PWRJan 2012

Middle East Industry Update: Power, Water, New & Renewable Energy
Sectors
January 2012
Middle East Industry Update:

Power, Water, New & Renewable
Energy Sectors
January 2012
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www.ventures-me.com
Sectors
January 2012
Table of Contents
Middle East Industry Update: Power, Water, New & Renewable Energy Sectors January 2012 ........................
Chapter1. Contractor Awards in Power, Water and Renewable Energy Sectors December 2011 January
2012.................................................................................................................................................................... 3
Major Projects Awarded To Contractors as Updated from 25th December 2011 till 25th January 2012 .......... 3
Chapter2. Major Power, Water and Renewable Energy Project Updates......................................................... 6
Chapter 3. Middle East Regional Statistical Update- energy ........................................................................... 14
Chapter4. Recent developments in the Middle East Power, water and Renewable Energy Sectors.............. 16
Middle East Power, Water and Renewable Energy Sector -Plans and Progress ............................................. 16
Power Sector ................................................................................................................................................ 16
Renewable Energy Sector ............................................................................................................................ 17
Water Sector ................................................................................................................................................ 18
Recent Developments and News Updates in the Middle East Power and Water and Renewable energy
Sector ............................................................................................................................................................... 20
Power + Water Middle East 2011 .................................................................................................................... 26
Middle East Electricity 2012 ............................................................................................................................. 27
List of Tables
Table 1: GCC Plans for Investment in Renewables and Impact Assessment on Select Indicators, 2011 ........ 14
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Chapter1. Contractor Awards in

Power,
Water and
Renewable
Energy Sectors December 2011
January 2012
Major Projects Awarded To Contractors as Updated from 25th
December 2011 till 25th January 2012
Water Network Rehabilitation at Khuzam Area, UAE

Project Value : US$30 million ( Estimated )
Status : Construction
Construction Start : Q1 2012 ( Estimated )
Completion : Q4 2013 ( Estimated )
Client : Federal Electricity & Water Authority (FEWA)
Contractor: Arco General Contracting
Scope: Project calls for the rehabilitation of water distribution network at Khuzam area in Ras Al Khaimah.
Pipeline diameter ranges from 160mm to 500mm for a distance of approximately 90km.
Schedule: The construction contract was awarded to Al Ryum Contracting Company (Arco) in December 2011.
Construction work is expected to start in Q1 2012.
Four RCC Water Storage Tanks in Dibba, UAE

Construction Start : Q1 2012
Completion : Q4 2014
Client : Federal Electricity & Water Authority

(FEWA)
Contractor: Essa Engineering & Maritime Services
Scope: Project calls for the construction of 4 water storage tanks - 2 x 4MIG, 1 x 1.5MIG and 1 x 0.5 MIG at Dibba
area in Fujairah.
Schedule: Bids were issued on 10 May 2011. Bid submission was on 20 June 2011. The construction contract was
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awarded to Essa Engineering & Maritime Services in December 2011. Mobilization started in January 2012.
Nine Freshwater Towers in Jaber Al Ahmed Housing City,

Kuwait
Project Value : US$6 million
Client : Ministry of Electricity & Water (MEW), Kuwait

Contractor: Ahmadiah Contracting & Trading Co., Kuwait
Scope: Project calls for the construction of 9 freshwater storage towers for the Jaber Al Ahmed Housing City.
Schedule: The Ministry of Electricity and Water issued tender for construction contract in April 2011. Bid submission
for the project was on 19 July 2011. Ahmadiah Contracting & Trading Co. was awarded the construction contract of
the project in December 2011. Site mobilization started in January 2012.
Emergency Reservoirs in Muscat, Oman

Client : Public Authority for Electricity & Water
Consultant: Sogreah Consulting
Contractor: Al Hassan Engineering

Scope: Project calls for the construction of nearly 12 emergency water storage tanks in the Muscat Governorate.
The contract will also include installation of pumping stations, connecting pipeline network and associated works.
Sites planned to build the reservoirs are as follows: Ghala Airport area, BAusher, Seeb, Al Khoudh, Rusayl, Barka,
Muscat, Ruwi, Al Wadi al Kabir, Mumtaz area, Al Amerat & Qurum.
Schedule: In Q2 2010, Sogreah Consulting was appointed to prepare the detailed design for the project. The Public
Authority for Electricity and Water had tendered out the project to construction contractors in April 2011. The
construction contract has been awarded to Al Hassan Engineering in January 2012. Official signing of the contract is
awaited.
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Three 33 kV Feeder Lines from Blue City Grid to South

Batinah Region, Oman
Client : Mazoon Electricity Company,Oman
Contractor: Global Chemicals & Maintenance Systems
Scope: Project calls for the construction of three 33 kV feeder lines from Blue City grid station to Billah and Barka
new substations in Barka in South Batinah region.
Schedule: Mazoon Electricity Company issued the tender for the construction contract in June 2011. Bid
submission was on 1 July 2011. The construction contract has been awarded to Global Chemicals & Maintenance
Systems in December 2011.
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Chapter2. Major Power, Water

and Renewable Energy Project
Updates
Al Zour North IWPP, Kuwait

Status : Tender for Construction Contract
Client : Partnerships Technical Bureau (PTB); Ministry

of Electricity & Water (MEW), Kuwait
Location: North Al Zour
Contractor : Lahmeyer International GmbH, Germany
Financial Advisor:
Germany
Lahmeyer International GmbH,
Scope: Project calls for the construction of an Independent Water and Power Plant (IWPP) with a capacity of
1500MW electricity and 100 million gallons a day of desalinated water plant in Kuwait.
Schedule: In Q1 2010, Kuwait's Partnerships Technical Bureau (PTB) formally mandated BNP Paribas (France),
Chadbourne & Parke (US) and Lahmeyer International (Germany) to advise on the project.
Engineering companies were prequalified for the build-own-transfer (BOT) contract in November 2010. Tender for
the construction contract of the project was issued in March 2011. Bid submission was on 27 September 2011. The
bidder consortiums are:
- Sumitomo, AH Sagar & Brothers, IP-GDF Suez.
- Malakoff International, SK Engineering and National Industries Group.
- Mitsui, Kharafi Group and Ahmadiah
- Acwa Power, Samsung C & T and GIC
- Marubeni & AlGhanim
In January 2012, the bids are under evaluation.
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300/400 kV Switchgear Station at North Al Zour, Kuwait

Status : Tender for Construction
Client : Ministry of Electricity & Water (MEW), Kuwait

Scope: Project calls for the construction of a 300/400 kV switchgear substation in the northern region of Al Zour.
Schedule: Tender for the construction contract was issued in October 2011. Bids have been submitted in
December 2011. Bids are now under evaluation. Ali Al Ghanim & Sons Gen. Trading & Contracting has submitted
the lowest bid.
Rawdhatain-D & Sabriya-B Substations, Kuwait

Client : Kuwait Oil Company (KOC)

Scope: Project entails the construction of 11kV main bulk intake (72MW) Raudathain-D & Sabriyah-B substations
(EF-1862 & EF-1863).
Schedule: Tender for the project was issued in December 2011. Bid submission deadline is on 29 January 2012.
Al Maktoum Solar Park Dubai, UAE

Status : Concept
Client : Dubai Electricity and Water Authority (DEWA)

Scope: Project entails the construction of a 1000MW solar power park in phases in Dubai. The proposed site is a
40sq km area along the Dubai - Al Ain Road.
Schedule: Dubai Electricity & Water Authority (DEWA) is planning to reach the peak 1000 MW production
capacity by the year 2030.
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A 10 MW pilot solar plant project has already been launched by DEWA. Plan about the wider solar park project
was announced in January 2012.
Hassyan 1 IPP, uae

Project Value : US$ 1300 million
Client : Dubai Electricity and Water Authority

(DEWA)
Location: Hassyan
Consultant: Mott MacDonald

Scope: Project calls for the construction of a 1500MW independent power plant (IPP) at Hassyan on the DubaiAbu Dhabi boarder. Dubai Electricity and Water Authority (DEWA) had planned to build a Power and Desalination
Complex in Hassyan, Jebel Ali. The project was cancelled and DEWA decided to build an independent power plant
(IPP) at Hassyan on the Dubai - Abu Dhabi boarder in a build-own-operate (BOO) basis with DEWA holding 51%
stake.
Schedule: DEWA had issued tender for expressing interests to participate in the selection of a Developer Partner
for the project on 10 March 2011. Bid submission was on 12 December 2011 (pushed forward from September
2011). Bids from 4 engineering consortia have been received. Bids are now under evaluation.
Ghantoot to Samha OHL, UAE

Client : Abu Dhabi Transmission & Despatch Co.

(Transco)
Contractor: Larsen & Toubro, Abu Dhabi
Scope: Project calls for the construction of a 220kV overhead transmission line from Ghantoot to Samha in UAE.
Schedule: The main contract was awarded to Larsen & Toubro Ltd on 17 November 2011. Mobilization started in
December 2011. Construction works has started in January 2012. Contract duration is 18 months.
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Sur IPP, Oman

Client : Oman Power and Water Procurement Company; Marubeni Corporation; Qatar Electricity and Water
Company (QEWC); Multitech
Contractor : Daewoo Engineering & Construction
Scope: Following the cancellation of the power generation scope from the proposed IWPPs in Al Ghubrah and
Duqm Oman Power & Water Procurement Company (OPWP) has considered building a large-scale independent
water and power project (IWPP) at Sur.
Schedule: The consortium formed by Marubeni Corporation which includes Chubu Electric of Japan, Qatar
Electricity and Water Company and Multitech, Oman was awarded the design, build, operate and maintenance
contract of the project in July 2011. In August 2011, Daewoo Engineering & Construction was awarded the
engineering procurement and construction (EPC) contract. Mobilization works started in January 2012.
Water Supply Network Extension in Buraimi, Oman


Scope: Project calls for the extension of water supply network to existing developments at Buraimi Governorate.
Schedule: Tender for the construction contract was issued in September 2011. Bid evaluation was ongoing in
January 2012.
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Water Distribution Network in Batinah Region, Oman

Status : Design
Consultant:
Consultants
Ibn
Khaldun
Almadaen
Engineering
Scope: Project calls for the construction of water distribution network in the Al Batinah region.
Schedule: The Public Authority for Electricity & Water had issued tender for the consultancy contract in March
2011. Bid submission was on 30 May 2011. The consultancy contract for the construction supervision of the project
was awarded to Ibn Khaldun Almadaen Engineering Consultants in November 2011. Design works started in
January 2012.
Power Plant for Hail Cement Company, Saudi Arabia

