Chinese Consortium, Led by United Water, Wins Major Saudi Wastewater Treatment Contract

Chinese-Led Consortium Secures Major 15-Year Saudi Wastewater Treatment Project

A consortium led by United Water Technology, a major Chinese water infrastructure firm, has won a significant contract from Saudi Arabia’s National Water Company (NWC). The project, centered in northern Saudi Arabia, marks a key step in China's growing role in the Kingdom's environmental and water infrastructure under Saudi Vision 2030.

Project Scope: Upgrading Nine Plants Across Northern Regions

The 15-year contract covers the upgrade, operation, and maintenance of nine municipal wastewater treatment plants across four northern provinces: Qassim, Hail, Al Jouf, and the Northern Borders region.

Key project components include:

• Comprehensive technical upgrades to existing infrastructure.

• Installation of new sludge drying equipment for improved solid waste handling.

• Ensuring treated effluent meets stringent Saudi environmental standards.

Upon completion, the upgraded facilities will have a combined daily treatment capacity of approximately 337,800 cubic meters, significantly boosting local sanitation and water reuse capabilities. This project is a direct implementation of the Saudi National Water Strategy 2030, which prioritizes infrastructure expansion, environmental protection, and public health.

Consortium Structure: International Partnership for Local Delivery

The winning consortium blends international expertise with local partnership:

• Leader: United Water Technology (China): Leads project design, operations, and partial construction.

• Local Partner: Armada Holding (Saudi Arabia): Manages on-ground construction, logistics, and local business engagement.

• Financial Partner: Prosus Energy (UAE): Provides project financing support.

The NWC will compensate the consortium based on a model considering fixed investment, operating costs, treated volumes, and water quality performance. While the total contract value was not disclosed, the announcement positively impacted United Water's stock (SH: 603291), reflecting market confidence.

Strategic Significance for Saudi Vision 2030 and Chinese Expansion

For Saudi Arabia, this project is critical for addressing urbanization and environmental sustainability challenges. Modernizing wastewater infrastructure is essential for public health, water conservation, and increasing water reuse—a cornerstone of Vision 2030's sustainability goals.

For United Water Technology, this contract represents a strategic breakthrough into the high-growth Middle Eastern water market. Successful execution positions the company for further expansion in Saudi Arabia, the GCC, and adjacent regions like South and Southeast Asia, where demand for water solutions is rising.

Context: Saudi Arabia’s Water Sector Transformation

This award is part of Saudi Arabia’s broader push to modernize its water sector through Public-Private Partnerships (PPPs) and international concessions. By attracting foreign investment and expertise, the Kingdom aims to accelerate infrastructure development, improve service efficiency, and achieve its ambitious Vision 2030 targets.

Similar projects are underway nationally, including network expansions and new treatment plants in regions like Jazan, highlighting a comprehensive, partnership-driven approach to water security.

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Looking Ahead

The United Water consortium's contract exemplifies the global collaboration driving Saudi Arabia's infrastructure transformation. It highlights the Kingdom's commitment to leveraging international expertise for sustainable development while offering global firms like United Water a pivotal entry point into a strategic and evolving market.