ACWA Power, a developer, owner and operator of power generation and water desalination plants, leading a consortium with Saudi Brothers Commercial Company (SBCC), has announced the signing of senior financing and hedging agreements for the $700 million Rabigh-3 IWP which will generate 600,000 m³/day — making it one of the largest SWRO desalination projects in the world to be built in the Kingdom of Saudi Arabia.
The water purchase agreement was signed by HE Eng.
A new company, Rabigh Three Company (RTC), has been formed with ACWA Power holding 70 percent and SBCC 30 percent to own the Rabigh 3 IWP Plant.
The transaction is financed through limited recourse ring fenced project financing with Natixis, MUFG, SAMBA and Riyad Bank being the initial mandated lead arrangers. In addition, Riyad Bank has already provided an equity bridge loan for the transaction earlier this month.
The commercial operation date of the plant is scheduled to be toward the end of calendar year 2021.
Rabigh 3 IWP will utilize reverse osmosis (RO) technology to yield a capacity of 600,000 cubic meters per day. The water output will cater to the water demand of Makkah al-Mukarramah and Jeddah areas. This will ensure consistent, reliable and steady water supply to the citizens of the two cities and village, especially during demand peak periods such as the Holy Month of Ramadan and Hajj seasons. The project will also create new employment opportunities in fields including construction, operations and maintenance as well as enhancing the local capabilities in terms of local content.
The engineering, procurement and construction (EPC) contract for the project was awarded to a consortium of SEPCOIII (Power China), Abengoa and SIDEM (Veolia). The operations and maintenance agreement was signed with Rabigh Water Production Services Company, an affiliate of First National Operations & Maintenance Co. Ltd. (NOMAC).
