JEDDAH: Custodian of the Two Holy Mosques King Abdullah has approved the executive plan for the privatization of the Saline Water Conversion Corporation (SWCC) that runs more than 30 desalination plants in the Kingdom.
Water and Electricity Minister Abdullah Al-Hussayen said the king had also endorsed the executive program for the privatization of sewage water treatment plants across the country. “The privatization plan will increase participation of national firms in water projects,” he added.
He said the king’s approval for privatization reflected his desire to develop the SWCC’s plans and programs in line with international standards and to promote management and operation of its desalination plants on the Red Sea and the Gulf. Saudi Arabia is the world’s largest producer of desalinated water.
Al-Hussayen said the measure was also aimed at meeting the growing demand for water in the Kingdom as a result of increasing population and growing industrial and business activities all over the country. “The privatization of desalination plants will boost investment in water and electricity projects,” he explained.
Al-Hussayen said the sewage water treatment plants would be gradually brought under the National Water Company in order to improve their facilities and management.
The SWCC is considering three options, including the formation of five companies to privatize the organization. Fehaid Al-Sharief, governor of the SWCC, said the corporation’s board would select the best option from the three and make its proposals to the Supreme Economic Council.
The first option calls for converting the corporation into a joint stock company and offering part of its shares for public subscription. Participation of the private sector in SWCC assets is the second option. Under the third option five independent companies would be formed to operate the main desalination plants, Sharief said.
