ACWA Power to Develop $677 Mln Desalination Project in Saudi Arabia

Business

April 13th, 9:48am

Riyadh - Asharq Al-Awsat

Al-Fadley and Abunayyan during the signing. (Asharq Al-Awsat)

ACWA Power has signed water purchase agreements for the 600,000 cubic meter per day Rabigh 4 Independent Water Plant (IWP) in Saudi Arabia. Valued at around SAR 2.54 billion ($677 million), the reverse osmosis plant will serve Makkah and Madinah regions, which typically see a spike in demand during Ramadan and the annual Hajj season. The Saudi Water Partnership Company (SWPC) will be the sole buyer of services for the project, which is located on the Red Sea coast in Saudi Arabia. The agreements were signed by Saudi Minister of Environment, Water and Agriculture Abdulrahman al-Fadley, and Chairman of ACWA Power Mohammad Abunayyan, in the presence of Marco Arcelli, Chief Executive Officer of ACWA Power, and Raad Al-Saady, Managing Director and Vice Chairman of ACWA Power. In this regard, Al-Fadley said:“These agreements will achieve the goals for water production projects in partnership with the private sector that supplies industries, communities, and people across the Kingdom of Saudi Arabia.” “We expect that Rabigh 4 will directly serve pilgrims from around the world in the holy cities of Makkah and Madinah and serve households in the wider region. We hope that this project serves as a testament to this vital sector and shows how the private sector can improve the quality of services, realize investment efficiencies, and foster innovation—all of which are objectives of Vision 2030,” added the minister. Eng. Khalid bin Zuwaid Al-Quraishi, Chief Executive Officer, SWPC, said: “Rabigh 4 has been designed to use less electricity, lower operating costs, and support local content across both supply chain and employment.” This plant will be operational in 2026, he noted. ACWA Power currently operates Rabigh 3 IWP in the area with the same capacity as Rabigh 4. “We are honored to partner with the SWPC and leverage our expertise as a market leader in water desalination," said Mohammad Abunayyan, Chairman of ACWA Power. "Our commitment to developing efficient and reliable projects that meet the practical water needs of the community has played a significant role in our contribution towards Saudi Arabia's clean water strategy, including supplying nearly a third of the nation's water needs.” With Rabigh 4 IWP, ACWA Power will double its desalination capacity in Rabigh Area. Financial close for the project is expected during the third quarter of 2023.

from Asharq AL-awsat https://english.aawsat.com/home/article/4270806/acwa-power-develop-677-mln-desalination-project-saudi-arabia