The following words and phrases - wherever they appear in these organizational arrangements - shall have the meanings specified next to each:

The Authority: The Saudi Water Authority.

The Minister: The Minister of Environment, Water, and Agriculture.

The Organizational Arrangements: The organizational arrangements of the Authority.

The Council: The Board of Directors of the Authority.

The President: The President of the Council.

The CEO: The CEO of the Authority.

The Person: A natural or legal person.

Service Provision Activities: Activities carried out by individuals or intended to be carried out, including: desalination, purification, treatment of water, activities of the main water buyer, and production of water for urban, industrial, or agricultural use, through the direct pumping of water from wells or dams or its purification, transporting this water and desalinated water to distribution points, distributing it, strategically storing it, trading it, selling it at retail, collecting, transporting, treating wastewater, and reusing it for urban, industrial, or agricultural purposes. This does not include the activities of individuals who package water in containers.

The License: A document issued by the Authority to a person to carry out any activity of the service provision activities based on the relevant regulatory provisions.

The Licensee: Any person holding a license or exemption.

The Permit: A document issued by the Authority concerning preparatory works - including planning and conducting studies - before commencing any service provision activities.

And the following words and phrases: (exemption, consumer, water tariff) shall have the meanings specified in Article (1) of the Water Law, issued by Royal Decree No. (M/159) dated 11/11/1441 AH.

The authority enjoys public legal personality, financial and administrative independence, and is organizationally linked to the Minister. Its main headquarters is located in Riyadh, and it has the right to establish branches or offices within the Kingdom.

The authority aims to regulate the activities and services related to water and oversee them, as well as to develop its methods; contributing to enhancing financial sustainability and achieving the goals of the Kingdom's Vision.

The Authority shall have a Board of Directors chaired by the Minister, and membership shall include:

• 1- A representative from the Ministry of Environment, Water, and Agriculture.

• 2- A representative from the Ministry of Finance.

• 3- A representative from the Ministry of Municipal and Rural Affairs and Housing.

• 4- A representative from the Ministry of Energy.

• 5- A representative from the Ministry of Economy and Planning.

• 6- The Chief Executive Officer.

• 7- Two experts specialized in the work of the Authority, appointed by an order of the President of the Council of Ministers upon the proposal of the President for a term of three (3) years, renewable once.

• The rank of the representatives of the government entities shall not be less than the fifteenth rank or its equivalent.

The Council is responsible for overseeing the management of the Authority's affairs and conducting its matters, and it makes all necessary decisions to achieve its objectives within the limits of what is included in the organizational arrangements and relevant laws. In particular, it has the following:

• A- Approving policies, plans, programs, and initiatives related to the areas of the Authority's jurisdiction, and raising matters that require completing procedures regarding them.

• B- Approving the controls and requirements necessary for the licenses issued by the Authority related to activities associated with its areas of jurisdiction, in accordance with the relevant legal provisions, and monitoring their implementation.

• C- Proposing draft laws related to the areas of the Authority's jurisdiction, proposing amendments to those in effect, and submitting them to complete the legal procedures.

• D- Approving the structure and organizational guide of the Authority, in accordance with the applicable legal procedures.

• E- Approving the financial and administrative regulations that the Authority operates under, as well as other internal and technical regulations necessary for its operations, provided that the approval of financial regulations and provisions with financial implications in other regulations is in agreement with the Ministry of Finance, and the approval of administrative regulations is in agreement with the Ministry of Human Resources and Social Development.

• F- Approving the financial fees that the Authority charges for licenses and permits and for the services and works it provides in accordance with the relevant legal provisions.

• G- Approving the controls specific to managing service provision activities in necessary cases, in accordance with the relevant legal provisions and based on the rules, procedures, and controls established by the Authority regarding any person who violates the relevant legal provisions.

• H- Adopting definitions of service provision activities and modifying them with all their components and for all consumer categories to reflect the actual cost price, in accordance with the support established by law.

• I- Approving the cost of service provision activities without intermediary assistance between what is produced or provided as services.

• J- Approving the draft budget of the Authority and its final account, and the annual report on its activities; in preparation for completing the legal procedures regarding it.

• K- Approving the establishment of branches or offices for the Authority.

• L- Appointing an external auditor (or more) and an internal financial controller.

• M- Approving the auditor's report.

• N- Reviewing the periodic reports submitted to it regarding the progress of work in the Authority and making the necessary decisions regarding them.

• O- Approving the Authority's conclusion of agreements, memoranda of understanding, and contracts, according to the applicable legal procedures; in accordance with the relevant legal provisions.

• P- Approving the holding of conferences, seminars, scientific forums, and events related to the Authority's activities, in accordance with the relevant legal provisions.

• Q- Approving the establishment, purchase, sale, and leasing of real estate for the benefit of the Authority in a manner that achieves its purposes, after agreement with the State Properties General Authority; in accordance with the relevant legal provisions.

• R- Accepting gifts, donations, grants, bequests, and endowments, in accordance with the relevant legal provisions.

• S- Calculating the amount of the deficit resulting from the difference between the income necessary for the services estimated by the Authority based on commercial principles and the actual income achieved from the approved tariff, in preparation for completing what is necessary according to the approved procedures.

