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  • King of the Hill

    The Big Project Middle East
    December 30, 2013


    King of the Hill

    by Stephen White


    Raouf Ghali talks to Stephen White about running the international
    project management arm of Hill International

    Raouf Ghali has just stepped off the red-eye from New York and walked
    straight into an interview with Big Project ME at Hill International's
    London offices - a smart, charismatic and witty interviewee - if he's
    jet-lagged he's certainly not showing it.

    "How did I grow my career?" When asked. "I started my career, I say, a
    little bit on the wild side! I was completely crazy. I went into
    places that others didn't."

    The new countries that emerged after the collapse of the Soviet Union
    in the early 1990s were desperately short of infrastructure and
    desperate to modernise. However where most were daunted by the
    challenges incountries such as Georgia, Romania and Bulgaria
    presented, Ghali saw an opportunity.

    "When I went into the CIS and the Balkans in 1993/94 the
    infrastructure wasn't even there to do business," he says. "It put
    things into perspective. (Construction) can positively impact the
    economy; it creates jobs; even after completion it requires
    maintenance, operation, etc. Most of all, you've left something
    behind, a structure for better living or a production facility, etc."

    For Ghali, the country that arguably best typifies those early years
    was the one where it all began.

    "I started with Hill in Armenia, when Armenia was pretty much at war
    with Nagorno-Karabakh," he explains.

    The repercussions of the conflict over the Nagorna-Karabakh territory
    in southwestern Armenia are still being felt today, and the experience
    he picked up there continues to shape Ghali's approach to running the
    International Project Management arm of Hill, two decades down the
    line.

    "That was probably one of my best, key years. Difficult years, but I
    learned a lot and met a lot of people," says Ghali, who was
    responsible for project and financial control for procurement on the
    European Bank for Reconstruction and Development-funded 300MW thermal
    power plant in Hrasdan. "It went back to the basics. Relying on
    yourself - technology wasn't there, communication wasn't there."

    While the University of LaVerne Masters graduate was instrumental in
    preparing and issuing the international tendering procedures that
    helped to secure much-needed equipment at competitive prices for the
    fledgling Armenian government; helping to scale-up a country's power
    supply where it was in short supply wasn't without its challenges.

    "For a while we didn't have electricity," he recalls. "There was an
    average of three hours per day. We used whatever we could get our
    hands on! We got batteries to keep the computers running, but we got
    it done. We got through."

    As he oversees Hill International's operations beyond the US market
    almost two decades later, he is able to empathise with teams based in
    far-flung and remote locations. When talking about those currently
    helping to bring power and roads to Afghanistan, there is an
    appreciation of the efforts it takes to be effective.

    "Afghanistan is an extremely challenging place to be. I can understand
    the difficulties they are going through. I think it's much harsher
    than what we had to go through," he explains. "All these experiences
    over time add up to providing certain aspects where you can do your
    work much more efficiently."

    The last ten years has seen tremendous growth for Hill. For the past
    six years of that decade, Gahli has served as its president and he
    reveals that it is currently earning $300 million in turnover ("from
    consulting fees"), and employs a 2,800 strong workforce. The head
    office for the International Project Management arm of Hill is in
    Athens, it's a different and surprising location, considering the
    Western Europe/US-centric nature of most global consultancies. Ghali
    says that it is a consequence of its Balkan-centric growth.

    "If you look at where we operate, the Middle East is by far our
    largest region. Geographically we also have North Africa (a very
    important region for us). When you look on a map, Athens is right at
    the entrance to the Middle East," he remarks. "It's right across from
    North Africa (Cairo is at centre of our operations there). It's also
    at the heel of the Balkans."

    The Middle East contributes 40% to 50% of the Group's annual turnover
    with other markets growing in importance to complement Dubai and
    Qatar, where it first made its mark.

    "Now the driving force is really Abu Dhabi, Saudi Arabia, Oman and
    Qatar. Four points/markets that are very strong. And also very
    different. In the Kingdom, as an example, we're involved in
    healthcare, infrastructure (with our recent win in rail), and
    education facilities. In Qatar we are seeing more and more large
    projects in the infrastructure sector rather than the high-rise
    buildings we would traditionally see."

    Expanding on Qatar, he reviews the impact Hill International has had
    on the country.

    "We are quite involved in Qatar," he enthuses. "We went through a
    major development (stage) and now Qatar is upgrading the
    infrastructure. We are working on the Green Line of the Metro, the
    Qatar National Museum; and continue to have several private
    developments. There is still quite a lot of local private money being
    invested - and we are confident it is sustainable.

    "You cannot do all that development for just the FIFA tournament. Even
    with pre-trials and everything else it is only going to be a
    three-month period. It is the post-games period (which is the most
    important). Qatar has a plan of how they are going to sustain this
    expansion - they also need the infrastructure to go with it."

    Oman, often ignored by a UAE and Saudi-centric media, is another
    market that excites.

    "There's a lot of activity there: it's a totally different ball game.
    We are working on the airport, on hotel development; we've just been
    awarded a project to support the Minister of Defence and we're also
    participating on Oman rail," he reveals. "We're still in the
    evaluation stage but we're hoping that they will finalise it by the
    end of the year or the first quarter of 2014."

    Oman is a major component in the establishment of a Gulf-wide rail
    network but has slipped behind the efforts seen in Qatar (Q-Rail), the
    UAE (Etihad Rail) and Saudi Arabia with its investment in high speed
    inter-city rail.

    "Once we, or whomever else, gets on board, they will need to start
    looking at a realistic schedule," he says. "You can open certain
    segments of the rail (for instance), it does not have to be the entire
    corridor.

