JEDDAH, 5 June 2006 — The second Jeddah Water and Power Forum 2006 is being held under the theme “New investment opportunities for Saudi and foreign companies” on Nov. 11-14 to present not only the investment projects available in Saudi Arabia but also the latest in water technology. Around 700 participants are expected to attend from 39 different countries to listen to over 30 papers by Saudi and international specialists.
“Our goal is to make this international annual forum a destination for every official and businessmen to review the latest investment opportunities and technologies in this sector to benefit all societies,” said Dr. Adil Bushnak, chairman of the steering committee for the forum and chairman of the facilities and infrastructure committee at Jeddah Chamber of Commerce and Industry, at a press conference yesterday at the chamber.
Demand for electric power in the Kingdom is increasing by 5.5 percent annually and experts estimate the required investment to meet the demand in the next two decades to be are around $117 billion in addition to $100 billion in the water sector. Bushnak said that the size of the announced investments for future projects in the different sectors serving Saudis for the coming 15 years reached $624 billion. “With the rise of oil price and the entry of Saudi Arabia in the World Trade Organization, the forum opens numerous and different opportunities for investments,” he said. The forum focuses on privatization and the Saudi system in the water sector, water and power projects, investment opportunities and financing, water technology and rationalizing water usage, partnership between the private and public sector and the administrative requirements by suppliers.
“Among the biggest challenges facing the sector is its fast growth, the huge financing needed and the desire to raise service standards and this requires gaining from international expertise while allowing also local businesses to enter this sector and develop,” said Dr. Saleh Al-Awaji, deputy minister for electricity at the Ministry of Water and Electricity. Loay Al-Musallam, deputy minister for planning and development at the ministry said that the ministry has made major strides in restructuring and privatizing the sector especially in the major cities of Riyadh, Jeddah, Dammam and others with contracts about to be offered to the private sector soon. “Within about three months, the administration contracts system would be announced. By mid 2007 a major contract for Riyadh would be offered and by early 2008 a contract for Jeddah. Also, we are in the final stages of establishing the National Water Company. During the first five years of the company it will be government owned and afterwards it would be determined the nature of the private sector’s participation in it,” he said. There are also projects for over 300 dams at a cost of SR3 billion to be offered in the rural areas.
Asked about using nuclear power, Dr. Al-Awaji said that currently there is no consideration of that in the Kingdom and there is no need. On the other hand, there is a need to focus on water treatment projects, rationalizing water consumption where the Kingdom is one of the highest consumers per capita and addressing water leakage which is also very high.
The Saudi Electricity Company also has some projects to offer for investment to the private sector, according to Fouad Al-Sherebi, and these include seven electric generating stations for SR30 billion at different regions in the Kingdom as well as 9 transport projects. The Saline Water Conversion Corporation will be offering desalination projects soon too. It estimates $43 billion is needed for future desalination projects.
An exhibition will be accompanying the forum with the participation of 110 companies and international organizations presenting the products, services and expertise. A Saudi-French-German seminar will precede the opening of the forum during which leading research companies and institutions from the three countries will present the latest solutions in water technology and opportunities for new projects.
The Kingdom’s total water supply reached 52 million square meters daily in 2005, 60 percent of it by desalination plants. Estimate of water demand is an average of 6 million square meters daily expected to reach 9 million square meters daily by 2024, whereas the water currently produced by the water desalination plants is 4 million square meters daily. As for electricity, the generated electricity power reached by the end of 2005 to around 32 megawatts, all thermal, whereas the demand is increasing by 5.5 percent annually. An investment of $117 billion is needed to increase electricity power to 67 megawatts by 2023. Saudi Arabian General Investment Authority (SAGIA) reported an increase in 2005 of licenses of water and electricity projects by 168 percent from what was expected for the 2005 plan. Total financing for these projects reached $3.6 billion in 2005 compared to $2.1 billion in 2004, most significant of which is the Shuaiba project — the third phase — as it was the first independent water and electricity generating projects, a Saudi Malaysian partnership with total investment of $2.4 billion and production capacity of 800 square meters of water daily and 900 megawatts of electricity.
The forum is organized by the Jeddah Marketing Board, a subsidiary of Jeddah Chamber of Commerce and Industry, in cooperation with the British CWC Group under the patronage of Prince Abdul Majeed, governor of Makkah region, and with the support of the Ministry of Water and Electricity, Saudi Electricity Company, the Water and Electricity Company and the Saline Water Conversion Corporation.