GCC wastewater treatment capacity to double by 2015

JEDDAH, May 05, SPA - Despite the onset of the worst economic
downturn in a decade, the outlook for the GCC wastewater sector
remains bright with almost $10 billion of investment planned in new
treatment capacity up to 2015.


According to GCC Wastewater 2009, a new report published this week
by MEED Insight, sewage treatment capacity will have to more than
double over the next six years as utilities seek to meet robust
demand and replace antiquated infrastructure.


“The impact on the wastewater treatment sector outside Dubai is
expected to be temporary. Given the high rates of indigenous
population growth in Saudi Arabia, Kuwait and Oman, the demand for
new wastewater facilities is likely to remain robust,” said the
report published today by Saudi Gazette.


“It is expected that an easing in the project finance market, which
could take effect in the second half of 2009, would revive Saudi
Arabia’s and Bahrain’s planned introduction of the private sector
into the wastewater treatment sector for the first time.”

According to the 57 page GCC Wastewater 2009 report in the period
2009-15, Saudi Arabia will be the largest investor in new treatment
capacity followed by the UAE and Kuwait.


The good news for wastewater providers is that the cost of building
this extra capacity is likely to fall by 20-30 per cent in 2009, as a
result of declining material prices and increasing contractor
competition, due to contracting workloads.


“These costs reductions will encourage the region’s utilities to
press ahead with their works programs again, after serious delays
were experienced in the final quarter of 2008 and the early 2009, due
to the intense uncertainty over costs and in some cases, the future
demand outlook,” the report said.

--SPA