Analysis

National Water Company's Seven-Year Cluster Contracts Run to About 2029 as Concessions Are Prepared

National Water Company's five seven-year cluster contracts, signed 2021–2022, run to about 2028–2029, while non-revenue water stood at 35% against a 27% target.

National Water Company's regional operating contracts, including the SAR 365 million Western cluster contract signed in September 2022, run for seven years each, which takes the five with published terms to about 2028–2029. The company is already preparing what comes next: concessions that would hand private operators capital spending as well as operations.

Who runs the clusters

Alkhorayef and Veolia operate the Central cluster around Riyadh, and Miahona, Saur and Manila Water the Eastern cluster; those two contracts were worth US$154 million combined. Aqualia, Acciona, Tawzea and HAACO run the Southern cluster under a US$106 million contract. The Western cluster contract went to Al Awael Modern Contracting and SUEZ, and the Northern cluster, SAR 349 million, to Tawzea, Aqualia and HAACO.

Measured on losses

Each consortium is measured against 14 key performance indicators, including water loss reduction and network management. The gap is large: the company reported non-revenue water of 35% in February 2026, against a strategic target of 27%, and average supply of 20.45 hours a day.

The concession step

The contracts allow an earlier move to concessions if targets are met after the third year. The company's plan has three stages: a conceptual framework and cluster readiness assessment, pre-tender documents, then a tender for each concession. It planned for the selected adviser consortium to start in the third quarter of 2026.

Construction stays with the company

Network and plant construction continues to be let directly. The company reported 568 projects worth SAR 49 billion under construction in 2025.

Where suppliers should focus first, which treatment packages and plants are open, and what to watch through 2027 are set out in the full brief. The full report, National Water Company: Utility Account Brief, is available for USD 499. For a free overview, read the National Water Company Utility Snapshot.

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