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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

 

 For further information

 C/ María de Molina, 39 – 6th Floor

28006 – Madrid, Spain

T: +34 917 026 712

E: manuel.garcia@almarwater.com

 

 

Almar Water Solutions signed a contract to develop the Shuqaiq 3 desalination plant in Saudi Arabia

– Consortium to invest over US$ 600m in large-scale desalination plant in Shuqaiq, creating 700 jobs to supply water for over 1.8 million people and industry.

– Plant will be one of the largest desalination plants based on reverse osmosis technology globally, with capacity of 450,000 cubic meters per day.

Almar Water Solutions, through Abdul Latif Jameel, has been awarded a contract to develop a desalination plant in the city of Shuqaiq, on the Red Sea coast of Saudi Arabia. Over $600m will be invested in the project, creating 700 jobs, in line with Saudi Arabia’s 2030 Vision and its objectives to increase investment and employment opportunities.

The large-scale plant will have a capacity of 450,000 cubic meters per day, guaranteeing reliable drinking water for over 1.8 million citizens. Scheduled for completion in Q4 2021, the project will be developed under a 25-year build-own-operate (BOO) scheme contract.

A consortium comprising Marubeni Corporation, Abdul Latif Jameel Commercial Development Company, Acciona Agua and Rawafid Alhadarah Holding Co. signed the Water Purchase Agreement during the ceremony took place on Riyadh last 29th January 2019.

Eng. Abdulrahman Al Fadley, HE Minister of Environment, Water and Agriculture, Chairman of the Water and Electricity Company, Chairman of the Supervisory Committee for Privatization in the Environment, Water and Agriculture Sectors added: “Water desalination is an important area of focus for Saudi Arabia, with water security one of the most pressing and challenging development issues globally, but particularly in the Middle East. This project will mark a major milestone in the continued improvement of Saudi Arabia’s water infrastructure.”

Carlos Cosín, CEO of Almar Water Solutions added: “Innovative energy-intensive water schemes are essential to meeting the rising demand of our region and the world’s growing population for water. With decades of proven international expertise in this field, we are committed to providing the people of Saudi Arabia with sustainable and effective water solutions. We look forward to the completion of the project, which will guarantee safe and reliable drinking water supply for over one million people.”

According to the World Bank, the Middle East and North Africa is home to 6% of the world’s population and less than 2% of the world’s renewable water supply and includes twelve of the world’s most water scarce countries. Almar Water Solutions is committed to becoming a global leader in the water solutions sector, addressing the water security needs of the region and the world’s growing population through a sustainable program of desalination, water and waste water treatment and recycling and reuse initiatives. 

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.

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.

Almar Water Solutions awarded a contract to develop Kenya’s first large-scale desalination plant

Almar Water Solutions has been awarded a contract to develop Kenya’s first large-scale desalination plant. The project will be located in the North Mainland zone in the county of Mombasa and will have a capacity of 100,000 cubic meters per day, supplying drinking water to over a million people. The plant will be managed and operated for 25 years until it is handed over.

The development of this desalination project will alleviate the water crisis that Mombasa County is currently experiencing, which for several years has caused interruptions in the drinking water supply. News of this milestone achieved by the County Government of Mombasa has been officially released today at a press conference in the presence of the Mombasa Governor Honorable Ali Hassan Joho, Carlos Cosín, CEO of Almar Water Solutions, and Fady M. Jameel, Deputy President & Vice Chairman of Abdul Latif Jameel. As stated by the Honorable Ali Hassan Joho: “Almar Water Solutions will put up the desalination plant in North mainland zone. It will be able to pump more than 100,000 cubic meters of water per day, giving quality water supply to over a million people in the county. The increasing population has led to increase in demand while the supply form neighbouring counties keep fluctuating. Currently the demand stands at 200,000 cubic meters against a supply of 42,000 cubic meters”. In turn, Carlos Cosín expressed his thanks to the Mombasa government for placing its trust in Almar Water Solutions, who will work to successfully develop this pioneering project in the country, supervising the entire process from the beginning stages until the project is transferred to the county.

Almar Water Solutions has been present in the region for some time and is particularly interested in developing innovative technological projects to supply both the municipal and industrial sectors.

Sub-Saharan Africa is a region that poses significant challenges in the water industry due to its population growth, advances in economic development and the severe effects of climate change. Desalination is an unconventional source of water that will help to alleviate water stress in the region and will contribute to the progress of its community.

The contract awarded for the first desalination plant in Kenya is a major milestone for both the country and Almar Water Solutions, as it is an unprecedented project that will lead the way towards the development and improvement of the African continent’s infrastructure network.

Firma Proyecto Mombassa Firma Proyecto Mombassa Firma Proyecto Mombassa 

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

C/ María de Molina, nº 40

Planta 5ª 28006 – Madrid, Spain

T: +34 917 026 712

E: manuel.garcia@almarwater.com

 

 

Almar Water Solutions pre-qualified for the Rabigh desalination project in Saudi Arabia

Almar Water Solutions, through its parent company Abdul Latif Jameel, has been pre-qualified for one of the world’s largest desalination project. The Saudi company Water and Electricity Co. (WEC) has notified that the Company has been pre-qualified for a new reverse osmosis desalination project in the Rabigh zone, to the north of Jeddah. The plant, which will be developed under a DBO model (design, build, and operate and maintain), will supply 600,000 m3/day of drinking water with the possibility of expanding in the future to 1.2 million m3/day, making it one of the largest reverse osmosis membrane developments in the world.

Almar Water Solutions has been pre-qualified for the Rabigh 3 desalination project along with the international companies Marubeni, Acciona Agua and Rawafid Holding. The winning Consortium of the 25-year contract will sell drinking water to WEC under a water purchase agreement, which will be backed by the government of the Kingdom of Saudi Arabia.

With one of the world’s most rapidly growing populations, the water sector in Saudi Arabia is under pressure to increase the drinking water capacity to respond to the demand. This new project guarantees a secure source of drinking water for both citizens and for other urban uses, helping to alleviate the serious shortages suffered in the area.

In addition to this new project, Almar Water Solutions is currently pre-qualified for two other desalination projects in other countries. The first, in Mombasa, Kenya, with a total capacity of 100,000 m3/day for the West Mainland zone, another with a capacity of 100,000 m3/day for the North Mainland zone. The second project is located in the United Arab Emirates, with a capacity of 205,000 m3/day, through the Federal Electricity and Water Authority (FEWA).

This new achievement represents a very important challenge for Almar Water Solutions, which in its first year has already been pre-qualified for the development of several water infrastructures projects in the Middle East and Africa.