Saudi Arabia’s Marafiq and partners secure $280m to build sewage plant in Jeddah

Saudi Water Partnership Company and a consortium including Marafiq, Veolia and Amwal Khaleejiah secured financing worth $280 million (Dh1.03 billion) to build a sewage treatment plant in Jeddah.

The project, Jeddah Airport 2 ISTP, is being developed through a public-private partnership agreement between Saudi Water Partnership and the consortium, which will build, own and operate the facility under a 25-year deal, Marafiq said in a statement on Sunday, before transferring it back to the public sector.

Funding has been structured as non-recourse project finance, sourced from a combination of senior project finance loans by the National Commercial Bank and equity contributions from shareholders, it added.

“The successful financial closing of Jeddah Airport 2 ISTP, shows the robustness and the efficiency of private-public-partnerships and we expect to see more of these type of projects as part of the Vision 2030,” SWPC’s chief ececutive, Khaled Al-Qureshi said.

The consortium has also established an entity called the Jeddah Althaniya Water company, which will be responsible for the plant’s operation. Once the first phase of construction is complete by the end of January 2023, it will treat 300,000 cubic metres of water per day. Stage two might add another 200,000 cubic metres per day, if the plant exceeds specific utilisation rates.

“All the principles of the circular economy will be put in place, allowing the reduction of sludge and enhancing the beneficial reuse of recycled water for irrigation or industrial use,” said Sébastien Chauvin, chief executive of Veolia.

Marafiq, which is also known as Power and Water Utility Company for Jubail and Yanbu, is owned by the the Royal Commission for Jubal and Yanbu, the Public Investment Fund, Saudi Aramco and Sabic.


Saudi Arabia increases supply of water to over 9 million m³ amid coronavirus

  • The company added that all water production stations and water supply systems are ready to implement a plan to manage an increase in demand for water if this is deemed necessary

RIYADH: Saudi Arabia’s National Water Company announced on Saturday that it will increase its supply of water to 9.7 million m³ daily to deal with increased demand as citizens and residents stay at home in the Kingdom to prevent the spread of coronavirus.
The company added that all water production stations and water supply systems across the Kingdom are operating normally and are ready to implement a plan to manage an increase in demand for water if this is deemed necessary.
It also said that although the company’s customer service centers have been closed since March 16, customers could access all services online around the clock at


Saudi Arabia carried out 27 water, sanitation projects in Yemen worth nearly $194m

Saudi Gazette report
RIYADH — Saudi Arabia through the King Salman Humanitarian Aid and Relief Center (KSRelief) has focused on providing the people of Yemeni their essential requirements of life, including water supply and environmental sanitation projects as part of its continued efforts to help its Arab neighbor.
Since its establishment in May 2015, KSrelief has worked and cooperated with international relief institutions and agencies and implemented 27 projects in Yemen and abroad at a cost of nearly $194 million, according to a report carried by Saudi Press Agency.
The projects included the implementation of water supply and environmental sanitation in Yemeni Governorates and digging two water wells for Yemeni refugees in Djibouti, in addition to a project to support water, sterilization and sanitation services to displaced people in Sanaa, Taiz, Aden and Lahij.
KSrelief has also implemented a project to promote and support water supply, sterilization and environmental sanitation in most affected areas in Yemen as well as a dengue fever control project in Yemeni Governorates.
Saudi Arabia continues to support, assist the Yemeni people and implement urgent response plan to combat and eradicate the cholera epidemic in seven Yemeni Governorates. It has also worked on providing drinking and using water in most needy regions according to international standards for humanitarian interventions.


Saudi Arabia launches new phase to build up solar power capacity

Renewable Energy Project Development Office of Saudi Arabia’s Ministry of Energy has issued the request for qualifications for round three of solar plan

The Renewable Energy Project Development Office of Saudi Arabia’s Ministry of Energy has issued the request for qualifications (RFQ) for round three of its plan to build up solar power capacity in the kingdom.
The third round of the National Renewable Energy Program (NREP) is comprised of four solar PV projects with a combined generation capacity of 1,200MW.
Round three projects will be divided into two categories – Category A which target smaller companies, includes Layla 80MW solar PV and Wadi Al Dawaser 120MW solar PV projects, while Category B includes Saad 300MW solar PV and Ar Rass 700MW solar PV projects.

Faisal Alyemni, head of Renewable Energy Projects Development Office said that projects within round three will carry a minimum requirement of 17 percent local content in a bid to increase the value-added contribution of products and services in the national economy.

Launched in 2017, REPDO tendered the first round of renewable energy projects which included Sakaka 300MW solar PV project, now connected to the national electricity grid, and Dumat Al Jandal 400MW wind project, currently under construction.
In July 2019, REPDO launched round two of the NREP which comprised of six solar PV projects amounting to 1,470MW. The deadline for receiving proposals for round two projects is January 20 and February 3 for categories B and A respectively.
The RFQ window for the round three projects closes on February 6, when deadline for statement of qualifications (SOQ) submissions occurs.


