The National Water Company (Saudi Arabia), has provided a 7-year contract to succeed in environmental treatment and water service management in Riyadh to the conglomerates of Alkhorayef Water & Power Technologies and Veolia.
The Ministry of Environment, Water and Agriculture (MEWA) had declared the beginning of the most recent phase of its reorganization of regional water facilities under the National Water Company, as a fragment of the Kingdom of Saudi Arabia’s privatization strategy.
The Minister of Environment, Water and Agriculture, Abdul Al-Fadli, released the integration of the Asir, Najran, Al-Baha, Jazan (Southern Cluster), and Makkah region (Western Cluster).
NCW’s 7-year contract to Alkhorayef Water & Power Technologies and Veolia
The National Water Company (NCW) released a press statement that stated that the integration of the Western Cluster and the Southern Cluster was prearranged to formulate the industry for private sector investment to create a surge in the efficiency of the operational processes, localize the technology & technical expertise, and restructure the technical gaps.
A boost in the privatization of government assets is a preliminary function of the Kingdom’s Vision 2030 program. In May 2021, Mohammed Al-Jadaan, Saudi’s Finance Minister, was in the quest to raise around USD 55 billion over the coming 4 years via its privatization program.
The contract, which is valued at SAR 358 million (USD 95.4 million) is linked to fourteen essential indicators, which include – developing and improving the customer experience, improving the network management, and increasing the operational efficiency by reducing water losses and through cost savings, according to reports of the Saudi Press Agency (SPA).
Mohammed Al-Mowkley, CEO of the National Water Company, stated that management deals were one of the main factors to enhance the sector and facilitate complete privatization.
Al-Mowkley stated that the National Water Company has accomplished 92% of its project to reorganize the thirteen administrative areas into 6 sectors. As of November 2021, the company is striving to complete the process after the creation of the Northern Sector.
The management deals to enhance the performance of the services offered by the sector will be declared by the end of 2021, stated the CEO of National Water Company.
Provided the targets are reached by the end of the 3rd year of the contract, the National Water Company will be able to approach the stage of concession deals, in which the responsibility of water services will be completely taken up by private sector companies before the tenure of 7 years is completed.
About National Water Company
The National Water Company (NWC) is a Saudi Arabian joint stock firm that is completely owned by the government. It was established to provide water and wastewater treatment services according to the recently drafted international standards.
NWC focuses on providing the best quality of drinking water by guaranteeing the availability of the best water and wastewater connections in every household. It also ensures the preservation of natural water resources and ultimately the environment. The NWC uses the Treated Sewage Effluent (TSE) with utmost efficiency and houses a team of some of the most training qualified Saudi Arabian employees.
About Alkhorayef Water and Power Technologies
Alkhorayef Water and Power Technologies (AWPT) is a dynamic player in the Saudi Arabian water and wastewater market for more than 30 years. AWPT has proved itself to be one of the leading EPC and O&M contractors in the Kingdom of Saudi Arabia by creating an excellent track record in infrastructure, wastewater, electromechanical, heavy civil field, and water.
The Veolia group targets to become the leading ecological transformation firm. With approximately 179,000 employees around the world, the Group fabricates and delivers innovative solutions that are both practical and efficient for waste, energy, and water management.