Saudi Arabia’s ACWA Power, announced in a statement the the successful signing of senior financing agreements, financial closure of Jubail 3A IWP (Independent Water Producer) project.
Jubail-3A IWP will utilize reverse osmosis (RO) technology to yield a capacity of 600,000 cubic meters a day. The project location is in Jubail, eastern region of Saudi Arabia.
The value of the project is US$650 million.
As per the statement, the transaction is financed through limited recourse ring-fenced project financing with Al Rajhi Bank, Abu Dhabi Islamic Bank (ADIB), Riyad Bank and Mizuho Bank being the initial mandated lead arrangers.
In addition, Riyad Bank and Bank AlJazira have already provided equity bridge loans for the transaction.
Earlier, during April 2020, the consortium led by ACWA Power, in association with Gulf Investment Company (GIC) and Al Bawani Water and Power Company (AWP) secured the project at a world-record tariff of $0.41 per Cu.m for desalinated potable water.(read more)
Once the project commissioned, it will serve Riyadh, Qassim and Eastern Provinces with potable water.
The Project will include storage tanks of one day production as well as in-house solar power to reduce the power consumption from the network.
Under a concession of 25 years, the project company, Jazlah Water Desalination Company to develop the Project will sell the entire capacity and output to Saudi Water Partnership Company (SWPC) under a Water Purchase Agreement (WPA).
The commercial operation date of the plant is scheduled in the end of 2022.
The engineering, procurement and construction (EPC) contract for the project was awarded to a consortium of SEPCOIII, Power China and Abengoa.(read more)
First National Operations & Maintenance Co. Ltd. (NOMAC) was awarded the operations and maintenance works of the project.
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