The SR173.75-million contract, which was signed in July, is part of the NWC's ongoing efforts to privatize this sector in targeted cities.

“With the takeover in the cities of Makkah and Taif beginning in January 2011, it is anticipated that massive improvements with the same velocity as the changes to the water and wastewater networks in Jeddah and Riyadh will materialize in these two cities,” said Mussallem. “In the coming year the National Water Company will concentrate its efforts into improving sustainability of water resources to meet increasing demands as well as continuing to push into building an efficient organization, forging ahead to improve water supply and distribution Kingdom-wide."

The Saur-Zamil alliance also includes customer services, revenue collection, reduction of water leakages and employee training. According to NWC estimates, an estimated 785 employees will be transferred to the private sector.

Following the transfer of water and wastewater functions in both cities, NWC will have covered more than 46 percent of the total supplies of water in the Kingdom as well as 40 percent of the Kingdom’s population in three years.

In 2009, Saur Group in France reported net sales of 1.5 billion euros. ZOMCO is owned and operated by Zamil Group Holding Company, a publicly traded company listed on the Saudi bourse.