National Water Company (NWC), Saudi Arabia announced the awarding of two Long Term Operation and Maintenance “LTOM” contracts for the rehabilitation, operation and maintenance of sewage treatment plants “STPs” at Makkah city and Jeddah Governorate.
The combined value of the contracts are 1.592 billion Saudi Riyals (equivalent to about 425 million US Dollars).
The projects awarding is under the objectives of the National Water Strategy to achieve environmental sustainability, increase investments in the water sector, and tender opportunities for partnerships with the private sector as part of an innovative agreement model that saves NWC’s investment in its brownfield strategic assets.
Eng. Abdulrahman bin Abdulmohsin Al-Fadhli, Minister of Environment, Water and Agriculture “MEWA”, Chairman of NWC Board, patronized the two-contract signature ceremony between Eng. Nemer Al-Shebel, CEO (Interim), NWC and representatives of the French-Saudi consortium comprising Veolia Middle East, Civil Works Company Ltd. and Awael Modern Contracting Ltd., while the second contract was concluded with the local consortium of Miahona Group and Thabat Construction Company.
Eng. Nemer Al-Shebel, CEO (Interim), NWC, said “The value of the first contract with Veolia-CWC-Awael is 1.200 billion Saudi Riyals (equivalent to some 320 million USD, at a levelized tariff of SR 0.43/m3 i.e. about USD 0.11/m3”.
Al-Shebel indicated that the contract aims to rehabilitate, operate, and maintain 4 STPs at Jeddah (Airport 1, Al Khumra numbers 3, 4 and 6) for a total of 790,000 m3/day of wastewater. He noted that the consortium is committed to invest over SAR 180 million for the rehabilitation works, enabling the brownfield strategic assets to be operated under the KSA regulations and upgrading the operational and environmental performance.
CEO (Interim), NWC added that the second contract concluded with Miahona-Thabat local consortium at a total value of SR 392 million at a levelized tariff of SR 0.21/m3 i.e. USD 0.056/m3. He pointed out that rehabilitation and O&M works would be done at Hada and Arana for a total treatment capacity of 500,000 m3/day together with rehabilitation works by the consortium for 110 million SAR.
Nemer Alshebel, noted that this is the first 2 contracts awarding of NWC’s LTOM program under its 2030 wastewater plan, indicating that NWC has recently received the LTOM offers for Manfouha STPs in Riyadh, under the LTOM Package 3 for 700,000 m3/day wastewater.
He continued saying: “In October we will issue the Forth package for Riyadh Sewage Treatment Plants. It is for investment in STPs at (Al Hayer and Heet) in Riyadh for 870,000 m3/day and in the last quarter of this year, we will tender investment opportunities for local and international companies for STPs at Eastern Cluster including Al-Dammam, Al Khobar and Al-Ahsa for 1.1 million m3/day”. He noted that these partnerships were attracting important consortia to relaunch the brownfield assets for a new 10 to 15 years’ period with private investment at very competitive prices”
Al-Shebel added that through these contracts, NWC aims to support the national economy through enabling expansion and growth in the water sector and enabling opportunities and long-term partnerships with local and international private sector as part of an innovative agreement model that saves NWC investing in operating its brownfield assets, together with attracting and localizing new technologies and knowledge transfer to national cadres. He pointed out that the opportunities in the water sector in Saudi Arabia attracts capital in an innovative partnership that interests players in the water sector within local and international consortia and NWC is pleased to cooperate with them.
