ACWA Power, a Saudi Arabian developer, investor and operator of power generation and desalinated water plants, has announced the successful signing of senior financing agreements for the US$650 million Jubail-3A IWP.
The project is the fourth seawater reverse osmosis (SWRO) desalination project to be awarded in the Kingdom of Saudi Arabia over the last three years, as part of the largest public-private partnership (PPP) desalinated water procurement program in the world.
The utility-scale project had been awarded to the consortium led by ACWA Power, in association with Gulf Investment Corporation (GIC) and Al Bawani Water and Power Company (AWP), earlier this year at a world-record tariff of c.41 US Cents per m3 for desalinated potable water. The water purchase agreement was signed on the 21st of May 2020 by Saudi Water Partnership Company (SWPC) in its capacity as the off taker of the project.
The transaction is financed through limited recourse ring-fenced project financing with Al Rajhi Bank, Abu Dhabi Islamic Bank (ADIB), Riyad Bank and Mizuho Bank being the initial mandated lead arrangers. In addition, Riyad Bank and Bank AlJazira have already provided equity bridge loans for the transaction earlier this month.