In pursuit of achieving 2030 objectives to increase the quality of services, and take advantage of private sector skills, the water sector in the kingdom is going through a massive privatization journey cross all its value chain to activate the private sector participation. The kingdom of Saudi Arabia is committed to privatize & commercialize the complete value chain of water sector covering the production, transmission, storage and distribution
In light of privatization the distribution sector, Ministry of Environment, Water & Agriculture (MEWA) has developed a Saudi National Water Strategy (NWS2030) that addresses water distribution main challenges through policy integrated program & institutional reform initiatives. As a result, national water company has been authorized to execute the policy integrated program in order to accelerate the private sector participation.
The core initiatives made by the program are:
- Restructuring into six regional distribution entities (Clusters)
- Implementation of private sector participation in two phases, to allow for the time needed for the necessary interventions by the Government and completion of initiatives related to institutional and legal reform, and financial sustainability:
Phase 1: Implementation of Management, Operations & Maintenance Contracts (MOM Contracts) in each Cluster of 5 to 7 years duration (the Program)
Phase 2: Implementation of Concession Contracts or similar long-term models in each Cluster.
Location: Eastern Cluster (Eastern Region); Makkah Cluster (Makkah Region); North Cluster (Qassim, Hail, Al-Jouf and Northern Border Regions); North West Cluster (Madinah and Tabuk Regions); Riyadh Cluster (Riyadh Region); and South Cluster (Assir, Baha, Najran and Jazan Regions)
- Investment size: To be determined by the investor
- Timeline: Open to starting the project as soon as possible
Model: Opportunity to consider different operating models
- Pure private sector model
- Joint venture with the government