Saudi Water Partnership Company and consortium reach financial close for US$254m Independent Sewage Treatment Plant
- June 2, 2020
- Posted by: Lyn Wilson
- Category: Corporate, Investment and Finance, Water Issues, Middle East
Saudi Water Partnership Company (SWPC) and the consortium consisting of Metito, Mowah and Orascom Construction Group, led by the Metito Group, has verified that financial closure of the KSA’s first Independent Sewage Treatment plant (ISTP) in Dammam West had been successful despite the Covid-19 pandemic, which has frozen many large-scale projects globally.
The Dammam ISTP has a designed capacity of 350,000 cubic meters per day and an initial capacity of 200,000 cubic meters per day.
The US$ 254 million ISTP project is to be awarded in the private sector under the Build Own Operate Transfer (BOOT) concession model with a tenure of 25 years. The investment is comprised of a combination of equity and debt.
Non-recourse project financing is provided by a group of local and international banks, including The National Commercial Bank (NCB), Sumitomo Mitsui Banking Corporation Europe Limited (SMBC), and Arab Petroleum Investment Corporation (APICORP), worth a total of US$160 million.
The consortium scope of work covers the total investment and includes the EPC and O&M which will be executed by a wholly owned Saudi-based company formed by the consortium to serve the project – the Dammam West Company for Water.
Khaled Al Qureshi, CEO of Saudi Water Partnership Company, said:
“Despite global volatility and liquidity issues, and ever-changing market conditions, SWPC and the Consortium were able to successfully reach financial closing, in close cooperation with the lenders group.”
Al Qureshi added:
“This is a testament of SWPC’s commitment to support and encourage private sector participation in sustainable development by providing lucrative opportunities for local and foreign investors to participate in the implementation of lifeline water projects. This will achieve sustainable development, provide job opportunities for young people, and support local output and balanced development, in line with the strategic goals of the Kingdom’s “Vision 2030” and the initiatives approved by the Saudi Council of Ministers to encourage private sector participation in economic development.”
Rami Ghandour, Metito Managing Director, said:
“While the world is navigating unprecedented and testing times due to the fast evolving COVID-19 pandemic, we are delighted to share a strategic milestone for the water and wastewater industry in MENASA region. Today marks the successful financial close of the Dammam ISTP, a pioneering project in the Kingdom and the region. The financial structure for this project is a testament to its importance, scale and impact, and the confidence of all stakeholders in its sustainable success.”
The successful financial closure of this ’first of its kind’ project indicates a major achievement for the KSA and the wider region demonstrating a constant commitment to development in the water and wastewater sector.