NWC Awards SAR 2.18 Billion Heet and AlHayer Treatment Plants Long Term O&M Contract to AlKhorayef Company

The National Water Company (NWC) announced that it has awarded a Long-Term Operation and Maintenance (LTOM) contract for the rehabilitation, operation and maintenance of sewage treatment plants (STPs) in Heet and AlHayer, Riyadh, to Alkhorayef Water and Power Technologies Company (AWPT). The contract spans 15 years and is worth more than SAR2.18 billion. The project is meant to contribute to the objectives of the National Water Strategy 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 under the patronage of HE Eng. Abdulrahman Abdulmohsen AlFadley, Minister of Environment, Water and Agriculture and Chairman of NWC, between Eng. Nemer Mohammed AlShebl, NWC CEO, and CEO of AWPT.

Commenting on the significant milestone, the CEO of NWC said “the value of the contract signed with AWPT is more than SAR 2.18 billion (some USD 581 million), with a levelized tariff of SAR 0.45/m3, i.e. about USD 0.12/m3”.

AlShebl indicated that the contract aims at rehabilitation, operation, and maintenance of four STPs in Riyadh (Heet and AlHayer STPs) with a total treatment capacity of 870,000 m3/day. As part of the contract, he added, AWPT will invest over SAR 655 million in rehabilitation works, which will improve the operational performance and environmental compliance.

Nemer AlShebl said that this is the Fourth contracts to be awarded as LTOM Contracts under NWC’s LTOM program, which is part of its plan for existing STPs. NWC has received LTOM proposals for the STPs in AlHofuf, Omran and Oyon in AlAhsa governorate last month (November, 2023), to be the Fifth contract to be awarded with a total sewage treatment capacity of 472,000 m3/day.

The CEO continued “the company also expects to receive proposals for STPs in Dammam and Khobar, with a combined sewage treatment capacity of 654,000 m3/day, and the proposals of Wadi AlArej STP in Taif governorate with a total sewage treatment capacity of 147,000 m3/day”. In addition, the CEO said that “the NWC LTOM program is continuing, as NWC intends to tender (113) existing treatment plants with a total capacity of 2.4 million m3/day starting in 2024”.

These contracts are investment opportunities open for local and international companies. Alshebl said that these 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 localize new technologies and transfer knowledge to Saudi professionals. Additionally, he said, the opportunities in the water sector attracts capital into Saudi Arabia, as they are offered as part of an innovative partnership model that interests water sector players locally and globally.

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