meed-logo

line1 line2 line3
SIGN IN / REGISTER

Water developers adopt selective stance

19 September 2024

 

UAE-based utility Sharjah Electricity & Water Authority (Sewa) and Saudi water offtaker Saudi Water Partnership Company (SWPC) each received a single bid for their recently tendered independent water producer (IWP) projects.

An all-local team comprising Acwa Power, Haji Abdullah Alireza & Company (Haaco) and AlSharif Contracting & Commercial Development submitted the sole proposal for the contract to develop the Jubail 4 and 6 IWP schemes in Saudi Arabia.

This is a far cry from the four bids SWPC received in 2020 for a contract to develop and operate the Jubail 3B IWP.

However, the fact that SWPC received only two bids for the contract to develop the smaller Ras Mohaisen IWP in April this year indicates that utility or water developers and investors have increasingly adopted a more selective stance when it comes to bidding for new projects.  

"Combined, Jubail 4 and 6 is a large project and most developers are tied up with other ones, as there are many IWPs under way at the moment, not only in Saudi Arabia but throughout the GCC," says Robert Bryniak, CEO at Dubai-based Golden Sands Management (Marketing) Consulting.

The Jubail 4 and 6 seawater reverse osmosis (SWRO) plants will have a total combined capacity of 600,000 cubic metres a day (cm/d) and will be developed under one contract.

In comparison, the Ras Mohaisen IWP has a capacity of 300,000 cm/d, while Sewa's Hamriyah IWP will have a capacity of 410,000 cm/d. 

Bryniak says that many developers are at, or near, their capacity and this makes it difficult to make short-term commitments without paying significantly more for skilled workers and key equipment component parts. 

"Developers may be shying away from some of the larger projects because of this, especially knowing that tariffs need to be competitive to win.

"Developers have to spend significant amounts just to bid on a project and, if unsuccessful, this sunk cost needs to be eventually recouped on future projects. And I think this is resulting in developers being more selective in terms of the projects they go after, focusing more on those where they believe they have a good chance of winning."

The case is slightly different for the Hamriyah IWP, which is Sharjah's first major SWRO project to be procured on a public-private partnership (PPP) basis.

Acwa Power submitted the sole proposal for the contract to develop the project in December last year.

"This is Sharjah’s first IWP and, unlike other jurisdictions such as Oman, Abu Dhabi and Saudi Arabia, the emirate has yet to establish a track record with PPPs, especially in power and water," explains Bryniak

Given several false starts and issues with past PPPs, it is likely that developers will shy away and focus their efforts on more established – and financially stronger – offtakers elsewhere in the region.

Known for its strong risk appetite, Acwa Power signed the water procurement agreement with Sewa earlier in September and a team of France's Sidem and its parent company Veolia has been selected as the project's engineering, procurement and construction contractor.

This means discussions with banks and financial institutions could be nearing their conclusion, leading to the start of the project's construction. 

Once the Hamriyah IWP reaches financial close and commercial operations, Bryniak says Sewa should be able to attract more developers for future IWPs. 

Going forward, procurers could also consider adopting new or additional measures to attract more developers to their future IWP projects and avoid incurring higher tariffs.

A UAE-based executive with an international developer says that in some cases the quality of the request for proposals (RFPs) being issued can be improved.

MEED understands some of the recent RFPs lack comprehensive information or details, which leads contractors to add higher contingency costs to cover risks. 

Bryniak concurs, adding that going forward, procurers throughout the GCC will need to spend more time and effort marketing and promoting their IWPs, and will need to be more selective in terms of timing, in order to optimise competition.

"They may also need to consider modifying their procurement processes to attract more bidders. Otherwise, they might continue to realise only one or just a few bidders, with likely higher tariffs in the near term."

https://image.digitalinsightresearch.in/uploads/NewsArticle/12557172/main5039.gif
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Populous wins Bahrain Sports City contract

    21 April 2026

     

    US-based engineering firm Populous has won a BD5m ($13.5m) contract for the Sports City development at Sakhir in Bahrain.

