RIYADH, May 14: Saudi Arabia said on Saturday it took a “milestone” step towards overhauling its wasteful, state-owned water sector and preparing it for complete privatization within a decade. Water and Electricity Minister Abdullah al-Husayen signed two deals with international firms to audit water distribution in Riyadh, set the stage for joint private-public ventures and mapped out a strategy for full privatization of the sector.

“These are milestones in our endeavour to drastically change the landscape of the water and sewage treatment in the kingdom,” Husayen said after signing the contracts with French utilities company Veolia and consultants Booz Allen Hamilton.

Studies have estimated that up to 40 per cent of Riyadh’s water — pumped from costly desalination plants and rapidly diminishing underground aquifers — is lost through poor piping and other faults.

“To put this in perspective, if we conservatively assume that 20 per cent is wasted, we are wasting one million cubic metres a day in the kingdom,” Husayen said. “This has a huge price tag.”

As part of its 20 million riyal ($5 million) contract, Veolia will audit water distribution, metering and collection in the capital. Similar checks are planned for other Saudi cities.

“Hopefully at the end of their contract they will set the stage for the public-private partnership that we will carry out,” Husayen said.

Booz Allen Hamilton will draw up plans to transform the water industry through engaging private sector firms “...initially in a management lease programme, and in eight to 10 years a fully-fledged privatization”.

Saudi Arabia’s state-owned Saline Water Conversion Corporation (SWCC) which supplies desalinated water is already offering private firms a 60 per cent stake in new water and power plants and says it is also moving towards privatization.

Husayen said his ministry was already spending 300 million riyals this year to try to stem water distribution leaks and launched a nationwide water saving campaign targeting households across the country.

So far 1.8 million water saving kits have been delivered to houses and more have been sent to schools, mosques and other public institutions. The government is also reviewing tariffs for water, which is delivered at almost give-away prices.

“If we are successful in carrying out conservation in households and networks we will be saving something like 50 per cent of our supply,” Husayen said. “We are going seriously after the waste.”—Reuters