Overview:

Privatization Division plays a key role to manage the privatization process in the targeted cities as well as the consultancy projects with the development of master plans for the expansion of privatization itself. Moreover, the Division functions as a determiner for the priorities of the targeted cities, sets the appropriate privatization model for each city and supervises the implementation of W&WW Management Contracts administratively. The role of Privatization Division is represented by so many achievements in both cities, Makkah and Taif in particular, where its efforts were integrated to expand the services of the Corporate to such cities. This expansion is a crucial transformation to NWC and is reflected by setting the corner stone for commissioning Makkah/Taif Business Unit (MTBU).

Makkah & Taif Privatization Phases:

Quick Wins Contract

The main objectives of this contract are to define and implement the most important quick wins projects required for the improvement of the performance of all relevant Departments such as O&M, Projects and Customers Services prior to the implementation of Management Contracts. The Division functions to study the technical aspects, conduct field visits and ensure that all required improvements meet the objectives set herewith and contribute in the implementation of management contracts activities. It should be noted that the total value  of the contract is more than thirteen million Saudi riyals (MSR13) and was continuous for approximately a year and a half for both cities; the contract has been expired last August.

Management Contract Signing

1.     These honorable moments are the fruit of hard work which had been accomplished by the Division staff and includes the prequalification of competing bidders to provide their services to Makkah and Taif cities where twenty-three private national and international  companies were prequalified, of which eleven companies were prequalified technically and financially. These companies include the French (VEOLIA Water), the Spanish (AQUALIA), the consortium of the French (SURE) with Al-Zamil co., the consortium of the Spanish (AGBAR) co. with the two, (Wesco Bosniac) and (Zuhair Shaker & Partners), the  consortium of the British United Utilities co. with the Saudi (SABAC) co., the consortium of the Malaysian Bnchak Nyagah with the two, British (Severn Trent) & the Saudi MIYAHUNA co., the consortium of the Spanish (Acciona) with the two, Malaysian (Y-T-L) & the British WiSix co., the consortium of the Malaysian (Ranhl) with the two, Indian (JESCO co.) & the Saudi Business Group Company, the consortium of the German (GelsenWasser) with the Saudi Arabian Services Company Ltd. and the consortium of the Growing Emirate (Metu Pilsen Waser) with the Saudi Massader-Electric com.

Following the submission of the Booklet of Conditions & Specifications, bids were received by competing companies including two leading competitors; the first was the consortium of the French (SURE) with Al-Zamil co. and the other is the consortium of the Malaysian (Ranhl) with the two companies, the Indian (JESCO) & the Saudi Business Group Company. Afterward, the PPP contract for the Management and Operation of Water & Wastewater sector in both Makkah and Taif cities was signed between National Water Company (NWC) and the consortium of the French (SURE) with Al-Zamil Ltd. on Saturday 18 Ramadan 1431H, corresponding to August 28, 2010, for a total value of (SR 173.748. 580) for a period of (5) years at NWC headquarter in Riyadh city with the presence of HE Eng. Abdullah Abdul-Rahman Al-Hussien, Minister of Water & Electricity, the Chairman of NWC Board, Mr. Loay Al-Musallam, the CEO of NWC – on behalf of NWC, and Mr. Joel Siashi, the Chairman of the French SURE international Board and Dr. Abdul-Rahman Abdullah Al-Zamil, the Chairman of Al-Zamil Holding Group (on behalf of the consortium) as well as a number of members of the board of both parties and Executive staff.

Transitional Period:

It is the kick-off stage for the processing and preparation for the actual commissioning of the contract. It had lasted for nearly four months, as from September until the end of December, and encompasses many activities that are pre-determiners for the arrangement all conditions relating to the actual commissioning of the contract, that is the beginning of 2011. Merely saying, all teams had exerted every efforts optimally, has been able to achieve the successfulness during this period and fulfilled all main requirements especially after all departments have provided its full support and participation.

Contract Effective Enforcement:

The contract came into effect by the beginning of 2011 where such period was considered  as an extension of the transitional period during which the efforts of privatization teams have integrated and indulged with the operator's (SURE) aiming at putting the contract terms and conditions and outputs into effect. Moreover, the lists of transferred contracts, the financial appropriations and the secondment of employees were processed; well-studied international standards for each division/department were implemented individually. These processes came as a result of efforts exerted during the last periods, and it reflects the sincerity and infinite dedication to the work in order to apply the plans set forth by the Corporate which runs privatization plans, and Privatization Support Division which works toward achieving the required KPI's.

In a continuation to implement privatization plans aimed at developing and improving the performance of W&WW sectors in Saudi Arabia, NWC is currently taking further processes to set up fundamental bricks for the preparation of privatization program for Madina through the formation of teams and put privatization processes into effect
so that desired objectives are met in the same manner that the former Riyadh, Jeddah and Makkah/Taif privatization was treated.