Client : Hail Cement Company
Contractor: Wartsila Power Contracting
Scope: Project calls for the construction of a 52MW captive power plant for Hail Cement Company.
Schedule: The EPC contract for the supply, engineering and construction of the plant was awarded to Wartsila
Power Contracting Company in June 2011.
Engineering works were completed in December 2011. The generator units were delivered to site in January 2012.
Overall completion is expected by the end of 2012.
Ouarzazate Solar Power Plant, Morocco

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Client : Moroccan Agency for Solar Energy (MASEN)

Scope: The project is part of the integrated Moroccan Project for Solar Energy that aims to raise the share of
renewable energies in Morocco's power sector to meet increasing domestic demand. The integrated project's
target is to achieve a total of 2,000MW of solar installed capacity by 2020, which is expected to represent 38% of
the total installed power generation by the end of 2008 and 14% of the total electricity produced by 2020. The
project involves the construction of a 500MW solar power plant in the southern town of Ouarzazate in Morocco.
The 500MW project will use a combination of thermal solar and photovoltaic solar technology. The project will be
developed in phases.
Schedule: The bids for the DBO contract for phase 1 of the solar power plant are under evaluation. The project is
expected to be completed in March 2015.
200MW Wind Independent Power Project in Jbel Lahdid,

Morocco
Status : Concept Stage
Client : Office Nationale de l'Electricite (ONE)

Scope: Project entails the construction of a 200MW wind independent power plant in Jbel Lahdid, Essaouira.
Schedule: The RFQ for the DBO contract was issued in Jan' 2012. The RFP for the DBO contract is expected to be
issued in Q2 2012. Project completion is expected in 2016.
150MW Wind Farm in Taza, Morocco

Consultant: Garrad Hassan
Scope: Project entails the construction of 150MW wind farm located 12 kilometres north west of Taza.
Schedule: Technical bids are under evaluation. BOOT contract award is expected in March 2012. Project completion
is expected in July 2014.
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100MW Wind Independent Power Plant in Midelt, Morocco


Scope: Project call for the construction of a 100MW wind independent power plant in Midelt.
Schedule: The RFQ for the DBO contract was issued in Jan' 2012. The RFP for the DBO contract is expected to be
issued in Q2 2012. Project completion is expected in 2016.
250MW Wind Farm in Gulf of Suez, Egypt

Status : Design
Client : Egyptian Electricity Transmission

Company (EETC))
Consultant: Garrad Hassan, Fichtner and Company
Scope: The project entails construction of a 250MW wind farm in the Gulf of Suez between Zaafarna and Hurghada.
Schedule: The wind measurement studies are ongoing. The wind measurement studies are expected to be
completed in Jan' 2012. The RFP for the BOO contract is expected to be issued in Q1 2012. The project completion
is expected in early 2014.
Jerash and Ajloun Water Supply - Hofa to Ajloun Water

Pipeline, Jordan
Status : Tender for Consultancy Contract
Client : Water Authority of Jordan (WAJ)

Scope: The project calls for the construction of a water transmission pipeline with a total length of 31.9 Km and 200
- 800 mm diameter. The works involve the installation of 9.4 Km of 800 mm pipelines from Hofa pumping station to
Samad pumping station and an 18 Km of 400 mm pipeline form Samad pumping station to Ishtafaina, a 3.5 Km of
300 mm pipeline from Ishtafaina to Ajloun and a 0.973 Km of 200 mm pipeline from Ajloun to Ajloun reservoir.
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Schedule: The technical bids for the preliminary design and supervision contract are under evaluation. Project
completion is expected in 2014.
Jerash and Ajloun Water Supply - Um El Lulu to Jerash Water

Transmission Pipeline, Jordan

Scope: The project calls for the construction of a water transmission pipeline with a total capacity of 34 Km and 400
- 500 mm diameter. The works involve the installation of 12 Km of 500 mm pipelines from Umm El Lulu to Abo
Ayyat Reservoir and a 22 Km of 400 mm pipeline form Abo Ayyat to Jerash.
Jerash, Um
Extension
El
Lulu,
Hofa
and
Samad
Pumping
Stations

Scope: Project entails the expansion of Um El Lulu, Hofa and Samad Pumping Stations. The project aims to meet
the increasing water demand in Jerash and Ajloun governorates.
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Chapter 3. Middle East Regional

