Alkhorayef Water and Power Technologies Company has signed a 15-year operation and maintenance (O&M) contract with state-run National Water Company (NWC) for sewage treatment plants (STPs) in Al Ahsa region.

The contract for the sewage treatment plant (package 7) is valued at 1.7 billion Saudi riyals ($453.25 million), the company said in a statement to the Saudi stock exchange on Tuesday.

Alkhorayef Water will handle the design, rehabilitation, testing, commissioning, operation, maintenance and handover of three existing plants - Al Hafuf STP 1, Al Oyun STP and Al Omran STP - and a new sewage treatment plant - Al Hafuf STP 2.

The rehabilitation work will be completed in two phases within 36 months from the contract date.

The total design treatment capacity will increase to 472,000 cubic metres per day (m3/day) from 457,500 m3/day, the statement said.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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