meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi water contracts set another annual record

11 March 2025

 

Stakeholders in Saudi Arabia's water sector awarded contracts totalling $14.9bn in 2024, exceeding by 3% the previous year's figure, which set a record high.

This is a significant milestone considering that the annual value of contracts awarded in the kingdom's water sector averaged only about $6.5bn between 2018 and 2022.

A major outlier, the $4.7bn Trojena Valley dams in Neom, boosted the total value of contracts awarded in 2024. It also allowed the gigaproject developer to outperform the usual top clients, which include National Water Company (NWC) and Saudi Water Authority (SWA), formerly Saline Water Conversion Corporation (SWCC). While NWC awarded contracts valued at approximately $4bn during the year, SWA made contract awards of $3.3bn.

The sustained capital spending in the sector aligns with Saudi Arabia's 2030 National Water Strategy, which aims to reduce the water demand-supply gap and ensure desalinated water accounts for 90% of the national urban supply, to reduce reliance on non-renewable ground sources.

The kingdom's main desalinator, boasting the world's largest water desalination fleet, SWA tendered and awarded several major water desalination contracts in 2024, despite ongoing restructuring in the water sector, which entailed transferring ownership of SWCC's existing desalination plants to sovereign wealth vehicle the Public Investment Fund.

During the year, SWA awarded the engineering, procurement and construction contracts for the Jubail and Ras Al-Khair seawater reverse osmosis (SWRO) plants, respectively worth $677m and $625m.

It also tendered the contracts for two other SWRO schemes – Yanbu 5, which was subsequently cancelled, and Shoaiba 6, which was similarly cancelled but was retendered before the end of 2024.

In addition to these, SWA awarded the contracts for several storage or reservoir projects, including the Al-Moghamas phase two strategic storage tank project and the Riyadh Southern Ring water transmission system.

NWC awarded $2.5bn-worth of contracts for the first phase of its long-term operation and maintenance (LTOM) programme. The initial phase comprises eight packages covering the treatment of 4.2 million cubic metres a day (cm/d) of sewage water for the next 15 years.

The average cost of a cubic metre of treated sewage is SR0.5, which is less than $c15, including capital and operational expenditure and electricity costs.

Local contracting firm Alkhorayef Water & Power Technologies won three contracts with a combined capacity of 2.04 million cm/d, nearly half of the awarded total. These three contracts are worth more than SR5.53bn ($1.47bn).

A consortium of France's Suez and the local Al-Awael Modern Contracting Group with its affiliate Civil Works Company (CWC) won two packages worth a combined SR1.84bn. A consortium comprising France's Veolia and Awael-CWC won a single package worth SR1.26bn. Local utility developer Miahona won one package worth SR392m.

Public-private partnerships

Shifting from awarding several public-private partnership (PPP) contracts a year, Saudi Water Partnership Company (SPWC) awarded a single contract in 2024 – the $400m Al-Haer independent sewage treatment plant (ISTP) project.

A developer team comprising the local Miahona Company and Belgium's Besix won the contract in March 2024, offering to develop the project for SR1.9407 ($c51.73) a cubic metre. Power & Water Utility Company for Jubail & Yanbu (Marafiq) subsequently joined the consortium.

The project involves the development of a water treatment plant with a capacity of 200,000 cm/d.

Despite widespread expectations to the contrary, SWPC did not manage to award contracts in 2024 for two of its much-anticipated independent water projects (IWPs) and one independent water transmission pipeline (IWTP) scheme.

In April 2024, SWPC received two bids for a contract to develop the 300,000 cm/d Ras Mohaisen seawater reverse osmosis IWP. Spain’s Acciona and a team led by Saudi utility developer Acwa Power submitted bids for the contract.

SWPC eventually selected the Acwa Power-led team as the preferred bidder, but the signing of the water-purchase agreement only took place in February 2025.

In September 2024, SWPC received a single bid from a team comprising Acwa Power, Haji Abdullah Alireza & Company (Haaco) and AlSharif Contracting & Commercial Development for the Jubail 4 and 6 IWP located in the Eastern Region.

