Saudi Arabia prequalifies firms for Medina PPP sewage project

Saudi Arabia prequalifies firms for Medina PPP sewage project

13 May 2020


The Saudi Water Partnership Company (SWPC) has prequalified six groups to participate in the tender for the planned Medina 3 independent sewage treatment project (ISTP).

Energy & Utilities reported in February that SWPC had received 62 expressions of interest (EOI) for the planned 375,000 cubic metres a day (cm/d) Medina 3 project, and the client has prequalified six groups to participate in the tender.

The six prequalified groups are:

  • Acciona Agua (Spain)/ International Water Distribution Company (Tawzea)
  • FCC Aqualia (Spain)/ Alkhorayef Water & Power Technologies (local)/ Alfanar Company (local)
  • GS Inima Environment (South Korea)/ Al-Jomaih Energy & Water Company (local)
  • Marubeni Corporation (Japan)
  • Metito
  • Veolia (France)

The winning developer will sign a 25-year sewage treatment agreement (STA) with SWPC. The sewage capacity will be supplied by SWPC. The STA will be supported by a credit support agreement from the Saudi government.

SWPC has appointed Japan’s Sumitomo Mitsui Banking Corporation as lead and financial adviser, UK-based Atkins as technical adviser and UK legal firm DLA Piper as legal consultant.

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.

In December, 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.

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.

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.

The February 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.

Like the latest project, all three of the awarded ISTP projects will be developed under a 25-year sewage treatment agreement (STA) with sewage capacity provided by the National Water Company.

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