INTRODUCTION

I would like to take this opportunity to thank the Saudi Arabian Water Environment Association (SAWEA) and the Water Environment Federation (WEF) for co-organizing the 5th Water Arabia Conference & Exhibition that Reviews Sustaining Water Resources Through Innovative And Reliable Water And Wastewater Treatment Technologies

1 SWCC OVERVIEW

Desalinated Power Water Plants Storage Water Generation Transmission

7,175 KM 4.7 7,305 Total Length 29 285 MCM/Day MW Plants No. of Storage Tanks Total Installed Capacity Total Installed Capacity 21 Transmission Systems 62% 12% 17 With Capacity of Desalinated of Production Different Locations 12.7 water in the Capacity in the 56 MCM/Day Kingdom Kingdom Pumping Station 12 Mixing Station

2 MAIN CHALLENGES FACING WATER SECTOR IN

. Limited natural water resources. . Elevated per-capita consumption, . Rapid increase in population and unsustainable growth in water demand. . High costs of water coupled with low tariffs making the sector unsustainable. . Limited private sector participation in the kingdom’s water sector. . Substantial investments required in the near future for new capacity to offset planned decommissioning of existing desalination plants.

3 CURRENT MUNICIPAL WATER MANAGEMENT

Legislation and Policy MEWA

Value Chain Water Transmission Distribution Sewage Sewage TSE Distribution Production Collection Treatment

Regulator

Desalinated Water , , Makkah, and Taif

Management contracts with operators Operator IW(P)Ps MEWA

SWCC Ground/ Surface Rest of the Water Kingdom

MEWA

The sector is committed to significantly enhancing the level of private sector engagement to help achieve Vision 2030 and NTP objectives.

4 5

WATER PRODUCTION BY RESOURCE (M3/DAY)

Water Capacity Production (m3/day) 12,000,000 10,000,074 10,000,000

8,000,000 6,464,293 2.0% 6,000,000

4,000,000 3,340,549

2,000,000 33.4% 195,232 0 Desalination Ground Water Surface Water Total Plants Production 64.6% Desalination Plants Ground Water Surface Water Total Production

Desalination Plants Ground Water Surface Water

5 DESALINATED WATER IN SAUDI ARABIA

DESALINATED WATER IN KSA

8 % 28% 64 %

18% 43%

SWCC Private Sector Other

6 VISION 2030- WATER SECTOR OBJECTIVES

Key Objectives for the Water Sector Initiative Examples

• Promoting sustainable water supply Increasing the capacity of strategic water sources and improving service coverage. storage. • Reducing excessive water consumption. Increase the proportion of desalinated • Achieving customer satisfaction by water produced by private operators. providing high quality service and Reduce the waste of the water network. reducing waste. Expand the role of the water regulator. • Reduce the sector dependence on state Attracting private sector participation funding by taking steps toward across the water sector. privatization. Increase digital content to improve • Improving financial and operational customer services. efficiency. Reduce water service time

7 National Transformation Program (NTP) - Vision 2020 Initiatives

National Transformation Program (NTP) - Vision 2020 Initiatives

1) Strengthen Desalination Ensure sustained water resources to all KSA residents and Water Resources . visitors

2) Increase SWCC Local Elevate KSA’s capabilities & entrepreneurship in local Content. manufacturing

Implement Privatization Strategy of SWCC & Enhance the 3) SWCC Privatization. Operating Model

4) Enhance SWCC Ensure water safety & availability through enhancement of Performance Effectiveness SWCC water production & cost reduction

8 SWCC currently has 17 desalination sites dispersed around the Kingdom with installed capacity of ~4.7 Mn m3/day SWCC currently has 17 desalination sites dispersed around the Kingdom with installed capacity of ~4.7 Mn m3/day

Key Insights Current and Planned1) Desalination Plants 2) (2017) Other 3 Current 106 11 . SWCC currently has 4.7 Mn m and Planned 72 Installed Water Capacity (1000 m3/day) 7,300 MW of installed water and Installed Power Capacity (MW) electricity capacity respectively Haql . Production plant portfolio consists of Hafr Albatin several technologies: Duba Ras Alkhair 1051 2650 − MSF: 3.6 Mn m3 / day – 78%

AlWajih 1177 1589 3 Alnoairya − RO: 0.9 Mn m / day – 20% Umluj Al-Madina 503 1150 − MED: 0.1 Mn m3 / day – 2% 441 521 Al-Hafoof . The largest 5 plants make up ~90% of 550 3050 Riyadh Rabigh the existing water capacity

Alazizia Makkah . Yanbu 3, Shuaiba 4 and five satellite 575 473 Taif Jeddah plants are under construction or under Shuaiba contracting and will add ~1 Mn m3 / 678 785 AL-Lith Albaha day of installed water capacity 491 AL-Qunfutha K.Moshait 97 108 Shuqaiq Farasan Jazan 1) Shown capacities include capacities planned up to 2020 2) Other includes Satellite, Khafji, Rabigh, and Al Akir plants Desalination plant Source: SWCC, Booz Allen Analysis Co-generation plant Current Under Construction/Contract

