Saudi Environment Minister: 3 project agreements worth 2.3 billion riyals as part of the privatization program

Saudi Minister of Environment, Water and Agriculture, Abdul Rahman bin Abdul Mohsen Al-Fadhli, has signed three agreements to implement wastewater treatment plant projects in Medina, Buraidah and Tabuk, in an effort to provide best services in all regions of the Kingdom.

The minister said in a tweet on his Twitter account today, Sunday: “As part of the initiatives of the Privatization Program, one of the Vision 2030 programs, and in partnership with the private sector, three agreements were signed today to carry out projects for wastewater treatment plants in Medina, Qassim and Tabuk, with capacities up to 440,000 cubic meters per day for an estimated cost of 2,366 billion riyals.

The minister referred to the signing of the agreements for the Buraidah (second phase) and Tabuk (second phase) purification plants projects, where the two projects will be implemented in the Qassim and Tabuk regions, with a capacity to treat 150,000 cubic meters per day for the Buraidah-2 project and 90,000 cubic meters per day for the Tabuk-2 project, with the highest bidder.

Al-Fadhli explained that the signing of these agreements takes place in implementation of the decisions of the Council of Ministers, and to achieve the objectives and plans of the Ministry to present water production and wastewater treatment projects to investors in the various regions of the Kingdom, and comes as an extension of the signature of previous projects with the participation of the private sector in the development of this vital sector and increasing its contribution to development.According to the Saudi news agency, “SPA”.

The minister added that these projects, on which the environment, water and agriculture system is working with the participation of the private sector, reach the goals of the Kingdom’s Vision 2030, and also aim to improve the quality of services and increase the spending efficiency, benefiting from the private sector’s expertise in construction, operation and management.

For his part, the CEO of the Saudi Water Partnerships Company, Khalid bin Zuwaid Al-Quraishi, stated that the two projects, which were offered through a single offer process to investors as part of the Build, Own, Operate and Asset Transfer (BOOT) system, 66 interested companies were presented, including 26 Saudi companies, and 9 candidates were qualified.

Al-Quraishi added that the consortium was selected as the preferred bidder after a competition between 3 consortia, including 6 local companies and 3 international companies, noting that the two projects use “SBR” technology and serve beneficiaries in the Qassim and Tabuk. Solar units will also be installed to reduce electricity consumption from the grid.

Al-Quraishi indicated that the operation of the two projects will begin in the second quarter of 2024 and that the duration of the agreement is 25 years and will help to achieve high levels of wastewater treatment, reducing electricity consumption levels and costs. operational, as well as supporting the local content increasing the percentage of localization in businesses and resources.

The agreements are part of public partnershipsprivate that the Ministry of the Environment, Water and Agriculture intends to offer to investors. in in line with the Kingdom’s Vision 2030 goals.

This initiative is an extension of the privatization and partnership processes between the public and private sectors in the environment, water and agriculture sectors, whose agreements are signed, after the signing of several projects for autonomous water production and waste water treatment.

In a related context, the Minister of the Environment has signed the agreements of the Medina plant, the third phase of the wastewater treatment, which will be built in Medina, with a treatment capacity of 200,000 cubic meters per day, expandable to 375,000 meters cubes per day, with the highest bidder.

This project was presented to investors under the Build, Own, Operate and Then Assets Transfer (BOOT) system: 62 interested companies presented, including 23 Saudi companies, and 10 candidates were qualified and the consortium was selected as bidder preferred after a competition between 4 alliances, including 8 local companies and 4 international companies.

The project will use SBR technology and serve beneficiaries in the Al-Madinah Al-Munawwarah region and will include solar power units to reduce electricity consumption from the grid.

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