International consortium starts work on Saudi Arabia’s first ISTP

13 Feb 2020
International consortium starts work on Saudi Arabia’s first ISTP

A consortium led by UAE-based Metito, the local Mowah and Egypt’s Orascom has started construction work on Saudi Arabia’s first independent sewage treatment project (ISTP), Dammam West.

The developer consortium was awarded the contract to develop the kingdom’s first ISTP project in January last year. The Dammam West plant, located in the eastern province of Saudi Arabia, 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.

The client, Saudi Water Partnership Company (SWPC) received bids from seven groups in July 2018 for the project. The scheme will be developed under a build-own-operate-transfer (BOOT) model.

The developer has signed a 25-year sewage treatment agreement (STA), under which the sewage capacity will be provided by the National Water Company (NWC). SWPC’s obligations under the STA will be guaranteed by a credit support agreement from the Saudi government.

The Dammam West project is one of three ISTP projects which SWPC awarded contracts for in 2019.

In February last year, the client signed contracts with a consortium comprising local firms Power & Water Utility Company for Jubail, Al-Amwal al-Khaleejiah and France’s Veolia to develop the Jeddah Airport 2 ISTP. The Jeddah Airport 2 plant will have a capacity of 500,000 cubic metres a day (cm/d).

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

In December last year, SWPC awarded a contract to a consortium of Spain’s Cobra Instalaciones y Servicios and local company Tawzea to develop the Taif ISTP.

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.

Energy & Utilities recently reported that SWPC had invited developers to submit EOI for the much larger 375,000 cm/d Medina 3 ISTP.

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