Risk Management of Asalouye Desalination Project

Abstract

Nowadays, in the areas that are encountered with drinking water shortage, contiguity of sea with land create a facility to change salty water to drinking water using desalination plant and reverse osmosis method. The first desalination project of Iran has been completed in south of Iran in Asalouye. The project contract was registered between Noor Vijeh Company (special joint stock) and Pars Special Economic Energy Zone (PSEEZ) dependent to Oil Ministry of Iran. By this contract, Noor Vijeh Company must deliver 10000 m 3 /day of drinking water to PSEEZ from the lines of water delivery pipe. Type of the project contract is Build, Operate and Transfer (BOT) scheme within 21 years concession period. Delivered water price is 0.48 euro/m 3 in 7 years duration from the beginning of the project and 0.375 euro/m 3 for next 13 years. In this paper, the risks of the project are studied and scrutiny and risk management are performed by offering a matrix model. Keyword: Desalination, Build Operate Transfer (BOT), risk management, Project Company, pars special economic energy zone (PSEEZ)