Private Sector Partnership initiative

 initiative aims at maximizing private sector participation via privatizing the targeted new wastewater treatment plants, signing of long-term operation and maintenance contracts plants and increasing water coverage in the distribution sector.

Initiative Goals

  • Lift burden from government through:
  1. Increasing expenditure efficiency: rationalization of capital and operating expenses of the water distribution sector and environmental services.
  2. Financial sustainability: implementation of a framework that enables private sector to provide necessary funding as an alternative for public sector financing to realize revenue that affects service cost and achieve operational sustainability and appropriate expansion of water sector.
  3. Financial impact: reducing government capital expenditure and operating expenses.
  • Upgrade the quality of customer service.
  • Ensure water sustainability via providing drinking water in normal and emergency conditions.
  • Provide high quality and cost-effective water and wastewater services at reasonable prices.
  • Social impact: enhance service quality, increase customer satisfaction, reduce environmental impact resulting from untreated wastewater, preserve and improve utilization of water resources, in addition to protecting local environment to the best interests of the Saudi community now and in future.
  • Environmental impact: preserve and improve utilization of water resources while protecting local environment through safe outputs that support its development.
  • Enhance technical, operational, environmental and health aspects via procuring management contracts for operation and maintenance for six operational (clusters/groups) through regional groups across the Kingdom.
  • Improve the efficiency of legislative and regulatory environment: the public sector focuses on its legislative and regulatory roles.
  • Private sector participation: achieve sustainability in the provision of high-quality services with high operational efficiency to enhance quality of life in Saudi cities and increase coverage of water and wastewater services.
  • Local content: attract and encourage local and foreign capital and promote the use of local materials and products.
  • Improve water demand management across all uses.
  • Ensure the competitiveness of the water distribution sector and its positive input into the national economy via promoting effective governance, private sector participation, nationalization of capacities, innovation and implementation of latest technology internationally approved in the water sector.
  • Jobs created: direct jobs (technical and operational) and indirect jobs (administrative and logistical) in proportion to the size of targeted privatization projects.
  • Increase private sector input to the development process, which creates job opportunities for the Saudi youth nationwide.
  • Provide financial and human resources to finance, build and operate projects through private sector participation.
  • Transfer global expertise and nationalize knowledge.
  • Boost the attractiveness of investment in water and wastewater sectors.

Initiative Objectives

  • Private sector participation via privatization of targeted new wastewater plants.
  • Procurement of management contracts for operation and maintenance for six regional operational (clusters/groups).
  • Signing long-term operation and maintenance contracts for existing wastewater plants via private sector participation.
  • Completing the goals of the initiative in 2023.