SWPC pioneers PPP frameworks, attracting $12bn in private sector investments for water projects

As a key player in the water sector, what are the primary business objectives that the Saudi Water Partnership Company aims to achieve? How do these objectives align with the broader goals of national water security and sustainability?

The Saudi Water Partnership Company (SWPC) aims to expand the infrastructure for water production and treatment to meet the increasing demand in Saudi Arabia. By fostering Public-Private Partnerships (PPP), SWPC leverages both public and private sector expertise and investment to drive efficiency and advancement in the water sector. The company is dedicated to implementing sustainable practices, including the integration of renewable energy in desalination and wastewater treatment processes, to strengthen environmental stewardship.

The company is committed to implementing sustainable practices, such as integrating renewable energy in desalination and wastewater treatment

Enhancing operational efficiency through the adoption of advanced technologies and industry best practices is also a central focus, reflecting SWPC's commitment to excellence in the water sector. SWPC focuses on enhancing water management solutions through strategic collaboration with government entities and private sector partners. The company prioritizes the implementation of advanced technologies and best practices to ensure efficiency and reliability across the water sector. Additionally, SWPC provides consulting services to share its expertise in privatization, helping other entities benefit from its knowledge and experience in the PPP framework. Expanding locally, regionally and internationally, SWPC shares expertise and collaborates on global water projects. Additionally, SWPC emphasizes capacity building by investing in the development of local talent through comprehensive training programs focused on privatization. The company also prioritizes developing local contractors, ensuring they are well-equipped to participate effectively in water sector projects. These objectives align with national water strategy goals, supporting a reliable water supply and enhancing operational and financial sustainability, in line with Saudi Arabia’s Vision 2030.

Saudi Arabia is the world's largest producer of desalinated water. What innovative approaches has the Saudi Water Partnership Company implemented to maintain its leadership position in this crucial sector?

Saudi Arabia, as the world's largest producer of desalinated water, continues to maintain its leadership position in the sector through the innovative approaches of the Saudi Water Partnership Company (SWPC). SWPC has implemented a range of groundbreaking initiatives. Notably, the company has mandated the use of advanced desalination technologies within a 25-year term agreement under the Build-Own-Operate (BOO) model, achieving the lowest levelized tariff globally for desalinated water at just $0.41 per cubic meter. This has been accomplished through understanding the market and its leading technologies as well as knowing the capabilities of the developers and EPC contractors.

Secondly, SWPC has pioneered the use of Public-Private Partnership (PPP) frameworks, attracting over $12 billion in private sector investments for water and wastewater projects. Additionally, the company has successfully tendered 20 desalination, waste treatment, transmission lines, and strategic reservoir projects, which collectively add over 6 million cubic metres per day through the private sector to the national water supply and offtake from the public sector around 7 million cubic metres per day, the total offtake capacity reaching 13.6 million cubic metres per day. Finally, SWPC’s commitment to sustainability is evident through its efforts to reduce the carbon footprint of private sector operations, incorporating renewable energy sources into these projects, and encouraging energy-efficient technologies. These sustainable approaches ensure that Saudi Arabia remains at the forefront of the global water industry.

There has been a growing emphasis on integrating renewable energy sources into conventional desalination processes for sustainability and cost-effectiveness. How is the Saudi Water Partnership Company incorporating these technologies into its desalination plants and future projects?

The Saudi Water Partnership Company (SWPC) is at the forefront of integrating renewable energy sources into its desalination processes to enhance sustainability and cost-effectiveness. SWPC has already implemented several initiatives and projects that leverage clean energy to power desalination and sewage treatment plants. For instance, PPP projects have incorporated solar photovoltaic (PV) systems in Jubail 3A, Jubail 3B and Yanbu 4 among other desalination projects under construction, significantly reducing reliance on conventional energy sources. Additionally, the Taif sewage treatment plant is using biogas to power part of the plant's operation and three other sewage treatment plants are utilizing solar energy, aiming to diversify their renewable energy portfolio. These efforts contribute to the Saudi Green Initiative's emission reduction goals, which include increasing the share of renewable energy in the national energy mix. By integrating renewable energy technologies, SWPC not only reduces operational costs and carbon emissions but also enhances the sustainability of the water sector, ensuring a reliable and environmentally friendly water supply for the Kingdom.

What initiatives has the Saudi Water Partnership Company undertaken to reduce production and treatment costs in the water sector, and how does this contribute to the sector's sustainability?

The Saudi Water Partnership Company (SWPC) has undertaken several key initiatives to reduce production and treatment costs in the water sector, significantly contributing to the sector's sustainability. Firstly, SWPC has introduced innovative technologies and modernized existing infrastructure, which has led to more efficient water production and treatment processes. For example, the implementation of advanced desalination technologies has resulted in a notable reduction in energy consumption, cutting costs by approximately 15%. 

Secondly, SWPC has optimized its operations through strategic public-private partnerships (PPPs), combining its expertise in water management with private sector investment to enhance operational efficiency and cost-effectiveness. This approach has led to the achievement of the lowest levelized tariff for a desalination plant at $0.41 per cubic metre on a 25-year water purchase agreement, setting a new benchmark in the industry. Additionally, SWPC has focused on localizing supply chains and fostering the development of local expertise, reducing reliance on costly imports and creating a sustainable ecosystem of local suppliers and contractors. These initiatives collectively not only reduce operational costs but also ensure the long term sustainability of the water sector by promoting resource efficiency, economic growth, and environmental stewardship. 

What strategic measures is the Saudi Water Partnership Company implementing to achieve the national water demand target of 18 million cubic metres per day by 2030 through PPP model projects?

