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25-year water purchase agreement signed with offtaker SWPC ACWA Power announced on Wednesday that its consortium has inked an agreement with state-owned Saudi Water Partnership Company (SWPC) to build and operate the Ras Mohaisen Independent Water Plant (IWP) project in the Western Province of the Kingdom. Ras Mohaisen First Water Desalination, the projects special purpose vehicle (SPV) owned 45 percent by ACWA Power, has signed a 25-year water purchase agreement (WPA) with SWPC, the company said in a statement to the Saudi stock exchange. Other members of the consortium are Haji Abdullah Alireza & Partners Company, with a 35 percent stake in the SPV and AlKifah Holding with 20 percent. The 300,000 cubic metres per day (m3/day) capacity desalination plant, located 300 kilometres south of Makkah in Al-Qunfudhah governorate, will use reverse osmosis technology, and includes potable water tanks with a capacity of 600,000 m3, the statement said. It said the financial impact of the contracted revenues is expected to materialise when the facilities become commercially available, which is expected in the first quarter of 2030. The project will be developed in two phases: Phase 1 will have a capacity of 100,000 m3/day while Phase 2 will have a capacity of 200,000 m3/day. SWPC said in a statement that the initial operational phase of the project will begin in the first quarter of 2028. It said the project scope also includes construction of substations, an overhead transmission line and a 30 megawatt (MW) renewable energy power plant. The ACWA statement pegged the project cost at 2.5 billion Saudi riyals ($666.54 million) while SWPC put it at SAR 2.6 billion ($693 million). The project was offered to investors under the Build-Own-Operate (BOO) model and attracted the interest of 44 companies, including 21 Saudi companies out of which 13 applicants were qualified, the SWPC statement noted. |
