Transcript Jeddah - شركة المياه الوطنية

Opportunities in New Cities
&
Capital Delivery Program
PRESENTATION IN SWPF 2011, NWC FORUM (FOCUS DAY)
7TH DECEMBER 2011- JEDDAH HILTON, JEDDAH
Saud Rifki
Senior Manager, Privatization
INTRODUCTION
National Water Company
Formation, Role & PPP Implementation
January 2008 -Formation
of
National
Water
Company (NWC) thro’
Royal Decree
Joint Stock Company with
an authorized capital of SR
22 billion (US $ 6 billion)
ATTRACT
Responsible for water and
wastewater services in the
urban areas of the
kingdom
INT’L
INVESTORS
June 2008 – Began formal
functioning taking over W
& WW services in Riyadh
and Jeddah
&
OPERATORS
Water & Wastewater
assets of the city being
taken over transferred to
NWC
PPP Management Contracts
July 2008 – Riyadh
Sep 2008 – Jeddah
Jan 2011 – Makkah - Taif
Objectives of Privatization
(PPP)
Bring International Best
Practices
World Class Customer Services
Improved Operating Efficiency
Reduced Operational Costs
Enabling Environment for
Private Sector &
International Investor /
Operator Participation
Efficient Management of CAPEX & OPEX
Build Commercially Viable Organization
Incentive to early increase of
capital expenditure to
reduce O&M costs
Expedient construction of water and
wastewater infrastructure
CITIES WITH NWC
The Cities & PPP Contracts
(1/2)
Riyadh – From July 2008
Veolia Water Saudi (French)
6 years (Management
Contract)
Jeddah – From Sep 2008
Suez Env + ACWA Power
(French Saudi Consortium)
7 years (Management Contract)
Makkah / Taif – From Jan 2011
Saur Int’l + Zamil O&M
(French Saudi Consortium)
5 years (Management Contract)
Next in line – Madinah, Dammam / Khobar
PPP Model – To be on O&M Joint Venture Unit – Plans under study for
transition and implementation
6
The Cities & PPP Contracts
(2/2)
Objectives of Management Contracts
Improve operational efficiency for instant reduction in water leakage, continuity of
water supply, improved revenue collection, billing & metering, training, customer
services, coverage, etc
Major Scope of Management Contracts
 Water production, treatment , distribution and wastewater services
 NRW reduction
 Customer Services
 Training Program for employees
 Implementation of IT systems
Performance Standards and incentive KPIs
Target Performance Standards
 Incentive KPIs
7
Future Plans for other cities
Population
(Million)
*% of KSA
population
Avg. Daily potable
water supply
(M3/day)
Riyadh
5.18
19.11
1,750,000
Jeddah
3.43
12.66
870,000
Makkah
1.40
5.17
500,000
Taif
0.8
2.95
190,000
Sub-total
10.81
39.89
3,310,000
Greater Dammam
(Dammam & Al-Khobar)
1.36
5.01
530,000
To be on O&M Joint Venture
within the next two years
Madinah
1.1
4.06
280,000
To be on O&M Joint Venture
within the next two years
Buraida & Onaizah
0.61
2.25
190,000
Khamis Mushayat & Abha
0.66
2.44
67,000
Tabuk
0.51
1.88
80,000
Jubail, Al-Hafuf & Al-Mobarraz
0.90
3.32
255,000
Yanbu
0.24
0.89
68,000
Grand Total (16 cities)
16.19
59.75
4,780,000
City
Status
Management Contracts in
progress from 2008
Management Contract in
progress from January 2011
Under Study
for scheduling
8
*Total KSA population: 27.13 Million
Achievements in Three Years of PPP
Operations (1/2)
Customer satisfaction index
Complaint resolution
1%
Hours
37%
%
96
100
-50%
80
100
85%
84%
85%
80
60
48
40
0%
24
60
24
20
45%
40
20
0
0
2008
2009
2011
2010
2008
Number of new wastewater connections per year
#
40,000
RIYADH
35%
5%
- 49%
30,000
20,000
- 35%
10,000
2008
2009
2010
2011
2011
2010
Average time to install connection
Days
84%
2009
* 2008
2009
2010
2011
JEDDAH
Achievements in Three Years of PPP
Operations (2/2)
Service continuity
Riyadh
100%
%
55% 55%
43%
34%
31%
22%
32%
N/A
2009
Volume of water saved due to leak reduction
21%
‘000 m3
134%
80,000
65,000
53,915
60,000
40,000
20,000
23,018
7,251
0
2008
2009
2010
2011
2010
2011
Jaddah
FUTURE PPP MODEL
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Realizing our vision by switching gear
towards a Business Operating Model
Corporate Module evolution . Holding Company with a successful portfolio of
BU’s/ JVS
Current Operating Model
Potential Future Operating Model
Design of the
Corporate Center
(incl. how it both
serves and creates
