water, laying pipelines, water distribution networks, waste water networks and treatment plants and also developing strategic reservoirs and emergency distribution systems. The ministry said the proposed studies would provide detailed and reliable statistics on the level and leakage and the quantities of water lost from the mains and the level of customer satisfaction with the services provided by the ministry. The second phase of the project will define the priorities of the water and sewage systems and lay down transitional plans for the privatization of the sector. The first contract with the private sector is expected to be awarded by the end of 2005, the ministry said. With limited natural water resources, the Kingdom has resorted to well-water and the sea to meet demands. It now has more desalination plants than any other country; they are built along the Red Sea in the west and Arabian Gulf in the east. Saudi desalinated water accounts for 30 percent of the world's total output.