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Signing a pilot project agreement to improve energy efficiency in 4 government facilities

2020-07-19

Under the patronage of H.E. Shaikh Mohammed bin Khalifa Al Khalifa, Minister of Oil, and within the initiative of the National Oil and Gas Authority (NOGA), the pilot project agreement was launched to improve energy efficiency, which is the first joint cooperation between NOGA and the Electricity and Water Authority, where this pilot initiative aims to provide energy from using electricity and water in 4 government buildings through the use of the latest technologies and energy saving equipment.
H.E. Shaikh Nawaf bin Ebrahim Al Khalifa, CEO of the Electricity and Water Authority, signed the pilot project agreement with Siemens International and 4 government agencies and Tatweer Petroleum Company, where on behalf of the Ministry of Youth and Sports Affairs, Ayman Ayman Tawfiq Al-Muayyad, Minister of Youth and Sports Affairs, signed the agreement, and for the Survey and Real Estate Regulatory Authority, H.E. Shaikh Mohammed bin Khalifa Al Khalifa, Director General of Real Estate Regulatory, and for the Ministry of Education, H.E. Dr. Mubarak Mohamed Juma, Undersecretary of the Ministry of Education for Resources and Services Affairs, and for the Ministry of Health, H.E. Dr. Waleed bin Khalifa Al Mana, Undersecretary of the Ministry of Health, and for Tatweer Petroleum company, Mr. James Estlake, CEO of Tatweer, and on behalf of the German company Siemens, Mr. Bassem Akkawi, General Manager of Siemens, Bahrain Branch.
H.E. Shaikh Mohammed bin Khalifa Al Khalifa, Minister of Oil, expressed his great gratitude and appreciation for the great accomplishments witnessed in the oil and gas sector in the era of H.M. the King, and the government headed by H.R.H. the Prime Minister, with the support of H.R.H. the Crown Prince, Deputy Supreme Commander, and First Deputy Prime Minister, and what the leadership attaches in continuing the support and guidance in achieving many achievements aimed at preserving natural resources, as well as achieving impressive progress in this important economic sector in the Kingdom of Bahrain, by enhancing the role of innovation and creativity in this vital field.
H.E. the Minister welcomed the signing of the joint agreement between the Electricity and Water Authority and the relevant authorities within the strategy of the NOGA to enhance the circular carbon economy and preserve natural gas resources in partnership with the public and private sector to improve energy efficiency through the implementation of a number of programs aimed at reducing energy use on government and private buildings, and then making developmental adjustments to reduce electricity and water bills, which will benefit the Kingdom by providing natural gas that depends on it for the production of electric power and water.
H.E. the Minister of Oil pointed out the importance of developing and maintaining this important oil sector, which is considered one of the most important sectors in the world, through cooperation with various international bodies and companies specialized in investing in this aspect and promoting meetings to exchange experiences and see the latest findings of modern technologies to increase returns and exploit resources more efficiently. Looking forward to more development projects in light of the difficult challenges that the world is going through, which have led to instability of oil prices in the world. Appreciating all relevant stakeholders and workers for this vital project, which is the first joint cooperation with the Electricity and Water Authority to achieve the honorable achievements of the Kingdom of Bahrain in this important aspect.
For his part, H.E. Mr. Wael bin Nasser Al Mubarak, Minister of Electricity and Water Affairs praised the efforts made by all concerned parties in this partnership to achieve one goal which is improving energy consumption and preserving the country's natural resources and using them in optimal ways to achieve more achievements aimed at the growth and prosperity of the national economy, highly valued the initiative of NOGA led by H.E. Shaikh Mohammed bin Khalifa Al Khalifa, Minister of Oil in this regard and the great interest it attaches in developing the oil sector through investment projects in this vital sector, wishing all success to this project and in achieving the desired goals.
H.E. Shaikh Nawaf bin Ebrahim Al Khalifa, CEO of the Electricity and Water Authority, said that the project will achieve annual savings of approximately 23% of the amount of electricity and water consumption that will result from retrofits of energy in the buildings that were chosen as part of an experimental study in cooperation with government agencies, noting that the authorities concerned party will not bear the burden of the capital cost of the project until the Electricity and Water Authority recovers the cost of the capital investment in this project through savings in electricity and water bills. Where the concerned authorities will enjoy the benefits of these reforms for many years after the completion of the project.
H.E. indicated that, according to the contract signed with the Siemens company executing the project, the company will undertake savings and will be fully responsible for the proper operation of the replaced equipment and measures implemented during the contractual period while providing adequate warranty conditions and replacing what is damaged during this period at their own expense.
According to the studies carried out by the German company Siemens on the four establishments, which estimate the cost of the project to be about 742 thousand Bahraini dinars, indicating that after the implementation of the project using the latest technologies and energy saving equipment, the cost of the project will be recovered within less than 4 years through the annual savings that are collected from  electricity and water bills, which contributes in achieving the goal of the agreement, which is to provide energy at the national level in order to protect natural resources and increase production in the long run.
It is worth noting that the Electricity and Water Authority has issued, through the Tender Board, a limited competitive tender to 4 international companies specialized in this field with the aim of testing and enabling the ESCOs system in the Kingdom of Bahrain, where German company Siemens won in this project, which the company is one of the major integrated investment companies and one of the active elements in the world in the field of electronics and electricity.

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