International Water Companies Look to Tap Saudi Arabia

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International Water Companies Look to Tap Saudi Arabia

07 Jul 2010

International Water Companies Look to Tap KSA The MENA region is experiencing phenomenal demand for waste water solutions, according to a recent forum held at Singapore International Water Week.

Panellists at the MENA Business Forum held on 28 June to 2 July, agreed the entire MENA region is experiencing phenomenal demand for waste water reuse and recycling facilities – Saudi Arabia was highlighted as the market showing the most potential.

The forum bought together policymakers, industry leaders, experts and practitioners to address the issue of adequate water supply and management across the MENA region. In addition, model cities and innovative water solutions that enhance economic value while addressing environmental challenges, were presented during the session.

According to Mr Syed Amir Basha, senior vice president at water and environmental company Moya Bushnak, Saudi Arabia has the biggest market potential for reuse water facilities because it has the land capacity and the willingness to invest in these projects at a country level. However, he said governments also need to get more involved in encouraging people and industry to use recycled water.

Paddy Padmanathan, CEO of ACWA Power International, explained that the breakneck pace of economic development and population growth in the MENA has exacerbated the region’s existing problems of water scarcity and wastewater disposal. In response, many countries are embracing reform. Governments are increasingly turning to the private sector to meet their needs, leading to an abundance of business opportunities, particularly in Saudi Arabia.

Mr Montazar Muhalhal, executive director of the Corporate Strategy & Planning Division at the government-owned National Water Company, Saudi Arabia, discussed plans to reduce the volume of water and revenues lost to leakage. In Riyadh about 60 percent of the city’s valuable water supply is lost through leakage in the 10,000km of pipes that transport water to the city’s 4.5 million population. National Water Company hopes to reduce that to a more sustainable 20 percent.

Singapore companies are among the top international players pioneering water projects within the GCC markets. According to Mr Sam Ong, Dy Group CEO, Hyflux Limited, it is Singapore’s integrated solutions approach to water management that is proving most successful.

“We are finding that our GCC clients want us to invest in the project, build it, then manage and operate the plant with a guarantee of planned efficiencies. This is the Hyflux business model so we are a good match for what the market needs.”

With governments acutely aware of the water challenges they face, privatisation of water infrastructure is increasing. All cities in the MENA region have embraced public private partnerships and projects are gaining pace.

Other Singapore companies actively pursuing water projects in the GCC include Sembcorp who announced during SIWW a Memorandum of Understanding (MOU) with the Abu Dhabi Water and Electricity Authority (ADWEA) in the UAE to develop and build a new seawater reverse osmosis facility with potable water production capacity of around 30 million imperial gallons per day (MIGD). The company already has water and power interests in Fujairah and Salalah in Oman.

Salcon, a subsidiary of Boustead, a leading global specialist in water and wastewater engineering announced last week it has been awarded a AED55 million contract to design, engineer and construct a new water recycling plant for the enhanced treatment of treated sewage effluent in Abu Dhabi. The contract for Al Wathba Enhanced Treated Sewage Effluent Treatment Plant was awarded by Abu Dhabi Sewerage Services Company.

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Source: Cityscape Intelligence