SAUDI MEGA TRANSPORT AND

INFRASTRUCTURE CONFERENCE

NWC, PROJECT OPPORTUNITIES

Eng.Yahya Alyousef, Asset Director

Riyadh , 18th September 2013

2

AGENDA

HISTORY

MAJOR CHALLENGES

HIGHLIGHTS OF KPI RESULTS/ ACHIEVEMENTS

BLUEPRINT FOR THE FUTURE / OPPORTUNITIES

FACILITIES OFFERED TO NWC CONTRACTORS

3

THE KINGDOM’S PRIVATIZATION PROGRAM HAS TARGETED THE WATER SECTOR BY INTRODUCING KEY

CHANGES FROM 2005 TO 2013, ONWARDS

Key Milestones in the Privatization of the Water and Wastewater Sector (2005-2012)

2005 2007 2013 2008 2010

NWC launches the

PPP agreement

for Makkah / Taif

partnering with

Saur Group & Al

Zamil.

MOWE develops

the Strategic

Transformation

Plan (STP) to

introduce private

sector participation

in the water sector NWC is created by

Royal Decree M-1

(13/1/1429H)

NWC launches 1st

PPP agreements for

the water sector in

Riyadh and Jeddah,

partnering with Veolia

France & Suez Group

respectively

Timeline

NWC to cover the

rest of the 15 cities

in KSA

Capital Investment

exceeded 50 Billion

SAR

2012

RFP Launched –

Riyadh, Jeddah-

Makkah-Taif for

business case &

transformation of the

TSE & O&M BU.

Future

plan

4

OVERVIEW OF NEW CITIES TO MANAGED BY NWC

PPP Status City

Population

000

Daily

potable

water

supply

(M3/day)

% of KSA

total potable

water supply % of KSA population

Under operation Riyadh 4,900 1,600,000 29 19.6

Under operation Jeddah 3,480 820,000 15 13.9

Under operation Makkah &

Taif

2,196 318,000 5.8 8.8

Will be initiated

during next 12 – 18

months

Madinah 994 5.1 4.0 281,000

Dammam

& Al Khobar

1,204 528,000 9.6 4.8

Total (7 cities) 12,774 3,547,492 64 51.1

Wave 1

W

ave 2

W

ave 3

5

NWC VISION & MISSION

Vision

“ To be a world-class water utility company ”

Mission:

“To provide exceptional water and wastewater services in

a reliable, sustainable and cost-effective manner, focusing

on the satisfaction of our customers, employees and

communities, to deliver strong performance through

a commercially viable organization”

CHALLENGES

7

2008, SAUDI WATER AND WASTEWATER SECTOR WITH ITS NUMEROUS

CHALLENGES

Poor

Infrastructure

Ageing assets with unplanned

interruptions

High levels of leakage

More focus on capital than

operational expenditure

(maintenance)

Shortages in

Water

Supply

Water rationing due to

demand/supply gap

Low water pressure in network

Incomplete network coverage

Suboptimal reliability of

distribution

Low collection network

coverage

Need to cater for increasing

water supply and consumption

Limited Sewerage

Collection

Environmental

Issues

High water spillages

No control over industrial

effluent

Sub-standard TSE quality

Inadequate sludge disposal

practices

High capex requirements to meet

water demand, expand

sewerage networks and increase

treatment capacity

Suboptimal project management

High Capital

Expenditures

Unsatisfactory

Customer

Service

Complex complaint

management

Service not customer oriented

Delays in connecting customers

to networks

NWC

ACHIEVEMENTS

9

2012 – KPIS (1 OF 2)

Customer Satisfaction Index (%)

2009

+17%

84%

2008

83%

2012

85%

45%

83%

2011 2010

Conducted by, a reputed 3rd Party company

Volume of Water Saved due to Leak Detection (Million m3)

115.4

67.553.9

23.07.2

2012

+100%

2010 2009 2008

2011

Avg. Lead-time to award Capital Projects (Days)

125128

180

2010 2011

-17%

2012

Cum Vol of TSE Agreements and MOUs Signed (m3/day)

436,100405,000276,000

27,000

2012 2011 2009 2010

153%

10

2012 – KPIS (2 OF 2)

Average Time to Install Wastewater Connection (Days) Average Time to Install Water Connection (Days)

No. of new WW connections (#)

20234760

180

2011 2010 2008

2009

-42%

2012

1924

3030

70

2008

2009 2012

-28%

2011 2010

50,873

28,42620,700

40,000

27,600

2008

2009 2012 2011

+17%

2010

No. of Projects behind Schedule (#)

218

27

61

104

2012 2010

-56%

2009 2011 2008

11

6 MONTHS TO EXECUTION OF RIYADH WATER SUPPLY PROGRAM (RWSP)

• RWSP was

launched on

15th June 2012,

RWSP was

tasked with

increasing water

supply for the

City of Riyadh

by 200,000

m3/day.

• This project

includes digging

43 new wells,

establishing 46

new WTPs, and

building storage

tanks with

capacity

180,000M3 and 6

Filling Stations

12

5 MONTHS TO CLEAN UP ALNAZZEM LAKE (RCBU)

• Lake has been

used for

approximately

20 years

• Received

~20,000 to

30,000 m3/day

• The lake area

5.8 Million m2

• More than

200,000 M3 of

wastewater.

