Sewage plants in Riyadh will benefit from an SR1.62 billion ($431 million) operation and maintenance contract handed out to Alkhorayef Water and Power Technologies Co. by the National Water Co..
AWPT sealed the 15-year contract to operate and maintain the Manfouha Northern, Manfouha Eastern, and Al Manfouha sewage treatment plants.
Under the contract terms, AWTP will modernize the design of the facilities, as well as testing and commissioning the three plants.
According to the statement, rehabilitation work is expected to be finalized in two phases within 36 months of the commencement of the contract.
The company further said that the total design capacity — or the maximum amount of solid waste the plant can accept — for all three facilities amounted to 700,000 cubic meters per day.
Proceeds from the deal would reflect on the firm’s financials in the fourth quarter of 2023.
The company reported a net profit of SR107.4 million in 2022, up 4 percent from SR103 million in 2021.
Its revenues rose 44.46 percent to SR822 million in 2022 from SR569 million in 2021 due to higher earnings in the integrated water solutions, water and wastewater segments generated from new projects.
However, total income took a hit because of an increase in the costs of Murabaha financing contracts from SR3.8 million to SR19.2 million due to a rise in interest rates and the resulting surge in project costs.
AWPT had also bagged an SR33.5million contract from NWC to operate and maintain water networks, treatment plants and wells in Hafar Al-Batin and Al Qaisumah.