A prominent player in various development projects in the interior and far-flung wilayats of the Sultanate, Hasan Juma Bakcer has significantly contributed to the inclusive growth and infrastructure development of the country in the last 35 years, says Krishnakumar Taori, Group Managing Director, in an interview with Muhammed Nafie.
Please give a brief on Hasan Juma Backer and its operation in Oman?
Hasan Juma Backer (HJB) started its operation in 1975. Over the last 35 years, the company has emerged as one of the leading civil electro-mechanical construction and project management companies in the country. We are working on various infrastructure projects and the major areas of our operations include buildings, roads, substations, pumping stations, instrumentation, fire fighting, sewage networks, industrial infrastructure projects, schools, colleges, hospitals and leisure and sports projects. HJB has provided civil, electro mechanical and construction services to a wide spectrum of clients including the Diwan of Royal Court, Royal Oman Police, Royal Guard of Oman, Public Establishment for Industrial Estates, Ministry of Defence and other ministries and important establishments in public and private sectors.
Can you give an overview of various projects that the company is executing presently?
We have been recently awarded a 190-villa project of over RO16mn by Muscat municipality in Yeti. This is one of the prestigious projects that we are currently executing. In addition, we are working on the extension of the ministry of foreign affairs building and doing various construction works for the Royal Guard of Oman and a number of water supply projects in Al Rustaq, Al Awabi and Al Musanah areas. Besides, our Qatar operation is very active at the moment. In Qatar we are working for Kahramaa as well as Qatar Petroleum. We have recently got some important projects from Qatar Petroleum.
Last year, we completed the infrastructure developments of the third, fourth, fifth and sixth phases of Sohar Industrial Estate which involve road works, electro-mechanical services, irrigation, fire-fighting, water supply and landscaping. In short, we have completed the entire facilities required for the companies such as aluminum smelting plant and various other industries to start operation. In 2010, we also did the civil works for helicopter facilities for the ministry of defence and water transmission project from Nizwa to Bahla, rehabilitation of Muttrah Internal roads (Muscat Restoration) and Mudaybi Internal roads in A'sharqiya Region.
What was the contribution of HJB to the economic growth and development of Oman in the last three and half decades?
Over the last 35 years, HJB has grown from a small company of 50 employees in 1975 to the strength of 3,500 employees in 2010. We have significant employment opportunities for Omanis and have contributed to the development of Oman. As a pioneer in infrastructure development in the country, HJB has executed various power, water, health, leisure and sports projects across the country. Our major civil electro-mechanical construction projects include land mark buildings of RGO, OmanGas, Oman LNG, State General Reserve Fund, College of Banking and Financial Services etc., hospitals such as Wadi Heibi, 100-bed extension to Jalan Bani Bu Ali hospital, university colleges and schools in Rustaq and Ibra, several buildings in Sultan Qaboos University and the ministry of education's schools.
HJB has executed various development projects and infrastructure facilities in the interior areas of the country. We have set up several water pumping stations and pipelines across the country. Our presence is ubiquitous in almost all interior and far-flung Wilayats of the country such as Musanna, Awabi, Rustaq, Wadi Bani Khalid, Nakhl, Buraimi and Khasab. To carry out our projects, we partnered mainly with local contractors and subcontractors from the respective areas so that we can generate a lot of employment opportunities for the nationals. A green card holder for Omanisation for many years, HJB continues to hold training programmes for its national work force. To cap it all, we have a strong base of the equipment and resources which ensure the quality, excellence and effectiveness of our projects.
With Vision 2020, the government is focusing on diversifying the economy. What is your contribution to this?
We have our own plans for diversification. We have already ventured into hospitality sector and are looking to execute various tourism related projects. We have also built schools, colleges and hospitals. Apart from the hospitals in Wadi Heibi and Jalan Bani Bu Ali , we have set up renal dialysis centres in Sohar and various interior areas such as Ibra, Ibri, Nizwa, Khasab, Buraimi and dialysis centre in Nizwa, Bahlah and other areas. Besides, we have set up nursing training schools in all the six regions for the ministry of health.
What are the major challenges facing the construction industry in the country?
There are different challenges in different areas. Manpower shortage and commodity prices are the two likely big challenges in 2011. The rise of borrowing cost from banks is another challenge that the construction industry is going to face. Increasing interest rate is a big challenge all over the world. The market is competitive because of new players, especially foreign companies. Registration procedures are very easy for foreign companies in Oman compared to other GCC countries. Omani companies will not get that easy access and similar treatment outside in other GCC countries.
What about your foreign operations?
HJB has gone international by taking up major water projects in Qatar with Qatar General Electricity and Water Cooperation after successfully completing a techno-commercial evaluation on its own strength against international companies. The company seeks to expand its presence in Doha. And with Qatar winning FIFA World Cup bid for 2022 and since the government is looking to do a lot of infrastructure projects in the country, we expect to play a bigger role.
A word about your civil and electro-mechanic divisions?
The civil division of HJB, which is also the traditional strength of the company, has expanded manifold over the past 30 years with several major works to its credit. The division is currently fully equipped to execute large-scale turn-key projects. The electro mechanical division of the company played an important role in executing projects in very far-flung areas and contributes its might to the universal electrification and drinking water distribution. We do all integrated works. We have electrical mechanical instrumentation and scada instrumentation technology which help us build mega pumping stations with 400-500 KW automatic motors.
The government is investing heavily in ports and free zones. What opportunities do you see there?
We will be definitely involved in all these expansion projects. We have tremendous experience in this area. We have been a seasoned player and have a big role to play in the development of infrastructure facilities for free zones across the country.
© Oman Economic Review 2011
