Saudi Arabia's National Water Company (NWC) has announced that it has awarded a long-term contract to Spanish Aguas de Valencia Company for rehabilitation, operation and maintenance of sewage treatment plants (STPs) in Taif city for 15 years.

 

As per the contract worth worth over SAR555 million ($148 million), with a levelized tariff of SAR 0.67/ cu m, the Spanish group will handle two STPs in Taif with a total treatment capacity of 147,000 cu m/day. 

 

NWC said it had completed signing of 8 contracts under the Long-Term Operation and Maintenance (LTOM) programme as part of its strategic plans to attract the private sector to contribute in the investment opportunities and help boost PPP funding in the water sector.

 

NWC aims to award rehabilitation, operation and maintenance contracts for 113 existing treatment plants (with a total capacity of 2.4 million cu m/day) this year under this new LTOM scheme.

 

This will open up immense investment opportunities for local and international private companies looking to enter the Saudi utility sector. 

 

"These partnerships will attract important consortia, with the goal of rehabilitating existing assets for 15 years with capital investments at competitive prices," said CEO Dr Fuad Alsheikh Mubarak after signing the contract with Severino Ramos Aparici, General Manager of Aguas de Valencia in the presence of senior executives of both parties.

 

"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," he stated.

 

"Another goal is to attract and localize new technologies and transfer knowledge to Saudi professionals. Additionally, it said, the opportunities in water sector attract capital into Saudi Arabia, as they are offered as part of an innovative partnership model that interests water sector local and global operating consortia," he added.-TradeArabia News Service