Tawzea looks to turn industrial city success into regional concession dominance
The Saudi company is best known for its work in operations and concessions with industrial cities. Now it has been given the job for the Kingdom’s newest sewage PPP project – and tells GWI that it is hoping to use the contract as a springboard for regional growth.
Saudi utility development specialist Tawzea is looking to use the Kingdom’s wave of PPP projects to transition into a major regional concessions player, after it was named in the winning consortium for the country’s newest privately financed treatment project.
In late October, alongside its Spanish partner Cobra, Tawzea was awarded the contract to develop the 270,000m3/d Taif independent sewage treatment plant (ISTP), the third privately financed wastewater facility to be rolled out by the country’s central water privatisation body, the Saudi Water Partnership Company (SWPC).
Tawzea CEO Mohammed Halawani told GWI that the company is aiming to use the Taif contract – the largest facility it has developed to date – as a springboard to build up the company’s presence and capabilities as the number of opportunities to invest in water assets around the region continues to grow. He also expects privately financed wastewater assets which are in the planning stage in neighbouring GCC countries and Egypt, among others, to offer further opportunities for the company to expand outside its home market.
Halawani said that the company’s target is to increase its market share in the region alongside a significant growth in revenue, with almost all of that growth coming from income from long-term concessions. Revenue currently stands in the region of SAR255 million ($70 million), with the company hoping to increase this by around 50% over the next five years.
Tawzea (‘distribution’ in Arabic) was set up in 2006 as a 50:50 joint venture between its two Tadawul-listed Saudi parents, industrial development group Saudi Industrial Services Company (SISCO) and pipe manufacturer Amiantit. Its portfolio currently includes 14 long-term concessions and O&M contracts covering potable water supply and wastewater handling with industrial city authority Modon, as well as operations contracts for the Saudi Ministry of Environment, Water and Agriculture. The Modon concessions and O&M contracts see it supply a total of 220,000m3/d of potable water, while treating 72,000m3/d of wastewater. The industrial city concessions are notable as one of the few areas in Saudi Arabia where private companies are responsible for billing and customer service provision as well as infrastructure operations.
