Saudi Arabia considers municipal waste concessions

06 October 2016

Feasibility study to be undertaken

Saudi Arabia’s Ministry of Municipal & Rural Affairs is planning to carry out feasibility studies on municipal waste concessions for several urban areas.

It may appoint an advisor directly or issue a tender to the market.

Most waste goes to landfill with low levels of recycling.

Dubai-based Averda is currently providing recycling facilities in five cities; Riyadh, Jeddah, Dammam, Alihsaa and Tabuk.

This is seen as part of a broader move towards public private partnerships signalled in the 2016-2020 National Transformation Plan.

The National Water Company (NWC) awarded three urban water and wastewater networks operations & maintenance contracts in between 2008 and 2010.

Its work then stalled due to unclear division of responsibilities between the NWC and municipalities.

Urban water management contracts in Saudi Arabia

City

Concessionary

Term

Cost ($m)

Riyadh

Veolia (France)

2008-2014

64

Jeddah

Suez Environment (France)

2008-2015

61

Mecca-Taif

Saur Group (France), Al Zamil Group (local)

2010-2015

46

Waste concessions have begun to take off in the GCC in 2016. In Oman, Veolia and local Al-Ramooz National were awarded a municipal waste management contract for the Al-Dhahirah and Al-Buraimi governorates. In the UAE, Averda won a five-year municipal waste concession in Al-Ain.

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