Saudi Arabia invites interest in Riyadh East and Khamis Mushait sewage treatment plants

8 Nov 2021
Saudi Arabia invites interest in Riyadh East and Khamis Mushait sewage treatment plants

The Saudi Water Partnership Company (SWPC) has invited developers to submit expressions of interest (EOI) in the planned Riyadh East and Khamis Mushait Independent Sewage Treatment Plants (ISTPs)

 

The Saudi Water Partnership Company (SWPC) has invited developers to submit expressions of interest (EOI) in the planned Riyadh East and Khamis Mushait Independent Sewage Treatment Plants (ISTPs).

SWPC has invited firms to submit EOI by 5 December for the ISTP projects.

The Riyadh East ISTP will have a sewage treatment capacity of 100,000 cubic metres a day (cm/d).

The Khamis Mushait ISTP will have a treatment capacity of 50,000 cm/d and will be located in Khamis Mushait, Asir Province, southwestern Saudi Arabia.

In the EOI document, SWPC notes that it is considering bundling the East Riyadh ISTP and Khamis Mushait ISTP projects together under one tender. If SWPC decides to bundle the projects, one request for proposal (RFP) will be issued and one successful bidder will be awarded both projects. However, SWPC stipulates that the successful bidder would be required to establish two project companies – one for each plant.

The successful developer/developers will be appointed to develop, finance, engineer, procure, construct, commission, own, operate and maintain the ISTPs before transferring the asset to SWPC following the end of a 25-year sewage treatment agreement (STA).

SWPC’s obligations under the STA will be supported by the Saudi government.

SWPC has appointed KPMG as lead and financial adviser for the project, with White & Case and Future Water and Power Consulting appointed as legal and technical advisers respectively.

SWPC has also launched a separate EOI for the planned Al-Haer ISTP, which will have a larger sewage treatment capacity of 200,000 cm/d.

SWPC has also set developers a 5 December deadline to submit interest in the Al-Haer ISTP project.

SWPC awarded contracts for Saud Arabia’s first three ISTP projects in 2019, with sewage treatment plants before this date having all been delivered under standard engineering, procurement and construction (EPC) contracts.

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 cm/d, and will be developed operated under a 25-year sewage treatment agreement.

Energy & Utilities reported in November 2020 that the Cobra Instalaciones y Servicios/ Tawzea consortium had reached financial close for the planned Taif ISTP.

In February 2019, 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 cm/d.

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

In September 2020, the Marafiq/ Veolia consortium achieved financial close for the $280m Jeddah Airport 2 ISTP.

In January 2019, 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.

The $245m Dammam West ISTP project reached financial close in June 2020.

In August 2021, Energy & Utilities reported that SWPC had selected the preferred bidders for the Buraydah 2 and Tabuk 2 ISTPs.

A consortium of Spain’s Acciona and the local Tawzea and Tamasuk was selected as the preferred bidder with a combined levelised cost for both projects of SR1.435/cubic metre cm.

The Buraydah 2 ISTP will have a capacity of 150,000 cm/d and the Tabuk 2 ISTP scheme will have a capacity of 90,000 cm/d.

The same consortium was also appointed as preferred bidder for the 300,000 cm/d Medina 3 ISTP.

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