Saudi gets world’s largest water desalination plant

Bloomberg / Agencies

Saudi Arabia plans to tender or award six water-related projects in 2019 as it pushes ahead with a privatisation programme.
The cabinet has approved the tendering of seven desalination and wastewater projects. One was awarded this week, three are in various stages of tender process and three more will be offered to investors next year, the government’s National Center for Privatization and PPP said in a statement.
So far, more than 40 percent of the bids have come from international companies relying heavily on financing from international banks, the center said. It didn’t provide details on the monetary value of the water projects, but said the total value of all public-private partnerships to be tendered by 2020 is expected to be 24 billion to 28 billion riyals ($6.4 billion to $7.5 billion).
The first project, world’s largest independent water desalination plant in Rabigh, has been awarded to Acwa Power. The desalination facility will have a capacity of 600,000 cubic meters per day and meet demand for water in Mecca and Jeddah during peak seasons.
Saudi Arabia unveiled a major privatisation programme in 2016 as part of Crown Prince Mohammed bin Salman’s plan to raise government revenue and diversify from oil. Economy Minister Mohammed Al Tuwaijri said last year that government expected to raise some $200 billion in the next few years through privatisation.
In addition to the water projects, the government plans in 2019 to move ahead on renewable energy projects in solar and wind, parking in Riyadh and a second cargo license station at King Khaled International Airport, according to the statement. It also plans to sell Saudia Medical Services facilities and four flour mill companies, and to establish an agriculture company.