JEDDAH, 4 September 2004 — Saudi Arabia intends to privatize all its desalination plants established at a total cost of SR54 billion, according to Fehaid Al-Sharief, governor of the Saline Water Conversion Corporation (SWCC).
“All the desalination plants are scheduled for privatization and will be presented to the private sector once the studies are completed,” he said. The governor said the privatization would cover not only the existing plants but also future projects. “We are working seriously to implement the decision taken by higher authorities on the privatization of SWCC,” the governor said, adding that the corporation has already set up a strategic planning team to set out the privatization program.
“We have given the team three months to finish the job. These studies will help us collect the necessary information and ideas to have a clear vision on the privatization process,” he said. The governor expected that the studies would be ready by the second week of November.
Sharief said desalination would remain a strategic option to meet the country’s potable water requirement. “We have so far spent nearly SR54 billion on desalination projects, which cater 60 percent of water needs in the main cities,” Al-Watan quoted him as saying.
Water and Electricity Minister Abdullah Al-Hosayn recently announced that his ministry had awarded four desalination projects to the private sector as part of the organization’s privatization plan. They are: Shuaiba phase three, Shuqaiq plant, Ras Al-Zour plant, and the Jubail plant.
He also disclosed plans to establish six desalination plants in Farsan, Qunfudha, Al Laith, Rabiq, Al Wajea and Al Umlaj. Four of them, for the production of both drinking water and electricity, will cost SR20 billion, he pointed out. SWCC needs SR53 billion to implement new water projects.
Desalination is one of the 21 sectors targeted for privatization. Other sectors include telecommunication, civil aviation, highway management, railways, sports clubs, municipal services, health services and government hotels. The privatization list, which was released by the Cabinet in 2002, also includes operation and management of social service centers, Saudi employment services, agricultural services, establishment of health facilities and transportation of patients.
Currently, SWCC runs 30 desalination plants on the Red Sea and Arabian Gulf with a capacity to produce more than 2.9 million cubic meters of water and generate more than 3,400 megawatt of electricity daily.
