Saudi Arabia seeks firms for 300km water transmission scheme

8 November 2024

 

Saudi Arabia’s Water Transmission Company (WTCO) has invited companies to express interest in an upcoming tender to develop an independent water transmission system (IWTS) project in the country.

The Ras Mohaisen-Baha-Mecca IWTS will have a contracted transmission capacity of 515,000 cubic metres a day, and extend approximately 300 kilometres.

The pipeline will be part of WTCO’s so-called Western supply group. 

Established under Council of Ministers Resolution No. 32 in September 2019, WTCO is the licensed desalinated water transmission system operator in Saudi Arabia.

It is responsible for water transmission across the kingdom, including operating and maintaining water transmission systems and storage facilities.

MEED reported in March that the responsibility for procuring several water transmission pipeline projects in Saudi Arabia had been transferred from the state water offtaker, Saudi Water Partnership Company, to WTCO.

Competitive process

WTCO intends to conduct a competitive process to select a developer or developer consortium to develop the project on a design, build, finance, lease and transfer basis.

The project company will lease the entire transmission capacity to WTCO under a water transmission development and lease agreement, the term of which is expected to be up to 35 years.

Companies can express interest until 16 November.

WTCO’s transaction advisers for this project include US/India-based Synergy Consulting as lead and financial adviser, US-headquartered Clifford Chance as legal adviser and Austria-based ILF as technical adviser.

The project supports the Saudi National Water Strategy (NWS 2030), which aims to reduce the kingdom’s water demand-supply gap and provide 90% of the national urban supply via desalinated water to reduce reliance on non-renewable ground sources.

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Jennifer Aguinaldo
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