Market Analysis for Shoaiba II Integrated Water and Power Plant, Saudi Arabia

Charles River Associates

ECO Consult was contracted by Charles River Associates to provide a demand analysis and tariff study for the water sector in Saudi Arabia. This assignment was part of a feasibility study for the establishment of a private sector funded integrated water and power plant (IWPP).  The assignment involved collection of data on water supply and demand, both for the Kingdom and the province under investigation. A water demand analysis was carried out to establish needs for potable water supply, including an analysis of determining factors which might affect future water demand, including macroeconomic factors, political and legal framework, and risk substitution.

A demand growth analysis was also carried out for water supply in the region in addition to a cost and tariff study. A cost tariff model was built, based on the supply demand balances and costs of each alternate water supply including the proposed project.  An analysis was also made of the water tariff robustness and regulatory arrangements.