mena water and wastewater infrastructure market
DESCRIPTION
Frost & Sullivan Complimentary Analyst Briefing on Water and Wastewater Infrastructure in Middle East and North AfricaTRANSCRIPT
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
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
4
Introduction
5
Water Facts – Renewable Water Resources in MENA
32922892
2022
1426
1150
886
752
496
440
333
271
213
198
156
145
116
104
91
78
0
Turkey
Iraq
Iran
Sy ria
Lebanon
Morocco
Egy pt
Tunisia
Algeria
Oman
Israel
Palestine
Yemen
Jordan
Bahrain
Qatar
Liby a
KSA
UAE
Kuwait
Renewable Water Resources (2005) (m3/capita/year)
Water scarcity1,000 m3/person
6
Water Facts – High Water Consumption in MENA
0 500 1000 1500 2000 2500
Kuwait
UAE
Libya
Saudi
Qatar
Bahrain
Oman
Israel
Egypt
Jordan
Percentage (%)
Countries Using More Water than Naturally Available
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Market Definition
WATER & WASTEWATER INFRASTRUCTURE MARKET
WATER TREATMENT
WASTEWATER TREATMENT
WATER DISTRIBUTION NETWORK
WASTEWATER COLLECTION & DISPOSAL NETWORK
8
Market Dynamics
9
Market Overview and Trends
1. Concept of Integrated
Water & Power Projects
(IWPP)
2. Public-Private Partnership
(PPP) projects
3. Government initiatives to
raise funds through
infrastructure funds,
private equity funds and
IPO’s
CURRENT MARKET TRENDS
1. Market following high growth
trajectory
2. Government’s backing
development of water and
wastewater infrastructure
3. Water and wastewater
infrastructure companies partner
with domestic investment
companies to execute projects
MARKET OVERVIEW
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Industry Challenges Across Value Chain
Customer ServiceCustomer Service UsageUsageSewage
Collection and Treatment
Sewage Collection and
Treatment
Quality of water
supplied to end-
users
Environmental
Challenges in
Desalination and
ground water
reserves.
High cost of
recycling
wastewater
High Water
Delivery Costs.
The Water
Distribution
coverage in
MENA region is
very poor when
compared to
international
standards.
Long Responsive
time.
Lack of continuous
Service
Technical
problems with
meters
Tariffs below
recovery cost
hence very less
revenues
generated
Lack of effective
demand
management
Lack of
awareness on
water
management
Operational
Efficiency
Limited
treatment
facility and no
proper
sewage
network
Customer ServiceCustomer ServiceTransmission
and Distribution
Transmission and
DistributionUsageUsageCustomer ServiceCustomer ServiceTreatmentTreatment
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Challenge in both forms – Quantity and Quality
LOW
Algeria, Egypt, Iraq,
Lebanon, Morocco,
Syria, Tunisia
HIGH
Bahrain, Kuwait,
Oman, Qatar, Saudi
Arabia, United Arab
Emirates
L
O
W
Jordan, West Bank
and Gaza, Yemen
H
I
G
H
Water Quantity Severity
Wa
ter
Qu
ali
ty S
eve
rity
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Major Drivers and Restraints
DRIVERS
DRIVERS
RESTRAINTS
Low Impact
High Impact
Medium Impact
Short Term
Medium Term
Long Term
RESTRAINTS
Inefficient water management
practices
Lack of awareness of saving drinking
water
Growth in Population and Urbanization
Water Scarcity and Low Replenishment Rates
Economic Diversification
High water consumption practices
Awareness on Water Crisis
Source: Frost & Sullivan
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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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2020 Mega Trends
MEGA TRENDS
Infrastructure Development
TechnologySm
art Citi
es
Green Concepts to Smart Concepts
Emphasis on Wastewater Recycle and Reuse
Economic Diversification
15
Growth Opportunities
16
Technology Roadmap
1980 20001990
Evolution of Water Management Strategies in the Environment Sector
2010 2020
IndustrialW&WW
MembraneTechnology
MunicipalWastewater
ServiceOutsourcing
Drinkingwater
RO Desalination
Water & WastewaterTreatment
WaterManagement
Water Re-Use& Recycling
Re-Use and Recycling
AdvancedW&WW Treatment
Integrated NetworkManagement
TurnkeySolutions
Energy fromWastewater
Zero LiquidDischarge
ThermalDesalination
