Saudi Arabia suspends privatization of water desalination and electricity generation plant | latest news

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Saudi Arabia has halted the privatization of a desalination plant and electric power in Ras al-Khair, one of the state-owned assets the government aims to sell to reduce pressure on capital spending and diversify revenues away from oil.

The Supervisory Committee for the Privatization of the Environment, Water and Agriculture Sector said that this decision was taken “with the desire to adapt with the directions of the state in investing the current gains, the accumulated experiences and the existing desalination assets with modern technologies.”

“Preparations are currently underway to announce new directions and ambitions soon,” the committee added in a statement Monday, July 26, on the website of the National Center for Privatization.

And she stressed, “it will continue to offer new projects and opportunities in the environment, water and agriculture sector within the system of privatization and partnership between the public and private sectors.”

In January, the Corporation said that seven companies and consortia were invited to submit bids for the plant, and the winner is expected to own 60% of the project company, and manage, operate and maintain it.

Desalination is expensive and consumes a lot of energy, but it is relied upon in hot climates where water is scarce, such as Saudi Arabia and the neighboring Gulf states.





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