Furthermore, the Council - in order to achieve its competencies and without prejudice to the duties assigned to it - may form permanent or temporary committees from its members or others, assigning them tasks it deems appropriate, specifying in the decision to form each committee its chairperson, members, competencies, and rules of operation, and it may seek assistance from whomever it deems necessary to perform the tasks assigned to it. It may also delegate some of its competencies to the president, the CEO, or any of its members or employees of the Authority.

1- The Council meetings are held at the headquarters of the Authority, chaired by the President or a member appointed by him from the representatives of government entities. They may also be held at another location within the Kingdom.

2- The Council holds its meetings periodically, at least (three) times a year, and whenever necessary as determined by the President, or if requested by at least (one-third) of the members.

3- The President shall send a written invitation to the meeting in advance, and the invitation must be accompanied by the agenda of the meeting.

4- The Council meeting is valid if attended by the majority of the members - at least - including the President or a member appointed by him from the representatives of government entities. Decisions are made by a majority of the votes of those present at a minimum. In the event of a tie, the side that the President of the meeting voted for prevails.

5- The deliberations and decisions of the Council are recorded in minutes signed by the President of the meeting and the attending members.

6- If necessary, in urgent cases, and as determined by the President, meetings may be held and votes on decisions may be taken remotely, and decisions may be made by circulation among the Council members, and signed to indicate that all members have been informed of them. Decisions made in this manner are not considered valid unless they are circulated to all members, voted on, and receive at least a majority of their votes.

7- A member of the Council may not abstain from voting, nor delegate another member to vote on their behalf in their absence. An objecting member has the right to record their objection and the reasons for it in the minutes of the Council meeting.

8- The Council shall have a Secretary from the Authority's staff, appointed by the Council - based on the nomination of the Chief Executive Officer - who is responsible for preparing for the Council meetings, notifying its members of the dates, and preparing the minutes and decisions of the Council, as well as any tasks assigned to him by the Council or the President.

9- A member of the Council may not disclose any information they have learned about the Authority's secrets even after their membership in the Council has ended.

10- The Council may invite specialists and consultants it deems necessary to attend its meetings, without them having the right to vote.

The Authority shall have a Chief Executive Officer, appointed by a Decision from the Council, which specifies his salary and other financial and functional benefits, and he is responsible for managing the Authority and conducting its affairs. His responsibilities and powers are concentrated within the limits set by the organizational arrangements and regulations issued accordingly, and what is approved by the Council. In order to achieve this, he has the authority to exercise the necessary powers and competencies, including:

• A- Supervising the preparation of policies, plans, programs, and initiatives related to the areas of the Authority's jurisdiction, and submitting them to the Council.

• B- Supervising the preparation of the controls and conditions necessary for the licenses issued by the Authority related to activities within its areas of jurisdiction, and submitting them to the Council.

• C- Supervising the preparation of draft laws related to the areas of the Authority's jurisdiction, proposing amendments to the existing ones, and submitting them to the Council.

• D- Supervising the workflow in the Authority according to its regulations, approved plans, and programs, and following up on the implementation of the decisions issued by the Council.

• E- Supervising the preparation of the organizational structure and organizational guide for the Authority, administrative and financial regulations, and other necessary regulations to manage the Authority's affairs, proposing amendments to the existing ones, and submitting them to the Council; and implementing them after approval.

• F- Supervising the preparation of the Authority's budget project, final account, and annual report; and submitting them to the Council.

• G- Proposing the financial fees that the Authority charges for licenses, permits, and the services it provides, and submitting it to the Council.

• H- Proposing the establishment of branches or offices for the Authority, and submitting it to the Council.

• I- Proposing the organization of conferences, seminars, scientific forums, and events related to the Authority's activities, and submitting it to the Council.

• J- Issuing the necessary decisions to implement the provisions contained in the organizational arrangements and regulations issued accordingly, according to the powers granted to him.

• K- Spending from the Authority's budget and taking all financial procedures, in accordance with the relevant legal provisions.

• L- Concluding agreements, memoranda of understanding, protocols, and contracts after the Council's approval, or according to the powers granted to him by the Council; in accordance with the relevant legal provisions.

• M- Representing the Authority before judicial, administrative, and other entities inside and outside the Kingdom, and he may delegate others to do so.

• N- Appointing the Authority's staff and supervising them; in accordance with the relevant legal provisions.

• O- Approving plans and programs related to training the Authority's staff and sending them for all areas of the Authority's work, in accordance with the relevant legal provisions.

• P- Contracting with experts, consultants, and consulting firms from inside or outside the Kingdom to serve the Authority's objectives and competencies, in accordance with the relevant legal provisions.

• Q- Preparing for Council meetings.

• R- Preparing periodic reports on the Authority's work, achievements, and activities, and submitting them to the Council.

• S- Any other competencies assigned to him by the Council.

The Chief Executive Officer may delegate some of his competencies or powers to whomever he sees fit among the Authority's staff.

A- The authority shall have an independent annual budget, which shall be prepared and issued in accordance with the arrangements for issuing the state’s general budget.

B- The financial year of the authority is the same as the financial year of the state.