Statistical Update- energy
As noted in our earlier reports, focus of the MENA region and in particular the GCC countries, toward
renewable sources of energy, have found focus again after being banished to the background in the decade
of the eighties and nineties. With rising domestic demand for hydrocarbons as feedstock for the growing
and diversifying economies and the high oil prices and surging global demand for oil and gas forced a
number of these countries to relook their energy mix which has until now been dominated by oil and gas
but now shifting to other sources which are abundant such as solar, wind and the less popular nuclear after
the Japan nuclear tragedy, all finding a place in the MENA energy mix.
The following table provides a qualitative assessment of the investment of each individual GCC country on
renewable sources of energy and its impact on major macroeconomic indicators classified into high,
medium or low depending on whether they would significantly change the energy mix or continue as per
the present.
Table 1: GCC Plans for Investment in Renewables and Impact Assessment on Select Indicators, 2011
Count
ry
Current Focus
Area
Bahrain
Solar, Wind,
US$133
2 Hybrid Solar million
cum wind plants
Kuwait
Oman
Qatar
Investment
Sensitivity
to Global
Economy
Private
Investment
participation
Impact on
Energy
mix
Small
Mainly IPP oriented
sensitivities
likely
to
develop
Solar
(Nuclear US$600
Small or no Mainly government
plans downscaled million solar changes likely
after
Japan project
disaster)
6
renewable US$21 million Small
Mainly government
energy projects sensitivities
with
private
Solar, Wind, No
likely
to participation
nuclear plans for
develop
the future
7 Solar plants and US$1 billion Sharp increase Predominantly
Wind
solar projects possible
government
with
scope for private
participation at a
small level
Impact
on
GDP
Moderat Mod
e shift erate
likely
High up
to
5
percent
Low
Moderat
e shift
likely
High
Large
shifts
likely
between
10 to 20
percent
High
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Saudi
Arabia
16
nuclear US$100
reactors
and billion
Solar
UAE
4
nuclear US$20 billion
reactors,
and
Solar
Moderate
sensitivities
likely
to
develop
Sharp increase
possible
Government and IPP Moderat

s to an extent
e shift
likely
High
Large avenues for Large

private investment shift
and IPPs
likely up
to
20
percent
High
Source: VME Research (Note: The project focus is not an exhaustive list of renewable projects)
renewables are expected to have a high degree of positive impact on the changes in energy mix in the next
decade for UAE, Saudi Arabia and Qatar, where domestic need has necessitated the change and
accordingly could also have a significant impact on their GDP growth as lesser reliance on hydrocarbons
would lead to greater exportable surplus of the scarce resource for which global demand is soaring
annually. For smaller countries such as Oman and Bahrain the impact is likely to be moderate though
significant enough to help meet gaps in energy demand and supply. Kuwait with its not so clear policy on
incorporating nuclear energy into their energy mix owing to the stance taken by the government after the
Japan nuclear disaster is not likely to witness a significant shift in its energy mix and GDP growth.
With greater reliance on renewables and diversification programmes with private and foreign investment
and know how entering on a large scale, the three big economies of Qatar and UAE are likely to develop
greater sensitivities to global business cycles, while Saudi Arabia with its strong government dominated
investments is likely to be less sensitive to global cycles as a result of these changes in its energy mix. The
greater reliance on PPPs and private investment is likely to bring down the extent of insulation of the GCC
economies as a whole from global economic turmoil though the oil equations are likely to only strengthen
their bargaining positions in the global marketplace as greater reliance on renewables would result in a
larger exportable surplus of oil and gas and lesser reliance on imports to meet their energy demands.
As the development of renewable energy and its policy framework is as yet at a nascent stage across the
GCC countries except for UAE, regional alliances are likely to be a far off goal and significant individual
steps to develop these areas are likely to be the agenda for the next two decades in order to optimize this
source as a significant source of energy for the GCC countries.
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Chapter4. Recent developments in

the Middle East Power, water and
Renewable Energy Sectors
Middle East Power, Water and Renewable Energy Sector -Plans
and Progress
Power Sector
The GCC countries are witnessing hastily increasing power demand and the sector is growing at the rate of
8 per cent to 10 per cent annually. The power sector in the GCC region has seen exponential growth, with
demand for electrical power to triple over the next 25 years. Leaving aside the global economic downturn,
massive investments are being planned in the GCC especially in mega energy and industrial sectors.
Growing population and social developments are other major drivers for utilities demand to grow at such
high rates.
According to the World Energy Council, the GCC will require 100 GW of additional power over the next 10
years to meet demand. The power sector will require $50 billion worth of investments in new power
generating capacity and $20 billion in desalination.
The Integrated Independent Water and Power Projects (IWPPs) model has helped GCC countries meet
demand for electricity and water, which is rising rapidly on the back of growing populations and energyintensive infrastructure and industrial projects. Private projects account for around 40,000MW of power
capacity in the region. The year 2011 witnessed 3 IPPs being awarded in the GCC with 7,500MW of new
capacity contracted. It is likely that 2012 will also follow the suit with almost same volume. Saudi Arabia,
Oman and possibly Abu Dhabi are all planning to award more private capacity and are due to be joined by
Kuwait and Dubai, the GCC's last bastions of state generation.
In GCC as such there is no shortage of power on an aggregate level in the region, at a granular level pockets
of over-capacity currently exist. This is the case in Saudi Arabia and within parts of the UAE, such as Abu
Dhabi and Dubai, while Sharjah suffers from electricity shortages. Kuwait, Oman and Bahrain all experience
power shortages at times of peak demand. Till now Kuwait was the only GCC country not to embrace
private developers, however, it is planning to beef up its capacity and is set to award its first privately
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developed power and water projects. In a short span of time Qatar has ramped up the capacity on a rapid
pace. This made Qatar the surplus state and during the summer of 2011, it has exported 200MW of surplus
electricity to the GCC electricity grid (GCCIA).
Saudi Arabia, along with its GCC neighbours, plans to export electricity. In 2009 the GCC Interconnection
Grid was established, which has already linked the utility networks of five GCC states, with Oman set to join
soon. The joint project between Saudi Arabia, Bahrain, Qatar, Oman, Kuwait and the UAE will allow the
nations to reduce the frequency of power outages by exchanging generation capacities across seasons and
time zones. It is hoped that this regional grid will one day be linked to the Egyptian network, thereby
connecting a major part of the Arab world's electricity through one grid. The Interconnection Grid has
provided huge benefits to those states connected. Longer term, the GCC harbours ambitions to export
electricity further afield, including to Europe.
Renewable Energy Sector

