Alkhorayef signs SAR 1.7B O&M contract with NWC

Alkhorayef Water and Power Technologies Co. (AWPT) signed a long-term operation and maintenance (O&M) contract with National Water Co. (NWC) to develop sewage treatment plants in Al Ahsa, according to a statement to Tadawul.

The contract will extend for 15 years at a total value of SAR 1.7 billion, excluding VAT.

AWPT will undertake the design, rehabilitation, testing, commissioning, operation, maintenance, and handover of three existing plants, Al Hafuf STP 1, Al Oyun STP and Al Omran STP. Moreover, there will be one new sewage treatment plant, Al Hafuf STP 2.

The rehabilitation process will be completed in two phases (36 months from the contract date).

Operation and maintenance will be carried out in 15 years (180 months) from the contract date.

The total design treatment capacity will be upgraded to 472,000 m3/day from 457,500 m3/day.

The relevant financial impact will appear in Q3 2024, the statement added.

There are no related parties to the contract.

AWPT received the agreement on April 29 after all the parties signed it.