Saudi Arabia’s National Water Company (NWC) has announced the award of a substantial contract to Spain’s Aguas de Valencia Company for the rehabilitation, operation, and maintenance of sewage treatment plants (STPs) in Taif city. The contract spans 15 years and is valued at SAR 555 million ($148 million), with a levelized tariff of SAR 0.67 per cubic meter. Aguas de Valencia will manage two STPs in Taif, collectively capable of treating 147,000 cubic meters per day.
NWC disclosed the completion of eight contracts under its Long-Term Operation and Maintenance (LTOM) program, part of its strategic initiative to engage the private sector in water sector investments and enhance PPP funding. This year, NWC aims to award contracts for the rehabilitation, operation, and maintenance of 113 existing treatment plants, totaling 2.4 million cubic meters per day, under the LTOM scheme. These endeavors present significant investment opportunities for local and international private companies seeking entry into Saudi Arabia’s utility sector.
The contract spans 15 years and is valued at SAR 555 million ($148 million)
Dr Fuad Alsheikh Mubarak, CEO of NWC, emphasized that these partnerships aim to rehabilitate assets over 15 years through competitive capital investments, supporting the national economy and fostering growth in the water sector. The initiative also aims to attract and localize new technologies, transfer knowledge to Saudi professionals, and encourage capital inflows into Saudi Arabia. This innovative partnership model is designed to appeal to local and global water sector consortia, fostering long-term relationships and strategic advancements.