Water Desalination Plants

Desalination Plant
Water Desalination Plants
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Business Model Description

Invest in the construction of water desalination plants to convert sea water into potable water to improve access to fresh water for drinking as well as consumption in the agricultural industry

Expected Impact

Investments in seawater desalination can reduce the deterioriation of surface and ground water quality by using other sources of water.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Clean water and sanitation (SDG 6)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9)
Sector Sources
  • 1) World Bank Group, December 2019. Tunisia Infrastructure Diagnostic. https://openknowledge.worldbank.org/bitstream/handle/10986/35116/Tunisia-Infrastructure-Diagnostic.pdf?sequence=1&isAllowed=y 2) OECD, 2021. Middle East and North Africa Investment Policy Perspectives. https://www.oecd-ilibrary.org/sites/49d6211b-en/index.html?itemId=/content/component/49d6211b-en 3) Republic of Tunisia, 2018. Economic Recovery Plan 2019-2020. http://www.cae.gov.tn/wp-content/uploads/2019/08/Plan-de-relance-V-Finale-12-oct.pdf 4) Bertelsmann Stiftung, 2020. Tunisia Country Report. https://www.bti-project.org/en/reports/country-report-TUN-2020.html 5) IMF, 2021. Tunisia Country Report. https://www.imf.org/en/Publications/CR/Issues/2021/02/26/Tunisia-2020-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-50128 6) OECD, 2018. Reviving Investment in Tunisia. https://www.oecd-ilibrary.org/economics/relancer-l-investissement-en-tunisie_55b4653d-fr 7) General Authority for PPP, 2018. Pipeline of PPP Projects in Tunisia. http://www.igppp.tn/sites/default/files/Fiches_descriptives/03-Fiche%20Station%20d%27%C3%A9puration%20%C3%A0%20Tunis%20Nord.pdf 8) French Development Agency (AfD), 2021. North Africa Regional Strategy 2021-2025. https://www.afd.fr/sites/afd/files/2021-03-02-49-37/strategie-regionale-afrique-nord-2021-2025.pdf 9) World Bank Group, 2020. Tunisia - Economic Monitor: The COVID-19 Global Pandemic Shock. https://openknowledge.worldbank.org/handle/10986/34974 10) UNDP, 2020. Engaging private sector in NDC implementation - Assessment of private sector investment potential for the water sector in coastal areas. https://www.undp.org/content/dam/LECB/docs/pubs-reports/undp-ndcsp-tunisia-private-sector-exec-sum.pdf?download 11) Stanford, 2020. Water in the West. The Hidden Costs of Desalination. https://waterinthewest.stanford.edu/news-events/news-insights/hidden-costs-desalination 12) IEA, 2019. Desalinated water affects the energy equation in the Middle East. https://www.iea.org/commentaries/desalinated-water-affects-the-energy-equation-in-the-middle-east 22) Republic of Tunisia, October 2021. Contribution Determinee au niveau National (CDN) actualisee. https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Tunisia%20First/Tunisia%20Update%20NDC-french.pdf
IOA Sources
  • 13) KFW, 2020. Drinking water from the Mediterranean Sea. https://www.kfw.de/stories/environment/natural-resources/tunisia-desalination-of-sea-water/ 14) Construction Review Online, 2021. Construction of Sfax desalination plant in Tunisia to commence. https://constructionreviewonline.com/news/construction-of-sfax-desalination-plant-in-tunisia-to-commence/ 15) CISION, 2021. Water Desalination Market Size to Reach Revenues of USD 28.13 Billion by 2026. https://www.prnewswire.com/news-releases/water-desalination-market-size-to-reach-revenues-of-usd-28-13-billion-by-2026--arizton-301407440.html 16) H Bin Marshad, Saud Mohammed, 2014. Economic Evaluation of Seawater Desalination. Heriot Watt University. https://core.ac.uk/download/pdf/77036159.pdf 17) Ministry of Agriculture, Water Resources and Fisheries, SONEDE, 2015. Preparatory Study on Construction of Seawater Desalination Plant in Sfax. https://openjicareport.jica.go.jp/pdf/12245619.pdf 18) AFD, 2021. Facilitating Access to Water and Women's Empowerment in Tunisia. https://www.afd.fr/fr/actualites/tunisie-acces-eau-emancipation-femmes 19) Sustainable Development Solutions Network (SDSN) and the Bertelsmann Stiftung, 2021. Sustainable Development Report 2021. Tunisia Profile. https://dashboards.sdgindex.org/profiles/tunisia 20) PS-EAU, 2021. Water and Sanitation Issues. https://www.pseau.org/outils/ouvrages/ps_eau_fiche_pays_tunisie_2021.pdf 21)SONEDE, 2019. La securisation de l'approvisionnement en eau potable.