Saudi Arabia- National Water Company (NWC) is making a significant leap forward in enhancing its water treatment infrastructure by awarding a substantial contract to the Spanish firm Aguas de Valencia. This contract, worth over SAR 555 million ($148 million), is set to span the next 15 years and will involve rehabilitating, operating, and maintaining sewage treatment plants (STPs) in Taif city. This partnership is a key element of NWC’s strategic plan to engage the private sector in the country’s water sector investment opportunities.
The contract outlines a levelized tariff of SAR 0.67 per cubic meter, equivalent to about USD 0.18 per cubic meter. Under this agreement, Aguas de Valencia will manage two STPs in Taif, which together have a treatment capacity of 147,000 cubic meters per day. This effort is part of NWC’s broader Long-Term Operation and Maintenance (LTOM) program, which has already seen the signing of eight contracts.
At the contract signing ceremony in Jeddah, NWC’s CEO, Dr. Fuad Alsheikh Mubarak, emphasized the partnership’s importance. The event was attended by Severino Ramos Aparici, General Manager of Aguas de Valencia, and senior executives from both organizations. Dr. Mubarak highlighted that these contracts are designed to support the national economy by promoting expansion and growth within the water sector. These partnerships are expected to create numerous opportunities and foster long-term collaborations with both local and international private sector companies.
A primary goal of this initiative is to attract and localize new technologies, thereby transferring valuable knowledge to Saudi professionals. This emphasis on technology and knowledge transfer is expected to benefit the local workforce and the broader water sector in Saudi Arabia significantly.
NWC’s LTOM program is ambitious, aiming to award contracts for the rehabilitation, operation, and maintenance of 113 existing treatment plants, with a total capacity of 2.4 million cubic meters per day, within the current year. This large-scale program offers immense investment opportunities for both local and international private companies interested in entering the Saudi utility sector. The innovative partnership model employed by NWC is designed to attract significant consortia, ensuring competitive prices and substantial capital investments.
This strategic move by NWC aligns with the objectives of the National Water Strategy, which seeks to boost private sector involvement in the water sector. By enabling these partnerships, NWC aims to attract capital into Saudi Arabia and create a favorable environment for private sector growth and technological advancement.
The partnership with Aguas de Valencia underscores NWC’s commitment to enhancing the efficiency and capacity of its water treatment facilities. As part of this contract, the Spanish company will undertake significant rehabilitation efforts to modernize the existing assets, ensuring they meet contemporary standards and operational efficiency.
NWC’s strategic plans and the LTOM program reflect a forward-thinking approach to managing the country’s water resources. By leveraging private sector expertise and investment, NWC aims to address the growing demand for efficient and reliable water treatment solutions. This initiative is poised to play a crucial role in the sustainable development of Saudi Arabia’s water sector, providing long-term benefits to both the economy and the environment.
In summary, NWC’s collaboration with Aguas de Valencia marks a significant milestone in Saudi Arabia’s efforts to enhance its water treatment infrastructure. Through strategic partnerships and innovative investment models, NWC is paving the way for a more efficient, technologically advanced, and economically robust water sector.
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