AlKhorayef wins $426mn Riyadh sewage contract

The deal is key part of an initiative designed to aid growth in the Saudi water sector and foster long-term partnerships with local and international businesses

Saudi Arabia’s National Water Company (NWC) said it has awarded a Long-Term Operation and Maintenance (LTOM) contract worth over US $426mn to Alkhorayef Water and Power Technologies Company for the rehabilitation, operation and maintenance of sewage treatment plants (STPs) in Riyadh.

The 15-year-long deal will contribute to the objectives of the National Water Strategy, which is mainly aimed at achieving environmental sustainability, increasing investments in the water sector and opening up partnership opportunities for the private sector.

This is executed under an innovative agreements model that aims at engaging the private sector in investment opportunities involving the rehabilitation, operation and maintenance of NWC strategic assets.

The contract was signed by Engineer Nemer Mohammed Alshebl, the Chief Executive of NWC and CEO of Alkhorayef Water and Power Technologies Company, in the presence of Engineer Abdulrahman Abdulmohsen AlFadley, Minister of Environment, Water and Agriculture and Chairman of NWC.

Nemer Mohammed Alshebl said the contract signed with Alkhorayef is for a levelised tariff of about $11cu/m. The contract aims to cover the rehabilitation, operation, and maintenance of three STPs in Riyadh (Manfouha STPs complex) with a total treatment capacity of 700,000cu/m per day.

As part of the contract, AWPT will invest over $146.6mn in rehabilitation works, which will improve overall operational performance and environmental compliance. It is also the third LTOM contract being awarded by NWC in a bid to revamp the existing STPs.

This, however, is just the beginning of an extensive works and allocations campaign, as Nemer Mohammed Alshebi explained: “In addition, the NWC LTOM programme will continue, as NWC intends to tender 113 existing treatment plants with a total capacity of 2.4m cu/m per day starting in 2024.”

These contracts are investment opportunities open for local and international companies. The partnerships will attract important consortia, with the goal of rehabilitating existing assets for 15 years with capital investments at competitive prices.

Through these contracts, NWC aims to support the national economy by enabling expansion and growth in the water sector and creating opportunities and long-term partnerships with local and international private sector companies.

Another goal is to attract and localise new technologies and transfer knowledge to Saudi professionals, as well as attracting capital into Saudi Arabia. Hence, they are all offered as part of an innovative partnership model that interests water sector players locally and globally, the statement concluded.


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