Unrest in MENA to fuel rental power growth in 2012

Saudi Arabia's lack of infrastructure makes its a major market for rental power companies (Getty Images)

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The Middle East and Africa is set to be an area of flourishing growth for rental power companies in 2012, the group marketing manager of Rental Solutions and Services has said.

While Saudi Arabia remains the number one priority for rental power companies in the GCC, North Africa offers the biggest opportunity for growth due to the political unrest and uncertainty prevalent throughout the region, Roberto Bagatsing told MEP Middle East.

“There is a huge demand for rental power, especially in the African region. Since the ongoing political unrest has led to the devastation of several cities in Northern Africa, this is an area of opportunity for rental power companies. Not only for rental power, but for the whole rental industry,” he explained.

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“Whether it’s for plants, machinery or vehicles, or whether they’re providing chillers or water desalination, the full rental companies will benefit from the opportunities in modern Africa.”

Furthermore, he added, there is great demand in the Eastern and Western parts of Africa, with multi-megawatt power projects starting up. Ranging from 50MW to 300MW, these projects have brought forth several enquiries from multi-national companies, with the intent of getting a toe hold into the African market, Bagatsing added.

When it came to Saudi Arabia, he pointed out that there were still numerous opportunities in the Kingdom, primarily because of the lack of infrastructure.

“Saudi Arabia still has opportunities which could be attributed to either the lack of funding, the delay of deliverables or other factors. I’ll just reiterate the top three (causes behind the lack of infrastructure): delay of deliverables, the economic downturn and the third would be the government, plus the private sector and non-governmental organisations, who really should put their act together.”

“There’s a lack of co-ordination within these three bodies. In order for them to move forwards in their power projects, we’re talking about (introducing) legislation in the government, we’re talking about private-public partnerships between the public and private sector."

"We need enough substantial agreements between all agreed parties; we need support coming from the non-governmental organisations. Everyone needs to put their act together,” he concluded.