(Yicai) Jan. 9 -- A consortium led by United Water Technology, a private Chinese water supplier and wastewater treatment service provider, has won the bid for a municipal wastewater treatment project in northern Saudi Arabia.

The contract involves equipment upgrades and long-term operation and maintenance of nine local wastewater treatment plants for 15 years, installation of new sludge drying equipment, and ensuring that the effluent, sludge, and environmental monitoring indicators meet the Saudi national standards, the Jiangsu province-based firm announced yesterday.

The nine plants are located in four provinces in northern Saudi Arabia: Qassim, Hail, Northern Borders, and Al Jourf. Once the upgrades are completed, the project's total daily wastewater treatment capacity will reach 337,800 cubic meters.

The project, initiated by Saudi Arabia's National Water Company, has a total investment of about SAR203 million (USD54.1 million), United Water said.

NWC will provide a reasonable return on investment to the consortium based on the fixed asset investment and operating costs of the project, the actual wastewater treatment volume and water quality data from the plants, and additional compensation for unexpected situations, United Water noted, without revealing the revenue amount it is projected to receive for the contract.

As the lead of the consortium, United Water will be responsible for the project's surveying, design, operations, and a portion of the facility upgrade construction. Saudi Arabia's Armada Holding will handle construction, equipment import customs clearance, and local business communications, and Prosus Energy, registered in the United Arab Emirates, will serve as the financial investor.

United Water did not provide any details regarding the investment proportions and profit distribution model between the three consortium parties.

The project is part of Saudi Arabia's National Water Strategy 2030, aligned with the Vision 2030 strategic framework, which aims at addressing the severe shortage of local wastewater treatment capacity that threatens ecological balance and harms the well-being of the population.

The winning and implementation of this contract will help United Water successfully enter the Middle Eastern water service market, laying a solid foundation for continued expansion into South Asia, Southeast Asia, and the Middle East, the firm pointed out.

Shares of United Water [SHA: 603291] were trading up 1.1 percent at CNY10.75 (USD1.53) apiece as of 1.55 p.m. in Shanghai today.

Editor: Futura Costaglione