Saudi Arabia’s water and electricity firms sign agreement

19 October 2010

Treated water supply agreement to run for 21 years

Saudi Arabia’s National Water Company (NWC) has signed an agreement for the sale of treated water to Saudi Electricity Company’s (SEC) power plant located outside Riyadh city, near Dhruma town.

The 21-year agreement covers the supply of 10,000 cubic meters a day of treated water, which will commence by the end of 2011. NWC will also provide the operation & maintenance (O&M) to serve the assets belonging to SEC. The agreement was signed on 18 October.

A memorandum of understanding to consider the sale of water treated by NWC to SEC’s other power plants in Riyadh was also signed by the two parties. This agreement would cover four power plants owned by SEC.

At the signing, NWC chief executive officer, Loay Al-Musallam, says water provision is a prerequisite in the shift from the simple cycle electricity production to the combined cycle. He also pointed to the potential for similar agreements to serve the district cooling sector.

Al-Mussallam saysa the agreement is in line with the company’s strategic plan to take advantage of treated water.

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