The Taif independent wastewater treatment plant project in Saudi Arabia achieves financial closure
The Saudi Water Partnerships Company (SWPC) and the Consortium of “Cobra” and “Tawzea” companies announced the achievement of the financial closure of the sewage treatment plant project in Taif.
The consortium of the Spanish company Cobra and the International Water Distribution Company (Tawzea) will develop and finance the wastewater treatment plant and provide engineering, procurement, construction, implementation, ownership, operation and maintenance services, and then transfer the ownership (BOOT) to the Saudi Water Partnerships Company.
In the first phase, the plant will handle 100,000 cubic meters per day, and the construction of the station is scheduled to be completed and start operating in the third quarter of 2022. The second phase will begin when the operational capacity at the plant exceeds the usage rates, as 170,000 cubic meters will be added to its capacity among its expansion plans.
The CEO of SWPC, Eng. Khalid Al-Quraishi, said: “Despite the fluctuations, liquidity crises and changing global market conditions, the Saudi Water Partnerships 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. Saudi Water Partnerships 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.
The financing of this project, with a total cost of about 320 million riyals (USD 85 million), was funded by a local bank, as the consortium succeeded in close cooperation with the Saudi Water Partnerships Company to reach the financial closure stage, and the consortium succeeded in establishing a Saudi company to serve the project. It is the Taif Independent Water Plant Company, which will manage and operate the plant after construction for a period of 25 years within an exemplary framework for a public-private partnership that reflects the Kingdom’s 2030 vision in the context of privatizing infrastructure projects.
Al-Quraishi added: “Reaching this stage in the project and starting construction works under these difficult circumstances is a complete indication of investor confidence in the investment environment in the Kingdom of Saudi Arabia and the suitability of the investment environment for the private sector.”
“We are pleased to announce the successful financial closure of the independent wastewater treatment plant project in Taif, and this project is one of the important projects in the Kingdom, as it is a long-term project that supports the confidence of all investors, project owners and the banking community In its sustainability and long-term success,” said Mohamed Halawani, CEO of Tawzea..
Mohammed Halawani added: “We are confident that with the continuous support of the Saudi Water Partnerships Company for the Taif plant project, there will be other promising future opportunities to partner with the company in similar projects that serve citizens and open the way for job opportunities for youth, develop the Saudi economy and achieve the Kingdom’s 2030 vision.”
The financial closure of the independent water treatment plant project in Taif is an important achievement for the Saudi government and the region, and the best evidence of the continued commitment to developing the vital water sector in the Kingdom.
It is worth noting that this project is the fifth to be closed within 24 months, which is considered a distinguished work, which confirms that the investment environment in this sector is fruitful and excellent, and this is thanks to God and then thanks to the governors of the matter and those responsible for this sector.