Nakheel says current work on Waterfront project on schedule

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The current areas under construction on NakheelNakheel's Waterfront will stay on schedule to fulfil the obligations made to customers, said its managing director.

"We are going ahead with everything that is already under construction since we have an obligation to our customers who we have pre-sold to," said Matt Joyce in an exclusive interview with Emirates Business.

"We have to deliver our promise. We are currently focusing on all activity between Sheikh Zayed Road and the ocean. The rest of the construction is on but not of built form."

Dubai Waterfront is the world's largest waterfront development and, when completed, will be twice the size of Hong Kong island.

The offshore component is made up of seven man-made islands. The site has Abu Dhabi to the west and Dubai to the east and is located close to the Jebel Ali Port, Dubai World Central Airport and the Jebel Ali Free Zone.

Reclamation work on the development began in July 2006 when Belgium's Jan de Nul was awarded the $1 billion to $1.5bn (Dh3.6bn to Dh5.5bn)) dredging package.

The project size is about 14,000 hectares, said Joyce.

Flooding in the Palm Cove Canal, the first of four waterways at Waterfront, began in April this year.

"Construction is currently going on at the Madinat Al Arab, Boulevard Park, Canal District, Veneto and Badrah.

Veneto East is under construction but the date for the launch of Veneto West is yet undecided," said Joyce.

Phase Four and Five of the master plan design is almost complete and will go into construction phase. Phase Six is in the digital engineering design stage. While reclamation on the first island closest to the project is complete, the rest range between 20 to eight per cent in terms of completion. Phase Seven is in the construction plan stage, said Joyce.

He said the Omran component is a success story since it hosts the workers' accommodation. "The lost time on the project has gone down drastically with recreation facilities and three beds per room," he said.

The master plan has had minimal revisions in the past 18 months he added.

"The construction plan locks in with the demographic mix and urban economics of the place based on social engineering. This leads to the actual land use and end master plan," said Joyce.

"We are slowing down projects based on demands since we are adjusting to the external environment. A smart developer understands the market and adjusts to the market.

"If the market is strong, we might bring Phase Six forward. If the market is weak, then we hold off.

"We don't want to spend money on construction unless we take all the primary risks first. We don't want a margin squeeze," he said. Badrah is the affordable housing component within the project with 2,000 units and is under construction, he said. It is not yet finalised whether the project will go ahead with district cooling.

"Some say it is great and some say it is not. We are analysing it under the context of the project," he said.

The environmental impact of the project, especially, due to its proximity to The Palm Jebel Ali, is an issue that has been addressed, he said.

"NakheelNakheel has its own environmental teams. A 700 metres long reef has been created and even before starting construction, coral has started to fasten to the rocks and small fish have started coming now," he said.

Water flow studies are also being conducted to understand the flushing aspects within the project.

Joyce said the company has undertaken hydraulic modelling, which is tested over a long period, to ensure the flushing regime does not damage the marine environment. Each island in the development is separated to allow natural flushing to occur. Currently, NakheelNakheel, Mouchel and GESolar have undertaken a joint venture to study solar power's feasibility on a large scale. A solar panel has been installed outside the Nakheel Waterfront Design Office and will be monitored for the effects of weather, global radiation and lack of panel maintenance. With the region's strong exposure to the sun, solar energy could provide heat, lighting, mechanical and electrical power, with solar panels providing shade.

The Waterfront comprises canals and artificial islands and when complete will consist of a series of zones with mixed-use including commercial, residential, resort and amenity areas.

The entire project is set to take from 20 years to 25 years to complete.

By Sona Nambiar

© Emirates Business 24/7 2008