Saudi Arabia awards water services deal to Manila Water consortium

Published October 8, 2021, 12:36 PM

by Madelaine B. Miraflor

The National Water Company, Saudi Arabia’s state-run water agency, awarded the Management, Operations and Maintenance Contract (MOMC) to the consortium of Manila Water Company Inc., French water distributor Saur Group, and Saudi’s Miahona Company.

Manila Water

In a statement, Manila Water said its consortium with the aforementioned companies has secured another seven-year water contract to undertake the operation of the water and environmental treatment services in the Eastern Cluster of the Kingdom of Saudi Arabia, the largest oil producer in the Middle East.

The cluster includes the cities of Dammam, Al Hofuf, Al Jubail, Al Khobar, Al Qatif and Hafar Al Batin.

In December 2020, Manila Water won the bid for its first project in Saudi Arabia and signed the MOMC for a seven-year agreement to manage and implement improvement initiatives for the water and wastewater systems of the North West Cluster.

This cluster is one of six regional clusters created under Saudi Arabia’s Vision 2030 and National Water Strategy which restructures the water distribution services and engages private sector participation.

Manila Water President and Chief Executive Officer Jocot de Dios said winning the North West and Eastern clusters puts Manila Water and its partners in a strong competitive position when the same management contracts are converted into long-term concessions.

“We are extremely elated with this new international expansion as Manila Water gears up its vision of becoming a global Filipino water company whose operation and management expertise is now being recognized in the industry worldwide,” de Dios said.

“Manila Water will bring in 24 years of experience and knowhow in the water space to provide innovative solutions to the water and wastewater requirements in a region whose population and demand are almost comparable to our existing concession area in eastern Metro Manila and Rizal Province,” he added.

The awarding of the water contract for the Eastern Cluster is part of the Kingdom of Saudi Arabia’s plans to drive its water infrastructure sector towards privatization.

The consortium, where Manila Water holds 30 percent interest, was chosen because of its extensive experience in water services and environmental treatment management around the world.

“Our operations beyond the East Zone as well as our international operations in the Asia Pacific region also provide us the leverage to better understand and address the needs of foreign markets in providing solutions through an appropriate public private partnership framework,” De Dios further said.