Wastewater in the GCC From Capacity Build-Out to Value Extraction

por | Jul 6, 2026 | Perspectivas del sector

Pratik Sharma, Director at Synergy Consulting, Inc., shares insights on Wastewater in the GCC: From Capacity Build-Out to Value Extraction.

The Gulf Cooperation Council (GCC) wastewater sector is entering a new phase — and Saudi Arabia’s Long Term Operation & Maintenance (LTOM) program is redefining what large-scale brownfield PPPs can look like.

For the last decade, the region’s focus has been primarily on building new wastewater capacity through greenfield PPPs and Independent Sewage Treatment Plants (ISTPs). However, the market is now evolving from capacity creation to value extraction.

Saudi Arabia’s LTOM program by NWC is a strong example of this shift. With Phase 1 of the LTOM program successfully concluded, NWC is now progressing with Phase 2 of the program, with multiple Sewage Treatment Plants (STPs) being bundled into long-term, performance-based contracts combining O&M, rehabilitation, and lifecycle optimization. What makes the GCC particularly interesting is that each market is approaching this transition differently — UAE markets continue evolving hybrid PPP structures, Qatar remains focused on KPI-driven O&M frameworks, while Oman continues adopting asset-focused PPP models with selective private participation.

Globally, the same transition is already well underway. In Europe, mature concession models led by operators such as Veolia and Suez have demonstrated how long-term private sector participation can optimize lifecycle performance of existing utility assets over 15–25 year periods. In Latin America, Brazil’s sanitation reforms have triggered multi-billion-dollar regional concessions focused on rehabilitation and operational improvements rather than only new construction. Across Asia, markets such as India and Vietnam are increasingly adopting hybrid PPP and performance-based O&M structures to improve operational accountability post-construction. Meanwhile, several African markets continue relying on lease and management contracts aimed at improving efficiency and service delivery while governments retain ownership of core infrastructure.

The common theme is clear: the challenge is no longer just building infrastructure — it is operating existing systems efficiently over their lifecycle.

The bigger question now is whether procurement models, regulation, and concession frameworks can evolve quickly enough to unlock the next layer of value embedded in existing assets. Because the next decade in wastewater infrastructure may not be defined by how much we build — but by how effectively we operate what already exists.