Egypt’s water revenues seen at $2.37bn
Dubai, June 30, 2011
Egypt’s water and wastewater sector earned revenues of $1.35 billion in 2010 and is estimated to reach $2.37 billion in 2015 due to the increasing water demand in the region, said a report.
With Egypt’s population projected to grow from 83 million in 2010 to 95 million in 2015, the country’s water resources should be bolstered to deal with the surge in demand for fresh water, said new analysis from Frost & Sullivan, “Assessment of Water and Wastewater Sector in Egypt”.
Worldwide, the average water availability is approximately 7,000 cu m per person per year, whereas in Egypt, it is 860 cu m per capita per year. If this state of affairs persists, water scarcity will reach critical levels, and the per capita availability will reduce by half by 2050.
This alarming drop in water availability will be of considerable interest to the water and wastewater sector, as the situation offers abundant opportunities for the development of water and wastewater treatment and distribution and collection networks in the country, the report said.
As fresh water availability is forecast to decline in the coming years, utilities are focusing on wastewater treatment and its recycle and reuse, said Frost & Sullivan's expert analysts.
The Egyptian water and wastewater sector has experienced significant investments, especially from private participants, and it holds promise for both domestic and international water and wastewater infrastructure developers, the report said.
“The rising emphasis on the development of the water and wastewater sector due to the substantial infrastructure investments is expected to result in an increase in desalination capacity,” said Frost & Sullivan Environmental Research Analyst.
“The government approved the public-private partnership (PPP) law in April 2010, and is expected to lay the foundation for privately financed and operated water projects in the waste water and desalination sectors.”
Although the inflow of investments bodes well for the sector, participants will be pressured by the challenges such as the lack of connected sanitary sewers, poor operation and insufficient wastewater treatment facilities.
While these inadequacies have led to poor water quality and scant infrastructure and municipal services.
Alongside, swelling water demand in the neighbouring countries has led to intensifying regional tensions. The Egyptian Government has acknowledged these issues and intends to resolve them by introducing new water systems in more than 4,600 villages and extending sewer services to all urban areas. These large-scale projects offer ample scope for potential investors and developers in the sector.
Meanwhile, technology providers in the sector should seek partnerships with consultants and engineering, procurement and construction (EPC) contractors that are offering cost-effective technologies, according to the report.
“They should also consider offering value additions in terms of incremental improvements in design and engineering, operation and maintenance, and on-the-job staff training,” noted the Analyst.
“These enhancements will have significant impact on the overall cost of the solution without compromising its performance.” – TradeArabia News Service