UAE's water project investments jump 20%
UAE's investments on water projects have increased by 20 per cent from $11.62 billion in 2007 to $14bn in 2008. The number of projects, which leapfrogged from 39 to 55 to date, is expected to rise further due to continuous increase in population and sustained economic activities.
According to data from projects information specialist ProLeads, ongoing and planned water projects in the country have already touched $14bn, half of which has been dedicated for processing waste water while water generation and transportation account for 36 per cent and 13 per cent, respectively.
The figures, seen by Emirates Business, show that about 26 per cent of the new generation capacity would come from Abu Dhabi Water and Electricity Agency (Adwea). The state-owned agency is shelling out $1.3bn for the expansion of its five existing desalination plants; one is scheduled for completion within this year, the other one next year and the remaining three by 2010.
According to projections made by Adwea, demand for water in Abu Dhabi is slated to grow by 43 per cent in the next five years, while the demand for electricity will almost double in this period.
Under Adwea's five-year strategy, the agency will increase its water production from the current 626 million gallons per day to 969m gallons by 2013.
Currently the Umm Al Nar desalination plant produces 165m gallons, the Taweelah plant 231m gallons, Al Marfa plant 39m gallons, Al Shuweihat plant 101m gallons and Al Fujeirah plant 90m gallons per day.
Abu Dhabi Water and Electricity Company (Adwec) – the single buyer and seller of electricity and water in the UAE's capital – said the thirst for more water was a result of the changes in land ownership laws during 2005 and the constant release of surplus oil revenues for major infrastructure developments and mega projects.
"Development boom will require significant quantities of extra electricity and water capacity over and above the normal developments assumed in past Adwec demand forecasts," Keith Miller, Adwec head of planning and studies department, told a recent conference.
The agency has developed three demand forecasts considering the schedules of mega-projects, the number of new expatriates and the number of projects that are to be announced.
Under the high demand forecast where developers' original schedules are followed, Adwea expects a 33.25 per cent increase in demand. The agency expects 28.5 per cent and 23.125 per cent in most-likely demand and low-demand forecast, respectively.
Dubai Electricity and Water Authority (Dewa), on the other hand, is spending Dh1.23bn on water projects, 80 per cent of which is dedicated for water generation and transportation and 20 per cent for processing. Overall, Dubai's projects are already nearing $7bn and in an interview with this newspaper, Dewa Managing Director and CEO Mohammad Al Tayer said Dewa would further invest Dh100bn by the end of this decade on water and power projects.
Sharjah and Ajman's spending currently stands at $1.166bn and $357m, respectively, while Fujairah projects are put at$856m.
Energy consumption in the UAE has sucked up 25 per cent of Gulf water – a fifth of which has been used for electrical energy, while over 100 energy generating projects are currently being developed in the region.
According to Abdullah Al Amiri, Chairman of the Emirates Energy Awards, a subsidiary of Dubai Quality Group, the UAE will need $10bn to satisfy energy demand for the next ten years, due to increasing land developments and projects that increase by 12 per cent each year.
Due to the steep increase in demand for water in the GCC countries, and with conventional water resources such as fresh surface water and renewable groundwater extremely limited, alternative sources such as wastewater reclamation and desalination have been adopted since the 1960's.
Official statistics show that Saudi Arabia, the world's largest producer of desalinated water, accounts for some 30 per cent of global water production, pumping almost 600m gallons per day, which meets 70 per cent of the Kingdom's drinking water needs. It also produces 5.5m cubic metres per day of drinkable water and treats two million cmd of wastewater.
However, an estimated $53bn is required to increase its desalination capacity to 10.7m cubic metres per day by 2020 to meet demand.
Increasing water production is, however, not an easy task. According to World Bank, the Middle East has five per cent of the world's population but only one per cent of the water, adding that there would be a dramatic decline in water availability in the region.
The World Bank estimated that per capita water availability in the region will fall by at least 50 per cent by 2050 and warned of serious social and economic consequences if countries do not adapt their current water management practices.
Even today, the region, which is 85 per cent desert, is one of the most arid on earth. According to a World Bank report, inefficient water management currently costs economies in the region approximately 1 per cent to 3 per cent of gross domestic product every year.
