RIYADH, 13 April 2008 — The Kingdom will sign a SR240-million partnership agreement with a French company for a water and sewage project in Riyadh, said Minister of Water and Electricity Abdullah Al-Hussayen.

The six-year agreement is to be signed between the National Water Company (NWC) and Veolia Water, a partner of the Paris wastewater treatment authority, SIAAP. “With this project, the newly formed NWC will commence its activities from Riyadh, the largest consumer of water in the Kingdom,” Al-Hussayen said.

He said that the NWC has taken over groundwater resources, sewage network and sewage treatment plants in the region, and that it will move to Jeddah, then to Madinah, Dammam and Makkah in two months. “These five cities account for 65 percent of water consumption in the country,” he added.

The proposed project in Riyadh will improve the efficiency of water supply and develop the existing sewage system in the region.

The new company, which has a seven-member board of directors chaired by the minister of water and electricity, held a board meeting last Wednesday to discuss its program for the next 12 months.

“NWC which was licensed by the Cabinet in January this year will be fully owned by the government and will cover all parts of the Kingdom in three years,” said Al-Hussayen.

The board appointed Deputy Minister of Water and Electricity Loay Ahmed Al-Musallam as NWC’s chief executive officer. It also approved a new logo for the company.

NWC will provide all services related to the underground water sector and drinking water distribution sectors and collection and treatment of sewage on a commercial basis. “The company will receive all its dues, including charges for its services in the specified time, from all subscribers without exception,” the minister said.

Al-Hussayen said the new company has replaced the directorates of water across the Kingdom. He said the ministry has plans to revise the water tariff, adding that an advisory body will look into the matter. He said the ministry would have a special department to carry out public awareness campaigns to promote the wise consumption of water and prevent wastage.

Speaking about water shortage in Jeddah, Makkah and Taif, he said this problem would be solved with the completion of the Shuaiba-III desalination project. “Within a year the plant will be ready and will supply enough water required by the three cities,” he said.

The plant is expected to supply about 194 million gallons of water and 900 megawatts of electricity daily when it becomes operational next year.