GCC Desalination: Expert Insights on Avoiding Mistakes
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Introduction

Infoquest consulted GCC desalination expert Brian Doucette, former Chief Operating Officer (COO) of NOMAC, who has offered lessons for developers, EPC firms, consultants, and investors on how to avoid critical errors in GCC desalination projects.

To understand the necessity of desalination, we also consulted with Doucette on this topic here.

Doucette emphasized, “Successful GCC desalination projects aren’t just about technology selection. They’re fundamentally about strategic integration with local power grids, specific environmental conditions, regulatory expectations, and long-term operational realities, right from the very start.”

Critical Error #1: Grossly Underestimating Capital Requirements

Insufficient capital planning is a frequent cause of GCC desalination project failure. True costs often exceed initial estimates by 40-60% due to:

  • Grid Integration Complexity: Connecting plants to power and water grids involves substations, lines, and pipelines, adding 10-15% to budgets.
  • Navigating Regulatory Hurdles: Permits, land rights, compliance, and local content requirements add 5-10% in direct and indirect costs.
  • Comprehensive Environmental Mitigation: Protecting marine ecosystems and managing brine discharge requires studies, advanced systems, and monitoring, accounting for up to 15% of costs.

Doucette stated, “Capital underestimation is arguably the number one reason desalination projects fail or stall in the GCC.”

Strategic Financial Advice:

  • Build Robust Contingency Buffers: Aim for at least 20% above estimates to cover grid, regulatory, and environmental risks.
  • Engage Authorities Pre-Financial Close: Discuss requirements and costs with utility providers and environmental agencies before finalizing budgets.
  • Benchmark Rigorously: Compare estimates with completed projects in the GCC, adjusting for specifics.

Critical Error #2: Treating Environmental Impact Assessments (EIAs) as a Checkbox Exercise

Rushing or neglecting Environmental Impact Assessments (EIAs) in the GCC is risky. EIAs are crucial, and mishandling them can cause delays, fines, shutdowns, and reputational damage.

Key assessment areas:

  • Marine Ecosystem Sensitivity: Assess impacts on marine life from seawater intake and brine discharge.
  • Brine Discharge Management: EIAs must evaluate brine dispersion and mandate advanced outfall designs or Zero Liquid Discharge (ZLD) options (Learn about brine management techniques).
  • Air Quality and Carbon Footprint: Assess emissions and alignment with national standards and climate goals (e.g., UAE Net Zero 2050 Strategy, Saudi Green Initiative).

Doucette warned, “Skipping or short-cutting the EIA is a gamble you’ll likely lose. Regulators are getting much more serious and sophisticated, especially in the UAE, Qatar, and increasingly Saudi Arabia.”

Strategic Environmental Advice:

  • Commission Full EIA Studies Early: Conduct EIAs during feasibility or pre-FEED to inform site selection and design.
  • Engage Environmental Authorities Proactively: Consult with bodies like the UAE Ministry of Climate Change and Environment and Saudi Arabia’s National Center for Environmental Compliance (NCEC) early.

Critical Error #3: Misaligned Infrastructure Planning

Desalination plants heavily rely on power and are linked to water grids. Poor integration planning is a common, costly error.

Planning failures include:

  • Ignoring Heat Source Proximity (Thermal Desal): Thermal plants must be co-located with power plants using waste heat for efficiency.
  • Overlooking Grid Capacity and Stability: Plants must be compatible with the grid to avoid instability.
  • Water Transmission Bottlenecks: The water network’s capacity to handle desalinated water must be confirmed early.

Doucette emphasized, “You can’t just place a large-scale desal plant on any piece of coastline that looks convenient. It needs to feed from, and feed into, the national power and water grids strategically and reliably.”

GCC Desalination  

 

Strategic Infrastructure Advice:

  • Conduct Joint Utility Planning: Coordinate with electricity and water authorities (e.g., Saudi Water Partnership Company (SWPC), Oman Power and Water Procurement Company (OPWP), UAE’s EWEC or DEWA) early.
  • Perform Detailed Grid Impact Simulations: Simulate the plant’s load to ensure grid compatibility.
  • Assess Water Network Capacity: Verify that the water network can handle the new capacity.