9 STRONG DEMAND GROWTH CONTINUES TO PLACE STRESS ON SWCC’S PORTFOLIO OF ASSETS PRESENTING SIGNIFICANT PPP OPPORTUNITIES

Water Production vs. Capacity 3 (2013-2017, Mn. m /day) Key Opportunities Production Capacity +7% . Significant investment needed to meet growing 4.6 4.6 4.7 demand 4.5 . Demographic dividend with rising per capita incomes 3.8 3.6 3.6 3.5 . Positive fundamentals as the economy diversifies 3.1 . Pro-market reforms as part of the NTP and Vision 2030 2.9 . Actively seeking long term strategic partnerships

SWCC’s Operational Excellence Program

. SWCC has embarked on an aggressive program to Operational Excellence Initiatives : − Full environmental Compliances. − Improve Process Safety & Reliability . 2013 2014 2015 2016 2017 Planned − Reduce fuel & Energy consumption . Availability 89% 89% 88% 86% 96% − Improve Desalination plants efficiency.

Capacity − Maximize the Production. Factor 82% 87% 76% 82% 95% − Reduce the Cost SR/M3

*Recorded in April 2017

10 OPERATIONAL EXCELLENCE

Workstream Objectives

• Diagnose existing process and employee Safety core practices maturity both at corporate level and within each of the four site within scope, by focusing on PROCESS & • Adopt a risk-based approach focusing on key risks areas; in particular, selecting sample areas as well as selected EMPLOYEE critical elements of the SMS based on experience in similar facilities. SAFETY • Through a targeted review of core safety risks at both corporate and site level, help leadership team appreciate key risks areas and priorities to define a roadmap to develop mitigation plans and reduce overall operational risk

• Diagnose and define realistic asset efficiency target by focusing on Water pumps and transmission systems, Steam boilers, steam Turbine and MSF, RO and MED desalinization process optimization with the objective to ASSET • Reduce the operational expenditure induced by those assets by 20%, covering such as energy and power EFFICENCY consumption, operational and maintenance costs, chemical costs, fuel cost. • Identify opportunities to Improve capacity factor of Desalination plant up to 93% and capacity factor of power Generation up to 90%, and plant availability up to 97% and reduce the energy consumption by 10%

• Identify opportunities to Optimize the overall expenditures related to fix and variable Maintenance activities to improve asset availability up to 97% from reducing core assets downtime, by focusing on the following MAINTENANCE & • Maintenance & Reliability Organization structure, staffing and supervisory skillsets , Work Management Process RELIABILITY (Planning, Scheduling, Work order management) , Material and spares management ,Reliability strategies, criticality ranking, preventive maintenance, task management, lubrication, problem elimination , Material Management, warehouse and inventory, kitting, Information management (CMMS, equipment data, parts data, technical documentation, • Diagnose existing Capital Efficiency to corporate level and Yanbu Sample and contractor management core practices and define realistic improvement efficiency target, by focusing on the following core dimensions: CAPEX • Capital project / investment program effectiveness during business planning, front-end loading, design and & construction, Contractor Management, namely contract performance, interface management, consumption patterns CONTRACTOR analysis and contractor performance evaluation • Identify opportunities to Optimize overall contractor Spend , Optimize capital expenditure for minor Capex MGT investments, and Optimize long term balance between capital expenditure and operational expenditure

CULTURE & • Evaluate the overall corporate culture on each of the different sites and within core corporate functions by focusing on selected leadership team members thorough profiling and coaching, leveraging established practices around felt PERF. MGT leadership models.

11 Planned Desalination Projects – IW(P)Ps (Up to 2025)

PLANNED DESALINATION PROJECTS – IW(P)PS (UP TO 2025)

Yanbu (4) Jubail 450,000 1,170,000 3,000

Rabigh (3) 600,000- 1,200,000 Shuqaiq (3) m3/day 380,000 MW

12 Planned Water Transmission Projects – IW(P)Ps (Up to 2025)

PLANNED TRANSMISSION SYSTEMS (UP TO 2025)

Rabigh – Jeddah - - Taif 600,000

Yanbu (4) - Jubail (3) - Riaydh 900,000 1,000,000

Jeddah (4) - Briman Jubail (3) – 400,000 Eastern Province 600,000

Taif – Turba – Ranyah - AlKhurma Shuqaiq (3) 80,000 760,000

m3/day

13 14 SWCC R&D

(Partners of Success) SWCC adopting R&D in these Innovative Desalination Technologies :

• Forward Osmosis. • Mega-ton. • Adsorption.

14 • Try-hybride (NF – RO – MED). 93 • Dia-hybride (NF – RO). 45

263 7 approved patents in the last ten years from different 91 countries

203 1

14 15 Summary

Desalination is a strategic industry for the kingdom of Saudi Arabia.

Saudi Arabia represents a substantial percentage of the global desalination capacity.

Having the largest global desalination capacity for a long time, SWCC has served over the years to pioneer and push the envelop of desalination technology, engineering, reliability and operation excellence.

Accelerate the development and implementation of new desalination technologies.

We aspire to achieve our strategic objectives by forming alliances with global desalination leaders.

Opportunity for technology partnership in the Desalination industry.

15 Thank You