Riyadh management contract

What is it? A $60 million six-year management contract covering water production and distribution and wastewater collection in the Saudi capital city of Riyadh.

Who is responsible? The client is the Saudi National Water Company. Veolia Water AMI will provide services under the contract. Seureca conducted the original audit.

Why is it shortlisted?

• The decision to open up the Saudi water market to the private sector is an inspired initiative which shows that the country is willing to be pro-active in tackling its water problems. The award of the Riyadh management contract in April 2008 is the first major step towards realising this vision.

• The contract scope is vast, even for a seasoned operator like Veolia. Riyadh's 4.5 million population is growing at 4% per year, and the city covers an area five times the size of Paris. The scope defines the challenge: unaccounted-for water levels run at 50%, and less than half of the city's residents are connected to the wastewater network. Veolia's participation will improve these figures dramatically.

• The successful conclusion of the Riyadh contract has already paved the way for a similar contract in Jeddah, and anticipates the roll-out of private sector participation to Saudi Arabia's second-tier cities. It demonstrates that the National Water Company is committed to real action on its privatisation programme.