The Minister of Water and Electricity, Abdullah Al-Hussayen signed here yesterday contracts worth more than SR709 million to establish six new water desalination plants in Al-Wajh, Amlaj, Rabigh, Laith, Qunfuda and Farasan.
Speaking to reporters after the signing ceremony in Riyadh, Al-Hussayen said the new projects would double water supply in villages and towns on the Kingdom's west coast and end the water crisis there.
He said the new water desalination plants in Al-Wajh, Amlaj, Laith, Qunfuda and Farasan would supply additional 9,000 cubic meters of water each daily, while the new Rabigh plant would pump 18,000 cubic meters of water daily.
He said the privatization plan for the existing water desalination plants had made considerable progress.
The Kingdom of Saudi Arabia launched the privatization of water desalination plants by awarding a SR9.1 billion contract to a consortium of Saudi and Malaysian companies in order to set up the third plant in Shuaiba.
The Minister said the Shuaiba-3 would supply 194 million gallons of water daily, as well as 900 megawatts of electricity. Work on the project will start 21 January and its first unit will begin production 13 October, 2008.
The Shuaiba-3, which is to supply water to Makkah, Jeddah, Taif and Baha, is one of the world's biggest co-generation projects for the production of water and electricity.
He said the Supreme Economic Council, chaired by the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz, has approved four independent water and power projects. They are: Shuaiba-3, Shuqaiq-2, Ras Al-Zour, and Jubail-3.
The Minister estimated the total cost of the four projects at SR30 billion. The private sector will contribute 60 percent of their cost, while the state-owned Public Investment Fund (PIF) will have 32 percent stake and the Saudi Electricity Company (SEC) 8 percent of the four projects.
The combined production capacity of the four projects will reach 492 million gallons daily and 4,500 megawatt of power. "These projects will boost the total desalination capacity of the Kingdom by 80 percent," Al-Hussayen pointed out.
Al-Hussayen said the Kingdom would require nearly SR350 billion in investment for water and sewage projects and SR340 billion for electricity projects during the next 20 years. He said the water and electricity sectors in the Kingdom were growing at the rate of seven percent.
