Local and international utility developers and contractors are expected to submit their letters of intent to bid for a contract to develop and operate the Riyadh-Qassim independent water transmission pipeline (IWTP) project in Saudi Arabia by 31 December.

State water offtaker Saudi Water Partnership Company (SWPC) is also expected to extend the current bid submission deadline, which is in February next year, according to a source familiar with the tendering process. 

The Riyadh-Qassim IWTP scheme will extend 859 kilometres (km), supplying both regions with potable water. It will have a transmission capacity of up to 685,000 cubic metres and feature 11 receiving gates.

SWPC organised a developers' meeting for the project in November.

Companies that sent representatives to the meeting include local firms AlBawani Group, Alfanar Company, Lamar Holding, Vision Invest, Nesma Company, Mutlaq Al-Ghowairi Contracting Company and Buhur Investment, as well as several China-headquartered firms.

The scheme is the third IWTP contract to be tendered by SWPC since 2022.   

The first two are the 150km Rayis-Rabigh IWTP, which is under construction, and the 603km Jubail-Buraydah IWTP, the contract for which is expected to be awarded imminently to a team of Riyadh-based companies comprising Aljomaih Energy & Water, Nesma Company and Buhur for Investment Company.

Like the first two IWTPs, the Riyadh-Qassim IWTP project will be developed using a 35-year build-own-operate-transfer contracting model. It is expected to reach commercial operations in the third quarter of 2029.

SWPC’s transaction advisory team comprises the US/India’s Synergy Consulting as financial adviser and the local Amer Al-Amr and Germany’s Fichtner Consulting as legal and technical advisers, respectively.

SWPC’s obligations under the water transfer agreement will be guaranteed by a credit support agreement entered into by the Finance Ministry on behalf of the Saudi government.

The project is part of the kingdom’s National Water Strategy 2030, which aims to reduce the water demand-supply gap and ensure desalinated water accounts for 90% of national urban supply, to reduce reliance on non-renewable ground sources.