Although the bid evaluation was completed in December, the offtake agreement for the 600,000 cm/d plant has yet to be signed.

Despite several delays last year, projects activity at the start of 2025 suggests the possibility of a return to the higher levels seen by SWPC in previous years.

In January, it tendered the contracts to develop and operate two ISTP projects in the kingdom. Located in Mecca, the first scheme, the Arana ISTP, will have an initial capacity of 250,000 cm/d, expandable to 500,000 cm/d.

The second scheme, the Hadda ISTP, will also be located in Mecca and will have an initial capacity of 100,000 cm/d, expandable to 250,000 cm/d.  

The scopes of work include treated sewage effluent (TSE) re-use systems consisting of transmission pipelines and TSE tanks.

Expected to be operational by 2028, both projects will be implemented on a 25-year build, own, operate and transfer model. SWPC expects to receive bids for the contracts by 5 May.

Earlier in March 2025, SWPC awarded the $2.2bn contract to develop the Jubail-Buraydah IWTP project to a team comprising local companies Aljomaih Energy & Water, Nesma Company and Buhur for Investment Company.

The 587-kilometre pipeline will be able to transmit 650,000 cm/d of water and will be developed at a levelised cost of SR3.59468 a cubic metre.

2025 outlook

Last year, NWC, which provides water distribution, sewage collection and wastewater treatment services throughout Saudi Arabia, sought interest for the second phase of its LTOM programme, which resembles a build-operate-transfer structure and risk allocation. This phase is divided into 10 packages encompassing 116 existing sewage treatment plants.

There is an expectation that SWA, along with Water Transmission Company (WTCO), will continue to engage the market with new tenders.

In December, WTCO initiated the prequalification process for the Ras Mohaisen-Baha-Mecca independent water transmission system project.

It is also continuing the bid evaluation process for a contract to build phase four of the Al-Shuqaiq to Jizan water transmission system. Estimated to be worth $2.9bn, the project is split into four packages that include pipeline supply, water transmission pipelines, pumping stations and strategic reservoirs.

Having prequalified companies that can bid separately for seven ISTPs and five water projects in November last year, there is an expectation that SWPC will issue the first tenders for this project in 2025.

It prequalified 53 companies to bid for the seven ISTPs, which have a total combined capacity of 700,000 cm/d, and 41 to bid for the five IWPs, which have a total combined capacity of 1.7 million cm/d. The tenders for these projects are expected to be issued over two years, until 2026. 

Project finance

With so many independent water contracts under execution and a robust pipeline of upcoming work, the liquidity of the mostly local banks that are providing project finance could become an issue, experts say.

“Banks are facing liquidity issues in terms of debt-versus-loan ratios,” says an executive with a Saudi Arabia-headquartered infrastructure investment group.

He adds that since some Saudi banks have relatively low US dollar reserves, the market will likely see a mix of Saudi riyal and US dollar financing being offered for new projects.

“Lending rates are already up from previous projects such as the Jubail 4 and 6 IWP and the Jubail-Buraydah IWTP. It will be interesting to see how bids develop this year,” he tells MEED.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13467032/main0500.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Kuwait tenders two Al-Mutlaa City construction packages

    2 September 2026

    Register for MEED’s 14-day trial access 

    Kuwait’s Public Authority for Housing Welfare (PAHW) has tendered two contracts covering the construction of public buildings across five districts at its Al-Mutlaa City residential project.

    The first tender covers construction in the N5 and N6 districts, while the second covers N1, N3 and N4.

    The tenders were issued on 30 August, with a bid submission deadline of 30 September.

    The project is a housing scheme located 38.3 kilometres northwest of the Kuwait metropolitan area.

    It covers approximately 104 square kilometres and is expected to house up to 400,000 people.

    The mixed-use development will include residential, social, commercial and light industrial areas.

    In March 2023, MEED reported that PAHW had appointed France-based Egis as a project management consultant for the Al-Mutlaa City development.

    Under the agreement, Egis is providing programme-level service management, construction logistics and interface management services.

    The scope of work also includes cost management, a digital programme management system and a project management information system for the scheme.

