ACWA wins largest water desalination plant

The water purchase agreement was signed by Abdulrahman bin Abdulmohsen Al-Fadley, minister of environment, water and agriculture and chairman of Water and Electricity Company (WEC).
Updated 31 December 2018

ACWA wins largest water desalination plant

ACWA Power, a developer, owner and operator of power generation and water desalination plants, has won the largest independent water desalination plant, Rabigh 3 IWP — further expanding its desalination capacity in Saudi Arabia. The water purchase agreement was signed by Abdulrahman bin Abdulmohsen Al-Fadley, minister of environment, water and agriculture and chairman of Water and Electricity Company (WEC), as WEC will act as the off-taker of the project.

Amongst 55 expressions of interest and five bidders, ACWA Power submitted the lowest tariff at $0.53/m3 and was selected to develop the desalination plant alongside the Saudi Brothers Commercial Company (SBCC) in Rabigh.

Rabigh 3 IWP will utilize reverse osmosis (RO) technology to yield a capacity of 600,000 cubic meters a day. The innovative design of this plant ensures the highest efficiency, reliability and availability for any comparable plant in the world. The water output will cater to the water demand of Makkah and Jeddah. This will ensure consistent and reliable water supply to the citizens of the two cities, especially during peak periods of demand such as Ramadan and Hajj.

Chairman of ACWA Power Mohammed Abunayyan said: “We take extreme pride in securing another milestone in the Kingdom that contributes to the welfare of Saudi Arabia’s economy and its citizens. As a private company, we work continuously to guarantee the right investment is being injected in the Kingdom through private-public partnerships to achieve the ambitious goals of the Saudi Vision 2030. 

“Rabigh 3 IWP will deliver potable water at the lowest cost achieved to date for RO while consuming the least amount of power for each cubic meter of water produced and is consequently another important step in elevating living standards in the Kingdom. Rabigh 3 IWP will contribute to economic progress and increased employment opportunities, helping the Kingdom reach the highest levels of prosperity.”                                                                                                                          

Managing Director of ACWA Power Thamer Al-Sharhan said: “We are delighted to add another flagship project to our Kingdom’s portfolio, proving our consistent support to the Saudi economy and its people. The world’s largest reverse osmosis desalination plant validates the thesis that a local developer places the interests of the home country as its utmost priority, offering the lowest tariffs without compromising on reliability of water supply, all the while ensuring affordable clean water access to the citizens of Makkah Al-Mukarramah and Jeddah. We take pride in setting the direction and being a strong driver of the progressive vision of the Kingdom of Saudi Arabia.” 

The Rabigh 3 IWP is being procured under a 25-year build-own-operate (BOO) contract and will commence commercial operation on Dec. 31, 2021.


UAQ, Alinma close real estate fund at $4.5bn

Updated 07 December 2019

UAQ, Alinma close real estate fund at $4.5bn

Umm Alqura Company for Development and Construction (UAQ) and Alinma Investment Company announced the successful completion of the launch of the Makkah Real Estate Development Funds, with an investment value exceeding SR17 billion ($4.5 billion). 

The funds are invested in seven hotel towers and two commercial complexes that will be developed within the King Abdul Aziz Road (KAAR) project in Makkah. It is one of the most significant developmental and urban development projects in the Makkah region. The project includes multiple options including housing and shopping, and provides easy mobility and means of transportation between the project facilities and the central area of the Holy Mosque.    

Yasser Abuateek, CEO of UAQ, said: “This strategic agreement is the first of several diverse investment activities designed to attract leading investment institutions. It confirms the appeal of investing in KAAR, an attractive destination for long-term investments, as well as the trust of the investment and financing community.

“This partnership also sheds light on the strength of Alinma Investment and its success in managing real estate funds, which makes it the ideal partner for implementing the project’s development and urban plan. The project aspires to become one of the modern landmarks in Makkah.”

Abuateek added: “By successfully attracting investments valued at SR17 billion, we will make progress in line with the execution plan for several diverse projects, especially since we have already reached several major milestones, including completion of the pouring and construction of all the concrete blocks for the Makkah Metro tunnels, while in addition we have completed nearly 50 percent of the bridges. Currently, we are working on completing all the unprecedented infrastructure projects that followed the demolition phase, which represent a transformation in the investment, development and preparation of the project’s lands, making it more attractive for development and creating new choices that help upgrade the quality of life for Makkah visitors and residents.”

Acting CEO of Alinma Investment Mazin bin Fawaz Baghdadi said: “We are very happy with the success of the Alinma Real Estate Development Funds together with our partner UAQ. This investment, with the large sum of capital, will play a major role in fulfilling the objectives of the finance sector, while our partnership will contribute to increasing the capacity to accommodate pilgrims and visitors through implementing urban developmental projects in the Makkah region.”

“The funds’ investment objective is to achieve long-term capital growth through the development of the superstructure in various parts of the King Abdul Aziz Road project in Makkah, which are: Five-star international hotels (Taj Hotel and Kempinski Hotel), four-star hotels (Hilton Embassy), three-star hotels (Hilton Garden Inn), apartments (Kempinski Residence), and two malls,” added Baghdadi.