Shuqaiq 3 to achieve financial close for a total value of over 600 million dollars
- The agreement was reached just three months after the signing of the water purchase contract.
- The plant will be one of the largest reverse osmosis desalination plants in the world, with a production capacity of 450,000 cubic meters per day.
Riyadh, Saudi Arabia – 17th May 2019
Almar Water Solutions, a leading company in the development of water infrastructure, through Abdul Latif Jameel Commercial Development Company Ltd., together with Marubeni Corporation, Acciona Agua and Rawafid Alhadarah Holding Co., has achieved the financial close for the Shuqaiq 3 desalination plant for a total value of more than 600 million dollars.
The transaction involved both Saudi national banking entities and international organizations. Saudi banking institutions included Samba and NBC, along with the participation of international players MUFG (Agent), Crédit Agricole, Norinchukin and SMBC, with the agreement reached just three months after the water purchase contract was signed.
The Shuqaiq 3 desalination plant, which will be located on the Red Sea coast of Saudi Arabia, will supply drinking water to over 1.8 million people and will create approximately 700 jobs from the start of construction until commissioning of the plant. The project is programmed for completion in the fourth quarter of 2021 and will be developed under a 25-year BOO (build, own, operate) contract scheme.
According to the World Water Development Report 2019, the Middle East is the region of the world with the most severe water scarcity. While the average water availability worldwide is 7,453 m3 per person and year, in the Middle East there is only 736 m3 per person and year, according to the latest available figures from AQUASTAT (n.d.). Water shortage per capita has been increasing and is expected to rise in the future due to population growth and climate change. This trend has also contributed to the over-exploitation of groundwater and the loss of arable land for agriculture.
The Shuqaiq 3 desalination plant will help mitigate the shortage suffered by the inhabitants of the southwestern region of Saudi Arabia, providing a new source of drinking water for both domestic and urban use.
Recently, Almar Water Solutions created a joint venture with Hassan Allam Utilities (HAU), the public service and investment unit of the leading regional construction and engineering group Hassan Allam Holding (HAH). The purpose is to develop water projects in Egypt and thus continue contributing to the increase and upgrade of water infrastructure in the countries of the Middle East.
Just this week, Almar Water Solutions announced the acquisition in Bahrain of the Muharraq STP Company BSC (“MSC”) sewage treatment plant with a capacity of 100,000 cubic meters per day, enhancing its references and collaborating on the improvement of sustainability in the Middle East region.
About Almar Water Solutions
Almar Water Solutions is a company specializing in the development, promotion, financing, design and operation of water infrastructure. Its team of professionals, with over two decades of experience in 25 countries leading major water infrastructure projects, works tirelessly to develop integral solutions that meet growing needs for water in the municipal and industrial sectors. For further information, visit almarwater.com
About Abdul Latif Jameel
Abdul Latif Jameel refers broadly to distinct separate and independent legal entities whose interests encompass automotive distribution, auto parts manufacturing, financial services, renewable energy, environmental services, land and real estate development, logistics, electronics retailing and media services. Abdul Latif Jameel positions itself as a preferred business partner primarily for inward investment into the Middle East, North Africa and Turkey (MENAT) region. For further information, visit alj.com
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