Hyundai Electric Wins Heavy Transformer Deals In Saudi Arabia

The two orders worth $28.6mn are for supplying power transformers and gas insulated switchgears to Saudi Electricity Co

Hyundai Electric and Energy Systems Co. said it has bagged two orders worth $28.6mn to supply power transformers and gas insulated switchgears to Saudi Electricity Co. and Saudi Arabia’s state oil company Saudi Aramco.
Hyundai Electric, a unit of shipbuilding giant Hyundai Heavy Industries Co., said the state-run utility order came to $69mn, while the rest came from Saudi Aramco.
The latest contracts raised Hyundai Electric’s deals in the oil-rich kingdom to more than $180mn in the January-April period, up more than triple from the same period last year.
Hyundai Electric was spun off from Hyundai Heavy Industries Co. in 2017.


Saudi Arabia’s first independent sewage treatment plant reaches financial close

  • The ISTP aims to serve the western districts of Dammam with up to 350,000 cubic meters of water per day

RIYADH: Saudi Arabia’s first independent sewage treatment plant (ISTP) has been awarded to the private sector with a tenure of 25 years following the project’s successful financial close.
Financial closure is when a project’s financial documents have been signed and conditions have been fulfilled.
The ISTP aims to serve the western districts of Dammam with up to 350,000 cubic meters of water per day.
The project agreement was signed between the Saudi Water Partnership Company (SWPC) and a consortium led by Metito Group in January 2019.
The ISTP project is worth $245 million and the investment is made up of a combination of equity and debt, a statement provided to Arab News said.
The successful financial close comes amid the COVID-19 pandemic, which has frozen many large-scale projects around the world.
Khaled Al Qureshi, CEO of the SWPC, said: “Despite global volatility and liquidity issues, and ever-changing market conditions, SWPC and the consortium were able to successfully reach financial closing, in close cooperation with the lenders group.”
He added that the closing deal was testament to the SWPC’s commitment to support and encourage private sector engagement in sustainable development by providing lucrative opportunities for local and foreign investors to participate in the implementation of lifeline water projects, provide job opportunities for young people, and support local output and balanced development.
Non-recourse project financing is being provided by a group of local and international banks, including the National Commercial Bank, Sumitomo Mitsui Banking Corporation Europe Limited, and the Arab Petroleum Investment Corporation, worth a total of $160 million.

“Reaching this stage in the project and resuming construction work under these difficult circumstances indicates confidence in the investment environment in Saudi Arabia and its suitability for the private sector,” Al-Qureshi said.

Rami Ghandour, Metito’s managing director, said on behalf of the consortium: “While the world is navigating unprecedented and testing times due to the fast evolving COVID-19 pandemic, we are delighted to share a strategic milestone for the water and wastewater industry in the Middle East region. The financial structure for this project is a testament to its importance, scale and impact, and the confidence of all stakeholders in its sustainable success.”
We are confident that with the continued support from the SWPC the Dammam ISTP will pave the way for similar developments in the future that can contribute to a more efficient water sector in the Kingdom and beyond.”
The ISTP project is in line with the Saudi Vision 2030 reform plan goal for the optimal use of water resources and to encourage private sector participation in economic development initiatives.


Saudi Arabia moves on wind project

Renewable Energy Project Development Office plans to issue a prequalification request for Yanbu wind project in Saudi Arabia.
Saudi Arabia’s Renewable Energy Project Development Office (Repdo) could issue the request for prequalification (RFQ) for its second planned wind independent power project (IPP) in the second half of the year.
MEED understands Repdo plans to tender the Yanbu wind IPP ahead of several planned wind IPPs in Saudi Arabia.
Sources familiar with the scheme tell MEED Repdo and its consultants are still discussing the final capacity of the Yanbu wind scheme.
The planned Yanbu wind IPP with a capacity of 850MW was initially included in the third round of the National Renewable Energy Programme (NREP).
However, the project was excluded when Repdo issued an RFQ for the third round earlier this year.
Repdo tendered and awarded the first wind project, the 400MW Dumat al-Jandal IPP, under the first round.
Round three
Repdo expects to receive proposals for the category B and category A projects under NREP’s round three on 23 September and 7 October respectively.
The four projects under the third round are:

  • Al-Rass solar PV: 700MW (category B)
  • Saad solar PV: 300MW (category B)
  • Wadi al-Dawasir solar PV: 120MW (category A)
  • Layla solar PV: 80MW  (category A)

In 2019, Riyadh ramped up its clean energy goal to target 27.3GW by 2024 and 58.7GW by 2030, superseding the previous 9.5GW by 2023 target.
Repdo will oversee the development of 30% of this ambitious target through competitive tendering.
The Public Investment Fund (PIF) is expected to appoint developers through direct negotiations for the remaining 70%