Financial close for US$700 million desalination PPP in Saudi Arabia
ACWA Power has announced the successful signing of senior financing and hedging agreements for the SAR2.625 billion (US$700 million) Rabigh-3 Independent Water Project (IWP).
The project involves the development, financing, procurement, implementation, operation and maintenance of a desalination plant with capacity to treat 600,000 m³/day. Located in Rabigh, on the central-west coast of Saudi Arabia, the plant will utilise reverse osmosis (RO) technology.
ACWA Power will deliver the project in a 70:30 joint venture with Saudi Brothers Commercial Company (SBCC) through the newly-formed Rabigh Three Company (RTC).
The consortium won the tender for the project in November 2018 with a then world record bid to sell the water produced by the plant at US$0.53/m3. The Water and Electricity Company of Saudi Arabia (WEC) will act as the offtaker of the project, having signed a 25-year water purchase agreement with ACWA Power and SBCC in December 2018.
Limited recourse ring-fenced project financing has been arranged by Natixis, MUFG, SAMBA and Riyad Bank as initial mandated lead arrangers. In addition, Riyad Bank provided an equity bridge loan earlier this month.
The plant is expected to commence commercial operations towards the end of 2021.
Its output will cater to the water demand of Makkah al-Mukarramah and Jeddah areas. This will ensure consistent, reliable and steady water supply to the citizens of the two cities and surrounding villages, especially during peak demand periods such as the Holy Month of Ramadan and Hajj seasons.
An engineering, procurement and construction (EPC) contract for the project has been awarded to a consortium of SEPCOIII (Power China), Abengoa and SIDEM (Veolia). The operations and maintenance agreement was signed with Rabigh Water Production Services Company, an affiliate of First National Operations & Maintenance Co. Ltd. (NOMAC).
Country news
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January 04, 2019
ACWA Power signs contract to build and operate world's largest desalination plant
The Water and Electricity Company of Saudi Arabia has announced that it has signed the agreement for Rabigh 3 Independent Water Project with the winning consortium of ACWA Power International and Saudi Brothers' Commercial Company.
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September 20, 2018
Bahrain and Saudi Arabia to tender US$3.5 billion causeway PPP next year
Saudi Arabia’s ambassador to Bahrain has stated publicly that the tender for the King Hamad Causeway, a 25km road and rail bridge that will cross the Gulf of Bahrain, will be launched in six months. The estimated construction cost is between US$3 and 4 billion.
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July 12, 2018
Saudi Arabia publishes draft law on private sector participation ahead of PPP programme launch
Following a resolution by the Council of Ministers, Saudi Arabia’s National Centre for Privatisation and Public-Private Partnerships (NCP) has published a draft law to govern private sector participation in government-sponsored programs and projects.
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July 11, 2018
Five teams bid to develop largest desalination plant in Saudi Arabia
Water & Electricity Company (WEC) of Saudi Arabia has announced that five teams have submitted proposals for the Rabigh 3 Independent Water Project. The project involves the construction of a desalination plant designed using Reverse Osmosis technology to produce the potable water from the Red Sea.
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May 15, 2018
Advisors announced for Saudi Arabia's first land transport PPP
Metro Jeddah Company has awarded a consortium led by Synergy Consulting a contract to manage the procurement process for the Obhur Creek Bridge PPP project, which involves the construction of a 360m-long bridge which will carry eight lanes of traffic, a metro line and a pedestrian walkway, linking North Obhur to Jeddah city centre.
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