management projects as stand-alone cases. ♦ Conferred with the award for outstanding indigenous construction company of the year 2012 by African Leadership Magazine. G. Cappa Plc Nigeria 1,085 $3,183.3m ♦ Incorporated in 1952 and operates as a (2012) Private Liability Company in Building and Civil Engineering Construction. ♦ Areas of expertise include industrial and commercial projects, as well as educational facilities and residential developments. Godstar Nigeria ♦ Multi-disciplinary integrated engineering Engineering company that commenced operations in Company Ltd 1997. ♦ Core consultancy and construction competencies include Architecture, Urban Development, Engineering Design, Construction, Project Management, Real Estate Property Development, Development and Implementation of policy framework and Institutional Reforms, Engineering investigation, Field Studies and Feasibility Reports, Urban & Rural Roads development and management services. ♦ Awarded the World Quality Commitment (WQC) International Star Award (Gold Category) in 2013. Group Five Power Nigeria 10,846 ♦ Specialises in the construction of Projects Ltd Southern Africa, (Group) infrastructure and related services. (Nigeria) sub-Saharan Africa, 894 Subsidiary of the Poland and Hungary (West Africa) South African company, Group Five Ltd

Geographic Number Of Estimated Company Nature Of Business Footprint Employees Turnover HFP Engineering Nigeria 7,000 ♦ Leading player in the mixed residential (Nigeria) Ltd and commercial market. Subsidiary of Globe ♦ More than 30 years of experience in the International Holdings Nigerian construction and civil engineering SA industry. ♦ Responsible for laying hundreds of kilometres of roads across Nigeria (many using the company’s unique interlocking paving stone system) Hitech Construction Nigeria 1,000 ♦ Specialises in infrastructure development. Company Ltd ♦ Construction and rehabilitation of roads Part of the Chagoury and bridges. Group's construction ♦ Site clearance. division ♦ Earthworks and drainage. ITB Nigeria Ltd Nigeria 4,000 ♦ Civil engineering and construction Has a major regional company whose main focus is residential Part of the Chagoury office and building projects and industrial Group manufacturing construction. facility in Abuja. ♦ ITB also manufactures pilings, provides electro-mechanical services and supplies products and equipment. Julius Berger Nigeria 18,216 $1,330.1m ♦ Integrated Nigerian construction Nigeria Plc (JB) (2013) company, which has been operating in Nigeria since 1965. ♦ Listed on the Nigerian Stock Exchange since 1991. The company currently has a majority Nigerian shareholding ♦ Named as Nigeria's leading construction company in a 2010 edition of Business World Magazine. ♦ The company is the largest private employer in Nigeria. ♦ Specialises in structural engineering projects, infrastructure development, the construction of roads and expressways, as well as the construction of residential and commercial buildings. ♦ Quality Management System certified to fulfill the requisitions of ISO 9001:2008 Lee Engineering & Nigeria ♦ Leading indigenous EPCOM (Engineering, Construction Has offices in Italy Procurement, Construction, Operations Company Ltd and the United and Maintenance) company. Kingdom ♦ Specialises in the Nigerian oil, gas and power generation sectors of the Nigerian economy.

Geographic Number Of Estimated Company Nature Of Business Footprint Employees Turnover Prodeco Nigeria ♦ Ltd Liability indigenous engineering Engineering Ltd company specialising in the following:

o Design and construction of buildings and ancillary structures;

o Design and construction of roads and bridges;

o Project estimation and evaluation; o Management and monitoring of civil/building engineering projects;

o Professional training; o Equipment leasing; and o Production/sales of pre-cast concrete elements:

o Electric poles o Sewage pipes o Interlocking paving blocks o Kerbstone o Sandcrete blocks PW Nigeria Ltd Nigeria 5,000 ♦ PW Nigeria Ltd was established in 1974. Subsidiary of the ♦ Core strengths include civil engineering, PW Group construction and mining. ♦ Provides specialist offshore services to the oil, gas and telecommunications industries from the company’s marine base at Port Harcourt. Reynolds Nigeria ♦ One of the leading civil engineering and Construction The multi-national building contractors in West Africa. Company Nigeria parent company is ♦ Specialises in road construction, water Ltd headquartered in related construction projects, residential, Subsidiary of SBI Switzerland. as well as non-residential buildings. International Holdings ♦ The company also owns and operates AG (SBI) stone quarries and asphalt plants Safko Construction Nigeria ♦ Multi-national joint venture construction Company Nigeria International offices company. Ltd (SCCN) in Bulgaria and ♦ Focuses on the residential, commercial, Germany. industrial and the heavy civil construction segments. Setraco Nigeria Ltd Nigeria 11,000 ♦ Founded in 1977, Setraco Nigeria is Member of the The multinational regarded as one of the country’s leading multinational Setraco group operates in civil engineering and construction International Holding the Middle East and companies. Group West Africa. ♦ Specialises in the construction of roads and bridges. ♦ Services offered include design, engineering, construction management, procurement, materials management, logistics and site support. ♦ Technically partnered with a number of leading international design and consulting firms.

Geographic Number Of Estimated Company Nature Of Business Footprint Employees Turnover STEMCO Ltd Nigeria ♦ Provides various engineering and construction services, with a specific focus on civil works. ♦ Projects include road and bridge construction, bridge repair and piling (building and bridge foundations) Technova Nigeria ♦ Indigenous civil engineering and building Construction construction company. Nigeria Ltd ♦ Design and construction of roads, marine- related projects, residential and commercial buildings, as well as sports and recreational facilities. ♦ Considered to be one of the leading indigenous road construction companies in Nigeria.

3. STATE OF THE INDUSTRY

Inefficient bureaucracy and corruption continue to plague the construction industry.

3.1. Local

In 2013, the formal Nigerian construction industry delivered a robust performance, with year-on-year real growth estimated to be in the region of 13%. Growth has been driven by government infrastructure spend, as well as private sector investment in both residential and non-residential construction activities. A breakdown of the number and value of the country’s infrastructure projects as at July 2013 is shown below. Analysts expect the domestic housing market to grow because of the improved access to finance since the Nigeria Mortgage Refinance Company (NMRC), which is mandated to raise capital via the bond market, was formed.

Nigeria’s National Integrated Infrastructure Master Plan (NIIMP) came into effect in 2014. The plan, which, among other issues, addresses the lack of integration in the infrastructure sector, will be implemented over a period of thirty years from 2014. In February 2014, President Goodluck Jonathan announced that implementation of the NIIMP will cost US$2.9 trillion over the next 30 years, necessitating substantial investment from the private sector. In an attempt to enhance the country’s power supply, the Power Holding Company of Nigeria has been privatised. The bulk of the state-owned electricity generating utility was sold to private buyers in September 2013. The government has also prioritised the development of hydroelectric power schemes and in February 2014 it confirmed that construction on the 700MW Zungeru Hydroelectric Scheme had commenced. 75% of the US$1.3bn project will be financed by China’s Export-Import Bank, with Nigeria funding the balance.

A problem in the construction sector is the non-payment of companies employed to work on public sector projects. In May 2014 Babatunde Liadi, General Secretary of the National Union of Civil Engineering, Construction, Furniture and Wood Workers (NUCECFWW), announced that at least 40,000 union members had lost their jobs in the construction industry during the past year, largely due to problems relating to public sector projects. Commenting on the current state of the industry, Mr. Liadi stated, "The major challenge is the non-payment of our employers by government for jobs already done.” The Construction and Civil Engineering Senior Staff Association (CCESSA) warned that further lay-offs were imminent unless the government settled the debt of over 100bn Naira, approximately US$625m, owed to construction companies.

Although opportunities in the construction industry abound, many international companies are reluctant to work in the northern states, as these are perceived to be extremely high risk areas. In February 2013, seven Setraco employees were abducted by Ansaru militia in Bauchi State, prompting the company to withdraw from the region. There has also been a resurgence of acts of terror: on 14 April 2014, twin bomb blasts in Abuja killed at least 88 people; and on the same day, 276 girls were abducted from their school in Chibok in the North East by Boko Haram. On 2 May 2014, five days before the opening of the World Economic Forum on Africa hosted by Nigeria

in Abuja, a car bomb exploded in the nation’s capital, killing 12 people. The spate of bombings continued during the month of May, with further attacks in Kano, Jos and Borno claiming the lives of almost 200 people.

3.1.1. Corporate Actions

♦ In 2012, Watertown Energy Ltd acquired a 10% stake in Julius Berger Nigeria Plc, increasing the Nigerian shareholding of the construction giant to 60.1%. The shares that changed hands were formerly held by Bilfinger Berger. Watertown Energy Ltd is a subsidiary of the NESTOIL Group. ♦ In November 2013, First Bank of Nigeria Plc obtained a court order for the appointment of a receiver manager against Costain West Africa Plc, in respect of an unspecified trade debt. Costain liquidated the debt in January 2014 and First Bank has since lodged an application with the Corporate Affairs Commission (CAC) for the receivership to be discharged.

3.1.2. Regulations

In August 2013, the Federal Government presented the new National Building Code, which is an updated version of the National Building Code that was adopted by the National Council on Housing and Urban Development in 2006. The National Building Code addresses key issues such as urban planning, the collapse of buildings, built environment violations, the use of sub-standard building materials, the operation of non-professionals in the environment and the failure to maintain buildings after the construction process has been completed. The Code covers all building activities from the pre-design stage, through the design and construction phases to the post-construction stage. Lands, Housing and Urban Development Minister, Amma Pepple, reiterated the need for the enforcement of building regulations, stating that the scourge of building collapses in Nigeria was due to ineffectiveness in the enforcement of the laws.

In terms of the Land Use Act of 1978, ownership of the rights to the use of land is controlled by Nigeria’s state governments. In many states, the application of the Act is problematic. Bureaucratic regulatory inefficiencies commonly experienced by contractors include difficulty in obtaining the requisite building permits and occupancy certificates.

The Standards Organisation of Nigeria (SON) was established under Act No. 56 of 1971 and determines standards and specifications. It performs metrology services, as well as quality assurance testing on both locally manufactured and imported industrial products and services. In an effort to address the issue of building collapses which have been attributed to the use of 32.5 grade cement, SON recently published the revised standards for grades of cement for specific types of building and construction work. The new standard was set by the Technical Committee of SON, which was made up of all stakeholders in the building and construction industry, including all the cement manufacturers. The reviewed standard specifically restricts the use of the 32.5 cement grade to plastering of structures only. The 42.5 grade is approved for the construction of buildings, beams, load bearing columns, pillars, block moulding and other structures while the 52.5 grade is chosen for the construction of bigger projects like bridges, flyovers, and high rise buildings.

The Council of Registered Builders of Nigeria (CORBON) was established in terms of Act CAPS 613LFN of 2004 to regulate and control the practices of the building profession in Nigeria. According to certain stakeholders, non-compliance with institutional professional regulations is commonplace, because of inadequate enforcement by government regulatory agencies.

Draft local content legislation pertaining to the Nigerian construction industry is currently before the National Assembly. The Local Content in Building and Construction Industry Bill, like its precursor, the Nigerian Oil and Gas Industry Content Development Act, seeks to broaden local content regulations, with the objective of placing indigenous Nigerian companies on a level playing field with their foreign counterparts. Although some stakeholders have criticised the bill for not adequately reflecting the characteristics of the construction industry, The Construction and Civil Engineering Senior Staff Association (CCESSA) has given its support to the enactment of the proposed legislation, stating that the construction market continues to be dominated by foreign companies that commonly import materials, equipment and labour.

In terms of the Public Procurement Act of 2007, the Bureau of Public Procurement (BPP) is required to maintain a national database of the particulars, classification and categorisations of consultants, contractors and service providers operating in the construction industry. At the 2014 Annual Contractors/Consultants and Service Providers forum, organised by the BPP, Minister of Justice, Mohammed Bello Adoke, said that failure to register with the National Database contravened the Procurement Act, warning that the government would ban any non-compliant contractor, consultant or service provider. The Minister added that the owners of unregistered companies could face prosecution. According to the Director General of BPP, Emeka Ezeh, action will be taken against

companies that provide false information in order to bid for contracts that they do not have the capacity to execute. As at 31 December 2013, only 1,251 contractors and service providers had registered on the database.

Proposed oil and gas legislation, in the form of the Petroleum Industry Bill (PIB), is expected to be ratified by 2015. Analysts believe that the passing into law of the PIB will impact positively on the industry, as regulatory certainty generally encourages investment.

3.1.3. Opportunities for the Construction Industry

3.1.3.1. Transport

Nigeria’s railway network, which is mainly north/south oriented, is under-developed and many sections of line require rehabilitation. The Federal Government has indicated that 2,000 km of railway lines will be reconstructed at a cost of over US$2bn. Major rail projects include the following. • The Lagos Light Rail valued at US$1,1bn. The project has been awarded to China Civil Engineering Construction Corporation. • The rehabilitation of a 638km railway line connecting the cities of Jebba and Kano, including the construction of two new bridges. The project, valued at US$300m, was awarded to Costain (WA) Plc. • The Abuja-Kaduna Railway, a US$850m project that was awarded to China Civil Engineering Construction Corporation. • The Abuja Light Rail valued at US$102m. China Civil Engineering Construction Corporation has been named as the contractor.

The Nigerian road network is generally in a state of disrepair. Heavily congested urban roads and expressways, which are frequently gridlocked, are unable to support current volumes of traffic. Federal Government has indicated its willingness to partner with the private sector on projects involving the upgrade and/or maintenance of existing roads, as well as the construction of new highways, bridges, feeder roads and transport terminals. Flagship projects in this segment include the following. • The Lekki Toll Road Concession. Phase 1 of the project provides for the upgrading, expansion and maintenance of a 50km section of the Lekki-Epe Expressway in Lagos. Phase 2 envisages the construction of a coastal road along the Lekki Peninsula, measuring approximately 20km. The project is a Public Private Partnership (PPP) and in terms of the Build-Operate-Transfer (BOT) model, the assets will revert to the Lagos State Government after the concessional period of 30 years has elapsed. • In March 2014 President Goodluck Jonathan performed the groundbreaking ceremony of the Second River Niger Bridge project that will link the Ogbaru side of Anambra State to Delta State. The bridge will be constructed by the Julius Berger Plc- NSIA Motorways Investment Company (JB-NMIC) Consortium at a cost of US$698m. In terms of the PPP agreement, the Consortium has been awarded a 25 year concession based upon the Design, Build, Finance, Operate and Transfer (DBFOT) model.

Construction opportunities in the water-borne transport segment include the construction of ports, harbours and jetties, dredging, as well as the construction of both off-shore and on-shore oil and gas projects. In December 2013, Federal Government approved the construction of Port@Lekki, a new deep water port that will form an integral part of the Lagos Free Trade Zone. The US$1.4bn maritime project is expected to be completed by 2015.

Upgrading and maintenance is required at Nigeria’s airports on an ongoing basis. In December 2013, construction work on the expanded terminal at the Murtala Muhammad Airport in Lagos was completed and four new international airport terminals in Abuja, Lagos, Kano and Port Harcourt are scheduled to open for business in May 2015. The contractor, CCECC, secured direct financing for the US$500m project from Exim Bank in China.

3.1.3.2. Energy/Power

Although Nigeria is Africa’s top oil producer, the country still relies heavily on imported refined petroleum. Stakeholders believe that the construction of the country’s largest privately owned oil refinery by the Dangote Group will provide a much needed stimulus to the ailing Nigerian oil industry. The site of the 400,000 barrels-per-day refinery and petrochemicals complex is the Olokola Liquified Natural Gas Free Trade Zone in Ondo State.

