Saudi Water Partnership Company has successfully achieved financial close for the Shuaibah-3 IWPP Conversion Project, from Multi-stage Flash “MSF” technology to Reverse Osmosis “RO” technology, which will be built in Shuaibah in Makkah Province with a production capacity of 600,000 m3/day of potable water.
His Excellency the Minister of Environment, Water and Agriculture, and Chairman of the Board of Directors of Saudi Water Partnership Company, Eng. Abdulrahman bin Abdulmohsen AlFadley explained that achieving financial close helps in implementing the decisions of the Council of Ministers and achieving the goals and plans of the Ministry. In addition, achieving financial close further enhances the active participation of the private sector in developing this vital sector, increases its contribution to the Kingdom’s development, and accomplishes the goals of the Kingdom’s 2030 vision. The Privatization Programs under the Environment, Water and Agriculture structure improve the quality of services and the efficiency of capital spending by utilizing the experience of the private sector in construction, O&M, and management as per the Ministry’s privatization strategy.
H.E. Eng. Al-Fadley explained the importance of the project as it serves Makkah province and the Holy Sites, and that the conversion process will contribute to increasing the availability and reliability of water supply in the Region. He also added that this conversion will contribute to saving the fuel consumed in operating the current plant. H.E. also referred to His Highness the Crown Prince’s announcement to achieve net carbon neutrality, thus this project will achieve a reduction in carbon emissions.
The CEO of the Saudi Water Partnership Company, Eng. Khalid Bin Zwaid Al-Qureshi stated that the conversion of the Shuaibah-3 project is a precedent of its kind in converting a project with existing agreements and represents the Kingdom’s policies in attracting investments and building fruitful partnership with the private sector to ensure mutual benefits and establish a Win-Win approach. Eng. Al-Qureshi added that the success of the conversion process has come after the cooperation with the success partners in the Supervisory Committee represented by (the Ministry of Environment, Water and Agriculture, the Ministry of Finance, and the National Center for Privatization) and the developers. He also added that this conversion will contribute to economic, financial, technical, and environmental benefits by saving the fuel consumed to operate the current plant, where more than 22 million barrels of light crude oil will be saved annually, and will also contribute to reducing the percentage of carbon emissions to zero carbon emissions as the new plant will operate with environmentally friendly technology, as well as the project includes solar energy units to reduce the electricity consumption from the grid and contribute to supplying 45% of the electricity needs that enhance the reliability and availability of water supply to the Makkah Al-Mukarramah region and Holy Sites.
Eng. Al-Qureshi said that the Project Commercial Operation Date will be in the second quarter of 2025, and that the Project Agreements term is 25 years, that will contribute to increased local content, high levels of continuous production, and reducing electricity consumption and operating costs.
The CEO of the National Center for Privatization, a member of the Board of Directors of the Saudi Water Partnership Company, Mr. Mohannad Basodan, pointed out that it is a great effort to achieve the financial close of the Shuaibah-3 IWPP Conversion Project, noting that the Center created an investment environment that enables the participation of the local and international investors in the privatization opportunities and partnerships between the public and private sectors. Mr. Basodan concluded that the local content requirements for this project will reach 40% in the construction phase and 50% during the first five years of operation and increase to 70% during the remaining years. This project is considered an extension of the privatization and partnership between the public and private sectors in the environment, water and agriculture sector where several project agreements have been signed for independent water and sewage treatment projects.
