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Water pricing is only a relevant issue if the provision of water results in expenses – that have to be carried by someone. This is of particular relevance in countries where water cannot at all be considered an ubiquity, that is: in arid countries. In dry regions the extraction or production as well as the distribution of water has significant costs and requires distinct managerial and innovative approaches.[1] Israel for instance has implemented an increasing block tariff which differs from region to region while irrigation water is made available for a special price. The Israeli government has also started to implement water saving and effluent reclamation projects. The capacities of the sea water and brackish water desalination plants are in the process of being enhanced.
The situation is different in the Arab countries on the Persian Gulf whose economies have gone through substantial transformation processes over the last 30 years. Governments have been able to generate enormous income from oil revenues.[2] This allowed them to improve the infrastructure. Like all government services, water is practically provided for free. There are however hardly and substantial efforts to increase efficiency in any of the GCC countries. Water desalination plants present a great opportunity: Sea water is practically infinite. A functioning and reliable electricity net is necessary, and energy costs are very high. The technology of self-sufficient, e.g. solar-driven, desalination plants is by now technically mature and feasible from an economic point of view. [3]
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