Water Opportunities in Saudi Arabia

An Expert's View about Water Treatment in Saudi Arabia

Posted on: 29 Sep 2010

The Saudi Arabian Water sector needs an immediate investment of approx in order to meet the high consumption caused by rapid population and industrial growth.

Sector briefing Water Opportunities in Saudi Arabia Why Saudi Arabia? Saudi Arabia is located in one of the most arid areas of the world. It is listed under the ?absolute water scarcity? category (i.e. will not be able to meet its water needs by 2025) due to limited natural resources (average rainfall is less than 70mm/year). Sewage systems are a utility in short supply in Saudi Arabia, existing in only 22 of the 106 municipal areas countrywide. Saudi Arabia?s demand for water is growing rapidly. Many of the water and sewage treatment plants built in the late seventies are culture, potential opportunities and an nearing the end of their useful work life and introduction to other relevant issues. the growing population is making the capacity of these plants insufficient to meet demand. ?The Saudi Arabian Water Massive investments are needed to upgrade or replace the existing water desalination plants, sector needs an immediate water/wastewater treatment plants and investment of approx. US$ 17 potable/sewerage networks. More investment billion and over US$ 93 billion is needed to build new systems to meet the over the next 20 years in spiralling demand for drinking water and for sewage treatment. order to meet the high consumption caused by rapid Find general information on the Saudi Arabian population and industrial market conditions on UKTI?s website. The Doing Business Guide for Saudi Arabia gives an growth.? overview of Saudi Arabia?s economy, business UK Trade & Investment Sector briefing: Water opportunities in Saudi Arabia and be in line with international best Opportunities practices. The water and wastewater sector in Saudi ? To improve customer services. Arabia currently faces a number of key challenges: To achieve the above objectives, the Ministry of Water & Electricity chose a gradual approach ? Historically, certain utilities, particularly to reform of the water and wastewater sectors. wastewater, have suffered from years of under-investment. In addition, human A restructuring of the sector will also include resource capabilities require upgrading, water demand management initiatives, mainly in commercial and customer including a reduction in non-revenue water and services skills. the introduction of metering throughout the ? Current water supply tariffs are among the Kingdom. The reforms will also include serious lowest and production/transportation costs attempts to attract significant private capital among the highest in the world. for investments in capacity extensions and ? Average per capita consumption in Saudi other infrastructure improvements. Arabia is in excess of 280 litres per person per day. ? UFW (unaccounted-for water) ranges The further reform strategy for water between 30 and 55%, and leakage distribution and wastewater has four key between 30 to 50%. elements: ? Inadequate amount of basic information, ? The formation of the National Water e.g. leakage rates, metering performance, Company (recently formed). This will call state of water networks, infrastructure, for long-term unbundling of the sector etc. (corporatisation and commercialisation). ? At 3.8%, Saudi Arabia has one of the ? Public Private Partnerships: Two world?s fastest rates of population growth; management contracts have been awarded at least 50% of the current population is so far, one for Riyadh water to France's below the age of 15. Coupled with the Veolia Water AMI, and the second to a current rapid economic growth, water coalition of France's Suez Water and the demand in the country is rapidly increasing Arabic Company for Water Development & (by 6% annually). Energy Ltd in Jeddah for the development, ? Total potable water supply is approx. 5.72 management and maintenance of the million cubic metres per day, whilst the water and sewage sector in Jeddah, in current requirement is over 6.5 million addition to developing customer service cubic metres per day. departments and minimizing leakage). ? Government investments to improve sector performance and to make the sector more Reform process: attractive to the private sector. In order to deal with these challenges, the ? Regulation (first based on contracts, later Government has embarked on a process of based on the introduction of classic reform and has defined a vision for the future economic regulation). that would enable the country to have a world class utility system. In addition, a five year Strategic Transformation Plan (STP) was put in place. The Government?s overall key objectives for The plan identifies the process to prepare and the reform are: implement transition from operation of the ? To supply clean and high quality potable water and wastewater services to preparation water for all residents. of long-term concession contracts after ? To provide sanitation connectivity to all implementation of the 5-year management households. contracts. ? To provide the safe disposal of wastewater. ? To provide reasonably priced water and sanitation services, which will also help in Specific Business Opportunities: cost of recovery and improved services. Saudi Arabia?s current state spending ? To conserve the country?s natural water (2009/10) includes SR 30 billion (US$ 8 billion) resources and protect the environment. for new water, sewage and desalination ? To radically streamline and improve water projects. The following are some other specific sector performance, operational efficiency business opportunities in the Saudi Arabian water sector: UK Trade & Investment Sector briefing: Water opportunities in Saudi Arabia ? Construction of desalination plants. Thuwal & ? Construction of treatment plants and Qatheemah. desalination of well water. Wajh 3 20,000 