SWPC Announces Financial Close of Yanbu-4 Independent Water Plant
Saudi Water Partnership Company successfully achieved the Financial Close for Yanbu-4 IWP with the participation of success partners from the relevant authorities such as the Supervisory Committee at the Ministry of Environment, Water and Agriculture, developers and consultants.
Yanbu-4 is an Independent Water Plant with capacity of 450 thousand cubic meters per day along with its Water Special Facilities “WSF” (Yanbu-Rayis water transmission pipeline with length of 39 km and capacity of 600 thousand cubic meters per day). The total cost of Project is around 3.3 billion Saudi Riyals, to be built and operated by the private sector for a period of 25 years from the Commercial Operation Date, while the WSF will be transferred to the Saline Water Conversion Corporation after construction. Noting that the winning consortium of the project consists of International Power S.A. (Engie), Mowah Co. CJSC and Nesma Company Limited.
It is noteworthy that despite the current conditions and obstacles caused by the Corona pandemic (Covid-19), as this pandemic has obstructed most major projects and stopped domestic and international air traffic, the Saudi Water Partnership Company succeeded in closing the project.
The CEO of SWPC, Eng. Khaled AlQureshi, said: “Despite the fluctuations, liquidity crises and changing global market conditions, the Saudi Water Partnership Company and the Consortium succeeded in completing the financial closure procedures in close cooperation with the group of lenders, which indicates the company’s efforts to provide full support for investment projects, and to enhance private sector participation in sustainable development by providing the opportunity for local and foreign investors to participate in the implementation of these projects, thus achieving sustainable development, providing job opportunities for young people, and supporting local product and balanced development, in order to achieve the strategic objectives contained in “Saudi Arabia’s vision 2030” and the initiatives approved by the Saudi Council of Ministers to encourage private sector participation in economic development initiatives”.
AlQureshi added “Reaching this stage in the project and starting construction works under these difficult circumstances is a complete indication of investors’ confidence in the investment environment in the Kingdom of Saudi Arabia and the suitability of the investment environment for the private sector”.
Engie CEO Mr. Turki Alshehri stated: “Achieving the financial close for Yanbu-4 IWP, despite the unique circumstances presented by COVID-19, is a remarkable success for this significant project that will help meet growing water demand in the area and contribute to socio-economic development in KSA. We would like to extend our appreciation to the Saudi Water Partnership Company, the financial community and our partners for their trust and cooperation in enabling the swift competition of this milestone. As always, Engie remains committed to leveraging our global expertise in deploying advanced technologies, backed by robust public-private partnerships to enhance water security for the Kingdom in line with its Vision 2030”.