Decree

Arabic

The Council of Ministers,

after perusal of Royal Court File 17040 dated 8 Rabi Al-Awwal 1445 [23 September 2023] during its session held under the chairmanship of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al-Saud which includes the Minister of Human Resources and Social Development,  Chairman of the Preparatory Committee for Administrative Organization Telegram 32339 dated 1 Jumada Al-Awwal 1445 [16 September 2023],  regarding the request to convert the Saline Water Conversion Corporation to an authority named the Saudi Water Authority, and the approval of the draft organizational arrangements for the authority,

after perusal of the aforementioned draft organizational arrangements,

after perusal of the Law of the Saline Water Conversion Corporation issued by Royal Decree D/49 dated 20 Sha’ban 1394 [8 September 1974],

after perusal of the Water Law issued by Royal Decree D/159 dated 11 Dhu Al-Qa’dah 1441 [2 July 2020],

after perusal of Council of Ministers Decisions 710 dated 9 Dhu Al-Qa’dah 1441 [11 July 2020],  263 dated 14 Jumada Al-Awaal 1442 [29 December 2020],  616 dated 20 Shawwal 1442 [1 June 2021],  652 dated 22 Dhu Al-Qa’dah 1443 [22 June 2022],  and 826 dated 24 Dhu Al-Qa’dah 1444 [13 June 2023],

after perusal of Royal Order 48790 dated 24 Ramadan 1439 [8 June 2018],

after perusal of the Bureau of Experts at the Council of Ministers Memorandum 2391 dated 2 Rajab 1445 [13 January 2024],  Memorandum 3189 dated 3 Ramadan 1445 [13 March 2024],  and Memorandum 3525 dated 8 Shawwal 1445 [17 April 2024],

after perusal of the Council of Economic and Development Affairs Recommendation 1-30/45/I dated 20 Jumada Al-Thani 1445 [2 January 2024],

and after perusal of the General Committee of the Council of Ministers Recommendation 10959 dated 20 Shawwal 1445 [29 April 2024],

hereby decides

First

The conversion of “Saline Water Conversion Corporation” to an authority named “Saudi Water Authority” as the regulator of water services activities is hereby approved.

Second

The Organizational Arrangements of the Saudi Water Authority is hereby approved in the form attached.

Third

The organizational arrangements referred to in clause Second of this decision hereby replace the Law of the Saline Water Conversion Corporation issued by Royal Decree D/49 dated 20 Sha’ban 1394 [7 October 1974].

Fourth

1․ The name of the “Water and Electricity Regulatory Authority” is hereby amended to become the “Saudi Electricity Regulatory Authority” and its regulation issued by Council of Ministers Decision 263 of 14 Jumada Al-Awwal 1442 [29 December 2020] is hereby amended as follows:

(a) The phrase “water activity” from the definition of services provided in article 1 is hereby deleted.

(b) The definition of “water activity” provided in article 1 is hereby deleted.

(c) Paragraph 4 of article 4, relating to the allocation of water activity is hereby deleted.

(d) The phrase “electricity generation” hereby replaces the phrase “water and electricity production” in article 5(6)(a) and (c).

(e) The phrase “or water” provided in article 5(15) is hereby deleted.

2․ The Council of Ministers Decision 263 dated 14 Jumada Al-Awwal 1442 [29 December 2020] is hereby amended as follows:

(a) Paragraph 2 of clause Fourth is hereby repealed, and paragraph 3 of the same clause is hereby redrafted to read as follows:

“The Ministry of Finance continues to be a member of the board of directors of the authority until the completion of the restructuring and privatization of the electricity sector.”

(b) Paragraph 2 of clause Fifth is hereby repealed.

3․ The phrase “the Saudi Electricity Regulatory Authority” hereby replaces the phrase “the Water and Electricity Regulatory Authority”, and the phrase “the Board of Directors of the Saudi Electricity Regulatory Authority” hereby replaces the phrase “the Board of Directors of the Water and Electricity Regulatory Authority” wherever it occurs in laws, systems, orders, royal decrees, decisions, and regulations.

Fifth

The Saudi Water Authority hereby replaces the Saline Water Conversion Corporation in all the responsibilities, powers, rights, obligations, and the like of the corporation, and all the assets of the corporation of all kinds are hereby transferred to the authority, without prejudice to the provisions of Council of Ministers Decision 652 dated 22 Dhu Al-Qa’dah 1443 [22 June 2022] issued regarding the privatization of the Saline Water Conversion Corporation.

Sixth

The phrase “the Saudi Water Authority” hereby replaces the phrase “the Saline Water Conversion Corporation”, the phrase “the Chief Executive Officer of the Saudi Water Authority” hereby replaces the phrase “the Governor of the Saline Water Conversion Corporation”, and the phrase “the Board of Directors of the Saudi Water Authority” hereby replaces the phrase “the Board of Directors of the Saline Water Conversion Corporation” wherever it occurs in laws, systems, orders, royal decrees, decisions, and regulations.

Seventh

The Saudi Water Authority shall exercise the powers, competences, rights, and duties relating to the regulation of water services activities—with the exception of dual production activities—provided in the Water Law issued by Royal Decree D/159 dated 11 Dhu Al-Qa’dah 1441 [2 July 2020] and Council of Ministers Decision 710 dated 9 Dhu Al-Qa’dah 1441 [30 June 2020] issued in connection with its approval, without prejudice to the application of the provisions provided in Royal Order 48790 dated 24 Ramadan 1439 [8 June 2018] issued in connection with the Governance Guide for Amending the Prices of Energy and Water Products.

