Nesma Water & Energy wins sewage treatment plant contract

Nesma Water & Energy wins sewage treatment plant contract

14 Sep 2020

Saudi Arabia’s Ministry of Environment, Water & Agriculture has awarded a contract to Nesma Water & Energy for operation and maintenance (O&M) services on a 125,000 cubic metres a day (cm/d) sewage treatment plant (STP) in the Tabuk city area.

Saudi Arabia is currently undertaking a major programme to develop new sewage treatment capacity and improve the country’s sewage networks.

The vast majority of new STPs planned in the kingdom will be developed under private-parntership project (PPP) contracts.

Energy & Utilities reported in June that Saudi Water Partnership Company (SWPC) had issued tender documents for the planned Buraydah 2 and Tabuk 2 independent sewage treatment plants (ISTPs).

Energy & Utilities reported in May that SWPC had prequalified five groups to participate in the tender for the two ISTPs, which will have a combined total capacity of 240,000 cubic metres a day (cm/d).

The client has prequalified the following five groups to participate in the tender:

  • Acciona Agua (Spain)/ International Water Distribution Company (Tawzea)
  • FCC Aqualia (Spain)/ Alkhorayef Water & Power Technologies (local)/ Alfanar Company (local)
  • GS Inima Environment (South Korea)/ Al-Jomaih Energy & Water Company (local)
  • Marubeni Corporation (Japan)
  • Metito

The Buraydah ISTP is planned to have a sewage treatment capacity of 150,000 cm/d, with the Tabuk 2 ISTP scheduled to have a capacity of 90,000 cm/d. The plants are due to begin commercial operations in the fourth quarter of 2023.

SWPC also recently issued tender documents to prequalified developers for the planned Medina 3 ISTP.

The winning developer for all three ISTP projects will sign a 25-year sewage treatment agreement (STA) with SWPC. The sewage capacity will be supplied by SWPC.

The STA will be supported by a credit support agreement from the Saudi government.

SWPC has appointed Japan’s Sumitomo Mitsui Banking Corporation as lead and financial adviser, UK-based Atkins as technical adviser and UK legal firm DLA Piper as legal consultant.

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