The National Water Company (NWC) has finalized the tenth set of long-term operation and maintenance contracts (LTOMs) with a consortium comprising Saudi and Chinese entities. This agreement pertains to the restoration, management, and upkeep of nine sewage treatment plants (STPs) across four regions within the company’s Northern Cluster, valued at over SAR 1.3 billion. The plants included in this contract are located in Unaizah, Al-Bukairiyah, Al-Muznib, Al-Ras, Hail 1, Hail 2, Baqa’a, Sakaka, and Turaif, collectively designed to treat more than 337,000 cubic meters of wastewater daily.
The contract was officially signed by NWC’s CEO, Dr. Fouad bin Ahmed Al Sheikh Mubarak, alongside representatives from the Saudi-Chinese consortium, including Armada’s Executive Director Jamaan Al-Jamaan and Liu Meng, CEO of Zhangzhou United Waters. This event took place in the presence of executive deputies from both parties at NWC’s headquarters in Riyadh.
NWC emphasized that this contract aligns with the goals of the National Water Strategy (NWS), which seeks to engage the private sector in investment opportunities to rehabilitate, maintain, and operate the company’s strategic assets. The objectives include achieving environmental sustainability, enhancing operational efficiency and compliance, and increasing investment volumes in the water sector through a novel investment agreement model.
The contract’s value with the Saudi-Chinese consortium exceeds SAR1.3 billion (more than $348 million), with a tariff set at SAR0.69 per cubic meter, approximately equivalent to $0.18 per cubic meter.
NWC also highlighted that it has successfully signed eight contracts under the Long-Term Operation and Maintenance (LTOM) initiative as part of its strategic framework for existing sewage treatment plants (STPs). The company confirmed that the LTOM program is ongoing and plans to tender 51 existing STPs this year, with a total capacity of 888,000 cubic meters per day. NWC noted that these plants present investment opportunities for both international and local firms, and these collaborations will foster significant partnerships aimed at rehabilitating existing assets over a 15-year timeline with competitive capital investments.
Through these contracts, the company aims to bolster the national economy by facilitating growth and expansion in the water sector, creating investment opportunities, and establishing long-term partnerships with both local and international private-sector entities. Additionally, NWC is committed to attracting and localizing cutting-edge technologies while transferring knowledge to national personnel. The investment prospects in the Kingdom’s water sector are expected to draw both local and international capital.
Source: The Saudi Press Agency
