Japan will provide Saudi Arabia with advanced water-supply technology and sewerage systems. The agreement was signed in Riyadh recently between Senior Vice-Minister Tadahiro Matsushita of Japan's Economy, Trade and Industry, and Mohammed Al-Saud, in-charge of water affairs and electricity in the Kingdom. The cooperation between Japan and Saudi Arabia on water-related projects involves the "desalination of seawater, disposal of sludge, prevention of water leakage and customer services" and the conduct of regular consultations on water policy of Saudi Arabia. The memorandum paves the way for Japanese companies and public organizations in related sectors to participate in Saudi Arabian projects. Both governments have agreed to allow Japanese firms and municipal governments to join the project in two cities in Saudi Arabia. The city government of Yokohama and a group of Japanese companies led by JGC Corp., a leading production equipment maker, will discuss details of their operations in Saudi Arabia next year. With the Kingdom's improving economy, it is accordingly preparing to respond to the anticipated increase in demand for water by installing overseas water-supply systems. The water projects in the Kingdom are opportunities for Japan to expand export of infrastructure. Japan also seeks to boost bilateral ties with the Kingdom as it hopes to secure stable supply of oil amid power shortages in the wake of the nuclear disaster. The Council on Competitiveness-Nippon (COCN) released a report in 2008 on a project to promote water treatment technologies and effective use of water resources. The report also noted that full-scale support from the national government and relevant authorities is necessary for developing water businesses into competitive exports by utilizing highly advanced (water treatment) technologies, which has led to the establishment of the Global Water Recycle System Association.