Power supply challenges have negatively affected economic and social development in Nigeria and it is estimated that more than half of the Nigerian population does not have access to electricity. According to statistics released by the World Bank, the nation’s average per capita consumption is only about 150kWh per annum, compared with the United Kingdom’s average annual consumption of 5,500kWh per person. The Federal Government has acknowledged that the creation of additional capacity in the power sector is imperative if

Nigeria is to continue on a growth path. Stakeholders estimate that an annual investment of US$1.5bn over the next five years is necessary to stabilise the country’s transmission grid. As mentioned earlier, the state’s power utility has been privatised and construction of the 700MW Zungeru Hydroelectric Project has started.

3.1.3.3. Water Supply and Treatment

The contamination of water sources, resulting from the indiscriminate disposal of sewerage and untreated waste, poses a grave health hazard to communities. The provision of basic services in Nigeria’s informal settlements is an urgent priority. Opportunities in this sector include the construction of dams, canals and reservoirs for consumption and irrigation purposes. There is also a critical need for sewerage plants, urban water treatment plants and reticulation systems.

3.1.3.4. Healthcare

Public healthcare in Nigeria is provided by state-run general hospitals, university teaching hospitals and local primary healthcare clinics. Private healthcare providers are concentrated in wealthier areas and in Lagos state, Ikoyi has the highest density of private healthcare facilities. A number of facilities are under construction. • In October 2013 the governor of Imo announced that 27 hospitals, four of which will be specialist hospitals, were under construction. • Nigeria’s first health PPP has been implemented in Calabar in Cross River State. The new 105-bed referral hospital is expected to be operational by 2015. • In October 2013, Africa’s wealthiest man, cement tycoon and philanthropist, Aliko Dangote, announced that his Foundation would be constructing a 1,000 bed hospital in Kano. The new hospital will be known as the Mariya Sanusi Dantata Ultramodern Theatre Complex.

3.1.3.5. Education

10.6% of Nigeria’s 2014 Federal Budget has been earmarked for the education sector. While the increase in the allocation has been welcomed by stakeholders, it is believed that government spend will be insufficient to adequately address the considerable requirements of the sector, which include the construction and renovation of buildings.

3.1.3.6. Telecommunications

Nigeria has emerged as one of the most rapidly expanding telecommunications markets. According to statistics from the National Bureau of Statistics (NBS) released in April 2014, Nigeria’s telecoms sector is valued at $19bn and moved from 0.8% to 8.6% of GDP. The Nigerian Communication Commission (NCC) announced in October 2013 that there were 121.8 million total active telecom subscribers and mobile penetration has almost reached 70%. Analysts have emphasised the need for infrastructure in the sector if its growth is to continue.

3.1.3.7. Residential Building

According to the Federal Mortgage Bank of Nigeria (FMBN), the country currently has a housing deficit of 17 million units. Given the high level of poverty in Nigeria, there is a great demand for social housing and low-income residential developments. Accessing long term financing has been notoriously difficult for most Nigerians and has been a major barrier to home ownership. However, as mentioned earlier, the entry into the market of Nigeria Mortgage Refinance Company (NMRC) should make it easier for people to buy a home.

There is a high level of private sector investment in residential real estate development, with a particular focus on secure housing estates, catering for the upper end of the market. In Abuja, real estate is in great demand and a number of residential districts are currently being developed in line with the Abuja Master Plan. Other new residential developments include Greater Port Harcourt City, three upper-end housing estates which form part of Kano’s multimillion-dollar Mega Five Projects and the multi-billion dollar Eko Atlantic City project, which is currently being constructed on land reclaimed from the Atlantic Ocean. On completion, the man-made island near Lagos will house up to 400,000 people. Many prospective residents have expressed concern about the risks associated with building on reclaimed land, after a massive ocean surge swept over the site in August 2012, causing loss of life and wide-spread flooding.

3.1.3.8. Commercial

Commercial development in Nigeria is highly localised, with the majority of companies based in Lagos and/or Abuja. Office blocks and commercial precincts compete for space in these urban centres. Garki is the main business district of Abuja. In Lagos, prime commercial districts include the Lekki Peninsula, Ikoyi, Victoria Island and Ikeja GRA. Although Kano is Nigeria’s second largest city, companies are generally reluctant to do business in the north, citing security concerns, dangerous roads and military checkpoints. A critical shortage of skilled labour has also stifled commercial development in the northern states.

3.1.3.9. Retail

Many analysts have identified Nigeria as the world’s next luxury brand ‘hot spot’. Rising consumerism, driven by Nigeria’s burgeoning middle class, has given rise to a construction boom in the retail component. Demand for retail space is concentrated around the middle- class areas and is highest in Lagos and Abuja. As expected, significantly less development is taking place in Nigeria’s northern states where the population depends largely on informal traders. The first modern shopping centre in the north, Ado Bayero Mall in Kano City, only opened to the public in March 2014.

3.1.3.10. Hotels and Tourism

Business travel is driving demand for both mid-market and high-end hotel rooms in Nigeria. There has also been growing interest in developing premium leisure and luxury eco resorts. According to Trevor Ward, Director of the Lagos-based W Hospitality Group, in the second half of 2013, Nigeria had 43 new hotel projects under contract. Some are listed below. ♦ Starwood Hotels & Resorts, which has five existing properties located in Abuja, Akwa Ibom, Port Harcourt and Lagos, plans to expand its network and will be opening Four Points by Sheraton in Benin City and in Lagos, as well as the Le Méridien Ikoyi Towers in Lagos, by 2015. ♦ The Carlson Redizor Hotel Group has expanded its brand network and currently has 8 hotels in operation in Nigeria. Its flagship luxury hotel is the Radisson Blu Anchorage Hotel in Lagos. New Park Inn by Radisson hotels have opened in Lagos, Abeokuta and Abuja. ♦ By 2015, Protea Hospitality Group plans to increase its Nigerian footprint from its current 11 properties to 16, with the introduction of the premium African Pride luxury hospitality brand. African Pride Avalon Hotel & Spa in Ikeja, Lagos, is in the final stages of construction and is due to open in mid-2014. ♦ In April 2014, the New York-listed Marriot hotel group announced its intention to open new hotels in Nigeria.

3.1.3.11. Mining and Industrial

In recent years, the Nigerian economy has become increasingly diversified and the need for industrial development has been actively promoted by the Federal Government. The manufacturing industry focuses on the production of vehicles, cement, plastics, processed food, electronics, leather and textiles, with the majority of the country’s factories in Ogun State, which is regarded as Nigeria's industrial hub. In 2013, the Federal Government introduced an automotive industry development policy designed to stimulate local manufacturing and discourage automotive imports. The initiative has been well received and expressions of interest to set up operations in Nigeria have been received from numerous major international vehicle and tyre manufacturers including Toyota, Volkswagen, Renault, Honda, Kia and Tata. Nissan recently set up operations in Volkswagen’s former assembly plant in Lagos while Peugeot Automobile Nigeria (PAN) in collaboration with its French technical partner, Automobile Peugeot France, will be resuming operations. The manufacturer’s Kaduna assembly plant is scheduled to reopen in June 2014. Michelin Tyres and DN Tyres Plc have also indicated that they may resume manufacturing activities in Nigeria. In Nnewi, indigenous manufacturer, Innoson Vehicle Manufacturing (IVM), which specialises in the manufacture of rapid transport buses, trucks and Sport Utility Vehicles (SUVs), is planning to expand its manufacturing facility.

In 2013, the Dangote Group confirmed that it would be constructing a petrochemical plant, along with an oil refinery in the Olokola Liquefied Natural Gas Free Trade Zone in Ondo State. The petrochemical plant will produce polypropylene, which is used in the manufacture of various types of plastics and fabrics. At the end of May 2014 Dangote Cement, West Africa’s leading cement producer and one of Africa’s top performing companies, announced it would increase production from its current 19 million tonnes to 29 million tonnes by August 2014.

The country’s mineral resources include large deposits of coal, gold, tin, bauxite, tantalite, iron ore, limestone, niobium, zinc and lead but the domestic mining industry is under-developed. Should there be more development in this sector, then there will be increased opportunities for the construction and building sector.

3.2. Continental

Over the past decade, Africa, with an average annual growth rate of more than 5%, has become an increasingly attractive investment destination. Growth drivers include the continent’s substantial mineral wealth, significant oil and gas discoveries, the rapid rate of urbanisation, the growing African middle class, as well as the mobile revolution. Given that 60% of the world’s unexploited arable land is in Africa, the continent is also viewed as a future agri-hub of great importance. However, a critical lack of infrastructure and basic services continues to hamper the continent’s integration into the global economy. Statistics indicate that less than 40% of Africa’s population of one billion people has access to electricity and it is estimated that only about a third of the continent’s rural population has access to roads.

Opportunities for construction companies operating in Africa are plentiful, particularly in the energy, transport, heavy industrial, mining, water and real estate sectors. The extensive development and upgrading of infrastructure taking place across the continent has resulted in an unprecedented boom in the African construction sector. According to the Deloitte on Africa - African Construction Trends Report 2013, as at 1 June 2013 there were 322 major African infrastructure projects, each valued at more than US$50m, with a total value of over US$222bn. An assessment of these projects shows that: ♦ 7% of the infrastructure projects that had broken ground were in North Africa; ♦ 38% of the projects were located in Southern Africa; ♦ 29% were in East Africa; ♦ 21% were in West Africa; and ♦ 5% were in Central Africa.

Other pertinent findings reveal the following. ♦ 56% of African infrastructure projects are state-owned, 39% of the projects are owned by private investors and 4% of projects are public-private partnerships (PPPs). Intra-African investment remains very low. ♦ Development Finance Institutions (DFIs) provide funding for approximately 36% of African infrastructure projects. Only 8% of projects are state-funded. ♦ Project construction in Africa is dominated by European and American construction companies, which account for 37% of all construction work. China continues to expand its African footprint and Chinese construction companies have secured approximately 12% of the continent’s major construction projects. Foreign contractors from Brazil, Portugal, Japan, South Korea and Australia have also established a foothold in the African construction market. ♦ Although intra-African construction activity remains relatively low, South African companies are increasingly seeking opportunities in other African countries.

3.3. International

In 2013, China continued to dominate the global construction landscape, with five major Chinese players featuring among the world’s Top 10 construction companies. Chinese companies, which receive state subsidies and are supported by China’s state banking system, have proved to be formidable competitors. With annual revenue of US$84.6bn, China Railway Construction Corporation (CRCC) has been identified as the world’s biggest construction company by revenue. Global leaders in the construction industry are shown in the table below.

World’s Largest Construction Companies by Revenue Rank Company Country Revenue 2013 1 China Railway Construction Corporation (CRCC) China US$84.6bn 2 China Railway Group (CRG) China US$81.8bn 3 China State Construction Engineering Corporation (CSCEC) China US$81.4bn 4 Grupo ACS Spain US$50.65bn 5 Vinci France US$50.33bn 6 China Communications Construction (CCC) China US$47.3bn

Rank Company Country Revenue 2013 7 Hochtief Germany US$36.4bn 8 Bouygues France US$33.9bn 9 China Metallurgical Group Corporation (CMGC) China US$31.5bn 10 Bechtel USA US$29.4bn

[Source: ConstructionWeekOnline.com January 27, 2014]

Global Construction Outlook ♦ As the host nation of the 2022 Football World Cup, Qatar has been identified by engineering and construction contractors as one of the world’s most important construction markets. ♦ Global Construction 2025, published by Global Construction Perspectives and Oxford economics, predicts that by 2025, global construction output will increase by over 70% to US$15 trillion. Other significant findings include the following.

o Emerging markets currently account for 52% of the world’s construction activity. Analysts believe that this will rise to 63% by 2025.

o Global growth in the construction industry will be driven by China, the United States and India. o With global market share of 18%, China is the world’s largest construction market. Analysts predict that China will further strengthen its dominance, increasing its market share to 26% by 2025.

o Vietnam, Indonesia and the Philippines have emerged as lucrative construction markets, with construction growth averaging over 6% per annum.

o Analysts predict that the Western European construction market will continue to contract and that by 2025, the market will be nearly 5% smaller than it was in 2007.

4. INFLUENCING FACTORS

4.1. Economic Environment

4.1.1. General

Nigeria is currently classified by the World Bank as a mixed economy emerging market that has reached lower middle income status and is ranked as the 26th largest economy in the world. In line with its Vision 2020 strategy, Nigeria is aiming to become one of the world’s top twenty economies by the year 2020. As a member of the MINT (Mexico-Indonesia-Nigeria-Turkey) group, Nigeria features on the ‘Next Eleven’ list, which identifies the countries that are poised to join the ranks of the world’s biggest economies. Nigeria has, since April 2014, been recognised as Africa’s largest economy after having rebased its GDP data for the first time in two decades. The statistical revision takes into account important contributors to Nigerian GDP, including telecommunications, the country’s burgeoning film industry and banking. Nigeria’s Statistician-General, Yemi Kale, announced that the country’s rebased GDP for 2013 was estimated at 80.3 trillion Naira (approximately US$510bn), compared to US$262.6bn in 2012, representing an increase of 89% in the estimated size of the economy. After rebasing its economy, Nigeria’s debt-to-GDP ratio declined from 19% in 2012, to 11% in 2013.

Nigeria has a well developed financial services sector, comprising both local and international banks, investment banks and private equity funds, asset management companies, brokerage houses and insurance companies. The country’s stock exchange, the Nigerian Stock Exchange (NSE), is the second largest in Africa. Nigeria is a major player in the global oil industry and has been a member of the Organisation of the Petroleum Exporting Countries (OPEC) since July 1971. Although the Nigerian economy still depends heavily on its agriculture and oil sectors, it is becoming increasingly diversified with expansion taking place in the communications, technology and entertainment sectors.

In 2013, macroeconomic indicators were generally positive, with the Nigerian economy growing by 6.5%. Inflation, as measured by the Consumer Price Index (CPI), declined to 8.5%, attaining the single digit target of the Central Bank of Nigeria (CBN). This is largely due to the CBN’s tight monetary policy and the relative stability of the US Dollar/Naira exchange rate, which has been pegged at around N160 to US$1. On the downside, World Bank statistics indicate that joblessness in Nigeria increased to 24%, with youth unemployment in the 15 -24 years category increasing to 38% in 2013. Job creation is one of the most critical challenges facing Nigeria.

4.1.2. Effects on the Construction Sector

Current and projected economic growth rate forecasts bode well for the Nigerian construction industry. Growing investor confidence has seen an influx of international players into the sector, with Chinese construction companies and financial institutions steadily increasing their sphere of influence. Analysts believe that the high demand for infrastructure will necessitate the formation of PPPs and thus the number of international construction companies is likely to rise. The nation’s growing middle class will continue to drive the construction boom in both the residential and non-residential segments and economists believe that the construction sector will be further strengthened by the recent introduction of progressive banking initiatives allowing companies and prospective home owners to access long term financing more easily.

4.2. Socio-Political Environment

With a population estimated to be in the region of 174 million inhabitants, Nigeria is the seventh most populous nation in the world. Nigeria’s socio-political environment has been shaped by insurrection, civil war, secessionist movements, military rule and counter- coups. Although Nigeria regained democracy in 1999, when former military head of state Olusegun Obasanjo was elected to office, the elections were shrouded in controversy. The 2011 presidential elections, which saw the inauguration of Dr. Goodluck Jonathan, were the first Nigerian elections to be deemed reasonably ‘free and fair’.

