Copyright [insert date set by system] by [CH2M HILL Entity] • Company Confidential

3rd U.S. - Saudi Business Opportunities Forum

Los Angeles, California

Wednesday September 18, 2013

Opportunities in Water Engineering, Construction, Operations & Maintenance

Saudi Arabia – A vibrant market for all serving the water markets

Rapidly growing population

Water scarcity means ongoing

capital and operating investments

to meet the demand

Privatization initiatives are

bringing creative solutions and

planned upgrades

Projects are funded and

frequently move very quickly

Long term consistently funded

investment programs are being

implemented to provide for the

Kingdoms’ current and future

water needs throughout the water

cycle

“We have found that we, as an American

company, are welcomed and valued in Saudi

Arabia in the water sector.” Rob Smith – CH2M HILL

Water Supply Options are Capital Intensive and Energy-Intensive

East Coast: Primary source is desalinated seawater; also non-renewable groundwater resources

Red Sea Coast: Desalinated seawater and renewable water resources

Platform: Non-renewable groundwater resources only; desalinated water is supplied from the East Coast water province

Northern Shield: Renewable water resources, although rainfall is much lower than in the Southern Shield

Southern Shield: Renewable water resources due to significant rainfall amounts (up to 500 millimeters (mm)/year)

2010 Census Information Reinforces Growth Concerns

Region

Total Area

(km2) Classification

2010 Census

Population

Al Baha 9,900 Tourism 411,900

Al Jouf 100,200 Desert 440,000

Assir 76,700 Agriculture 1,913,400

Eastern Province 672,500 Industry, Empty Quarter Desert 4,105,800

Hail 103,900 Desert 597,100

Jizan 11,700 Agriculture 1,365,100

Madinah 152,000 Agriculture, Tourism 1,777,900

Makkah 153,100 Tourism, Industry, Business Center, Port, Agriculture 6,915,000

Najran 149,500 Agriculture 505,700

Northern Borders 111,800 Desert 320,500

Qaseem 58,000 Agriculture 1,215,900

Riyadh 404,200 National Capital, Industry, Desert 6,777,100

Tabouk 146,000 Agriculture 791,500

Totals 2,149,500 27,136,900

Region

2010 Census

Population

Population Projections

2025 2035

Al Baha 411,900 536,000 631,000

Al Jouf 440,000 577,000 677,000

Assir 1,913,400 2,512,000 2,957,000

Eastern Province 4,105,800 5,374,000 6,309,000

Hail 597,100 786,000 925,000

Jizan 1,365,100 1,817,000 2,137,000

Madinah 1,777,900 2,355,000 2,769,000

Makkah 6,915,000 9,067,000 10,667,000

Najran 505,700 654,000 767,000

Northern Borders 320,500 428,000 503,000

Qaseem 1,215,900 1,600,000 1,882,000

Riyadh 6,777,100 8,974,000 10,588,000

Tabouk 791,500 1,054,000 1,241,000

Totals 27,136,900 35,734,000 42,053,000

2010 Population with Expected Growth Exceeds Prior Future Estimates

Existing Water Sources and Supplies

(Does not include all water used for agriculture or industrial purposes)

Region

Groundwater Supply Desalinated Water Supply

% of Supply Qty (m3/day) % of Supply Qty (m3/day)

Al Baha 100 24,000 0 0

Al Jouf 100 65,000 0 0

Assir 23 24,000 77 78,000

Eastern Province 61 675,000 39 433,000

Hail 100 61,000 0 0

Jizan 98 62,000 2 2,000

Madinah 18 72,000 82 332,000

Makkah 4 48,000 96 1,059,000

Najran 100 9,000 0 0

Northern Borders 75 39,000 25 13,000

Qaseem 95 265,000 5 15,000

Riyadh 54 993,000 46 854,000

Tabouk 86 98,000 14 16,000

Individual Total 2,435,000 2,802,000

Combined Total 5,237,000 m3/day

Water is Critical to all Areas Future Development

National Spatial

Strategy - MOMRA

Business Opportunities Exist in Each Region and Interconnecting the Growth Areas

Sustainable Water Supplies will Replace Non-Renewable Groundwater over time

Seawater Desalination

– Thermal

– Membrane

– Evolving

Precipitation

– Enhanced stormwater infiltration

– Precipitation is a minor component

of the overall water supply needs

in much of the Country

Secondary Supplies Reduce Need for Primary Water Supplies

Reuse

– Urban wastewater

– Industrial wastewater

– Agriculture drainage

Conventional fossil fuel electrical

generation

Renewables

– Solar PV (CPV, PV)

– Concentrated Solar Power (CSP)

– Wind

– Geothermal

Nuclear

Waste to Energy

Integrating Energy, Power, and Water Demand Management Will Produce Sustainable Solutions in the Future

Balance seasonal demand

requirements (primarily for agriculture)

Emergency backup supply for urban

and industrial demands

Management of renewable energy

through pumped storage facilities

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10%

20%

30%

40%

50%

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20

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0 5 10 15 20 25 30 Ann

ual E

vapo

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on (%

of S

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Ave

rage

Res

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epth

(m)

Area/Volume Ratio (Ha/Million m3)

Average Reservoir Depth

Annual Evaporation

Annual Open Water Evaporation2060 mm/yr

Integrating Energy, Power, and Water Demand Management Produces Sustainable Solutions- Storage Considerations

Agricultural Water Demand by KSA Region

Improved Agricultural Water Use Efficiency

How to Get More Crop per Drop

Reduce Water Loss:

– Convert to high efficiency irrigation systems

– Improve irrigation water and salinity

management

– Use controlled environment agriculture

Increase Crop Output:

– Improve crop selection and management

– Improve fertility and pest management

– Improve salinity management

Oil

Gas

Solar

Nuclear

Wind

Geothermal

Solar/Thermal

Storage

Thermal &

Solar Desalinization

Sea water RO

Reuse

Storage

Conveyance

Siting

Production

Crop selection

Processing

Transportation

Carbon Footprint

Refrigeration

Optimal resource

use

Climate Adaptation

The Saudi Arabian Water Industry provides a unique set of opportunities for sustainable technologies that optimize the energy, water, food and environmental nexus

Saudi Arabia – Market opportunities throughout the water cycle for American companies

Strong demand for water supply,

wastewater, re-use, and

conveyance

Long term capital programs allow

for your long term investment in

the Kingdom

Job creation initiatives provide

incentives supporting your

investments throughout the supply

chain

Projects are funded and frequently

move very quickly

American companies are valued

for your technology, business

practices, and know-how

For More Information, Contact:

Rob.Smith@CH2M.com

+1 303 570 1069

+966 55 803 4429

Water Cycle in Saudi Arabia