Saudi Arabia’s water sector is undergoing significant transformation, shifting from public-led operations to increased private sector participation, primarily through public-private partnerships (PPPs). This evolution aligns with the Kingdom’s Vision 2030 goals for sustainable resource management.
Key Regulatory Bodies and Entities
- Ministry of Environment, Water and Agriculture (MEWA): Sets policy and strategic direction.
- Saudi Water Authority (SWA): Main regulator, formed from the restructuring of the Saline Water Conversion Corporation (SWCC).
- Water Solutions and Management (WSM): A new entity under the Public Investment Fund (PIF), intended to take over SWCC’s assets, though the transfer is pending.
- Saudi Water Partnership Company (SWPC): Oversees private investment and acts as the main purchaser of water from producers.
- National Centre for Environmental Compliance (NCEC): Issues environmental permits and enforces compliance.
Sector Breakdown by Asset Class
- Desalination (Water Production)
- SWA operates legacy SWCC facilities.
- SWPC procures large-scale desalination projects (e.g., Jubail 4&6, Ras Mohaisen IWP).
- Reservoirs and Dams
- Operated by the National Water Company (NWC) and private entities like NEOM.
- SWPC issues tenders for strategic reservoir projects.
- Transmission and Storage
- Managed by Water Transmission Company (WTCO) and SWPC.
- WTCO is expected to become the main developer and procurer for transmission projects.
- Distribution
- NWC handles water delivery to end users.
- Limited PPP involvement, but MOM contracts are issued for network upgrades.
- Wastewater Collection and Treatment
- Saudi Irrigation Organisation (SIO) manages treated water use.
- NWC and SWPC procure wastewater treatment projects, with SWPC focusing on larger ISTPs.
Financial Oversight
- The Water Balancing Account (WBA), managed by SWPC under the Ministry of Finance, ensures financial sustainability by aligning sector costs and revenues.
(Source: Pinsent Mason)