Of late there's a revolution sweeping the Middle East that has nothing to do with Arab Spring. It's a clean
energy upheaval with international implications that could transform the Arab world from North Africa to
the Persian Gulf. The advent of a low-carbon economy has given rise to significant new programmes in the
Middle East and North Africa to promote renewable energy. While countries such as Egypt, Libya, Tunisia,
Algeria and Morocco stand to gain immensely from the advent of European investment in solar and wind
power technology, other Arab states, notably in the Gulf Cooperation Council (GCC), are looking to nucleargenerated electricity to resolve local power shortages and increase their desalinated water capacity.
A paradigm shift to alternative fuels to power the countrys growing demand for power and water is also
the strategic focus of every GCC nations with the leader Saudi Arabia marching ahead with plans to invest
US $133 million for renewable energy projects in its 2011 budget, as electricity demand rises at a rate of
8% a year. It is expected to triple to 121,000 megawatts by 2032.
Despite being home to a quarter of the worlds oil reserves, the kingdom will require eight million barrels
of oil a day by 2028 just to meet its own domestic energy needs. KSA announced plans last year to build a
renewable energy city, which has since encouraged green inclined businessmen to visit the country. The
Kingdom of Saudi Arabia aspires to lead the world in Solar power generation of 20 GW (Giga watts) over
the next 20 years.
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UAE too has laid its development path along the alternative fuel initiative through various projects such as
US$ 600 million solar project by Shams Power Company, considered to remain the largest concentrated
solar power project in the world. According to project partners Masdar, Shams 1 will be one of the largest
concentrated solar power plants in the world with a capacity of 100MW and a solar field consisting of 768
parabolic trough collectors.
Meanwhile, the countrys commercial capital Dubai aims to generate 70 percent of its power from natural
gas and the rest from coal, nuclear energy and renewable sources. By 2030, 12 percent of Dubais power
will come from nuclear, either through importing from neighbouring countries or by building their own
plant, and another 12 percent from clean coal.
Qatar has also reinforced its commitment to the alternative energy sources for hosting the most coveted
FIFA world cup through its plans to provide Photovoltaic Solar energy systems to power the stadiums.
Following the suit, the Sultanate of Oman is also committing major investment in solar PV projects.
Water Sector
According to a study by Booz & Company GCC countries are likely to invest more than US$100 billion in
their water sector up to 2016 even as the region faces water over-consumption with per capita higher than
the global average. It highlights the seriousness of excess water consumption in the GCC region.
On a per capita basis, Saudi Arabia and the United Arab Emirates consume 91% and 83% more water than
the global average. Qatar and Oman are also above the global average for water consumption, despite
their desert climates, the study shows.
GCC residents and businesses have disregarded the consequences of their water usage to enjoy benefits
more common in countries with ample rain and overflowing aquifers. But with the population of the GCC
increasing in excess of 2% a year, and with rapid expansion in the regions economies, there is a growing
recognition within many GCC governments that current water consumption patterns are unsustainable.
GCC governments recognize the issue and have begun taking measures to address it: For instance, Saudi
Arabia will phase out purchases of locally produced wheat by 2016 in order to discourage its growth and
reduce the burden that farming imposes on the kingdoms water resources.
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GCC governments have a number of tools at their disposal to ensure the sustainability of their water
supplies. They include agriculture reforms under which farming will be limited to areas that have
renewable water sources and local farmers encouraged to focus on crops that need less water.
Besides educating consumers on conserving the precious natural resource, the GCC governments must
consider tariff structure reforms. The GCC governments should restructure their water tariff structures so
that pricing follows usage, with heavy users of water paying the most. Besides increasing economic
efficiency, this sort of price signalling would reduce waste. To the extent that subsidies remain part of the
tariff system, they can be directed at guaranteeing potable water for poorer residents, at supporting
economic growth and other national priorities.
Desalination provides two-thirds or more of the potable water used in the UAE, Kuwait, Qatar and Bahrain,
and will continue to play a huge role in the GCCs water development efforts.
But desalination carries enormous economic and environmental costs. Despite a more than fivefold
improvement in efficiency since 1979, the $1 it costs to desalinate a cubic metre of seawater is still a
relatively expensive way of producing potable water.
Furthermore, seawater desalination is an energy-intensive process, consuming eight times more energy
than groundwater projects, and accounting for between 10% and 25% of energy consumption in the GCC.
This adds to the problems of energy intensity already plaguing the region. The desalination process also
discharges salt back into the Arabian Gulf and other oceanic sources, jeopardizing their marine life and
introducing new environmental risks.
GCC countries will likely invest more than $100bn in their water sectors between 2011 and 2016. Some of
these investments will be in improved desalination technologies, which could involve solar energy or new
ways of filtering out salt or making it evaporate.
GCC countries need to increase their use of treated wastewater. Reuse water, as it is also called, isnt used
for drinking, but at one-third the cost of desalinated water it is a good alternative for activities such as
maintaining the landscaping near public roads, irrigating non-food crops, district cooling, and cooling
power-generation equipment at industrial facilities.
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Recent Developments and News Updates in the Middle East

