Saudi Arabia’s Power and Water Utility Company for Jubail and Yanbu (Marafiq) has signed a SR1.56bn ($416m) loan with Saudi Industrial Development Fund (SIDF).

The finance will help Marafiq implement its projects, including an industrial water scheme at the facilities of Sadara Company in Jubail and the expansion of Marafiq Power Plant in Yanbu Industrial City (Yanbu 2), the firm stated.

Both the Jubail and Yanbu industrial cities are expanding, pushing demand growth.

Yanbu 2 has a capacity of 690MW of power and 60,000 cubic metres a day (cm/d) of water. South Korea’s Hanwha and Doosan won the contracts to build Yanbu 2 in 2011.

Jubail industrial wastewater treatment plant (IWTP) has a total capacity of 115,000 cm/d. The local Sete Energy was awarded the deal to expand the facility by 55,000 cm/d in 2009.

In 2014, Marafiq signed a SR2.5bn long-term murabaha (similar to a rent-to-own arrangement) facility transaction with five Saudi banks to finance schemes in Jubail and Yanbu.

The banks were Samba Financial Group, Sabb, Riyad Bank, Al-Rajhi Bank and National Commercial Bank. UK-based HSBC’s Saudi Arabia subsidiary was the adviser.

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