The National Water Company "NWC" announced today, that the Consortium of the Saudi AlKhorayef Company and Veolia of France won the operation and maintenance management contract to undertake the management of the operation and maintenance of water services and environmental treatment in Riyadh Region (Riyadh city and its entire governorates), at a value of more than 358 million Saudi Riyals for seven years. The management contract for Riyadh Region, which was fully integrated under the umbrella of the company in March 202 was first approved by the NWC Board of Directors chaired by Engr. Abdul Rahman bin Abdul Mohsen Al Fadhli, the Minister of Environment, Water and Agriculture.
Engr. Mohammed bin Ahmed Al-Mowkely, CEO of The National Water Company, said that one of the most important pillars of the Saudi Arabian Vision 2030 is the wellbeing of citizens, and the quality of the services provided to them, from which the National Water Strategy 2030 emerged, on which NWC adopted its strategy and developed detailed plans to upgrade water services in the Kingdom, with the participation of the private sector.
Engr. Al-Mowkely continued: "We are moving forward, and with success in the process of structuring the water services and integrating them under the company's umbrella. We have completed, with God's Blessing, 92% of the restructuring project by integrating 13 administrative areas into 6 clusters under the umbrella of the company and by the beginning of November 2021, we will reach 100% by integrating the last cluster, namely the Northern Cluster, which includes 4 administrative regions (Qassim, Hail, Al-Jouf and Northern Border), so that all regions of the Kingdom will be fully managed by the National Water Company.
He added "We intend to complete preparation of the distribution sector for privatization by improving the performance of the sector's services through management contracts, which will be completed by the end of this year 2021. Management contracts are one of the main pillars for improving the sector and equipping it for full privatization, as these contracts depend on achieving 14 key performance indicators "KPIs" that the Consortium must achieve, the most important of which are: improving and developing the customer's experience, raising operational efficiency by rationing costs, reducing water loss, improving network management, and improving network management" The Consortium has to do its utmost to obtain incentives if performance rises when achieving higher indicators than the targets set forth in the contract. Al-Mowkely indicated that the duration of the contract is 7 years, and if the targets are achieved after the third year of the contract, and the readiness of the sector increased, this will enable the National Water Company to move directly to the stage of concession contracts in which the private sector will take full responsibility for water services and will not wait until the end of the seventh years.
The winning Consortium has considerable experience in water services management and environmental treatment. Alkhorayef for Water and Energy Technology is a leader in the water and sanitation sector with more than 30 years of experience in developing, operating, and maintaining infrastructure in the water services and environmental treatment sector in Saudi Arabia. Veolia, a major international water service provider serving 95 million customers worldwide. It has been in the Kingdom through supplying water supply and treating wastewater. It has the largest concession contracts in America, Europe, Asia, and Latin America, and has contracts in Saudi Arabia in the Eastern and Western regions, through long-term strategic contracts in partnership with Aramco, Jubail and Yanbu Marafeq, and Sadara.