To achieve the national water demand target of 18 million cubic metres per day by 2030 through PPP model projects, the Saudi Water Partnership Company (SWPC) has a large portfolio of projects to meet the local water demand. SWPC has significantly expanded its project portfolio, with 50 projects by 2031, amounting to a private sector investment estimated above $30 billion. These projects include desalination plants, wastewater treatment facilities, water transmission pipelines and strategic reserves. 

With ambitious plans to tender an additional 10 projects within the next 5-6 years, what criteria does the Saudi Water Partnership Company consider when selecting projects, and how does it ensure their alignment with national water demand objectives?

SWPC has significantly expanded its project portfolio, with 50 projects in various stages of development, amounting to over $30 bn

The Saudi Water Partnership Company (SWPC) has set ambitious plans to tender an additional 10 projects within the next 5-6 years, ensuring meeting future national water demand. When selecting projects, SWPC considers several key criteria. First, the project’s potential to meet the growing water demand in various regions is carefully evaluated, ensuring it aligns with the national water strategy and sustainability goals. Second, the technical and financial feasibility of each project is thoroughly assessed to guarantee efficient resource utilization and economic viability. Third, SWPC prioritizes projects that incorporate advanced technologies to enhance water efficiency and conservation. Additionally, the alignment with environmental standards and regulations is essential, ensuring minimal ecological impact. To ensure these projects meet national water demand objectives, SWPC collaborates closely with the Ministry of Environment, Water, and Agriculture (MEWA) and other stakeholders, utilizing comprehensive demand forecasting and strategic planning. This collaborative approach ensures that each project contributes to the overall resilience and sustainability of Saudi Arabia's water sector.

Could you give us an indication of the various water projects the Saudi Water Partnership Company is planning to construct in the near future?

The Saudi Water Partnership Company (SWPC) is making a substantial contribution to improving and expanding Saudi Arabia's water infrastructure through a range of upcoming projects. In the near future, SWPC is planning to undertake the construction of multiple large-scale projects, including the development of two desalination plants with a combined capacity of around 0.9 million cubic metres per day. Additionally, SWPC is set to initiate twelve projects, including Independent Sewage Treatment Plants (ISTP) and Small Sewage Treatment Plants (SSTP), aimed at treating and reusing approximately 0.6 million cubic metres per day of wastewater. These projects are spread across different regions, ensuring a balanced distribution of resources and infrastructure improvements nationwide.

To further bolster the Kingdom's water infrastructure, SWPC is also developing 2 Independent Water Transmission Pipelines (IWTP) with a total capacity of 1.3 million cubic meters, and 2 Independent Strategic Water Reservoirs (ISWR) with a combined capacity of 4.9 million cubic meters. In parallel, the company is developing extensive treated sewage effluent (TSE) pipelines to support industrial and agricultural activities, promoting sustainable water reuse practices. SWPC is actively exploring advanced technologies and sustainable practices to enhance efficiency and reduce environmental impact, reinforcing our commitment to providing reliable and sustainable water solutions for the Kingdom. 

With eight water projects currently under construction, how is the Saudi Water Partnership Company supporting developers and EPC contractors to ensure timely delivery, and what challenges are being addressed along the way?

The Saudi Water Partnership Company (SWPC) currently has eight water projects under construction, demonstrating its commitment to enhancing water infrastructure. To support developers and EPC contractors and ensure timely delivery, SWPC provides several key supports. Firstly, SWPC facilitates access to financing by leveraging its strong relationships with financial institutions, thereby reducing financial bottlenecks. Secondly, SWPC offers technical support through regular consultations and workshops to help contractors adhere to the best practices and latest industry standards. Thirdly, SWPC ensures streamlined administrative processes by coordinating closely with relevant governmental bodies to expedite permits and approvals. 

A key aspect of SWPC's support strategy is encouraging local content. By enacting local content mandates that require compliance throughout the project’s lifecycle, SWPC aims to achieve a local content level of 40% to 70%. This not only boosts the local economy but also ensures the development of local expertise and capabilities. Despite these efforts, challenges persist. One significant challenge is managing the complexity of large-scale projects, which requires meticulous planning and coordination. SWPC addresses this by employing robust project management frameworks and advanced monitoring systems to track progress and promptly address any issues. Another challenge is the fluctuating cost of materials and labour, which SWPC mitigates through strategic procurement practices and maintaining flexible contracts that can adapt to market changes. Additionally, SWPC works to foster strong communication channels between all stakeholders, ensuring transparency and swift resolution of any disputes. By addressing these challenges head-on, SWPC is paving the way for the successful and timely completion of its water projects, thereby contributing to the sustainable development of Saudi Arabia's water sector.

In what ways does the Saudi Water Partnership Company actively contribute to environmental preservation in its operations and projects?

The Saudi Water Partnership Company (SWPC) actively contributes to environmental preservation through several key initiatives. Firstly, SWPC promotes the use of clean energy in its water projects, with many of its desalination plants powered by solar energy, significantly reducing carbon emissions. Secondly, the company emphasizes water conservation and efficiency, having implemented advanced technologies that have saved millions of litres of water annually. Thirdly, SWPC has undertaken extensive reforestation projects, planting over 50,000 trees around its facilities to enhance biodiversity and combat desertification. Additionally, the company is committed to sustainable wastewater treatment, recycling 95% of wastewater for agricultural and industrial use and achieving sludge dryness levels of up to 90%. Lastly, SWPC actively collaborates with international environmental organizations to adopt best practices and innovative technologies, ensuring its operations align with global sustainability standards.