Frost & Sullivan Complimentary Analyst Briefing on Water and Wastewater Infrastructure in Middle East and North Africa

1. Water and Wastewater Infrastructure in
Middle East and North Africa: Mounting
Demand, Major Challenges and
Opportunities
Nideshna Naidu, Industry Analyst
Environment and Building Technologies
April 19, 2011

2. Today’s Presenter
Nideshna Naidu, Industry Analyst
Frost & Sullivan
Tanu Chopra, Assistant Manager, Corporate Communications,
Frost & Sullivan
2

3. Focus Points
Introduction
Market Dynamics
Market Overview and Trends
Industry Challenges Across Value Chain
Major Drivers and Restraints
Total Market Revenues
2020 Mega Trends
Growth Opportunities
Conclusion
3

4. Introduction
4

5. Water Facts – Renewable Water Resources in MENA
Renewable Water Resources (2005) (m3/capita/year)
Kuwait 0
UAE 78 Water scarcity
KSA 91 1,000 m3/person
Liby a 104
Qatar 116
Bahrain 145
Jordan 156
Y emen 198
Palestine 213
Israel 271
Oman 333
Algeria 440
Tunisia 496
Egy pt 752
Morocco 886
Lebanon 1150
Sy ria 1426
Iran 2022
Iraq 2892
Turkey 3292
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6. Water Facts – High Water Consumption in MENA
Countries Using More Water than Naturally Available
Jordan
Egypt
Israel
Oman
Bahrain
Qatar
Saudi
Libya
UAE
Kuwait
0 500 1000 1500 2000 2500
Percentage (%)
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7. Market Definition
WATER & WASTEWATER INFRASTRUCTURE MARKET
WATER TREATMENT
WASTEWATER TREATMENT
WATER DISTRIBUTION NETWORK
WASTEWATER COLLECTION & DISPOSAL NETWORK
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8. Market Dynamics
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9. Market Overview and Trends
MARKET OVERVIEW CURRENT MARKET TRENDS
1. Concept of Integrated
1. Market following high growth
Water & Power Projects
trajectory
(IWPP)
2. Government’s backing
2. Public-Private Partnership
development of water and
(PPP) projects
wastewater infrastructure
3. Government initiatives to
3. Water and wastewater
raise funds through
infrastructure companies partner
infrastructure funds,
with domestic investment
private equity funds and
companies to execute projects
IPO’s
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10. Industry Challenges Across Value Chain
Transmission
Transmission Sewage
Sewage
Treatment
Treatment and
and Customer Service
Customer Service Usage
Usage Collection and
Collection and
Distribution
Distribution Treatment
Treatment
Quality of water High Water Long Responsive Lack of effective Operational
supplied to end- Delivery Costs. time. demand Efficiency
users management
The Water Lack of continuous Limited
Environmental Distribution Service Lack of treatment
Challenges in coverage in awareness on facility and no
Technical
Desalination and MENA region is water proper
problems with
ground water very poor when management sewage
meters
reserves. compared to network
international Tariffs below
High cost of
standards. recovery cost
recycling
hence very less
wastewater
revenues
generated
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11. Challenge in both forms – Quantity and Quality
H
Algeria, Egypt, Iraq,
I Jordan, West Bank
Water Quality Severity
Lebanon, Morocco,
G and Gaza, Yemen
Syria, Tunisia
H
Bahrain, Kuwait,
L
Oman, Qatar, Saudi
O
Arabia, United Arab
W
Emirates
LOW HIGH
Water Quantity Severity
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12. Major Drivers and Restraints
Water Scarcity and Low
Replenishment Rates Growth in
Economic
D Population and D
Diversification
R Urbanization Awareness on R
I Water Crisis I
V V
E E
R R
S S
R R
E E
S S
T T
R R
A High water A
Lack of awareness
I Inefficient water consumption I
of saving drinking
N management practices N
water
T practices T
S S
Short Term High Impact
Medium Term Medium Impact
Long Term Low Impact Source: Frost & Sullivan
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13. Total Market Revenues
The water & wastewater infrastructure market is valued at $ 9
billion and was divided among the following geographic
market segments as shown below.
ROME
3%
North
Africa
25%
GCC
72%
Source: Frost & Sullivan
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14. 2020 Mega Trends
Green Concepts to Smart Concepts
s
tie
t Ci Emphasis on
ar Wastewater Recycle
Sm
gy and Reuse
Te chnolo
MEGA
TRENDS Infrastructure Economic
Development Diversification
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15. Growth Opportunities
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16. Technology Roadmap
1980 1990 2000 2010 2020
Bio Solids Energy from
Drinking Municipal Management Zero Liquid
Wastewater
Evolution of water Wastewater Discharge
Water Advanced Re-Use and Integrated Network
Management Thermal W&WW Treatment Recycling Management
Turnkey Design &
Strategies in Desalination
Solutions Build
Chemical free
the Packaged
treatment Small-Scale
Plants
Environment Membrane RO Desalination
Desalination
Service Alternative
Sector Technology
Sources
Outsourcing
Worldwide Systems for Small
Industrial Sewerage Sanitation Communities
W&WW Connection
Water & Wastewater Water Water Re-Use
Treatment Management & Recycling
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17. Market Attractiveness
5
4
Level of Private Participation
Saudi Arabia
UAE
Egypt
3
Kuwait
Qatar Oman
Bahrain
2
Syria
Jordan Lebanon
1
0
0 1 2 3 4
Demand for New Water/ Wastewater Facilities Source: Frost & Sullivan
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18. Beneficiaries of the Unprecedented Growth
Design and
Planning
Electro Services
Mechanical
Equipment EPC
Suppliers Contracting
Water &
Wastewater
Infrastructure
Financial Advisory
Services Services
Water &
Wastewater
Technology
Providers
Source: Frost & Sullivan
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19. Conclusion
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20. Growth and Competitive Factors to Leverage Business
Opportunities in the MENA Region
Offer Advanced
Treatment
Cost-effective
Technologies
technologies to
cater to the mass
Emphasis on market
Recycle & Reuse
projects Competitive Factors
Value Engineering
Increase in LEVERAGING
Population &
Urbanization OPPORTUNITIES
Leveraging
Partnerships
Increasing Growth Factors
Economical
Activities
Investments in Demand for Water
Desalination Distribution
Water Scarcity
Networks
projects
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21. Conclusion
Moving forward, MENA region would witness
tremendous development in wastewater
collection & disposal networks and in enhancing
wastewater treatment capacities.
MENA is expected to see a rise in projects based
on BOO, BOOT, and BOT models to overcome
financial constraints.
Promising years are ahead for the domestic and
international water & wastewater infrastructure
developers in MENA and particularly in Saudi
Arabia, UAE and Egypt.
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25. For Additional Information
Tanu Chopra Sasidhar Chidanamarri
Asst. Manager - Corporate Industry Manager
Communications - MENA Environment & Building Technologies
(91) 22 66072037 (91) 44 66814456
tanu.chopra@frost.com sasidhar.chidanamarri@frost.com
Ravinder Kaur
Nideshna Naidu
Assistant Manager
Industry Analyst
Corporate Communications- South
Asia Environment & Building Technologies
+91 44 6160 6666 (91) 44 66814366
Ravinder.kaur@frost.com nideshna.naidu@frost.com
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