On Sunday, November 21, 2021, the National Water Company "NWC" announced the signing of two contracts with the private sector to manage the operation of water and environmental treatment services in the Central and Eastern clusters. These two clusters were integrated under the company's umbrella in early March. The total cost of the contracts between NWC and the two alliances is 579 million Saudi riyals.
Eng. Abdul Rahman bin Abdul Mohsen Al Fadhli, Minister of Environment, Water and Agriculture "MEWA", Chairman of the Board of NWC, sponsored the signing ceremony of the two contracts. The first contract was signed between Eng. Mohammed bin Ahmed Al-Mowkely, NWC CEO, and the representative of Saudi Al-Khorayef Alliance and French Veolia to provide operation and maintenance for Riyadh region amounting to 358 million Saudi riyals. NWC CEO also signed a contract with the representative of the Saudi Miahona Alliance, the French group "Saur" and the Philippine company "Manila Water" for the operation and maintenance of the Eastern Cluster for221 million Saudi riyals.
Eng. Al-Mowkely said after signing the two contracts, "One of the most important foundations of Saudi Arabia's Vision 2030 is the well-being of citizens and the quality of services provided, which gave rise to the National Water Strategy 2030. Based on this, the NWC strategy has been adopted and detailed plans have been developed to improve water services in the Kingdom with the participation of the private sector".
Al-Mowkely said, "We have successfully completed the 100% structuring of water services in the Kingdom and consolidated 13 administrative areas into 6 clusters under the umbrella of the company. The latest cluster was established in early November 2021," as the northern cluster, which includes four administrative areas: Qassim, Hail, Al Jouf and the Northern Border. Thus, all Saudi regions will be fully managed by the National Water Company".
NWC CEO said the company is now working on awarding management contracts for the remaining clusters, namely Western, Southern and Northern ones, which will be completed by the end of December 2021, and that the alliances that will win these contracts will be announced in due course.
Al-Mowkely explained that the contracts are contingent on the alliance achieving 14 key performance indicators. The most important of these are improving and enhancing the customer experience, increasing operational efficiency by rationing costs, reducing water losses, and improving network management. He pointed out that the contract period is 7 years. If the targets are met after the third year and the readiness of the sector is increased, NWC can move directly to the concession contract phase where the private sector takes full responsibility for water services and then we will not wait until the end of the seven years.