CLARK CONSTRUCTION - GHANA EXPANSION PROJECT

CLARK CONSTRUCTION - GHANA EXPANSION PROJECT 2016

PROJECT SELECTION

Why this project?

Clark background – role as Construction Manager

Goal – maximize planned year-over-year growth

Primary Clients – US/Ghanaian Government and private corporations

Adaptation strategy

Maplecroft Index - Political Risk, Freedoms and Social Gains

Social gains

Polit

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GHANA

WHY GHANA NOW?

Language – English speaking country

Stable democracy – since 1992 there have been six peaceful presidential transitions

International Interest – Ghana’s approval of a $600MM EXIM loan from the United States to help upgrade its infrastructure

Law – Ghana has a legal structure that upholds its contracts

WHY GHANA NOW?

Growing Economy – expected to grow 6%

Construction Sector of Total GDP – currently at 12.8% and expected to grow to 14% by 2017

Growth Factor Causes – discovery of oil which is driving an increase in private investments and infrastructure throughout the country

Recently publicized infrastructure challenges that has made infrastructure and construction a politically charged issue

FINANCE

Cost to Start – initial cash outlay $150,000 USD

Tax Rate – corporate tax rate at 25%

Currency Fluctuation – mitigate against currency fluctuations

Pay – expatriates paid in USD and obtain contracts in USD

Banking System – Government requires offshore and local accounts

Our Key To Success Will Be A Deep Cultural Understanding

COUNTRY CULTURE

Former British colony – advanced pre-colonial society (Akan ethnic group)

Collectivism – communal-oriented society

Matrilineal Heritage – role of women in society and business

Compulsory Educational System – highest enrollment rate of children in Africa (95%) | University enrollment capacity of 300,000 spots

Human Relations – harmony and respect amongst ethnic groups| Result: educated and cooperative workforce

CORPORATE CULTURE

Age & Hierarchy – Modify Clark’s young leadership approach (25-32 years old) to accommodate Ghana’s preference for management 40+ years of age

Safety – Clark’s primary core value | Example: OSHA strong US workforce enforcement vs. minimal enforcement in Ghana

Safety Costs & Benefits – Increased cost for Ghana (but less than US) | Opportunity to raise country standards and provide a lasting impact

Foreign Corrupt Practices Act – appoint a Construction Manager to oversee the hiring of consultants for all arms-length business dealings

COMMUNICATION

Indirect communication – Clark Project Leads must encourage and elicit feedback

Relationship building – on ground 12-24 months in advance of project start

Honorific / Professional Titles – management titles carry significant weight and must be carefully considered

Never use the left hand

Never embarrass or show disrespect

“Feree Ne Animguasee Dee Fanyinam Owuo”

Benevolent country, attentive and hospitable native populationWestern conveniences (e.g. sports, food, etc.)

Established Expat Community

Health Benefits – healthcare provided to both Ghanaians and expatriates

CONSIDERATIONS

Energy crisis— Provide generators

LIVING ENVIRONMENT

International Interest – US policy interest (example of EXIM loan)Similar Legal System – contracts are enforcedConstruction Sector of Total GDP – currently at 12.8% and expected to grow to 14% by 2017Understanding of the cultural elements that are critical for success

Potential of helping “…cement Ghana’s position as one of the most dynamic economies in (the) sub-Saharan Africa.”

WHY GHANA NOW?

Thank you!

ME DA SE | THANK YOU