AYLA OASIS PROJECT CONSTRUCTION

Project Management for Practice
Ayla Oasis Construction Project
Faris H. Salous
Masters of Science Project Management
Birmingham School of Engineering and Manufacturing Systems

6
• PESTLE Analysis
7
• Conclusion

A middle point between four
countries. (3)
Aqaba is considered as a safe
destination for the Middle East
people. (7)
Aqaba is the largest city on the
Gulf of Aqaba & one of the major
tourist attraction in Jordan, famous
for warm water and various marine
life. (2)

 Aqaba was chosen as the Arab Tourism City of 2011. (12)
 Its strategic location at the junction of 4 countries made Aqaba
trading routes between Asia and Africa since 4000BC. (33)

To create the gate to all tourist
areas in order to extend the
length of stay of tourists in
Jordan
- To increase the waterfront line
from 235 meters into 17 KMs
- To make a synergise with all of the
world heritage sites in Jordan
reference(3,5)

To decrease the unemployment number by providing more job
opportunities especially during construction period, the
operational stages of the Project and after the project finishes.
(15)
To transfer new skills to the Jordanian workforce. (15)
To support Aqaba into a leading tourist destination within the
next few years (3,9)
 To support the use of sustainable climate resilience
technologies in the built environment. (9,15)

This section was made by group members using PRINCE2

•By applying the main themes of
- Business Case:
1. The short length of stay of tourists.
2. The shortage of waterfront areas in Aqaba.
3. The needing for a safe stable destination for
the people of gulf and middle east
Project Management Method
Reference: (33,15)

Reference: Team Work
AYLA OASIS
DEVELOPMENT
COMPANY (AODC)
Arab Supply and
Trading company
(ASTRA)
Ayla Consultancy and
Project Management
(ACPM)
ContractorsContractors
Sub-Contractors

ASTRA: Arab Supply and Trading company, Saudi company,
considered as a sponsor for Ayla Oasis development (15)
Ayla Oasis Development Company (AODC): considered as the
owner of the project and generally controls the process of
construction through a project management company (ACPM).
ACPM (Ayla Consultancy & Project Management) : providing
consultancy and management services. ACPM is appointed as
Project Managers of Ayla Oasis Project.
There are a set of contractors that actually working on-site,
the main contractor for the infrastructure was the huge Italian
contracting company called Condotte.
Group Analysis

PRIME & SUB-CONTRACTING
COMPANY POSITION SCOPE OF WORKS
PRIME
CONTRACTOR
2008-2014
-MARINE WORKS Expanding 235 metre
shoreline into 17 KMs waterline
-the construction of artificial lagoons,
hotels, apartments & villas, a golf course
and harbour facilities.
(27,28)
CONSULTANT 2008 - present
- Site investigation and geotechnical
evaluation. Engineering Studies company
-Geophysical surveys, field and laboratory
testing, piezometer installation
-materials testing and quality control.
(12)
SUB- CONTRACTOR 2013 - present
- Architecture, Interior-Design&Landscape
(2013 – Current)
(26)

DESIGNER
In Progress
-Design Consultant and supporting
Architect for residential apartments & for
the Ayla Marina Village & Hotel
(29)
CONSULTANT
January 2013
-Design and consultant for the
maintenance operations building and for
the Beach on the Golf Course
(31)
SUB-
CONTRACTOR
2008
-Geosynthetic Reinforced Soil (GRS) system
for construction of lagoon areas. (32)
CONSULTANT October 2008
Architects & Designers of Ayla Oasis
Village. (32)

MAIN CONTRACTOR 2014-present
Ayla oasis Beach
Club 10, skeleton works and finishing.
(36)
MAIN CONTRACTOR
2015-present
Finishing works for Hyatt Regency
Hotel.
)38(
MAIN CONTRACTOR
2012-present
Ayla Island Apartments, skeleton works
and finishing, MEP works.
)37(
SUB- CONTRACTOR 2012-present
Marina Dry Stag, skeleton works and
Finishing & Building construction and
electromechanical works
)30(

 The Total Estimated Cost : US$ 1.4 billion (3,15)
 The development of construction will be carried out by three
main phases:
1.The First Phase:
Time: started at 2008 and estimated to finish by 2017.
Cost : US$ 250M (3,15)
2.The continuous project phases (the second and the third
phase)
Time: started at the end of 2017 (14)
 In 2017 while the owners and tourists start
to use the project, the second phase will
initiate with a continuous construction
process.
 by finishing the third phase the
development will cover 43km2
of residential
and commercial space. (3)

