The developer consortium that is implementing the contract to develop and operate the proposed Al-Haer independent sewage treatment plant (ISTP) project in Riyadh is understood to have selected India-headquartered VA Tech Wabag to undertake the project's engineering, procurement and construction (EPC) contract.

The selection of an EPC contractor is the latest development for the Al-Haer ISTP, which is the first project to be tendered under the third phase of the kingdom's ISTP procurement programme.

The Al-Haer ISTP project involves the development of a water treatment plant with a capacity of 200,000 cubic metres a day (cm/d).

It also includes the development of a treated sewage effluent (TSE) reuse system that covers a 32-kilometre pipeline with a capacity of 400,000 cm/d, a pumping station and TSE reservoir tanks with a capacity of 200,000 cubic metres.

In July, it was announced that Saudi-listed Power & Water Utility Company for Jubail & Yanbu (Marafiq) will join the developer consortium to develop the SR1.5bn ($400m) Al-Haer ISTP project. The consortium initially comprised the local Miahona Company and Belgium's Besix.

The Miahona-Besix consortium signed a 25-year water-purchase agreement with Saudi Water Partnership Company (SWPC) in March this year.

Marafiq will own 35%, while Miahona will maintain a 45% stake in the project.

The Miahona/Besix team offered to develop the project for SR1.9407 ($0.5173) a cubic metre.

The build-own-operate-transfer project is expected to reach commercial operation by the third quarter of 2027.

US/India-based Synergy Consulting provided financial advisory services to the Miahona-Besix team.  

SWPC qualified more than 20 companies last year to bid for the Al-Haer ISTP contract. It requested proposals for the contract from qualified bidders in November 2022.

Third batch schemes

Two other projects comprise the initial third ISTP batch. The Riyadh East and Khamis Mushait ISTP schemes will have 150,000 cm/d and 50,000 cm/d capacities, respectively. The contract to develop the two schemes has yet to be tendered.

Originally comprising three schemes with a total capacity of 400,000 cm/d, batch three of the ISTP programme has been expanded to include the Hadda ISTP, which has a design capacity of 500,000 cm/d, and the Arana ISTP, which has a design capacity of 800,000 cm/d.

The procurement process for these two schemes will be undertaken separately.

UAE-based Future Water & Power Consulting, Netherlands-headquartered KPMG and US firm White & Case are providing technical, financial and legal advisory services, respectively, to the client for the ISTP batch three projects.