ZATCA, NCP Launch EOI for Water PPP at 10 Border Crossings

The Zakat, Tax and Customs Authority (ZATCA), in collaboration with the National Center for Privatization & PPP (NCP), has launched the Expression of Interest (EOI) phase for a major Public-Private-Partnership (PPP) project to develop water and sewage treatment plants at ten border crossings across Saudi Arabia. Announced on June 9, 2024, the project aims to enhance infrastructure at key entry points, supporting the Kingdom’s Vision 2030 goals of economic diversification and improved public services.

Context and Background

Saudi Arabia is undertaking a comprehensive transformation of its infrastructure to boost trade, tourism, and regional connectivity. Border crossings are vital gateways for pilgrims, tourists, and goods, and their modernization is essential for seamless movement and enhanced security. The PPP model allows the government to leverage private sector efficiency and innovation while retaining oversight. ZATCA, responsible for customs and tax administration, and NCP, which drives privatization efforts, are leading this initiative to ensure sustainable and high-quality public services.

Key Details

The project will be implemented at ten border crossings: Al Batha, Salwa, Al Khafji, Al Raqi, Jadidat Arar, Al Hadithah, Halat Ammar, Al Durrah, Al Wadiah, and the Empty Quarter. It will follow a Design-Build-Finance-Operate-Maintain-Transfer (DBFOMT) model with a 15-year contract, including construction. The scope covers design, construction, expansion, and refurbishment of plants and networks, as well as daily operations, maintenance, and ensuring alternative water supply during interruptions. Interested local and international investors are invited to review the EOI document on the NCP website and submit their proposals by June 30, 2024, at 3:00 pm KSA time.

Implications and Impact

This project will significantly improve sanitation and water services at border crossings, enhancing the experience for travelers and supporting trade flows. It aligns with Saudi Arabia’s efforts to attract private investment and improve public infrastructure. By involving international investors, the project fosters knowledge transfer and sets a precedent for future PPPs in other sectors. The modernization of border crossings is also crucial for handling increased traffic expected from major events and the growth of non-oil sectors.

Vision 2030 Alignment

This initiative directly supports Vision 2030 by promoting economic diversification, enhancing public-private partnerships, and improving the quality of life for citizens and visitors. It reflects the Kingdom’s commitment to sustainable development and world-class infrastructure, reinforcing its position as a global leader in innovation and investment.

20 Questions

Q1. What is the ZATCA and NCP project about?

A1. The project aims to develop water and sewage treatment plants at ten border crossings in Saudi Arabia through a Public-Private-Partnership (PPP) model, enhancing infrastructure and services.

Q2. Which border crossings are included in this project?

A2. The border crossings are Al Batha, Salwa, Al Khafji, Al Raqi, Jadidat Arar, Al Hadithah, Halat Ammar, Al Durrah, Al Wadiah, and the Empty Quarter.

Q3. What does DBFOMT stand for?

A3. DBFOMT stands for Design-Build-Finance-Operate-Maintain-Transfer, a model where the private partner handles all phases and then transfers the project back to the government.

Q4. How long is the contract duration?

A4. The contract duration is 15 years, including the construction period, during which the private partner will operate and maintain the facilities.

Q5. Who can submit an Expression of Interest?

A5. Local and international investors interested in the project are invited to submit an EOI by the deadline of June 30, 2024, at 3:00 pm KSA time.

Q6. Where can interested parties find the EOI document?

A6. The EOI document is available on the National Center for Privatization & PPP (NCP) website, where detailed requirements and submission guidelines are provided.

Q7. What is the role of ZATCA in this project?

A7. ZATCA, the Zakat, Tax and Customs Authority, is collaborating with NCP to launch and oversee the PPP project, leveraging its expertise in customs and border management.

Q8. What is the role of NCP?

A8. The National Center for Privatization & PPP (NCP) facilitates privatization and PPP initiatives, providing expertise and managing the tender process for this project.

Q9. Why are border crossings important for Saudi Arabia?

A9. Border crossings are vital for trade, tourism, and pilgrimage, serving as key entry points that require modern infrastructure to ensure efficient and secure movement of people and goods.

Q10. How does this project support Vision 2030?

A10. It supports Vision 2030 by promoting economic diversification, attracting private investment, and improving public services and infrastructure, aligning with the goals of enhanced quality of life.

Q11. What does the project include beyond construction?

A11. The project includes daily operations, maintenance, management of network operations, recording and reporting, provision of spare parts, and execution of lifecycle replacements and repairs.

Q12. What happens in case of interruption in water supply?

A12. The project ensures alternative water and sewage treatment supply in case of interruption, maintaining continuous service and minimizing disruptions.

Q13. Who will supervise the construction activities?

A13. The private partner selected through the tender will supervise construction activities, ensuring adherence to specifications and timelines.

Q14. What is the deadline for EOI submission?

A14. The deadline for submitting the Expression of Interest is June 30, 2024, at 3:00 pm KSA time, as announced by ZATCA and NCP.

Q15. What are the benefits of using a PPP model?

A15. The PPP model leverages private sector efficiency, innovation, and funding, while the government retains ownership and oversight, ensuring value for money and improved service delivery.

Q16. How will this project impact travelers?

A16. Travelers will benefit from improved sanitation facilities, cleaner environments, and more efficient border operations, enhancing their overall experience and reducing waiting times.

Q17. Will the project create job opportunities?

A17. Yes, the project is expected to create job opportunities in construction, operations, and maintenance, contributing to local employment and skills development.

Q18. What is the significance of the Empty Quarter crossing?

A18. The Empty Quarter crossing is a key gateway to the Rub’ al Khali desert, and its modernization supports tourism and trade in that region.

Q19. How does this project align with Saudi Arabia’s environmental goals?

A19. By implementing advanced sewage treatment, the project promotes environmental sustainability, aligning with Saudi Arabia’s efforts to protect natural resources and reduce pollution.

Q20. What are the next steps after EOI submission?

A20. After EOI submission, qualified investors will be invited to participate in the Request for Proposal (RFP) stage, leading to the selection of the private partner and financial close.

---