Professional Documents
Culture Documents
Executive Summary
Yemen
1960
25,000 25,000
Agriculture
20,000 Domestic & 20,000
Industrial
15,000 15,000
25,589
10,000 10,000
14,700
5,000 11,200 5,000
0
1,850 0
1980 1990 2000 2010
Source: MOP 1990; Dabbagh and Abderrahman 1997
Supply Side Drivers
• Water is provided at prices below cost-recovery threshold.
This creates incentives to consume more and supply less.
• In Saudi Arabia, the cost per cubic meter of water ranges
from $0.03 to $ 0.10 depending on the amount used. This
pattern is reflected elsewhere in the region.
• In comparison, the US (where market conditions dictate),
the average cost per cubic meter of water ranges from
$0.35-$0.65. Water
Regulator New Water
Production
Water Tariff Tariff
Cost
US$ per cubic
1.86 0.03 1.33
meter
SR per cubic
7.00 0.11 5.00
meter
Source: GWI
Supply Side Drivers
• End-to-End service provision hampered by
revenue risks
Case Study: Riyadh Source:
42% World Bank
Revenues
Physical
Losses
21%
24%
13%
Billed unpaid Undermetering
Other sectors (1)
• The electricity sector has experienced very similar trends of
increased consumption combined with low cost-recoveries
Other sectors (2)
Electricity Cost & Consumption
US$/KWh
United
0.20 Kingdom
0.18
0.16 Yemen Australia United States
0.14 Cost-Recovery
Spain Threshold
0.12
0.10 Turkey
0.08
Saudi
Arabia
0.06 Jordan
Oman
0.04 Bahrain
Qatar
0.02 UAE Kuwait
0.00
- 5,000 10,000 15,000 20,000 25,000
Kwh/Capita
Source: IEA
Opportunity Landscape (1)
• Desalination plants reaching end of their design life
Capacity,
Cubic Metres
1,200,000
Saudi Arabia: Plant Capacity & Age
1,000,000
940,000
800,000 824,000
600,000
400,000 388,800
317,940
272,000
200,000
40 40
35 35
30 30
25 25
20 39 20
15 29 15
10 10
17
5 8 5
6
0 0
Piped Well Truck Bottled Other
Source: Family Health Survey, 1996
Opportunity Landscape (3)
• Wastewater treatment opportunity in main cities
% wastewater
treatment
Wastewater Treatment % wastewater
treatment
100 100
90 90
80 OPPORTUNITY 80
70 70
60 60
50 50
40 40
30 30
20 20
10 10
0 0
Riyadh Jeddah Madinah Dammam Kharj
Source: Ministry of Water & Electricity, KSA
Value Chain Manufacturing 45%
Customer Operation &
Maintenance
27%
Billing
Installation,
Design, Training
& Support 28%
Network
Storage &
Distribution
Abstraction
Sea Water
PESTLE
Scenario Statement
Parastatal Need takes precedence
above all else
compromise
TRANSITION
Quasi-Public Provision balanced
against fiscal
Private Ownership sustainability
Oman
2008
2015
Saudi
2025
Qatar
Kuwait
Bahrain
0 20 40 60 80 100
Source: Pinsent Masons % participation
Examples of Operating Models
Privately Privately financed and
financed and privately managed
Long-term investment financed by private sector
publicly
managed
50%
Publicly Publicly financed DBO contract
financed and Cambodia
and privately
mostly managed
publicly
managed
20% BOI contract
Paraguay
BOI contract
Colombia
10%
DBL contract
Cambodia
0%
OMM contract OML contract BO contract DBL contract
Uganda Philippines Colombia Philippines
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