The country is home to more than 500 ethnic groups and has a long history of ethnic and sectarian violence. Christian Nigerians are mainly concentrated in the southern and central states, while followers of Islam live mostly in the northern and south-western states. During the past decade, there has been a resurgence of religious conflict, with Boko Haram calling for Sharia law to replace the current secular system of government. The April 2014 abduction of 276 school girls by members of the movement has caused global outrage, prompting various nations to offer their assistance to the Nigerian Federal Government in an effort to rescue the kidnapped girls.

The United Nations-sponsored ‘National Millennium Goals for Nigeria’ is a socio-economic development plan covering the period from 2000 until 2015. Targets pertaining to poverty reduction, education, gender equality, health, the environment and international development cooperation have been described as ‘ambitious’ and, while some progress has been made in certain areas, living conditions in Nigeria are still extremely difficult. Nearly half of Nigeria’s inhabitants do not have access to basic services such as sanitation, clean water and electricity, the public healthcare system is inadequate and the public education system is dysfunctional. Issues such as gender inequality, poverty, poor healthcare and illiteracy are particularly pronounced in the north.

4.3. Infrastructure Deficit

4.3.1. Government Infrastructure Programme Spend

The infrastructure deficit in Nigeria and in the West African region as a whole constrains economic development and social upliftment. Substantial capital expenditure is required for infrastructure development, particularly in the power and transport sectors, as electricity and transport networks are vital for economic growth and development. Nigeria currently spends in the region of US$5.9bn per year on infrastructure. Analysts believe that while capital expenditure on construction is comparatively high relative to other sectors, the capital expenditure cuts announced in the 2014 Federal Budget will oblige the Federal Government to enter into alternative funding arrangements, such as PPPs. In West Africa, approximately 40% of project funding is provided by Development Finance Institutions (DFIs).

As mentioned, the National Integrated Infrastructure Master Plan (NIIMP) will be implemented over a period of thirty years, at an estimated cost of US$2.9 trillion. However, during 2013, numerous public sector construction projects were abandoned due to lack of funds, prompting some stakeholders to dismiss the NIIMP as mere Federal Government rhetoric. The failure of certain public entities to settle outstanding debts has impacted negatively on several companies in the sector and, as a direct result, approximately 40,000 construction workers had to be retrenched during the past year.

4.3.2. Foreign Direct Investment (FDI)

Nigeria has emerged as the second most attractive Foreign Direct Investment (FDI) destination in Africa. Since 2007, 11% of capital invested in Africa has been allocated to the West African powerhouse. Between 2007 and 2013, FDI activity has been comparatively robust, with compound growth in the number and value of new FDI projects increasing by 19.4% and 10.4% respectively over the period. In 2013, 58 new FDI projects were reported, with the energy sector continuing to attract the most capital investment. However,

the FDI landscape is becoming increasingly diversified and there have been significant increases in the telecommunications, retail, construction, hospitality, real estate, financial and entertainment sectors.

FDI Trends in Nigeria

[Source: Diagram sourced from fDi Markets and EY analysis]

4.3.3. Private Sector Investment

The function of the Nigerian capital market is to mobilise medium to long-term funds from the private sector, which may then be used to finance development projects. As at 31 December 2013, there were approximately 200 companies listed on the Nigerian Stock Exchange (NSE), with a total market capitalisation of approximately N12.88 trillion, about US$80bn. The Federal Government has endeavoured to create a more investor-friendly climate and, as such, various trading regulations have been relaxed. Nigerian companies are permitted to list on other international stock exchanges and foreign brokers may list as dealers on the NSE. The Dangote Group is Nigeria’s leading indigenous private investor and one of Africa’s top ranking companies. The cement giant is expanding its presence in Africa and a number of cement plants are under construction across the continent.

4.3.4. Public Private Partnerships

The public sector has become increasingly more receptive to the idea of collaborating with the private sector on infrastructure development and/or maintenance projects. Collaborative partnerships of this nature are regarded as a viable solution to the monumental funding challenge facing the government. Recent PPP arrangements include the concession of expressways, airports and bridges.

4.4. Urbanisation

Nigeria’s population has soared from 33 million people in 1950 to its current total of almost 175 million inhabitants. It is ranked as the seventh most populous country in the world and in 2013 the population growth rate was 2.56%. According to the World Bank, the country’s urban population has risen rapidly and accounts for approximately 51.2% of the total population. Lagos is now Africa’s largest city with an estimated 21 million people, two-thirds of whom live in slums. By 2015, authorities estimate that the city will be home to about 25 million residents. The pressure on existing urban infrastructure means there are significant opportunities for the construction industry.

4.5. Local Content

The Local Content in Building and Construction Industry Bill is currently before the Nigerian National Assembly. The draft legislation, which has been modelled on the Nigerian Oil and Gas Industry Content Development Act, seeks to promote the hiring of local labour, as well as the use of locally made building materials, such as cement. The Bill also aims to level the playing field in order that indigenous players across the construction value chain will be able to compete on a more equal footing with their international counterparts. Proponents of the new legislation argue that the formal construction sector is dominated by international companies and that foreign

players often hire expatriate staff and/or import building requisites from countries beyond Nigeria’s borders. If ratified in its current form, the proposed Local Content legislation may impact adversely on the sector’s foreign players.

4.6. Corruption

Nigeria is ranked 147th out of 177 countries in Transparency International's 2013 Corruption Perceptions Index, dropping from 139th out of 176 countries in the 2012 Index. According to respondents, tender fraud, cronyism, bribes and ‘under-the-table’ payments form part of Nigeria’s pervasive culture of corruption. Some companies even regard the payment of bribes as a necessary operating cost and factor ‘miscellaneous’ service fees into their budgets. Many stakeholders have urged the Anti-Corruption Network (ACN) to lobby for greater transparency with regard to tender allocations.

4.7. Industry Supply Chain

4.7.1. Capacity, Quality and Security of Supply

The construction industry is supported by an extensive supply chain. Many of the sector’s major players have developed a high level of vertical integration. They generally have their own in-house professionals, such as architects and quantity surveyors, as well as their own fleets of construction vehicles. Prodeco Engineering, for example, has diversified into the supply chain and currently operates an equipment leasing division, as well as a division that produces and sells pre-cast concrete products. Road construction specialist, Reynolds Construction, has been able to avert supply constraints by owning and operating stone quarries and asphalt plants.

Cement blocks, made in block moulds, are generally used in the construction of low-cost housing, as they are much cheaper than bricks. Cement manufacturing has been a growth industry in Nigeria and the country is now self-sufficient and an exporter of cement. Dangote Cement, Nigeria’s major cement manufacturer, currently produces 19 million tonnes of capacity of 42.5 grade cement per annum, but as mentioned, intends increasing output to 29 million tonnes by August 2014. Certain building materials, such as steel, are commonly difficult to procure and supply is often substantially less than the demand. The global trade in counterfeit building materials, including sun-standard reinforced steel, poses a major risk to the construction industry.

4.8. Industry Specific Issues

4.8.1. General Trends

The population is becoming increasingly urbanised and informal settlements have mushroomed in metropolitan areas. The high influx of people to the cities has resulted in urban sprawl and environmental degradation. As a result, the low-cost housing backlog continues to rise. At the same time, Nigeria’s growing middle class continues to drive demand for housing, power, business and leisure hotels, shopping centres, warehousing, business premises and improved transport networks.

4.8.2. Input Costs

Key inputs include: building materials; imported raw materials, such as polystyrene, which is used in the manufacture of SIPs; electricity, water and other utilities; fuel, earthmoving and transportation costs; and labour costs. The unreliable power supply in Nigeria has driven up manufacturing costs, making locally produced building materials uncompetitive. With the notable exception of cement, “Made in Nigeria” products cannot compete with cheaper imports, particularly those manufactured in Asia.

4.8.3. Cyclicality

Activity in the construction sector is synonymous with fluctuating ‘feast or famine’ cycles. The direction of the cyclicality is relatively predictable and may be determined by factors such as interest rate hikes and consumer indebtedness. Declining demand acts as a catalyst for a cyclical downturn in the building and construction industry. Owing to the cyclical nature of the sector, the labour force comprises a high proportion of casual workers who are often left jobless when projects are in short supply. Mid-December through to mid-January is traditionally a dormant month in the construction calendar, due to the annual builders’ holidays.

4.8.4. Health and Safety

The construction industry is rated as one of the most dangerous occupations. Falls account for most occupational injuries, both fatal and non-fatal and electrocution is a major occupational hazard. In the informal sector, safety procedures, such as the use of scaffolding, safety harnesses and netting, are often disregarded, in order to cut costs. Occupational safety violations include working without the requisite protective clothing or accessories, such as dust or gas masks, hard hats, as well as ear and/or eye protection.

As mentioned, there has been a spate of building collapses in Nigeria. Despite the relative frequency of these disasters, the National Building Code is not enforced and no action is taken against builders who violate building standards. In Lagos and Abuja, where the cost of land is very high, builders commonly build upwards, even though the structures do not have the foundations required to support multiple levels. According to certain stakeholders, many building approval officials have been accused of approving plans that should never have been passed. Another cause of building collapse is thought to be the use of 32.5 cement and cement blocks.

4.9. Competition

State-subsidised Chinese companies have proved to be formidable competitors as they are able to undercut other companies and have been awarded many major lucrative public projects. Indigenous construction companies have called for the playing field to be levelled, claiming that the dominance of foreign companies has rendered them uncompetitive. Stakeholders mentioned that there are many medium-sized and small contractors that compete for projects in the southern and central regions of Nigeria, but in the north the market is much less competitive.

4.9.1. Barriers to Entry

Barriers to entry into the construction industry range from low to very high. It is relatively easy for smaller contractors to enter the market. However, it becomes progressively more difficult to gain access to more lucrative projects. The main barriers to entry include the following. ♦ Fear of secular violence and insurrection. ♦ Regulatory uncertainty surrounding the proposed local content legislation. ♦ High initial capital outlay, although this is not necessarily the case for small contractors. ♦ Relatively low profit margins. ♦ Language is a barrier to entry in certain states where English is not spoken. ♦ Climate of political uncertainty. ♦ Bureaucratic inefficiencies and corruption. ♦ Shortage of skilled labour.

4.9.2. Public Procurement and the Tendering Process

Bidding for Tenders is conducted through the National Competitive Bidding (NCB) procedure which is specified in the 2007 Public Procurement Act. Companies that wish to participate in the Federal Procurement process have to be licensed and are required to register online on the Bureau of Public Procurement’s (BPP’s) e-platform. Information about all new tenders, including invitation to contract, business opportunities and government contracts, is uploaded daily on the Tenders in Nigeria website://tenders.nigeriang.com.

4.10. Labour Resources

The National Joint Industrial Council (NJIC) is charged with the responsibility of mediating collective agreements that address the issues that affect workers and employers. The Construction and Civil Engineering Senior Staff Association (CCESSA) and the National Union of Civil Engineering, Construction, Furniture and Wood Workers (NUCECFWW) represent workers, while the Federation of Construction Industry (FOCI) represents employers. The NJIC sets the minimum standard for both employees and employers.

4.10.1. Licensing

There are various professional bodies that uphold the professional standards of their respective fields of expertise. They are mandated to register individuals and companies authorised to practise in Nigeria. These Institutes include the following. ♦ Nigerian Institute of Building (NIB) ♦ Council for Registration of Builders of Nigeria (CORBON)

♦ Council for the Regulation of Engineering in Nigeria (COREN) ♦ Nigerian Institute of Architects (NIA) ♦ Nigerian Institute of Quantity Surveyors (NIQS) ♦ Quantity Surveyors Registration Board of Nigeria (QSRBN) ♦ Town Planners Registration Council of Nigeria (TOPREC)

4.10.2. Skills Shortages

The construction sector is a highly labour intensive industry, which provides work for unskilled and semi-skilled workers, skilled artisans and tradesmen, on-site managers, as well as highly skilled professionals with technical and project management skills. Skilled occupations in high demand include plumbing, electrical contracting and carpentry. Skilled professionals in demand include architects, quantity surveyors, civil engineers, town planners, project managers, structural engineers, building services engineers and civil estimators. Analysts have commented on the critical shortage of skilled labour in the northern states. In Borno, for example, the literacy rate is only 15%.

There are currently at least 11 Nigerian universities offering the B.Sc Building programme degree and about 20 Polytechnics offering National (ND) and Higher National Diploma (HND) Building programmes in Nigeria. See Appendix 1 for a list of institutions that offer courses in Building qualifications.

World Bank statistics indicate that joblessness in Nigeria increased to 24%, with youth unemployment in the 15 -24 years category increasing to 38% in 2013. Job creation is one of the most critical challenges facing Nigeria.

4.10.3. Opportunities for Foreign Professionals

The proposed Local Content Bill continues to hover over the construction sector. If enacted into law, it is expected to impact adversely on foreign professionals operating in Nigeria. Given the Federal Government’s growing appetite for PPPs, analysts believe that there will continue to be opportunities for foreign construction companies in Nigeria and that there will continue to be a demand for highly skilled professionals with scarce skills.

4.11. Technology, Research & Development (R&D) and Innovation

4.11.1. Technology

New technology has been implemented in the Nigerian construction sector. ♦ Leading Nigerian construction company, Julius Berger, has become the first company in Nigeria to use pylon and cable-stayed construction technology. The construction of the Lekki-Ikoyi (Admiralty-Alexander) Link Bridge in Lagos showcases this technological achievement. ♦ Two large-scale drainage projects have recently been constructed in Uyo, the capital of Akwa Ibom state, using closed pipe- jacking technology. The drainage systems have the capacity to save large areas of the city from flooding. This efficient and eco-friendly construction method, was pioneered by Julius Berger in Nigeria. ♦ Advances in 3D printing technology are set to revolutionise the building construction industry. Using a large 3D printer and 3D-printing building technology, it is now possible to construct a small commercial building or a house with built-in plumbing and electrical facilities in just a week. The current technology is able to print 2 metres of building material per hour, while the next-generation printers will be able to produce of 3.5 metres per hour.

4.11.2. Research

The Nigerian Building and Road Research Institute (NBRRI), which falls under the jurisdiction of the Federal Ministry of Science and Technology of Nigeria, is a public institute tasked with researching and developing road and building materials for the Nigerian building industry. The testing laboratory functions as a research and education centre for tertiary institutions and the construction industry so that building materials can be tested before entering the marketplace. In 2011, researchers at the Institute developed a new technology for the moulding of bricks, known as cement stabilised bricks technology, which reduces the cost of building by using a cheaper building material.

4.11.3. Innovation

Rising sea levels and wide-spread flooding inspired Nigerian-born architect, Kunlé Adeyemi, to develop the Makoko Floating School in Lagos. The floating construction is solar powered and has been built from locally sourced wood. Adeyemi explained that the design is adaptable. “The water level changes frequently in the area, so they need a design that adapts to the changing conditions.” Mr Adeyemi hopes his design will pioneer sustainable development in coastal African cities and that his floating homes will ultimately replace all of the Makoko shanties. The Floating School, which can accommodate 100 children, has been completed and floating houses will be ready to set sail in September 2014.

4.12. Environmental Concerns

Environmental concerns concerning climate change have increased, especially in the wake of recent natural disasters and extreme weather events. The resilience of buildings has come under scrutiny and stakeholders have urged developers and contractors to enhance their risk management strategies and to make better provision for possible flooding, coastal surges, mud-slides, tornados, cyclones, wildfires and earthquakes during the planning phase of proposed construction projects.

