WATER PRIVATIZATION
Water firms in the Kingdom have no choice but become some of the world's most competitive and innovative. Privatization in the sector could also bring big gains.
What have been some of your biggest achievements over past years?
Essam Zahra The National Water Works Company is a private company working in water activities, specifically water pumping. Water requires a full solution and there are many processes to move the water from the source to the final users. Saudi Arabia is about 2.2 million sqkm, and there are around 25 cities and not one river. National Water Works Company is an international leader in water equipment for pumping and we bring that technology to Saudi Arabia and apply this technology. Our major achievements involve upgrades to technology; we can now tap water reserves from wells deeper than ever before, often exceeding 2,000m. We completed the range so we are the only company in Saudi Arabia that can provide any type of wells or pumps to serve local projects. Thanks to our reputation we were awarded the Riyadh Water Enhancement Program (RWEP), launched in 2011 by the ex-Governor of Riyadh to avoid water cuts in summer. National Water Works Company handled this project to realize the strategy. In short, the requirement was to drill 43 wells in Riyadh and to install 25 water treatment plants. But even though a project of this size needs two to three years to complete, the authorities asked for it to be done within six months, which required a miracle. This was really a unique project and many pumping providers in the world could not do it; the only company that met the needs and took on the challenge was National Water Works Company. In six months, we supplied 43 units and installed those pumps in the wells and we ran it.
Mahmoud Fallatah Nesma Water & Energy is focusing on water infrastructure. We did a couple of projects in greenfield infrastructure including two big projects for the development of about 7 million sqm of residential and industrial areas in King Abdullah Economic City. This covers the complete utilities infrastructure such as water piping, storm piping, and sewer piping, as well as electrical cables and roads. In addition to that, we constructed 13 desalination plants for the national water company with a total capacity of 65,000 cbm per day. Water meters with house connections and operations and maintenance services are also part of our targeted scope. We operate the smart cities and the small villages that belong to them for Dwadmi and Affif in the Riyadh region. Now, we are building four desalination plants with The Saudi Industrial Property Authority (Modon). These are industrial areas where we are supposed to provide the means of water distribution, ground wells production, desalination, reservoirs, tanks, and tanker filling stations.
What opportunities do you see in the fact that the Minister of Environment, Water and Agriculture says water is one of the most attractive future investments in Saudi Arabia?
EZ Vision 2030 has forced all the active authorities in the Kingdom to plan and design their initiatives to meet the requirement of the reforms. This is not an option; it is a must and a duty—it is why all services and utilities in the Kingdom will be handled by the private sector. So from now until 15 years down the road everything should be settled in that line and water and energy is number one. That is why the Ministry of Environment, Water and Agriculture hosted the Water Investment Forum recently in Riyadh, as this was the picking-ground for all the interested investors in the water industry to extract and explore what opportunities would be suitable for them. More than USD50 billion has been announced for PPPs or BOTs.
How could privatization affect your business?
MF This is good news for us. In my personal opinion the water sector is undergoing a big transformation program and most of the projects could be privatized. The BOT, BOO, IPP, and IWPP will dominate in the sector. There will be water treatment and sewage treatment plants that will be tendered this year. Now, The national water company is managing Jeddah, Riyadh, Mecca, and Taif, and soon another 19 cities in the country will follow them. That is good news because the entire system for the water in these small cities that used to be under the government and Ministry of Water will be nested under the national water company.
WATER PRIVATIZATION
TABLE OF CONTENTS
Column
YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister’s Office & Second Minister of Foreign Affairs and Trade, Brunei
TBY talks to YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister's Office & Second Minister of Foreign Affairs and Trade, Brunei, on the sector.
read articleReview
A Crude Awakening
The Kingdom has made renewables a critical aspect of its ambitious Vision 2030 effort to diversify its economy and wean itself from a strictly carbon-based diet, not to mention empower local businesses and individuals to take up the mantle and lead the energy sector into the next generation.
read articleInterview
Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) , Saudi Aramco,
TBY talks to Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) at Saudi Aramco, on the IKTVA program, supporting local content, and looking back over a successful year.
