2bn Euros Over 15 Years: SUEZ Secures Its Largest Contract in the Middle East, to Support the Sustainability of the Water Sector in Oman

  • During the visit of His Majesty Sultan Haitham bin Tariq, the Head of State of the Sultanate of Oman, to France, the Oman Water and Wastewater Services Company S.A.O.C. (NAMA Water Services) announced the awarding of a Performance-based Contract to SUEZ and its partners, National Trading Company L.L.C. and National Energy Center S.A.O.C. This contract will facilitate water and wastewater services for the capital, Muscat, and the North and South Sharqiyah Governorates (Cluster 1).
  • Spanning 15 years and valued at 2 billion euros, this contract encompasses the operation and maintenance of water and wastewater infrastructure and services for 2.3 million residents, representing 43% of Oman’s total population. Additionally, it includes targets for reducing water loss to align with the highest international standards.

As Oman experiences economic expansion and increasing demand, effective and sustainable water management has become a crucial focus for the country’s future. The Omani government seeks to tackle these challenges through the ‘Vision 2040’ initiative by minimizing costly water losses and adopting performance-oriented practices to enhance operational efficiency. They also aim to stabilize the workforce and boost the long-term appeal of the Omani water sector by accelerating capacity building and knowledge transfer.

To fulfill these goals, the national water company, NAMA Water Services, is launching a new Performance-based Contract aligned with international best practices. This contract will provide water and wastewater services across Muscat and the North and South Sharqiyah Governorates (Cluster 1), which is the most densely populated area of the country, home to 2.3 million residents.

The contract, leveraging SUEZ’s expertise, encompasses two main areas:
– Water Services: This includes the operation and maintenance of 240 wells and 10,700 km of pipelines to supply 470,000 m³/day of drinking water. It also involves refurbishing and upgrading four desalination plants and managing over 400,000 smart meters.
– Wastewater Services: This covers the operation and maintenance of 22 wastewater treatment plants, with a total treatment capacity of 280,000 m³/day, approximately 3,000 km of sewer networks, and 400 km of treated effluent networks that provide treated water for reuse, along with the installation and management of new wastewater house connections.

Xavier Girre, CEO, stated, “We are honored to partner with the Omani authorities to deliver sustainable drinking water and sanitation services to more than 2 million individuals. This contract not only represents a significant achievement as the largest awarded to SUEZ in the Middle East, but also underscores our growth momentum in the region. Our success highlights the recognition of SUEZ teams’ expertise in tackling critical water challenges amid structural water stress.”

This performance-based contract includes 33 key performance indicators (KPIs) to ensure the sustainable delivery of high-quality water services, which will influence the operators’ compensation. These KPIs include:
– Reducing water losses from 34% to 11% by 2040
– Ensuring a high-quality, 24-hour water supply
– Implementing optimized preventive maintenance to enhance service reliability and prolong asset lifespan

These service enhancements will utilize SUEZ’s established practices, combined with the Group’s technologies and digital solutions, including Aquadvanced for plant and network monitoring, performance optimization, and reduction of energy and chemical usage; Inflowmatics and iDroloc for advanced leak detection; and Sewerball for quick identification of water pollution or infiltration in sanitation networks.

In addition to technology, the project’s success hinges on the expertise of Omani teams. A comprehensive capacity-building program, leveraging international expert knowledge, has been created to foster long-term operational and managerial skills. The performance-based contract emphasizes a strong commitment to omanization (>83%) and In-Country Value, supporting the Government’s strategic goals as outlined in Oman Vision 2040.

A shared governance model between NAMA Water Services and SUEZ will ensure effective performance delivery. In this partnership, NAMA Water Services will maintain its strategic and regulatory oversight, while the Consortium will manage daily operations through the dedicated company National Sustainable Water Alliance L.L.C:

– SUEZ, a global utility leader, will oversee operations management for water and wastewater.
– National Trading Company L.L.C., a multi-sector investor in Power & Utilities, Manufacturing, IT, Real Estate, and retail, will contribute field expertise, financial acumen, and investment insights.
– National Energy Center (NEC), a prominent Omani utility development and infrastructure investment firm focused on water, energy, and digital utility solutions, will play a vital role in advancing smart utility technologies, digital transformation efforts, advanced metering infrastructure, operational optimization, and performance enhancement programs throughout the contract.

Source: SUEZ

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