WATER
The country's rapid expansion, both demographic and industrial, means the importance of water will continue to be as if not more important that oil for the kingdom in the years ahead.
What is the potential of the Saudi market?
JAVIER DIAZ GOMEZ Market size is extremely important. The Saudi Arabian market has a larger population than any country in the region, and truly is the most important market in the region. Additionally, the geographical size of the country requires a much larger investment of time and capital; companies willing to make these investments will be able to capitalize on the country's rich wealth of opportunity. We were the first Spanish private company to be awarded a non-revenue water contract. This means we try to optimize the network to avoid leaks. We were awarded this contract because we are one of the top-10 firms in the world in the field of water management. Our core business is managing sewage and water networks for cities, and we have extensive experience and world-class expertise. In Spain, for example, we manage the sewage and water systems of more than 1,000 cities. In countries where there are major water scarcities, it is important to reduce water consumption and properly manage water resources. Really, our extensive experience and long history of success was why we were awarded contracts in Saudi Arabia.
RAMI MOUSILLI The country's population growth, industrial expansion, and sprawling development mean there is an ever-increasing demand to increase efficiency and upgrade the capacity of Saudi Arabia's current water and power infrastructure. The national transformation program (NTP) 2020 was mandated to fulfill the requirement of Saudi Arabia's Vision 2030 to make the Kingdom a global investment powerhouse and epicenter of trade connecting Europe, Asia, and Africa. This called for a substantial increase in non-oil revenues and exports by diversifying the economy, increasing efficiencies, and meeting the demands for expansion. In line with these targets, the relevant governmental and semi-governmental bodies underwent complete restructuring to meet them across all aspects of operations. In the power sector, the mandate to diversify the energy mix has driven governmental bodies to initiate grid-integrated renewable energy projects on a wide scale, which will help alleviate air pollution, reduce fossil fuel consumption, and contribute to peak load demand. Vis-à-vis, on the water sector side, the targets to reduce water loss, increase efficiencies, raise the tariff to cover actual costs, increase service coverage, and meet future demands has opened up the field for vast and wide ranging privatization initiative. The restructuring of water and power sector and privatization initiative undertaken by the Kingdom to address the solution to these issues and to meet Vision 2030 target goals are materializing through several major BOT, ROT, and BOO in the brownfield and greenfield projects. Moreover, Saudi Arabia enjoys a high credit rating, stability, and the required regulatory platform to facilitate implementation of PPPs.
What are your expectations for the coming years?
JDG For us, 2017 will be a transitional year. Many governmental agents are announcing their intentions to begin new projects this year, but we know that these types of initiatives take time to develop and implement. These are huge changes that need massive adjustments on the legal and financial side. This will be a major issue both this and next year and will take time to address. We will see major changes by the middle of 2018, but not before. Aqualia has a number of projects with all of the water works institutions, so 2017 is fully loaded in terms of projects. While 2016 was a poor year for tenders, right now we are in a good position. We hope that in the coming weeks we will have even more projects confirmed, especially in water management.
RM Our strategic goal for the year ahead and the future in general is to maintain our lead by continuing to expand our market share and formulate strategic partnerships with governmental and international stakeholders. We are anticipating several BOT, ROT, BOO, and concessions to be released this and the next year, which will be our main focus to transform Alkhorayef Water and Power Technologies into a major regional developer.
WATER
TABLE OF CONTENTS
Column
YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister’s Office & Second Minister of Foreign Affairs and Trade, Brunei
TBY talks to YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister's Office & Second Minister of Foreign Affairs and Trade, Brunei, on the sector.
read articleReview
A Crude Awakening
The Kingdom has made renewables a critical aspect of its ambitious Vision 2030 effort to diversify its economy and wean itself from a strictly carbon-based diet, not to mention empower local businesses and individuals to take up the mantle and lead the energy sector into the next generation.
read articleInterview
Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) , Saudi Aramco,
TBY talks to Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) at Saudi Aramco, on the IKTVA program, supporting local content, and looking back over a successful year.
read articleInterview
Ayman Abdullah Alfallaj, CEO, Thiqah
TBY talks to Ayman Abdullah Alfallaj, CEO of Thiqah, on how the private sector can keep pace with the speed of public reforms, delivering a strong and lasting value proposition, and integrating the fruits of privatization into the public sector.
read articleFocus: Technology Investments
Investment Calling
A technological revolution is underway in the Kingdom. Already one of the most tech-savvy nations in the Middle East, the Saudi market has long sought a thriving domestic technology and innovation scene. And with Vision 2030, it is on course to deliver just that.
read articleReview
A Hejaz Unhindered
An ambitious series of road and rail projects from the Jordanian border down to the Indian Ocean are slated to open in part before the end of 2017. They bring the Kingdom that much nearer to its goal of greater non-carbon-based economic integration with the world.
read articleInterview
Rumaih M. Al-Rumaih, President, Public Transport Authority (PTA
TBY talks to Rumaih M. Al-Rumaih, President of Public Transport Authority (PTA) & Acting President of Saudi Railway Organization, on teaming up with commercially committed partners, making sure the Kingdom's land and sea bridges are of the first order, and providing employment for all the Kingdom's inhabitants.
read articleInterview
Khaled Bin Abdullah Al Hogail, CEO & Managing Director , Saudi Public Transport Company (SAPTCO)
TBY talks to Khaled Bin Abdullah Al Hogail, CEO & Managing Director of the Saudi Public Transport Company (SAPTCO), on the importance of strong and rational regulations, knowledge transfers, and unifying public and private transportation networks.
read articleInterview
Imad El-Zein, CEO, Auto World-Sixt Saudi Arabia
TBY talks to Imad El-Zein, CEO of Auto World-Sixt Saudi Arabia, on growing market share in challenging circumstances, partnering with world-class players to boost its local presence, and combining better services with lower costs.
read articleInterview
Saleh H. Al-Ghamdi, Acting CEO, Saudi Air Navigation Services Company (SANS)
TBY talks to Saleh H. Al-Ghamdi, Acting CEO of Saudi Air Navigation Services Company (SANS), on maximizing safe and effective services, effectively increasing the rate of Saudization, and easing the pathway of women into the workforce.
read articleInterview
Khalil Kutubkhanah, CEO, Jeddah Development and Urban Regeneration Company (JDURC)
TBY talks to Ibrahim Khalil Kutubkhanah, CEO of Jeddah Development and Urban Regeneration Company (JDURC), on Jeddah's unplanned settlements, the company's redevelopment projects, and its partnership model with the private sector.
read articleInterview
Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister, Planning and Health & Director of the Vision Realization Office
TBY talks to Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister for Planning and Health & Director of the Vision Realization Office, on reforms within the Ministry of Health, the corporatization of healthcare provision, and transformations in care delivery.
read articleInterview
Mohanad A. Dahlan, CEO, University of Business and Technology (UBT) Company
TBY talks to Mohanad A. Dahlan, CEO of University of Business and Technology (UBT) Company, on the evolution of the company, education investments, and upcoming sectors that will need support from the sector.
read articleFocus: Universities
Broad and Deep
As part of the continuing decentralization of higher education in Saudi Arabia, individual universities are pursuing their own paths to grow their faculties, engage with various international stakeholders, and ultimately move toward a more privatized future.
read articleInterview
Rafique Izhiman, Area General Manager KSA Jeddah, Yanbu Hotels
TBY talks to Rafique Izhiman, Area General Manager KSA Jeddah/Yanbu Hotels & General Manager, Intercontinental Hotel Group (IHG), Jeddah, on the role the firm plays in the market, expanding its footprint in the country, and expectations for 2017.
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