Construction & Real Estate
From The Report: Brunei Darussalam 2013
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Several years of strong investment, mainly driven by government initiatives to improve infrastructure and address a housing shortage, have boosted Brunei Darussalam’s construction industry. Major on-going projects include upgrades to the Brunei International Airport, as well as the construction of the Brunei Cancer Centre, the Prime Minister’s Office and several key roads and bridges. It is also likely that demand for the construction of homes, schools and hospitals that cater to the Sultanate’s growing population will remain strong in the years to come. If the Sultanate’s economic diversification project succeeds in attracting investments to the country, Brunei Darussalam will need modern and efficient policies and regulators oversee the development of its built environment.

This chapter contains an interview with Marcelino Ugarte, General Manager, Heidelberg Cement Asia.

Articles from this Chapter

Overview

Built environment: Public works are providing a stream of contracts, while reforms and economic diversification pave the way for further growth
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Several years of strong investment, mainly driven by government initiatives to improve infrastructure and address a housing shortage, have boosted Brunei Darussalam’s construction industry. Major ongoing projects include upgrades to the Brunei International Airport, as well as the construction of the Brunei Cancer Centre, the Prime Minister’s Office and several key roads and bridges. It is also likely that demand for the construction of homes, schools, and hospitals that cater to the Sultanate’s…

Analysis

In the works: Larger projects are opening doors for foreign firms
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The government of Brunei Darussalam has in recent years put a great deal of effort into planning new projects, keeping contractors’ interest with its willingness to spend significant sums. However, the construction sector has encountered a number of delays in both the planning and execution of its projects. The construction sector had a relatively strong year in 2012, though going forward the schedule for a number of major contracts in the pipeline – a possible data centre, the Temburong…

Analysis

Land permitting: New policies are easing the process of obtaining a permit
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Land for private construction for residential, commercial or industrial purposes is limited in Brunei Darussalam, creating some constraints for the construction industry. Only about 5% of the Sultanate’s land area is available for private acquisitions, and nearly 75% of this is used for agricultural purposes, according to a 2009 report by the ASEAN Valuers Association. Of the remaining quarter, 15% is for residential use and 8% for mixed residential and commercial, while commercial and industrial…

Interview

OBG talks to Marcelino Ugarte, General Manager, Heidelberg Cement Asia
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Interview: Marcelino Ugarte What effect do you expect new public housing developments and large infrastructure projects to have on the short-term demand for cement? MARCELINO UGARTE: In the past, cement demand in Brunei Darussalam reached a peak during the construction boom in 1996, when annual consumption was around 700,000 tonnes per year. Today, annual demand stands at about 430,000 tonnes. Nonetheless, we are prepared to support the type of increased demand that was apparent in the mid-1990s.…

Overview

Poised for growth: Diversification plans will present new opportunities
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For the past half-decade the real estate market in Brunei Darussalam has been dominated by massive government housing projects that cater to the unfulfilled residential demand in the Sultanate. According to the Ministry of Development, 17,500 units will be built by 2014, which should meet demand levels through 2012, and another 18,000 units are planned for completion by 2017. The scale of the National Housing Scheme underscores the dominance of public spending in the market, but sector figures…

Analysis

Sustainable developments: A master plan for redevelopment could bring significant changes to
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Plans unveiled in 2010 aim to transform Brunei Darussalam’s capital, Bandar Seri Begawan (BSB), from a sleepy riverside town to a modern city that serves as a centre for key service industries. Government officials laid the groundwork for the city’s evolution in 2007, when the sultan approved the expansion of the city from 1287 ha to 10,036 ha, incorporating the suburbs of Gadong, Kianggeh, Kilanas, Berakas A, Berakas B and Kota Batu into the municipality. Now the goal is to tie the sprawling…