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Business Development Initiatives TSE Initiative

TSE Initiative
 
 

   

The objective of the TSE (Treated Sewage Effluent) initiative is to effectively utilise the currently wasted resources, by creating an environmentally friendly and financially sustainable long term market for treated sewage effluent

This is via providing large volumes of TSE to customers for industrial, recreational & commercial uses including agricultural & muncipal, uses among many other non-human consumption uses.

Multiple benefits are achieved from the development of the TSE initiative including:

• Addressing the water shortage challenges in KSA while  conserving scarce water resources
• Maintaining existing infrastructure & Developing new infrastructure according to international best practices.
• Achieving  environmental benefits such as net carbon reductions, while  indirectly contributing to lesser capital requirements in power/water generating capacities.

To capture the TSE opportunity, NWC will  initially create Business Units (BUs) , under the Business Development Department, which will potentially pave the way for SPV’s to be formed in the future with the participation of the private sector, both locally and international.

The commercial arrangements with TSE customers are accomplished directly through long-term TSE Supply Contracts for terms reaching up to 25 years. To date, NWC has been successful in signing TSE Supply Agreements with a daily volume exceeding 175,000m3/day for a minimum period of 20 years. This is a significant corroboration that the demand is there and it is anticipated that this will grow further in the future.

 The estimated total available / planned  supply from the 6 largest cities exceeds 4.8 million m3/day.

On another front, NWC is also creating investment opportunities for the private sector in the field of treated water to develop and construct new treatment plants with the purpose of increasing the overall capacities of treating domestic and industrial waste water. To that effect, NWC has recently signed a long-term Rehabilitate, Operate, & Transfer (ROT) contract with a national company, where the private partner will rehabilitate one of NWC’s treatment plants, operate it and maintain it for 20 years, and then transfer it back to NWC at the end of the contract term.

Additionally, the private partner will also be responsible for marketing and selling the product of the plant to final consumers during the contract term.

 NWC will be releasing an RFP for the Technical, Financial and legal aspects related to this initiative in the near future.