Power and Water and Renewable energy Sector
18.4% rise in DEWA's installed power capacity

(Source: http://www.utilities-me.com/article-1757-dewa-184-rise-in-installed-power-capacity/1/print/)
Dubai Electricity and Water Authority (DEWA) has recorded an increase of 8,718 Megawatts (MW) in
installed capacity for 2011 in comparison with 7,361 MW in 2010, with desalinated water production
capacity increasing in 2011 to 400 million gallons per day (MIGD) in comparison with 330 MIGD in 2010.
According to HE Saeed Mohammed Al Tayer, Managing Director, and CEO of DEWA, the agencys recent
achievements accord with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice
President and Prime Minister of the UAE and Ruler of Dubai, to promote Dubais pioneering position as a
global hub for finance, business and tourism, and to enhance its infrastructure in all fields. Power
production has now reached 34,606 Gigawatts per hour (GWh) with an increase of 2.6% in comparison
with 33,742 GWh in 2010.
He further added that at DEWA, we focus on the availability, reliability and efficiency of our delivered
electricity and water services. We review key performance indicators, compare them with best world
practices, and work to improve and develop all operations to achieve excellence at all levels.
He concluded that increasing power and water production aims to meet customers needs and
development projects in all various economic and social sectors of Dubai.
Fresh water in the GCC: Addressing the scarcity problem

(Source: http://www.albawaba.com/business/pr/fresh-water-gcc-addressing-scarcity-problem-409980)
With their countries consuming water at alarming rates, governments in the Gulf Cooperation Council are
looking for ways to increase the supply of fresh water and get households and businesses to use it more
conservatively.
Excess consumption has become a serious issue in the region. On a per capita basis, Saudi Arabia and the
United Arab Emirates consume 91% and 83% more water than the global average, and about six times
more water than the U.K., according to an analysis by Booz & Company. Qatar and Oman are also above
the global average for water consumption, despite their desert climates.
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Mena switching to renewable energy projects

(Source: http://www.timesofoman.com/innercat.asp?cat=&detail=53856&sec=news)
While developed countries remain focused on slowing demand and cutting costs, an insatiable hunger for
energy within the emerging markets such as those in the Middle East and North Africa (Mena) now appears
to be the driving force behind renewable energy investment, according to Ernst & Youngs latest quarterly
global renewable energy Country Attractiveness Indices report (CAI).
Oman can become solar energy hub

(Source: http://www.albawaba.com/oman-can-become-solar-energy-hub-409862)
In collaboration with the Middle East Best Select Fund (MEBS), Terra Nex, a Switzerland-based global
wealth management company, recently announced plans to invest US$2bn to develop a solar energy value
chain project in the sultanate, which includes a solar panel factory, a factory to produce aluminium frames
for panels, an educational institution for the renewable energy sector and a series of solar power stations
to generate a total of 400MW electricity annually.
KSA's independent power project in Rabigh makes rapid progress

(Source: http://en-maktoob.news.yahoo.com/rabigh-ipp-complement-ksa-tremendous-growth-220731057.html)
New and ongoing projects undertaken by Saudi Electricity Co. (SEC) will complement the rapid growth of
the Kingdoms economy, its President & CEO Ali S. Al-Barrak have said.
We have long-term and short-term plans to meet future power demands as we have forecast for the next
20 years and confirmed demand for five years, he said while visiting the Independent Power Project (IPP)
in Rabigh to assess its progress.
With $2.5 billion (SR9.37 billion) of funding, the project is being developed as a new power plant with a net
capacity of around 1,204 MW at Reference Site Conditions and associated facilities located in Rabigh.
The first phase of the project will start producing 604 MW in July this year. The Rabigh IPP will provide
power to the SEC under a 20-year Power Purchase Agreement.
Solar desalination plants to curb water production costs

(Source:
http://gulfnews.com/business/general/solar-desalination-plants-in-abu-dhabi-to-curb-water-production-
costs-1.968391)
Abu Dhabi has constructed 22 solar desalination plants that will generate 1,050 KwH of clean energy and
6,600 gallons of clean water per day.
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January 2012
The eco-friendly desalination plants will also provide drinking water for the Arabian Oryx, an endangered
species, in the desert, said the Environment Agency-Abu Dhabi (EAD).
It is part of the EAD's project to construct 30 solar desalination plants across the emirate of Abu Dhabi, the
agency announced at the World Future Energy Summit on Wednesday.
Solar desalination is an innovative zero-carbon technology that extracts brackish water from groundwater
aquifers and purifies it into potable water.
Abu Dhabi's Shams 1 project 65% complete

(Source: http://www.totaldubai.com/kb/news/abu-dhabis-shams-1-project-65-complete#.Tx6Kw6Wm-I8)
Abu Dhabi's first mega solar power generation plant, Shams 1, which is being constructed in Madinat Zayed
in the western region is almost 65 per cent complete and expected to go into commissioning towards the
end of the 2012.
30 solar desalination plants to come up in Abu Dhabi

(Source:
http://www.khaleejtimes.com/displayarticle.asp?xfile=data/theuae/2012/January/theuae_January487.xml&section
=theuae&col=)
The Environment Agency-Abu Dhabi (EAD) is constructing 30 solar desalination plants in different locations
of the emirate, of which 22 plants are already completed, said Razan Khalifa Al Mubarak, Secretary-General
of the EAD.
Region sits on gold mine of untapped solar energy

(Source: http://gulfnews.com/business/general/region-sits-on-gold-mine-of-untapped-solar-energy-1.967914
The Gulf region has been blessed with an energy surplus for perpetuity due to its abundance of solar
energy, the most technically viable source of renewable energy at present. Solar energy is in fact so
abundant in the region that regional governments and innovators are in a unique position to develop
workable and cost-effective technologies for deploying it.
Iran: Power generation up

(Source: http://www.zawya.com/story.cfm/sidZAWYA20120118050830/)
Energy generation from hydroelectric power plants has increased by 17 percent since last March.
Hydroelectric power plants generated 9.943 million megawatt-hours of power in the said period, IRNA
reported.
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January 2012
During last week (the 43rd week of the current Iranian year), hydroelectric power plants generated
208,038 megawatt-hours of power, indicating a growth of over 105 percent compared to the figure for the
same period last year, the report said.
The report added simultaneous power generation in the past week was recorded at 3,292 megawatts,
showing a rise of 54-percent against the figure for the same duration in the preceding year.
Energy generation from hydroelectric power plants in the past week reached 222,475 megawatt-hours, 63
percent higher than that of the same period last year.
Electricity consumers in KSA reach 6.3 million in November 2011

(Source: http://arabnews.com/saudiarabia/article563041.ece)
The number of electricity consumers in the Kingdom reached 6.3 million as of November 2011, according
to report of Saudi Electricity Company (SEC). There was an increase of 30,807 consumers.
The number of cities and villages that come under the SEC network across the Kingdom rose to 12,230 at
the end of November, the report pointed out.
SECs sale of electricity power in November 2011 recorded a fall of 1.4 percent compared to the same
period during the previous year. The company sold a total of 12,562 gigawatts per hour (GW/H) of
electricity during the month.
However, there was an increase of 2 percent in the maximum daily power load during the period, reaching
31,793 megawatts, according to the report.
The report showed that production at SEC electricity power generating plants posted a slight increase of
0.5 percent reaching 11,515 GW/H in November last year against the same period in 2010. The actual
generating capacity of SEC plants reached 42,631 gigawatts at the end of November while the volume of
production reached 11,515 GW/H, the report added.
Jordan's nuclear reactor to cost $5 billion

(Source: http://arabnews.com/middleeast/article562651.ece)
The nuclear reactor that Jordan seeks to build by 2020 will cost about $5 billion, said Chairman of the
Jordan Atomic Energy Commission Khalid Toukan.
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January 2012
Privatization of 25 power plants in Iran on agenda

(Source:
http://www.zawya.com/story.cfm/sidZAWYA20120112054951/Privatization_of_25_power_plants_in_Iran_on_agen
da)
Some 25 power plants are expected to be handed over to the private sector by the end of the current
Iranian year (started March 21, 2011), said deputy Energy minister.
Ali Zabihi said that 10 power plants of the country were privatized last year, adding privatization of 35
power plants, out of 50 which are operational across the country, is considered as a significant
achievement, Mehr News Agency reported on Wednesday.
The official said that efforts are underway to remove the obstacles in the way of privatizing 20 power
transmission companies.
He noted that inspecting, supervising and accounting organizations should take a number of measures in
this respect.
The privatization drive of the state-run institutions is in line with the Article 44 of Iran's Constitution. Power
consumption in the country has declined by 10 percent since the implementation of Iran's Subsidy Reform
Plan.
Dubai launches Dh12b solar power project

(Source: http://specials.forbes.com/article/0dERd8GdnV0A2
A Dh12 billion solar power project to meet Dubais growing energy needs was launched on Monday by His
Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and
Ruler of Dubai.
10% of Saudi electricity via solar energy in 2020

(Source: http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentID=20120109115242)
The Kingdom intends to use solar energy to generate 10 percent of its electricity needs by the year 2020, a
total of five megawatts of power.
It also hopes its solar industry will help it become the biggest exporter of electricity in the world.
The government expects the recently established solar energy sector in the Kingdom to provide 15,000
new jobs, encourage the development of solar farms and the establishment of factories for the treatment
and collection of raw materials from the related utilities.
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January 2012
Over SR3 billion has been invested in solar energy generating plants in Yanbu Port in Madina region and
Jubail in the Eastern Province.
In addition, a SR380 million factory will be built on the Arabian coast to produce poly silicon. Its preliminary
production capacity by 2014 is expected to reach 3,350 tons of poly silicon, to be used in the production of
solar energy.
DEWA starts new water AED 96mn pipeline

(Source:
http://www.khaleejtimes.com/DisplayArticleNew.asp?xfile=/data/theuae/2012/January/theuae_January170.xml&s
ection=theuae)
In line with its strategic plan to develop water networks for Dubai, Dubai Electricity and Water Authority
(DEWA) has started a project to supply, extend, test and commission a new main water pipeline, made of
reinforced fibreglass. This 900mm and 1200mm pipeline will be 17 km long.
Iran to raise electricity exchange with neighbouring countries by

