Engie, SWPC reach commercial close on Jubail 3B IWP
RIYADH, June 23, 2021
Saudi Water Partnership Company (SWPC) has teamed up with a consortium led by French energy giant Engie for the commercial close of Jubail 3B Independent Water Project. The plant, being set up on a build, own, operate (BOO) model, will begin operations in 2024.
Located 65 km north of Dammam airport in Saudi Arabia, the Jubail 3B IWP plant will produce 570,000 cu m/day of potable water through reverse osmosis technology to supply the cities of Jubail and Dammam.
The plant will include storage facilities for one operational day in addition to in-house renewable energy capacity to reduce grid electricity consumption throughout the desalination process.
The Engie consortium, comprising Saudi-based Nesma Company and Abdulaziz Al Ajlan Sons for Commercial and Real Estate Investment Company each with a 30% stake in the project, was named the preferred bidder by SWPC in April for its SR1.591 halalas per cu m of potable water tariff.
SWPC yesterday (June 22) signed a 25-year Water Purchase Agreement with the consortium in the presence of Engineer Abdulrahman Al Fadli, Chairman of the Board of SWPC and Minister of Environment, Water and Agriculture.
The project is part of the water schemes in Saudi Arabia developed under the public-private-partnership (PPP) structure, said the statement from SWPC.
As per the deal, the consortium will develop and finance the desalination plant, which will be operated and maintained by Engie, it added.
On the successful commercial close, CEO Engineer Khalid Al Quraishi, said: “Despite the fluctuations, liquidity crises and changing global market conditions, the SWPC succeeded in completing the financial closure procedures with the consortium in close cooperation with the group of lenders, which indicates the company’s efforts."
"SWPC will 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," observed Al Quraishi.
It will help in 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,” he added.
Engie in Saudi Arabia CEO Turki Al Shehri said: “The Jubail 3B contract win represents another milestone achievement for us as a long-term positive energy partner to the kingdom. We commend SWPC for continuing to encourage private sector participation to support the development of large-scale infrastructure projects."
"Through our projects, and in close coordination with our partners, Engie remains committed to providing value-added services and knowledge transfer to the local workforce," stated Al Shehri.
A leading low-carbon energy and service solution provider, Engie has been supporting the Gulf countries for more than 30 years in their strong and rapid economic growth through the joint development of independent power and water project, representing today over 30GW of gas-fired power generation capacities and 5.8 million cu m of drinkable desalinated water, he added.-TradeArabia News Service