    Al-Mutlaa City is one of the largest housing infrastructure projects being developed by the government as part of Kuwait’s Vision 2035.

    UK analytics firm GlobalData expects Kuwait’s construction industry to grow at an average annual rate of 7.1% in 2025-28, supported by investment in renewable energy, transport and oil and gas projects, as well as spending under the New Kuwait 2035 National Development Plan.

    Under this strategy, the government plans to invest KD350m ($1.1bn) to develop several sports projects in the country.

    The residential construction sector is expected to register average annual growth of 3.8% in 2025-28, supported by the government’s plan to build 65,500 housing units by 2029 through five projects.

    MEED’s September 2026 report on Kuwait includes:

    > COMMENT: Kuwait keeps dealmaking alive under fire
    > GOVERNMENT: Kuwait shows tentative signs of economic development
    > BANKING: Necessity is the mother of invention for Kuwaiti lenders
    > OIL & GAS: Regional war to have lasting impact on Kuwaiti oil sector
    > POWER & WATER: Kuwait utilities investment shifts towards water
    > CONSTRUCTION: Kuwait construction holds up despite regional strife
    > MARKET TALK: Kuwait stands resilient amid regional tensions

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19245517/main.png
    Yasir Iqbal
  • Preferred bidders emerge for Zatca residential PPP

    2 September 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Zakat, Tax and Customs Authority (Zatca), through the National Centre for Privatisation and PPP (NCP), has selected preferred bidders to develop residential buildings at various land ports across the kingdom.

    The project covers developments across nine land ports, separated into two packages.

    Local firm Saudi Arabian Trading & Construction Company has been selected as the preferred bidder for the first package, which includes the Al-Batha, Salwa, Al-Raqi, Jadidat Arar, Al-Wadiah and Empty Quarter sites.

    Bahrain-headquartered Lamar Holding is the preferred bidder for the second package, which includes land ports at Al-Hadithah, Halat Ammar and Al-Durrah.

    The project will be implemented as a public-private partnership (PPP) on a design, build, finance, operate, maintain and transfer basis, with a contract duration of 23 years, including the construction period.

    The contract covers the construction and management of new residential buildings and associated facilities at the land ports, as well as the rehabilitation of existing facilities.

    The project is the latest scheme in the kingdom’s PPP pipeline. In January, Saudi Arabia launched a national privatisation strategy aimed at mobilising $64bn in private sector capital by 2030.

    Building on the privatisation programme first introduced in 2018, the strategy focuses on unlocking state-owned assets for private investment and privatising selected government services.

    In a statement, NCP said the strategy comprises 147 opportunities drawn from a broader pipeline of more than 500 projects across 18 sectors.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19244076/main.jpg
    Yasir Iqbal
  • Egypt signs PPA for 1GW Ras Shokeir wind farm

    2 September 2026

    Register for MEED’s 14-day trial access 

    A joint venture of the local Hassan Allam Utilities Energy and Infinity Power has signed a power purchase agreement (PPA) with Egyptian Electricity Transmission Company (EETC) for the development of the 1GW Ras Shokeir wind project in Egypt.

    The project is located in Egypt’s Red Sea Governorate, within the Gulf of Suez wind corridor. It will cover approximately 143 square kilometres.

    The PPA has a 25-year term. The project will supply electricity to Egypt’s national grid.

    Ras Shokeir is expected to generate enough electricity to power more than 1.2 million Egyptian homes. It is also expected to avoid more than 1.36 million tonnes of CO2 emissions annually.

    The PPA was signed by EETC chairperson Mona Rizk and Infinity Power co-founder and CEO Nayer Fouad, representing the Infinity Power-Hassan Allam consortium.

    The signing brings the project closer to development as Egypt seeks to expand its renewable energy capacity. Egypt has set a target for renewable energy to make up 42% of the electricity mix by 2030 and 65% by 2040.

    This includes the 500MW Amunet 2 wind project, which is being developed by UAE-headquartered Amea Power following the commissioning of the first Amunet wind project in June 2025.

