Acwa signs water purchase deal for $676m Saudi desal plant
RIYADH, April 14, 2023
Acwa Power, a leading regional developer of power and desalination projects, has announced the signing of a water purchase agreement with Saudi Water Partnership Company (SWPC) for a 600,000-cu-m capacity plant being developed on the Red Sea coast.
The 25-year agreement was signed through Rawabi Water Desalination Company, the project company partly owned by Acwa Power.
The project scope includes development, construction, operation and ownership of a water desalination plant using reverse osmosis technology at a total investment of SR2.54 billion ($676.3 million), said Acwa Power in its filing to the Saudi bourse Tadawul.
It will also see the building of associated infrastructure and facilities, including potable water tanks with a 1.2 million cu m capacity.
These facilities, which will be located in the Western Province of the kingdom, 180 km north of Jeddah, and south of Rabigh city, are strategic to the kingdom as they will deliver and manage potable water services for the Western Province, it stated.
The financial impact of the contracted revenues is expected to materialise when the facilities become commercially available in 2026, it added.-TradeArabia News Service
