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Almar Water Solutions breaks ground for the Shuqaiq 3 desalination plant

Almar Water Solutions, a leading company in the development of water infrastructure, (part of Abdul Latif Jameel Energy), and Abdul Latif Jameel Commercial Development Company (CDC) held the ceremony to break ground for the Shuqaiq 3 desalination plant together with their partners Acciona, Marubeni Corporation and Rawafid Alhadarah Holding Co.  The event took place at the site chosen for the construction of the plant, on the shores of the Red Sea, approximately 137 kilometers to north of Jizan, in Saudi Arabia.

The ceremony was attended by Faisal S. El Samannoudi, Vice-Chairman, and Rowaid Al Sawaf, General Manager, of Abdul Latif Jameel CDC, together with Yahia Kafi, Chief Financial Officer, and for Almar Water Solutions, Santiago Martínez, Managing Director.

HE Álvaro Iranzo, Spanish Ambassador to Saudi Arabia, and the Counsellor for Economic and Financial Affairs of the Spanish Embassy in Riyadh José Ramón Ferrandis Muñoz, also attended.

Shuqaiq 3, which reached its’ US$ 600 million investment financial close last May, will be one of the largest reverse osmosis desalination plants in the world, with a production capacity of 450,000 cubic meters per day.  The project will be executed under a 25-year BOO (build, own, operate) contract, and its completion is planned for the fourth quarter of 2021.

The Shuqaiq 3 desalination plant will significantly relieve the water shortage in the area, supplying of drinking water to more than 1.8 million people, in addition to contributing to the country’s economic and industrial development and creating around 700 employment opportunities construction start and final commissioning of the plant

The project is of such importance that last month it received the ‘Utilities Project of the Year’ award at the Middle East Energy Awards 2019 held in Dubai, making it one of the flagship projectshttps://www.alj.com/en/news/shuqaiq-3-desalination-project-receives-the-utilities-project-of-the-year-award/ in the region.

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 7,453m3 per capita per annum, in the Middle East there this drops to only 736m3, 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.

For this reason, the Middle East is one of the areas where Almar Water Solutions is focusing its efforts to develop innovative and sustainable projects, to guarantee sufficient water quality and quantity for its population  and 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, urban agricultural and industrial use.

The Shuqaiq 3 desalination project receives the “Utilities Project of the Year” award

The Shuqaiq 3 desalination project, awarded last January to the consortium made up of Almar Water Solutions, through Abdul Latif Jameel, Marubeni Corporation, ACCIONA and Rawafid Alhadarah Holding Co., yesterday received the “Utilities Project of the Year” recognition at the Middle East Energy Awards 2019 held in Dubai. The awards gala, which brought together companies and professionals from the energy and water industries in the Middle East, for the first time included alternative and renewable energy projects.

Shuqaiq 3, which reached financial close last May, will be one of the largest reverse osmosis desalination plants in the world, with a production capacity of 450,000 cubic meters per day. 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.

Since several countries in the region are aligning with the international protocols regarding climate change and reduction of carbon emissions, guaranteeing a sustainable supply of energy and water is an increasingly important priority in the region. For this reason, the Shuqaiq 3 project represents a safe and effective alternative to guarantee the supply of drinking water to more than 1.8 million citizens, contributing to the economic and industrial development of the country.

Carlos Cosín, CEO of Almar Water Solutions, also noted that “Shuqaiq 3 is an important economic and social milestone that will create 700 jobs, in line with Saudi Arabia’s Visión 2030 and its goals of increasing investment and employment opportunities”.

With 16 categories, in comparison with the 10 in the 2018 awards, the Middle East Energy Awards recognize projects and initiatives of both individuals and companies that make an effort to innovate and change the energy sector in the Middle East. In this regard, the industry has recognized Carlos Cosín as one of the most 50 influential professionals who continue to lead and shape the utilities sector in the GCC region and its surroundings.

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