Another area of concern is the soaring rate of urbanisation, compounded by haphazard urban development and poor industrial planning policies, which has resulted in high levels of environmental degradation and urban waste pollution, particularly in the mega cities of the developing world. In many countries it is not uncommon for untreated domestic and industrial waste to be dumped indiscriminately in areas where it can pollute waterways and groundwater, as is the case in Nigeria’s Kubwa Community in the Federal Capital Territory of Abuja. There waste and sewerage are dumped into the canals, leading to the contamination of water sources.

As concerns mount, a growing number of construction companies are adopting sustainable or ‘green’ building practices in an effort to reduce the impact of their operations on both the natural environment and human health.

Green Building Practices Green building promotes the following practices: ♦ The creation of safe and healthy living and/or working environments; ♦ Energy efficiency, including the use of solar and wind power; ♦ Resource efficiency and the use of natural and/or eco-friendly building materials; ♦ Responsible site management and construction techniques, in order to minimise environmental degradation; ♦ Water conservation; ♦ Responsible waste management; and ♦ Greening of the environment through the creation of rooftop gardens, ‘living’ walls and so on.

Although building a green structure is more expensive than constructing a conventional building, maintenance costs are significantly lower. The straw bale, which is low carbon and low impact, as well as a good insulator, has emerged as a viable alternative construction material. Eco-friendly Cob-houses, which are built from mud and straw, rather than bricks and mortar, are becoming increasingly popular worldwide.

Green Building Codes and Ratings Systems Green building regulations, codes and rating systems have been developed by both international and national standards organisations. These include the International Code Council’s 2012 International Green Construction Code (IgCC), the International Energy Conservation Code and ICC-700, the National Green Building Standard. The IgCC is a regulatory framework which provides for the implementation of sustainability measures from design through construction to occupancy. Green building rating systems include LEED in the United States and Canada, BREEAM in the United Kingdom, GBAS in China, HQE in France, CASBEE in Japan and DGNB in Germany.

5. SWOT ANALYSIS

Strengths Weaknesses ♦ Nigeria is Africa’s largest economy. It is a strategic trade ♦ In the informal construction sector building standards are hub in West Africa and is endowed with an abundance of violated, sub-standard materials are used and building natural resources, including substantial reserves of oil and collapses are a regular occurrence. natural gas. ♦ Lack of enforcement of regulations. ♦ The construction industry serves all sectors of the ♦ Corruption, tender fraud and bribery. Nigerian economy. ♦ Skills shortage, particularly civil engineers. ♦ The sector is a key driver of socio-economic development, ♦ The industry is dominated by foreign companies, at the providing shelter, employment and infrastructural expense of indigenous companies. development. ♦ Reliant to a large extent on projects in the public sector ♦ Nigeria is Africa’s 2nd largest FDI market. and is thus negatively influenced by inefficiencies at ♦ Positive reforms have been implemented to improve Federal and State level. access to home loans and long term finance. Opportunities Threats ♦ Nigeria’s burgeoning population of around 175 million ♦ Sectarian violence has created a climate of political people is becoming rapidly urbanised. uncertainty that could destabilise the country ahead of the ♦ The growing middle class will continue to drive the 2015 Elections. Security concerns have caused companies construction boom in the residential and non-residential to withdraw from the northern states. segments. ♦ Increasing funding shortfalls, non-payment or tardy ♦ Nigeria’s 30-year National Integrated Infrastructure settlement by government departments which will lead to Master Plan (NIIMP), which came into effect in 2014. further job losses and could force companies to close ♦ Public Private Partnerships because of the high demand down. for infrastructure. ♦ Failure to implement proposed public sector infrastructure ♦ Green Building techniques and technologies, including development projects could cripple the civil construction renewable energy projects. sector. ♦ Technological innovations such as 3D-printing building ♦ Downward pressure on the oil price, which would impact technologies. negatively on Nigeria’s economy and ripple through to the construction sector.

6. FUTURE OUTLOOK

6.1. Construction Industry Forecast

The construction industry is building the new Nigeria and paving the Vision 2020 path. Stakeholders in the sector suggest that the major construction companies will be building bridges, rehabilitating runways, roads and railways, dredging ports and designing power stations. The sector’s medium-sized companies are expected to focus on lucrative contracts to build new shopping malls, hotels and resorts to cater for the influx of business travellers, while smaller contractors are likely to be building houses for first time homeowners who are now able to obtain mortgage bonds. However, Construction activity north of Abuja is expected to remain subdued. Analysts fear that the infrastructural divide between Nigeria’s two halves will widen even further.

6.2. Macroeconomic Outlook

Although Nigeria’s economy has remained robust in recent years, declining oil exports saw Nigeria’s foreign-exchange reserves contract by 13% in May 2014, with the Central Bank having to sell dollars to prop up the local currency. Analysts fear that it may become increasingly difficult to maintain the stability of the Naira ahead of the election on 14 February 2015. Although projected GDP growth for 2014 has increased marginally to a respectable 6.75%, analysts do not believe that the country will be able to deliver the jobs necessary to reverse the rising rate of joblessness.

6.3. Political Outlook

The abduction of 276 schoolgirls by Boko Haram, compounded by a spate of deadly bombings and attacks, are grim reminders of the challenges faced by the population of Nigeria. The escalation in sectarian violence has created a climate of political uncertainty and uneasiness. Analysts warn that the political situation is precarious and that opponents of President Goodluck Jonathan could further destabilise the country ahead of the 2015 Elections.

7. INDUSTRY ASSOCIATIONS

Construction and Civil Engineering Senior Staff Nigerian Institute of Architects (NIA) Association (CCESSA) Website: www.nigerianinstituteofarchitects.org Website: www.ccessa.org Nigerian Institute of Building (NIOB) Council for Registration of Builders of Nigeria (CORBON) Website: www.niobng.org Website: www.corbon.gov.ng Nigerian Institute of Quantity Surveyors (NIQS) Council for the Regulation of Engineering in Nigeria Website: www.niqs.org.ng (COREN) Website: www.coren.gov.ng Quantity Surveyors Registration Board of Nigeria (QSRBN) FOCI (Federation of Construction Industry) Website: www.qsrbn.gov.ng Website: www.foci-nigeria.com Standards Organisation of Nigeria (SON) National Union of Civil Engineering, Construction, Website: www.son.gov.ng Furniture and Wood Workers (NUCECFWW) Website: www.nucecfww.com Town Planners Registration Council of Nigeria (TOPREC) Website: www.toprecng.org Nigerian Building and Road Research Institute (NBRRI) Website: www.nbrri.gov.ng

8. REFERENCES

8.1. Publications

♦ Africa by Numbers - A focus on Nigeria. Special report issued for: World Economic Forum on Africa 2014. EY. ♦ African Economic Outlook 2012. Organisation for Economic Co-operation and Development. ♦ Ajayi, O. and Thwala, W.D. (2012) Dynamics Of Health And Safety In Nigeria’s Construction Industry: Construction Worker’s Dilemma.: Nani G., Nkum R.K., Awere E., Kissi, E and Bamfo-Agyei, E. (Eds) Procs 1st Applied Research Conference in Africa. (ARCA) Conference, 29-31 August 2012, Elmina, Ghana. 430-441. ♦ Corporate Nigeria. The Business, Trade and Investment Guide 2010/2011. Corporate Guides International Ltd. ♦ Deloitte on Africa - African Construction Trends Report 2013. Deloitte & Touche. ♦ Doing Business 2014. Economy Profile. Nigeria, Federal Rep. 2013. The World Bank and the International Finance Corporation. ♦ Federal Republic of Nigeria - Country Strategy Paper 2013-2017. January 2013. African Development Bank Group. ♦ Foster, V. and Pushak, N. Nigeria’s Infrastructure - A Continental Perspective. Policy Research Working Paper 5686. June 2011. The World Bank Africa Region Sustainable Development Department. Africa Infrastructure Country Diagnostic (AICD). ♦ Global Construction 2025. July 2013. Global Construction Perspectives and Oxford Economics. ♦ Global Construction Survey 2013. KPMG International. ♦ Isa,R.B., Jimoh,R.A. and Achuenu,E. (2013) An overview of the contribution of construction sector to sustainable development in Nigeria. Net Journal of Business Management Vol. 1(1), pp. 1-6, November 2013 Review. ♦ Julius Berger Annual Reports 2013. Julius Berger Nigeria Plc.

♦ Odediran,S.J., Adeyinka,B.F., Opatunji,O.A. and Morakinyo,K.O. Business Structure of Indigenous Firms in the Nigerian Construction Industry (2012) International Journal of Business Research & Management (IJBRM), Volume (3): Issue (5) 255. ♦ Private sector investment decisions in building and construction: increasing, managing and transferring risks. A Background Paper produced by Development Planning Unit (DPU), University College London, for the United Nations National Strategy on Disaster Risk Reduction (UNISDR). 2013. Global Assessment Report for Disaster Risk Reduction (GAR13). ♦ Trade Invest Nigeria (2012) The Four Factors Driving Growth in Construction and Property. ♦ Urban world: Cities and the rise of the consuming class. June 2012. McKinsey Global Institute.

8.2. Websites

♦ http://constructionreviewonline.com ♦ www.gcappaplc.com ♦ http://godstareng.com ♦ www.globalconstruction2025.com ♦ http://markets.ft.com ♦ www.hfpng.com ♦ www.afdb.org ♦ www.hitechconstructioncompany.com ♦ www.africa-asia-confidential.com ♦ www.iccsafe.org ♦ www.africaneconomicoutlook.org ♦ www.itbconstruction.com ♦ www.allafrica.com ♦ www.julius-berger.com ♦ www.arabcont.com ♦ www.kpmg.com ♦ www.aurecongroup.com ♦ www.lee-engineering.net ♦ www.breeam.org ♦ www.lexisnexis.com ♦ www.brunelliconstruction.com ♦ www.mckinsey.com ♦ www.buildstruct.com ♦ www.nationalplanning.gov.ng ♦ www.candcconstructionnigeria.com ♦ www.nddc.gov.ng ♦ www.capdal.com ♦ www.ngrguardiannews.com ♦ www.ccecc.com.cn ♦ www.nigerianstat.gov.ng ♦ www.ccessa.org ♦ www.niobng.org ♦ www.chagourygroup.com ♦ www.niqs.org.ng ♦ www.cmbnigeria.com ♦ www.nucecfww.com ♦ www.constructionreviewonline.com ♦ www.oecd.org ♦ www.constructionweekonline.com ♦ www.prodecoengineering.com ♦ www.corbon.gov.ng ♦ www.pwc.com ♦ www.corporate-nigeria.net ♦ www.pwlimited.com ♦ www.costainwa.com ♦ www.qsrbn.gov.ng ♦ www.dangcem.com ♦ www.rccnigeria.com ♦ www.delattre-bezons.com www.reconnectafrica.com ♦ www.deloitte.com ♦ www.sccnigeria.com ♦ www.doingbusiness.org ♦ www.setraco.net ♦ www.dutumgroup.com ♦ www.skyscrapercity.com ♦ www.economist.com ♦ www.stemco-nig.org ♦ www.engineeringnews.co.za ♦ www.technovanigeria.com ♦ www.ey.com ♦ www.theafricareport.com ♦ www.fm.co.za ♦ www.theconstructionindex.co.uk ♦ www.foci-nigeria.com ♦ www.tradeinvestnigeria.com ♦ www.g5.co.za ♦ www.worldbank.org

APPENDIX 1

List of Institutions Offering Building in Nigeria

FEDERAL/STATE UNIVERSITIES 1. Ahmadu Bello University, Zaria, Kaduna State 2. University of Lagos, Akoka, Lagos 3. Obafemi Awolowo University, Ile-Ife, Osun State 4. University of Jos, Plateau State 5. Abubabar Tafawa Belewa University, Bauchi State 6. Abia State University, Uturu, Abia State 7. Federal University of Technology, Minna, Niger State 8. University of Uyo, Akwa Ibom State 9. Enugu State University of Science & Technology, Enugu State 10. Imo State Unversity, Owerri, Imo State 11. Federal University of Technology, Yola, Adamawa State 12. Ondo State University Akungba, Ondo State 13. Ambrose Ali University, Ekpoma, Edo State 14. Rivers State University of Science & Technology, Port-Harcourt 15. Nnamdi Azikiwe University, Awka, Anambra State

PRIVATE UNIVERSITIES 1. Bells University, Otta, Ogun State 2. Covenant University, Otta,Ogun State 3. Joseph Ayo Babalola University, Ikeji, Arekeji, Osun State 4. Caleb University, Lagos

POLYTECHNICS 1. Federal Polytechnic Ado Ekiti, Ekiti State 2. Federal Polytechnic,Bida, Niger State 3. Federal Polytechnic, Ilaro, Ogun State 4. Federal Plytechnic, Kaura Namoda 5. Federal Polytechnic, Nasarawa 6. Ramat Polytechnic, Maiduguri, Borno State 7. The Polytechnic, Calabar, Cross Rivers State 8. The Polytechnic, Ibadan, Oyo State 9. The Polytechnic, Birnin-Kebbi, Kebbi State 10. Katsina State Polytechnic,Katsina 11. Kogi State Polytechnic, Lokoja,Niger State 12. Institute of Management and Technology, Enugu 13. Yaba College of Technology, Lagos 14. Federal Polytechnic, Oko, Anambra State 15. Federal Polytechnic, Auchi, Edo State 16. Kaduna Polytechnic, Kaduna 17. Federal Polytechnic, Nekede, Imo State 18. Kano State Polytechnic, Kano 19. Kwara State Polytechnic, Ilorin, Kwara State 20. Lagos State Polytechnic, Isolo, Lagos State 21. Our Saviour Institute of Science , Agriculture and Technology, Enugu 22. Osun Stae College of Technology, Esa-Oke 23. Akanu Ibiam Federal Polytechnic, Unwana, Afikpo

COMPANY PROFILES

ARAB CONTRACTORS OSMAN AHMED OSMAN & CO Updated: 2014-05-20

Postal Address: Physical Address:

34 Adly Street, Cairo 34 Adly Street, Cairo Egypt Egypt

Tel: +202 2 395-9500 Fax.: +202 2 393-7674

Email: [email protected] Website: www.arabcont.com

Branches

Branch Area Head Tel

Arab Contractors Alexandria Egypt Mr Aly Helmy Aly El-Garhy +202 12 104-9999

Arab Contractors Algeria Algeria Mr Dram Yahla Zakria +213 7702-74120

Arab Contractors Assiut Egypt mr Mohammed Mahfoz +20 88 229-3901

Arab Contractors Botswana Botswana Mr Mohammed Amgad Samir +267 390-8237

Arab Contractors Cairo Egypt Mr Mohammed Fath Allh +202 22 676-498

Arab Contractors Cameroon Cameroon Mr Ashraf Aly Hassen +237 795-358748

Arab Contractors Canal Egypt Mr Sameh Elsayed +20 64 332-0519

Arab Contractors Canal & Sinai Sector Egypt Mr Samir Saad Ahmed +20 64 332-6805

Arab Contractors Chad Chad Mr Waal Ahmed Abd-Eldayem +235 252-40068

Arab Contractors Cote D'Ivoire Cote D'Ivoire Mr Mahmoud Salem Ibrahim +225 55 570-1111

Arab Contractors Delta Sector Egypt Mr Mohamed Foaad Ismail +20 50 232-2660

Arab Contractors East & Middle Delta Egypt Mr Mohmmed Abd El Megid Mohamed +20 40 341-7607

Arab Contractors Equatorial Guinea Equatorial Guinea Mr Mahmoud Hossam +240 09-8690

