$120bn needed to solve power, water crisis

POWER PROBLEM: Faced with an imminent water and power shortage, the GCC is expected to invest up to $120 billion over the next ten years. (Getty Images)

Gulf states are expected to invest around $120 billion over the next decade in order to address the region's rapidly approaching water and power shortage crisis, according to an energy expert.

Neil Walker, of UK-based Benoil Services, said the huge sums of money were needed to address soaring demand for electricity and water caused by an rising power consumption, falling potable water supplies and rapidly expanding populations.

“With all the GCC countries requiring significant growth in the power and water sectors, an estimated $120 billion investment is anticipated in the industry over the next 10 years,” Walker said, quoted state news agency Wam.

Walker’s comments follow a report released by the Middle East Economic Digest (Meed) warned of an imminent power and water shortage crisis.

The report, released earlier this month, identified a serious supply and demand imbalance caused by a lack of infrastructure investment earlier in the decade and cautioned that the Gulf’s booming economies were likely to suffer if the situation is not quickly remedied.

Walker said last year Gulf states needed to invest $45.6 billion over the next 10 years to need growing demand for power.

He said Saudi Arabia would invest some $30 billion, the UAE $8 billion and Kuwait $3.6 billion, while Qatar would invest $3 billion, Bahrain $1 billion and Oman $800 million.

The GCC is currently building a Gulf power grid that will connect the six member states, paving the way for a regional electricity market. The grid will come online in early 2009.

The grid is expected to go some way to helping meet demand for power as record oil revenues fuel an economic boom in the region.

Print | Email | Discuss this article |

READERS' COMMENTS

View all comments (1)

Have your say

UNITED NATIONS MILLENNIUM CAMPAIGN (UNMC)
Posted by Ayesha.L, Delhi, India on Friday 11 April 2008 at 10:03 UAE time


Leaders who adopted the Millennium Development Goals in 2000 envisioned halving the proportion of people living without access to basic sanitation by the year 2015 – but we are nowhere near on pace to achieve that goal. Experts predict that by 2015, 2.1 billion people will still lack basic sanitation. At the present rate, sub-Saharan Africa will not reach the target until 2076.

If we take up the challenge, the positive impact will reverberate far beyond better access to clean water. Every dollar invested in water and sanitation yields an estimated seven dollars worth of productive activity. And that comes on top of the immeasurable gains in cutting poverty, improving health and raising living standards.
This will help all you people on this blog to do something along with the United Nations in your locality.
Check this
http://www.orkut.com/Community.aspx?cmm=47234928

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM