Consolidated Contractors Group (CCC) is one of the leading contractors in the international construction field. The company operates in more than 34 countries throughout the middle east and Africa, the Caribbean, CIS countries, Australia, and Papua New Guinea, with over 35,000 employees composed of more than 60 nationalities. Some samples of the major projects executed by CCC include Riyadh Metro, Princess Nourah Bint Abdulrahman University in Saudi Arabia, Dubai Mall & Dubai Opera in UAE,in addition to Boroug Ethylene Cracker.
The company adopts flexibility in its business model, and this relies on the country it operates in. CCC has a diversified portfolio in all sectors, starting with feasibility studies, into design, procurement, construction, commissioning, operations and maintenance as well as project development. The company participated in implementing industrial plants, high-quality buildings, highways and roads, heavy civil construction for power plants, and oil and gas pipelines.
In this regard, Invest-Gate sits with Mohamed Tarek, the Area Managing Director of North Africa for CCC, to highlight the company’s ongoing projects and latest investments, shedding light on the company’s biggest achievements in the energy sector.
Following the company’s strategy, what new focal points will CCC incorporate into its strategy going forward?
Each country has its own privileges. In Egypt, we implemented an 8,400 MW- plant in the power sector. During COP27, we will inaugurate the Zafrana Solar Power Plant project. We have implemented a huge number of power plants, especially power generation, in Egypt over the past 20 years when compared to other countries. Since CCC started operating in Egypt, the company was keen on implementing high-quality buildings, and now it has the largest market share when it comes to high-quality and high-end buildings, five-stars hotels, and retail projects. This variety in projects led to the current huge market share.
What are the company’s latest partnerships?
CCC believes in the importance of having partnerships. They strengthen our presence in the market and support our partners. CCC has partnered with Hassan Allam for more than 20 years, and both cooperated in implementing energy projects. Nowadays, CCC and Hassan Allam have projects in New Alamein, the extension of CFC and Village A, H9 project in Marassi. Further, CCC partnered with Atrium Quality Contractors (AQC) to implement the Four-Season Hotel Madinaty. The company has also joined a joint venture with Badr El Din for construction for Arkan Plam. In addition, CCC had a partnership with Germany’s Belectric to build and operate a 50 MW photovoltaic (PV) solar plant in Zafarana. Having various partnerships and being a participant in the market is something good, and we have good relations with all our partners. Having partnerships helps in exchanging experiences and resources, and leads us to have a deep understanding of the market’s mechanisms.
What are the company’s expansion plans for the coming period? And what is the expected investment value?
Away from all challenges in the market, CCC has an expansion plan following its vision. The value of CCC’s contracts under construction is around $1 bn. CCC has a good backlog in Egypt. The company also has an expansion plan in different sectors, meeting the market’s needs, as it has a pool of expertise across the world in all sectors.
What are the company’s biggest achievements in the energy sector?
CCC has many achievements in the energy sector, as it has established an 8,400 MW- plant in the power sector. In 2002, the company implemented Cairo North Power Plant 1 with a capacity of 750 MW, followed by Cairo North Power Plant 2 with the same capacity. Then, the company executed Nubaria Power Plant 1&2 with a capacity of 1,500 MW, followed by Nubaria Power Plant 3 with a capacity of 750 MW. Later, the company implemented other energy projects in Giza, Ain Sokhna, South Helwan, and West Cairo. The majority of these projects have been implemented in collaboration with Hassan Allam. Now, Zafarana plant, funded by KfW Development Bank, started its performance test, and will be inaugurated during COP 27.
What are the challenges facing the company during the running economic crisis and high inflation rates?
CCC is facing the same challenges as most companies in the construction sector, as the company has ongoing contracts with both the private and public sectors. The current situation shows uncertainty. Each project deals differently with the running crises according to its needed criteria. We went through a similar crisis in 2016, as contractors suffered high inflation rates, an increase in imported materials, and high tariffs, in addition to a change in the value-added tax (VAT). The company has managed to overcome all these challenges and succeeded in delivering projects as agreed with clients. In this regard, companies must have internal management systems and know how systems to have real numbers for each project, separately.
Coinciding with COP27, what are the company’s efforts to keep sustainability in its projects?
I believe that CCC is one of the companies where sustainability is not a brand, but a culture. This comes due to our presence in several countries across the world. Dealing with the concepts of going green and efficiency is not a luxury anymore. The company’s chairman is one of the members at the World Economic Forum’s Construction Committee. Part of our vision is to decarbonize our projects. CCC is also the region’s first company implementing a green hydrogen project in NEOM, and the first to sign a blue ammonia deal in Qatar, Qafco 7. It is worth mentioning the company does support green initiatives. I think that we are the only company operating with solar power in working sites. Our offices are operated by solar power.
How can the legal and regulatory framework be updated to assist contractors’ companies?
Egypt has witnessed a huge construction renaissance over the past seven year. Also, companies operating in Egypt saw growth over the same period. This growth represents an opportunity and a challenge at the same time. Now, Egyptian companies are executing mega projects, including tunnels under Suez Canal, metro, and ports with the highest global standards. As regards competitiveness, Egyptian companies should expand their footprints globally. This could need political support, and I think that this goes with the state’s vision. If Egyptian contractors managed to maintain their market share, growth, and competitiveness outside Egypt, the market will witness a huge renaissance in terms of workforce, building materials, and revenues. This could be achieved by offering contractors more facilities and political support. This, in turn, will boost other economic sectors.