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Egypt's Orascom wins sewage treatment plant contract in Saudi

Orascom will lead the engineering and construction scope for a sewage treatment facility in Dammam

Orascom's water treatment projects include the Galala seawater desalination plant in Egypt.
© Orascom Construction
Orascom's water treatment projects include the Galala seawater desalination plant in Egypt.

A consortium comprising desalination firms Metito, Riyadh-based water utility business Mowah, and Egyptian contractor Orascom, has signed a deal to build a sewage treatment complex in Saudi Arabia.

It is the first independent sewage treatment plant project (ISTP) to be tendered to investors under a build-own-operate-transfer model in Saudi Arabia, a sign of the private sector's growing role in the kingdom.

The consortium, led by Metito, signed the deal with the kingdom’s Water & Electricity Company.

Stakeholders will now start to conclude documents, contracts, and agreements to “achieve financial close for the project”, Orascom said.

READ: Orascom reveals $985m new contract wins in 9M 2018

The Dammam West Independent Sewage Treatment Plant (ISTP) in Saudi Arabia will serve the city's western region. Orascom will lead the project's engineering, procurement, and construction.

The complex in Dammam, a city located on Saudi Arabia’s eastern seaboard, will have an initial capacity of 200,000m³ per day. This can be increased by 75% to 350,000m³ if necessary.

READ: Orascom joins consortium to build Egypt's biggest wind farm

Chief executive officer of Orascom, Osama Bishai, said the ISTP marked an important step forward in the diversification of the Egyptian builder’s portfolio.

“This project is a continuation of our efforts to build a solid portfolio of water-related construction projects, similar to what we have achieved in power generation.”

Metito chief executive officer, Mutaz Ghandour, described the ISTP as a “first-of-its-kind“ water project in “one of the most dynamic markets” in the region.

News of the the ISTP came a day after Orascom reported it had added $825m of new contract wins to its backlog in Q4 2018.

Its home markets of Egypt and Africa were responsible for six of 10 new contract awards in the quarter, while growth in the US construction market contributed positively to a diversified order book.

The string of contract wins – which included water-related work in Egypt’s New Administrative Capital and Al Alamein – helped the contractor bag $2.3bn of work in 2018.

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Construction Week - Issue 734
Mar 21, 2019