    The contract was awarded by Bahrain’s Ministry of Works, Municipalities Affairs & Urban Planning.

    The scope covers pre-contract consultancy services, including finalising the masterplan and internal infrastructure, completing phase 1A design works and preparing tender documents.

    Populous is a specialist sports venue designer that formerly operated as part of HOK Group.

    The contract was first tendered in 2021, when Populous emerged as the sole bidder.

    At the time, it was reported that Sports City would include Bahrain’s largest sports stadium and a multi-purpose indoor sports arena.

    The project is expected to provide renewed impetus to Bahrain’s construction and transport sector, which has struggled in recent years, with the total value of awarded contracts falling for a third consecutive year.

    According to regional project tracker MEED Projects, about $400m-worth of contracts had been awarded in Bahrain by the end of October last year – less than half the $1.2bn recorded during the same period the previous year.

    The sector has yet to return to pre-pandemic levels. Before 2020, Bahrain consistently awarded more than $2bn in contracts annually, peaking at nearly $4bn in 2016.

    Bahrain’s construction industry is forecast to record average annual growth of 4.9% in 2026-29, supported by investments in transport infrastructure and renewable energy projects aligned with Bahrain’s Economic Vision 2030.

    Vision 2030 includes the BD11.3bn ($30bn) Strategic Projects Plan, unveiled in October 2021, encompassing 22 national infrastructure projects. It also includes plans to create five new cities by 2030: Fasht Al-Jarm, Suhaila Island, Fasht Al-Azem, Bahrain Bay and the Hawar Islands.

    Growth over the forecast period is also expected to be driven by investments under the National Renewable Energy Action Plan, which targets a 30% reduction in carbon emissions by 2035, compared to 2015 levels, and aims to achieve net-zero emissions by 2060.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16487784/main.jpg
    Yasir Iqbal
  • Entries now open for MEED Projects Awards 2026

    21 April 2026

    Enter the awards

    The MEED Projects Awards in association with Mashreq 2026 have officially opened for entries, inviting companies, developers, contractors and project teams to submit their projects for the region’s most prestigious construction awards.

    For over 15 years, the MEED Projects Awards have celebrated the Middle East and North Africa’s most ambitious and transformative projects, recognising technical excellence, innovation, sustainability and delivery impact. Past editions have highlighted landmark developments that set new benchmarks for the region’s built environment, including internationally recognised projects such as Burj Khalifa and Louvre Abu Dhabi.

    “The MEED Projects Awards are the gold standard for recognising outstanding achievements in construction across Mena, showcasing the region’s technical and design excellence while bringing the industry together to celebrate and connect over the very best projects of the year,” said Ed James, head of content and research at MEED.

    “As a long-standing partner of the MEED Projects Awards, Mashreq is proud to support a programme that is recognised for its independence, credibility and industry impact. These awards celebrate projects that set benchmarks for excellence and contribute meaningfully to the region’s development,” said Arun Mathur, executive vice-president and global head of contracting finance at Mashreq.

    Winners are chosen through a rigorous, independent judging process, led by a panel of more than 50 senior industry experts representing developers, contractors, engineers and project specialists. The awards celebrate projects across a wide range of sectors, including Building, Transport, Energy, Water, Healthcare, Education, Hospitality, Culture, Industrial, Power, Small Projects and Developments.

    Being shortlisted or winning a MEED Projects Award places a project among the region’s elite, offering regional recognition, global exposure and industry credibility.

    Submissions are now open, with full category details and entry guidelines available on the official entry platform.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16487756/main.gif
    MEED Editorial
  • Work advances on Saudi Maaden mine renewables project

    21 April 2026

     

    Local contractor Arabian Qudra Company is advancing construction works on an integrated solar photovoltaic (PV) and battery energy storage system (bess) project at the Al-Baitha bauxite mine in Saudi Arabia.

    The off-grid facility will integrate an 8MWp solar PV array with a 30MWh bess, allowing the mine to operate almost entirely on renewable energy.

    Emerge, a joint venture of Masdar and EDF Power Solutions, is developing the project, including managing financing, design, procurement, construction, operation and maintenance.

    Last August, MEED reported that Maaden Bauxite & Alumina Company (MBAC), a subsidiary of Saudi Arabian Mining Company (Maaden), had signed a 30-year power purchase agreement with Emerge to supply its Al-Baitha bauxite mine with renewable energy.

    Arabian Qudra Company was subsequently appointed as the engineering, procurement and construction (EPC) contractor, with works beginning at the start of 2026.

    The firm is a subsidiary of Abunayyan Holding Company, a privately owned Saudi industrial group.

    The project is expected to generate around 17,300MWh of electricity annually and provide a continuous 24/7 power supply. It will reduce carbon dioxide emissions by approximately 13,800 tonnes a year.

    According to projects tracker MEED Projects, construction is expected to be completed in early 2028.

    Maaden Solar 1

    Maaden is also in the early stages of developing Maaden Solar 1, potentially the world’s largest solar process heat plant. 

    MEED previously reported that US-based GlassPoint had partnered with Saudi Arabia’s Ministry of Investment as a first step towards construction of the planned $1.5bn project.

    In 2025, Spain-headquartered Cox Energy signed a collaboration agreement with the client to participate in the project. The client had been expected to invest approximately $31.1m in the first phase of the project.

    Once complete, Maaden Solar 1 will be a 1,500 megawatt-thermal (MWth) facility. A timeline for the project remains unclear, with construction not expected to begin until at least 2027.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16487404/main.jpg
    Mark Dowdall
  • Egypt to build Olympic Village project on Red Sea

    21 April 2026

    Egypt has moved to back a major new sports development on the Red Sea coast, officially assigning a 225-acre plot for a planned Olympic Village in the Red Sea Governorate.

    The site is located opposite the resort destination of El-Gouna, giving the project access to an established tourism corridor.

    The development is intended to strengthen Egypt’s ambition to become a hub for international sports tourism, with facilities designed to support large-scale regional and global championships.

    Plans include stadiums and purpose-built arenas designed to meet Olympic-level requirements, enabling the complex to accommodate multiple sports and event formats.

    To support visiting delegations and spectators, the Olympic Village is expected to include on-site hospitality facilities, including a hotel.

    The project is intended to operate as an integrated, self-contained destination capable of staging regional and international tournaments, while also leveraging the Red Sea’s year-round appeal for camps, friendlies and seasonal training programmes.

    According to UK analytics firm GlobalData, Egypt’s residential construction sector is expected to grow by 8.3% from 2026 to 2029, supported by investments in the housing sector and the government’s focus on addressing the country’s growing housing deficit amid a rising population.

    The commercial construction sector is expected to register real-term growth of 6.6% in 2026-29, supported by a rebound in the tourism and hospitality markets and an improvement in investment in office buildings and wholesale and retail trade activities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16485900/main.jpg
    Yasir Iqbal
  • Algeria launches oil and gas licensing round

    21 April 2026

    Algeria has launched a new bid round offering seven exploration blocks to international companies.

    The round was launched by the National Agency for the Valorisation of Hydrocarbon Resources (Alnaft), which manages and regulates the upstream oil and gas sector in the country.

    The blocks are located in the regions of Ouargla, Illizi, Touggourt and El-Bayadh. Both oil and gas assets are included.

    The blocks on offer are:

    • Est Bordj Omar Driss 1
    • Illizi Centre 1
    • El-M’Zaid Nord
    • El-Borma 2
    • El-Hadjira 3
    • El-Benoud Est
    • Touggourt Sud

    Technical evaluation of bids will cover exploration, development and production optimisation plans.

    All bids – except those for Est Bordj Omar Driss 1– will also be assessed against financial criteria, including the bidder’s participation rate in financing upstream operations.

    Successful bidders will access the assets through contracts with Sonatrach, either via production service agreements or participation agreements, depending on the block.

    Algeria is currently seeing an uptick in demand for its gas exports due to the disruption to exports from Qatar and the UAE in the wake of the US and Israel’s attack on Iran on 28 February.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16478927/main.png
    Wil Crisp