Financial close for USD879 million desalination Project in Saudi Arabia
Saudi Water Partnership Company successfully achieved the Financial Close for Yanbu-4 IWP Project with the participation of success partners from the relevant authorities such as the Supervisory Committee at the Ministry of Environment, Water and Agriculture, developers and consultants.
Herbert Smith Freehills advised the lenders in relation to the multi-sourced project financing for the reverse osmosis seawater desalination project.
Yanbu-4 is a reverse osmosis Independent Water Plant with capacity of 450,000 cubic meters per day along with its Water Special Facilities “WSF” (Yanbu-Rayis water transmission pipeline with length of 39 km and capacity of 600 thousand cubic meters per day) that will be located at Al-Rayis in Badr Government within Madinah Region. The total cost of the Project is around SAR 3.3 billion (USD879.51 million), and will contribute SAR 1.5 billion (USD399.78 million) to the Kingdom’s gross domestic product.
The Project will be built and operated by the private sector for a period of 25 years from the Commercial Operation Date which is scheduled in Q4 2023, while the WSF will be transferred after construction to the Saline Water Conversion Corporation. Noting that the successful consortium of the project consists of International Power S.A. (Engie), Mowah Co. CJSC and Nesma Company Limited.