ACWA Power consortium, GIC and Al Bawani to enhance water security in Saudi Arabia with Jubail 3A IWP
- May 18, 2020
- Category: Corporate, Middle East, Water Treatment, Engineering, Investment and Finance, Contracts
A consortium led by ACWA Power including Gulf Investment Corporation (GIC) and Al Bawani Water & Power Company (Albawani) has signed a major 25-year water purchase agreement with the Saudi Water Partnership Company (SWPC) for a greenfield sea water reverse osmosis desalination project in Jubail, KSA with an investment value of USD $650 million.
His Excellency Abdulrahman Abdulmohsen A. Al Fadley, Minister of Environment, Water and Agriculture and Chairman of the Board Directors of SWPC also signed the agreement.
CEO of SWPC, Khaled Al Qureshi said:
“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 Independent Water Plant (IWP) will have a capacity of 600,000 m3 of potable water/day, greatly contributing to water security in the Kingdom. In the partnership agreement the consortium will design, construct, commission, operate and maintain the desalination plant as well as associated potable water storage and electrical special facilities.
The Engineering Procurement Construction contract has been awarded to a consortium consisting of Power China, SEPCO-III and Abengoa.
Paddy Padmanathan, CEO of ACWA Power said:
“We are delighted to collaborate with SWPC on this major project and are confident that the Jubail 3A IWP will play a significant role in enhancing critical water infrastructure for the country.”
Mr Padmanathan also said that they would continue to contribute strongly to the Kingdom’s National Water Strategy 2030 and Vision 2030 by applying their considerable global expertise to provide solutions that best support national interests.
Chief Investment Officer of ACWA Power, Rajit Nanda said:
“Desalinated water makes up 63 percent of water consumed in Saudi Arabia. ACWA Power is a leading industry player in the KSA water sector and has been entrusted with several major desalination projects in the country including the Rabigh IWP, Shuqaiq IWPP and the Shuaibah plants.”
Mr Al-Judaimi , Group Head – Principal Investments at GIC commented that the Kingdom of Saudi Arabia has invited positive interest from local, regional and international private sector investment in the nation’s water and power sector .
“This project will continue to increase the efficiency of the sector with private developers using up to date technology and good utility practice at a very economical price,” He further added: “Winning Jubail 3A project reinforces GIC role in supporting private sector participation in the development of the GCC economies.”