Fast Market Research recommends "Bahrain Water Report Q1 2013" from Business Monitor International, now available
Boston, MA -- (SBWIRE) -- 03/04/2013 -- BMI Industry View
BMI View: Of all the Gulf states, Bahrain is considered the most challenging from a risk perspective, and 2013 must see an improvement in the overall investment climate if the authorities are to stand a chance of achieving their water expansion targets. Positively, there is movement on the creation of a long-term water and power sector masterplan, which should determine the Kingdom's priorities for these vital sectors - and should at least provide a glimpse of what the future sector will look like. Despite residual concerns that the government - anxious to keep its support base happy - is prepared to sacrifice vital projects, such as a planned pumping station in a heavily populated area, BMI expects the leadership to provide greater reassurance to investors that it supports major water sector projects.
The key trends and developments in Bahrain's water sector are:
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- Bahrain has still to regain its status as an attractive investment destination after the political unrest of 2011. However, a semblance of stability has returned to the marketplace, and there are signs that international water companies are looking with more interest at opportunities in Bahrain, whether in wastewater, desalination or pipelines and networks. The government is mindful of the deterioration of its political risk profile and has sought to reassure investors that past problems will not render the country a no-go area for investors and that its infrastructure needs will continue to put a series of opportunities and contract awards in the paths of private investors. There have been no material moves against foreign companies, and BMI does not expect the coming year to witness any such measures.
- Encouragingly for the sector's future prospects, the Electricity & Water Authority (EWA) has registered progress in its efforts to create a 15-year masterplan for both the water and electricity sectors. Expected to cover the 2015-2030 period, EWA aims to ensure it has long-term forecasting for water demand, enabling it to keep pace with demand. Five international consultants are bidding to undertake the masterplan: Tractebel of Belgium; the UK's Mott Macdonald; Fichtner of Germany; ESBI of Ireland; and Canada's SNC Lavalin. The pumping station must be moved away from residential areas in Muharraq and on to a reclaimed island.
- The proposed Tubli wastewater treatment plant expansion is set to be undertaken as a design-buildoperate project, and will add 200,000 cubic metres per day of water production capacity under the latest plans.
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