It said governments in the region actually spend a considerable amount of money on the water sector, but not in the most efficient manner.
According to data from projects information specialist ProLeads, ongoing and planned water projects in the country have already touched $14bn, half of which has been dedicated for processing waste water while water generation and transportation account for 36 per cent and 13 per cent, respectively.
The figures, seen by Emirates Business, show that about 26 per cent of the new generation capacity would come from Abu Dhabi Water and Electricity Agency (Adwea). The state-owned agency is shelling out $1.3bn for the expansion of its five existing desalination plants; one is scheduled for completion within this year, the other one next year and the remaining three by 2010.
According to projections made by Adwea, demand for water in Abu Dhabi is slated to grow by 43 per cent in the next five years, while the demand for electricity will almost double in this period.
Under Adwea's five-year strategy, the agency will increase its water production from the current 626 million gallons per day to 969m gallons by 2013.
Currently the Umm Al Nar desalination plant produces 165m gallons, the Taweelah plant 231m gallons, Al Marfa plant 39m gallons, Al Shuweihat plant 101m gallons and Al Fujeirah plant 90m gallons per day.
Abu Dhabi Water and Electricity Company (Adwec) – the single buyer and seller of electricity and water in the UAE's capital – said the thirst for more water was a result of the changes in land ownership laws during 2005 and the constant release of surplus oil revenues for major infrastructure developments and mega projects.
"Development boom will require significant quantities of extra electricity and water capacity over and above the normal developments assumed in past Adwec demand forecasts," Keith Miller, Adwec head of planning and studies department, told a recent conference.
The agency has developed three demand forecasts considering the schedules of mega-projects, the number of new expatriates and the number of projects that are to be announced.
Under the high demand forecast where developers' original schedules are followed, Adwea expects a 33.25 per cent increase in demand. The agency expects 28.5 per cent and 23.125 per cent in most-likely demand and low-demand forecast, respectively.
Dubai Electricity and Water Authority (Dewa), on the other hand, is spending Dh1.23bn on water projects, 80 per cent of which is dedicated for water generation and transportation and 20 per cent for processing. Overall, Dubai's projects are already nearing $7bn and in an interview with this newspaper, Dewa Managing Director and CEO Mohammad Al Tayer said Dewa would further invest Dh100bn by the end of this decade on water and power projects.
Sharjah and Ajman's spending currently stands at $1.166bn and $357m, respectively, while Fujairah projects are put at$856m.
Energy consumption in the UAE has sucked up 25 per cent of Gulf water – a fifth of which has been used for electrical energy, while over 100 energy generating projects are currently being developed in the region.
According to Abdullah Al Amiri, Chairman of the Emirates Energy Awards, a subsidiary of Dubai Quality Group, the UAE will need $10bn to satisfy energy demand for the next ten years, due to increasing land developments and projects that increase by 12 per cent each year.
Due to the steep increase in demand for water in the GCC countries, and with conventional water resources such as fresh surface water and renewable groundwater extremely limited, alternative sources such as wastewater reclamation and desalination have been adopted since the 1960's.
Official statistics show that Saudi Arabia, the world's largest producer of desalinated water, accounts for some 30 per cent of global water production, pumping almost 600m gallons per day, which meets 70 per cent of the Kingdom's drinking water needs. It also produces 5.5m cubic metres per day of drinkable water and treats two million cmd of wastewater.
However, an estimated $53bn is required to increase its desalination capacity to 10.7m cubic metres per day by 2020 to meet demand.
Increasing water production is, however, not an easy task. According to World Bank, the Middle East has five per cent of the world's population but only one per cent of the water, adding that there would be a dramatic decline in water availability in the region.
The World Bank estimated that per capita water availability in the region will fall by at least 50 per cent by 2050 and warned of serious social and economic consequences if countries do not adapt their current water management practices.
Even today, the region, which is 85 per cent desert, is one of the most arid on earth. According to a World Bank report, inefficient water management currently costs economies in the region approximately 1 per cent to 3 per cent of gross domestic product every year.
It said governments in the region actually spend a considerable amount of money on the water sector, but not in the most efficient manner.
View on Emirates24|7