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Saudi Arabia’s first water reservoir project to be developed by the private sector is expected to reach financial close in a few months, sources close to the project tell MEED.

A consortium comprising the local Vision International Investment Company, Kuwait’s Gulf Investment Corporation and the UAE’s Abu Dhabi National Energy Company (Taqa) is developing the Juranah independent strategic water reservoir (ISWR) project in Mecca.

MEED understands the state water offtaker Saudi Water Partnership Company (SWPC) and the developer team signed a water storage agreement for the project on 31 December.

The team offered to develop the project for SRhals18.11 ($cents4.83) a cubic metre. 

The Juranah ISWR scheme has a design capacity of 2.5 million cubic metres. The reservoir project is expected to start commercial operations in 2027.

ISWR pipeline

Previously referred to as Mecca 1, the Juranah ISWR project will be implemented using a build-own-operate-transfer model. The scheme includes a water reservoir and associated infrastructure and facilities.

Juranah supports Saudi Arabia’s goal of increasing municipal water storage capacity to an average of seven days by 2030.

The government aims to increase water storage capacity to an equivalent of 20 days of Hajj demand in Mecca and 40 days of Hajj demand in Medina.

SWPC is planning two other ISWR projects in Mecca under its 2022 seven-year planning statement.

The Mecca 2 ISWR will have a storage capacity of 6 million cubic metres, while the Mecca 3 ISWR will have a capacity of 8 million cubic metres. 

A team of US/India-based Synergy Consulting, Canada’s WSP and the local Amer Al Amr is providing SWPC with financial, technical and legal consultancy services for the Mecca ISWR projects.

SWPC plans to develop 11 other ISWR schemes in total. They are located in the Eastern Province, Medina, Qassim, Tabuk, Riyadh and Jizan, as well as in Al Baha, Najran and Aseer.