Investment Opportunities in the Kingdom s Water Sector

Transcription

1 Pre Summit UKTI Seminar Investment Opportunities in the Kingdom s Water Sector Rashed Al Jalajil Executive Director, Office of Strategy Management 22 February 2016

2 AGENDA 1 Introduction to NWC 2 Role of Private Sector in Water & WW Value Chains 3 Opportunities for Private Sector with NWC 4 Doing Business with NWC 1

3 Introduction to NWC National Water Company - NWC s ambition is to become a world-class water utility company The government of the Kingdom of Saudi Arabia embarked upon a programme to transform the water & wastewater sector in the Kingdom aimed at efficiency & increased private sector involvement NWC has developed progressive operational, financial and strategic objectives to realize its ultimate ambition of becoming a world-class water utility company The first step in this process was the establishment of National Water Company (NWC) by Royal Decree in NWC is registered as a joint stock company with a capitalisation of US$ 5.9 B Since its establishment, NWC has led the transformation of the water sector in the Kingdom of Saudi Arabia. 2

4 Introduction to NWC Value Chain of Water & Wastewater NWC currently manages Water & WW value chains of 4 cities in the Kingdom : Riyadh, Jeddah, Makkah and Taif Potable water value chain Wastewater value chain Waste Water Treatment Plant TSE Customer Groundwater Water Treatment Plant Water Residential / Commercial Waste Water Government TSE Desalination Water SWCC Waste Water Industrial NWC is now in the process of taking over 22 additional cities resulting in further opportunities for increased private sector involvement in the Kingdom s water sector 3

5 Introduction to NWC With planned expansion to new cities, NWC will cover 80% of KSA water supply and will emerge as one of the top 5 water utilities in the world Turayf Ar ar Significant increase in service coverage (in Million Persons Covered) 23 Tabuk Yanbu Jeddah Skakah Ha'il Buraidah Qatif Dammam Unaizah Mubarraz Riyadh Madinah Al-Kharj Makkah Taif Jubail Saihat Khobar Hofuf 13 42% of KSA population in 4 cities NWC Current X1.8 75% of KSA population in 26 cities NWC Target Significant growth in water supplied (in Million m 3 /day) Abha Jazan Existing NWC Cities Al-Baha Khamis Mushait Najran % of water supply in KSA X % of water supply in KSA Targeted cities by NWC NWC Current NWC Target 4

6 Role of Private Sector NWC is looking for Private Sector Participation to support its expansion into new cities and further enhancement of the performance of existing operations, aligned with the National Vision Kingdom s National Vision Areas in which Private Sector can support Water Sector Economic Diversification Development of Human Capital Expansion of Public Services Promoting the role of Private Sector Streaming & Modernizing Governance Technical Expertise (Improvement In core operations) Management & Associated Systems (Improvements in enabling services to enhance value add) Enhancing Management Bandwidth (To support NWC s expansion into new cities) CAPEX investments (Potentially in discrete facilities) Transfer of Operational Risks (Hence the incentive to improve efficiencies) 5

7 Opportunities for the Private Sector with the National Water Company (NWC) Opportunities for the private sector in the Kingdom s urban water and sanitation sector (1/3) Opportunity Water supply projects Rehabilitation / construction of Sewage Treatment Plants City management Description In ensuring long term supply, NWC is assessing the private sector s involvement in large water supply projects i.e. Developing / Drilling water fields, establishing water treatment plants and requisite delivery infrastructure i.e. pipeline and water infrastructure By taking on 22 new additional cities and in continuation of NWC s environmental best practice efforts, NWC is exploring opportunities for the private sector s involvement in the rehabilitation of its STPs and construction of new ones In respect of its existing operations, NWC is looking for the private sector to assume greater operational and commercial responsibilities Private sector engagement models Financing and investment EPC of respective components Operations and Maintenance Build, Operate and Transfer contract Financing and investment EPC of respective components Operations and Maintenance Technology Rehabilitate, Operate and Transfer Financing and investment Lease / concession contracts Operations and Management Contracts Joint Ventures with NWC 6

