Tom Callaghan, Head of business development at Grahamtek, says the first tranche of tenders for smaller scale desalination plants put out by the City of Cape Town is not economically viable for business.
We'll rather be bidding on the larger scale projects which is about a 50 megalitre plant.— Tom Callaghan, Head of business development at Grahamtek
He says this is more strategic and at a utility scale.
One of the most important aspects of desalination is understanding the consumer and making the product economically viable.
Economics is crucial. It's all about your water price delivery.— Tom Callaghan, Head of business development at Grahamtek
He says with smaller scale plants, especially in emergency situations, the risks are high.
The risks are just too high, the costs are exorbitant, and for 14 million litres, it is just such a small percentage of our water - rather just share a shower.— Tom Callaghan, Head of business development at Grahamtek
He says Grahamtek believes in doing good business and these tenders are just not worth it.
He says they have suggested potential sites for the large-scale land based plant. The plant needs to be close to the water reticulation system and Table Bay Harbour would be an ideal location, he says.
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This article first appeared on 702 : Local desalination company says no to small-scale tender