TAIF—The National Water Company (NWC) announced today the signing of a long-term contract with the Spanish company Aguas de Valencia. The contract, valued at over SAR 555 million (approximately $148 million), spans 15 years and aims to rehabilitate, operate, and maintain wastewater treatment plants in the Taif Governorate. This initiative aligns with the National Water Strategy, which seeks to attract private sector investment to enhance and sustain the company’s strategic assets, thereby promoting environmental sustainability and increasing investment in the water sector.
The contract was signed by NWC CEO Dr. Fouad Al-Sheikh Mubarak and Aguas de Valencia General Manager Severino Ramos at NWC’s headquarters in Jeddah, in the presence of senior officials from both sides.
NWC stated that the contract, which features a tariff rate of SAR 0.67 per cubic meter (approximately $0.18 per cubic meter), covers the rehabilitation, operation, and maintenance of two wastewater treatment plants in Taif with a total treatment capacity of 147,000 cubic meters per day. The company also noted that this contract is one of eight signed under the Long-Term Operation and Maintenance (LTOM) program, part of NWC’s strategic plans for existing environmental treatment plants.
The LTOM program is ongoing, with plans to offer contracts for 113 existing environmental treatment plants, boasting a total capacity of 2.4 million cubic meters per day, starting from this year, 2024. These contracts represent significant investment opportunities for both international and local companies. NWC emphasized that these partnerships aim to rehabilitate existing assets over a 15-year period with competitive capital investments.
NWC highlighted that these contracts are designed to support the national economy by enabling expansion and growth in the water sector, creating investment opportunities, and fostering long-term partnerships with the local and international private sector. This innovative investment model aims to operate existing strategic assets, attract and localize modern technologies, and transfer knowledge to national cadres. The water sector investment opportunities in Saudi Arabia are expected to attract substantial capital through innovative partnerships involving operators from both local and global alliances.
