Saudi Arabia awards contract for Taif ISTP

1 Dec 2019
Saudi Arabia awards contract for Taif ISTP

Saudi Water Partnership Company (SWPC) has awarded a contract to a consortium of Spain’s Cobra Instalaciones y Servicios and local company Tawzea to develop the Taif independent sewage treatment plant (ISTP)

Saudi Water Partnership Company (SWPC) has awarded a contract to a consortium of Spain’s Cobra Instalaciones y Servicios and local company Tawzea to develop the Taif independent sewage treatment plant (ISTP).

The client announced that the consortium was the preferred bidder in October. 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 marks the third ISTP contract that SWPC, formerly called Water & Electricity Company (WEC), has awarded in 2019.

In February, 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 is planned to have a capacity of 500,000 cubic metres a day (cm/d).

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

The award of the Jeddah airport project followed less than a month after a consortium of UAE’s Metito, the local Mowah and Egypt’s Orascom was appointed to develop the Dammam West, the kingdom’s first ISTP project.

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.

All three ISTP projects will be developed under a 25-year sewage treatment agreement (STA) with sewage capacity provided by the National Water Company. WEC’s obligations under the STA will be guaranteed by a credit support agreement with the Saudi government.

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