productive structural
tension with BUs)
Corporate
Core / CEO
Contractual
Relationship
Operationally
Involved
Corporate
Core / CEO
Corporate
Policy
Strategic
Guidance
Results/
Accountability
Management
Contracts
Shadow
Management
City Business
Units (CBUs)
Business Units
(BU)
Request
Service
(SLAs)
Define business unit
boundaries and interrelationships
Service
Enterprise /
Enabling
Functions
Design of
enterprise /
enabling functions
Four clusters will be formed
Proposed
O&M services contract clustering
# of contracts/ annual value (SAR mil)/ Thousands of inhabitants
Northwest
86
15
3
4
4
3
20
Contracts
Value
9
2
32
4
1,745
Jubail
Population
served
Potential to combine into
single cluster if West (north)
SPV partner is the same
partner as West (south)
Madinah
Yanbu
Riyadh
5,905
Makkah
Contracts
26
1
13
1 Population base year is 2009
Abha/
KhamisMushayat
121
82
Value
Population
served
Population
served
Al-Hofuf & AlMubarraz
4,583
Central
6
1
4
Taif
74
9
Contracts
Value
Dammam/
Al Khobar
Jeddah
202
2,639
62
672
493
Southwest
Buraida/
Onaizah
East
22 13
Tabuk
22 3
153
35
21
1
627
11
Contracts Value
Population
served
Map legend
NWC captive city
Captive in 2012
Captive planned after 2012
BUSINESS OPPORTUNITIES
Consultancy &
Technical
Studies
Technical Due
Diligence
O&M Joint Venture
Partners / Investors
Water & WW Operations
Capital Program Management
ICT – Implementation of Technology Solutions
Infrastructure Development
-Water Distribution Networks & House Connections
-Wastewater Collection Networks
- Wastewater Treatment Plants
CAPITAL DELIVERY - HIGHLIGHTS
Current Water Services Situation with
NWC
CITY
AREA
(KM2)
POPULATION
(Million)
EXISTING
NETWORK (KM)
HOUSE
CONNECTIONS (No.)
W
WW
W
WW
AVERAGE
WATER
SUPPLY
(M3 / Day)
RIYADH
1750
4.6
10,700
4,950
373,000
235,000
1,750,000
JEDDAH
984
3.1
5,500
1,700
172,000
72,000
870,000
MAKKAH
360
1.4
3,500
1,800
78,000
59,000
500,000
TAIF
188
0.8
915
740
45,000
35,000
190,000
CAPEX & OPEX REQUIREMENTS
FOR 2012 – 2020 (KSA)
Combined Water & Wastewater
TOTAL = 249 Billion SAR
112
137
OPEX
CAPEX
Requirements for Wastewater
TOTAL = 133.9 Billion SAR
Requirements for Water
TOTAL = 115.1 Billion SAR
44.8
47.9
67.2
OPEX
CAPEX
89.1
OPEX
CAPEX
18
Budget Estimates for 2012
City Business Units
Estimates for 2012 (Billion SR)
Area
Riyadh
Jeddah
Makkah
Taif
Total
Water & Wastewater
(Enabling Projects & CSC)
0.46
0.22
0.15
0.10
0.93
Water Networks
0.71
0.15
0.48
0.32
1.66
Water Plants
2.1
0.49
--
--
2.59
Wastewater Networks
2.12
5.13
1.06
0.51
8.82
Wastewater Treatment
Plants
0.5
0.67
0.02
0.31
1.5
Total
5.89
6.66
1.71
1.24
15.5
63
16
No. of projects
44
123
Achievement Highlights of 2011
2011
Projected KPI Results
Capital delivery Improvement and Project Acceleration
Number of projects behind schedule
120
104
100
80
61
60
40
29
20
19
0
2008
2009
2010
2011 (Sep)
20
Launching one of the biggest Sewage Infrastructure Project worth
more than SR 8 Billion in JEDDAH
2011
Highlights of Major Accomplishments/ Success Stories
• Project completion reduced from 5 to 3
years.
•Massive connections with 120,000 houses
in 2 phases
•Coverage increase from 22% to 72%.
• A total of 2,500 kilometers of pipelines,
mainlines, tunnels, etc.
• Opening of (4) WWTP with combined
capacities of 450,000 m³ /day, plus Al
Khumrah 4 capacity of 360,000 m³/day
brings the total treatment capacity for
Jeddah to 1,000,000 m³/day
• The biggest Lift Station in the region with
capacities topping 1,000,000 m³/day and a
depth of 80 meters.
21
NWC ventures into Renewable Energy for 2 new WWTP
2011
Highlights of Major Accomplishments/ Success Stories
• Living up to its strategy in the sustainable
management of the environment, NWC had
started construction of the 1st WWTP equipped
with “combined heat & power generation” – Al
Kharj WWTP to serve Riyadh w/ 200,000 m³/day
capacity and generation capacity of 2.5
megawatt
• Bidding process for another heat-to-power
WWTP in Jeddah Airport 2 has commenced
which will, after completion, be the 2nd biggest
plant in its kind in the Middle East with a
generation capacity of 7 megawatt and
treatment capacity of 500,000 m³/day.
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THANK YOU