RIYADH, 19 December 2006 — Minister of Water and Electricity Abdullah Al-Hussayen signed a series of agreements yesterday with consultancy companies to assist the ministry in processing the contracts to manage, operate and maintain water and wastewater services in Jeddah.
“The ministry is planning to commence two projects in Jeddah during the first quarter of 2008,” said the minister. “The signatories will also assist the ministry in the prequalification process of the international companies that will bid for the PPP (Public-Private Participation) projects,” Al-Hussayen told newsmen following the signing ceremony.
The minister signed the first contract with Paul Rathbon from Charles River Associates for the amount of SR15,903,000 to lead the process of issuing privatization contracts for the two Jeddah projects.
The second was signed with Prince Abdulrahman Saud A- Kabeer on behalf of Prima Law Consultants for the value of SR4,687,500 to provide legal consultancy services.
Another contract was signed with Phil Gandier from Ernst and Young for SR5,100,000 to provide consultancy services in human resources development.
The ministry started the first phase of the PPP project in Riyadh with the support of an international consultancy consortium that is currently working on preparing contract documentation for private sector participation in the capital’s water services.
Al-Hussayen said the ministry has selected reputed consultants for the preparation of PPP contracts documentation. The minister pointed out that two PPP contracts will be commissioned separately for water services and sewage treatment.
The contract for water services management will be given for a period of five to six years, while the other contract for operation and maintenance of all wastewater plants will be offered on a 20-to-25-year concession.
