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Follow on Google News | Recently released market study: United Arab Emirates Water Report Q2 2011New Materials market report from Business Monitor International: "United Arab Emirates Water Report Q2 2011"
In the UAE as a whole, desalinated water accounts for 80% of total water consumption. The UAE has emerged as the Middle East and North Africa (MENA) region's second largest producer of desalinated water, after Saudi Arabia. The financial crisis that hit the UAE in late 2009 - which saw a default on a major Dubai-related sukuk (Islamic security issuance) - has also made it more difficult to raise finance for key infrastructure projects. The wave of popular unrest to have hit the Middle East in Q111 has not impacted the UAE, but clearly the country cannot escape the worsening risk perception from outside investors in the region. The UAE's water sector is organised along federal lines. Abu Dhabi Water & Electricity Authority (ADWEA) is the utility responsible for the supply of water in Abu Dhabi. It took over from the Water & Electricity Department in 1999. In Dubai, DEWA operates the water and electricity sector. Sharjah Electricity & Water Authority (SEWA) is the authority with responsibility for the small emirate's water and power. For the four northern emirates - Ajman, Fujairah, Ras al-Khaimah and Umm al-Quwain, a single authority, the Federal Electricity & Water Authority (FEWA), is the water and power provider. With Dubai's water and power utility DEWA looking to follow ADWEA's lead and access private financing, the UAE's water sector stands an increased chance of attracting the kind of funding needed to meet the sharp uptick in demand that is expected over the next decade. Though the economic recession bit a chunk out of the country's demand in 2008-2010, we expect to see this historic trend resume with more vigour over the next four years. For 2011, we see a 7.4% increase in production, a substantial increase on 2010. By 2014, we expect an additional 200mn gallons per day (g/d) of water to be in the UAE system - the bulk of this new supply emanating from the expanded array of independent water and power projects (IWPPs) from the ADWEA stable. ADWEA remains the most active promoter of privatised water provision, via a series of IWPPs. Since its foundation, ADWEA has built at least one new IWPP every year, besides expanding existing facilities. It is assisted by Abu Dhabi National Energy Company (TAQA), which has bought stakes in a series of IWPPs in the country. The selection in October 2010 of a Korean-Japanese consortium, comprising Sumitomo and Korea Electric Power Co (Kepco), to undertake the Shuweihat S3 project under a 15-year power purchase agreement is the first significant new ADWEA power project that does not include a desalination component. In November 2010, ADWEA's privatisation director Abdullah Saif al-Nuaimi announced that if the authority's experiments with three reverse osmosis (RO) plants are successful, new projects could be developed as separate water/power schemes - a break with recent tradition. Abu Dhabi's water consumption is increasing at a rapid rate. ADWEA's subsidiary Abu Dhabi Water and Electricity Company (ADWEC) notes that water demand increased by 8.1% in the 2008-2009 period. The company is anticipating robust long-term demand growth, with 2015 demand expected to reach 1.06bn g/d, rising to 1.28bn g/d by 2025. In March 2011 UAE President Shaikh Khalifa bin Zayed ordered the establishment of a special committee, comprising senior officials of the main utilities in the UAE and the municipalities in the northern emirates, to study anticipated demand for additional water and electricity supplies. The committee will be tasked with establishing standards and measures to guarantee the implementation of appropriate solutions for the water sector. The IWPP expansion undertaken by ADWEA will increase this substantially over the next year. Current water desalination capacity in Abu Dhabi stands at around 730mn g/d. By end-2011, ADWEA is on course to develop more than 800mn g/d of desalination capacity via its IWPP. In December 2010, ADWEA appointed a new chairman, former chairman of Abu Dhabi Health Authority - potentially heralding a new era for the utility. Dubai will proceed with its Hassyan 1 scheme as an IWPP, confirming that the tough economic climate could prove to be a trigger for economic reform. Meanwhile in Abu Dhabi, ADWEA said in November 2009 it would issue a call for tenders for a new electricity and desalination plant in the first half 2010, in which it would take a 60% stake, which has been the norm for previous projects. DEWA is expected to launch a tender for a 120mn g/d IWPP at Hassyan near the Abu Dhabi border in April 2011, with commissioning planned for 2014. The utility reported a 4.4% increase in water demand in 2010 over the previous year. By end-2011 DEWA's water production capacity will reach 470mn g/d, with the coming on stream of the Jebel Ali expansion, adding 140mn g/d of desalination capacity. DEWA will stagger its developments as the emirate faces a sharp fall in expatriate population numbers in 2009-2010. In order to speed up project activity, in June 2009 DEWA sanctioned a cut in the bid bond for tenders exceeding AED2bn, bringing it down from 5% to 2%. It also lowered the performance guarantee bond from 20% to 10%. 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We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156. # # # Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available. End
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