Kuwait invests $5.28bn in water projects

Updated 25 August 2013

Kuwait invests $5.28bn in water projects

Kuwait Financial Centre (Markaz) recently published the executive summary of its report on Kuwait water. In this report, Markaz examines and analyzes the current status of Kuwait water sector. The report highlights the demand, supply and investment trends in the sector. The report also presents the Kuwait water projects scenario, market structure and tariffs and a SWOT analysis of the Kuwait water sector.
The total investment in Kuwait’s water sector between 2005 and 2014 stands at $5.28 billion. Of all water sector investments, water treatment plants saw highest investment at $3.4 billion. In 2010 many projects were undertaken and finished. The construction of Sabiya distillation plants projects Stage I & Stage II, Shuaiba north distillation plants and Shuwaikh Reverse Osmosis Desalination Plant took place.
The construction of Az-Zour North Distillation Plant Project is a huge and much awaited one in Kuwait. The purpose of this project is to supply and erect 15 multi stages flash distillation units each of 17 MIGPD capacity with a recarbonation plant, in addition to one Reverse Osmosis Desalination Plant having 25 MIGPD capacity, that is having total capacity of 280 MIGPD for the plant.
Kuwait recorded the highest water consumption per capita per day and the value was 500 liters. In terms of its water withdrawal, Kuwait seems to be low at 374 m3 per year per capita, but the availability of renewable water resources stands at 7 m3 per year per capita, which is also very low compared to its GCC peers.
Potable water is mainly consumed by municipalities as potable water finds its use among residential places. Potable water consumption in 2011 stood at 128,236 MIG (million imperial gallons). Municipalities are mainly urban cities and the urban population in Kuwait is increasing rapidly. With increasing population and changing usage trends, the consumption of potable water is estimated to be 142,230 MIG in 2015. This value highlights the heat of demand for fresh water in near future.
Agriculture is also a major sector that withdraws substantial amount of water. Sulaibha farms are government owned farms, which are supplied with brackish water. Brackish water is highly saline, which is not suitable for municipal consumption. Brackish water consumed in 2011 stands at 19,265 MIG. Though the arable land in hectares has decreased from 12 to 11 from 2002 to 2008, the crop produce has been exhibiting increasing trend. The crop production index, which is produced by keeping cultivated land area constant, has shown an increasing trend between 2008 and 2011. These all indicate the possibilities for an increase in withdrawal of water by agriculture sector.
On supply side, there are very little internal renewable water resources. The annual precipitation is very meager when compared to the prevailing demand. Desalination and sewage treatment plants are the alternative sources of water. Total desalination capacity as of 2010 is around 423.1 MIGD (million imperial gallons per day). Sewage treatment plants are taken care by Ministry of Public Works. Sulaibha facility is the only plant producing RO treated wastewater as of 2011.
MEW (Ministry of Electricity & Water) owns and operates all existing power and water production facilities, transmission networks and distribution systems in Kuwait and sells electricity and water. Water tariffs are categorized based on type of consumer. It is just 0.02 Kuwait dinar (KD) per 1,000 gallons for Sulaibha farms and it is 0.85 KD for state facilities and companies.

Creditors take action against Al Jaber in decade-long saga

Updated 1 min 52 sec ago

Creditors take action against Al Jaber in decade-long saga

  • The downturn in the Gulf construction sector has triggered a number of corporate restructurings as companies are forced to reschedule debt, raise fresh borrowing or enter insolvency protection

DUBAI: Creditors have started to enforce claims against Abu Dhabi-based Al Jaber Group, in a dispute triggered by a construction downturn in the UAE more than a decade ago.

Al Jaber, a contractor with interests across a range of sectors, has struggled since building up debt in the wake of a UAE real estate crisis and began talks with creditors in 2011.

Abu Dhabi Commercial Bank, which is working as restructuring and security agent, said in a document dated Sept. 21 which was seen by Reuters, that it had instructions from the majority of creditors to proceed with claims against Al Jaber.

A representative for Al Jaber did not immediately respond to a request or comment. ADCB declined to comment.

The move follows delays in restructuring agreements, under which Al Jaber was to appoint a new board and sell companies and assets such as the Shangri-La hotels in Dubai and Abu Dhabi.

In exchange, creditors had agreed to extend the maturity of a 5.9 billion dirhams ($1.61 billion) loan, cut interest rates, and provide additional revolving debt.

The initial enforcement action now being pursued by creditors includes the “acceleration and demand for payment of amounts outstanding” under the previously agreed debt restructuring, a source familiar with the matter said.

Enforcement will also allow creditors to claim against Al Jaber’s chairman under a 4.5 billion dirham loan to the company.

Several UAE companies have sought to extend debt maturities or agree better terms in recent years to avoid defaults, after an oil price crash hit energy services and construction.

The coronavirus crisis has added to the strain and Arabtec Holding, the UAE’s biggest listed contractor, this week will discuss options including dissolution after the pandemic hit projects and led to additional costs.

Meanwhile, Dubai-listed construction firm Drake & Scull is working to reach an agreement with its creditors in an out-of-court process.

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