AODAOD
ACPMACPM
CONTRACTORS
SUB-
CONTRACTORS
CONSULTANTSCONSULTANTS
Reference: team work
(ASEZA)

A GLOBAL DESCRIPTION OF AYLA OASIS
PROJECT
Initiated through a private-public partnership between the
Aqaba Special Economic Zone Authority (ASEZA) and ASTRA
GROUP. (35,15)
with the ultimate goal : regenerating and repositioning
Aqaba into a primary tourist destination on the Red Sea. (3)

Arab Supply and Trading Company (ASTRA), as the
investors, has signed OASIS agreement with Aqaba Special
Economic Zone Authority (ASEZA). (35,39)
Involving a world-class leading constructor, Italy
Condette, and other local contructors. (28)
All plans of Ayla Project must be acknowledged by ASTRA
and must comply with ASEZA regulation. (35)
Additional References (3, 4)

Transforming a 235-meter shoreline into 17 KM of new
waterfront with 750,000 SQM of series of man made
lagoons (3,8)
Building up 1,500 hotel rooms in 5 hotels (6)
Building up 3,000 residential units (6)
Setting up 20,000 SQM of commercial retail and food and
beverage outlets
A 18-hole championship world-class golf course designed
by Greg Norman, one of the world’s leading golf course
designers (3), (6)
Marina Village with first aid services/clinics (3)
Implementing system to allow individuals with special
needs to access (5)

Aqaba Special Economic Zone Authority (ASEZA) was
established in February 2001 under to transform Aqaba
into a world class Red Sea business centre and tourist
destination.
The project must comply with ASEZA Environmental
Protection Regulation and Environmental Commissioner
regarding waste management, use of sea water, and
emission of harmful substances to the environment
Reference (35)

• The first phase will be operating 2017
• Setting up management to market and promote Ayla
• Expanding a sustainable Ayla project.
Reference: (3,1,15)

 Setting up the world-class golf course designed by Greg
Norman, one of the world’s leading golf course designers with
a 40-year experience in golf which greatly enhance the position
on the global golf tourism map. (24,45)
setting up water conservancy and creates power through solar
panels on the golf course. (15,23)
 Install solar panel on infrastructure works (3)

 Sea water quality is monitored and recorded on regular basis
and waste water from the development is treated by the
municipal waste water treatment plant. Construction impacts
are also monitored. (4)

Reference (3,24)
Reference (13)

 More than four thousands job opportunities will be created through Ayla
Oasis that will contribute to the sustainable development of the Jordanian
economy. The project is expected to help decreasing the unemployment
percentage in Jordan.
Figure shows the trend of unemployment percentage in Jordan. The
number fluctuates showing averaged 12.59 percent from 2007 until
2015.
Actual Previous Highest Lowest Dates Unit
13.80 % 11.90 % 14.30 % 10.80 % 2007 - 2015 percent
Reference (18,19,46)

Tourism plays vital importance that contributes more than USD 800 million to Jordan’s
economy and approximately 10 percent of the country’s gross domestic product (GDP)”.
Between 2004 and 2007, the total number of people employed in the tourism sector
rose 50% from 23,544 to 35,484. (National Tourism Strategy 2004-2010).
The figure shows the steadily increasing GDP in Jordan. Ayla Oasis project (aimed as
business and tourism hub) is expected to give positive implication to Jordan Financial
condition by creating more job and reducing poverty rate
Reference (10,48)

The figure of World Bank shows a significantly increasing
trend in tourism in Jordan.
 Ayla Oasis project (aimed as a world business and
tourism hub) is expected to double tourism revenues
and to support economic growth in Jordan
Reference (17,48)

Ayla Oasis is believed to be able
to turn Aqaba into the world
business hub. The graph shows
the growth in cargo volumes at
Jordan’s Aqaba port over the
past decade.
Ayla Oasis project contribute to turn Aqaba into a major business and
tourism hub that is capable to attract global logistic companies such as
APM Terminals and Agility to invest in logistics that may enable to
double the cargo volume investing in Aqaba
Reference (40)

