Saudi Arabian energy company ACWA Power has achieved financial close on the $650mn Jubail 3A Independent Water Plant (IWP) project.
Jubail 3A IWP received limited recourse ring-fenced financing from Al Rajhi Bank, Abu Dhabi Islamic Bank (ADIB), Riyad Bank and Mizuho Bank being the initial mandated lead arrangers.
Earlier this month, Riyad Bank and Bank AlJazira offered equity bridge loans for the transaction.
ACWA Power president and CEO Paddy Padmanathan said: “Signing of the financing agreements for the Jubail-3A IWP project in less than four months from the date of signing the water purchase agreement, especially in the midst of a pandemic which is causing global disruption, is testament to the financial community’s confidence in ACWA Power’s proven capabilities in delivering large scale utility plants; and an indication of the unwavering support of our partners, including our lenders, contractors and advisors.”
Located in Jubail, Saudi Arabia, Jubail 3A IWP is said to be part of the largest water project that is being executed through public-private partnerships.
The desalination project will use seawater reverse osmosis (SWRO) technology and is the fourth such project awarded in the Kingdom of Saudi Arabia over the last three years.
The project was awarded to a consortium led by ACWA Power and includes other partners such as Gulf Investment Corporation (GIC) and Al Bawani Water and Power Company (AWP).
On the other hand, the engineering, procurement and construction (EPC) contract was secured by another consortium comprising Power China, SEPCOIII and Abengoa.
The project is expected to come online by the end of 2022.
Once complete, the Jubail 3A Independent Water Plant (IWP) will have a capacity of producing 600,000m3 of potable water per day.
In May this year, a consortium led by ACWA Power announced to build a $650mn water desalination project in Jubail to address water shortage issues in Saudi Arabia.