Chinese water utility outfit leads consortium to revamp sewage plants: A consortium led by China’s Jiangsu United Water Technology secured a long-term operations and maintenance (LTOM) contract to rehabilitate and operate nine sewage treatment plants in northern Saudi Arabia, Meed reported yesterday, citing unnamed sources. The SAR 203 mn (USD 54.1 mn) contract was awarded by the National Water Company (NWC) and covers the Northern Cluster Sewage Treatment Plants Package 10 (LTOM10). The consortium also includes the UAE-based Prosus Energy and Saudi Arabia’s Armada Holding.

About the plants: The contract covers sewage treatment facilities across Hail, Qassim, Al Jouf, and the Northern Borders provinces, with a combined treatment capacity of 337.8k cbm/d. It’s structured as a 15-year agreement, starting with a three-year rehabilitation and upgrade phase, followed by long-term operations and maintenance.

Who’s doing what: Under the agreement, the consortium will rehabilitate plants, improve efficiency, install sludge-drying facilities, and deliver full-cycle operations and maintenance services. United Water will lead on design, financing, operations, and select construction works. Armada Holding will oversee local business coordination, customs clearance, and construction, while Prosus Energy will act as financial investor.

Why it matters

The contract is part of NWC’s wider LTOM program, which offloads operations to the private sector. NWC awarded around USD 2.7 bn (c. SAR 10.1 bn) in contracts in its first phase, which includes nine packages with a total treatment capacity of 4.6 mn cbm/d over 15 years. This contract marks the first entry of a Chinese operator into the LTOM program.

Riyadh is widening the pool of who gets to run its grid. The LTOM program has so far been the playground of local giant Alkhorayef Water & Power, which captured some 50% of Phase 1 capacity, worth USD 1.47 bn (SAR 5.5 bn). The rest was awarded to three consortiums:

  • France’s Suez Group and homegrown Al Awael Modern Contracting Group (SAR 1.8 bn);
  • France’s Veolia and Al Awael (SAR 1.3 bn);
  • A JV of Al Awael and Civil Works Company (USD 211 mn or c. SAR 791.3 mn).

LTOM phase two incoming: The North Western A Cluster (LTOM11) is expected to be awarded within weeks, and bids have already been submitted for the North Western B Cluster (LTOM12) by Alkhorayef, Civil Works Company, and Miahona.

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