ASEZA Environmental Policies:
 The water policy:
the protection and management of groundwater resources &
waste-water on Ayla Project can be renewable at a certain
rate to waste less water and be environmental friendly.
 The energy conservation policy:
promotes the provision of adequate energy to consumers
at the least possible level
The impact: the project will cost less money to do the daily
construction.
Reference (20,21)

Discriminatory National laws in Jordan:
 Positive impact: The refugees from other middle-east
countries get less salaries. Therefore, for the project, it can
employ those refugees by paying less money and get same
labour force , rather than paying salaries for locals.
Negative impact: The refugees who are employed by the
project may have some social problems, such as no
accommodation, lack of food, crime and so on. Therefore,
if the project employ those refugees, it will take risk.
References (20,21,22)

1. A unique world-class golf course in Ayla Oasis designed by Greg
Norman (international golf designer) to attract international
golfers of all standards and all nationalities , which greatly
enhance Ayla position on the global golf tourism map
2. Low tax rate applied by ASEZA to attract international investors
Reference: (3,44)

Reference: (46)
3. The graphic shows a decreasing trend the corruption
index in Jordan from 57% in 2005 into 49% in 2014. It
gives positive impact on Ayla Oasis to attract more
international investors to invest

ELEMENTS OF SUCCESS & LACK OF IT IDENTIFIED.
SUCCESS ELEMENTS IDENTIFIED: (3)
The location is very ideal and strategic between 4 countries on
the Red Sea.
It has status as Special Economic Zone of Jordan.
The economic growth in Aqaba is higher than the average
economic growth in Jordan.
Ayla Oasis is an efficient and sustainable projects.
It has a financially strong reputable sponsor, ASTRA. (39)
LACK ELEMENTS IDENTIFIED:
No further actions implied telling about the second and third
phases.
References (3,15,39)

SWOTSWOT
AnalysisAnalysis
Oppurtunity
Threats
Strengths
Weakness

Strengths Weaknesses
 Qualified designers & architects
 Short planned Lead time
 Strong financial funding by
sponsors
 Royal and governmental
support
High distribution cost
 High dependency on foreign
suppliers
 High raw materials cost
The absence of well defined
recovery plan.
Reference (49)

Opportunities Threats
 Strategic location, by the Red Sea,
meeting point of 4 countries
(Jordan, Palestine, Saudi Arabia,
Egypt)
 Stable Environment compared to
other countries in the region
 Growing rate of population
 Increase in infrastructure and real
estate development
 Tourism rate is increasing
 Financial crisis reduced the cash
flow.
 Unstable fuel price on shipping
and production cost.
 Conflicts happens in other
countries, unstable political
situation.
 Mega projects that are under
construction; Marketing challenge
and value.
Reference (49)

Political To emphasize Jordan’s location as a
stable safe destination for tourism
Economical Develop the tourism industry in
Jordan as the main factor in the
growth of national economy
Social vocational training programs and
upgrade labours to accommodate the
requirements of labour market
changes.
Technological Solar power can be used with 3.2MW
renewable energy project.
To make it the largest renewable
energy project in the region, total
capacity of phases reach up to 5.8MW.
Legal Comply with ASEZA laws and
regulations.
Environmental Effective Environmental management
plan.
Investment in solar energy power
plant.

The Aqaba taskforce was created and equipped to transform Aqaba
into a world class Red Sea business location and tourism destination
for the economic growth of Jordan
The area was named Aqaba Special Economic Zone (ASEZ) with an
empowered Authority known as (ASEZA) with regulatory,
administrative, fiscal and economic responsibilities. (5)
Recently and since 2001 Aqaba is authorized by a Jordanian special
economic zone (ASEZ), It is a duty free multi sectoral free tax
development zone that holds the 27 Kms Jordanian coastline and
covering an area of 375 square kilometers.
The special zone offers a strong investment opportunities especially
in the tourism and logistics services, to increase the development
activities in Aqaba and Jordan in general.
Reference (5,15)

Stable environment in Jordan compared to other countries in
the region
Benefit from the migration from other countries due to
regional conflicts.
Signing multi-trade agreements including accession to WTO,
Arab free trade, Euro med partnership, as well as Arab special
economic zone.
Reference (15,22)

Government budget increased by 10 % each year, it will cause the
economic growth in Jordan. Therefore, the project can enhance
the growth.
Unemployment rate stay 14 %. In order to decrease the
unemployment, the project will give opportunity to employ the
labour force.
Inflation rate goes up by 2% each year.
The project has no financial problems and has increased its
capital from JD200 million to JD250 million
Reference (13,15,22)

