Select Language:
A consortium led by a private Chinese water solutions provider specializing in water supply and wastewater treatment has secured a contract for a municipal wastewater project in northern Saudi Arabia.
The agreement covers upgrading equipment and providing long-term operation and maintenance services for nine local wastewater treatment facilities over a 15-year period. It also includes installing new sludge drying technology and ensuring the quality of effluent, sludge, and environmental monitoring aligns with Saudi national standards.
These nine facilities are spread across four provinces in northern Saudi Arabia: Qassim, Hail, Northern Borders, and Al Jourf. Once the upgrades are complete, the combined daily capacity for wastewater treatment at these plants will total approximately 338,000 cubic meters.
The project, initiated by Saudi Arabia’s National Water Company, involves a total investment of roughly 203 million SAR (about $54.1 million). The water authority is expected to provide a fair return on investment based on the project’s fixed asset and operating costs, actual wastewater volumes, water quality data from the plants, and additional compensation for unforeseen circumstances. The company did not disclose its expected revenue from this contract.
As the main lead of the consortium, the Chinese provider will oversee project surveying, design, operations, and part of the upgrade construction. Local partner Armada Holding will manage construction, import customs clearance for equipment, and communication with local businesses. Meanwhile, Prosus Energy, based in the United Arab Emirates, will act as the financial investor.
Details regarding the investment split and profit-sharing arrangements among the consortium members remain undisclosed.
This project is a key component of Saudi Arabia’s National Water Strategy 2030, which aligns with the broader Vision 2030 plan. It aims to address the critical shortage of wastewater treatment capacity, protect ecological balance, and improve public health.
Successfully securing and executing this contract marks a significant step for the Chinese company to enter the Middle Eastern water service market. It also paves the way for potential expansion into South Asia, Southeast Asia, and further into the Middle East.
Shares of the company traded higher by 1.1 percent, reaching 10.75 RMB (approximately $1.53) in Shanghai midday trading.
ChatGPT
Perplexity
Gemini AI
Grok AI