8 Opportunities for the Private Sector with the National Water Company (NWC) Opportunities for the private sector in the Kingdom s urban water and sanitation sector (2/3) Opportunity Description Private sector engagement models Commercialize Treated Sewage Effluent (TSE) Maximizing water reuse is a key pillar of the Kingdom s water strategy. Given its importance, NWC is investing heavily in developing a market for TSE as a product through investing in infrastructure (treatment and distribution), legislation and awareness. Financing and investment Joint Ventures with NWC Concessions and BOT opportunities Technology NWC benchmarks itself against the world s most advanced and developed utilities. As such, it appreciates the role technology plays in becoming a world class utility specifically in areas such as leakage reduction, smart distribution, asset management, IT solutions and Big Data Technology partnerships Joint ventures Human capital development In alignment with the governments localization targets, NWC boasts a 99% Saudi workforce. In continuation of this achievement and its future objectives, NWC acknowledges the importance of the private sectors involvement in the development of its human capital Management Contracts Technical Assistance Contracts Training and people development Outsourcing 7

9 Opportunities for the Private Sector with the National Water Company (NWC) Opportunities for the private sector in the Kingdom s urban water and sanitation sector (3/3) Our projects focus mainly in the areas of Design, Construction, O&M and associated Services with respect to Water & Wastewater sectors: Water Network & Main lines Wastewater Network & Trunk lines Water & Wastewater House Connections Wastewater Treatment plants Brackish Water Treatment Plants Lift stations Large Water Reservoirs Ground water deep wells Rehabilitation of Plants & Networks Related Consultancies Project Management services Supervision services and Professional services DKBU 1, Water Plants, Wells & Reservoirs MCBU 1, , Water Mains MTCBU Water Networks Projected Investments in select Areas US$ Million The value of projects in the above areas to reach upto 25 B US$ in next 5 years JCBU Water House Connections RCBU 2, WWTP 140 3, ,270 Wastewater Mains 150 2, , Wastewater Networks Wastewater House Connections 8

10 Opportunities for the Private Sector with the National Water Company (NWC) We also have a strong pipeline of opportunities for increased Private Sector involvement No Project name Scope Capacity (M3/day) City 1 WWTP BOT: Airport 2 Tertiary treatment for Wastewater 500,000 Jeddah 2 WWTP BOT: North (Phase 1) Tertiary treatment for Wastewater 600,000 Riyadh 3 Yabreen field BOT Produce potable water (drilling wells, RO, pipelines, pumps) 800,000 Riyadh 4 Water source from Hunai field Produce potable water (drilling wells, RO, pipelines, pumps) 400,000 Riyadh 5 Lease concessions Complete water and wastewater value chain operations and management on a concession basis N/A Riyadh, Jeddah, Makkah and Taif 9

11 Doing Business with NWC Prequalification Process: Vendors Registration DEFINITION The prequalification is the selection of competent tenderers, prior to the issue of the invitations to tender. It enables to select vendors with qualifications and experience that are adequate to the job The general prequalification applies for standard contracts < 53 Millions US$. For mega contracts > 53 Millions US$, a specific prequalification process is performed by project FAIR, OBJECTIVE AND TRANSPARENT CRITERIA Fair, objective and transparent criteria are used in order to evaluate vendors. Criteria are based on experience, financial position, personnel capabilities, technical capabilities, litigation history, HSSE For manufacturers, a site visit is and a verification of products quality and certifications will be performed MAIN DOCUMENTS TO BE PROVIDED Commercial Registration Certificate attested by Saudi Consulate Audited financial status (Three last years) and solvency bank letter Successful projects testimonials (or contracts) If the company has a subsidiary in Saudi Arabia, standard local documents are also requested (Bank Letter, Chamber of Commerce Certificate, General Organization for Social Insurance, Saudization Certificate, Zakat Certificate) 10

12 Doing Business with NWC Vendor Evaluation Once a vendor submits prequalification request, NWC team will analyze provided information. If the vendor is selected, NWC will define bidding categories (categories for which the vendor is prequalified. Ex: water network construction, etc.) and the spend limit per category. Process Prequalification process Activities Vendors assessment Categories definition Classes definition Outputs Selected / Rejected Categories Category 1 Class (spend limit) by category Category 1 <53 $M Category 2 Category 2 <13 $M Category 3 Category 3 <27 $M Objectives Check that the vendor is a healthy company If a vendor is selected, define allowed categories If a vendor is selected, define class per category (ex: water network construction, pump ) (ex: water network construction 50M) 11

13 Doing Business with NWC Prequalification process: How To Register with us Registration website: If you have any questions, please do not hesitate to call , or or 12

14 Thank you Rashed Al Jalajil Executive Director, Office of Strategy Management National Water Company P.O. Box 676, Radix Tower King Fahd Road Riyadh