Saudi Arabia’s Yanbu 4 IWP reaches financial close
The estimated $450m Yanbu 4 independent water project (IWP) in Saudi Arabia has reached financial close
The estimated $450m Yanbu 4 independent water project (IWP) in Saudi Arabia has reached financial close.
Energy & Utilities reported in December 2019 that a consortium led by France’s Engie and local companies Nesma and Mowah had signed the water purchase agreement (WPA) for the Yanbu 4 IWP project, which will have a desalination capacity of 450,000 cubic metres a day (cm/d).
The successful consortium had submitted the lowest levelised tariff of 1.7446SRhala/cubic metre (SRh/cm) during a competitive bidding process.
In addition to the reverse osmosis (RO) desalination plant, the consortium will develop a 600,000 cm/d pumping station and a 39km pipeline as part of the project.
According to a source close to the project, the lending group for the scheme includes MUFG, KXIM, KDB, NCB, Riyadh Bank and Standard Chartered.
SWPC appointed Japan’s Sumitomo Mitsui Banking Corporation as lead and financial adviser for the Yanbu 4 IWP, with the UK’s DLA Piper and Austria’s ILF Consulting Engineers as legal and technical advisers, respectively.
The project is part of Saudi Arabia's programme to procure the majority of future desalination projects as public-private partnership (PPP) projects. The programme is being managed by the Saudi Water Partnership Company (SWPC).
In April 2020, SWPC signed the final contracts and water purchase agreement (WPA) with the appointed consortium for the 600,000 cm/d Jubail 3A IWP.
The WPA was signed with the Acwa Power-led consortium, which also includes Kuwait’s Gulf Investment Corporation and the local Al-Bawani, on 30 April.
The Acwa Power-led consortium had submitted the lowest levelised water tariff of SR1.54861 per cubic metre (SR/cm) during a competitive tendering process.
In November 2020, SWPC received bids from four bidders on 1 November for the planned 570,000 cubic metres a day (cm/d) Jubail 3B IWP project.
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