Tourism is a prime component of the Jordanian economy. A
project is proposed to develop the tourism industry in Jordan
as the main factor in the growth of national economy. (1,15)
The economic growth in Aqaba is higher than the average
economic growth in the country. And Aqaba economy is based
on the tourism and port industry sectors. (3)
Infrastructures are part of Ayla project to support an
advanced tourism industry and create new job opportunities.
(3,15)

Jordan is a diverse community. There are many different ethnic
groups living in this small country; it has been a mixing pot of
cultures for millennia.
Syrian refugee problem: Government agreed that they allow
120,000 refugee , but it will more than that about 700,000 refugee.
So that it cause problem with lack of food , service and
infrastructure
It has been developing vocational training programs and upgrade
labours to accommodate the requirements of labour market
changes.
Reference (15,22)

• By using solar power, the project will be environment friendly. (3,45)
• Ayla project has connected a 3,2MW solar power plant to the
national electricity grid, which can have one of the largest private
renewable energy projects in this region. (4,23)
• Sea water quality has been monitored and recorded on regular basis.
However, for the waste water, it can be used by waste water plant.
(15)
Reference (3, 4,15,45)

• Solar power can be used with 3.2MV renewable energy project.
• The power has been used to operate the seawater pumping station
that feeds a chain of lagoons at Ayla’s project in Aqaba.
• The man-made lagoons have covered the area of 750,000 m^2, and
added 17km of new water frontage to Aqaba. Also it has increased
the 52 percent waterline.
• It costs JD60,000 (USD 84,620)per year by using electronic power to
irrigate the golf court. So that in order to minimise the cost , the
project use solar power.
• To make it the largest renewable energy project in the region, we
use total capacity of two phases reach up to 5.8MW.
Reference (15)

• A specific environment plan has been used to make sure the
development of the Environmental Management Plan. (3,10)
• One of the world largest golf court will be built in Ayla project ,
which has 18 holes. Greg Norman , one of the most respected golf
court designer said that. (3,44)

RISKS RISK MANAGEMENT
what Aqaba offers currently is
very limited
creating 17 kilometres of new
seafront from a 250-metre strip on
the Gulf of Aqaba by creating a
new bay
tourists do not stay long enough to
spend money that makes a
difference to businesses and the
local community
Arab Spring (revolutionary
movements in Tunisia, Egypt,
Libya, Yamen), Jordan lost 25% in
tourism market in 2011.
Investment at Aqaba is an example
not only for the region but also for
many cities around the world
which would benefit from
improved land use planning.
Reference (3,10)

 There is a massive
projects that are
currently under
construction at Aqaba
(competitors) are
considered a major
challenge and can puts a
question on all of these
tourism projects and the
sudden increase in hotel
rooms; It is planned that
Ayla will provide Aqaba
with a 1,550 room
hotels whereas Saraya
Al Aqaba (competitors)
will also increases the
hotel rooms by 1,200.
 Good marketing strategies; the key is
developing a marketing strategy that forms
a solid foundation for promotional efforts.
Implementing promotional activities such as
advertising, one to one sale and
international marketing especially for gulf
countries.
 pricing policy; 1. Recognize the factors that
affect price strategy. 2. Identify marketing
objectives related to pricing. 3. Describe
the components that go into making price
strategy decisions. 4. Apply formulas used in
setting prices. 5. List considerations for
updating price strategy.
Reference (10,48)

Financial crisis and region
instability reduce the
cash flow.
 Starting earning revenues from the
completed phases, i.e marina village
apartments and golf course academy
 Strong financial capabilities for
shareholders with a strategical support
from ASEZA.
Reference (10, 18,19)

• Ayla oasis Project has a strong impact on
the Jordanian Economy and considered as
one of the “Achievable” projects in the
country.
• There are a list of advantages and
disadvantages of applying Prince2

Advantages Disadvantages
1. Save time: Standardize;
mature methodology
2. Save money: easy to use
3. Good quality: controlled
changes; can make
improvement
4. Effective communication
1. Does not have many
specialists
2. Does not address the
leadership and people
management skill
3. It presents a large overheard,
and thus cannot be applied in
small projects.
4. It is a hard methodology to
adopt.
Reference: (25)

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