Saudi Arabia-based developer and operator of power generation and water desalination projects ACWA Power, in a consortium comprising Gulf Investment Corporation (GIC) and Al Bawani Water & Power Company (Albawani) has signed a 25-year water purchase agreement with the Saudi Water Partnership Company (SWPC) for the Jubail 3A Independent Water Plant (IWP).
A greenfield seawater reverse osmosis desalination project, Jubail 3A IWP is being developed with an investment of $650m (SAR2.4bn). The project will have a capacity of 600,000m3 of potable water/day.
The 25-year agreement was signed with Minister of Environment, Water and Agriculture and chairman of the board directors of SWPC, HE Abdulrahman Abdulmohsen A. AlFadley.
As part of the partnership, the consortium led by ACWA Power will design, construct, commission as well as operate and maintain (O&M) the desalination plant and associated potable water storage plus electrical special facilities.
Speaking about the agreement, CEO of SPWC, Khaled Al Qureshi, said: “The Jubail 3A is a highly significant project for the KSA water sector, featuring storage facilities as well as in-house solar power to reduce any burden on the energy grid.
Al Qureshi added that the project will also be “crucial in meeting growing water demand, supplying Riyadh, Qassim, and the Eastern Provinces with much needed potable water”.
Meanwhile, president & CEO of ACWA Power, Paddy Padmanathan, said: “ACWA Power is well positioned to ensure long term availability and supply of reliable, low-cost water resources needed to advance socio-economic progress.
With the project, ACWA Power looks to support the Kingdom’s National Water Strategy 2030 and Vision 2030.
Padmanathan added: “We are confident that the Jubail 3A IWP will play a significant role in enhancing critical water infrastructure for the country.”
Additionally, chief investment officer of ACWA Power, Rajit Nanda, said that the company has a “track record” in successfully operating key projects under the KSA public-private partnership framework.
“Jubail 3A IWP is an important addition to our rapidly expanding portfolio of projects,” Nanda added.
According to the group head of principal investments at GIC, Meshary Al-Judaimi, winning the project strengthens GIC’s role in “supporting private sector participation in the development of the GCC economies”.
The project will be delivered by ACWA Power, Gulf Investment Corporation and Al Bawani Water and Power Company, with an EPC contract being awarded to a consortium comprising Power China, SEPCO 3, and Abengoa.
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