Alkhorayef-Veolia alliance wins SAR 358 mln operation, maintenance deal in Riyadh

Logo of National Water Co. 

National Water Co. (NWC) said today, Sept. 16, that the consortium of Alkhorayef Water and Power Technologies Co. (AWPT) and France’s Veolia won a seven-year management, operation and maintenance (MOM) contract worth SAR 358 million, SPA reported. 

Under the contract, the consortium will undertake the management, operation and maintenance of water and environmental treatment services in Riyadh region (the city of Riyadh and all its provinces).
  

The company is proceeding with the process of restructuring water services and integrating them under the company’s umbrella. It has completed 92% of the restructuring project and division of 13 administrative areas into six sectors under its umbrella. 

By early November 2021, NWC will reach 100% by merging the last sectors - the northern sector - which includes four administrative regions (Qassim, Hail, Al-Jouf and the Northern Borders), and thus all of the Kingdom's regions will be fully managed by NWC, said Mohammed Al-Mowkley, CEO of NWC. 
  

In addition, the company intends to complete the preparation of the distribution sector for privatization, through improving the performance of the sector's services via management contracts that will be completed by the end of this year, he added. 
  

Al-Mowkley also pointed out that management contracts are among the main pillars to improve the sector and prepare it for full privatization, as they depend on achieving 14 main indicators. These are mainly improving and developing the customer experience, raising operational efficiency through cost effectiveness and reducing water loss, and enhancing network management, in addition to motivating the alliance to do its utmost in order to receive incentives. 

The contract term is seven years, said Al-Mowkley, adding that if the targets are achieved after the third year of the contract, and the sector’s readiness improves, NWC will be able to move directly to the stage of concession contracts, in which the private sector will take full responsibility for water services.