Arab Contractors Ethiopia Ethiopia Mr Ahmed Mostfa +251 11 663-4968

Arab Contractors Ghana Ghana Omar Abd-Hafez Mohamed +233 5 447-60197

Arab Contractors Greater Cairo Sector Egypt Mr AHmed Abass +202 22 676-498

Arab Contractors Helwan Egypt Mr Ahmed Abbass Ibrahim +202 2 554-7627

Arab Contractors Libya Libya Mr Hassan Mohamed Ahmed Gahhin +218 21 480-5574

Arab Contractors Morocco Morocco Mr Morad Mohamed +212 2 226-6205

Arab Contractors Nasr City Egypt Mr Hussam El-Dean Mamdouh +202 22 247-598

Arab Contractors Nigeria Nigeria Mr Oassama Moustafa +234 1 262-0313

Arab Contractors North & Upper Egypt & Red Sea Sector Egypt +20 82 224-3280

Arab Contractors North Delta Egypt Mr Mohamed El-Said Hafez +20 50 223-4789

Arab Contractors North of Upper Egypt Egypt Mr Mohammed Abdel Azzem +20 82 224-7599

Arab Contractors Red Sea Egypt Mr Mokhles Tharwat Zekry +206 535-45145

Arab Contractors Sinai Egypt Mr Samir Mohamed +20 64 331-3817

Arab Contractors South Valley Egypt Mr Mahmoud Abdel Moula +20 97 230-8005

Arab Contractors South Valley & Assiut Sector Egypt Mr Assem Adwared +20 88 231-8518

Arab Contractors Sudan Sudan Mr Mohammed Mohammed Ahmed +249 183 468-522

Arab Contractors Tunisia Tunisia Mr Ahmed Sobhy +216 2148-5932

Arab Contractors Uganda Uganda Mr Mohamed Tolba Ahmed +256 77 270-0145

Arab Contractors Zambia Zambia Mr Kamel Elgibaly +260 21 123-4569

Shareholders

Shareholder Percentage Government of Egypt 100.00

Management

Name Appointment Date Designation

Mr ES Afify (Emam Sayed) Executive Director

Mr AS El Anwar (Abdel Salam) Non-Executive Director

Mr MMS El Din (Mohammed Mohsen Salah) Executive Chairman

Mr H El Din Emam (Hossam) Executive Human Resources Director

Mr HH El Far (Hassan Hosni) 2013-02-00 Executive Director

Mr S El Sayad (Samir) Non-Executive Director

Mr AAR El Sayyad (Ahmed Abdel Rehim) Non-Executive Director

Mr MS El Zahed (Mohammed Salah) 2013-02-00 Executive Director

Dr MO Elbeshouty (Mohamed Onsy) Chief Financial Officer

Mr S Farouk (Sayed) Vice-President

Mr SM Habib (Sherif Mohammed) Vice-President

Mr AS Mahmoud (Ahmed Saad) Non-Executive Director

Mr AMF Rateb (Ashraf Mohamed Fouad) 2013-02-00 Manager - African Sector

History of Business

Arab Contractors Osman Ahmed Osman & Co was established by Mr Osman Ahmed Osman in 1955. The Nigerian branch was established in 1991.

Nature of Business

Arab Contractors Osman Ahmed Osman & Co specialises in the construction of public buildings, bridges, roads, tunnels, airports, housing, water & sewage projects, wastewater treatment plants, power stations, dams, hospitals as well as sports facilities.

Arab Contractors Nigeria provides civil engineering, construction and related services. Projects include: • Lagos State House • Cement Factory Roads in Calabar • Housing of Obajana Cement Factory • Infrastructure for Tourist Area - Liki Coast • Calabar Roads - Cross River State • NDIC Head Office Building • AHIAJOKU Convention Cetre • Flame Tree Stock Exchange Building - Abuja • Roads Rehabilitation - Victoria Island • Infrastructure at Utako District - Abuja • Liki Housing Project - Lagos • Construction of Administrative Building for the Egyptian Embassy

Nr. of Employees 77000 (Group)

Auditors Central Auditing Organization

Turnover [2013] $ 1,621.60m (2012-2013 Results) (EGP 11,027.0m)

Brandnames

Arab Contractors

AURECON SOUTH AFRICA (PTY) LTD Reg. Number: 1977/003711/07 VAT Number: 4320106703 BEE Rating: Level 2 BEE Verification Agency Updated: 2014-05-25

Postal Address: Physical Address:

PO Box 905, Pretoria Aurecon Centre, Lynnwood Bridge Office Park 0001 4 Daventry Street, Lynnwood Manor, Pretoria, 0081

Tel: +27 12 427-2000 Fax.: +27 86 556-0521

Email: [email protected] Website: www.aurecongroup.com

Branches

Branch Area Head Tel

Aurecon Abu Dhabi United Arab Emirates Adrian Jones +971 2 642 3136

Aurecon Angola Angola Vivian Gericke +244 222 015 873

Aurecon Aspirata Pretoria Gauteng Sybrand Strauss +27 12 685 0800

Aurecon Bloemfontein Free State Jorrie Jordaan +27 51 447 8911

Aurecon Botswana Botswana Stefan Kleynhans +267 391 1397

Aurecon Century Falls Cape Town Western Cape J (Hannes) Kritzinger +27 21 526 9400

Aurecon Dubai United Arab Emirates Adian Jones +971 4 325 5576

Aurecon East London Eastern Cape Steve Landolt +27 43 721 0900

Aurecon Ekurhuleni Gauteng Shannon Ramsarup +27 11 662 0063

Aurecon eThekwini KwaZulu-Natal Koos Louw +27 31 714 2500

Aurecon Ethiopia Ethiopia Frezer Zemedkun +251 11 551 8036 / +251 11 553 4548

Aurecon George Western Cape BJH (Drikus) Jacobs +27 44 874 2165

Aurecon Geostrada Bloemfontein Free State Harold Cornelissen +27 51 430 2250

Aurecon Geostrada Luanda Angola Pius Kambinda +244 222 398 622

Aurecon Geostrada Tshwane Pretoria Gauteng Klaas Janse van Rensburg +27 12 427 3071

Aurecon Geostrada Windhoek Namibia Martin Schwartz +264 612 977 056

Aurecon Grootbrakrivier Western Cape BJH (Drikus) Jacobs +27 44 620 4943

Aurecon Harrismith Free State John Cato +27 58 622 1108

Aurecon Johannesburg Gauteng Peter Beretta +27 11 807 5840

Aurecon Kimberley Nothern Cape Jochie Prinsloo +27 53 807 1200

Aurecon Klerksdorp North West Peter Marais +27 18 462 8783

Aurecon Kuruman Northern Cape Andries Krüger +27 53 712 1253

Aurecon Lesotho Lesotho Tsebang Putsoane +266 22 315 788

Aurecon Libya Libya Deon Pretorius +218 21 484 2424

Aurecon Mafikeng North West Desmond Roets +27 18 386 4540

Aurecon Malawi Malawi Schalk van der Merwe +265 1 757 660

Aurecon Maputo Mozambique Jose Camba +258 21 49 3 632

Aurecon Mbombela Mpumalanga George Fullard +27 13 752 7055

Aurecon Mthatha Eastern Cape Kulile Clock +27 47 532 3694

Aurecon Nigeria Nigeria Willem Botha (Jnr) +234 805 589 1188

Aurecon Oshakati Namibia Lukas Awasman +264 65 231 626

Aurecon Paarl Western Cape Neil Laubscher +27 21 860 2200

Aurecon Pietermaritzburg KwaZulu-Natal Jochen Dedekind +27 33 342 8721 / 9531

Aurecon Polokwane Limpopo Hannes Claasens +27 15 295 4408

Aurecon Port Elizabeth Eastern Cape Adriaan van Heerden +27 41 503 3900

Aurecon Pretoria Gauteng Adriaan Esterhuizen +27 12 427 2000

Aurecon Rustenburg North West Francois Blay +27 14 567 1225

Aurecon Swaziland Swaziland Gilbert Mabila +268 404 8907

Aurecon Tanzania Tanzania Craig Wood +255 22 266 4671

Aurecon Tete Mozambique Sérgio Muhai +258 25 22 2 211

Aurecon Thabazimbi Limpopo Wynand Bezuidenhout +27 14 772 2821 /41

Aurecon Training Academy (ATA) Pretoria Gauteng Boyce Papu +27 12 427 2000

Aurecon Uganda Uganda Paul Sagala +256 41 25 4024

Aurecon Wedge Pretoria Gauteng Adriaan Esterhuizen +27 12 427 2000

Aurecon Windhoek Namibia Lukie van Staden +264 61 297 7000

Shareholders

Shareholder Percentage Aurecon Africa Ownership Trust 100.00

Management

Name Appointment Date Designation

Mr PC Blersch (Peter) 2009-03-16 Executive Director

Mr MG Diliza (Mzolisi (Zoli)) 2008-02-18 Non-Executive Director

Ms ZB Ebrahim (Zohra Begum) 2010-09-01 Director

Mr A Geldenhuys (Albert) 2009-01-03 Executive Director

Dr NN Gwagwa (Nolulamo Ndbamiswano (Lulu)) 2009-03-16 Non-Executive Director

Mr SA Le Roux (Stephanus (Fanus)) 1999-01-03 Executive Financial Director

Mr PC Lombard (Paul) 2009-01-03 Executive Director

Mr AN Mohr (Arnie) 2009-03-16 Executive Director

Mr GT Rohde (Gustav) 1999-01-03 Chief Executive Officer

Mr DM Triegaardt (Dwight) 2009-03-16 Executive Director

Mr BMH Tsita (Barney) 2009-03-16 Chairman

History of Business

The company was established in January 2008 utilising a dormant entity named Africon Management Services (Pty) Ltd which had undergone several name changes, the most recent in January 2008 to Africon (Pty) Ltd, incorporating the operations of Africon Engineering International (Pty) Ltd, which is now an asset holding company. The company underwent a further name change on 17 March 2009 to Aurecon South Africa (Pty) Ltd.

Nature of Business

Aurecon South Africa (Pty) Ltd provides a range of engineering, management and professional technical services on large-scale infrastructure projects across various sectors for government and private sector clients globally. Services include community development and infrastructure, energy, mining and industrial, property, transport and water.

Aurecon operates throughout South Africa with 24 offices countrywide and has 18 offices in Africa and the Middle East.

Projects in Nigeria include: • Pre- and feasibility study for the Lagos Infrastructure Project • Detail design and construction supervision of the Epe Expressway Toll Road • Detail design of two bridges in Isheri • Detail design of the Osborne Jetty Terminal • Stormwater master planning and detail design of stormwater structures for Benin City • Dasic planning for the new NLNG ISB/OSB development in Port Harcourt • Detail design of the Kashimbila and Otukpo Dams

• Feasibility studies for the Ibadan Expressway Toll Road and a 1 200 MW coal fired power plant in Kogi State • Master planning for the Gracefield Development • Detail design for the Gombe-Biu and Akure-Ilesha roads • Technical advisory services for the Lagos Cable Transit Project • Technical advisory services for the Red Line of the Lagos Light Rail Project • Kashimila Hydropower Station • Gurara Pipeline • Lekki-Epe Expressway Toll Road

Nr. of Employees 7500 (Group) (2593 - South Africa)

Banks ABSA Bank Ltd

Auditors KPMG Inc

Turnover [2013] R 10,800.00m (As per company)

Brandnames

Aurecon

BRUNELLI CONSTRUCTION COMPANY (NIGERIA) LTD Updated: 2014-05-21

Postal Address: Physical Address:

PO Box 2748, Lagos Km 3, Lagos / Badagary Expressway Nigeria Orile Iganmu, Lagos, Nigeria

Tel: +234 1 774-1803 / 791-2316 Fax.: +234 1 791-2317

Email: [email protected] / technicaldepartement Website: www.brunelliconstruction.com

Shareholders

Shareholder Percentage Societa Costruzioni Ing Piccolo Brunelli & Co SAS 100.00

Management

Name Appointment Date Designation

Mr DP Brunelli (Dante Piccolo) Executive Managing Director & Chief Executive Officer

Mr AAS Dantata (Alhaji AS) Chairman

Mr C Munukutla (Chandrasekhar) 2012-11-00 Technical Manager

History of Business

Brunelli Construction Company (Nigeria) Ltd was established in 1972.

Nature of Business

Brunelli Construction Company (Nigeria) Ltd is involved in the construction of roads and bridges, piling and foundation works, diaphragm wall installation, construction of jetties, shore protection works, dredging of canals, drainage construction, water supply and treatment plants, production of spun concrete NEPA poles and structural members, pre-cast piles as well as sheet pile quay wall sections. Projects include: • Foundations for Re Insurance Corporation • Foundations for Chellarams (now WEMA Bank building) • Foundations for African Continental Bank • Foundations for New Nigeria Bank • Foundations for WEMA Bank • Foundations for Trade House • Foundations for Nigeria-Arab Bank Ltd • Pile foundations for 6 bridges along Aba-Oron & Aba Abakiliki roads in the east including the bridges • Federal Secretariat Phase, Ikoyi • Cased piles for railway bridge at NNPC, Kaduna • Bored piles for 132 KVA Transmission towers • Bored piles for 3 bridges for Katsina State • Bored piles for I & II Phase construction of head office of revenue mobilization and fisical commission, Abuja • Bored piles for Burga bridge, Bauchi State • Foundations for the 40,000 tons cement silos for NISPA Cement Apapa • Globspin Textile Factory, Isolo • NTA Studios, Tejosho, Lagos • Sugar Refinery project, Apapa • Cement silos, Obajana for Dangote Cement • Food processing factory for BUA international at Rin Tincan Island • Diaphragm wall installation Imo House, Lagos • African Continental bank • New Nigeria Bank • Nigeria Reinsurance Corporation • Wema Bank head office • Nigeria Arab Bank Ltd • Construction of Jetty for Mid maritime at Tin can Island.

• A jetty for the naval sea school (FMW) at Snake Island • Construction of a Ferry-jetty in lagoon at Oworonsoki for Federal Urban Mass Transit Agency • Reinforced spun concrete sheet piles. • Shore protection works Louis Close Victoria Island • Dubri Oil, Victoria Island • Pier Harbor Residence • Marinho Drive • Victoria Island using boulder quay wall • MALBON Ltd., Marinho Drive Victoria Island • Foreshore, Osborne Road, Ikoyi • Dedging of Canals Akoka Channelisation scheme, Lagos • UNILAG, Iwaya CANAL • Gbagada to Bariga canal • Mende-Odo-lya Alaro Canal • Dredging of Ayeke-Achalkpo-Badagry and Bala-Okoyo Canals • The complete drainage scheme for the National Theater Complex • Drainage works at FESTAC Town, Lagos, Federal Housing Authority-complete concrete drains and culverts • Concrete drains for Federal College of education, Ojo • Concrete collector drains for satellite, Lagos • Concrete collector drains at Shomolu Channelisation project • Old Lagos-ibadan Road • Ondo-Akure Road • Ibdan-lfe Road • Ileolui-Ipetu Road • Festac Village, Lagos (FMH) • Satellite Town, Lagos (FMW) • Ondo Township Roads (Ondo state) • Ikom and Badagry Barracks (Nigerian Army • Construction of Bore Holes and water Treatment plant for National theatre • Complete sewage system and sewage treatment plant of teachers Ikom barracks, Nigerian Army, Calabar

Nr. of Employees 196

Brandnames

Brunelli

BUILDSTRUCT NIGERIA LTD Updated: 2014-05-21

Postal Address: Physical Address:

No 9 Zoo Road, Kano No 9 Zoo Road, Kano Nigeria Nigeria

Tel: +234 803 311-8640 / 805 648-0801 / 802 854-6285 Fax.:

Email: [email protected] / [email protected] Website: www.buildstruct.com

Management

Name Appointment Date Designation

Mr BJ Onaolapo (Babatunde Jimo) Chief Executive Officer

History of Business

Buildstruct Nigeria Ltd was established in 1989 as a firm of consulting engineers.