Critical Error #4: Poor Engineering, Procurement, and Construction (EPC) Selection

GCC projects require experienced EPC contractors. Lacking regional experience leads to delays and overruns due to:

  • Harsh Climate Impacts: Extreme conditions affect productivity and equipment.
  • Complex Logistics: Managing international supply chains and local sourcing is challenging.
  • Large, Multinational Workforce Management: Mobilizing and managing diverse workforces is complex.
  • Navigating Local Bureaucracy: Handling permits and approvals requires local knowledge.

Doucette shared, “We saw some EPCs struggle a lot. The ones who succeed, like strong Indian firms or established Korean firms, often dominate for a reason. They understand the environment and, crucially, they have the bench strength, they can mobilize 30 qualified engineers almost overnight if needed. That operational depth can be the difference between a 12-month delay and staying on schedule, or worse, a 36-month overrun.”

Strategic EPC Selection Advice:

  • Prioritize Proven GCC Track Record: Choose EPCs with successful large-scale project experience in the GCC.
  • Vet Supply Chain and Labor Pool Resilience: Examine the EPC’s supply chain and ability to manage a large workforce.
  • Structure Contracts for Performance: Implement contracts with performance incentives and delay penalties.

Critical Error #5: Neglecting Sustainability and Long-Term Resilience from Day One

Sustainability is becoming a core requirement in the GCC, with regulations, ESG mandates, and a focus on resilience. Developers must consider:

  • Energy Efficiency Beyond Baseline: Optimize RO plants with energy recovery devices and efficient pumps.
  • Chemical Usage Optimization: Reduce chemical use and explore greener alternatives.
  • Supply Chain Longevity & Obsolescence: Choose technology with long-term supplier support. Doucette highlighted, “You need to ask: In 15, 20, 30 years, will you still be able to get that critical replacement part, or has the supplier gone bankrupt or discontinued the line? That’s sustainability, too.”
  • Alignment with National Climate Goals: Align projects with national net-zero ambitions (e.g., UAE Net Zero 2050 Strategy, Saudi Green Initiative) and integrate renewables.

Strategic Sustainability Advice:

  • Design for Future Standards: Anticipate stricter environmental regulations.
  • Favor Proven, Widely Supported Technologies: Prioritize reliable technologies with broad supplier support.
  • Conduct Life Cycle Assessments (LCA): Evaluate the environmental footprint throughout the project.

Critical Error #6: Ignoring or Underestimating Localization Policies

GCC countries, especially Saudi Arabia, have stringent localization policies requiring local procurement, workforce nationalization, and knowledge transfer.

Key aspects:

  • Mandatory Local Content Programs: Initiatives like Saudi Arabia’s In-Kingdom Total Value Add (IKTVA) program set local spending targets.
  • Workforce Nationalization Quotas: Requirements exist to hire and train local citizens.
  • Supplier Development: Developers may need to help develop local suppliers.

Doucette warned, “You simply cannot meet the objectives of national strategies like Vision 2030 without a credible, detailed localization plan integrated into your project proposal and execution strategy.”

Strategic Localization Advice:

  • Form Early Partnerships with Local Firms: Engage local partners early.
  • Develop a Concrete Talent Localization Roadmap: Create a plan for recruiting and training local talent.
  • Integrate Localization into Procurement Strategy: Embed local content requirements into the EPC tendering process.

Final Word: Mastering the Crucible of Constraints in GCC Desalination

GCC desalination projects require mastering integration, compliance, resilience, and local understanding.

Doucette concluded, “Too many firms, developers, consultants, even experienced EPCs new to the region, underestimate the true capital depth required, the real environmental risks and mitigation costs, or the sheer complexity of integrating smoothly with existing power and water infrastructure. Water is intensely political, highly technical, and fundamentally strategic in the Gulf; you have to approach it with that mindset.”

Successful GCC desalination projects require meticulous engineering and strategic planning.

For expert insights on GCC desalination projects, including technology, EPC selection, and financing, contact us at info@iqnetwork.co or www.iqnetwork.co.