50%
(Source:
http://www.tehrantimes.com/economy-and-business/94311-iran-to-raise-electricity-exchange-with-
neighboring-countries-by-50-percent)
Iran will exchange up to 15 billion kilowatt hours (BkWh) of electricity with its neighboring countries by the
end of the current calendar year (March 19, 2012), up 50 percent year on year, Iran power generation
transmission and distribution management company (TAVANIR) managing director stated.
Project Information Source: Ventures Onsite MENA Projects Database (www.venturesonsite.com)

Compiled by: Ventures Middle East (www.ventures-me.com)
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January 2012
Power + Water Middle East 2011

16-18 October 2011
Venue: Abu Dhabi National Exhibition Centre
Power + Water Middle East 2011, held in partnership with Abu Dhabi Water & Electricity Authority
(ADWEA), is the regions premier showcase of power and water related products and services.
Now in its 4th year, Power + Water Middle East brings together companies from over 25 countries and
leading industry decision makers from over 50 countries.
Power + Water Middle East is held in Abu Dhabi, the richest city in the world, which has the resources to
maintain expenditure in-line with Abu Dhabis Vision 2030 - the emirate's long term strategic infrastructure
development initiative.
Power + Water Middle East is the perfect platform to enter this lucrative market and the surrounding GCC
countries.
For further details, visit: www.powerandwaterme.com
Anita Mathews
Event Director
Tel: +971 4407 2472
Email: pwme@informa.com
P a g e : 26
Sectors
January 2012
Middle East Electricity 2012

7-9 February 2012
Venue: Dubai International Exhibition Centre
Middle East Electricity is rated by exhibitors and visitors as the worlds leading energy event.
Now in its 37th year, it attracts over 1000 exhibitors from over 50 countries and 14,000 visitors from over
115 countries.
Middle East Electricity covers all sectors of the energy industry, specifically power, new and renewable,
nuclear, lighting and water.
Middle East Electricity has firmly established itself as the meeting place for industry professionals wishing
to network with, and source solutions from, local and international companies offering solutions to the
power generation, lighting, water, nuclear and new and renewable energy industries.
For more details, visit: www.middleeastelectricity.com
Anita Mathews
Event Director
Tel: +971 4407 2472
Email: meelectricity@informa.com
P a g e : 27

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Middle East Industry Update: Power, Water, New & Renewable Energy

Middle East Industry Update:

Chapter1. Contractor Awards in

Water Network Rehabilitation at Khuzam Area, UAE

Construction Start : Q1 2012 ( Estimated )

Completion : Q4 2013 ( Estimated )

Client : Federal Electricity & Water Authority (FEWA)

Contractor: Arco General Contracting

Four RCC Water Storage Tanks in Dibba, UAE

Construction Start : Q1 2012

Client : Federal Electricity & Water Authority

Contractor: Essa Engineering & Maritime Services

Nine Freshwater Towers in Jaber Al Ahmed Housing City,

Construction Start : Q1 2012

Client : Ministry of Electricity & Water (MEW), Kuwait

Emergency Reservoirs in Muscat, Oman

Construction Start : Q3 2012 ( Estimated )

Completion : Q3 2014 ( Estimated )

Client : Public Authority for Electricity & Water

Consultant: Sogreah Consulting

Contractor: Al Hassan Engineering

Three 33 kV Feeder Lines from Blue City Grid to South

Construction Start : Q2 2012

Client : Mazoon Electricity Company,Oman

Contractor: Global Chemicals & Maintenance Systems

Chapter2. Major Power, Water

Al Zour North IWPP, Kuwait

Status : Tender for Construction Contract

Construction Start : Q2 2012 ( Estimated )

Completion : Q2 2014 ( Estimated )

Client : Partnerships Technical Bureau (PTB); Ministry

Location: North Al Zour

Contractor : Lahmeyer International GmbH, Germany

Lahmeyer International GmbH,

300/400 kV Switchgear Station at North Al Zour, Kuwait

Status : Tender for Construction

Construction Start : Q2 2012 ( Estimated )

Completion : Q2 2013 ( Estimated )

Client : Ministry of Electricity & Water (MEW), Kuwait

Rawdhatain-D & Sabriya-B Substations, Kuwait

Status : Tender for Construction Contract

Construction Start : Q3 2012 ( Estimated )

Completion : Q1 2014 ( Estimated )

Client : Kuwait Oil Company (KOC)

Al Maktoum Solar Park Dubai, UAE

Construction Start : Q1 2014 ( Estimated )

Completion : Q4 2030 ( Estimated )

Client : Dubai Electricity and Water Authority (DEWA)

Hassyan 1 IPP, uae

Status : Tender for Construction Contract

Construction Start : Q3 2012 ( Estimated )

Completion : Q3 2015 ( Estimated )

Client : Dubai Electricity and Water Authority

Consultant: Mott MacDonald

Ghantoot to Samha OHL, UAE

Construction Start : Q1 2012

Client : Abu Dhabi Transmission & Despatch Co.

Contractor: Larsen & Toubro, Abu Dhabi

Sur IPP, Oman

Construction Start : Q1 2012

Water Supply Network Extension in Buraimi, Oman

Status : Tender for Construction Contract

Construction Start : Q2 2012 ( Estimated )