Nature of Business

Buildstruct Nigeria Ltd is involved in the construction of commercial as well as residential buildings, including hotels.

Brandnames

Buildstruct

General Comment

Buildstruct Nigeria Ltd's ongoing projects are Kwankwasiya City, Guzape Duplexes, Asmau International College.

C&C CONSTRUCTION COMPANY LTD Updated: 2014-05-21

Postal Address: Physical Address:

PO Box 60336, Victoria Island Plot 1684, Sanusi Fafunwa Street Ikoyi, Lagos, Nigeria Victoria Island, Ikoyi, Lagos, Nigeria

Tel: +234 1 261-1307 Fax.:

Email: [email protected] Website: www.candcconstructionnigeria.com

Shareholders

Shareholder Percentage Chagoury Group (The) 100.00

Management

Name Appointment Date Designation

Mr R Chagoury (Ronald) Chief Executive Officer

Mr G Chagoury (Gilbert) Chairman

History of Business

C&C Construction Company Ltd was established in 1979.

Nature of Business

C&C Construction Company Ltd undertakes residential as well as commercial construction in Nigeria. Construction projects range from single unit projects for individuals to corporate and multinational projects. The company has its own concrete production facility to import modern industrial equipment from Europe.

Successfully completed projects, include: • Ideal Flour Mills • Nigerian Eagle Flour Mills • Tin Can Island • The State Security Headquarters Building in Abuja • An entire housing, school and leisure complex for client Elf Petroleum Nigeria Ltd • A foreshore development project in Osborne Road, Ikoyi C rrent projects include: • Ocean Parade Towers, Banana Island in Lagos Lagoon • The Nigerian Defence Academy

Nr. of Employees 1000

Brandnames

C&C Construction

CAPPA & D'ALBERTO PLC Updated: 2014-05-20

Postal Address: Physical Address:

PO Box 870, Lagos 72 Campbell Street, Lagos Nigeria Nigeria

Tel: +234 1 212-0481 / 212-0483 Fax.: +234 1 263-3794

Email: [email protected] Website: www.capdal.com

Branches

Branch Area Head Tel

Cappa & D'Alberto Abuja Nigeria

Cappa & D'Alberto Ibadan Nigeria

Cappa & D'Alberto Kaduna Nigeria

Cappa & D'Alberto Port Harcourt Nigeria

Shareholders

Shareholder Percentage Construction & Engineering Investments AG 32.14 International Building Investment AG 25.75 Lagos State Government 18.94 National Insurance Corporation of Nigeria Plc 10.00

Management

Name Appointment Date Designation

Mr CE Calvino (Cav E) Executive Director

Mr B Cappa Executive Director

Mr RA Gbadamosi (Rasheed Ahmed) Non-Executive Director

Mr G Gianotti (Guilio) Non-Executive Chairman

Mr F Gianotti Executive Managing Director & Deputy Chairman

Mr GM Grand (Mello) Executive Director

Mr LU Ikenyi Non-Executive Director

Mr A Kiyomi Non-Executive Director

Mr GP Salgarella Executive Director

Mr AR Seriki Non-Executive Director

History of Business

Cappa & D'Alberto Plc was established as a partnership in Nigeria in 1932 by Pietro Carlo Cappa and Vigino D'Alberto. The company listed on the Nigerian Stock Exchange on 4 December 1978.

Nature of Business

Cappa & D'Alberto Plc operates as building and civil engineering contractors. The company focuses primarily on the construction of residential, commercial as well as office buildings. Recent projects include the Zenith Bank and Diamond Bank Towers in Lagos.

Nr. of Employees 3000

Secretary Marina Nominees Ltd

Diamond Bank Plc; Equatorial Trust Bank Ltd; First City Monument Bank Plc; Guaranty Trust Bank Plc; Banks Citibank Nigeria Ltd; Union Bank of Nigeria Plc; United Bank for Africa Plc; Zenith Bank Plc

Auditors Akintola Williams Deloitte

Attorneys Olusola Agbaje & Co

Turnover [2011] $ 64.20m (2011 Financials) (Naira 9,944.4m)

Estimated Profit $4.3m (Net)

Transfer Secretaries

Name Physical Address Postal Address Tel

UBA Registrars Ltd

Influencing Factors

The need for more construction companies necessitated by the growth in Nigeria poses a challenge to the company.

Brandnames

Cappa & D'Alberto

Direct Subsidiaries, Associates & Investments

Company Name Percentage Igbobi Development Company Ltd 100.00 KLAFG06 Ltd 40.00 Stone Road Properties Ltd 100.00

CCECC NIGERIA LTD Updated: 2014-05-21

Postal Address: Physical Address:

46 Nnamdi Azikiwe Drive, Ebute Metta 46 Nnamdi Azikiwe Drive, Ebute Metta Lagos Mainland, Lagos, Nigeria Lagos Mainland, Lagos, Nigeria,

Email: [email protected] Website: www.ccecc.com.cn

Shareholders

Shareholder Percentage China Civil Engineering Construction Corporation 100.00

Management

Name Appointment Date Designation

Mr CB Gang (Cao Bao) Executive Managing Director

History of Business

CCECC Nigeria Ltd was established in 1979.

Nature of Business

CCECC Nigeria Ltd provides construction as well as civil engineering services in Nigeria. The company is currently constructing four new international airport terminals.

Nr. of Employees 20000

Brandnames

CCECC

CMB BUILDING MAINTENANCE & INVESTMENT COMPANY LTD Updated: 2014-05-21

Postal Address: Physical Address:

15BB Ojomu Road, Ikoyi 15BB Ojomu Road, Ikoyi Lagos, Nigeria Lagos, Nigeria

Tel: +234 1 461-5886 / 736-8797 Fax.:

Email: [email protected] Website: www.cmbnigeria.com

Branches

Branch Area Head Tel

CMB Building Maintenance Abeokuta Nigeria +234 39 851-109

CMB Building Maintenance Abuja Nigeria +234 709 876-7448

CMB Building Maintenance Pearl Apartment Nigeria

CMB Building Maintenance Pearl Coppice Estate Nigeria

CMB Building Maintenance Pearl Gardens Estate Nigeria

CMB Building Maintenance Pearl Nuga-Park Estate Nigeria

CMB Building Maintenance Pearl Royale I & II Estates Nigeria

CMB Building Maintenance Pearl View Nigeria

Management

Name Appointment Date Designation

Dr SF Kuku (Sonny F Olorogun) Chairman

Ms N Kuteyi (Nike) Manager - Client Services Department

Mr K Mbagwu (Kelechukwu) Chief Executive Officer

History of Business

CMB Building Maintenance & Investment Company Ltd was established in 2002 and became fully operational in March 2003.

Nature of Business

CMB Building Maintenance & Investment Company Ltd is involved in the real estate industry, with a focus on: • Estate / Property Development • Facilities Management • Asphalt Road Surfacing and Repairs • Real Estate Business Plan and Evaluation • Real Estate Advisory Services

Clients include: • Chevron • Fidelity Bank • Guaranty Trust Bank • Citibank • NNPC • NBL

Nr. of Employees 250

Brandnames

CMB

Trademarks

Start With Us, End With Yours

COSTAIN WEST AFRICA PLC Updated: 2014-05-20

Postal Address: Physical Address:

PO Box 88, Lagos State 174 Funso Williams Avenue, Ebute-Metta Nigeria Lagos, Nigeria

Tel: +234 1 774-8540 Fax.: +234 1 587-6204 / 580-1870-4

Email: [email protected] Website:

Shareholders

Shareholder Percentage Shoreline Energy International Ltd 47.43

Management

Name Appointment Date Designation

Mr O Adesegha (Olanrewaju (Lanre)) Human Resources Manager

Mr S Adetu (Soji) Manager - Estimating

Mr S Agbede (Shade) Commercial Manager

Mr B Akinbo (Bayo) Manager - Planning

Mr R Alarape (Rahman) Manager - Procurement & Supply

Mr C Ashimole (Chukwuemeka (Emeka)) Financial Manager

Dr O Bada (Oladimeji) Non-Executive Director

Ms L Coker (Lara) Company Secretary

Mr O Karim (Orikolade) Non-Executive Chairman

Mr A Karim (Ayodeji) Chief Executive Officer & Managing Director

Dr H Kenny (HC) Manager - Medical

Mr C Lotter (Coenraad J) Commercial Manager

Mr S Mills (Steve) General Manager - Rail Works

Mr G Mitchell (Godfrey) Non-Executive Director

Mr A Nwanpa (Abel) Information Technology Manager

Mr C Onayo (Clement) General Manager - New Business

Mr H Ploeger (Harm) Executive Financial Director

Mr M Stephens (Mark) Executive Operations Director

Mr B Waite (Billy) General Manager - Plant & Transport

Mr P Wharton (Philip (Phil)) Deputy Chairman

History of Business

Costain West Africa Plc was established on 16 July 1948 and became a public company on 13 March 1974.

Nature of Business

Costain West Africa Plc undertakes civil engineering, general construction of roads and railway as well as airport construction. Services include project management and development, construction in oil, gas, residential works and building construction.

Nr. of Employees 603

Banks Ecobank Nigeria Ltd; First Bank of Nigeria Plc; Zenith Bank Plc; Bank PHB Plc; Guaranty Trust Bank Plc

Auditors Akintola Williams Deloitte

Turnover [2012] $ 46.90m (2012 Audited Results) (N7.4m)

Estimated Profit -$12.2m

Transfer Secretaries

Name Physical Address Postal Address Tel

First Registrars Nigeria Ltd 2, Abebe Village Road, Igammu, Lagos, Nigeria

Influencing Factors

The global recession during 2010 took its toll on Costain West Africa Plc, but by reorganising its activities the Nigerian construction firm formed a strong foundation for growth in the future.

Corporate Risk Management in the Industry

Customer Base: The Group has diversified its customer base to include clients from the industrial and production sector, the oil and gas sector, private individuals, Federal, State and Local governments and government agencies, etc. This within the existing customer portfolio is to prevent the occurrence of any unanticipated risk in a particular customer cluster or business line. The selection of clients or contracts to be executed is done by executive management based on the liquidity analysis of the prospective customers. The Group has commenced ventures in countries other than Nigeria to mitigate country risks.

Debt Recovery: Management is proactive in the recovery of payments, especially debts that are overdue. An aged analysis of debtors is carried out by management on a periodic basis and efforts are geared towards recovery of all existing debts.

Finance: Management has established sound banking relationships to ensure availability of funds in case there is delay in payment which companies in the construction industry are often subjected to.

Brandnames

Costain

Direct Subsidiaries, Associates & Investments

Company Name Percentage CWA Furniture & Joinery Ltd 100.00 CWA Ghana Ltd 100.00 Foundation Engineering Nigeria Ltd 100.00 Trans Amadi Facilities Ltd 51.00

DELATTRE BEZONS NIGERIA LTD Updated: 2014-05-21

Postal Address: Physical Address:

PO Box 51150, Falomo 184 A&B, Moshood Olugbani Street Lagos, Nigeria Victoria Island, Annex, Lagos, Nigeria

Tel: +234 1 774-9940 / 794-4922 Fax.: +234 1 461-8378

Email: [email protected] Website: www.delattre-bezons.com

Branches

Branch Area Head Tel

Delattre Bezons Port Harcourt Base Nigeria

Delattre Bezons Warri Baze Nigeria

Shareholders

Shareholder Percentage Delattre Bezons SA 96.00

Management

Name Appointment Date Designation

Mr R Abhijit (Roy) Operations Manager

Mr ON Akwiwu (Obinna N) Chairman

Mr K Belkaid (Karim) Executive Managing Director

Mr A Ebhomen (Austeen) Business Development Manager

Dr S Nwaogbo (Simo) Manager - Corporate Services

Mr K Ogoh (Keme) Administration Manager

History of Business

Delattre Bezons Nigeria Ltd was established in 1978.

Nature of Business

Delattre Bezons Nigeria Ltd is involved in the design and construction of both on-shore and off-shore projects in the oil and gas sectors. Projects include: • Bonny Train 6 ASI Project – Balance of Plant • Technical Assistance for Start-up & Post Commissioning activities – AKPO FPSO • Fabrication of production & water injection jumpers for AKPO FPSO

Brandnames

Delattre Bezons, DBN

DUTUM COMPANY LTD Updated: 2014-05-22

Postal Address: Physical Address:

PO Box 15875, Dugbe Isaac's Place, Opposite Total Petrol Station Ibadan, Oyo Onireke, Dugbe, Ibadan, Oyo

Tel: +234 706 062-4475 Fax.:

dutumng@ Email: yahoo.com / info@ Website: www.dutumgroup.com dutumgroup.com

Branches

Branch Area Head Tel

Dutum Abuja Nigeria +234 805 831-7200 / 706 967-1901

Management

Name Appointment Date Designation

Mr O Runsewe (Olatunde) Chief Executive Officer

Mr T Runsewe (Temitope) 2009-04-00 Director

History of Business

Dutum Company Ltd was established in 1999.

Nature of Business

Dutum Company Ltd is involved in: • Civil & Building Engineering • Real Estate Development • Oil & Gas • Quarrying

Completed & Ongoing Projects include: • Construction of 50Km Nkporo-Abiriba-Ohafia Road • Construction of 2 Nos Pedestrian Bridges in FCT • Construction & Rehabilitation of 75Km Ogbomosho-Oko-Oshogo Road • Completed Ijowa-Ejuku-Jege 30 Km Road in Kogi • Completed Senate Building of Covenant University • Completed College Building of Landmark University • Construction of Internal Road Network of 500 Housing Units • Construction & Rehabilitation of 19Km Osu-Iloba-Oke-Bode-Kajola Road • Construction of Dominion Air Double Hanger at Murtala Mohammed International Airport • Construction of Internal Road Network at Samonda GRA • Rehabilitation of Abanla-Ikija-Sanusi Road

The company also provides design, construction supervision as well as project management projects as stand-alone cases.

Brandnames

Dutum

G CAPPA PLC Updated: 2014-05-23

Postal Address: Physical Address:

8 Taylor Road, Iddo 8 Taylor Road, Iddo Lagos, Nigeria Lagos, Nigeria

Tel: +234 1 739-5495 / 739-5496 / 774-0931 Fax.: +234 1 585-3453

Email: [email protected] Website: www.gcappaplc.com

Branches

Branch Area Head Tel

G Cappa Abuja Nigeria

G Cappa Ibadan Nigeria

G Cappa Kaduna Nigeria

G Cappa Port Harcourt Nigeria

G Cappa Warri Nigeria

Management

Name Appointment Date Designation

Mr AB Aminu (Alhaji Bashari) Non-Executive Director

Ms E Matthys (Evelyne) Non-Executive Deputy Chairman

Mr FW Matthys (Felix W) Executive Managing Director - Acting

Sir E Ofolue (Emmanuel) Non-Executive Director

History of Business

G Cappa Plc was established on 2 October 1952 and listed on the Nigerian Stock Exchange on 25 May 1979.

Nature of Business

G Cappa Plc operates as a private limited liability company in building and civil engineering construction. The company focuses on areas which include industrial and commercial projects, as well as educational facilities and residential developments in Nigeria.

