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Infrastructure development “opens new doors of opportunity for everyone”

Interview - July 7, 2014
Having gained its place among the most reputable and powerful companies in Turkey, Kolin Group of Companies successfully conducts its activities in the construction-contracting, energy, port operation and mining and tourism-service sectors. Now a preferred business partner and reliable service provider in Africa, Mr. Bruhan Nassur – Director of Kolin Uganda, which where the group’s African operations are based – talks to United World.
BRUHAN NASSUR, DIRECTOR OF KOLIN CONSTRUCTION
BRUHAN NASSUR | DIRECTOR OF KOLIN CONSTRUCTION
Turkish-Ugandan business ties were formalized in 2010, and the presence of strong Turkish firms in the country, including Kolin Construction. What led you to join the company when you did?

It started with a lot of questions. Africa was just starting to become known to the international markets. At the same time, Turkey was looking for new external markets (particularly, construction companies). African countries were also looking for partners to develop their infrastructure. I was in the middle. I have lived and worked in Turkey for more than 30 years. On the other hand, I was born in Uganda. I began my journey here. As such, I felt it necessary to promote the Ugandan market.

We began to think of establishing a company that the government is part of. Added to that was the need to partner with a foreign company (or companies) that would give us knowhow and equipment. We would submit our tenders just like any other contractor, and see if the work is worth the money that they are getting.

I was told back then that the only company that fit this description, having known me since my university days, was Kolin Construction. My friend gave me the brochure, which I then brought with me when I talked with the authorities here. The feedback was positive. I went back and gave Kolin Construction-Turkey the full report. I returned to Uganda with KC-Turkey’s Board of Directors (BoD), and we talked with the authorities. The same thing happened in Kenya. After some discussions, Kolin Construction-Turkey decided to establish a footprint in East Africa (EA).

We established Kolin Construction Uganda as a brand in October 2010.

We understand that Kolin Construction was prequalified for 3 projects.

Yes, we were. We are on the 1st trial and we were prequalified for 3 projects, and we picked the 92-kilometer tarmac project along Hoima-Kaiso-Tonya Road in Hoima district.

The Ugandan office is the base of the firm in Africa, but it also has some projects in the likes of Ethiopia and Mozambique.

Yes, that is correct. We are following up those projects. In Ethiopia, it is a road project. We have already presented our prequalification documents. In Mozambique, we have already been prequalified for an American Embassy. We have also been prequalified to do a project in Zimbabwe.

We tried our chances in Djibouti for the construction of an American base. We already have contacts in Rwanda, Tanzania, and some in Kenya. We have yet to establish projects in these areas, but we are looking at them very closely.

The Company also has projects in Libya.

Yes, the company does have projects in Libya, but given the current situation there right now, everybody there is adapting a wait-and-see attitude.

You were also invited to establish UNRA because of the tenders.

We helped UNRA. My role was very significant. I made sure that my company understood why we were here—that we were not just coming as Kolin Construction, but that we were representing a whole country. Any work that we do, whether positive or negative, will affect the others that will follow. I think that Kolin Construction should be a champion of this effort.

Part of Kolin Construction’s philosophy is quality, and it is reflected by the work that it does. UNRA was satisfied.

To make UNRA even more comfortable, we held a stakeholders’ inspection prior to the opening of the road. All members of Parliament, the ministers, the people of UNRA, and so on, were invited to go and see what we were doing.

Kolin Construction is party to the development here—to UNRA, the people, and the like. We are going to do the work in such a way that it sets a benchmark that the rest could follow.
For instance, road life ranges from 15 to 20 years. A road can be made to stabilize at first operation. Then you have to upgrade it.

Africa's first stage of improvement involves the development of it infrastructure.

What can you tell us about the technology that your company uses?

Our company uses the latest technologies available. We try to uplift the standard of technology. We hail them from the likes of US and Germany. For instance, our asphalt plant is the first in Uganda to be completely computerized.

Did you face some challenges along the establishment and further development of the company in Uganda?

Yes, I am an engineer. We initially faced some challenges in approaching the government, the people and so on. They were skeptical about the number of expatriate staff that we had here. I had to make sure that the quality of our work was impeccable, and that we met the desired timelines. That was why we brought in more skilled personnel. As we move on, we are slowly phasing them out. We have successfully trained local manpower to take on the job of 50% of the work. We are working to increase this further. That way, if we do get another job, we can back it up with local manpower. After all, it would be to our advantage to do so (particularly, where cost is involved). The initial intention was to deliver a high quality job through highly proficient engineers. We were time-bound, and I had to impress the importance of this as part of the quality that we promised to deliver. It was a matter of introducing a new work culture. We had to bring in around 40 Mercedes trucks to do our job.

How many employees do you have?

Right now, we have close to 800 employees, 90% of whom are local.

UNRA is going to receive UShs1.9 trillion for the development of new roads, and UShs45 billion for road maintenance. What do you see happening? How many projects are you going to have?

There will be other participants. We are not going to get all the projects. We are just going to bite what we can chew. UNRA operates on the same vision.

Secondly, there is the Chinese factor. The prices that they are offering are incredibly low, and we could not do that at this time. We have fixed costs that we have to reflect through our prices.

The decision to choose is with UNRA. It is for them to decide if the value quality or a low pricing point. There are competitors who go too low. For instance, a road project for us would cost around UShs900,000 to UShs1 million per kilometer. Some competitors would go as low as UShs500,000 per kilometer. We cannot do that. UNRA knows our price, quality, technology, engineers and ability to meet deadlines. It is up to them.

Quality and timeliness are among your strongest points.

Yes, they are. Here in Uganda, I think Kolin Construction is the first to finish before the deadline. It is really up to employers to make a decision. We are ready.

UNRA’s transparency is highly commendable.

Yes, when we first started, no one knew us, but they gave us a chance to demonstrate what we could do. That was good. It was a fair competition. UNRA is pretty transparent when it comes to their processes.

This is Kolin Construction’s first step in this arena, having interests in other areas such as energy, building construction, and the like.

Yes, it is. About a month ago, we had a meeting with my Chairman and the President. They both agreed that there will be exchange and investment. There is a line of other areas that they can invest in. For instance, we are looking to go into cement production here. In the area of tourism, we want to build a hotel here. We are also looking into mining and energy.

These are long-term. We have already brought in the equipment and machinery (worth about $17 million—180 pieces of equipment that need to do some work).

The future looks bright for Kolin Construction

We are taking it one step at a time. It is the way you make it. You really have to show that you have the ability and the capability to enter into these projects.

As a player, you have to know what you can offer to be accepted. The future is there, but you have to know how you are going to present yourself.

Kolin Construction came to Uganda for more than one project. We have a long-term vision. We brought our own equipment to better face the challenges that we might encounter here. We have a 10-year plan. The first step is to be in the market. We have done that. We will take it from there.

What does Kolin Construction bring to Uganda?

You have the philosophy. They say that is the main thing because we work for a civilization.

Secondly, there is the quality and cost-effectiveness of our methods.

How would you comment on the importance of infrastructure?

I am an economist, by profession, and I want economic development. A country, to me, is an economy. The returns on infrastructure may not be immediate, but the fact that it is there should bring whatever you have together.

We need roads, energy, railway and the like. After all, agricultural produce has to reach the market. We also need to process this produce and add value. By doing that, we raise the bar for our people’s standard of living. This is one of the main reasons why Africa should open up in terms of negotiating with people. This will open up windows for so many. We can find out how the relationship is going to be. Focusing on infrastructure is the right way to go.

What message would you like to convey to the readers of USA Today?

Concentrate on the development of infrastructure and open new doors of opportunity for everyone.

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