Saudi minister signs water facilities, operating services contracts

• The first such contract in the Middle East

RIYADH, Saudi Arabia, Oct. 2, 2007 -- At a press conference held in his office this afternoon, HE Dr. Hashem Yamani, Minister of Commerce and Industry and Chairman of the Saudi Organization for Industrial Estate and Technology Zones (SOIETZ), signed contracts with the International Company for Water Distribution (Tawzea) for the management of water services projects benefiting three industrial cities.

These projects are unique as they provide comprehensive water services while meeting all the environmental and water needs of the industrial cities through ROT (Rehabilitate, Manage and Transfer) contracts. This is the first such move in the Middle East. Namely, the projects are:
• The ROT project for potable water facilities in Jeddah's 1st Industrial City
• The ROT project for potable, sewage, irrigation, and industrial water in Riyadh's 2nd Industrial City
• The BOT (Build, Operate, and Transfer) project for potable, sewage, irrigation, and industrial water in Gassim's 1st Industrial City

Minister of Commerce and Industry Dr. Yamani said the projects are in line with SOIETZ's strategy to privatize water services within the industrial cities to become integrated entities, adding that more water contracts for industrial cities in Dammam and Al-Ahsa are on the way. SOIETZ is currently revamping operations within the industrial cities in the hopes of modernizing services.

Attending the signing was Dr. Tawfiq Al-Rabiah, General Manager of SOIETZ. "The signing of the water services privatization contracts is part of a grand plan we are implementing at SOIETZ to upgrade services within industrial cities in the hopes of overcoming obstacles faced by industrialists and creating model industrial zones," commented Dr. Al-Rabiah. "With today's signing we are embarking on a major regional undertaking for the future of our nation, and as such I am pleased to witness the gradual evolution of our industrial cities as they develop their infrastructure to meet the growing needs of local industries," added Dr. Al-Rabiah.

The International Company for Water Distribution (Tawzea) is one of the first national companies to provide water services and facilities management in a comprehensive and integrated method. It is a 50/50 percent joint venture between AmiWater, a subsidiary of the Saudi Arabian Amiantit Company specialising in water management projects, and the Saudi Company for Industrial Services CISCO. The new company combines AmiWater's global expertise in water management projects, and CISCO's expertise in services management in industrial cities. While at the present time the focus is on providing these services in the industrial cities, Tawzea looks forward to expanding the company's future in the management of water services to include the residential and industrial sectors.

Accordingly, Tawzea plans to offer its services in the area of BOT water, water treatment and sewage systems, and the company is also planning to expand its range of operations to include gas distribution networks and residential networks within cities.

For his part, Mohamed Al-Rehaily, CEO of Tawzea estimated the construction and operating costs of these projects to exceed $800 million during the 30-year contract life span. Tawzea will meet all the water needs of the 1st Industrial City in Jeddah, the 2nd Industrial City in Riyadh, and the 1st Industrial City in Gassim covering the water system, irrigation, sewage and industrial water treatment.

The International Company for Water Distribution (Tawzea) is a leading Saudi company providing water services and facilities management in a comprehensive manner. Tawzea is a partnership equally divided between AmiWater, a subsidiary of the Saudi Arabian Amiantit Company specializing in water management projects.

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