Marubeni Corporation is pleased to announce that in April 2019, Shuqaiq Three Company For Water, owned by Marubeni, Acciona Agua S.A., Abdul Latif Jameel Commercial Development Company Ltd., and Rawafid Alhadarah Holding Ltd., signed a limited-recourse financing loan agreement for the Shuqaiq 3 Independent Water Project in the Kingdom of Saudi Arabia. A Notice to Proceed has also been issued.
This loan agreement of approximately 500 million US dollars took the form of co-financing among six commercial banks, MUFG, Crédit Agricole Corporate and Investment Bank, The National Commercial Bank, The Norinchukin Bank, Samba Financial Group and Sumitomo Mitsui Banking Corporation.
The Project includes the construction, operation, and maintenance of the RO based desalination plant which generates 450,000m3 of water per day (supplied to a population of approximately 2 million) and the sale of water produced to Water and Electricity Company (WEC). The water will be sold over the course of a 25-year term.
Just as in other Gulf Cooperation Council countries, the demand for water in Saudi Arabia is increasing rapidly as the economy and population of the country also grow. On the other hand, there is also demand for RO based desalination plants, which are independent and do not require a fire-based power plant for operation, reflecting the global trend towards renewable energy.
Marubeni will leverage its globally-accumulated knowledge and experience to fulfill its social responsibility by providing reliable and safe water services to people living in areas where access to water is scarce.