APICORP invests US$40 million towards first ISTP in Saudi Arabia sponsored by private sector
- June 22, 2020
- Category: Corporate, Engineering, Investment and Finance, Water Treatment, Middle East
Multilateral development financial institution Arab Petroleum Investments Corporation (APICORP) declared that it has provided US$40 million in financing to the Kingdom of Saudi Arabia’s first Independent Sewage Treatment Plant (ISTP)located in Dammam, sponsored by the private sector.
The US$160 million financing facility, which has a tenor of 27 years, will be used for the overall development, engineering, construction, operation and maintenance of the ISTP.
The ISTP will boast world-class and energy efficient facilities including inlet works, an inlet balancing tank, a treatment plant, pumping facilities, final effluent discharge and ISTP outfall pumping station, an electrical sub-station and connections as well as sludge treatment beneficial use facilities.
The Dammam ISTP, was awarded to a consortium which comprises Metito, Mowah Company CJSC, and Orascom Construction – who each own 40%, 40% and 20% respectively – by the Saudi Ministry of Environment, Water and Agriculture (MEWA) acting through the Saudi Water Partnership Company (SWPC)
Metito Managing Director Rami Ghandour, said:
“While the world is navigating unprecedented and testing times due to the evolving COVID-19 pandemic, we are delighted to achieve a strategic milestone for the water and wastewater industry in the region with the successful financial closing of the Dammam ISTP. The financial structure for this pioneering project and the backup received from reputable local and international banks and financial institutions is a clear testament to its importance, impact and to the confidence of all stakeholders in its sustainable success.”
The entire worth of the ISTP project is approximately US$245 million and has been financed in collaboration with the National Commercial Bank (NCB) and Sumitomo Mitsui Banking Corporation Europe Limited (SMBC).
Financing underscores APICORP’s commitment towards supporting Saudi Arabia’s Vision 2030 reform plan goal for the optimal use of water resources and its sanitization infrastructure.
The Vision also aims to encourage private sector participation in economic development initiatives.
Chief Executive Officer of APICORP Dr. Ahmed Ali Attiga, said:
“As a trusted financial partner to the region’s energy sector, we are pleased to play our part in supporting the first independent sewage treatment plant in Saudi Arabia. By utilizing world-class facilities and technologies, the project will upgrade the existing infrastructure and enable it to effectively recycle waste water. “Partnerships between the private and public sectors in financing sustainable energy projects are key and remain a strategic focus for APICORP now more than ever.”
The construction of the ISTP has already begun, with commercial operations scheduled to begin in July 2022. The project has a design capacity of up to 350,000 cubic meters per day and an average daily flow treatment capacity of 200,000 cubic meters per day.