Projects include: • Head Office Development for Chevron, Lekki • NCR Office Block, 10 Broad Street, Lagos • Office Block for First City Merchant Bank, 17A Tinubu Street, Lagos • Stock Exchange House, Customs Street, Lagos • NIDB Office Block, Broad Street, Lagos • Phase One Mandilas Office Block, Broad Street, Lagos • Bookshop House, Broad Street, Lagos • AP Office Block, Broad Street, Lagos • Royal Exchange Assurance Office Block, Marina, Lagos • Freeman House Offices, 21 Marina, Lagos • Wesley House 21A Marina, Lagos • Republic Building, Marina, Lagos • Co-Operative Offices and Shops, Ibadan • NNN Office Block, Kaduna • Hospital Block for First Consultant Medical Center, Obalende • FJK Randle Hall, King George V Road, Lagos • German Embassy, Victoria Island • Catholic Secretariat, Force Road, Lagos • Metropolitan Club, Victoria Island, Lagos • Ibadan Recreation Club • Mainland Hotel, Ebute Metta, Lagos

• Federal Palace Hotel Suites, Victoria Island • Atlantic Block for Ikoyi Hotel, Ikoyi, Lagos • Training School for Ikoyi Hotel, Ikoyi, Lagos • Daily Times Offices, Phoenix Lane, Lagos • Terminal Buildings, Kano Airport • Glover Hall, Customs Street, Lagos • Union Bank Office, 9 Wharf Road, Apapa, Lagos • Mosaic House, Customs Street, Lagos • Office Development for Investment Banking & Trust Company, V/I • Office Block for United Bank for Africa Plc, Broad Street, Lagos • Corporate Headquarters for First Bank of Nigeria Plc • Nigerian Agricultural Co-Operative Bank, Kaduna • Shopping Center Phase I, Agbara Estate • Akuro House, Offices at Campbell Street, Lagos • Hospital Block, EKO Hospital Plc, Bank Anthony Way, Ikeja • Headquarters WAPCO Plc, Alausa, Ikeja • Lekki Conservative Center, Lekki Peninsula • Office Block for Allied Bank Nigeria Ltd • MUSON Center, Onikan, Lagos • Folawiyo Plaza, Warehouse Road, Apapa • Office Block for Federal Ministry of Industries, Abuja • Union Bank Plc Corporate Head Office (Stallion Plaza) Marina, Lagos • Office Development for NAL Merchant Bank, Port Harcourt • Office Block for Churchgate Nigeria Ltd • Commercial Complex, Abuja for UAC Nigeria Ltd • Office Development for Wisan (Akintola Williams Deloitte and Touche), Lagos • Bacita Sugar Factory, Bacita • Polyster Spinning Plant for Nichemtex Industries, Ikorodu • Metal Box, Toyo Glass, Bottle Factory, Agbara Estate • Contract 2, Shagamu Cement Works for WAPCO Plc • Warehouse for P.Z. Industries, Isolo • SNCCL Laboratories and Offices, Mushin, Lagos • ACPN Factory, Ikeja • Nigerian Breweries Plc Factory, Ibadan • Harp Lager Brewery for Guiness Nigeria Plc, Ikeja • ITI Spinning Mill, Oshodi, Lagos • Polyster Factory for United Spinners, Apapa • Textile Factory for Alkem Nigeria Limited, Apapa • Factory Development for Nigerian Breweries, Ibadan • Factory Development for Nichemtex Industries Ltd, Ikorodu • Heavy Engineering Laboratories, UNILAG • Auditorium, UNILAG • Sport Complex, UNILAG • Science Complex, UNILAG • Male Dormitories (King Jaja Hall), UNILAG • Works & Service Complex, UNILAG • Phase I & II of University Complex • Nigerian Institute of International Affairs, Victoria Island • International Institute of Tropical Agriculture, Ibadan • Friday Mosque, Abuja • Ereko Methodist Church, Lagos • Lagos Central Mosque, Nnamdi Azikiwe Street, Lagos • Sultan Bello Mosque, Kaduna

• 1007 Classrooms for Lagos State Government • Drug Laboratories for Ministry of Health, Yaba, Lagos • P & T Training School, Oshodi (now Nitel) • Extension to Lagos Exchange "B" for P & T (now Nitel) • Supreme Court and Extension • Administrative Centre, Ajoda New Town Development Center, Ibadan • Complex for Federal Supersphate Co. • Jos Abattior • Independence Building, Lagos • Central Bank Of Nigeria • General Post Office, Kano • Extension to Lagos General Hospital • Office Block for film Unit • LSTC Bus Depot, Isolo • Contract 300, FMW Road, Victoria Island • Junior Officers Staff College, Jaji, Residential Accommodation • Naval Facility, Jaji • Barrack Development at Ojo, Ikeja, Igbobi, Ibadan, Kaduna and Lagos • Office Block for FEPA, Abuja • Ministry of External Affairs Headquarters • Nigerian National Petroleum Corporation (NNPC) Head Office, Blocks • 105 Houses, Agbara Estate • 71 High Income Housing Units, Festac Village • 4 Blocks of 13 Storey Category C Flats, Mulliner Road • Shell Petroleum Flats, First/Second Avenue, Ikoyi • Residential and Recreational Facilities, NET Lanlate Satelite Station • Residential and Recreational Facilities, Jebba Dam • Housing for UAC at Glover Road, Ikoyi • British High Commission's Residence, Marina, Lagos • Estate of 36 Housing Unit, Onigbongbo, Maryland • YMCA Building, King George V Road, Lagos • Flats for AG Leventis, 7 Gerrard Road, Ikoyi • 3 Block of Luxury Flats for Mobil Oil Nigeria Ltd • 2 Nos. Block of Flats, Plot 1699 Sanusi Fafunwa Street, Victoria Island • Luxury Apartment, 17 Oyinkan Abayomi Drive, Ikoyi • Block of Flats Plot 981 Saka Jojo Street, Victoria Island • Block of Flats at Plot 249 Ojora Close, Victoria Island • 2 Nos. Housing Unit, Plot 14 Park View Estate, Ikoyi • Residential Complex, Alagbado • 13 Bourdillon Road, Ikoyi • Plot 308 Victoria Island Annexe • Ancillary Building for UAC, 43 Bourdillon Road, Ikoyi • Luxury House at 5 Oyinkan Abayomi Drive, Ikoyi

Nr. of Employees 1085

Auditors Akintola Williams Deloitte

Turnover [2012] $ 840.70m (2012 Financials) (Naira 132,530.0m)

Estimated Profit -$3,183.3m

Transfer Secretaries

Name Physical Address Postal Address Tel

UBA Global Markets Ltd

Brandnames

G Cappa

GODSTAR ENGINEERING COMPANY LTD Updated: 2014-05-22

Postal Address: Physical Address:

16 Salemi Saibu Street, Pedro 16 Salemi Saibu Street, Pedro Shomolu, Lagos, Nigeria Shomolu, Lagos, Nigeria

+234 802 301-7119 / 803 406-1226 / 704 317-6671 / 1 Tel: Fax.: 897-3946

Email: [email protected] Website: www.godstareng.com

Management

Name Appointment Date Designation

Mr S George (Sava) Executive Director - Projects

Mr DI Osakwe (Donald) Chief Executive Officer

Mr HO Ugwejeh (Hyacinth Obi) Executive Technical Director

History of Business

Godstar Engineering Company Ltd was established on 1 September 1997.

Nature of Business

Godstar Engineering Company Ltd provides consultancy and construction services which include architecture, urban development, engineering design, construction, project management, real estate property development, development and implementation of policy framework and institutional reforms, engineering investigation, field studies and feasibility reports, urban and rural roads development as well as management services.

Projects include: • Office Compex at No 76 Ogunlana Drive • Site Layout of Multi-Purpose Development Project • Site Layout of New Coker Modern Market Complex • Projects executed for Bank PHB • Projects executed for Hallmark Bank • Projects executed for PEPFAR

Brandnames

GodStar

GROUP FIVE POWER PROJECTS LTD (NIGERIA) Updated: 2013-04-23

Postal Address: Physical Address:

Plot 252E, Muri Okunola Street Plot 252E, Muri Okunola Street Victoria Island, Lagos, Nigeria Victoria Island, Lagos, Nigeria

Tel: +234 1 804-4759 Fax.:

Shareholders

Shareholder Percentage Group Five Construction (UK) Ltd 90.00 Group Five International Ltd 10.00

Management

Name Appointment Date Designation

Mr J Lotz (John) Head: Africa Project Developments

Nature of Business

Group Five Power Projects Ltd (Nigeria) is a co-developer, equity participant, turnkey design-and-build contractor, consortium partner or constructor of power plants.

HFP ENGINEERING (NIGERIA) LTD Updated: 2014-05-22

Postal Address: Physical Address:

Plot 0-17B, Road 8 Plot 0-17B, Road 8 Victoria Garden City, Lagos, Nigeria Victoria Garden City, Lagos, Nigeria

Tel: +234 1 461-0000 / 809 461-0000 Fax.:

info@ Email: hfpng.com / personnel@ Website: www.hfpng.com hfpng.com

Shareholders

Shareholder Percentage Globe International Holdings SA 100.00

Management

Name Appointment Date Designation

Ms K Aighe (Kate) 1993-00-00 General Manager - Clean Service & Sales Admin

Mr RE Anyanwu (Robert E) 1987-00-00 Manager - Personnel

Mr Y Chai (Yaakov) Non-Executive Chairman

Mr J Chilakpu (Jude) Manager - Electrical

Mr I Edgar (Ivanov) 2009-00-00 Manager - Site

Mr A Emeruwa (Anthony (Tony)) 1982-00-00 Technical Manager - Treasury

Mr E Idiahi (Eric) Non-Executive Director

Mr OD Igunbor (Osayeme D) 1998-00-00 Chief Accountant

Mr N Iredje (Nathaniel) 1988-00-00 Logistics Manager

Mr K Ivanov (Krassimir) Manager - Site

Mr TN Ivanov (Tihomir Ninov (Tony)) 2010-00-00 Manager - Site

Mr E Kolev (Emil) Chief Operating Officer

Mr L Krastev (Lubomir) 2009-00-00 Manager - Site

Adv A Martins (Ayodele (Dele)) 2008-07-01 Executive Managing Director

Mr L Nizri (Lior) Financial - Controller

Mr C Nwogwugwu (Cosmos) 1988-00-00 Manager - Protocol

Mr O Oladimeji (Odebisi) Manager - Mechanical Workshop

Adv KO Omojola (Kingsley O) 1991-00-00 General Manager - Legal & Admin

Mr S Owolabi (Shakiru) Quantity Surveyor

Mr S Prabhakaran (S (Mr Karan)) 2009-00-00 Manager - Site

Mr AI Stefanov (Angelov Ivo) Manager - Site

Mr T Todorov (Todor) 1991-00-00 Manager - Site

History of Business

HFP Engineering (Nigeria) Ltd was established in 1979.

Nature of Business

HFP Engineering (Nigeria) Ltd (HFP) operates as a construction and civil engineering provider in the mixed residential and commercial market. The company also undertakes the construction of roads and related infrastructure throughout Nigeria and HFP has initiated a property development strategy that has provided the company with a portfolio of real estate in Lagos and Abuja including both commercial and residential properties. HFP leases the land from a landlord, fully develops it and subsequently constructs residential and commercial properties available for renting. The company has more than 300 properties in its portfolio.

Current projects include:

• Fountain Springville Estate • Paving Stone and Industrial Part • New Shopping Complex at Ajah • Ikate Mini Water Works • Meran Mini Water Works • Adeniran Ogunsanya / Akerele Street Road Upgrading

Nr. of Employees 7000

Brandnames

HFP

HITECH CONSTRUCTION COMPANY LTD Updated: 2014-05-22

Postal Address: Physical Address:

9th Floor, Plot 1684, Sanusi Faunwa Street 9th Floor, Plot 1684, Sanusi Faunwa Street Victoria Island, Lagos, Nigeria Victoria Island, Lagos, Nigeria

Tel: +234 1 262-3351 Fax.: +234 1 261-1307

Email: [email protected] Website: www.hitechconstructioncompany.com

Shareholders

Shareholder Percentage Chagoury Group (The) 100.00

Management

Name Appointment Date Designation

Mr I Bekker (Ivan) 2012-01-00 Executive Managing Director

History of Business

Hitech Construction Company Ltd was established in 1988.

Nature of Business

Hitech Construction Company Ltd is involved in infrastructure development, construction and rehabilitation of roads and bridges. The company also provides site clearance as well as earthworks and drainage services. The company has invested in advanced infrastructure equipment to create its own factories to establish the country's first pre-stressed concrete facility.

Nr. of Employees 1000

Brandnames

Hitech

ITB NIGERIA LTD Reg. Number: RC282658 VAT Number: VIV/05002282658 Updated: 2014-05-22

Postal Address: Physical Address:

PO Box 60336, Ikoyi 9th Floor, Plot 1684, Sanusi Fafunwa Street Lagos, Nigeria Victoria Island, Lagos, Nigeria

Tel: +234 1 262-0793/4 / 261-1649 Fax.: +234 1 261-1307

Email: [email protected] Website: www.itbconstruction.com

Shareholders

Shareholder Percentage Chagoury Group (The) 100.00

Management

Name Appointment Date Designation

Mr P Lotz (Pieter) 2012-09-00 Manager - Health & Safety

Mr G Massoud (Gabi) Executive Managing Director

History of Business

ITB Nigeria Ltd was established in 1995.

Nature of Business

ITB Nigeria Ltd is a civil engineering and construction company which focuses on residential building projects and industrial construction. The company also manufactures pilings and provides electro-mechanical services and supplies products and equipment.

Projects include: • The National Assembly Complex in Abuja, northern Nigeria • A residential development project of 13 floors on Victoria Island, Lagos • The design and construction of a staff housing complex of 800 units for client ALSCON’s Aluminium Smelter Plant • The new Intercontinental Hotel on Victoria Island, Lagos (with 19 floors, this will stand roughly 90 metres tall and will be the tallest building on the island) • A new HQ for Magnum Trust Bank of Nigeria • The new headquarters and office complex for TOTAL oil company in Port Harcourt

Nr. of Employees 4000

Banks GT Bank Plc; First Bank of Nigeria Plc

Insurance Brokers Unitrust Insurance

Brandnames

ITB

General Comment

ITB Nigeria Ltd plans to increase national interest in civil engineering, promoting African expertise at home and abroad and eventually taking African engineers into the global export market.

JULIUS BERGER NIGERIA PLC Updated: 2014-05-19

Postal Address: Physical Address:

10 Shettima A, Munguno Crescent, Utako 10 Shettima A, Munguno Crescent, Utako Abuja FCT, NG 900 109 Abuja FCT, NG 900 109

Tel: +234 803 906-7000 Fax.:

Email: [email protected] Website: www.julius-berger.com

Branches

Branch Area Head Tel

Julius Berger Lagos Nigeria

Shareholders

Shareholder Percentage Bilfinger SE 39.90 Watertown Energy Ltd 10.00 Ibile Holdings Ltd 5.50 Benue Investment & Property Company Ltd 5.20 Plateau Investment & Property Development Company Ltd 4.61

Management

Name Appointment Date Designation

Mr I Anugwu (Igwe Peter Nwokike) Independent Non-Executive Director

Dr E Azudialu-Obiejesi (Ernest Nnaemeka) Non-Executive Director

Mr AZI Bayi (Alhaji Zubairu Ibrahim) Executive Administration Director

Mr J Damulak (Jafaru) Non-Executive Director

Mr W Goetsch (Wolfgang) Executive Managing Director

Mr D Herron (David) Executive Operations Director

Dr M Imam (Mohammed Nuruddeen) Non-Executive Chairman

Mr W Kollermann (Wolfgang) Executive Financial Director

Ms CE Madueke (Cecilia Ekanem) Company Secretary

Mr G Marks (George) Non-Executive Director

Mr H Stockhausen (Heinz) Non-Executive Deputy Chairman

Mr H Tsumba (Harold Samuel) Non-Executive Director

Mr M Tubi (Macdonald Olarinde) Non-Executive Director

History of Business

Julius Berger Nigeria Plc was established in 1970 and listed on the Nigerian Stock Exchange in 1991.

