ACWA Power Consortium Signs Investment Deal Worth $650

The Saudi minister of environment, water and agriculture and two officials from ACWA Power during the signing on Friday. Asharq Al-Awsat Arabic
The Saudi minister of environment, water and agriculture and two officials from ACWA Power during the signing on Friday. Asharq Al-Awsat Arabic

ACWA Power-led consortium including; Gulf Investment Corporation (GIC) and Al Bawani Water & Power Company (Albawani) announced Friday the signing of a water purchase agreement worth $650mn.

The deal is with the Saudi Water Partnership Company (SWPC); for a greenfield seawater reverse osmosis desalination project in Jubail, KSA. The Jubail 3A Independent Water Plant (IWP) will have a capacity of 600,000 m3 of potable water/day. This greatly contributes to Saudi efforts to ensure water security.

Abdulrahman al-Fadhli, minister of environment, water and agriculture and chairman of the board directors of SWPC, signed the agreement.

The consortium led by ACWA Power will design, construct, commission, operate and maintain the desalination plant as well as associated potable water storage and electrical special facilities.

Khaled al-Qureshi, CEO, Saudi Water Partnership Company, stated: "In alignment with our mission to ensure adequate water production capacity for the Kingdom of Saudi Arabia, we are keen to work closely with ACWA Power, a Saudi company with international expertise, as our trusted partner."

"The Jubail 3A is a highly significant project for the KSA water sector, featuring storage facilities as well as in-house solar power to reduce any burden on the energy grid. It will also be crucial in meeting growing water demand, supplying Riyadh, Qassim and the Eastern Provinces with much needed potable water," he added.

Sustainable water security

Paddy Padmanathan, president & CEO of ACWA Power, commented: "Building sustainable water security is a key priority for the Kingdom. ACWA Power is also well positioned to ensure long term availability and supply of reliable, low-cost water resources needed to advance socio-economic progress.

We continue to contribute strongly to the Kingdom's National Water Strategy 2030 and Vision 2030 by utilizing our considerable global expertise to provide solutions that best support national interests."

Rajit Nanda, chief investment officer of ACWA Power, also shared his comments on the occasion, saying; "We are extremely proud to have been selected by SWPC to deliver Jubail 3A IWP. We bring recognized sector expertise and a well demonstrated track record. This is in successfully operating key projects under the KSA public-private partnership framework.

Jubail 3A IWP is an important addition to our rapidly expanding portfolio of projects. It is also an endorsement of our capacity and capability to deliver sustainable results, benefitting the communities we serve."

Meshary al-Judaimi, group head-principal investments at GIC stated; "Saudi Arabia has successfully attracted local, regional and international private sector investment into the country's water and power sector. This project will also continue to increase the efficiency of the sector with private developers. This is using up to date technology and good utility practice at a very economical price."

Judaimi further added; "Winning Jubail 3A project reinforces GIC role in supporting private sector participation in the development of the GCC economies."

ACWA Power, Gulf Investment Corporation and Al Bawani Water and Power Company will deliver the project. The Engineering Procurement Construction contract has been also awarded to a consortium consisting of Power China, SEPCO-III and Abengoa.

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