    Hassan Allam Utilities Energy and Infinity Power are also developing Egypt’s $560m West Minya solar plant, which will combine 1,000MWac of solar photovoltaic capacity with a 600MWh battery energy storage system.

    In June, MEED reported that a joint venture of Hassan Allam Construction and India’s Sterling & Wilson Renewable Energy had won the engineering, procurement and construction contract for the project.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19242701/main1603.jpg
    Mark Dowdall
  • NWC confirms $347m Saudi sewage treatment plant deal

    2 September 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s National Water Company (NWC) has signed a contract worth more than SR1.3bn ($347m) with a Saudi-Chinese consortium to rehabilitate, operate and maintain nine sewage treatment plants (STPs).

    The 15-year contract covers plants located across the Hail, Qassim, Al-Jouf and Northern Borders provinces. The plants have a combined treatment design capacity of more than 337,000 cubic metres a day (cm/d).

    MEED exclusively reported in January that the consortium comprising China’s Jiangsu United Water Technology and Saudi-based Armada Holding had won the contract for the project.

    The contract is for the Northern Cluster Sewage Treatment Plants Package 10 (LTOM10) and includes an initial three-year period for rehabilitation and upgrade works, followed by long-term operation and maintenance.

    NWC said the contract was signed with a tariff of SR0.69 ($0.18) a cubic meter.

    As MEED understands, United Water will be responsible for design, financing, operation and part of the construction works. Saudi Arabia’s Armada Holding will handle construction, equipment import customs clearance and local business communications. UAE-registered Prosus Holding will act as the financial investor.

    LTOM packages

    The same consortium is also expected to sign a contract for Package 11 of the LTOM programme in the coming months.

    In April, MEED exclusively reported that the consortium won the contract for this project, which will have a combined capacity of about 440,000 cm/d.

    Bids for North Western B Cluster (LTOM12) remain under evaluation. The contract covers the construction and upgrade of seven STPs with a combined capacity of about 162,000 cm/d.

    NWC also tendered the Eastern A Cluster (LTOM14) package in April, covering the upgrade of six existing STPs with a capacity expansion of 30,000 cm/d at the Al-Jarodia STP.

    This will increase total treatment capacity from about 263,000 cm/d to approximately 293,000 cm/d, with an estimated cost of $180m.

    The bid submission deadline is 30 September.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19242964/main.jpg
    Mark Dowdall
  • Iraq looks to accelerate oil pipeline projects

    2 September 2026

    Iraq’s Ministry of Oil has held talks with a delegation from Qatari company UCC on accelerating the progress of two major pipeline projects, according to a statement from Iraq’s Office of Media and Government Communication.

    The first proposed pipeline route extends from Basra, in southern Iraq, to Haditha, located about 200 kilometres northwest of Baghdad, then on to Faysh Khabur, which lies on the border with Syria and near the border with Turkiye.

    The second pipeline extends from Haditha to Syria’s coastal city of Baniyas.

    Discussions covered the contract type, implementation timeline and “other technical matters”, according to the statement released by the Iraqi government.

    During the meeting, Iraq’s Minister of Oil, Basem Mohammed Khudair Al-Abadi, emphasised the need to expedite the tendering process for the project contracts.

    He said all obstacles to progress on the projects needed to be eliminated.

    He also said weekly meetings will be held between relevant parties to reach agreements on the economic models for the pipelines and their routes.

    The Ministry of Oil said UCC is leading a consortium of companies developing the projects.

    It added that the consortium includes US-based Chevron, the investment company TI Capital and France’s TotalEnergies.

    In July, Iraq’s cabinet approved Basra Oil Company signing a ​heads of agreement and a non-disclosure agreement with the consortium to explore possible future oil pipeline projects.

    Under the terms of the agreement, the consortium will prepare technical and financial feasibility studies for strategic export pipeline projects.

    Also in July, US-based KBR was awarded a consultancy contract for the section of pipeline due to extend from Basra to Haditha.

    In April, Iraq announced the allocation of $1.5bn for the Basra-Haditha route, while the larger scheme is estimated at around $5bn.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19241649/main.jpg
    Wil Crisp