Alkhorayef Water awarded SAR 108.5m project contract

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Riyadh – Mubasher: Alkhorayef Water and Power Technologies Company has finalized a contract with the Municipality of Jeddah for the operation and maintenance of stormwater and surface water drainage networks.

The agreement, valued at SAR 108.50 million excluding Value Added Tax (VAT), covers critical infrastructure within the South and Al-Malisa sub-municipalities.

This five-year project is expected to begin impacting the company’s financial performance starting from the second quarter of 2026, marking a significant addition to the firm’s long-term utility service portfolio in the Western Region.

The disclosure, released via the Saudi Exchange (Tadawul), outlines the formalization of a project aimed at ensuring the operational efficiency and cleanliness of water management systems in specific districts of Jeddah.

Under the terms of the agreement, Alkhorayef Water and Power Technologies will be responsible for the comprehensive cleaning and maintenance of stormwater and surface water networks in the South (SO) and Al-Malisa (ML) sub-municipalities.

The timeline for the project follows a structured administrative process. The initial award for the contract was announced on 23 February 2026. This was followed by the formal signing of the contract on 7 May. The company confirmed that it received the final executed copy of the contract, bearing all necessary signatures from the relevant parties, on 18 June  2026.

The contract is scheduled to span a duration of 60 months, or five years. This long-term engagement ensures a steady revenue stream for the company while providing the Jeddah Municipality with specialized technical expertise in urban water management.

The scope of work is focused on the "operation and cleaning" aspect of the infrastructure, which is a critical component of urban flood prevention and surface water control, particularly in high-density sub-municipalities.

Alkhorayef Water and Power Technologies has clarified that the fiscal impact of this project will begin to be recognized in its financial statements during the second quarter (Q2) of 2026. This alignment between the contract signing and the revenue recognition reflects the anticipated mobilization and commencement of site operations.

In accordance with regulatory transparency requirements, the company stated that there are no related parties involved in this transaction. This confirms that the contract was awarded through standard procurement procedures with the Jeddah Municipality, independent of any internal conflicts of interest or affiliated board member influences.

Source: Mubasher Source: {{details.article.source}}