Saudi's SWCC, WTTCO ink pact to outsource services, eyeing $16bln investment

The agreement calls for a smooth and gradual transition of the management, operation, and maintenance of water transmission systems to the WTTCO, enabling it to sign contracts with partners and work on a commercial basis, it was announced in a press statement

  
General view of the world's largest desalination plant using modern hybrid desalination technology at the Saline Water Conversion Corporation's Ras al-Khair Power and Desalination Plant in Ras al-Khair, Saudi Arabia, October 8, 2020.

General view of the world's largest desalination plant using modern hybrid desalination technology at the Saline Water Conversion Corporation's Ras al-Khair Power and Desalination Plant in Ras al-Khair, Saudi Arabia, October 8, 2020.

REUTERS/Hamad I Mohammed

RIYADH The Saline Water Conversion Corporation (SWCC) and the Water Transmission and Technologies Co. (WTTCO) signed on Tuesday a cooperation agreement to outsource management services.

Minister of Environment, Water and Agriculture Abdurahman Al-Fadhli, who is also chairman of the board of directors of the SWCC, and governor of the SWCC Abdullah Al-Abdulkarim attended the signing ceremony.

The agreement calls for a smooth and gradual transition of the management, operation, and maintenance of water transmission systems to the WTTCO, enabling it to sign contracts with partners and work on a commercial basis, it was announced in a press statement.

The agreement will boost the efficiency and organization of the water sector, as well as develop the Kingdom’s economy by adding more than SR60 billion worth of investment opportunities in water transport and storage systems by involving the private sector in funding future projects.

Under the agreement, the SWCC will enable the WTTCO to use its transport systems to perform assigned services and allow the employees to participate in related decision making. In addition, the WTTCO will supervise the operation, maintenance, and assignment of operations, and follow up on the progress of project implementation.

In 2021, the WTTCO will complete its commercial activities, through activating systems and operations, governance of procedures, preparing support services, as well as signing commercial deals, and taking delivery of operating assets.

Meanwhile, the company’s plan for 2022 includes improving and upgrading operational efficiency and slashing capital costs. It is noteworthy that the Cabinet approved in September 2019 to establish the WTTCO as a state-owned company, which will take over assets from the SWCC and will lead the development of the Kingdom’s huge pipelines.

 

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