Consortium reaches financial close for Saudi Arabia PPP sewage project

Consortium reaches financial close for Saudi Arabia PPP sewage project

8 Nov 2020

A consortium containing the local International Water Distribution Company (Tawzea) and Spain’s Cobra Instalaciones y Servicios has reached financial close for the Taif independent sewage treatment plant (ISTP).

A consortium containing the local International Water Distribution Company (Tawzea) and Spain’s Cobra Instalaciones y Servicios has reached financial close for the planned Taif independent sewage treatment plant (ISTP).

 

The financial closure was announced by the joint owners of Tawzea, Saudi Industrial Services Company (Sisco) and Saudi Arabian Amiantit Company, in separate statements to the Saudi stock exchange (Tadawul).

 

Energy & Utilities reported in December 2019 that the Saudi Water Partnership Company (SWPC) had awarded a contract to the consortium to develop the Taif ISTP.


The client announced that the consortium was the preferred bidder in October 2019. The winning team had submitted the lowest tariff of SRhalala 107.9 ($cents2.87) a cubic metre during a competitive bidding process in August.

The Taif ISTP will have a treatment capacity of 100,000 cubic metres a day (cm/d), and will be developed operated under a 25-year sewage treatment agreement.

SWPC appointed Japan’s Mizuho Bank as lead and financial adviser and UK-based Atkins, now part of SNC’s Lavalin, as technical adviser for the Taif scheme.

The project was the third ISTP contract that SWPC, formerly called Water & Electricity Company (WEC), has awarded under its programme to develop the first public-private partnership (PPP) sewage treatment plants in the kingdom.

 

Energy & Utilities recently reported that a consortium led by the local Marafiq and France’s Veolia has achieved financial close for the $280m Jeddah Airport 2 ISTP.

 

The developer consortium, which also contains the local Amal AlKhaleejiah, was awarded a contract to develop the Jeddah Airport 2 ISTP under a build, own, operate and transfer (BOOT) concession agreement. The Saudi Water Partnership Company (SWPC) signed contracts with the developer consortium in February 2019.

 

The consortium has formed a special purpose vehicle (SPV), Jeddah Althaniya Water Company, to develop and operate the plant for a period of 25 years under the public-private partnership (PPP) scheme.

The plant will be developed with the capacity to treat up to 300,000 cm/d of sewage a day (cm/d), which will be able to be expanded by a further 250,000 cm/d at a later date if required.

India’s VA Tech Wabag was awarded a subcontract worth $48m for works on the Jeddah Airport 2 independent sewage treatment plant (ISTP) in Saudi Arabia.

The Indian firm received the order from the Saudi Services for Electro Mechanical Works (SSEM), the engineering, procurement and construction (EPC) contractor for the consortium developing the 500,000 cubic metres a day (cm/d) ISTP.

India/US-based Synergy was the financial adviser to the winning consortium.

The first ever ISTP contract in the kingdom was awarded in January 2019 when SWPC signed agreements with a consortium of Metito Group, Orascom Construction and the local Mowah to develop the plant.

Energy & Utilities recently reported that the Dammam West ISTP had reached financial close. The ISTP will have an initial capacity of 200,000 cm/d with a design that will allow expansion up to 350,000 cm/d in the future.



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