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A leading Middle East utilities analyst has predicted growth ahead for the regions utilities infrastructure.
In an article published exclusively on ArabianOilandGas.com, Walid Fayad, principal management consultant covering the energy, chemicals and utilities sectors for Booz & Company said that despite the current financial downturn, the Middle East would forge ahead with many projects to address shortages and cope with demographic and economic growth.
“The GCC will require the addition of nearly 60 gigawatts of power capacity by 2015, as well as twice as much desalination capacity,” Fayad said.
“The region’s wastewater collection and sewage treatment capacity also need to be addressed, with wastewater treatment capacity not exceeding 25% of domestic and industrial water use in the GCC, and 15% across the broader Middle East,” he added.
Fayad also said that the easing off of global credit lines should ensure that the region’s utilities mega projects should find the necessary finace to get off the ground.
“With the recent easing in credit markets, a number of projects will unlock during the next 12 months,” Fayad said.
”The Al Dur IWPP in Bahrain, for instance, was delayed several months as raising long-term debt was not possible during the crisis; closing is now imminent, although with a mini-perm structure.”
In Saudi Arabia, the Rabigh Independent Power Project (IPP) is expected to close by July 2009 with oversubscription of the US$1.9 billion debt,” he added.
