Saudi Arabia Opens the Gate for Major Independent Water Transmission System
The Kingdom of Saudi Arabia is setting the stage for an ambitious project, calling on global investors and developers to express interest in a transformative water transmission initiative. With the announcement of the Ras Mohaisen – Baha – Makkah Independent Water Transmission System (IWTS), Saudi Arabia’s Water Transmission Company (WTCO) is welcoming bids to establish a large-scale project designed to revolutionise the country’s water infrastructure. This effort marks a significant leap in the kingdom’s drive towards enhanced water management, resilience, and sustainability in the face of growing demand.
As the licensed operator for Desalinated Water Transmission Systems (DWTS) across Saudi Arabia, WTCO is seeking a partner—or consortium of partners—to help design, build, finance, lease, and transfer this project on a DBFLT (Design, Build, Finance, Lease, and Transfer) basis. This pivotal IWTS aims not only to secure the kingdom’s water supply but also to reinforce WTCO’s role as a leader in sustainable water management within the region.
A Strategic Step Towards Sustainable Water Solutions
Saudi Arabia’s ambitious vision for water security underscores its commitment to building a resilient water transmission network that can withstand the demands of a rapidly growing population and expanding urban infrastructure. Water scarcity is a challenge globally, but in arid regions like the Middle East, it’s especially pressing. Here, desalinated water is lifeblood, but moving that water efficiently and sustainably across vast distances remains a complex challenge.
The Ras Mohaisen – Baha – Makkah IWTS project serves as a keystone in Saudi Arabia’s strategic plan to meet this challenge head-on. WTCO, as the country’s DWTS operator, already manages extensive desalinated water transmission networks and storage facilities, ensuring a reliable supply across Saudi Arabia’s vast and often rugged landscape. The IWTS will add a new layer to this infrastructure, creating a dedicated pipeline and transmission system to securely transport desalinated water from Ras Mohaisen to key regions, including the cities of Baha and Makkah.
With the entire transmission capacity of this system earmarked for WTCO, the project company will lease the infrastructure under a Water Transmission Development and Lease Agreement (WTDLA) spanning up to 35 years. This long-term lease arrangement underscores WTCO’s commitment to building lasting partnerships that can support the kingdom’s ambitious water infrastructure goals.
Addressing Saudi Arabia’s Water Needs
Saudi Arabia’s demand for fresh water is on a continuous rise, driven by an increasing population, urbanisation, and agricultural demands. Historically, the kingdom has relied heavily on its extensive desalination plants, which extract fresh water from the sea to meet these needs. However, the next critical challenge lies in delivering this precious resource across hundreds of kilometres to communities, cities, and industries that depend on it.
Projects like the Ras Mohaisen – Baha – Makkah IWTS embody the next phase in water management, where sophisticated infrastructure supports reliable, safe, and efficient transmission. Through IWTS, WTCO aims to bolster the kingdom’s water infrastructure, easing logistical challenges, reducing supply gaps, and helping future-proof the system against climate change pressures.
To drive the project forward, WTCO has appointed a seasoned team of advisers to ensure rigorous project management and strategic oversight:
- Synergy Consulting IFA Inc. – Serving as Lead and Financial Adviser
- Clifford Chance – Taking on the role of Legal Adviser
- ILF Consulting Engineers – Engaged as the Technical Adviser
These advisers bring deep expertise in large-scale infrastructure projects, especially those involving public-private partnerships in critical sectors like water and utilities.
What’s at Stake for Potential Investors and Developers?
WTCO’s competitive bid process represents a valuable opportunity for global players in infrastructure development, especially those with expertise in water transmission. Given the scale of the IWTS project and the long-term lease arrangement, selected developers stand to benefit from a stable revenue stream backed by a solid, government-supported agreement.
The chosen developer will assume responsibilities spanning the full lifecycle of the project, including design, construction, financing, and maintenance, while WTCO remains the primary lessee of the transmission capacity. With an expected lease term of up to 35 years, developers can leverage the extended time frame to recoup investments and create a positive impact on their bottom line, while supporting Saudi Arabia’s critical infrastructure needs.
Furthermore, participating in the IWTS project aligns with the broader Vision 2030 objectives. This ambitious reform program, launched by Crown Prince Mohammed bin Salman, seeks to diversify the Saudi economy and reduce dependence on oil revenues by investing in sustainable infrastructure. For developers and investors, this project is an opportunity to become a part of a historic transformation in the kingdom’s infrastructure landscape.
Project Details and Next Steps for Interested Parties
WTCO has announced that interested parties should formally express their intent to participate by November 16, 2024. This deadline marks the initial step in a multi-stage procurement process designed to identify and select the right development partners who can bring technical, financial, and operational expertise to the table.
The procurement timeline is expected to proceed as follows:
- Expressions of Interest Submission – Interested parties submit EOIs by November 16, 2024.
- Prequalification – WTCO will shortlist qualified developers based on technical, financial, and experience criteria.
- Proposal Submission – Shortlisted developers will be invited to submit detailed technical and financial proposals.
- Evaluation and Awarding – WTCO will evaluate proposals based on criteria such as project feasibility, cost-effectiveness, and sustainable practices, ultimately awarding the contract to the most qualified bidder.
By following these stages, WTCO ensures a transparent and competitive process that aims to deliver the best possible value to Saudi Arabia and the selected project developer.
A Long-Term Vision for Water Security
For Saudi Arabia, the IWTS is more than a pipeline; it’s a critical piece of a much larger puzzle. The country is racing against time to meet growing water needs while contending with the realities of a changing climate. As temperatures rise and groundwater resources dwindle, projects like IWTS represent the future of water security for the kingdom.
This project not only addresses today’s needs but also lays the groundwork for a robust and resilient water network that will serve the kingdom for decades to come. By engaging the private sector in its infrastructure goals, Saudi Arabia is setting a precedent in the region, showcasing how public-private partnerships can achieve shared goals for sustainability, innovation, and growth.
A Promising Future
As WTCO embarks on this project, the Ras Mohaisen – Baha – Makkah IWTS stands as a beacon for sustainable development in Saudi Arabia’s water sector. The selected developer will join WTCO in a venture that promises to reshape the kingdom’s water infrastructure, contribute to its economic stability, and secure a reliable water supply for generations to come.
This ambitious water transmission system will not only fulfil an essential need but also signal to the world that Saudi Arabia is serious about its commitment to sustainable development and resource management. For developers, investors, and policy makers alike, this project is a gateway to making a lasting impact in one of the most vital sectors for the future.