Bio SolidsManagement
SewerageConnection
WorldwideSanitation
Small-ScaleDesalination
PackagedPlants
Design &Build
AlternativeSources
Systems for Small Communities
Chemical free treatment
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Market Attractiveness
Saudi ArabiaUAE
Qatar Oman
Egypt
Kuwait
Bahrain
Syria
Jordan Lebanon
0
1
2
3
4
5
0 1 2 3 4
Source: Frost & SullivanDemand for New Water/ Wastewater Facilities
Level o
f P
rivate
Part
icip
ati
on
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Beneficiaries of the Unprecedented Growth
Source: Frost & Sullivan
Water & Water & Water & Water & Wastewater Wastewater Wastewater Wastewater InfrastructureInfrastructureInfrastructureInfrastructure
Electro Electro Electro Electro Mechanical Mechanical Mechanical Mechanical Equipment Equipment Equipment Equipment SuppliersSuppliersSuppliersSuppliers
EPC EPC EPC EPC ContractingContractingContractingContracting
Water & Water & Water & Water & Wastewater Wastewater Wastewater Wastewater Technology Technology Technology Technology ProvidersProvidersProvidersProviders
Financial Financial Financial Financial ServicesServicesServicesServices
Advisory Advisory Advisory Advisory ServicesServicesServicesServices
Design and Design and Design and Design and Planning Planning Planning Planning ServicesServicesServicesServices
Water & Water & Water & Water & Wastewater Wastewater Wastewater Wastewater InfrastructureInfrastructureInfrastructureInfrastructure
Electro Electro Electro Electro Mechanical Mechanical Mechanical Mechanical Equipment Equipment Equipment Equipment SuppliersSuppliersSuppliersSuppliers
EPC EPC EPC EPC ContractingContractingContractingContracting
Water & Water & Water & Water & Wastewater Wastewater Wastewater Wastewater Technology Technology Technology Technology ProvidersProvidersProvidersProviders
Financial Financial Financial Financial ServicesServicesServicesServices
Advisory Advisory Advisory Advisory ServicesServicesServicesServices
Design and Design and Design and Design and Planning Planning Planning Planning ServicesServicesServicesServices
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Conclusion
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Growth and Competitive Factors to Leverage Business Opportunities in the MENA Region
LEVERAGING OPPORTUNITIES
Growth Factors
Competitive Factors
Water Scarcity
Increasing Economical
Activities
Increase in Population & Urbanization
Demand for Water Distribution Networks
Emphasis on Recycle & Reuse
projects
Investments in Desalination
projects
Leveraging Partnerships
Value Engineering
Cost-effective technologies to
cater to the mass market
Offer Advanced Treatment
Technologies
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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.
Moving forward, MENA region would witness Moving forward, MENA region would witness
tremendous development in wastewater tremendous development in wastewater
collection & disposal networks and in enhancing collection & disposal networks and in enhancing wastewater treatment capacities.wastewater treatment capacities.
MENA is expected to see a rise in projects based MENA is expected to see a rise in projects based
on BOO, BOOT, and BOT models to overcome on BOO, BOOT, and BOT models to overcome financial constraints. financial constraints.
Promising years are ahead for the domestic and Promising years are ahead for the domestic and
international water & wastewater infrastructure international water & wastewater infrastructure
developers in MENA and particularly in Saudi developers in MENA and particularly in Saudi Arabia, UAE and Egypt.Arabia, UAE and Egypt.
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For Additional Information
Tanu Chopra
Asst. Manager - Corporate Communications - MENA
(91) 22 66072037
Sasidhar Chidanamarri
Industry Manager
Environment & Building Technologies
(91) 44 66814456
Nideshna Naidu
Industry Analyst
Environment & Building Technologies
(91) 44 66814366
Ravinder KaurAssistant ManagerCorporate Communications- South Asia+91 44 6160 [email protected]