• More than 2

Million m3 of

sludge

• Mixture of

Domestic and

Industrial Waste

• Lake has

been used for

approximately

20 years

• Received

~20,000 to

30,000

m3/day

• The lake area

5.8 Million m2

• More than 2

Million m3 of

sludge

• Mixture of

Domestic and

Industrial

Waste

13

3 MONTHS TO CLEAN UP JEDDAH LAKE (JCBU)

• Lake has been

used for more

than 20 years

• Received

50,000 m3/day

• The lake area

2.5 Million m2

• More than 8

Million m3 of

Waste Water

• More than

385.00 m3 of

Sludge

• Mixture of

Domestic and

Industrial

Waste

14

* Including the ongoing projects

CBU’s RCBU JCBU (MTCBU)

Makkah Taif

Total of Length

km

House

Connections

Length

km

House

Connections

Length

km

House

Connections

Length

km

House

Connections

Water

Network 13,472 373,315 5,500 185,000 3,270 81,120 920 37,563

* Coverage % 97 90 80 70

Waste Water

Network 5,195 222,406 1600 72,709 1700 53,509 790 29,057

* Coverage % 78 70 78 60

2013 – WATER & WASTE WATER COVERAGE AREAS AND NO. OF HOUSE CONNECTIONS:

NWC PROJECTS PORTFOLIO

INFORMATION

16

CBU’s No. Of Ongoing

Projects

Projects Total Values

Billion SR

RCBU 138 8.7

JCBU 57 8.3

Makah (MTCBU) 27 1.5

Taif (MTCBU) 21 1.3

Total 243 19.8

2013 –NWC PROJECTS PORTFOLIO INFORMATION :

BLUEPRINT FOR THE FUTURE

&

CAPITAL INVESTMENT PLAN

18

EVOLUTION OF SPV CONCEPT

JV

Private

Partners

Local O&M / TSE Pilot Projects

National O&M / TSE Portfolio

TSE District Cooling

Cities O&M Services

Bu

sin

ess G

row

th

19

Evolution of Annual Revenues (2014 vs. 2033)

2014 2033

SAR 31 Million

SAR 873 Million

0

SAR 2,264 Million

0

SAR 498 Million

SAR 31 Million

SAR 3,635 Million Total

TSE

DC

O&M

DC and O&M are expected to begin in 2015

1

1

1

20

Estimated Capital Program (2013 – 2017) – SAR 50 Billion

City Business Unit CAPEX for 5 Cities

(in BSR)

Riyadh 18

Jeddah 15.7

Makkah & Taif 10.7

Madinah (Future) 2.8

Dammam/Khobar(Future) 2.8

21

NWC TOTAL CAPEX REQUIREMENTS FOR 5 MAJOR CITY/GROUPS

TOTAL = 50 BILLION SAR (2013-2017)

Types of Investments

in M

illio

n S

AR

-

2,000

4,000

6,000

8,000

10,000

12,000

Water Plants ,Wells &

Reservoirs

Water Mains Water Networks Water HouseConnections

WWTP WastewaterMains

Waste WaterNetworks

Waste WaterHouse

Connections

2,308 2,126 2,733

974

2,721

4,737

1,579 947

1,683 1,307

1,144

5

3,399

3,203

4,249

654

1,381

1,181

1,288

746

2,039

2,361

751

966

335

251

251

224

531

643

363

196

395

311 282

169

508

536

451

169

RCBU JCBU MTCBU MCBU DKBU

FACILITIES OFFERED TO NWC

CONTRACTORS

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ADVANCE PAYMENT UP TO (20%) TO THE CONTRACTORS.

PROFESSIONAL AND COLLABORATIVE APPROACHES WITH CONTRACTORS.

PROFESSIONAL PROJECT MANAGEMENT PRACTICES

PHASE-1 - CREATION OF NWC-PMM (PROJECT MANAGEMENT MANUALS) WHICH WERE

DEVELOPED BY FAITHFUL & GOULD (ATKINS GROUP-UK) BASED ON ONE OF THE BEST PROJECT

MANAGEMENT PRACTICES (PMI), PLUS ISO 9001 (QUALITY MANAGEMENT), 14001(HSE) AND

OHSAS 18001.

PHASE-2- APPOINTMENT OF AECOM FOR NWC-PMM PROFESSIONAL IMPLEMENTATION WITHIN

NWC, PROVIDE PROFESSIONAL PROJECTS SERVICES AND SUPPORT FOR THE COMPANY MEGA PROJECTS.

Facilities offered to Contractors

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SUPPORT TO THE CONTRACTORS IN OBTAINING CERTAIN LOCAL RAW MATERIALS LIKE ASPHALT,

PIPES ETC.

LOW RISK FIDIC FORM OF CONTRACT.

ASSISTANCE IN GETTING APPROVALS FROM MUNICIPALITIES AND GOVERNMENT AGENCIES.

SPEEDY SETTLEMENT OF PAYMENTS.

Facilities offered to Contractors

25

Capital Projects …… Engr. Yaser AlJadawy ( yjeddawi@nwc.com.sa )

TSE Business Unit …… Eng. Montazar Al Mohalhal(

mmuhalhal@nwc.com.sa )

O&M Business Unit ……. Eng. Suliman Albusaily ( sbusaili@nwc.com.sa )

Contractor’s Qualification …. Eng. Abdullmajed Alzannan (

aalzannan@nwc.com.sa )

Eng. Yahya Alyousef (yyousef@nwc.com.sa)

NWC web site (nwc.com.sa)

Contact PERSONS

THANK YOU!