EXCLUSIVE: Saudi Arabia preparing to invite interest in water projects

25 September 2017
Desalination facilities will have a combined capacity of more than 800,000 cubic metres a day

State desalination provider Saline Water Conversion Corporation (SWCC) is preparing to invite developers to express interest in two planned independent water projects (IWPS) with a combined total capacity of more than 800,000 cubic metres a day (cm/d).

According to sources close to the scheme, the desalination company is planning to issue expressions of interest in the “next few weeks,” and is targeting issuing the request for proposals (RFPs) in early 2018.

The utility has appointed Japan’s Sumitomo Mitsui banking Corporation (SMBC) as financial adviser, Austria’s ILF Consulting Engineers as technical adviser and the UK’s DLA Piper as legal adviser for the planned 450,000 cubic metres a day (cm/d) Yanbu IWP and the 380,000 cm/d Shuqaiq IWP.

The projects are two of eight planned IWPs or independent water & power projects (IWPPs) planned to be developed in the kingdom up to 2025.

In late August, Saudi Arabia’s Water & Electricity (WEC) received expressions of interest (EOI) from 55 firms for the Rabigh 3 independent water project (IWP).

The reverse osmosis (RO) desalination plant will have a capacity of up to 600,000 cubic metres a-day, expandable to 1.2 million cubic metres. The project will have a 25-year concession period, with WEC as the offtaker, supported by a payment guarantee from the government.

The lead adviser for the IWP is the local Banque Saudi Fransi. The client has appointed Germany’s Fichtner Engineering and Consulting as the technical adviser, the UK’s DLA Piper as legal adviser and the UK’s Alderbrook as financial adviser.

The Rabigh desalination facility will service the cities of Jeddah, Mecca, Taif and surrounding villages.

SWCC is increasing the role of private investment in the desalination sector as part of the kingdom’s Vision 2030. It is also preparing to privatise existing assets. SWCC forecasts it needs to increase the current desalination capacity of 5.1 million cm/d to 7.3 million cm/d by 2020 to meet growing demand.

 

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