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| The ::: Middle East Entrepreneurs Network::: (MEEN) Network is not currently active and cannot accept new posts | Why is this N/work - slow? | Views: 401 | Oct 10, 2006 11:46 am | | Why is this N/work - slow? | # | Ravinder Bhan | | HI
I joined this n/work last week - looking for some action packed discussions but find just one or two posts for each thead. Well I am sure you have your reasons for being a member and not posting.
I thought of sharing with you some facts of this nice country we live in - which could spring up some business opprtunties for some or all of us. -----
Five years of strong economic growth in the Gulf has sucked in people and investment on an unprecedented scale. Annual population growth of 5-10 per cent, combined with an explosion in shopping malls, housing complexes and grand office developments, have impacted on power demand. Dubai Electricity & Water Authority (DEWA) has been experiencing demand growth of 15 per cent a year; in Qatar, it is conservatively estimated at about 10 per cent. Even in less buoyant markets such as Kuwait, the authorities are having to contend with growth of 8 per cent.
That is a major worry for utilities, which are facing increasing difficulties in building new capacity on time. Shortage of bidders Outside the state-dominated markets of Dubai and Kuwait, bidder turnout has been higher. Nevertheless, the lack of engineering, procurement and construction (EPC) contractors remains an issue for developers. Contractor shortages have contributed to a sharp rise in project costs.
Meeting deadlines is now a top priority for utilities. Advocates of private power contend that their model not only creates greater competition and yield a lower cost of production, but also achieves faster implementation, provided a clear scope and a strong regulatory framework are in place. That is why it should now be adopted in Kuwait and Dubai, its supporters argue.
Low tariffs, in places less than the cost of actual production, encourage waste and fuel demand. If tariffs were raised, the widespread belief is that demand would drop markedly. Such a move would be politically difficult and highly unpopular. But it may be better received than another summer of disrupted supplies.
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I am a power sector profesional and have some thoughts on how this can be a big opportunity ... are there any individuals / entrepreneurs who would like to work together with me to exploit this?
Private Reply to Ravinder Bhan | Oct 11, 2006 4:28 pm | | re: Why is this N/work - slow? | # | Meera Kaul | | Ravinder What you say is interesting. Could you elaborate on what exactly the business case could be in terms of product and revenue ?
Private Reply to Meera Kaul | Oct 18, 2006 2:43 am | | re: re: Why is this N/work - slow? | # | Ravinder Bhan | |
Meera
I am sure you will agree with me .. there can be no single point answers to such questions. The number of opportunities are more than one can count. One has to decide what stream one would like to go through. To simplify, power sector opportunities are in three streams:
a. Manufacturing - Middle East is desperately short of manufacturers for the power sector equipment - such as Generators, Transformers, Conductor, Towers, .... the list is endless.
b. Contracting: A full fledged contracting company which can deliver a quality job on time is a visible opportunity as shown in the main post.
c. Marketing: Despite nearly a million trading houses in Dubai - my own market knowledge suggests there is need for a professionally managed marketing company which can be a single window source for all products required by the contracting companies.
d. Training : I don't have to educate you on the desperate lack of skilled manpower in the Power Sector. There is a dire need for technical training of people at all levels and both the Govt and the corporate sectors has huge funds for Training - you know that right?
e. Hiring: Once again despite a plethora of head hunters - there isn't one single agency that would provide specialized manpower to Power Sector. In my own company we have shortage of all skill at any given time.
That brings us to a specific question. Ok which one is the best of the above Once again there is no single right answer. Each of these are viable but each requires a different magnitude of investment both in money as well as time, attention, skills, track record etc.
If this didn't bore .. we could talk specifics.
Private Reply to Ravinder Bhan | |
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