It was inevitable the two companies would come together at some point because of their natural complementary skills and markets,” explains Geraldine Hurley, chief operating officer, Flovac Middle East
The Australian company had been installing its vacuum sewage collection technology at sites across the Middle East for nearly nine years before teaming up with Metito. But it increasingly found clients wanted the collection and treatment of wastewater be carried out by one utility.
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Unable to offer the whole package alone, the business synergies with Metito became apparent and the two firms decided to combine forces to offer a turnkey sewerage solution for developers, municipalities and water authorities.
Under the agreement, Flovac is responsible for collecting the wastewater, which Metito, the leading shareholder in the 51:49 joint entity, then treats for reuse. “The concept is that Metito is familiar with the region and with the treatment of sewage and water and Flovac now complements that with their expertise in the collection of sewage,” says Rami Ghandour, executive director, Metito.
Flovac Middle East likes to bill itself as a one-stop shop for wastewater collection and treatment. Using Metito’s network of offices across the region, the joint venture has hit the ground running and is already working on five major projects, including Dubai Festival City and the Reef Island development in Bahrain.
The team foresees strong demand for the vacuum series system in the Middle East and believes the market will be worth at least US $1 billion over the next five years, as developers discover the cost-savings and environmental benefits of the technology.
Flovac estimates its system can bring up to a 50% reduction in construction time and a 20% saving on infrastructure capital compared to traditional gravity-flow sewers, as fewer pumping stations are required and the equipment is easier to install. The technology was originally designed to suit the hot, sandy conditions found in Australia.
This, according to John Radinoff, managing director, Flovac Vacuum Systems, makes it ideal for use in the Middle East: “The environmental conditions in Australia are very similar to what you find here – with flat, sandy, rocky ground and a high water table. Our vacuum systems excel in the sort of conditions that prevail in the Middle East.
The newly formed company is looking to capitalise on the region’s construction boom. “The market potential is great. The Flovac system is very environmentally friendly, ideal for developers – it uses less water, less energy. It is quicker to install and, best of all, it is completely odourless,” says Metito CEO, Mutaz Ghandour. The team believes the system’s green credentials will make it a market leader once project developers become more switched on to their environmental obligations.
“We really see this type of technology as the system of the future,” says Radinoff. “Gravity sewers have been around for 4 000 years and there have been more and more problems with them. Our systems can be seen as smart systems – we have got wireless communications networks there to be able to identify exactly where potentially you have got leaks in the system and problems occurring, so operators can be immediately notified.
Even when the current building frenzy begins to slow, Flovac Middle East expects demand for its technology to remain high since its flexible design provides developers access to areas that otherwise would be too difficult or too expensive to sewer. As Radinoff explains: “All the very easy land to develop has been done. The first areas people did were where it was easy to put the infrastructure in the ground. What is left now are the difficult ground conditions and coastal areas. And that is where our technology adapts well.
But the company will not just be focusing on winning contracts for new construction projects. The team sees the retrofitting of older, more established cities as another key application for its sewage collection technology.
Many cities, such as Muscat in Oman, are without an effective sewerage system because of the difficulties encountered in installing deep gravity sewers in arid and rocky terrain. Since Flovac’s technology allows pipes to be laid above the ground or in shallow trenches underground, the company expects to see increased interest in upgrading antiquated sewerage systems, as the region’s economies mature and demand for better sanitation grows.
Flovac Middle East believes the new trend of privatising utility services will also play a crucial role in the company’s development. “The current structure of the utilities sector across most of the Middle East is one where it is not coping with growth that has been put in place,” says Rami Ghandour. “The infrastructure across the region is strained because of the fast growth and fast population growth that is taking place. In order to meet that, most of the governments, with some exceptions, cannot do it alone.
It needs the private sector to be actively involved as a partner to be able to sustain that growth and to meet the needs of that growth. We see that as an opportunity for Flovac Middle East.