    "I think mass transport has been ignored for a very long time in the
    Middle East and the realisation that you need it to become sustainable
    as a country and an economy is starting to come. Mass transport never
    used to be a feasible profitable business. It requires volumes and
    there is no alternative for long-term viability and environmental
    constraints."

    This is especially true in newly created urbanised areas where fuel is
    still cheap. How do you sell it as a proposition?

    "Traffic. Time, convenience and environmental protection. If you are
    going to be travelling between one city to the other, and you have to
    go by air, you need to be there one hour before; you land at the
    airport; and it is usually way out of the city - and you have to drive
    back in. Whereas a train can take you from centre to centre. Look at
    Paris-London. Who would fly to Paris now from London?

    "We are building some of the great airports of this century, right
    now. There's Dubai, NDIA, Oman, etc. And you've got Midfield Terminal
    too. We are part of the CM team on that as well."

    When people see the word consultancy, they often imagine teams of desk
    jockeys, but you get the impression that, as an organisation, Hill
    International is much more than that.

    "We are very well engaged in managing activities on all stages," says
    Ghali. "It depends on what our scope is and this varies from client to
    client, from project to project. We can be involved in the master
    planning and the implementation. Sometimes we come in at a much later
    stage."

    While most of the global players in design and project and
    construction management that are active in the region are able to draw
    on expertise from teams based across their offices, Ghali has
    encouraged deeper involvement within Hill International. The company
    even runs its own peer review system which frequently sees teams
    drafted in from Europe to probe, analyse and advise on projects in the
    Middle East - and vice versa. This cross-fertilisation of ideas and
    practices is essential as Hill International strives to push the
    quality of execution upwards.

    "You're being reviewed and the next time you are reviewing somebody
    else. It not only keeps everybody on the edge but it is an efficient
    way of sharing knowledge amongst teams," he explains.

    "Take Latvia Library, for instance, and the Grand Egyptian Museum: two
    different worlds but yet there are a lot of things that are in common,
    the uniqueness of the building, for example. Latvia Library, for
    instance, is not just a library but they have put a lot of old
    artifacts such as old books, etc," he continues. "That means that you
    have to have climate control rooms (for example). It has to be
    user-friendly and well-engineered. Both are public buildings. Both
    have high security - and yet you have to allow free movement and flow
    for the guests. There are a lot of common similarities people would
    not always think about."

    The peer review meetings bring the top three people from two or three
    projects together with Ghali and the regional manager joining the
    meeting: "The team comes in and present the project status and the
    major challenges they are facing. Then, as a team, we explore ideas:
    have you tried this?, or, we had a similar problem and we found this
    solution worked."

    With full site visits frequently required and the removal of key
    personnel from projects essential, it would be understandable if the
    peer reviews placed drag to the pace of construction. Rather than
    stretching out the project management process, Ghali argues -
    convincingly - it has to be said that the reverse is often the case.

    "It speeds things up. You find out that the guy - and I use this only
    as an example - who handled the Qatar Museum is talking to the guy on
    the Egyptian Museum and asked whether he had a similar problem, do you
    know of somebody that can help? Yeah, I've got somebody on the team.
    Can you spare him for a ten days? Sure."

    Backing up the project teams is a technical core team for each region.
    Ghali describes them as the 'back-office'. They act as another level
    to Hill's quality control.

    "They shadow most of the difficult projects when they are in the early
    design stage. They have seen a lot of these projects and bring in a
    lot of lessons learned to the table," he says. "This is part of our
    service - we typically don't charge for it. It is also part of our own
    quality plans."

    Creating continuity and understanding between the teams has been an
    asset as the International PM Group has grown. He adds for any given
    country, Hill has now reached a size where it has enough staff from
    that country to form the nucleus of its project teams.

    "This is the starting point and then we start slowly recruiting. In
    Turkey, for example, we've probably got a good 60 to 80 Turks working
    for us. If we get a new project then I can transfer them back into
    Turkey with international experience and the "Hill culture".

    Hill's progress in the Middle East is notable for its two centre
    beginning. Straddling both Dubai and Doha, Ghali says that the move
    was a deliberate attempt to mitigate against risk. The company also
    started pushing into North Africa in 2006 just as every project
    manager and consultant with a passport descended on Dubai.

    "Never have your business be dependent on any one specific location or
    client," he says. "I always try to go where everybody else is not! In
    2006, everybody was flocking into Dubai and the UAE. We were there -
    and I thank my lucky stars we were - but that's when we made a strong
    push for North Africa. If everybody is going to one place, it is going
    to get crowded and you need to be thinking of going somewhere else. If
    you're in at the beginning you take a lot of the work initially but
    then you share. That's how the market moves."

    He adds: "We've been quite successful in spreading throughout the
    Middle East; very successful in spreading out in North Africa. We are
    present in all of the North African countries now with the exception
    of Tunisia where we are now looking at entering. We're doing very
    nicely in Algeria with great growth potential."

    He was told about Dubai's successful Expo 2020 bid as he was leaving
    New York. He believes the win is well deserved.

    "It's very, very exciting. I believe they already have infrastructure
    for it. Nothing was really moving until they secured bid, now it's
    going to be like the horse races where everybody starts (gestures to
    signify the start of the race). Look at what Dubai has done. The 2020
    win is a vote of confidence by the international community that the
    international markets still believe in Dubai. It has become a major
    city of the world over the last 15 years. They've done a great job so
    far, and I'm sure they will do a great job of this event."

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