LONDON, June 30 /PRNewswire/ --

Demand for fresh water is increasing around the world, especially in regions with rapidly growing populations and badly affected by long, drought seasons. Water is only going to become scarcer and many governments are looking at desalination and investing in this technology to supply water to their populations. These factors are driving the desalination market that shows a strong growth according to Frost Sullivan.

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The focus is particularly high in the Mediterranean region where in the last few years we have been witnessing an increasingly severe water scarcity. Frost Sullivan has been looking at this sector with particular interest and will soon publish a comprehensive study on the Spanish water market with trends, challenges and opportunities.

Why Spain? Frost Sullivan Analyst, Nuno Oscar Branco, who has been researching the market and conducting extensive interviews with market participants, confirms: Spain is the largest desalination market in the Mediterranean region, but countries such as Algeria, Morocco or Libya, to name just a few, have joined the desalination bandwagon and are investing heavily on this source of fresh drinking water.

Spain built its first desalinization plant in 1965 and was one of the first countries in the Mediterranean region to consider desalination as a viable solution to solve water shortage issues in large urban areas. Spain is close to reaching the peak of its desalination programme and is on the forefront of the desalination markets, leading the way in employing new technologies and plant design, says Frost Sullivan's analyst Nuno Oscar Branco .

Spurred by the PROGRAMA A.G.U.A., Spain has an estimated investment plan of about US$5.5 Billion for the period 2004 to 2015 in desalinization treatment plants in an effort to increase the production capacity of fresh water by 1,100 hm3 per year.

At a time when the construction market is in trouble, investments by the Spanish Government in the water infrastructure is proving to be a good opportunity for EPC companies, construction companies, project engineering firms and technology providers. The Spanish desalination market still offers opportunities for local and international companies that have expertise especially in key areas of energy efficiency as well as process and operation optimisation, according to Nuno Oscar Branco. Desalination is looking at the opportunity of going green through renewable energy options. And in fact, there are technologies already available that would use wind or off-shore solar power units as their energy source for desalination.

The presence of Spanish companies is also very strong in other geographical markets: Albeit the desalination market in Spain is at its peak, concludes Frost Sullivan's analyst Nuno Oscar Branco, Spanish companies have developed strong know-how in the construction and operation of large desalinization plants and are winning important contracts in Algeria, India and Australia.

Drivers for investment in water desalination plants will continue to remain strong in the Mediterranean countries for the next decades.

For more information on the Water Market in Spain and in the rest of the Mediterranean region and to receive a complimentary insight of the market, please contact Chiara Carella, Frost Sullivan Corporate Communications, at chiara.carella@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, and country.

About Frost Sullivan

Frost Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

Contact: Chiara Carella Corporate Communications - Europe P: +44-(0)-20-7343-8314 M: +44-(0)-753-3017689 E: chiara.carella@frost.com http://www.frost.com

Chiara Carella, Corporate Communications - Europe of Frost Sullivan, +44-(0)-20-7343-8314, mobile, +44-(0)-753-3017689, chiara.carella@frost.com; Logo: http://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO