Meed | NWC seeks interest for privatisation programme

NWC seeks interest for privatisation programme

21 May 2024

Saudi Arabia's National Water Company (NWC) has invited interest from international and local water companies to bid for the second-phase packages of the state-backed utility's long-term operation and maintenance (LTOM) programme.

NWC expects to receive responses to its expression of interest (EoI) request by 6 June.

This phase is divided into 10 packages encompassing 116 existing sewage treatment plants with a total treatment capacity of about 2.47 million cubic meters a day (cm/d).

Source: NWC

NWC, which provides water distribution, sewerage collection and wastewater treatment services throughout Saudi Arabia, said the LTOM form of agreement is similar to a build-operate-transfer structure and risk allocation.

Earlier this month, NWC announced the completion of contract awards for the first phase of the LTOM programme.

According to NWC asset privatisation director, Richard Onses, the first phase comprises eight packages covering 4.2 million cubic metres of sewage water treated every day for the next 15 years.

The average cost of a cubic metre of treated sewage is SR0.5, which is less than $c 15 cents including capital and operational expenditure and electricity costs.

The LTOM programme aims to extend the remaining life of NWC's sewage treatment plant assets through rehabilitation and debottlenecking, as well as to upgrade and improve processes to comply with treated sewage effluent (TSE) quality standards.

The projects also aim to reduce the environmental impact of the assets and processes on the community.

NWC's advisory team for the first phase of its LTOM programme includes US/India-based Synergy International, Germany's Fichtner and UK-headquartered Clifford Chance as financial, technical and legal advisers, respectively.

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Jennifer Aguinaldo