Nature of Business

Julius Berger Nigeria Plc is involved in planning and construction civil engineering works. The company currently operates five subsidiaries in Nigeria. The company designs and builds administration, commercial and industrial buildings, hotels, hospitals, airport terminals, sports facilities and entire residential districts.

Nr. of Employees 18216

Access Bank Plc; Diamond Bank Plc; First Bank of Nigeria Plc; First City Monument Bank Plc; Guaranty Banks Trust Bank Plc; United Bank for Africa Plc; Zenith Bank Plc; Ecobank Nigeria Plc; Union Bank of Nigeria Plc

Auditors Akintola Williams Deloitte

Attorneys Femi Okunnu & Company

Turnover [2013] $ 1,330.10m (AR2013) (Naira 212,737.3m)

Estimated Profit $49.1m (Net)

Transfer Secretaries

Name Physical Address Postal Address Tel

Union Registrars Ltd

Corporate Risk Management in the Industry

Julius Berger's Integrated Risk Management System ensures proactive identification of risks and employs continued assessment and monitoring mechanisms to minimise negative impacts on the company's business. Identified risks which pose the most threat, both in terms of likelihood and consequence, to the company's business remain: market risk, financial and operational risk, legal risk, information security risk and environmental and reputational risk.

Brandnames

Julius Berger

Direct Subsidiaries, Associates & Investments

Company Name Percentage Abumet Nigeria Ltd 70.00 Julius Berger Investments Ltd 100.00 Julius Berger Medical Services Ltd 100.00 Julius Berger Services Nigeria Ltd 100.00 PrimeTech Design & Engineering Nigeria Ltd 100.00

LEE ENGINEERING & CONSTRUCTION COMPANY LTD Updated: 2014-05-22

Postal Address: Physical Address:

PO Box 9331, Ikeja 16B Allen Avenue, Ikeja Lagos, Nigeria Lagos, Nigeria

Tel: +234 1 820-9526 Fax.: +234 1 460-2578

Email: [email protected] / [email protected] Website: www.lee-engineering.net

Branches

Branch Area Head Tel

Lee Engineering & Construction Company Operations Base Nigeria +234 53 829-033

Shareholders

Shareholder Percentage Dr L Ikpea 100.00

Management

Name Appointment Date Designation

Dr LA Ikpea (Leemon A) Chief Executive Officer & Chairman

Ms A Ikpea (Augusta) Executive Director

Mr E Ikpea (Ehis) Non-Executive Director

Ms IG Ikpea (Ihinosen Gina) Non-Executive Director

Ms J Ikpea (Josephine) Non-Executive Director

Mr L Ikpea (Leemon (Jnr)) Non-Executive Director

Nature of Business

Lee Engineering & Construction Company Ltd is an engineering, procurement, construction, operations and maintenance company operating in the oil, gas and power generation sectors of the Nigerian economy.

Key Projects Include: • EPC of Ogbotobo Concrete Barge Flowstation Power System Revamp • Revamp of Opuama Flowstation • Operations and Maintenance of OML34 • Provision of Solar Industrial Gas Turbines Drivers and Packaging of GT-DDriven Cetrifugal Compressors for SSAGS Facilities • Utorogu Gas Plant Performance Improvement Works • Nembe Electrical Interdependency Power Project • Rehabilitation of Oil and Gas Facilities and Installation of Power Generation Facilities at Odidi Node • Supply of Sub-sea Composite Marine Cables for Forcados Yorki Integrated Project Flare Down Works • Ughelli East Asset Integrity and Brownfield Works • Okrika Jetties ‘A’ & ‘B’ Rehabilitation Project • West Africa Gas Pipeline (WAGP) Gas Supply Project • Internal Pipeline Network for Field Gas in PHRC • WRPC PPU Extruder Rehabilitation Project • Provision of Natural Gas Supply Pipe Line to Alsthom Gas Turbine Plant & All Heaters in WRPC • Amukpe Flowstation Upgrade – Installation of 2NOS Electric Export Pumps & Associated Works • Repairs of Boiler Four • Upgrade of SPDC Flowstations at Escravos, Saghara, Otmara and Opuama • Warri Jetty Bridge Restoration Works • Refurbishment of Sapele Gas Plant • WRPC Turn Around Maintenance Job (TAM) • Rehabilitation of FCC Unit in KRPC • Fabrication & Welding of 500 Km Pipeline (Phase III)

Brandnames

Lee

Direct Subsidiaries, Associates & Investments

Company Name Percentage Lee International Services SRL 100.00

PRODECO ENGINEERING LTD Updated: 2014-05-22

Postal Address: Physical Address:

25 Lagos-Abeokuta Expressway, By AP Filling Station 25 Lagos-Abeokuta Expressway, By AP Filling Station Cement Bus Stop, Ikeja, Lagos, Nigeria Cement Bus Stop, Ikeja, Lagos, Nigeria

Tel: +234 803 803-8751 / 855-7539 Fax.:

Email: [email protected] Website: www.prodecoengineering.com

Branches

Branch Area Head Tel

Prodeco Engineering Work Yard Nigeria +234 803 589-7559 / 708 763-5759

Management

Name Appointment Date Designation

Mr SOA Alabi (SOA) Executive Managing Director

Dr MA Alabi (MA) Manager

Mr AA Mshelbwala (A) Manager

Mr JO Olorunfemi (JO) Manager

Mr F Sanya (Femi) Manager

History of Business

Prodeco Engineering Ltd was registered with the Corporate Affairs Commission in June 2007 as a business venture. The company was established as a Limited Liability company in September 2011.

Nature of Business

Prodeco Engineering Ltd is an indigenous civil engineering and building construction company that designs and constructs buildings and ancillary structures, roads and bridges, provides project estimation and evaluation, management and monitoring of civil engineering projects, professional training, equipment leasing as well as production and sales of pre-cast concrete.

Brandnames

Prodeco

PW NIGERIA LTD Updated: 2014-05-23

Postal Address: Physical Address:

Plot 9, Outer Northern Expressway Plot 9, Outer Northern Expressway Maitama, Abuja, Nigeria Maitama, Abuja, Nigeria

Tel: +234 709 812-1450 Fax.:

Email: [email protected] Website: www.pwlimited.com

Shareholders

Shareholder Percentage PW Group 100.00

Management

Name Appointment Date Designation

Mr W Alli (William) Executive Managing Director

Mr M Brown (Michael) General Manager

Mr K Crocket (Kenneth) Financial Controller

Mr D Emmerson (David) Manager - Project Development

Mr D Flinn (Donal) Executive Director

Mr M O'Boyle (Martin) General Manager - Plant

Mr J O'Driscoll (Joe) Executive Operations Director

History of Business

PW Nigeria Ltd was established by Mr Flinn in 1974.

Nature of Business

PW Nigeria Ltd is involved in civil engineering, construction and mining. The company provides offshore services to the oil , gas and telecommunications industries from the company's marine base at Port Harcourt.

Projects include: • Lakeview Park • Jos Township Roads (Phase II) • Citiview Estate • Rehabilitation of Access Road to Ejigbo NNPC Depot • Tejuosho Olajuwon Rehabilitation • Reconstruction of Ilasa Pedestrian Bridge at Apapa / Oshodi Expressway • Access Road to Nigerian Law School • Construction of Road 4th Bridge Kaduna (Phase II) • Dualisation of Gada Biyu • Dualisation of Ibadan – Ilorin Road • NPA Apapa Quay Road • Kpantinapu Bridge at Mile 6 – Donga Road

Nr. of Employees 5000

Brandnames

PW Nigeria

REYNOLDS CONSTRUCTION COMPANY NIGERIA LTD Updated: 2014-05-23

Postal Address: Physical Address:

PO Box 5059, Wuse 28 Ebitu Ukiwe Street, Jabi District Abuja FCT, Nigeria Abuja FCT, Nigeria

Tel: +234 805 409-0165-7 / 706 417-1835-7 Fax.:

Email: [email protected] Website: www.rccnigeria.com

Branches

Branch Area Head Tel

Reynolds Construction Company Ibadan Nigeria +234 805 400-0048 / 706 405-4071

Reynolds Construction Company Lagos Nigeria +234 805 400-1201 / 703 411-1134

Shareholders

Shareholder Percentage SBI International Holdings AG 100.00

Management

Name Appointment Date Designation

Mr SO Fadahunsi (Samuel Olatunde) Non-Executive Chairman

Mr M Hefling (Moshe) Non-Executive Director

Mr M Nakhla (Moussa) 2011-10-00 Executive Managing Director

Mr AS Odeyemi (Adedayo Solomon) Non-Executive Director

Mr R Paluch (Rony) 2011-10-00 Non-Executive Director

History of Business

Reynolds Construction Company Nigeria Ltd was established in September 1969.

Nature of Business

Reynolds Construction Company Nigeria Ltd is involved in the construction of roads, water related construction projects, residential as well as non-residential buildings. The company also owns and operates stone quarries and asphalt plants.

Projects include: • Loko-Oweto Bridge & Approach Roads • Reconstruction of Umeze-Anam-Mmiata Road • Construction of Ilesha Dam & Water Supply Scheme (Phase I) • Construction of Chief G.U. Ake Bypass • Reconstruction of Benin Township Roads • Construction of Ibadan-Ilorin Road • Reconstruction Benin-Abraka Road (Phase I) • Rehabilitation of Ajebandele-Ofosu Section I • Rehabilitation of Asphalt Overlay of Benin-Ofosu Road • Dualisation of Abuja-Abaji Road (Section II) • Dualisation of East West Road (Section III) • Construction of National Library Headquarters Building at Abuja • Construction of Ile-Ife Dam & Water Supply Scheme (Phase 1) • Upgrading & Expansion of Ota Water Supply Scheme • Construction of Ilesa Dam & Headworks • Zobe Water Supply Project

Brandnames

Reynolds Construction Company, RCC

SAFKO CONSTRUCTION COMPANY NIGERIA LTD Updated: 2014-05-22

Postal Address: Physical Address:

SCCN House, Plot 184 Cadestral Zone A8 SCCN House, Plot 184 Cadestral Zone A8 Ademola Adetakunbo Wuse II, Abuja, Nigeria Ademola Adetakunbo Wuse II, Abuja, Nigeria

Tel: +234 9 461-0446 / 704 323-7493 Fax.:

Email: [email protected] Website: www.sccnigeria.com

Management

Name Appointment Date Designation

Mr HC Eneh (Henry C) General Manager

Ms PI Ikemefuna (Patience) Chief Financial Officer

Mr S Karaulan (Safet) Executive Managing Director

Prof J Kester (John) Executive Chairman & Chief Executive Officer

Nature of Business

Safko Construction Company Nigeria Ltd provides civil engineering services. The company plans as well as designs buildings, tank farms, office building facilities and commercial facilities in Nigeria. It is a member of the Real Estate Developers Association of Nigeria (REDAN).

Brandnames

SCCN

SETRACO NIGERIA LTD Updated: 2014-05-23

Postal Address: Physical Address:

PMB 105, Garki Plot 526 Setraco Building, Shehu Yar'Adua Way Abuja, Nigeria Kado District, Abuja, Nigeria,

Tel: +234 806 944-7441 / 222-5220 Fax.: +234 807 710-1775

Email: [email protected] Website: www.setraco.net

Shareholders

Shareholder Percentage Setraco International Holding Group 100.00

Management

Name Appointment Date Designation

Mr C Baron (Camille) Executive Financial Director

Dr R Chaudhuri (Ray) Executive Technical Director

Mr S Khalaf (Said) Chief Executive Officer

Mr F Khalaf (Fayez) Executive Managing Director

Mr G Libbos (Ghassan) Executive Director - Plant

Mr M Mastrocinque (Michelangelo) Executive Operations Director

Mr Z Mouannes (Ziad) Executive Corporate Affairs Director & Contracts

Mr AI Umoru (Abu Inu) Chairman

Mr AI Umoru (Afizu Inu) Non-Executive Director

History of Business

Setraco Nigeria Ltd was established in 1977.

Nature of Business

Setraco Nigeria Ltd is a civil engineering and construction company in Nigeria. The company specialises in the construction of roads as well as bridges.

Projects include: • Dualisation of East West Road • Dualisation of Kano-Maiduguri Road Section II • East West Road – Warri • Construction of Trans-Warri-Ode Itsekiri Road, Bridges & Spurs • Construction of Gbaregolor/Ogriabene Road • Construction of Ogbia-Nembe Road & Bridge • Sunrise Hills Estate at Kugbo District • Construction of Amassomo-Toru-Ebeni Bridge & Access Road • Construction of Ojobo-Tamidge-Bomadi Road • Construction of Aboto-Ok Free Trade Zone Road • Rehabilitation of Obiozara-Uburu-Ishiagu-Enugu/Port Harcourt Junction Road

Nr. of Employees 11000

Brandnames

Setraco

STEMCO LTD Updated: 2014-05-23

Postal Address: Physical Address:

16 Woji Road, GRA Phase II 16 Woji Road, GRA Phase II Port Harcourt, Rivers State, Nigeria Port Harcourt, Rivers State, Nigeria

Tel: +234 84 462-416 Fax.: +234 84 463-618

Email: [email protected] Website: www.stemco-nig.org

Management

Name Appointment Date Designation

Mr G Bitar (Gabriel) Executive Managing Director

History of Business

STEMCO Ltd was established on 4 July 1991.

Nature of Business

STEMCO Ltd provides engineering and construction services for both the public and private sectors, specialising in infrastructure and roads projects.

Cients include: • Exxon Mobil • Shell (SPDC) • Akwa Ibom State Government • River State Government • Federal Ministry of Transportation

Brandnames

STEMCO

TECHNOVA CONSTRUCTION NIGERIA LTD Updated: 2014-05-23

Postal Address: Physical Address:

Suite B17 Cherub Mall, Km 18 Lekki - EPE Expressway Suite B17 Cherub Mall, Km 18 Lekki - EPE Expressway Lekki Peninsula, Lagos, Nigeria Lekki Peninsula, Lagos, Nigeria

Tel: +234 709 810-9976 / 703-1512 Fax.:

Email: [email protected] Website: www.technovanigeria.com

Shareholders

Shareholder Percentage Technova Africa Group Ltd 100.00

Management

Name Appointment Date Designation

Mr N Oleah (Norbert) Executive Managing Director

Nature of Business

Technova Construction Nigeria Ltd is an indigenous civil engineering and building construction company. The company provides design and construction of roads, marine-related projects, residential and commercial buildings as well as sports and recreational facilities.

Projects include: • Over-Sight Visit to Technova Industrial Park (TIP) • Progress of Technova Line Pipe Mill & Coating Facility Project • Ground Breaking Ceremony of Technova Line Pipe Mill & Coating Facility in Edo State • Construction of a Model College Facility

Brandnames

Technova