Mizuho Bank, Ltd. (President & CEO: Koji Fujiwara) signed an advisory service agreement in February 2018 with the National Water Company (NWC) of the Kingdom of Saudi Arabia, concerning the privatization of water services.
The NWC is a state–owned water utility company engaged in water supply and wastewater treatment in Saudi Arabia. In the recent years, Saudi Arabia has been promoting industrial diversification as well as privatization in line with Saudi Vision 2030. It thereby seeks to become less economically dependent on fossil fuel and other mineral resources. In the water sector, stable operation of water treatment facilities has become an urgent issue due to the rapidly growing population, which has become prominent especially in the urban areas. The NWC is seeking to address this issue through privatization, which is expected to bring about cost reduction and improved management.
The project will use the concession scheme in order to achieve the complete privatization of the water supply services, which will be split into six regional companies. It is expected to serve as a model case for pursuing privatization throughout Saudi Arabia.
Based on the agreement, Mizuho will provide the NWC with insights and knowhow on public–private partnership, industrial development, finance, and other areas in considering the best model for privatization. In addition to being a financial advisor, Mizuho will act as a lead advisor and work with legal advisors and technical advisors in providing advisory services for the privatization project in each of the six regions.
Mizuho has already signed an advisory service agreement with the NWC in July 2017 concerning the privatization of wastewater treatment facilities. The latest agreement will enable Mizuho to cover both wastewater treatment and water supply, which are the main businesses of the NWC.
Mizuho is the first Japanese bank to have established an office in Saudi Arabia. Since the opening of Mizuho Saudi Arabia Company in November 2009, it has provided full financial services, including advisory business, in the country. It will continue to provide enhanced services to the clients, including Japanese and other companies entering the Middle Eastern market, and thereby contribute to the greater prosperity of both Saudi Arabia and Japan.