NWC signs 2 contracts worth SAR 714 mln with 2 alliances to manage western, northern clusters

Logo of National Water Co. (NWC)

National Water Co. (NWC) announced today, Sept. 14, signing two contracts with two private-sector consortiums to manage the operation and maintenance of water services and environmental treatment in the western and northern clusters. Both contracts were valued at over SAR 714 million.

The contracts were concluded with the Saudi-French and Saudi-Spanish consortiums, NWC said in a statement to Argaam.

Having signed these contracts, NWC would have completed the first phase of the water distribution sector’s privatization plan, in line with the ninth program of the National Water Strategy, Nemer M. Al-Shebl, NWC Acting CEO, said. This strategy included the restructuring of the Kingdom’s water sector through the merger of water directorates and the signing of management contracts for the six clusters.

NWC will start preparation for the next phase of the private sector participation, namely concession agreements, he added. 

The contracts are contingent on 14 key performance indicators that should be realized by each alliance. The most important of these are improving and enhancing the customer experience, increasing operational efficiency by rationing costs, reducing water loss, and improving network management. The contract period is seven years, Al-Shebl added.

If the targets are met ahead of schedule and the readiness of the sector is increased, NWC can move directly to the concession contract phase where the private sector takes full responsibility for water services and not wait until the end of the seven years, he stated.