Eighth

The Saudi Water Authority shall establish a mechanism for coordination with the Ministry of Environment, Water, and Agriculture and the Saudi Electricity Regulatory Authority to implement the provisions of clause Seventh of this decision within a period not exceeding one year from the date of approval of this decision.

Ninth

The Board of Directors of the Saudi Water Authority shall exercise its powers stipulated in article 6(6) of the organizational arrangements—referred to in clause Second of this decision—in agreement with the Central Committee for Fees and Charges formed by Royal Court Telegram 83347 dated 2 Dhu Al-Hijah 1444 [21 June 2023], until the issuance and implementation of the Regulation on the Practice of Public Authorities and Establishments and Their Equivalent Imposing the Financial Remuneration for the Services and Works They Provide.

Tenth

The Saudi Water Authority shall take into account that, when its board of directors exercises its competence stipulated in article 6(17) of the organizational arrangements—referred to in clause Second of this decision—there is an approved budget for each project.

Eleventh

The board of directors of the current Saline Water Conversion Corporation—formed in accordance with article 4 of the Law of the Saline Water Conversion Corporation issued by Royal Decree D/49 dated 20 Sha’ban 1394 [8 September 1974], in whose regard the Council of Ministers Decision 826 dated 24 Dhu Al-Qa’dah 1444 [13 June 2023] is issued, shall exercise the powers and competences of the board of directors stipulated in article 6 of the organizational arrangements—referred to in clause Second of this decision—until the end of its term or until the formation of a new board of directors for the Saudi Water Authority in accordance with article 5 of the aforementioned organizational arrangements, whichever is earlier.

Twelfth

The Governor of the Saline Water Conversion Corporation—with effect from the date of entry into force of the organizational arrangements referred to in clause Second of this decision—continues to obtain his current job benefits and shall exercise the functions and competences of the Chief Executive Officer of the Saudi Water Authority provided in article 8 of the organizational arrangements, until the board of directors of the authority appoints a chief executive officer for the authority in accordance with the opening of article 8 of the organizational arrangements, or the lapse of four years from the date of approval of this decision, whichever is earlier.

Thirteenth

The financial and administrative regulations of the Saline Water Conversion Corporation continue to apply to the employees of the Saudi Water Authority, and the regulations and organizational decisions issued based on the Law of the Saline Water Conversion Corporation issued by Royal Decree D/49 dated 20 Sha’ban 1394 [8 September 1974] and the Water Law issued by Royal Decree D/159 dated 11 Dhu Al-Qa’dah 1441 [2 July 2020] continue to apply, until the Board of Directors of the Saudi Water Authority issues a replacement to them in accordance with its powers prescribed based on clause Seventh of this decision and the organizational arrangements referred to in clause Second of this decision.

Fourteenth

A committee in the Ministry of Environment, Water, and Agriculture must be formed with the membership of representatives from the Ministry of Finance, the Ministry of Human Resources and Social Development, and the Saudi Water Authority, to take the necessary action regarding the following:

1․ Transferring the employees and workers related to the regulation of water services activities and the vacant positions related to this—with the exception of dual production activities—in the Regulatory Affairs Agency in the Ministry of Environment, Water, and Agriculture (Water Regulator), to the Saudi Water Authority, in accordance with the rules and arrangements relating to the mechanism for the treatment of employees and workers in the sectors targeted for conversion and privatization, issued by Council of Ministers Decision 616 dated 20 Shawwal 1442 [1 June 2021].

2․ Transferring property, documents, contracts, financial allocations, and initiatives relating to the regulation of water services activities—with the exception of dual production activities—from the Regulatory Affairs Agency in the Ministry of Environment, Water, and Agriculture (Water Regulator) to the Saudi Water Authority.

This must be within a period not exceeding sixty days from the date of approval of this decision, and reports on matters that require reporting must be submitted.

Fifteenth

The placement of employees and workers in the Saudi Water Authority must be based on the administrative regulation referred to in article 6(5) of the organizational arrangements—referred to in clause Second of this decision—in accordance with the rules and arrangements relating to the mechanism for the treatment of employees and workers in the sectors targeted for conversion and privatization, issued by Council of Ministers Decision 616 dated 20 Shawwal 1442 [1 June 2021].

Sixteenth

The Ministry of Environment, Water, and Agriculture shall, when preparing the report on the structure and organizational guide of the ministry, in whose regard Royal Court Telegram 39678 dated 26 Jumada Al-Thani 1441 [21 February 2020] is issued, take into account the provision of clause Seventh of this decision.

Seventeenth

The Saudi Water Authority shall carry out the following:

1․ Prepare a draft system for it in light of the organizational arrangements—referred to in clause Second of this decision—and the matters stated in this decision, and those that may appear to it in this regard, and submit it to complete the necessary legal procedures in this regard, within twelve months from the date of entry into force of the aforementioned organizational arrangements.

2․ Continue to review the laws, systems, orders, royal decrees, and decisions that have been affected by the provisions of this decision, in coordination with the Ministry of Environment, Water, and Agriculture, the Ministry of Energy, and the Saudi Electricity Regulatory Authority. If it finds the need to amend any of its provisions—which directly or indirectly relate to its work—it shall submit matters it deems necessary in this regard, in preparation for completing the necessary.

Salman bin Abdulaziz Al-Saud

Issued on: 28 Shawwal 1445
Corresponding to: 7 May 2024

Published in Umm Al-Qura 5032 issued on 17 May 2024.

Arabic Auto Translate

Issued on: 28 Shawwal 1445
Corresponding to: 7 May 2024

Published in Umm Al-Qura 5032 issued on 17 May 2024.