read articleInterview
Ayman Abdullah Alfallaj, CEO, Thiqah
TBY talks to Ayman Abdullah Alfallaj, CEO of Thiqah, on how the private sector can keep pace with the speed of public reforms, delivering a strong and lasting value proposition, and integrating the fruits of privatization into the public sector.
read articleFocus: Technology Investments
Investment Calling
A technological revolution is underway in the Kingdom. Already one of the most tech-savvy nations in the Middle East, the Saudi market has long sought a thriving domestic technology and innovation scene. And with Vision 2030, it is on course to deliver just that.
read articleReview
A Hejaz Unhindered
An ambitious series of road and rail projects from the Jordanian border down to the Indian Ocean are slated to open in part before the end of 2017. They bring the Kingdom that much nearer to its goal of greater non-carbon-based economic integration with the world.
read articleInterview
Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and Minister, Civil Service
TBY talks to Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and current Minister of Civil Service, on an attractive legislative framework for investment, railway linkages, and port developments.
read articleInterview
Rumaih M. Al-Rumaih, President, Public Transport Authority (PTA
TBY talks to Rumaih M. Al-Rumaih, President of Public Transport Authority (PTA) & Acting President of Saudi Railway Organization, on teaming up with commercially committed partners, making sure the Kingdom's land and sea bridges are of the first order, and providing employment for all the Kingdom's inhabitants.
read articleInterview
Nabeel M. Al-Amudi, President, Saudi Ports Authority, and Minister of Transport
TBY talks to Nabeel M. Al-Amudi, Minister of Transport, and President of Saudi Ports Authority, on optimally restricting concession agreements, resolving bottlenecks in the logistics chain, and privatizing as rapidly as possible.
read articleInterview
Khaled Bin Abdullah Al Hogail, CEO & Managing Director , Saudi Public Transport Company (SAPTCO)
TBY talks to Khaled Bin Abdullah Al Hogail, CEO & Managing Director of the Saudi Public Transport Company (SAPTCO), on the importance of strong and rational regulations, knowledge transfers, and unifying public and private transportation networks.
read articleInterview
Imad El-Zein, CEO, Auto World-Sixt Saudi Arabia
TBY talks to Imad El-Zein, CEO of Auto World-Sixt Saudi Arabia, on growing market share in challenging circumstances, partnering with world-class players to boost its local presence, and combining better services with lower costs.
read articleInterview
Saleh H. Al-Ghamdi, Acting CEO, Saudi Air Navigation Services Company (SANS)
TBY talks to Saleh H. Al-Ghamdi, Acting CEO of Saudi Air Navigation Services Company (SANS), on maximizing safe and effective services, effectively increasing the rate of Saudization, and easing the pathway of women into the workforce.
read articleInterview
Khalil Kutubkhanah, CEO, Jeddah Development and Urban Regeneration Company (JDURC)
TBY talks to Ibrahim Khalil Kutubkhanah, CEO of Jeddah Development and Urban Regeneration Company (JDURC), on Jeddah's unplanned settlements, the company's redevelopment projects, and its partnership model with the private sector.
read articleInterview
Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister, Planning and Health & Director of the Vision Realization Office
TBY talks to Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister for Planning and Health & Director of the Vision Realization Office, on reforms within the Ministry of Health, the corporatization of healthcare provision, and transformations in care delivery.
read articleInterview
Mohanad A. Dahlan, CEO, University of Business and Technology (UBT) Company
TBY talks to Mohanad A. Dahlan, CEO of University of Business and Technology (UBT) Company, on the evolution of the company, education investments, and upcoming sectors that will need support from the sector.
read articleFocus: Universities
Broad and Deep
As part of the continuing decentralization of higher education in Saudi Arabia, individual universities are pursuing their own paths to grow their faculties, engage with various international stakeholders, and ultimately move toward a more privatized future.
read articleInterview
Rafique Izhiman, Area General Manager KSA Jeddah, Yanbu Hotels
TBY talks to Rafique Izhiman, Area General Manager KSA Jeddah/Yanbu Hotels & General Manager, Intercontinental Hotel Group (IHG), Jeddah, on the role the firm plays in the market, expanding its footprint in the country, and expectations for 2017.
read article