Construction sector promotes ‘green development’

With political stability, Sri Lanka has pursued a policy of vigorous industrial and economic growth. Emerging now is an island that is being reshaped through the use of its natural bounty and undertaking of major construction activity to drive its economic engine of development.

It would serve the country well, if the concepts of sustainability and green architecture are made the underlying pillars for construction projects under way in major cities, during the initial phase itself. It is not as if ‘green’ is a novel concept for the country. The Sri Lanka chapter of the Green Building Council has been in place since 2009 and uses the LEED and ‘Green SL’ rating systems.

There are a few green projects in Sri Lanka and some projects are under construction.

Some of them are:

* The Brandix green factory in Seeduwa, was one of the first in the apparel sector worldwide to receive a platinum rating from the Leadership in Energy and Environmental Design (LEED) rating system and one of the first in the world to obtain an ISO 50001 certification for its energy management.

The factory has become a benchmark and an international award winner for eco-friendly manufacturing and commitment to environmental best practices.

* The Logistics Park is a state-of-the-art, iconic green warehouse on Avissawella Road, Orugodawatte, and has approximately 100,000 sq ft of space. The total investment on the warehouse is Rs. 600 million.

* Dynasty in Kandy, a luxury apartment complex, is five minutes from the Kandy–Colombo Expressway. It is the first apartment project in Sri Lanka to be built under the LEED rating system.

* Iceland Business Centre is a new commercial building in Colombo 3 which is also LEED certified and has won a Platinum award. It has scored high on sustainability, water efficiency and energy consumption categories.

* The Hirdaramani factory in Vavuniya has obtained LEED Gold Certification. This is the third LEED certified factory of the group. Their ongoing commitment to ‘green’ is further strengthened while existing facilities are converted to eco-friendly factories as well.

* MAS Intimates - Thurulie, the ‘iconic’ eco-manufacturing facility of MAS Holdings was awarded LEED (Platinum) certification by the US Green Building Council and verified by the Green Building Certification Institute (GBCI).

Built under the patronage of Marks & Spencer’s Plan A eco-initiative, MAS Intimates - Thurulie was one of the world’s first purpose-built green factories for apparel manufacturing.

The advantages of green buildings in terms of cost savings for occupiers and developers have been well-documented.

Cost benefit analysis

For developer. Running cost of green building goes down by 40% * Building attractiveness goes up. Green buildings generally fetches 5% - 10% rental premium. * Life of building increases if the development is sustainable.

Construction Cost: Green buildings need an additional 20% as capital expenditure initially.

Energy savings

For occupier. Common area maintenance charges in green buildings go down by 40%. * Substantial savings on water and electricity consumption.

Efficiency

Employee productivity * Optimal cooling control, improved indoor air quality, efficient lighting and HVAC system compared to conventional buildings.

Survey carried out by JLL India. Source: Sri Lanka Energy Managers Association (2010 data)

The concerns regarding green buildings being ‘expensive’ compared to conventional buildings have been dispelled as the operational savings over the project lifecycle far outweigh the costs. Economies of scale for such projects enable the cost differential for ‘green buildings’ to also reduce gradually.

While imbibing green architecture and energy efficient processes results in a better work environment and employee productivity, the conservation of nature also remains a key concern which can be mitigated to an extent by using green techniques for the ‘built’ environment.

Way forward

As a developing country, construction activity across different asset classes and infrastructure development will be accompanied by some amount of environmental degradation and increased carbon emissions. Hence, the bottom-up approach of sustainable architecture has to be combined with the energy efficiency parameters to achieve truly green buildings.

A host of global corporate firms have committed to future real estate growth in green projects. An increased focus by commercial developers in this direction will definitely enable more corporate expansion within the country.

Sri Lanka has started on the right path by evolving a local rating system along with LEED. This will allow for a gradual learning and maintenance of green buildings on a bigger scale. As techniques and practices become more industry-intensive, Sri Lanka will grow while maintaining a harmonious balance with the environment.

A regulatory framework which can make certain elements of resource conservation and optimum use mandatory for a certain scale of projects will go a long way in creating a robust form of self-governance and new industry practices.

As the country takes its first steps towards energy-efficient green buildings, it can apply learnings of other countries and do it right in development of real estate. If the right construction practices are adopted, the green development rate could grow multi-fold in the coming years – boding well for Sri Lanka.

The writer, Ms. Gagan Singhis is the Chairperson of Jones Lang LaSalle, Sri Lanka.