Home Water ACWA Power announces $650million financial close for Jubail 3A IWP

ACWA Power announces $650million financial close for Jubail 3A IWP

Saudi Arabia’s ACWA Power, investor and operator of power generation and desalinated water plants, announced in a statement the successful signing of senior financing agreements. the value of the Jubail 3A Independent Water Producer (IWP) project $650 million.

The project location is in Jubail, the eastern region of Saudi Arabia.

Jubail-3A IWP will utilize reverse osmosis (RO) technology to produce a capacity of 600,000 cubic meters per day.

The project is the fourth seawater reverse osmosis (SWRO) desalination project to be awarded in the Kingdom of Saudi Arabia over the last 3 years, as part of the largest public-private partnership (PPP) desalinated water procurement program in the world.

The water purchase agreement was signed on the 21st of May 2020 by The Saudi Water Partnership Company (SWPC) in its capacity as the off-taker of the project.

The transaction is financed through limited recourse ring-fenced project financing with Al Rajhi Bank, Abu Dhabi Islamic Bank (ADIB), Riyad Bank, and Mizuho Bank being the initially mandated lead arrangers.

In addition, Riyad Bank and Bank AlJazira have already provided equity bridge loans for the transaction earlier this month.

The commercial operation date of the plant is scheduled towards the end of the calendar year 2022.

Jubail-3A IWP The engineering, procurement, and construction (EPC) contract for the project was awarded to a consortium of SEPCOIII, Power China, and Abengoa. The operations and maintenance agreement was signed with an affiliate of First National Operations & Maintenance Co. Ltd. (NOMAC).

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