Saudi Arabia Completes First Phase of Privatizing Water Distribution

Water distribution is one of the targeted sectors in the privatization project that the Saudi government is working on (Asharq Al-Awsat)
Water distribution is one of the targeted sectors in the privatization project that the Saudi government is working on (Asharq Al-Awsat)
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Saudi Arabia Completes First Phase of Privatizing Water Distribution

Water distribution is one of the targeted sectors in the privatization project that the Saudi government is working on (Asharq Al-Awsat)
Water distribution is one of the targeted sectors in the privatization project that the Saudi government is working on (Asharq Al-Awsat)

Saudi Arabia’s National Water Co. (NWC) has signed two deals worth SR714 million ($190 million) with firms in the private sector to operate water and environmental treatment services in the western and northern regions.

This move means that the Kingdom has completed the first phase of privatizing water distribution in accordance with the ninth program of its national water strategy.

Moreover, NWC announced on Wednesday that it has signed two contracts worth more than SR 1.59 billion ($423 million) with private-sector consortiums under its Long-Term Operation and Maintenance Contracts (LTOM) program to rehabilitate, operate and maintain six wastewater treatment plants in Makkah and Jeddah.

The company announced via its Twitter account that it awarded an LTOM contract worth 392 million riyals to the Saudi consortium of Thabat and Miahona to rehabilitate, operate and maintain two sewage treatment plants in Makkah Al Mukarramah for a period of 10 years.

The second 10-year LTOM contract, worth more than 1.2 billion riyals, was awarded to consortium of France’s Veolia and Saudi companies Awael and Civil Works Company (CWC) for four wastewater treatment plants in Jeddah.

Saudi Minister of Environment, Water and Agriculture Abdulrahman Al-Fadhli sponsored the signing ceremony of the contracts between NWC interim CEO Nemer bin Mohammed Al-Shebel and representatives of the Saudi-French consortium of Al Awael Modern Contracting Co., Suez, the Saudi-Spanish consortium of International Water Distribution Company (Tawzea), Alhaj Abdullah Ali Reza Company (HACO), and Spain’s Aqualia.

The Saudi-French consortium of Al Awael Modern Contracting Co. and Suez was awarded the SR 365 million ($97 million) management, operation, and maintenance (MOM) contract for the western cluster while second contract worth SR 349 million ($93 million) for the northern cluster was awarded to the Saudi-Spanish consortium of International Water Distribution Company (Tawzea), Alhaj Abdullah Ali Reza Company (HACO), and Spain’s Aqualia for the northern cluster, NWC announced on its twitter account.

The privatization contracts will contribute to boosting project implementation and help attract investments, said Al-Shebel.



SAMA Governor: Saudi Arabia Plays Key Role in Supporting Global Economic Recovery

G20 leaders meet in Brazil. (Reuters)
G20 leaders meet in Brazil. (Reuters)
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SAMA Governor: Saudi Arabia Plays Key Role in Supporting Global Economic Recovery

G20 leaders meet in Brazil. (Reuters)
G20 leaders meet in Brazil. (Reuters)

Saudi Central Bank (SAMA) Governor Ayman Al-Sayari emphasized the Kingdom’s pivotal role in sustaining global economic recovery and maintaining financial stability. He also highlighted Saudi Arabia’s active participation in addressing key issues during Brazil’s presidency of the G20 Summit.

In a statement to the Saudi Press Agency (SPA), Al-Sayari affirmed the Kingdom’s commitment to achieving the summit’s goals and strengthening multilateral cooperation to tackle challenges such as slow growth and rising global debt levels.

Al-Sayari noted that Saudi Arabia’s participation in the G20 reflects its efforts to promote its own interests while contributing to global economic stability, particularly for regional economies. As the only Arab member of the group, Saudi Arabia seeks to leverage its position to enhance global financial resilience.

He recalled the Kingdom’s leadership of the G20 in 2020, during which it prioritized measures to accelerate global economic recovery, foster financial inclusion, ensure financial stability, and assist low-income countries in mitigating the impacts of the COVID-19 pandemic.

Key issues currently under discussion include the slow global economic growth, high inflation rates, rising global debt, and disparities in economic policies among nations.

Al-Sayari highlighted the importance of the G20’s Common Framework for Debt Treatments, a key initiative launched during Saudi Arabia’s presidency of the group. The framework aims to alleviate the debt burden of the world’s most vulnerable countries, a concern that has grown more pressing as sovereign debt levels reach unprecedented heights.

The governor underscored the alignment between the objectives of Saudi Arabia’s Vision 2030 and the G20’s goals, particularly in fostering financial stability and sustainable development. This includes initiatives to develop financial markets, mitigate risks, adopt global best practices, and ensure the financial sector’s stability while expanding its services and products to support the transition to a sustainable economy.

Moreover, Al-Sayari pointed out ongoing efforts to enhance the fintech sector through updated regulatory frameworks and improved guidelines. The Kingdom also aims to increase financial inclusion and awareness by providing individuals and businesses with access to licensed financial services, ensuring consumer protection, and promoting fairness and transparency in financial transactions.