Management Contracts For Water Distribution
The National Water Company (NWC) contracts out water distribution services for individual cities to the private sector under management contracts. One key objective usually is to improve service continuity. The contracts are preceded by one-year quick-win technical assistance contracts. Once signed, they include a further 1-2 year validation period during which the baseline and target data for key performance indicators are being reviewed. An important objective is to improve the continuity of supply. Tariff levels will not be affected. The scope of the contracts includes training and qualifying Saudi nationals, as well as research and development with the aim to transfer technology.
Three contracts have been signed so far:
- In April 2008 for the capital for Riyadh with the French firm Veolia, covering six years and valued at $60m,
- A seven-year contract with the French firm SUEZ for Jeddah,
- In June 2010 for Mecca and Taif with the French firm SAUR, covering five years and valued at $46m.
As required by Saudi law SAUR's team working in Mecca consists entirely of Muslims. Further management contracts are expected to be tendered for Medina and Greater Dammam.
Read more about this topic: Water Supply And Sanitation In Saudi Arabia, Responsibility For Water Supply and Sanitation, Service Provision
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