Indian water technology firm VA Tech Wabag (WABAG) has secured a $371 million engineering, procurement, and construction (EPC) contract for the Al Haer Independent Sewage Treatment Plant (ISTP) in Saudi Arabia’s Riyadh province, the company announced on Monday.

The contract was awarded to a consortium led by WABAG and Saudi-based Mutlaq Al-Ghowairi Contracting Company (MGC), marking a significant expansion of WABAG’s footprint in the Middle East’s water infrastructure sector.

The 200,000 cubic metres per day (m³/day) ISTP project, backed by Saudi-listed utility Miahona, along with Besix and Power and Water Utility Co. for Jubail and Yanbu (Marafiq), had previously reached financial close on Sunday, securing funding worth 1.5 billion Saudi riyals ($399.93 million).

As the technology partner and leader of the EPC consortium, WABAG will oversee the design and construction of the sewage treatment plant, while MGC will handle pipeline installation and reservoir construction. The project also includes Treated Sewage Effluent (TSE) infrastructure, featuring a 32 km-long transmission system with a capacity of 400,000 m³/day, a pumping station, and storage tanks for 200,000 m³ of treated water.

The Al Haer ISTP is expected to be operational by Q4 2026 as part of Saudi Arabia’s broader push to enhance water sustainability and wastewater management.

The award comes just months after WABAG reported the cancellation of a $317 million EPC contract in December 2023 for a 300,000 m³/day seawater desalination plant in Saudi Arabia.

Despite that setback, the company has continued to expand its regional portfolio, including a $34 million Engineering and Procurement (EP) order for a 20,000 m³/day industrial wastewater treatment plant at the Ras Tanura Refinery Complex.

Saudi Arabia, one of the world’s most water-scarce countries, is accelerating investments in water infrastructure to meet rising demand and reduce reliance on desalination.