Ministry signs off privatisation contracts

22 December 2006
The Ministry of Water & Electricity has signed three consultancy contracts for the partial privatisation of the Jeddah water distribution and sewage treatment networks.
The Ministry of Water & Electricity has signed three consultancy contracts for the partial privatisation of the Jeddah water distribution and sewage treatment networks.

Under the terms of the contracts signed on 18 December, the US' CRA International (strategic), Prima Law Consultants (legal) and Ernst & Young (financial) will assist the ministry and the National Water Company with drawing up a framework for the privatisation of the Jeddah sewerage system. The contracts total more than SR 25 million ($6.6 million),

The ministry plans to tender two further contracts. The first will cover the five-year management of the city's water distribution and collection network, the second for the 20-year build-operate-transfer of a new wastewater treatment plant.

At the signing ceremony, Water & Electricity Minister Abdullah al-Hussayen, said

that the prequalification process for both contracts will start next year.

Saudi Arabia is embarking on a wholesale restructuring of its water sector as it seeks to reduce unaccounted for water, improve payment collection, and lower per capita consumption rates (MEED 20:10:06, pages 6-8 Cover Story).

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