Interview with Jesús Sancho Middle East director, ACCIONA Infrastructure

How has ACCIONA evolved in the region during that time?

ACCIONA has been consolidating its presence in the Middle East during this period and has won contracts and opened permanent offices in five of the six countries belonging to the Gulf Cooperation Council (GCC): the United Arab Emirates (UAE), Saudi Arabia, Oman, Qatar and Kuwait. Now we have decided to establish a platform for our expansion in the Middle East in Dubai in the UAE.

We have succeeded in becoming a benchmark in areas such as reverse osmosis (RO) desalination and the operation and maintenance of water treatment plants, but we also have a presence and good prospects in other business areas. ACCIONA Service is established in Qatar with several Facility Management contracts for schools, hospitals, embassies and hotels, although its aim is to grow in the region as a whole. In Oman, for example, it already has its first services contract, for the Salalah Airport passenger terminal.  ACCIONA Producciones  y Diseño (APD) has obtained various contracts in the UAE, Qatar, Oman and Kuwait. ACCIONA Construction is currently building a desali nation facility at Fujairah and is analyzing important opportunities such as the Dubai metro, railways in Qatar and Oman, and  Bahrain Airpor.

What is the economic outlook for the region?

Although it’s true the present price of crude could affect GCC development plans, its six countries are in a process of economic expansion, infrastructure building and privatization of operation and maintenance and service activities, which means lots of opportunities for a group like AC CIONA. While the GCC is in a strong and stable region, we must study the specific characteristics of each project and client with respect to the local legal, fiscal and financial framework. It is also essential to select local and international partners carefully.

The Middle East is receptive to privatizing services in which ACCIONA specializes

What challenges does ACCIONA face when it is building and managing infrastructure in such an environment? 

Los países del CCG tienen un ritmo de crecimiento económico del 4-5% al año y un elevado crecimiento de población. Esto debe ir acompañado de todo tipo de nuevas infraestructuras, sobre todo de las relativas  a los sectores del agua, el transporte, la sanidad, la vivienda, los  servicios y la generación de energía, tanto renovable como convencional. Todos estos sectores encajan con el negocio troncal  de ACCIONA. La situación económica  derivada de la bajada del precio del petróleo podría favorecer los concursos en formato de colaboraciones público-privadas, en las que ACCIONA cuenta con una experiencia y trayectoria muy valiosa a través de ACCIONA Concesiones.

En estos momentos el CCG está inmerso en una política de construcción de ferrocarriles y metros, modernización y construcción de aeropuertos y plantas de generación sin precedentes. También se observa una receptividad clara hacia la privatización  de los servicios en los que ACCIONA es especialista.

¿A qué retos se enfrenta ACCIONA a la hora de construir y gestionar infraestructuras en este contexto?

As with any other region, it is essential to know and understand the religious and cultural customs of Middle Eastern countries, since these define the way of doing business and working. There are many competitors here, but the specialization and experience of ACCIONA is enough to overcome the competition, particularly when projects are tendered out in a Design and Construction format. With the short deadlines, it is increasingly important to have the capacity to mobilize equipment and resources quickly and flexibly. How a project starts is often the key to success, which is why from Dubai we are able to offer the support needed for an efficient and effective transition between the development of a project and its execution.

PROFILE

• Jesús Sancho Carrascosa is an aeronautical engineering graduate from Madrid Technical University (UPM) with an Executive MBA from IESE Business School. He is currently Middle East director for ACCIONA Infrastructure.
• He began his career in the aeronautical and airport infrastructure sector. His involvement in tender processes for water facilities spans 15 years and he has managed the growth of several companies in the sector..
• Jesús has been responsible for developing for ACCIONA Agua large water and seawater desalination projects in the Middle East for the past five years. He has been head of ACCIONA Infrastructure in the region for two years.