en.Wedoany.com Reported - Jiangsu United Water Technology Co., Ltd. (hereinafter referred to as "United Water") plans to invest in the National Water Company's long-term operation and maintenance contract for municipal sewage treatment plants, Package #10 (North Cluster), with a total investment of 190 million Saudi Riyals (approximately 344 million Chinese Yuan, based on the exchange rate of 1 Riyal = 1.8123 Yuan on July 8, 2026).
In 2026, a consortium led by United Water as the lead party has won the bid for the National Water Company's "Long-term O&M (LTOM) Contracts for Sewage Treatment Plants Package #10 (North Cluster)" project (hereinafter referred to as "LTOM Package 10 (North Cluster)"). Subsequently, United Water will jointly establish a joint venture with consortium member Armada Holding Company to be fully responsible for the operation of this project.
LTOM Package 10 (North Cluster) is a long-term operation and maintenance project promoted by the National Water Company in the northern region, covering 9 sewage treatment plants across 4 provinces: Hail, Qassim, Al Jouf, and Northern Borders. The total project capacity is 337,800 cubic meters per day. The project scope includes Phase I rehabilitation and efficiency improvement, Phase II sludge deep treatment facility construction, and a 15-year full-cycle operation and maintenance, ensuring that effluent, sludge, and environmental performance comply with national standards. According to the "Contract Purchase Agreement" (No. 101251010,0), the total estimated revenue over the 15-year operation period is 1.3056 billion Saudi Riyals (approximately 2.366 billion Chinese Yuan, based on the exchange rate of 1 Riyal = 1.8123 Yuan on July 8, 2026). After winning the bid, the consortium will sign the "Project Sponsor Agreement," "Long-term Operation and Maintenance Agreement," and related appendices with the National Water Company for LTOM Package 10 (North Cluster).
Meanwhile, United Water plans to jointly sign a "Shareholders' Agreement" with Armada Holding Company through its wholly-owned subsidiary, United Water Service Company. Under this agreement, United Water Service Company will contribute 31,350,000 Saudi Riyals, and Armada Holding Company will contribute 25,650,000 Saudi Riyals to jointly establish a project company. The project company will succeed the consortium's relevant rights and obligations under the project agreements and be responsible for the specific operation of the project. The National Water Company will pay service fees through capacity revenue, output revenue, and other methods. This project aims to extend asset life, improve operational efficiency, and support the reuse of reclaimed water, serving as a key component of Saudi Arabia's water strategy.
This foreign investment is subject to filing or approval from relevant competent authorities, including the commerce department, the development and reform commission, and foreign exchange administration, and may not be implemented if such approvals are not obtained. As an overseas project, it may face country-specific risks such as local economic conditions, macroeconomic policies, industry development and market changes, legal, exchange rate, and fund settlement risks. Additionally, the project itself carries certain operational, management, and execution risks. Investors are advised to be mindful of investment risks.