Al-Wajh & Al-Ola. ? Laying conveyance pipelines. Khafji 3 30,000 Al-Khafji & ? Water distribution networks. Nuairiah. ? Wastewater networks. ? Wastewater treatment plants. Yanbu 3 400,000 Madinah & Yanbu. ? Developing strategic reservoirs and Jubail 4 450,000 Riyadh emergency distribution systems. Jubail 5 100,000 Sudair, Washim & Qassim. Business Opportunities (Desalination Shuaibah 4 450,000 Makkah, Taif & sector): The board of directors of Saline Water Jeddah. Conversion Corporation (SWCC) decided to Baha 182,000 Baha, Baljurashi, convert SWCC into a holding company in order Al-Mandag, Al- to privatise the organisation, with separate Mukhwah, Fulwah production and transmission subsidiaries. The privatisation option that SWCC selected calls & Al-Sarat. for converting the organisation to a holding Tabuk 113,636 Tabuk company first, and then introducing private        sector participation (PSP) in the production Other Business Opportunities: subsidiaries following the IWPP model (i) Investors and Operators (Independent Water & Power Project). ? Development and operation of BOT schemes for potable and wastewater The beginning of the introduction of treatment. partnership contracts with the private sector ? Network optimisation including: operations could begin in late 2011 (according to SWCC?s and management, particularly leakage Director of Privatisation). Revenues will be control and metering and billing. secured through long-term contractual ? SCADA control. arrangements with the off-taker. The unbundling process will open up SWCC?s (ii) Service Providers existing network of more than 30 seawater ? National groundwater survey. desalination facilities on the Red Sea and the ? Engineering and design consultancy for Arabian Gulf coasts to the private sector. new desalination plants. Investors are likely to be invited to acquire the ? Advice on PSP models and regulation. existing plants and expand them on a build- ? Advice on financing of projects. operate basis. The long water pipeline transmission networks will remain under state (iii) Equipment Supply and Manufacturers control through SWCC, but possibly may be ? All types of machinery and solutions for opened up to private investment in future. wastewater treatment. ? Brine water control. SWCC has stated that investments of about ? Reverse osmosis technology and solutions. US$ 16 billion will be needed, by 2020, to meet ? Pumping technology and equipment. water demand at the current per capita consumption rate. SWCC has identified the If you have any questions on the opportunities following desalination plants as upcoming above, contact the UKTI contacts named in this projects: report. Business opportunities aimed specifically at UK companies are added daily to Project Capacity in Cities served UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High cubic m/day Commissions and Consulates, across all sectors Shuqaiq 2 106,000 Asir province and in over 100 markets. Ras Al-Zour 1 million Riyadh You can be alerted to business opportunities on Jubail 3 340,000 Eastern Province a regular basis by registering on the UKTI cities. website. Find out more on UKTI?s business Rabigh 2 22,000 Rabigh, Mastorah, opportunities service on the UKTI website UK Trade & Investment Sector briefing: Water opportunities in Saudi Arabia Major events and activities UKTI contacts Saudi Water Technology Omar Saeed [www.recexpo.com] Trade & Investment Officer Contact: Mr Khalid Daou British Consulate-General, Jeddah Email: sales@recexpo.com Tel: 00966 (0) 2 622 5550 ext. 2205 Time: 23?26 May 2010 Email: omar.saeed@fco.gov.uk www.ukti.gov.uk Saudi Water & Power Forum [www.ksawpf.com] Saad Al-Adhami Contact: Shunker Goel Trade & Investment Officer Email: sgoel@thecwcgroup.com British Embassy, Riyadh Time: 3-6 Oct 2010 Tel: 00966 (0) 1 488 0088 ext. 2257 Email: saad.aladhami@fco.gov.uk UKTI Environment/Water Seminar www.ukti.gov.uk Mission to Saudi Arabia [www.uktradeinvest.gov.uk] Sharif Moussa Contact: Mr Omar Saeed Trade & Investment Officer Email: omar.saeed@fco.gov.uk British Trade Office, Al-Khobar Time: 14-20 January 2011 Tel: 00966 (3) 882 5300 Email: sharif.moussa@fco.gov.uk Find full details of all events in this www.ukti.gov.uk country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis. UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events. UK Trade & Investment Sector briefing: Water opportunities in Saudi Arabia Next steps - How UKTI can help British companies wishing to develop their business in the Saudi Arabian market are advised to undertake as much market research and planning as possible in the UK. UKTI?s team in Saudi Arabia, with its wide local knowledge and experience, can provide a range of services to British-based companies wishing to grow their business in global markets. This can include: ? Provision of market information ? Validated lists of agents/distributors ? Key market players or potential customers in the Saudi market ? Establishment of interest of such contacts in working with you ? Arranging appointments ? Organise seminars or other events for you to meet contacts and promote your company in the Saudi market This work is available via our Overseas Market Introduction Service (OMIS) a chargeable service which assists British-based companies wishing to enter or expand their business in overseas markets. To find out more about commissioning this work, or accessing other UKTI services and specialist advice, please visit the UKTI website to find contact details for your local UKTI office. Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Water opportunities in Saudi Arabia
Posted: 29 September 2010

See more from Water Treatment in Saudi Arabia

Expert Views    
Water sector   By UK Trade & Investment
Water Opportunities in Saudi Arabia   By UK Trade & Investment
Environment Opportunities in Saudi Arabia   By UK Trade & Investment
Hot Tips    
Water Resources Equipment in Saudi Arabia   By U.S. Commercial Service Poland