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February 19, 2019

Middle East PPP power and water projects gather pace

The shift towards various forms of public-private partnership models to develop utility projects in the Middle East is well underway.

By MEED   

Middle East utilities are seeking public-private partnership models for power and water projects as part of efforts to cut capital expenditure.

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The shift towards various forms of public-private partnership (PPP) models to develop utility projects in the Middle East is well underway.

Adopting PPP to deliver power and water projects in the region is nothing new, with the first independent power producer project dating back to 1994 in Oman.

Abu Dhabi, Kuwait, Dubai and Saudi Arabia

In the following years, Abu Dhabi emerged as the region’s hot spot for the model, establishing a blueprint for others to follow.

Markets such as Kuwait and Dubai adopted the model much later – both have only pushed ahead with PPP utility projects in the past five years.

Saudi Arabia, the region’s largest utility market, awarded a handful of contracts for independent water and power projects between 2007 and 2010, but it reverted to standard engineering, procurement and construction models as the price of oil recovered after the financial crisis.

The sharp drop in oil prices in 2014, however, had a profound impact on government spending and economic planning for infrastructure projects and has prompted another rethink.

The tried-and-tested model for developing utility plants is the best place to start. Handing over the reins to the private sector will also help meet increased efficiency goals and reduce fuel bills for the lifecycle of the projects.

With the rise of renewable energy capacity and the decoupling of power and water assets, there is set to be a greater number of lower-value financed transactions in the utility sphere.

An increased number of smaller PPP projects in the region’s power and water sector will please lenders and offer more opportunities for aspiring developers in an increasingly competitive market.

This article is sourced from Power Technology sister publication www.meed.com, a leading source of high-value business intelligence and economic analysis about the Middle East and North Africa. To access more MEED content register for the 30-day Free Guest User Programme. https://www.meed.com/registration/

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Delve into the renewable energy prospects for Morocco

In its new low greenhouse gas (GHG) emission strategy to 2050, submitted to the United Nations (UN), the Ministry of Energy Transition and Sustainable Development (MEM) of Morocco suggested to raise the share of renewable capacity in the country’s total power installed capacity mix to 80%.   Morocco currently aims to increase the share of renewables in total power capacity to 52% by 2030. The new strategy plans to increase the share of renewable capacity to 70% by 2040 and 80% by 2050.  GlobalData’s expert analysis delves into the current state and potential growth of the renewable energy market in Morocco. We cover: 
  • The 2020 target compared to what was achieved 
  • The 2030 target and current progress 
  • Energy strategy to 2050 
  • Green hydrogen 
  • Predictions for the way forward  
Download the full report to align your strategies for success and get ahead of the competition.   
by GlobalData
Enter your details here to receive your free Report.

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