The desert kingdom of Saudi Arabia said on Saturday it took a "milestone" step towards overhauling its wasteful, state-owned water sector and preparing it for complete privatisation 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 privatisation 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 percent 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 percent 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.
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