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Water Technology

British firms offer expertise

Lila Thompson, British Water’s international director, looks at the water challenges facing the Gulf and how British specialists can play a role in developing the region’s industry.

01 September 2010

THE GCC is already one of the most water-stressed regions of the world. High per capita water consumption and rapid population and GDP (gross domestic product) growth coupled with industrialisation further exacerbate the problem. The GCC states are currently looking at these issues and exploring how to develop a more efficient agricultural sector (which currently uses more than 80 per cent of water resources) and desalination techniques.

Water reuse is at present an untapped area which will become increasingly important as energy efficiency and water scarcity rise up the agenda.
According to a Frost and Sullivan recent presentation, the global key drivers for development are public health, increasing water quality standards, affordable solutions for rising global populations, and the need to adopt low-carbon technologies, which are not dissimilar to those in the GCC.
These drivers open the way for debate, the sharing of best practice and technology transfer as countries seek to balance increasing demand with finite resources. The challenges highlighted, therefore, pave the way for business partnerships and open up opportunities for international collaboration, which can be seen from the increasing number of international conferences and exhibitions on water and power in the GCC.
There are several opportunities in the region across all sectors:
• In agriculture, there is a growing demand for water-irrigation systems that are more efficient and suited to local conditions.
• In desalination, there is a need to reduce currently high, mainly energy-driven
operating costs – and for more energy-efficient solutions.
• For water conservation and increased water reuse, there is a need for reuse technologies and pipes, pumps and valves for new infrastructure, and for more resistant and durable membranes.
• Also there is an interdependency of the energy and water sectors, so there is scope to explore more ways to limit energy-use in wastewater treatment.
The Gulf region is undertaking large water and wastewater infrastructure projects while reforming policies and ministries in order to address all these issues.

Saudi Arabia
It is predicted that Saudi Arabia will not be able to meet its water supply needs by 2025. Only 45 per cent of the urban population has access to a sewerage system and it is estimated that over £10 billion ($15.5 billion) of investment is needed, over the next 20 years, in sewerage systems and wastewater treatment.
Saudi Arabia’s water sector is, therefore, undergoing reform. The Ministry of Water and Electricity is currently privatising the provision of wastewater treatment services within particular regions, and some water supply management contracts have been awarded for Riyadh (Veolia), Jeddah (Suez) and Makkah and Taif. These services in the cities of Dammam/Al Khobar, Madinah and other regions will be privatised in 2011, whilst those in nine other smaller towns will be privatised in 2012.
With this in mind, many local consultants and contractors are seeking to work with international companies who can provide contractual, legal and other services. Providers of technologies and products are also being sought for significant refurbishment and extension projects as well as new projects that will be implemented.
The National Water Company (NWC), which is responsible for the privatisation of the urban water and sewage sector in the kingdom, is keen to attract international investors and operators.
Long-term challenges include regulatory management, urban water and wastewater services expansion, addressing water shortages (supply versus demand), sustainable development and ensuring financial sustainability (addressing low tariffs).
In summary, the business opportunities in Saudi Arabia include:
• PPP contracts – management/operation and maintenance of urban water and sewage facilities in major cities;
• Infrastructure requirements in major cities under privatisation;
• Consultancy and technical studies opportunities;
• ICT – implementation technology solutions;
• Building new wastewater treatment plants on build-own-operate (BOO) basis in major cities; and
• Rehabilitation, operation and transfer existing wastewater treatment plants.

Bahrain
Although Bahrain is a far smaller market than Saudi Arabia with a population of 1 million people, it has plans to invest $2 billion in desalination plant and $1 billion in wastewater treatment between 2010 and 2016. If these figures are extrapolated per head of population, this is actually a higher expenditure per head than Saudi Arabia. Opportunities in the market include:
• Pumps, pipes, valves, membranes;
• Other equipment including filters;
• Chemicals and related services; and
• Industries – oil and gas, metals (aluminium smelter) and pharmaceutical.

Qatar
Water production has greatly increased in Qatar in recent years. A master plan is currently being developed to include transportation, infrastructure (sewer, drainage, water and electricity) environmental protection and land use. It is believed that the majority of future government funding will be allocated to water and wastewater projects and many of these projects will come up in the near future.

UAE
A recent British Water conference with the Dubai Electricity and Water Authority (Dewa) highlighted that Dewa’s procurement alone amounts to about $1-2 billion per annum. Procurement is through invited tenders, global tenders and through local purchases and Dewa is keen to work with international companies in the following areas:
• Power plants;
• Substations;
• Desalination and reverse osmosis plants;
• Reservoirs and pumping stations;
• Power and water – transmission and distribution networks;
• Scada (supervisory, acquisition and data control) systems and intelligent metering systems;
• Consultancy services in water and power areas; and
• Other cost-effective energy, water, environmental and green building technologies.
British Water, the UK trade association for the UK supply chain of the water and wastewater, is keen to develop its relationship with the GCC states and is helping UK firms enter these markets.
British Water is managing the organisation of the UK Trade & Investment’s (the UK government’s department for inward and outward investment) water and environment mission to Saudi Arabia from January 14 to 21, 2011.
The visit will include seminars, round table meetings, site visits and receptions. British Water is also organising the UK pavilion of exhibitors at the Wetex exhibition in Dubai, UAE, which will be held from March 8 to 10 next year.
Those wishing to find out more about these and other events please email lila.thompson@britishwater.co.uk .