Saudi Arabia's National Water Company (NWC) said it has awarded a Long-Term Operation and Maintenance (LTOM) contract worth over SR1.6 billion ($426 million) to Alkhorayef Water and Power Technologies Company for the rehabilitation, operation and maintenance of sewage treatment plants (STPs) in Riyadh.

 

The 15-year-long deal is likely to contribute to the objectives of the National Water Strategy which is mainly aimed at achieving environmental sustainability, increasing investments in the water sector and opening up partnership opportunities for the private sector. 

 

This is executed under an innovative agreements model that aims at engaging the private sector in investment opportunities involving the rehabilitation, operation and maintenance of NWC strategic assets.

 

The contract was signed by Engineer Nemer Mohammed Alshebl, the Chief Executive of NWC and CEO of  Alkhorayef Water and Power Technologies Company in the presence of Engineer Abdulrahman Abdulmohsen AlFadley, Minister of Environment, Water and Agriculture and Chairman of NWC.

 

On the key milestone, Alshebl said the contract signed with Alkhorayef is for a levelized tariff of SR0.41/cu m, i.e. about $.11cu m.

 

Alshebl said the contract aims to cover the rehabilitation, operation, and maintenance of three STPs in Riyadh (Manfouha STPs complex) with a total treatment capacity of 700,000 cu m/day. 

 

As part of the contract, he added, AWPT will invest over SR550 million in rehabilitation works, which will improve the operational performance and environmental compliance, he added.

 

Alshebl said that this was the third LTOM contract being awarded by NWC in bid to revamp the existing STPs. 

 

NWC expects to receive LTOM proposals, he indicated, for the STPs in Heet and Al-Hayer in Riyadh later this month, to be the fourth contract to be awarded with a total sewage treatment capacity of 870,000 cu m/day.

 

The company, he stated also expects to receive proposals for STPs in the Eastern Province, in Dammam, Khobar and Al-Ahsa, with a combined sewage treatment capacity of 1.1 million cu m/day.

 

"In addition, the NWC LTOM programme will continue, as NWC intends to tender 113 existing treatment plants with a total capacity of 2.4 million cu m per day starting in 2024," he added.

 

These contracts are investment opportunities open for local and international companies. Alshebl said that these partnerships will attract important consortia, with the goal of rehabilitating existing assets for 15 years with capital investments at competitive prices.

 

Through these contracts, NWC aims to support the national economy by enabling expansion and growth in the water sector and creating opportunities and long-term partnerships with local and international private sector companies.

 

Another goal is to attract and localize new technologies and transfer knowledge to Saudi professionals. Additionally, he said, the opportunities in the water sector attracts capital into Saudi Arabia, as they are offered as part of an innovative partnership model that interests water sector players locally and globally, he added.