Boston, MA -- (SBWIRE) -- 08/09/2012 -- BMI View: There is clear evidence that the authorities will continue to prioritise Qatar's water sector development in the 10 years running up to the 2022 World Cup tournament, as part of a wider mission to invest in top quality infrastructure. New budget figures for fiscal year 2012-13 confirm a hefty increase in infrastructure capital expenditure, and we expect water to play a key role. New desalination capacity, combined with a ramp-up in treated sewage effluent throughput, will furnish a substantial volume of new supply into the system that will ensure that Qatar keeps pace with demand. And for water companies, this accommodating investment environment will be a boon, offering increased opportunities for winning contracts in one of the world's most lucrative markets.
Key themes to highlight for Qatar's water sector include:
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- Qatar's water sector should continue to prove a significant draw for international developers, with an attractive and stable investment climate and - just as important - a concerted focus from the top-down to pour cash into infrastructure projects, driven in part by its preparations to host the 2022 FIFA World Cup. The new 2012-2013 state budget provides a further substantial hike in spending that will inevitably find some of its way into water projects. The proposed 25% increase in funding for major infrastructure projects should help to furnish a wealth of new project opportunities, particularly in the wastewater and water supply systems.
- The emirate is also serious about fostering private financing and operation of its water sector, with the state water and power utility Qatar Water and Electricity Corporation (Kahramaa) committed to encouraging public private partnerships (PPPs) in the power and water sectors via a clutch of independent water and power projects (IWPPs). With new privately financed desalination projects such as Ras Laffan A coming up for contract awards, there will be renewed activity in the forecast period in the IWPP sector.
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