Engie consortium reaches financial close for Jubail 3B IWP

20 Oct 2021
Engie consortium reaches financial close for Jubail 3B IWP

A consortium of France’s Engie and local firms Nesma and Alajlan has reached financial close for the 570,000 cubic metres a day (cm/d) Jubail 3B independent water producer (IWP) project

 

A consortium of France’s Engie and local firms Nesma and Alajlan has reached financial close for the 570,000 cubic metres a day (cm/d) Jubail 3B independent water producer (IWP) project.

The consortium was selected as preferred bidder by the Saudi Water Partnership Company (SWPC) with a levelised water cost of SR1.59/cubic metre (cm) in April 2021.

The Jubail 3B IWP will require total investment of about SR2.6bn ($690m).

Energy & Utilities reported in November 2020 that SWPC had received bids from four groups for the Jubail 3B IWP project.

The Jubail 3B IWP will serve Riyadh and Qassim with potable water. The scheme will include storage tanks with one day’s production capacity in addition to in-house solar capacity of 60MW to reduce power consumption from the kingdom’s national grid.

In April 2020, SWPC signed the final contracts and  water purchase agreement (WPA) with an Acwa Power-led consortium for the 600,000 cm/d Jubail 3A IWP.

India’s Synergy Consulting was appointed as lead and financial adviser for the Jubail 3 A and B projects. UK-based law firm DLA Piper was appointed as legal adviser and UK-based Atkins as technical adviser for the Jubail desalination projects.

The Jubail 3 scheme had originally been planned as an independent water and power project (IWPP) with a 1.17 million cm/d desalination capacity and a power component of 3,000MW. However, the client decided to drop the power generation component and proceed with the projects as two separate IWP projects.

The Jubail 3B project is the second IWP in Saudi Arabia that Engie has reached financial close for in 2021.

In March 2021, Engie, in consortium with local companies Nesma and Mowah, reached financial close for the $450m Yanbu 4 IWP project.

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