Local contractor wins $460m Al Ahsa package

01 May 2024
Long-term contract involves the rehabilitation and maintenance of four plants

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Saudi Arabia’s Alkhorayef Water & Power Technologies (AWPT) has won a long-term operation and maintenance (LTOM) contract for three existing sewage treatment plants (STPs) and one new plant in Al Ahsa.

The contract is valued at SR1.7bn ($460m), the firm said in a bourse filing on 30 April.

Alkhorayef Water & Power Technologies will design, complete rehabilitation works, test and commission, perform full operation and maintenance (O&M), and hand over three existing STPs and one new STP.

The plants included in the package are:

  • Existing STPs: Al Hafuf 1, Al Oyun and Al Omran 
  • New STP: Al Hafuf  2

The contract requires the rehabilitation works to be completed in two phases within 36 months from the contract date.

The O&M package runs for 15 years from the contract date, in conjunction with the commencement of rehabilitation work.

Once completed, the combined total capacity of the four upgraded STPs will reach 472,000 cubic metres a day (cm/d), up from 457,500 cm/d.

The financial impact of the deal, awarded by the National Water Company, will start in the third quarter of 2024, according to Alkhorayef.

In January, the Riyadh-based contracting company won a SR70.5m LTOM contract for water and sewerage networks in Taif in Saudi Arabia's Mecca province.


MEED’s April 2024 special report on Saudi Arabia includes:

> GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
> BANKING: Saudi lenders gear up for corporate growth
> UPSTREAM: Aramco spending drawdown to jolt oil projects
> DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector

> POWER: Riyadh to sustain power spending
> WATER: Growth inevitable for the Saudi water sector
> CONSTRUCTION: Saudi gigaprojects propel construction sector
> TRANSPORT: Saudi Arabia’s transport sector offers prospects

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