11 January 2010

Nigeria: FG Abandons Planned 52-Storey Skyscaper in Abuja

In 2006, the then minister of Culture and Tourism, Mr. Frank Ogbuewu disclosed that the Federal Government had concluded plans to build a 52-storey building at the heart of the nation's cultural village in Garki, Abuja.

The minister further explained that the edifice when completed would be used among other things as a cultural heritage, tourist centre, business and entertainment focal point.

Further findings at the ministry headquarters revealed that the project may not have been captured in any year's budget in the first instance till date. Many of the staff of the ministry who responded to Daily Champion's enquires on the proposed heritage high-rise claimed little or no knowledge of the project.

The abandoned project, it would be recalled was conceived by the ministry and considered by the Federal Executive Council in 2006, barely two years after the conception and resumption of construction activities on the recently delivered Burj Khalifa skyscrapers in Dubai.

Recently, Dubai based developers, Emaar Properties unveiled the world's tallest skyscraper in the city of Dubai for business after renaming the gleaming glass-and-metal tower from Burj Dubai to Khalifa in respect to the leader of neighbouring Abu Dhabi, the oil-rich sheikdom who came to its rescue during the financial meltdown that nearly rocked the delivery of the 828 meters of 2717 feet tall.

The building now assumes the position of the world's tallest building after its nearest rival, the Taipei 101 in Taiwan.

Even as international finance observers argue that Dubai opened the tower in the midst of a deep financial crisis, indications emerged that its oil rich neighbor Abu Dhabi has pumped billions of dollars in bailout funds into the emirate as it struggles to pay its debts.

Sheik Khalifa bin Zayed Al Nahyan is the ruler of Abu Dhabi and serves as the president of the United Arab Emirates, the federation of seven small emirates, including Dubai and Abu Dhabi.

Already, analysts have questioned what Dubai might need to offer in exchange for the financial support it has received from Abu Dhabi, which controls nearly all of the UAE's oil wealth. Abu Dhabi provided direct and indirect injections totaling $25 billion last year as Dubai's debt problems deepened.

Dubai's hereditary ruler, Sheik Mohammed bin Rashid Al Maktoum, in recent months has increasingly underscored the close relationship between the two emirates. Sheik Mohammed serves as vice president and prime minister of the UAE federation.

The developer of the newly opened tower said it cost about $1.5 billion to build the tapering metal-and-glass spire billed as a "vertical city" of luxury apartments and offices. It boasts four swimming pools, a private library and a hotel designed by Giorgio Armani.

Observers are confident that the safety of the tower, which is more than twice the height of New York's Empire State Building's roof is guaranteed.

Greg Sang, Emaar's director of projects, said the Burj has "refuge floors" at 25 to 30 story intervals that are more fire resistant and have separate air supplies in case of emergency. And its reinforced concrete structure, he said, makes it stronger than steel-frame skyscrapers. "It's a lot more robust," he said. "A plane won't be able to slice through the Burj like it did through the steel columns of the World Trade Center."

Dubai was little more than a sleepy fishing village a generation ago but it boomed into the Middle East's commercial hub over the past two decades on the back of business-friendly trading policies, relative security, and vast amounts of overseas investment.

Then property prices in parts of sheikdom collapsed by nearly half over the past year. Now Dubai is mired in debt and many buildings sit largely empty, an offshoot of overbuilding during a property bubble that has since burst.

Despite the past year of hardships, the tower's developer and other officials were in a festive mood, trying to bring the world's focus on Dubai's future potential rather than past mistakes.

"Crises come and go. And cities move on," Mohammed Alabbar, chairman of the tower's developer Emaar Properties, told reporters before the inauguration. Alabbar noted that "You have to move on", arguing that "if you stop taking decisions, you stop growing."

Dubai, which has little oil of its own, observers say relied on cheap loans to pump up its international clout during the frenzied boom years. But like many overextended homeowners, the emirate and its state-backed companies borrowed too heavily and then struggled to keep up with payments as the financial crisis intensified and credit markets froze up.

Meanwhile, speculators who had fueled Dubai's property bubble disappeared along with the easy money, revealing a glut of brand-new but empty homes and crippling many of the emirate's property developers

The sheikdom shocked global markets late last year when it unexpectedly announced plans to reorganize its main state-run conglomerate Dubai World and sought new terms in repaying some $26 billion in debt.

It got some succor from a $10 billion bailout provided by its richer neighbor and UAE capital Abu Dhabi last month. That was on top of $15 billion in emergency funds provided by Abu Dhabi-based financiers earlier in 2009.

Burj developer, Emaar Properties is itself partly owned by the Dubai government, but is not part of struggling Dubai World, which has investments ranging from Dubai's manmade islands and seaports to luxury retailer Barneys New York and the oceanliner Queen Elizabeth 2.

Emaar's Alabbar said the landmark Burj is 90 percent sold in a mix of residential units, offices and other space, offering a counterpoint to Dubai's financial woes. According to design specifications, there are gift shops at the base and the top.

The building boasts the most stories and highest occupied floor of any building in the world, and ranks as the world's tallest structure, beating out a television mast in North Dakota.

"We weren't sure how high we could go," said Bill Baker, the building's structural engineer, who is in Dubai for the inauguration. "It was kind of an exploration ... A learning experience"

Baker, of Chicago-based architecture and engineering firm Skidmore, Owings & Merrill, said early designs for the Burj had it edging out the world's previous record-holder, the Taipei 101, by about 33 feet (10 meters). The Taiwan tower rises 1,667 feet (508 meters).

Work on Burj Dubai began in 2004 and moved ahead rapidly. At times, new floors were being added almost every three days, reflecting Dubai's raging push to reshape itself into a cosmopolitan urban giant packed with skyscrapers.

During the busiest construction periods, some 12,000 workers labored at the tower each day, according to Emaar. Low-wage migrant workers from the Indian subcontinent provided much of the muscle for the Burj and many of Dubai's other building projects.

The tower is more than 50 stories higher than Chicago's Willis Tower, the tallest building in the U.S. formerly known as the Sears Tower.

At their peak, some apartments in the Burj were selling for more than $1,900 per square foot, though they now can go for less than half of the figure, said Heather Wipperman Amiji, chief executive of Dubai real estate consultancy, Investment Boutique.

She said some buyers may struggle to find tenants at going rates once the tower's expected high service charges are factored in. "The investment community is quite divided," she said. "They're not sure how it's going to play out."

The Burj is the centerpiece of a 500-acre development that officials hope will become a new central residential and commercial district in the sprawling and often disconnected city. It is flanked by dozens of smaller but brand-new skyscrapers and the Middle East's largest shopping mall.

An observation deck on the 124th floor opened to the public a day after the unveiling, with adult tickets starting at 100 dirhams, or just over $27 apiece. The ride to the top took just over a minute during a visit for select international journalists shortly before the opening penultimate Monday.

Dubai landmarks like the sail-shaped Burj al-Arab hotel and the manmade Palm Jumeirah Island were visible through the haze.

The Burj itself cast a sundial-like shadow over low-rise houses and empty sand-covered lots stretching toward the azure Persian Gulf waters. Ahead sprawling debt crisis, Dubai is still open for business.

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